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charity dinner in New York. Those are the latest headlines. It | :00:03. | :00:13. | |
:00:13. | :00:22. | ||
is time for the money news. Welcome to the programme. Let's | :00:22. | :00:27. | |
take a look at the headlines: EU leaders have agreed to phase in a | :00:27. | :00:30. | |
single supervisory body for eurozone banks during the course of | :00:30. | :00:36. | |
next year. The World Trade Organisation write | :00:36. | :00:44. | |
cheques China's appeal over its tariffs on US Steel. -- rejects. | :00:44. | :00:49. | |
A costly mistake. Google publishes its results too early and its share | :00:49. | :00:59. | |
:00:59. | :01:06. | ||
price goes into a tailspin. EU leaders had agreed to phase in a | :01:06. | :01:10. | |
single supervisory body for eurozone banks during the course of | :01:10. | :01:15. | |
next year. A legislative framework is to be agreed among the member | :01:15. | :01:20. | |
states by the 1st January, 2013, and the European Central Bank, the | :01:20. | :01:24. | |
ECB, will be given Supervisor responsibility with the power to | :01:24. | :01:30. | |
intervene in any bank within the eurozone. There are 16 per hour -- | :01:31. | :01:36. | |
6,000 of them. Speaking at a news conference, the EU President said | :01:36. | :01:41. | |
that this was an urgent issue. June, we agreed to break the | :01:41. | :01:47. | |
vicious circle between banks. The urgent element is setting up a | :01:47. | :01:53. | |
single supervisory mechanism, to prevent banking risks and cross- | :01:53. | :01:58. | |
border contagion from emerging. That is why we have called for | :01:58. | :02:03. | |
swift progress. It is with the objective of agreeing on the | :02:03. | :02:10. | |
legislative framework by 1st January, 2013. Once this is agreed, | :02:10. | :02:15. | |
the single supervisory mechanism could probably be effectively | :02:15. | :02:22. | |
operational in the course of 2013. There is lots to talk about. Ralph | :02:22. | :02:32. | |
Silva joins us. This is kind of, we all agreed to agree, not a lot of | :02:32. | :02:42. | |
:02:42. | :02:42. | ||
detail on the table. Rules were no longer have to be ratified by | :02:42. | :02:48. | |
individual countries. -- will no longer. That is huge. That is | :02:48. | :02:52. | |
enormous. We are talking about 6,000 banks. They will have to | :02:52. | :02:58. | |
change how they operate. So many countries in Europe have very | :02:58. | :03:03. | |
distinct history is. We have banks in Europe that are order than | :03:03. | :03:10. | |
America. That kind of history makes it different -- difficult to agree. | :03:10. | :03:15. | |
We would talk about the time frame in a second. There will be a lot of | :03:15. | :03:20. | |
people either asking, or thinking, how does this off the current | :03:20. | :03:28. | |
financial crisis? It does not. But it will help future ones, because | :03:28. | :03:32. | |
we will be able to react to areas in Europe that are having more | :03:32. | :03:40. | |
problems and more quickly, instead of waiting for Greece to collapse. | :03:40. | :03:46. | |
This is the first step in making sure that we can manage the economy. | :03:46. | :03:50. | |
Ireland is a perfect example. The property bubble burst in Ireland, | :03:50. | :03:54. | |
the banks needed money, the Irish government stepped in and bailed | :03:54. | :03:58. | |
out the banks, which left the one at a very empty. And then they | :03:58. | :04:04. | |
turned around and said they needed a bail out. -- left the wallet. Is | :04:04. | :04:10. | |
it getting it away from taxpayers' money? Making sure the countries | :04:10. | :04:18. | |
can run themselves. The banks are the key to the financial system. If | :04:18. | :04:23. | |
they do not exist, they cannot get money into the economy. Making sure | :04:23. | :04:30. | |
that it works is the whole philosophy. Key to the financial | :04:30. | :04:36. | |
system, London is the key find a dual hub, certainly for Europe. -- | :04:36. | :04:43. | |
financial hub. How does it work for Britain? It is a bit more | :04:43. | :04:49. | |
complicated for the UK. The vast majority of banks in the UK are up | :04:49. | :04:53. | |
investment banks. Most of the banks in Europe are predominantly retail | :04:53. | :04:58. | |
banking systems. The British banking business has said that they | :04:58. | :05:03. | |
want to be unique, they want to be completely out of it. I do not | :05:03. | :05:08. | |
think that is sustainable. I think we will eventually be part of it, | :05:08. | :05:14. | |
but in the second generation. Before we came on air, you | :05:14. | :05:24. | |
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mentioned the number of banks and the different bodies. Germany has | :05:24. | :05:31. | |
almost 4,000 banks. The sizes are different. By January 1st, which is | :05:31. | :05:36. | |
just around the corner, and the German Chancellor has been very | :05:36. | :05:42. | |
insistent, quality must come before speed. Can this be done? It is | :05:42. | :05:47. | |
feasible if we limit the number of roles. If we take one or two per | :05:47. | :05:57. | |
:05:57. | :06:00. | ||
year, it is possible. Let's move on. Google saw billions | :06:00. | :06:04. | |
of dollars wiped off its market value on Thursday after its latest | :06:04. | :06:12. | |
results were released early. It was by accident. It knocked off | :06:12. | :06:17. | |
something like $22 billion in about eight minutes. The figures should | :06:17. | :06:21. | |
have come out after the markets closed on Wall Street, but they | :06:21. | :06:26. | |
revealed a 20% drop in profits. Certainly far worse than what | :06:26. | :06:31. | |
people had been expecting. The World Trade Organisation has | :06:31. | :06:39. | |
rejected China's appeal over its tariffs on US Steel. I believe we | :06:39. | :06:44. | |
are not just talking about any old ordinary steel, we are talking | :06:44. | :06:54. | |
about speciality steel. That is right. It is used for electric | :06:54. | :06:59. | |
motors and it is made by companies in Ohio and Pennsylvania. The World | :06:59. | :07:02. | |
Trade Organisation has ruled against the Chinese tariffs in June, | :07:03. | :07:07. | |
a decision it upheld, saying that China had failed to prove his | :07:07. | :07:13. | |
charges. Beijing had no immediate comment on this ruling. But the | :07:13. | :07:17. | |
latest decision by the WTO is likely to provide a boost to | :07:17. | :07:22. | |
President Obama's campaign. The President has been facing ongoing | :07:22. | :07:26. | |
criticism in the lead-up to the US elections, that he has been soft on | :07:26. | :07:32. | |
China. These disagreements had been growing in recent times. The two | :07:32. | :07:36. | |
sides had sparred over issues ranging from China's currency | :07:36. | :07:40. | |
policies over allegations of state subsidies given to Chinese | :07:40. | :07:50. | |
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companies. We will see more of this. I should make it clear, you and I, | :07:51. | :07:57. | |
we are not gamblers. But it does look... it looks like Macau is | :07:57. | :08:06. | |
going to get another giant casino. It just continues to expand. All | :08:06. | :08:16. | |
these casinos, a Las Vegas based company signed a land deal for a | :08:16. | :08:26. | |
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new $2.5 billion casino result. -- casino resort. They will be | :08:26. | :08:31. | |
building a five-star, 1,600 room hotel. With the project, MGM hopes | :08:31. | :08:41. | |
:08:41. | :08:43. | ||
to catch up with the rapid expansion of rival casino operators. | :08:43. | :08:48. | |
And there is a company with three resorts and is planning a fourth. | :08:48. | :08:53. | |
There will be another beach resort which is costing $4 billion. With | :08:53. | :08:57. | |
MGM having only one casino in Macau, its share in the market is among | :08:57. | :09:06. | |
the lowest of the six casino operators in the territory. | :09:06. | :09:11. | |
Let's start on some of the other business stories. Microsoft has | :09:11. | :09:14. | |
released results that showed its first quarter profit fell in part | :09:14. | :09:21. | |
due to a difficult computer sales. The world's largest software | :09:21. | :09:28. | |
company said it fell to $4.5 billion, down from $5.74 billion. | :09:28. | :09:32. | |
It said it hoped to revive PC sales next week with the launch of its | :09:32. | :09:37. | |
new Windows 8 system. Buying a pair of trousers at one | :09:37. | :09:42. | |
o'clock in the morning, that has never been a problem in Cairo, but | :09:42. | :09:46. | |
now a new proposal to/trading hours could pull the plug on the city | :09:46. | :09:50. |