23/03/2012 World Business Report

of the drug. It is now time for World Business

Locum two World Business Report. The headlines: Deadline day for the

top job at the bold break. America's grip on the position is

challenged by the developing world. A new budget airline bodgers in

Japanese investigators searched the offices of the pension and

Today is the deadline for applications for the top job at the

World Bank. The US is leading up to the last moment to name its

candidate. Traditionally the position has always gone to an

American, but since its remit is to provide loans to the developing

world, there had been growing calls The former Colombian Finance

Minister has put his hat in the ring, with Latin America's backing.

The Nigerian Finance Minister is expected to be put forward by South

Africa. She was managing director at the bank until last year.

An American economist and author says he has the support of several

developing countries. Some say he is too liberal to win the backing

of the White House. We are joined by the director of

European -- director had the European Centre for political

economies. There is enormous pressure to appoint someone outside

the US. Yes. I think it is something that has been in the

making for quite some time now. Developing countries as well as big

emerging markets are calling the board a different type of selection

process, where people do not carry American pass boat will be eligible

for the post as well. It is pretty anachronistic to have this kind of

as selection process we can only realistically look at candidates

from one country to head up such a global institution. Which candidate

giving stands the best judge of getting the job? -- chance. I think

that remains to be seen. I beat the candidate the White House put

forward is going to be the person who is going to be elected. I am

pretty sure that the White House will put forward a named and would

do so very soon. How strong a political appointment is this such

that the US would be reluctant to lose control? After all, the

current head is an American and the head of the IMF is European. No

break with tradition there. That is right. Despite all assurances from

both Europe and America that they want to change this type of

selection system, they do not seem prepared to do it when the hard

choice has to be made. Coming back to what you said, it is a very

political post. It is political in two senses. This week in that

countries are going to look for a candidate who has strong backing in

their own political system. This is especially true in America, where

they want someone to head the World Bank he will carry weight on

Capitol Hill and can twist arms and pair of suede members of Congress

to give money to the World Bank. -- persuade. They also want to have

someone who has stature to be able to make a call to leaders around

the world. They are looking for Other news now. Nike has seen its

profits rise as demand for its shoes and clothes outstrips rising

costs. Net income for the third quarter rose 7%. It also said that

orders heading into spring were up to 15%, indicating strong sales

will continue. The mobile is cutting 1,900 jobs

across the country and says more cuts could come. The company is

reducing costs by closing seven of its 24 call centres. It has been

losing out to rivals and is trying to make itself more competitive.

EU foreign ministers meet to discuss measures to enforce state

oil embargo on Iran, which is due to take effect from July.

Uncertainty over how the embargo will impact will supply has been

driving up prices. A conference the scandal in Japan.

The officers of a pension fund scandal -- company had been raided.

What is the background? As you say, the officers have been searched by

Japanese investigators. The company has been stripped of its

registration as well, which effectively ends its ability to

operate as an asset manager. Investigators essentially are

trying to gauge the size of the problems at the pungent and money

management firm. It is being investigated after it failed to

account for $2.2 billion worth of client funds. The scandal is the

latest in Japan. There have been calls for changes in corporate

governance there. Late last year, the country were shot by the news

that the Olympus had he been nearly $2 billion in losses for as long as

20 years. Japanese authorities are saying they are going to start

probing all other investment firms in the country as well. The company

managed group pension funds bought more than 100 companies and

according to reports, J but -- Japan's Labour Welfare Ministry

have asked some ad for in pension funds to try to take steps to

protect the assets they had entrusted to the company.

This weekend sees the launch of a new low-cost airline in Europe. It

has been founded by the International Airlines group to

make up for the losses of its subsidiary Iberia. Spanish pilots

have protested against the airline, saying it will lead to job and pay

cuts. It is a brother bikie Lodge. Three

days before take-off for Iberia Express, he could not buy a ticket

on its website or find out its roots. Most of the publicity for

the airline has come from the strikes against it by Iberia's

pilots. They say staff transferred there will get pay cuts and many

others will be sacked. International airlines group says

it is creating the low-cost arm to recoup losses. Last year British

are always -- British Airways made a large profit. Iberia lasted a

vote. Iberia Express, with its more efficient ways of operating could

make 100 million euros a year. is how other companies have done it.

Get rid of all those legacy costs. All of that arcane build up that

you get when you have companies of 30 or 40 years' history. Money can

start afresh, you can get rid of these delicious -- immediately.

Many airlines have started up low- cost subsidiaries only to abandon

them when they fail to come up to expectations. British Airways it a

memorable example. Will Iberia express be any different? Will it

be able to compete with major rivals when it comes to costs and

efficiency? It will be hard to make it until Liberia gives it more

planes. It is starting with a fleet of Unley four. You have to get that

critical mass in order to do it. You have to be up in the 4260

aircraft. The company has Spain's ill

be tight there are three good years and bad. Ryanair and easyJet have

no homes. They cherry-picked Now they look at the markets, which

are coming off a bit this week. The latest bit of news which has had

been running to the hills is that Chinese manufacturing has been