09/10/2013 World Business Report

headlines from BBC World News. Now for the latest financial news and

President Obama will nominate Janet Yellen to be the new chairman of the

Federal Reserve. Taking off or permanently grounded? Struggling

airline Alitalia in a last—gasp permanently grounded? Struggling

for survival. Welcome to world Business Report. Also did we will

take a look at a boat in Europe Business Report. Also did we will

pilot's owls. The White house has announced President Obama intends to

nominate Federal Reserve vice chair Janet Yellen to succeed Ben Bernanke

central bank — the most powerful job in world banking. Ms Yellen would be

the first woman to lead the Fed in world banking. Ms Yellen would be

she'd take over at a pivotal time when there's more grim news for

she'd take over at a pivotal time economy. There are growing signs of

financial markets being affected by Washington. The main US stock market

there's evidence of concern in the market for US government debt. And

the grim news doesn't stop there. On International Monetary Fund cut

the grim news doesn't stop there. On global growth forecast and warned a

seriously damage the world economy. That was on Tuesday. Later today,

the Federal Reserve's Open Market Committee releases the minutes of

its September meeting — this will reveal more about their concerns

start winding down its stimulus that the US economy is too weak

start winding down its stimulus programme. And also today, the IMF

financial stability, giving its publishes its report on global

closer look at the woman who is latest assessment of threats to

closer look at the woman who is poised to replace Ben Bernanke

to President Obama urging him to the Federal Reserve Last month,

that she is seen as someone at the nominate Janet Yellen citing her

that she is seen as someone at the peaceful end of the spectrum. She is

more committed to bearing down on unemployment, sometimes willing

more committed to bearing down on let inflation rise in the bitterly

necessary to promote job creation. In the current context of the debate

about Federal reserve policy, it suggests that under her leadership,

the Fed would move slowly to reduce the stimulus that is putting into

the US financial markets. That concern about how the Fed might

the US financial markets. That and how quickly it might move has

been one of the main things driving leadership suggesting that may be a

relatively slow with rural of that effort to stimulate the American

recovery. In terms of her being effort to stimulate the American

first woman to have this job, if she is confirmed, it is a very striking

nomination, arguably this is the most important and influential

economic job in the world. No woman has had a central banking job of

anything like this kind of stature. There are some women central bank

governors, the other major woman Christina guard at the International

monetary fund. It really is an unusual and striking development.

Last month over 300 Economist 's. Signed an open letter to President

Obama urging him to nominate Janet Signed an open letter to President

Obama urging him to nominate Janet Yellen citing her consistent good

judgement and commitment to reducing unemployment. Laura Tyson was one of

those — she's a former colleague of Yellen and also a business and

economics Professor at Berkeley University in California. She gave

her reaction to the news to our reporter there, Richard Taylor. I

think it is to reflect news. We reporter there, Richard Taylor. I

a situation where we had a wonderful match of skills and experience and

skill and experience is important. match of skills and experience and

skill and experience is important. And she is an ideal candidate. She

has all the ingredients to be an outstanding Fed chairman. What are

displayed since you have known her and around the University and the

minded. She is policy oriented. and around the University and the

is tough—minded and has a high standard of excellence she brings to

everything she does, whether it standard of excellence she brings to

written research or standing in front of a classroom. When she gives

a speech, people are struck by the amount of content and the rigour and

also the clarity. She puts it all Washington, she did not have a lot

of public policy experience but Washington, she did not have a lot

very high level of research School, rigour and policy in Trieste and

communication skills came to be rigour and policy in Trieste and

very effective way in a variety rigour and policy in Trieste and

roles. She has been portrayed as being one of the duds, would you

similar to Ben Bernanke. —— dubs. She has been she has been saying for

deep recession with a slow recovery. a long time that we have had a very

deep recession with a slow recovery. That monetary policy, aggressive

monetary policy has been needed That monetary policy, aggressive

help the economy tickets wait out of the great recession. I would not

get more now from Dr Chris Oates — the great recession. I would not

get more now from Dr Chris Oates — North America Analyst, with Oxford

His first choice was Larry Summers. North America Analyst, with Oxford

disfavoured Larry Summers. They thought he would have been easy

disfavoured Larry Summers. They banks, in terms of regulation and he

would not necessarily have been banks, in terms of regulation and he

dovish monitor airily. I think Janet Washington will be like a dull.

dovish monitor airily. I think Janet announced overnight, you think this

is trying to being some calm amidst this US shutdown and debt ceiling

drama. It is difficult to bring this US shutdown and debt ceiling

to this debt ceiling shutdown. It is quite dramatic and back and forth.

But I think that maybe the intent. What you make of her. She had a

But I think that maybe the intent. backing from many economists, and

influential people in Washington. relationship with Wall Street? It is

possible but she will develop one very quickly. But she has been able

to macro at the Fed so she knows the job and knows what has been going on

between the Fed and Wall Street job and knows what has been going on

the quantitative easing programme. Should she be dovish given how the

American economy is doing? Because the economy looked to be recovering,

she is pulling back on quantitative easing. Data shows that unemployment

has not private, job growth has recovered. The most likely outcome

of the situation in Washington is that the drag on the economy will be

even greater. The storm—clouds are gathering round Alitalia — Italy's

loss—making national airline. After gathering round Alitalia — Italy's

loss—making national airline. After emergency talks with government

officials in Rome, it is now thought to have little more than a week

officials in Rome, it is now thought drum up millions of euros in state

or private—investor support. Without it, Alitalia risks falling into

bankruptcy for the second time. it, Alitalia risks falling into

Cassidy: This is not the first time Alitalia has flown into financial

headwind, it has been fighting for its financial life were years. It

now seems the price for keeping its financial life were years. It

flights over Italian skies has finally become too high. Especially

remaining 19,000 staff. The wage bill is way ahead of receipts.

investors first it in when the airline was rescued from favour

investors first it in when the 2009. It cut costs, but since then

has accumulated debts of a hundred but in Euros which can not just

has accumulated debts of a hundred up. There are worries about fuel

supplies because of unpaid bills. The Italian State rail operator

supplies because of unpaid bills. been mooted as a possible saviour. A

takeover by the part owner in France seems most likely. The plan being

bitterly opposed in the country seems most likely. The plan being

fears of hundreds more redundancies for ground staff. Commentators

acknowledged Italy has much at stake. There is a political economic

have seen Alitalia as the flag cover —— carrier for a sleek, if it gets

taken over by air France that may still exist but because air France

are running the business, the focus shift away from the Italian airports