31/05/2016 World Business Report

Now for the latest financial news with Ben

Latin America's largest airline, Chile-based LATAM Airlines,

says it will suspend its flights to Venezuela due to

It's after a similar decision by Lufthansa over the weekend.

India looks likely to hold onto its ranking

as the world's fastest growing economy later, but is it delivering

In a minute, we find out if India's economic growth is delivering

Latin America's largest airline, LATAM, which is based in Chile,

says it will suspend its flights to Venezuela.

On Saturday, the German airline Lufthansa also said it was stopping

It says it is owed more than $100 million in ticket revenue.

As the queues for basic monarchs continue in Venezuela, the economic

crisis has forced another company to rethink its involvement in the

nation. Following an announcement by Lufthansa that they would be

suspending flights between Frankfurt and Caracas, now, LATAM is following

suit. It's Sao Paulo to Caracas route will end and others will be

halted by the end of July. -- its. The president points to such steps

as evidence of what he calls an economic war being waged against the

oil rich nation to force him from power. But it comes after both

companies complained for years that currency controls have made it

impossible to repatriated their earnings in hard currency. Instead,

they have dollars tied up in Bolivar.

It is not just airlines, however. Recently, Coca-Cola said it would be

halting production of some of its offerings because of a lack of

sugar. Also, Bridgestone is ending in its 60 year involvement with the

country. -- its. Later today,

India will reveal how rapidly it's The country has become one

of the fastest expanding economies And the International Monetary Fund

estimates growth of 7.5% But despite the strong performance,

job creation is still This has become a common sight

outside most suburban train stations in Mumbai. These men are not

travellers, but out of work construction labourers who have lost

jobs due to a slowdown in the sector. They are here daily in the

hope of getting more jobs and the ability to earn some money. This is

the spot where residents of the area come to get hired. Most of them left

farming and moved to Mumbai to become construction workers. One of

them is this man. He came to the city in 2007. He lost his

construction job two years ago. Since then, he has been struggling

to survive. TRANSLATION: I used to own $200 every month. Now, I barely

get one third of that. In fact, I am planning to move back to my

village. At least then I will be able to earn more as a farmer.

Despite strong economic growth, creating jobs is still a challenge

for India. The construction industry is the second largest industry in

the country, after agriculture. There are concerns that a slowdown

in the culture could push more people into farming. -- sector. This

has been under construction for more than two years. The developer has

been struggling to find buyers. Now, due to a lack of funds, worked at

the site has been stalled. You will find equipment here, but no workers.

It is not just the housing sector that is affecting jobs. Stalled

infrastructure projects are also contributing to the problem.

Businesses blame red tape and slow improvements. Projects are being

delayed a lot. This leads to a loss of confidence from the investors.

India has one of the youngest populations in the world, and it

needs to create 10 million jobs every year for the new people

entering the workforce. Achieving that target will be the key for

Asia's third-largest economy to realise its potential. BBC News,

Mumbai. So, can India's expected growth outweigh the effects of

China's slowdown? Rico Hizon can answer that. That is what the IMF

and many investment banks are saying, India can continue to

outperform China. Look at the consensus on growth numbers. It is

expected to expand by 7.5% from January. That as fast faster than it

used to be. -- faster. You have a steady performance in the services

sector, that is one of the main drivers of this economic push.

Despite the numbers, critics say that the growth is not conclusive

and not felt across all sectors of society is. They see a widening gap

between the rich and the poor. -- society. On the flipside, there are

some key factors that could help growth this year. That includes low

spending in the private sector and a stressed bagging industry. Narendra

Modi, after two years in office, has to convince investors they can push

forward with economic policies like a Goods and Services Tax bill. This

is important to sustain the current growth momentum in the economy. We

will have to wait and see. Ben. We will have to watch that. Thank you

very much, Rico Hizon. Just how far have Volkswagen

been able to recover back after The company has its first-quarter

earnings due later today, and shares in the German car maker are up more

than 50% from lows hit in October following revelations that it had

cheated diesel emissions tests. Our ecomomics correspondent

Andrew Walker reports. Has faults like an driven itself

into financial trouble? -- Volkswagen. Results will give us an

up select update after it admitted cheating in tests. They used to sit

devices in diesel cars in the US that could detect when it was being

tested and reduce emissions. -- defeat. They face a hefty bill and

have to buy some cars back. There have been fines from regulators,

especially in the West. And legal claims from shareholders. They have

set aside $18 billion to cover those costs. Will it be enough? The annual

report acknowledge is there are substantial risks in the legal

cost. In other words, there could be more bad news to come for

shareholders. The decisions made were enough to take the company into

the red last year. The Chief Executive called the affair probably

the greatest challenge in the history of the company. But they

managed to increase sales revenue last year and has repaired some of

the damage done to the sale price. Though it is still 16% worse off

than it was before it broke. Andrew Walker, BBC News.

A collection of Bitcoins worth about ?8 million, which had been

confiscated by police in Australia, will be auctioned off in June.

The 24,518 Bitcoins will be sold mostly in blocks of 2,000, each with

Ernst Young, the firm organising the auction,

said the Bitcoins had been "confiscated as proceeds of crime"

Strong sales of the luxury brand Jaguar Land Rover

India's biggest carmaker saw quarterly profit

The company also benefitted from increased domestic demand

But it announced that it plans to recall 100,000 JLR cars in the US to

fix a fault with the airbags made by Japan's Takata, and has set

Before leaving you, let's take a look at the markets.

Asian shares recovered from a wobbly start on Tuesday, after

Japan reported better-than-expected data for April.

Shares in Japan were also lifted by expectations that a 2017 sales tax

hike will be delayed until 2019, and by a weakening in the Japanese yen.

US markets were closed on Monday, as was the London FTSE because