:00:07. > :00:17.time. Europe is putting the pressure on credit ratings agencies.
:00:17. > :00:20.
:00:20. > :00:25.Now it is time for World Business Report. The headlines: Fighting
:00:25. > :00:29.back. The EU is set to bring in tough new measures to curb the
:00:29. > :00:38.influence of credit ratings agencies. Europa is taking
:00:38. > :00:42.austerity medicine but there are damaging side-effects. In Asia,
:00:42. > :00:52.Australia's Prime Minister calls for the ban on selling uranium to
:00:52. > :00:57.
:00:57. > :01:04.India to be overturned. The world's leading credit ratings agencies
:01:04. > :01:08.could see their powers curbed to today. The EU has been angered by
:01:08. > :01:13.downgrade some member states and argues that the agency's are too
:01:13. > :01:17.influential and need to be reined in. It comes after Standard &
:01:17. > :01:22.Poor's accidentally downgraded France's credit rating. Our
:01:22. > :01:32.correspondent reports. The EU has never forgiven the Big Three
:01:32. > :01:38.
:01:38. > :01:45.ratings agencies. Some do not like it, but two of the three biggest
:01:45. > :01:53.agencies are US-based. Either way, S&P's accidental downgrading of
:01:53. > :01:57.France's rating, since rescinded, has fuelled market speculation.
:01:57. > :02:03.TRANSLATION: I believe this will start the discussion again that an
:02:03. > :02:08.independent European ratings agency should be found dead. That would
:02:08. > :02:16.give an alternative G the US ratings agencies, which are
:02:16. > :02:21.dependent on private enterprise. it is not clear what changes are
:02:21. > :02:25.proposed. The industry should be more open. He wants to see less
:02:25. > :02:33.reliance over all on ratings in Europe and greater penalties for
:02:33. > :02:37.misconduct. Those who assess risks on corporate bonds say that a tough
:02:37. > :02:43.new regime could be counter- productive. Especially if they are
:02:43. > :02:53.forced to keep swapping the agency they work with. The quality of
:02:53. > :02:54.
:02:54. > :03:03.information and analysis could well deteriorate. The first incumbent
:03:03. > :03:08.may only be there for three years. There is limited incentive for them
:03:08. > :03:15.to do a thorough job knowing they will be out of working a short
:03:15. > :03:19.period. Change is definitely on the way for ratings agencies. Once
:03:19. > :03:27.again European leaders are being reminded that such Kurds can have
:03:27. > :03:35.unintended consequences. BBC News. The balance between austerity and
:03:35. > :03:44.growth is the heart of the difficulty. Not enough attention on
:03:44. > :03:54.how countries can grow their way out of trouble by boosting exports
:03:54. > :03:57.
:03:57. > :04:07.and stimulating demand. From July to September the eurozone grew by
:04:07. > :04:12.
:04:12. > :04:18.only o.2%. We speak to an economist at i n g. Not the most exciting
:04:18. > :04:25.news about growth in the eurozone, but good that they are growing,
:04:25. > :04:32.giving the challenge as a focus at the moment. Tiers de ven the
:04:32. > :04:36.challenges they face at the moment. The 4th quarter looks very weak. I
:04:36. > :04:43.think this will be the last positive number before we slip back
:04:43. > :04:52.into a mild recession. Why is this quarter's strong, especially for
:04:52. > :04:59.Germany? We saw a technical rebound after a weak second quarter. German
:04:59. > :05:05.industry was doing very well in July and August. In September there
:05:05. > :05:12.was a sip of confidence. That was not enough to offset two very good
:05:12. > :05:16.amounts, July and August. Many argue that the austerity measures
:05:16. > :05:26.are not stimulating growth, which is what is required. What is your
:05:26. > :05:31.view on that? Does Mauny to be done to stimulate growth? Right now you
:05:31. > :05:36.have to make a choice. Either belt- tightening or stimulating growth.
:05:36. > :05:46.If you look at the high debt numbers in May's European countries,
:05:46. > :05:46.
:05:46. > :05:52.it is belt-tightening. If you do that together with measures that
:05:52. > :06:02.can stimulate growth and the medium term that is the right way to go.
:06:02. > :06:02.
:06:02. > :06:08.You say we will slip back into recession. For how long? It is
:06:08. > :06:14.difficult to predict. At least one or two quarters. Growth should pick
:06:14. > :06:19.up in the middle of next year. The global economy should recover and
:06:19. > :06:23.interest rates should be low. And we will see the first positive
:06:23. > :06:33.impact from the austerity measures. Thank you for joining us from
:06:33. > :06:33.
:06:33. > :06:38.Brussels. The Australian Prime Minister has called for the ban on
:06:38. > :06:42.selling Iranian to India to be overturned. Or Julia Gillard says
:06:42. > :06:52.it does not make sense to sell nuclear materials to China, India
:06:52. > :07:00.and Japan but not India. The markets have reacted to this in
:07:00. > :07:07.Australia. Is this significant? Local media is calling this a major
:07:07. > :07:16.back said. The ban was introduced in 2008 by a Julia della's her own
:07:16. > :07:23.Labour Party. India has not signed a non-proliferation Treaty. It
:07:23. > :07:31.allows countries that are tested weapons before 1967 to legally
:07:31. > :07:38.possess them, which does not include India. The US has agreed to
:07:38. > :07:44.work with India on these projects. Julia Gillard's suggestion is to
:07:44. > :07:48.put Australia on the same page as the US. She described India as a
:07:48. > :07:58.close trading partner and said that lifting this ban would benefit
:07:58. > :07:59.
:07:59. > :08:03.Australia economic link, creating jobs and bringing growth. The
:08:03. > :08:12.annual conference of the Australian Labour Party will be held next
:08:12. > :08:18.month in Sydney. China Construction Bank say that the Bank of America's
:08:18. > :08:25.plans to sell its shares will not affect performance. The Bank of
:08:25. > :08:33.America is planning to reduce its stake. It will sell 10. 4 billion
:08:33. > :08:40.shares, most of its remaining stake, for over $6 billion. Their chief
:08:40. > :08:45.executive of Deutsche Bank will end his reign. He has withdrawn his
:08:45. > :08:49.candidacy to become chairman of the bank. On shares in Tiger Airways
:08:49. > :08:56.fell today after it warned of a significant loss for the current
:08:56. > :09:04.financial year. It is suffering suspension of its operations in
:09:04. > :09:09.Australia. One of its main markets. The markets having a tough session
:09:09. > :09:16.today. It is the first day of losses for the Asian markets in
:09:16. > :09:19.three days was they have been riding on the wave of expectation
:09:19. > :09:26.because they make his new leadership in Greece and Italy.
:09:26. > :09:30.That was short lived. In Japan there were rumours and speculation
:09:30. > :09:36.that the Japanese government had intervened again and the currency
:09:36. > :09:44.market to bring down the strength of the yen. No news to confirm that
:09:44. > :09:51.has actually happened. Some of the big exporters out of Japan have