30/11/2011 World Business Report

-- and Aung San Suu Kyi. Time for the financial news.

Europe fails to find one trillion euros needed for its emergency

bail-out fund. And disruption expected today at Heathrow. How

will the airport and airlines react. An Australian inquired if this is

the ban on sales of at Samsung a galaxy it in the country it.

At least one trillion euros when have perhaps been and not to help

you have out of its debt crisis. But finance ministers have admitted

that the bail-out fund would not be able to arrive at that amount of

money. Advance she's met late into the evening and agree that the

bailout fund would ensure investors in European government debt against

losses. The idea was that he would boost confidence in European debt.

First of all, your reaction to the news that there's not going to be

that one trillion euros. Perhaps you were not expecting it anyway?

From the outset it was clear that the one trillion was always a bit

far fetched. The fund was set up with the number of countries

guaranteeing and pledging a lot of money. That was going to be

leveraged up to 100,000 billion euros. Countries like Spain were

guaranteed fund. That would be used to support these countries

themselves. This was always going to be very difficult. In the

meantime my that circumstances have deteriorated. Teams to be dead in

The ministers did call on the IMF to give more help but I suspect the

United States might have something to say about that? Not just the

United States, let's not forget that emerging markets in the past

were like the most recent tide of clients for the IMF. If I can put

it like that. It seems that although the IMF's firepower seems

to be channelled towards Europe. I think the emerging markets like

Brazil or China will asked for a lot more voting power in the IMF in

return. That is what Europe will have to accept, it cannot come up

with solutions itself and the IMF might have to step in. That will

come at the expense of Europe losing power. One area that

ministers did agree on was allowing the funds to lose 20 or 30%, will

the markets will come that news? There was some doubt as to the

credibility, the 20-30%, it will insure the first 20 per-30% loss on

any government bond, should that country default, but the markets

realised if nobody defaults by 20 or 30%, look at Greece, who had 50%.

Markets will quickly see through this. Ultimately Europe's need

something more credible, something first that Germany fully backs.

That has always been the problem in the past. Germany has always said

they are going to come up with anything that will save the euro,

they will do anything, only three weeks later not to come through on

their promises. Whatever Europe comes up with, any kind of solution,

if Germany is not backing it will not be credible to the markets.

Severe disruption is expected at Europe's busiest airport, Heathrow,

today as well as other airports. There will be delays at immigration

due to a one day strike by staff, at the immigration desks, and they

will not be operating. The AEA, which operates Heathrow, have

warned that passengers could face delays of 12 hours. It has asked

airlines to any Harthill airplanes due to arrive today. Cash to only

half fill. British Airways and Virgin Atlantic have encouraged

passengers to fly on another day. For more on the destruction I am

joined by John Strickland, hello. - - destruction. It will not be a

good day for passengers. The Flying Day is in its early stages, the

queues are estimated to be three hours, but that is a nightmare.

Some airlines have managed to persuade people to move to flights

on other days and they estimate perhaps passion that flows are down

25% on what we would expect on a normal day in November. The cost to

the airlines is rising through all of this? It will do because

although there may be space to move people as a midweek day in one of

the lowest travel periods of the year, the fact the airport is fully

constraint means if the back lock develops, depending on the skill

level of the number of staff standing in, then it could be a

situation where people could be delayed. If that does not happen,

planes cannot be cleaned and reloaded. Other airplanes cannot

come in and park then, so you do get a domino effect. Flights could

be severely delayed or cancelled. Presumably these airlines are

having to absorb the cost of passengers switching their flights

to a different day? Absolutely, its seats are available it is easy

enough to accommodate people, but on a quieter day, Heathrow loads

are very high so it will be difficult to accommodate them and

that could produce lost sales. you get a sense that the airlines

are becoming frustrated with some of the problems at Heathrow? Is it

because it is such an important European airport that they will put

up with anything? To a large extent they do not have a choice because

London has a pull as a key market in Europe. But aircraft are mobile

assets, they can switch to other aircraft. Some airplanes have moved

to London Gatwick because Heathrow is full. In some airlines, they can

go to other parts of the world where they do not faze these

constraints. John Strickland, thank you for joining us. Now let's talk

about matters in Asia because the technology giants Apple and Samsung

have been fighting a battle over their new tablets. Apple has

accused Samsung of stealing its ideas and persuaded a court to

block the sale of the galaxy computer in Australia. But there

has been a new development, let's go to Rico in Asia, in the BBC

Singapore office. Ring us up today. It has been a fierce fight about it

is a victory sauce -- a victory for Samsung. Samsung won this round of

its global battle with Apple on patents after a judge overturned

the ban on the sale of Samsung tablets in the country. Earlier

Apple had won an injunction against a technology giant accusing its are

copying its touch-screen technology. Samsung will not be able to start

selling it as a court granted an injunction on the order until

Friday 2nd December. So from now until then, Sarah, the judge said

Apple will be able to appeal it with the High Court if it wants to

extend the stay. Currently Samsung is second largest components

supplier for Apple. According to technology analysts, this is good

news for Samsung Electronics because it will likely provide a

big boost to the Korean conglomerate ahead of the Christmas

shopping season. Thank you, Rico. One other story to tell you about.

The credit worthiness of some of the world's biggest banks has been

downgraded by the agent, Standard and Poor's. 15 international

countries have had their ratings lowered. They say the move is due

to a change in the way it rates the financial industry. I want to show

you what has been happening as far as the markets are concerned.

Trading of course in Asia has been under way and we have just slipped

on in fact to the United States because, which were quite good

considering there was a consumer confidence survey that helped