Strikes on gaza and rocket attacks into israel continue. Youre watching worldwide exchange, bringing you Business News from around the globe. All right, were into hump day, the day before thanksgiving, of course, as well. On todays show, well have updates from athens and brussels as the eurozone ministers fail to ruse a deal for greece. Air strikes and rocket fire continue in the gaza strip in tel aviv, as Hillary Clinton urges both sides to diffuse violence. Well have the latest live from zree israeli. Well also take the pulse of the polish country. Analysts from warsaw 40 minutes from now. Well be in providence, rhode island, to preview travel ahead of the thanksgiving holiday with the head of operations at Peter Pan Bus Lines. But first, after nearly 12 hours of talks, eurozone finance ministers have failed in their quest to agree conditions that would have allowed the next chance of bailout cash going to greece. Whats next . Whats gone wrong . Well be joined by jules in athens in a few minutes. But lets start off with silvia in brussels. Theyve said greece has done everything they need to do. Whats the problem now . Yes, that is the big question. They say greece has done everything they need to do. Greece will get the money. Oops, not just yet, because we havent quite worked out the sustainability road, as it were. There was this disagreement last week between la guard of the imf, could they stretch a sustainability report for another two years, the famous 120 of gdp. Could that be the deadline, the stretch. The imf said no. The eurogroup said yes. Now theyre working around ways of getting to the 120 . Maybe without the extra two years or at least with putting Something Else in place. This Something Else could be either one or a combination of what im telling you now. Up to tenyear moratorium on Interest Rates. A lowering of Interest Rates on the existing debt repayments. A Public Sector involvement, ie cuts for the Public Sector, for some of all of their debt. A bond buyback program. This is the combination of things that seems to be lying on the table. And theyre working on various scenarios to which hopefully and eventually all parties can agree. It is not, or so we hear here on the grapevine, it is not only about the difference of opinion between the imf and the eurogroup as the scenarios are being played out. There are also differences of opinion within the eurogroup. Thats why everybody went back home to meet again here on monday to hopefully then conclude the talks. One of the other reasons why they might have broken off and not continued today was because they had to go back to berlin because of the second day of the budget debate going on in berlin and the finance minister cant be missing when the german chancellor is giving her keynote speech. That might have been another spin in the works. Yes. So well do it again next monday. We look forward to that. How are they reacting to it in greece . Reporter well, i think theres a lot of expectation built up about last night. Undoubtedly theres disappointment. First thing this morning, there was a lot of blaming perhaps of the government here. Ive had a couple of people say to me what more does greece need to do . I think theres a level of misunderstanding here about where the conflict actually is, and the Prime Minister issued a statement earlier to the europeans and to the imf saying that they need to fulfill their obligations. Need to talk to the people here and explain that actually perhaps this delay could be a more positive thing if ultimately it means that we solve this situation longer term rather than a shortterm fix. But, you know, the overall message from the press here is sit tight, and we look positively towards monday. Weve actually had the minister for development on Sky Television in the last few moments saying the same thing, that the government was prepared to get a delay overnight and that they do too look forward to monday. The full weight of expectation now on monday. As you can probably imagine, the opposition of making the most of the opportunity, theyve suggested that the government here has done favors and that actually theyve got insult in return. We have to watch the coalition very closely. I go back to where i started. I think the key message now is that the Prime Minister and the government here do have to talk to the people now and explain that this isnt necessarily about greece anymore. Just have to wait and see how it plays out. Thank you, julia. Well come back to you during the program. James, are they arguing about is wrong thing . I mean, whether we push another two years on the maturities or not, theyre still not going to get a sustainable target, are they . What we saw last night is evidence of a very fundamental split between the europeans and the imf. In many ways, its a rather cynical ploy, kicking the can down the road, arguing about how were going to finance greece the next two years and sidestepping the issue of what well do for two years after that. The imf quite rightfully is saying hold on, enough of this cynical buying time. Lets put in place something meaningful, something that puts greece on to a proper footing. There has to be depth. How do you dress it up. Absolutely. Thats been the imfs position. You cannot realistically expect the money to be paid thats been lent to them. So thats not a loan, thats a gift. Which is why arguing over whether you push the maturities back two years is a bit of irrelevant. Theres two things. Theres the financing and giving greece an extra two years to get its finances in order. But that of course costs money. So were arguing about how were going to finance that extra two years. But i mean thats one thing. But then the other option is how do we actually get the level of debt down and whats being suggested here is the most likely option is effectively giving greece another moratorium before it has to start paying back its mortgage. But theyre going to get the money, so are they . Can they give them the money without the eurozone and the imf agreeing . I think it would be very difficult. For the imf to pull out, which is a very severe risk here, because what theyre saying in private, this is not something we can negotiate over. Our memorandum and terms of agreement effectively is we can only lay money if you think were actually going to get it back. I think their hands are tied and thats the point she continues to make to the europeans. If the imf pulled out, it would leave an even bigger financing gap. Theres a slight irony here, the ones that disagree with imfs position most. I think there is an irony in that, this inn the sense that we wanted the imf in. Given a cloak of respectability. The compliance police, the experts in tying people to the fire and making sure they actually do as they promised, and now the europeans have been hoist by that. Where does that leave us . What is your best guess of what happens . Well, you have to say at the end of the day, the amounts of money were arguing about are relatively modest. 15 billion buys you two years. Surely given the contagion, youre not going to bulling it writing that check. So what were really arguing about is just who is going to actually end up footing that bill, cl is a relatively modest bill. The key point is the longer this drags on, the uncertainty continues to hurt the economy and continues to undermine markets. James nixon, thank you. Autonomys ceo says hes shocked by allegations of mismanagement. Theyve been forced to take a nearly 9 billion charge because of what it called serious improprieties. Lynch says the trouble arose after hp took over the company. Weve been talking about a massive elephant in the room that wasnt spotted. The reason it wasnt spotted is very simple, it wasnt there. It was done, in their own words, meticulously and great detail. And then they actually ran the company, including doing all of the books for the last four quarters. Hp shares down 12 yesterday, closing on a tenyear low right now. That is the euros closing price. Still to come later, hes now apologized to the investors for the poor call and says the end for hp is not even sight. Also, japan has posted its worst trade deficit in october for more than three decades. Exports dropped sharply amid territorial tensions between tokyo and beijing. It indicates the worlds third biggest economy is inching closer to recession. This means the country would have seen its fifth technical recession in 15 years. At the same time, japans Opposition Party promised a massive easing blitz meant to pull the economy out of its funk. Thats if the ldp returns to power on december 16th. He promised to compile a large extra budget. Hes also it rated calls to lift calls above the 1 target. Translator we should target inflation of 2 to 3 . I prefer 3 , but i will leave that up to the experts. I have never said the boj should directly buy bonds from the government. They should buy them from the market. His party is also considering the revision of the bank of japan law. Yesterday the bank of japan chief hit back saying it was unrealistic. Just the latest in japan. Lets get the Market Report kicked off by sixuan. Let me start off with japan. The nikkei rallied, shrugging off the trade data. Auto majors such as toyota and nissan gained over 2 . It was a choppy day of trade for china markets. The shanghai composite opened in the green and then dipped to a three and a half year low and rebounding to higher by over a percent. Property stocks, most were up around 2 in late trade. The beaten down liquor producers also recouped some of their losses on bargain hunting. Well get the hsbc flash pmi tomorrow. That will give us more clues about the state of chinas economy. Hong kong shares also ended higher today. The 3. 6 billion ipo of chinas insurer seems to be gaining momentum. Sources say the company have secured, several corner stone investors, including aig. Elsewhere, south korean shares were under pressure on concerns over europe. Steel makers andpbui led the losses. In australia, weakness in resources took the shine out of the asx 200. Steel on the move, now trading higher by about. 7 of a percent. The commodities trader recovered some of yesterdays losses on muddy waters allegations, ending higher by about 5 . More on that coming up in the show. Ross, back to you. Oh, sixuan, thanks for that. Catch you a little bit later. Here we are in europe. Pretty even stevens. Also terms of advances, almost matching each other equally. Slim games yesterday. The ftse up. 2 a percent. You can see the ftse 100 is there we go, absolutely flat. Dax up four points. The ibex is down. It is the trade day before thanksgiving. Volumes will probably drop off as well. Take a look at bond rates. Yields a little bit lower. We keep our eyes on the uk in the next 50 minutes. They didnt extend quantititive easing high on dollar versus the euro yen. Japanese exports down for the fifth month. We have been down to 1. 2748, so weakened by the no agreement on greece, but still above the level which we hit last week, which was the twomonth low. Thats where we stand right now. Still to come on todays program, top shop boss phillip green reported a small drop in the uk, but he seems hes at least one Happy Shopper still ready to splash the cake. This is in the shape of nicole scherzinger. Its like a magical maze of fashion and clothes. It always has the latest trends and fashions. Its quality, and its just super cool and it feels comfy. Frank, instead of scratching your way to retirement, get on etrade. Set up a real plan. Frank oh wow, you didnt win . I wanna show you something. Its my shocked face. [ gasps ] [ male announcer ] get a Retirement Plan that works. At etrade. We have another eu meeting thats fallen for greece, but its growth in trade that the country really needs, not just another handout. Greece, portugal, spain, and italy. Other countries are trying to step up to compete. Jeff is exploring that theme this week and he joins us today from warsaw. Jeffrey . Reporter yeah, ross, its interesting, isnt it . A very simplistic bit of analysis, but as the crisis kicked off in europe, a lot of people were saying hang on, germany is a beneficiary of the single currency. It exports aggressively into the rest of europe. Wouldnt it be good if some of that trade flow turned around and that would support many of the mediterranean economies . The problem is they just dont make necessarily what germans want to buy, which is why in a way weve come to poland to have a look at how poland is evolving and integrating, not only with germany, but the rest of the 27 nations. But to point to my piece today is that actually poland is doing quite well. Polish companies are doing quite well. Starting to sell into germany. And i went to look at one company in particular, solaris, lets take a look. Despite the eurozone crisis, solaris had a record year in 2011, assembling over 1,200 vehicles for the 26 European Countries it exports to. Closer to berlin than warsaw, solaris is germanys biggest foreign bus supplier with 10 market share. So whats the secret to cracking the German Market . Translator there is no secret. Just work, work, work, work. Reporter and of course, a willingness to be flexible and maintain quality. But even solaris expects sales to slow this year and is not idling while key markets contract. Translator we are looking for new possibilities, new products, new markets. The world belongs to the brave. Reporter theyve started selling to russia and theyre looking at markets like india. But theyve not given up on europe, which will remain its key engine for growth. The european story is more nuanced than the eurozone crisis growth headlines would suggest. In fact, solaris has picked up new business in finland and belgium and will do record sales in spain this year. Solaris management considers the company as much european as it is polish and believes the block is strongest staying together. So if the eurozone were a bus, say, none of the passengers should be forced to leave before the ultimate destination is reached. Just setting aside for a moment the issue of trade into germany, the polish economy is clipping along at about 2. 4 this year. Its expected to slow into next year. So what exactly is the Central Bank Going to do to offset some of that weakness in domestic demand. Im very pleased to have with me yang, on the committee, and also an academic economist. Thank you for joining us. The central bank has been criticized by some for not cutting sooner and more aggressively. And the key policy rate still sits at 4. 5 with growth coming down so rapidly, shouldnt the bank be moving more quickly. Well, of course, i can talk about myself and my own views, and i think that we are trying still to continue saying normal Monetary Policy, and when i look around in europe, especially western europe, i dont see many similar cases. That does not necessarily mean that we are wrong. Who are you more critical of, the bank of england with its qe policy, or the ecb, which has been r been resistant on moving more quickly . I would put more criticism on the bank of england or the fed. In any case, i would agree with what a german philosopher once wrote in 2009 that would resolve around policies that it is a kind of a robbery of the future by the present. We are trying to avoid that. To an extent, it is possible for a small open economy. All well and good academically, but what do you tell the unemployed polls who say shouldnt the central bank . According to the eu measures, unemployment here is in excess of 8 . According to domestic measures, its up in low double digits. Shouldnt the polish workers get another chance at a job . This has nothing to do with the chances for a job because first of all, its not a problem of having very strong pent up demand for loans for enterprises. Our enterprises are now in the process of slow downward adjustment, after the period of too much optimism. So no matter how far we would go in cutting down the Interest Rate, the enterprises wouldnt start investing anyway. This is my very strongly held view. Of course, we may have some relief. So they may gain some, which is not very much, as you can understand. And therefore, i think that in our slow way, cutting down Interest Rates by, say, 25 basis points may be this is my view cutting next months. You know, we would achieve to an extent what is possible, desirable and what can help. Maybe afterwards, if things started falling down from heaven, maybe we would consider it. But it does not seem to require such costly and dramatic measures. Thank you very much for giving us your time. One of the hawks from the Monetary Policy committee here in poland. Dont expect rates to come down very quickly any time soon. Seems to be the message. But, of course, he is just one of ten under belker and it does seem as though the rate has turned here in poland. We have the polish finance minister joining us in closing bell, so youll hear more about the state of the economy and what the government is doing before we wrap up our programming from warsaw. And then i and my producer will be climbing into the trusty cnbc satellite truck and making our way on to zagreb in croatia, where not only are we in search of more vowels, we are also hoping to find out just how strong that economy is doing in the face of this european weakness. So ross, back to you. We look forward to that. And i presume youll be driving the bus because i think we saw that in your report earlier. Doing very well with the reg impersonations. Reporter yes, thank you very much. Im starting to become quite attracted to buses and carriages. I think ill start jotting the numbers down in a small notebook. And if theres a man that can do that, its you. Thanks for that. We look forward to your contributions. Safe travels down there. Still to come, were going to be in tel aviv where fighting continues into its eighth days. More to come on worldwide exchange. I wanna go. Where will it send me. 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