12/09/2012 World Business Report

the Eurozone. Now for the latest financial news with World Business

Will they or won't they? The German court rules on whether gemmy will

contribute to the European bail-out fund. Apple get set to launch the

new iPhone but will the new handset fare as well as the old one in the

crowded market? It's a crucial day in the battle to tackle the

Eurozone crisis. Germany's Constitutional Court will rule on

the legality of Germany paying its 27% share of the 700 billion euro

European Stability Mechanism -- that's the new rescue fund for

Eurozone countries that need a financial bailout. If the court

finds in favour of the legal challenge, it will plunge the

eurozone deeper into turmoil by casting doubt over it's ability to

rescue its heavily indebted southern states. The main critics

are from Southern Germany where a high proportion of business taxes

will go to fund the ESM. Our Europe correspondent Nigel Cassidy has

been to Nuremberg to weigh up the mood there. Summer is over and

Christmas is coming. Three shifts a day here mixing it up. This is the

favourite gingerbread cake. From July to January, the family turns

out 5 million cakes every day. They cover them with chocolate and nuts.

Mainly German people have a taste from this product. They have a lot

again. These are traditional products, in fact the German

businesses are against the German stability mechanisms. He be sacked

as a focus for people against more European rescue. If his case is

lost, it will take the heat out of the European bail-out. They want to

keep the euro says the managing director but the patients over

subsidising Greece has worn thin. They're missing the general

structure. As long as they don't have that, these necessary

structures, they will have more problems. If you give them more

money, you need to regulate that. We cannot just let them take the

money and do what they want. At the University, we hear more about the

objections. This is the economic adviser to the Finance Minister.

The Coalition thinks that Germany should stop helping the other

European countries with their debt problems and the rescue fund is no

solution to that problem. It may even aggravate the problems for the

future to provide a disincentive to other governments. The expectation

is that the court will not rule against the bail-out spending but

even the threat is keeping the market on tenterhooks and keeping

the lights of the Spanish bond yields sky-high. Whatever way it

goes, with elections pending, Conservatives are likely to

maintain a hard line against the eurozone debt sinners. Let's stay

in Europe and the banks will be focusing later when the President

of the European Union announces plans to bring them closer together.

They want to make sure the banks are properly supervise so they

won't get into financial difficulty. They won't need more bail-outs. The

plan as many critics. Many argue that the bank would have

unprecedented power of regulation and undermine national powers. This

is something that they have spoken about for some time. It's no big

surprise. What's your take? George Osborne is left between a rock and

hard place after what happened a few years ago in Lisbon. Obviously,

the Chancellor was obliged to go along with the basic principle of

the banking union. When you consider what this requires in

Europe, a huge sovereign debt, it's not a bad thing. We need to

remember that in context, all of these wonderful places like

Frankfurt, Madrid, Brussels, Rome, financially they're just Mickey

Mouse compared to London. London has a huge amount to lose. It's a

banking centre. On a huge critique of global regulation. It's nonsense.

Because the criteria for each country is completely different. In

the UK, mortgage and that mortgage lending is very important. On the

continent it's irrelevant. How can you possibly stack that up against

with the same regulations controlling that by a governing

body when they don't understand the country of your business.

Presumably, if the bank is in good shape with good capital, not on the

brink of collapse, and they will be left alone by the supervisory body?

It's a big if. When you look at what's going on around you. In

Germany, even Germany with a strong economy, far too many bad banks.

What seemed contraction in Spain. Too many bad banks and you cannot

control them. In Italy, a lot of little banks which need to close

down. Big is beautiful. They need to do with their own issues at home.

We have a role Bank of Scotland issues and Lloyds Bank issues but

the criteria heres a very different. London is an international centre

of business. You argue there needs to be a eurozone? A regulation?

I will say hang on your in the EU but we are not in the eurozone.

That's the important thing. Europe has a massive debt crisis. It will

affect things for a decade. I don't think the UK in their interest is

wanting to be dragged down by other legislation. We will talk through

the newspaper headlines later. We'll talk more about that no doubt.

Apple will dominate headlines again expected to unveil the latest

iPhone. It's called the iPhone five seen as the biggest ever launched

and does a lot riding on this with sales of the iPhone accounting for

half the Apple Revenue and after a series of disputes with rivals

competition is tougher so can they top the dominance? We report from

New York. Chris O'Brien is the kind of customer at all does not need to

win. He is a loyal iPhone are used up. He does not know how much this

new phone will cost off what it will do, but he wants one as soon

as possible. I expect a better bone, faster, bigger screen, that's what

I want. Lightweight, I think the track record from Apple with their

products, gives me faith. That kind of loyalty means Apple's

expectations is 10 million new devices in that first week. Many of

those will be to existing users to upgrade their handsets. And the

challenges to get more new ones. The market is competitive with

rivals gaining ground. Samsung is fighting back with its galaxy. Last

week, Nokia launched a new device after teaming up with Microsoft.

Should at all be worried? Some say it its legal disputes say it is

worried and it has pursued the court case against Samsung. It was

found guilty of copying the technology and paid out billions of

dollars of compensation. The rivals now need to work harder to come up

with other ideas. Analysts say that will benefit the consumer. It you

want to the Apple you need something totally different. Tries

to beat Apple at what it is doing to us is the wrong strategy.

Samsung needs to try to go a different direction and offer the

consumer a unique choice. Would that be enough to tempt customers

away from Apple? Unlikely for now but mobile phone makers mean

getting to the top takes a lot of hard work. Staying there it takes

even more. The boss of Facebook spoke for the first time about the

drop in market value. Shares halved since it floated in May. He spoke

in South and San Francisco and Mark Zukerberg explain this as

disappointing. The performance has not been that disappointing. We

care about the shareholders. The commitment we made is that we will

execute the mission to make the world more connected and we will do

the things we think will build value in the long-term. The market