:00:03. > :00:13.and Iraq border and sentenced last month to eight years. Those are the
:00:13. > :00:22.
:00:22. > :00:30.latest headlines. It is now time A warm welcome. This is World
:00:30. > :00:36.Business Report. The headlines: The Fed fails to reassure investors its
:00:36. > :00:42.latest plan to revive the economy with a big sell-off on Wall Street.
:00:43. > :00:48.The board of UBS bank has lost confidence in its chief executive.
:00:48. > :00:51.This is following its multi-billion dollar trading loss.
:00:51. > :01:01.Plus, a status update from Facebook as it tries to cash in on its
:01:01. > :01:08.
:01:08. > :01:11.popularity. But can it make money The markets continues despite
:01:12. > :01:15.attempts by the Federal Reserve to restore confidence. A 400 billion-
:01:15. > :01:20.dollar plan to boost the US economy was met last night with the biggest
:01:20. > :01:25.sell-off on Wall Street in one month. US stocks ended 3% lower. In
:01:25. > :01:29.Asia, shares are also we will look at the latest in a moment. But
:01:29. > :01:33.first, we go to Washington on the Fed's latest move.
:01:33. > :01:37.The men and women inside this building have been responsible for
:01:37. > :01:41.some pretty novel ways of stimulating the US economy. But
:01:41. > :01:45.with the end of their massive bond buying programme and with short-
:01:45. > :01:49.term interest rates already near- zero, the Fed was in need of new
:01:49. > :01:54.tricks. That is where Operation Twist comes in. So, how does it
:01:54. > :02:00.work? They plan to sell some of their short-term bonds and replace
:02:00. > :02:04.them with up to $400 billion worth of longer term bonds. In this case,
:02:04. > :02:08.US Treasury bonds range from between six and 30 years. If it
:02:08. > :02:14.works according to plan, it should bring down long-term interest rates
:02:14. > :02:17.and in turn encourage people to borrow more and spend more. The
:02:17. > :02:21.long-term interest rates are at lower levels. That helps support
:02:21. > :02:27.the economy but it is no silver bullet. There are critics both
:02:27. > :02:32.inside and outside this building. They say that there is in danger of
:02:32. > :02:37.stoking inflation. And across town, the IMF is warning that low
:02:37. > :02:42.interest rates for a very long period of time could be fuelling
:02:42. > :02:47.the next bubble. That is an explanation of what it
:02:47. > :02:52.means and what the risks are. Let's look at how the markets reacted. In
:02:52. > :02:55.the US, there was a thumbs down when they thought to be
:02:55. > :03:04.implications and the effectiveness of Operation Twist. In Asia, a
:03:05. > :03:08.similar response. Japan is down 2%. Hong Kong has been hit hard.
:03:08. > :03:18.Hong Kong has been hit hard. Similar in the Chinese market. The
:03:18. > :03:22.
:03:22. > :03:26.US dollar is going up a tab. Shares Michelle outlined some of the
:03:26. > :03:31.issues. We want this to work desperately but there are a lot of
:03:31. > :03:34.debate -- there is a lot of debate as to whether it will work. Yes.
:03:34. > :03:40.Everybody wants success and they want the recovery to be fostered by
:03:40. > :03:45.these measures. The phrase, no silver bullet, that will be carted
:03:45. > :03:49.across financial markets all day today. It is no silver bullet. Also,
:03:50. > :03:55.the other problem, it could be argued as such, is the measures
:03:55. > :03:59.were widely tried. And widely anticipated. So in that instance,
:03:59. > :04:03.they are not a surprise. At the same time, they are coming against
:04:03. > :04:08.the backdrop of the IMF downgraded growth expectations. And
:04:08. > :04:14.downgrading some banks. So it is a negative said of news and that his
:04:14. > :04:18.impact in the market. What has Ben Bernanke he had to say? There are
:04:18. > :04:21.significant downside risks to the economic outlook. In their
:04:21. > :04:26.statement last month, they said there were risks but not a
:04:26. > :04:30.significant downside. That is a change of tone from the Fed. Yes.
:04:30. > :04:36.They have to acknowledge the global environment has deteriorated. Not
:04:36. > :04:42.only in the US, but also issues related to the debt ceiling and how
:04:42. > :04:46.close the US got to some kind of the fault. Uncertainties there. And
:04:46. > :04:51.on the other side of the equation, you have the eurozone which is a
:04:51. > :04:55.difficult scenario. So the two big economic blocks under real economic
:04:55. > :04:59.stress. It would be disingenuous to say anything other than it is
:04:59. > :05:03.significant. We have not got much time. But in a nutshell, what is
:05:03. > :05:07.your outlook? There is very little to get excited about at the moment
:05:07. > :05:12.in the global economy, apart from what is happening in China. But we
:05:12. > :05:16.have to remember we are still in a volatile environment. We are
:05:16. > :05:20.probably still seeing growth and that is what we have to accept. We
:05:20. > :05:25.are in a slower growth environment. For many, it will still feel like a
:05:25. > :05:29.recession. How long? Probably the next two or three years where we
:05:29. > :05:32.will have slower growth. It will be very tough. But you have to
:05:33. > :05:37.remember how long it took us to get to the peak of the economic bubble.
:05:37. > :05:42.That is how long it takes to get out. Thank you.
:05:42. > :05:45.Now for a look at some other stories. UBS is holding a two-day
:05:45. > :05:50.board meeting in Singapore. The chief executive of the Swiss Bank
:05:50. > :05:55.is expected to get a rough ride. Only last week UBS revealed
:05:55. > :06:01.unauthorised trading in its investment back division caused a
:06:01. > :06:05.$2.3 billion loss. We go to Rico Hizon in Singapore. The board is
:06:05. > :06:08.expected to be asked to back his plans for an overhaul of the
:06:08. > :06:14.investment banking. They have a lack of confidence in the chief
:06:14. > :06:18.executive? That is right. He may not be able to pursue these
:06:18. > :06:23.internal reforms any longer because the Swiss media is currently
:06:23. > :06:28.reporting that the UBS board has lost confidence in the chief
:06:28. > :06:34.executive, following this multi- billion dollar rogue trading loss.
:06:34. > :06:39.It is also being reported that the search for a replacement has begun.
:06:39. > :06:45.Sources close to the board say the 67-year-old German has already been
:06:45. > :06:50.asked to leave. Despite all of this speculation in the media, UBS has
:06:50. > :06:54.not released a statement and will not comment at this point. Another
:06:55. > :07:04.Swiss publication is reporting that his tenor will end after the bank's
:07:05. > :07:06.
:07:06. > :07:11.board meeting today or tomorrow. -- Ten -- tenure. They say they are
:07:11. > :07:14.disappointed and concerned with these trading lapses. Before the
:07:14. > :07:18.two-day meeting in Singapore, the chief executive was confident he
:07:18. > :07:22.would stay on as the CEO. He said he had the support of the board to
:07:22. > :07:27.implement a radical overhaul of the investment bank's structure. So we
:07:27. > :07:32.will have to wait and see for the official announcement. Thank you.
:07:32. > :07:36.They could be a status update from Facebook. They are desperate to
:07:36. > :07:40.cash in on its popularity and make more money from its 500 million
:07:40. > :07:45.users. It is the key theme of the annual conference that opens in San
:07:45. > :07:50.Francisco today. Few corporations have grown so big
:07:50. > :07:54.and sold something so seemingly trivial. The opportunity to chat
:07:54. > :07:58.with friends. Weather across continents all across the Office.
:07:58. > :08:05.Facebook is -- has over half a billion users. How can it earned
:08:05. > :08:10.more from them? It already earns money and has teamed up with a
:08:10. > :08:15.video calling service. The talk among software developers is that
:08:15. > :08:20.it is making to use the light feature where Facebook friends
:08:20. > :08:30.highlight their favourite music, videos and TV shows. These can be
:08:30. > :08:31.
:08:31. > :08:36.accessed through a Facebook page using services like Spotify. There
:08:36. > :08:40.is an opportunity for Facebook to minor ties these services. They can
:08:40. > :08:46.do things like charred a ground rate of two operators. They can
:08:46. > :08:50.earn money through referrals and commissions. Why would Facebook be
:08:50. > :08:55.on the lookout for these new money schemes? Perhaps because of its
:08:55. > :09:00.plans to list on Wall Street. Judging by the price of the stock
:09:00. > :09:04.it -- it sold to Goldman Sachs, Facebook is worth $50 billion. It
:09:05. > :09:09.set itself a target of generating $4 billion worth of turnover every
:09:09. > :09:15.year. But recent figures emerging through Goldman Sachs showed a
:09:15. > :09:20.turnover of only $3.2 billion this year. It is time to sweat the
:09:20. > :09:27.assets. You would not wheelie realise so much you are being
:09:27. > :09:34.marketed to or being advertised to. It could step up to another level.
:09:34. > :09:38.It will have more of a commercial Slad. Facebook's founder wants his
:09:38. > :09:42.side to be a main operating plant on the internet. He wants people to
:09:42. > :09:48.use it to access any service they need. But making Facebook to
:09:48. > :09:58.overtly commercial make native lose what made it so appealing to begin
:09:58. > :10:10.
:10:10. > :10:13.Now for more news from the UK. The Prime Minister will use a speech at
:10:13. > :10:18.the UN today to encourage world leaders to take advantage of a
:10:18. > :10:21.massive opportunity presented by the Arab Spring. He will tell the
:10:22. > :10:31.UN's General Assembly that events in the Middle East mean it must
:10:32. > :10:43.
:10:43. > :10:47.There are calls in China for people to stop eating a delicacy that is
:10:47. > :10:52.endangering some shark species. As wages in China have risen, as has
:10:52. > :10:56.the demand for shark fin soup. A star basketball player has lent his
:10:57. > :11:02.name to a campaign to persuade people to stop eating the expensive
:11:02. > :11:06.delicacy. A warning, some viewers may find some of these pictures
:11:06. > :11:15.distressing. It is legal but harvesting a
:11:15. > :11:19.shark's Finn is a gruesome business. The Finns are sliced off at sea.
:11:19. > :11:26.They are then sold to Chinese restaurants to make soup. Myth has
:11:27. > :11:33.it that the fines go back but in reality, the shark simply lead to
:11:33. > :11:37.death. -- beneath his the shark grows back. We are linking this to
:11:37. > :11:43.the origin of the soup. It is a beautiful and majestic animal. They
:11:43. > :11:49.are fast in decline. I was moved by that picture, says this woman.
:11:49. > :11:52.Humans really are the coolest animals. The sharp's theme is
:11:52. > :11:56.tasteless and has no special nutritional value. But it high-cost
:11:57. > :12:02.means it has become a status symbol in China. People come to
:12:02. > :12:12.restaurants like this one behind me to bite the soup to show off their
:12:12. > :12:20.
:12:20. > :12:27.This is BBC News. Coming up: Breakfast. Also, the day's news and
:12:27. > :12:31.sport. All the latest developments. The headlines: President Obama
:12:31. > :12:35.meets the Palestinian leader in New York where they are seeking full UN
:12:35. > :12:39.membership. The White House said he had reiterated the government's
:12:39. > :12:44.opposition to the move and told the President he would veto it.
:12:44. > :12:48.A man convicted of killing an off- duty policeman in 1989 has been
:12:48. > :12:51.executed in George back, despite international concern that the case
:12:51. > :12:59.against him was not conclusively proved.
:12:59. > :13:04.The US Fed has failed to convince investors.
:13:04. > :13:13.But two American hikers held in Iran have arrived in Amman after
:13:13. > :13:20.being released from prison. -- Oman. For the newspaper review. Now for
:13:20. > :13:25.the -- we have the Federal Reserve's Lord of Operation Twist.
:13:25. > :13:30.It is seen as an attempt to drive down long-term interest rate. The
:13:30. > :13:35.US central bank is to buy $400 billion worth of trade.
:13:35. > :13:40.In the wake of Italy's credit rating ground -- downgrading, it is