:00:17. > :00:21.-- and Aung San Suu Kyi. Time for the financial news.
:00:21. > :00:27.Europe fails to find one trillion euros needed for its emergency
:00:27. > :00:37.bail-out fund. And disruption expected today at Heathrow. How
:00:37. > :00:38.
:00:38. > :00:45.will the airport and airlines react. An Australian inquired if this is
:00:45. > :00:50.the ban on sales of at Samsung a galaxy it in the country it.
:00:50. > :00:54.At least one trillion euros when have perhaps been and not to help
:00:54. > :00:59.you have out of its debt crisis. But finance ministers have admitted
:00:59. > :01:03.that the bail-out fund would not be able to arrive at that amount of
:01:03. > :01:07.money. Advance she's met late into the evening and agree that the
:01:07. > :01:17.bailout fund would ensure investors in European government debt against
:01:17. > :01:22.
:01:22. > :01:27.losses. The idea was that he would boost confidence in European debt.
:01:27. > :01:32.First of all, your reaction to the news that there's not going to be
:01:32. > :01:37.that one trillion euros. Perhaps you were not expecting it anyway?
:01:37. > :01:42.From the outset it was clear that the one trillion was always a bit
:01:42. > :01:48.far fetched. The fund was set up with the number of countries
:01:48. > :01:55.guaranteeing and pledging a lot of money. That was going to be
:01:55. > :02:00.leveraged up to 100,000 billion euros. Countries like Spain were
:02:00. > :02:08.guaranteed fund. That would be used to support these countries
:02:08. > :02:13.themselves. This was always going to be very difficult. In the
:02:13. > :02:22.meantime my that circumstances have deteriorated. Teams to be dead in
:02:22. > :02:27.The ministers did call on the IMF to give more help but I suspect the
:02:27. > :02:30.United States might have something to say about that? Not just the
:02:30. > :02:36.United States, let's not forget that emerging markets in the past
:02:36. > :02:41.were like the most recent tide of clients for the IMF. If I can put
:02:41. > :02:45.it like that. It seems that although the IMF's firepower seems
:02:45. > :02:50.to be channelled towards Europe. I think the emerging markets like
:02:50. > :02:54.Brazil or China will asked for a lot more voting power in the IMF in
:02:54. > :02:59.return. That is what Europe will have to accept, it cannot come up
:02:59. > :03:03.with solutions itself and the IMF might have to step in. That will
:03:03. > :03:13.come at the expense of Europe losing power. One area that
:03:13. > :03:15.
:03:15. > :03:25.ministers did agree on was allowing the funds to lose 20 or 30%, will
:03:25. > :03:30.the markets will come that news? There was some doubt as to the
:03:30. > :03:36.credibility, the 20-30%, it will insure the first 20 per-30% loss on
:03:36. > :03:41.any government bond, should that country default, but the markets
:03:41. > :03:46.realised if nobody defaults by 20 or 30%, look at Greece, who had 50%.
:03:46. > :03:50.Markets will quickly see through this. Ultimately Europe's need
:03:51. > :03:55.something more credible, something first that Germany fully backs.
:03:55. > :03:58.That has always been the problem in the past. Germany has always said
:03:58. > :04:02.they are going to come up with anything that will save the euro,
:04:02. > :04:06.they will do anything, only three weeks later not to come through on
:04:06. > :04:11.their promises. Whatever Europe comes up with, any kind of solution,
:04:11. > :04:18.if Germany is not backing it will not be credible to the markets.
:04:18. > :04:22.Severe disruption is expected at Europe's busiest airport, Heathrow,
:04:22. > :04:27.today as well as other airports. There will be delays at immigration
:04:28. > :04:33.due to a one day strike by staff, at the immigration desks, and they
:04:33. > :04:39.will not be operating. The AEA, which operates Heathrow, have
:04:39. > :04:47.warned that passengers could face delays of 12 hours. It has asked
:04:47. > :04:53.airlines to any Harthill airplanes due to arrive today. Cash to only
:04:53. > :04:57.half fill. British Airways and Virgin Atlantic have encouraged
:04:57. > :05:04.passengers to fly on another day. For more on the destruction I am
:05:04. > :05:14.joined by John Strickland, hello. - - destruction. It will not be a
:05:14. > :05:14.
:05:14. > :05:18.good day for passengers. The Flying Day is in its early stages, the
:05:18. > :05:21.queues are estimated to be three hours, but that is a nightmare.
:05:21. > :05:25.Some airlines have managed to persuade people to move to flights
:05:25. > :05:30.on other days and they estimate perhaps passion that flows are down
:05:30. > :05:34.25% on what we would expect on a normal day in November. The cost to
:05:34. > :05:39.the airlines is rising through all of this? It will do because
:05:39. > :05:43.although there may be space to move people as a midweek day in one of
:05:43. > :05:48.the lowest travel periods of the year, the fact the airport is fully
:05:48. > :05:51.constraint means if the back lock develops, depending on the skill
:05:51. > :05:57.level of the number of staff standing in, then it could be a
:05:57. > :06:04.situation where people could be delayed. If that does not happen,
:06:04. > :06:08.planes cannot be cleaned and reloaded. Other airplanes cannot
:06:08. > :06:13.come in and park then, so you do get a domino effect. Flights could
:06:13. > :06:16.be severely delayed or cancelled. Presumably these airlines are
:06:16. > :06:20.having to absorb the cost of passengers switching their flights
:06:20. > :06:25.to a different day? Absolutely, its seats are available it is easy
:06:25. > :06:29.enough to accommodate people, but on a quieter day, Heathrow loads
:06:29. > :06:33.are very high so it will be difficult to accommodate them and
:06:33. > :06:38.that could produce lost sales. you get a sense that the airlines
:06:38. > :06:41.are becoming frustrated with some of the problems at Heathrow? Is it
:06:41. > :06:46.because it is such an important European airport that they will put
:06:46. > :06:52.up with anything? To a large extent they do not have a choice because
:06:52. > :07:00.London has a pull as a key market in Europe. But aircraft are mobile
:07:00. > :07:06.assets, they can switch to other aircraft. Some airplanes have moved
:07:06. > :07:10.to London Gatwick because Heathrow is full. In some airlines, they can
:07:10. > :07:14.go to other parts of the world where they do not faze these
:07:14. > :07:18.constraints. John Strickland, thank you for joining us. Now let's talk
:07:18. > :07:22.about matters in Asia because the technology giants Apple and Samsung
:07:22. > :07:26.have been fighting a battle over their new tablets. Apple has
:07:26. > :07:30.accused Samsung of stealing its ideas and persuaded a court to
:07:30. > :07:35.block the sale of the galaxy computer in Australia. But there
:07:35. > :07:45.has been a new development, let's go to Rico in Asia, in the BBC
:07:45. > :07:55.Singapore office. Ring us up today. It has been a fierce fight about it
:07:55. > :07:55.
:07:55. > :08:00.is a victory sauce -- a victory for Samsung. Samsung won this round of
:08:00. > :08:05.its global battle with Apple on patents after a judge overturned
:08:05. > :08:13.the ban on the sale of Samsung tablets in the country. Earlier
:08:13. > :08:17.Apple had won an injunction against a technology giant accusing its are
:08:17. > :08:22.copying its touch-screen technology. Samsung will not be able to start
:08:22. > :08:26.selling it as a court granted an injunction on the order until
:08:26. > :08:31.Friday 2nd December. So from now until then, Sarah, the judge said
:08:31. > :08:36.Apple will be able to appeal it with the High Court if it wants to
:08:36. > :08:46.extend the stay. Currently Samsung is second largest components
:08:46. > :08:48.
:08:48. > :08:50.supplier for Apple. According to technology analysts, this is good
:08:50. > :08:54.news for Samsung Electronics because it will likely provide a
:08:54. > :09:01.big boost to the Korean conglomerate ahead of the Christmas
:09:01. > :09:05.shopping season. Thank you, Rico. One other story to tell you about.
:09:05. > :09:10.The credit worthiness of some of the world's biggest banks has been
:09:10. > :09:15.downgraded by the agent, Standard and Poor's. 15 international
:09:15. > :09:20.countries have had their ratings lowered. They say the move is due
:09:20. > :09:24.to a change in the way it rates the financial industry. I want to show
:09:24. > :09:28.you what has been happening as far as the markets are concerned.
:09:28. > :09:33.Trading of course in Asia has been under way and we have just slipped
:09:33. > :09:40.on in fact to the United States because, which were quite good
:09:40. > :09:43.considering there was a consumer confidence survey that helped