Morning business round-up: Eurozone 'risks losing 4.5m jobs'


What made the business news in Asia and Europe this morning? Here's our daily business round-up:

The eurozone could lose 4.5 million more jobs in the next four years unless the region shifts away from austerity, the International Labour Organization (ILO) has warned.

That rise would take unemployment in the 17-nation bloc to 22 million.

The ILO said a concerted policy shift away from austerity towards job creation was needed.

"It's not only the eurozone that's in trouble, the entire global economy is at risk of contagion," it said.

The ILO report came as Spanish PM Mariano Rajoy announced a sales tax rise as part of austerity measures aimed at cutting the public budget by 65bn euros (£51bn; $80bn).

VAT will go up almost immediately from 18% to 21% and there will be a 3.5bn euro cut in local authority budgets.

EU officials welcomed the changes, which were made in return for a eurozone bank bailout and an extension to Spain's deficit reduction targets.

China, the world's second biggest consumer of fuel, has cut retail oil prices by about 5% with immediate effect.

This is the third cut in two months, and some analysts say it could be an attempt to increase fuel consumption.

Demand for oil fell for the first time in three years in April.

Media caption,
Biz Heads

Apple has said it will start selling the new iPad in China on 20 July, after it settled a dispute involving rights to the "iPad" name in the country.

Apple agreed to pay $60m earlier this month to Chinese firm Proview, which claimed it had registered the name in 2000.

The dispute led to Apple's tablet computers being taken off the shelves in some parts of China.

High-end UK fashion group Burberry has reported a rise in revenue as sales continue to grow in Asia.

Total revenue for the three months to the end of June was £408m ($634m), 11% higher than a year earlier.

However, the increase was less than in the previous quarter and below market expectations, leading Burberry shares to fall 6% in morning trading in London.

In our latest Business Daily podcast, we ask whether the experience of debt relief in Africa holds lessons for the eurozone.

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