13/10/2011 World Business Report

for spying. Those are the Top stories. Now the latest financial

You are with World Business report. The headlines: a warning to Raj

Ruddock not numb -- Raj Rajaratnam. Chinese trade slows in the face of

a global slowdown. Investors queue European leaders the benefit of the

doubt has plans to merge to Shaw up the financial sector. -- shore. His

trial and conviction captivated Wall Street and involve some of the

biggest names in the finance industry. Now the drummer concludes.

Raj Rajaratnam will learn today how long he will spend in prison for

Israel in the biggest insider trading scheme in two decades. --

Israel. Prosecutors want the toughest punishment. -- his role.

The Government say he deserves 20 years in prison. The defence argues

that he is of old and has health issues and it would not serve

anybody's interest to put him in prison. He could stay there at a

good portion of the rest of his life. These are all I Timmons. Raj

Rajaratnam was found guilty of masterminding the biggest insider

training scheme in a generation. He earned a fortune managing other

people's money. A circle of insiders gave hint stock tip-offs.

There will be an appeal. The use of wire-tapping will be the main issue.

This was an unprecedented use of wire-tapping. They were

traditionally used for organised or blue collar crimes. The drama that

has cast a spotlight on the hedge fund industry will return once more

to this imposing Manhattan courthouse. Raj Rajaratnam will

learn his fate at this courthouse at a time when economic crimes face

tougher sentences. The message to a nearby Wall Street, those who are

caught insider trading will not get off lightly. China has seen a fall

in exports and imports in September, reflecting global economic weakness

and the cooling off of the Chinese economy. Tell us more about these

figures? As you said, the exports and imports slowed in September.

Exports increased 17 % last month. Imports increased 21 %. But these

are lower than the August figures. The trade surplus narrowed. He was

14.5 billion in September - half what it was in July. This gives the

Government strength to resist American pressure to strengthen

their currency. The Americans say the Chinese are getting an unfair

advantage. They say it is their trade surplus. The Americans are

pushing through a controversial currency bill aimed at forcing the

Chinese to push you one higher against the dollar. But the bill is

uncertain. It has drawn sharp criticism from China. They say it

would not reduce the trade imbalances or save American jobs.

Still on trade, the US Congress has approved a massive free-trade deal

with South Korea. It is the biggest such deal since the North American

free trade agreement in 1994. How correspondent says the deal has

been a long time coming. It test been controversial in South Korea

and America. It has taken four years to pass this agreement which

was signed by the leaders in 2007. Bush was in power then. There have

been lots of practice since then from American carmakers and Korean

farmers looking to protect the industry's but they have now been

ironed out. Back to Europe. The big banks are grappling with the latest

plan to prevent the Greek debt crisis from spiralling into a full

banking crisis in Europe. A key element in this road map to taint

the crisis was the call for higher capital ratios and Europe's top

banks. That was one of the details. It received a warm welcome from the

European markets. Asian markets are seeing some gains. For some of

these markets in the six days in a row of gains. The euro is trading

higher. What is happening in Europe is a lot to do with the use rises

in markets. European bankers are warning now is not the time to

increase capital. It could squeeze eurozone economies already on the

brink of recession. Like I say, the President had a lot to say, but

what do you think about the capital requirements? Hope springs eternal.

We are hanging our hats on the fact that the European Union might do

something meaningful. If they managed to deal with Greece and re

schedule its debt we are looking at a banking crisis. Now he's not the

time to implement whether it is a 9% capital ratio. In Britain most

of them are in double figures. But I find it extraordinary that you

can use one figure for every bank in Europe. There are different

criteria. They should be more bespoke. Absolutely. If Greece 20

years to pay back their debt. Then we would get somewhere. But some

argue this is not the way. Some banks say they are better off

selling assets than increasing capital ratios because that will

not help growth stock below yes, but what assets can you sell. Many

are embroiled in sovereign debt. The peaks of run well funds don't

want to touch them. Exactly. This is throwing a pebble in the water

and sending out ripples to the European Union. The way it is

presented is not practical and cannot be done. I hope the

negotiations will deal with ways of going forward and certain banks.

will talk more later. Let's squeeze in some more stories. If you are

using a BlackBerry you will know about the damage after the third

day of disruption to its in now and messaging services. They vowed to

deliver all messages to the tens of million of customers affected. But

the e mail backlog may not clear until later today. Google reports

third-quarter earnings later today. So far they have held up. But