27/02/2012 World Business Report

Margaret Thatcher in The Iron Lady. Those are the latest headlines.

Now for the latest financial news here is World Business Report.

Welcome. The headlines: All eyes on Berlin as the German parliament

votes on a Greek bail-out package today.

G20 finance ministers increase the pressure on the eurozone to come up

with more financial firepower to solve its debt crisis.

(INAUDIBLE) it is facing opposition amid fears of environmental and

health risks. The German parliament is holding a

special session later today to discuss the bail-out package for

Greece. It is expected to be voted through. Chancellor Angela Merkel

may need to rely on opposition votes as an anti-Greek sentiment

grows within her party. Lawmakers have been urged to support the

package, but could not rule out that Greece may need more cash. In

the meantime, G20 finance ministers meeting in Mexico will agree that

Europe needs to put up more money to fund its debt crisis if it would

like further help from the rest of the world.... Britain's finance

minister said he would like to see the colour of the eurozone's money

before Britain or other countries pledge extra money for the

International Monetary Fund. Joining us from Berlin is the chief

executive of the Berlin Stock Exchange. Good morning.

If we talk about the vote to start with - I presume you expect it to

go through? Absolutely because the opposition already said they would

vote in that way. Inside a Angela Merkel's party there are great

doubts as to whether that package will be the end of the line,

everybody thinks there will be more to come. Over the weekend, the

interior minister in Germany broke ranks, didn't he, publicly and said

he would like to see Athens or Greece leave the eurozone? Yes.

Most amazingly, the internal ministry is saying that it might be

better if Greece leaves the eurozone. That is amazing because

today the Conservative Party is expected to vote with Angela Merkel

on that, but it will be the opposition which might... What does

that mean for future support of where Angela Merkel is going with

rescuing Greece and possibly other economies within the eurozone?

the past the discussion in Germany was quite contained two - is

Germany going to support Greece to the bitter end? Now it looks like

more people are saying that they will need much more money and maybe

that money could be used elsewhere in better ways. Remember Greece is

only the first one - we have Portugal on the line, and talking

now about an increase of the overall fund not only in the G20

but also in Angela Merkel's own Conservative Party, this indicates

that everybody realises that the whole package is much too small.

While we are talking about that, obviously the G20 finance ministers

have said what they feel about that. That eurozone economies need to put

more money in before they will put more money into the IMF. That is

correct. On the one hand you have to understand that they wanted us,

Europeans, to put out that money in first before they will, this is, I

don't want to say blackmail, but it is some kind of dealing behind the

scenes. There is some background to that because it becomes more and

more clear that the overall package has to be bigger than it is

currently. We will have to leave it there. Thank you very much for

being with all us. The civil trial over the 2010

deport a horizon oil Riga horizon was due to start in New Orleans

today, but it has been delayed. -- Deepwater Horizon oil rig. The rig

exploded in 2010.... Britain's biggest insurer or does

not specify where it will move to, but there has been the long-running

speculation it could shift its headquarters to Hong Kong in

recognition of the age of's growing contribution to its growth.

UK banks Lloyds and Royal Bank of Scotland are planning to take

advantage of a special funding scheme. Attracted by the low 1%

interest rate, the two are said to look for a combined amount of 15

billion euros. The auction takes place on Wednesday.

The World Bank releases its China 2030 report in Beijing today. This

is a joint study with China. There is some speculation it will deal

with sensitive economic issues such as reforming China's state owned

enterprises. We spoke with the outgoing president of the World

Bank. The is as a comprehensive report that we have been working on

for over 18 months with outback Chinese colleagues. It covers

everything from safety nets that are effective and I'd done in a way

that protect poor people in China - - that are done. It deals with the

lens system, it deals with a draw resource -- natural resource prices.

You mention state owned enterprise, what you think needs to be done to

reform it in China? Chinese depositors have often been paid

very little for their savings. This has allowed the Chinese banks to

give a very attractive loans to state-owned enterprises. Some of

those enterprises have monopolistic positions so they don't face much

competition. They make large sums of money and have large it retained

earnings. Should some of those earnings p dividend in back so they

can be spent on social programmes? -- should some of those earnings be

given back as dividends? Now, the state owned enterprises

are a strong interest so they will want to hold on to what they have.

You have said you will be stepping down as the President of the World

Bank. There are already developing nations clamouring for who will be

your predecessor. Do you think it is fair that the president has

always been American? No, I think the United States has played a key

role in the system, but if you are asking whether developing countries

should have more of a voice in the system - definitely. There are

certainly good candidates from developing countries. I try to

bring a lot of them in at senior levels in the bank. I also think 10

an American can do the job well, I am American, so I have that bias.

One challenge here, to put it in perspective, I have spent 25-30

years of my career with the US government trying to have the US

enter multilateral organisations. I think it is good for the US and the

system to have US citizens play a leadership roles in these

organisations. Whether that will be the case in this situation, that is

not my call. Rare earth metals are part of our

daily lives. They are in everything from telephones to cars. China is

expected to double their rare earth exports thanks to a spike in demand.

There is another country hoping to get a piece of the action but there

is plenty of opposition. You are in Singapore, what is going on?

Hello, Sally. Malaysia would like a piece of this profitable market,

but the south-east Asian economy faces opposition from residentss

from one town on the east coast of the country. An Australian mining

company is building a rare earth mining facility there. Thousands of

citizens are staging protests. They fear that the radioactive waste of

this process will seep into the ground and water, harming the

environment and people's health. The Australians insist the bland is

safe and that any radioactive waste created would be only at a low