:00:02. > :00:12.of the drug. It is now time for World Business
:00:12. > :00:18.
:00:18. > :00:22.Locum two World Business Report. The headlines: Deadline day for the
:00:22. > :00:27.top job at the bold break. America's grip on the position is
:00:27. > :00:37.challenged by the developing world. A new budget airline bodgers in
:00:37. > :00:40.
:00:40. > :00:50.Japanese investigators searched the offices of the pension and
:00:50. > :00:54.
:00:54. > :00:58.Today is the deadline for applications for the top job at the
:00:58. > :01:01.World Bank. The US is leading up to the last moment to name its
:01:01. > :01:05.candidate. Traditionally the position has always gone to an
:01:06. > :01:15.American, but since its remit is to provide loans to the developing
:01:15. > :01:20.world, there had been growing calls The former Colombian Finance
:01:20. > :01:26.Minister has put his hat in the ring, with Latin America's backing.
:01:26. > :01:32.The Nigerian Finance Minister is expected to be put forward by South
:01:32. > :01:35.Africa. She was managing director at the bank until last year.
:01:35. > :01:39.An American economist and author says he has the support of several
:01:39. > :01:46.developing countries. Some say he is too liberal to win the backing
:01:46. > :01:50.of the White House. We are joined by the director of
:01:50. > :01:55.European -- director had the European Centre for political
:01:55. > :02:05.economies. There is enormous pressure to appoint someone outside
:02:05. > :02:07.
:02:07. > :02:12.the US. Yes. I think it is something that has been in the
:02:12. > :02:19.making for quite some time now. Developing countries as well as big
:02:19. > :02:24.emerging markets are calling the board a different type of selection
:02:24. > :02:30.process, where people do not carry American pass boat will be eligible
:02:30. > :02:34.for the post as well. It is pretty anachronistic to have this kind of
:02:35. > :02:42.as selection process we can only realistically look at candidates
:02:42. > :02:48.from one country to head up such a global institution. Which candidate
:02:48. > :02:52.giving stands the best judge of getting the job? -- chance. I think
:02:52. > :02:57.that remains to be seen. I beat the candidate the White House put
:02:57. > :03:00.forward is going to be the person who is going to be elected. I am
:03:00. > :03:04.pretty sure that the White House will put forward a named and would
:03:04. > :03:09.do so very soon. How strong a political appointment is this such
:03:09. > :03:13.that the US would be reluctant to lose control? After all, the
:03:13. > :03:19.current head is an American and the head of the IMF is European. No
:03:19. > :03:24.break with tradition there. That is right. Despite all assurances from
:03:24. > :03:30.both Europe and America that they want to change this type of
:03:30. > :03:35.selection system, they do not seem prepared to do it when the hard
:03:35. > :03:41.choice has to be made. Coming back to what you said, it is a very
:03:41. > :03:44.political post. It is political in two senses. This week in that
:03:44. > :03:48.countries are going to look for a candidate who has strong backing in
:03:48. > :03:51.their own political system. This is especially true in America, where
:03:51. > :03:58.they want someone to head the World Bank he will carry weight on
:03:58. > :04:02.Capitol Hill and can twist arms and pair of suede members of Congress
:04:02. > :04:11.to give money to the World Bank. -- persuade. They also want to have
:04:11. > :04:21.someone who has stature to be able to make a call to leaders around
:04:21. > :04:23.
:04:23. > :04:27.the world. They are looking for Other news now. Nike has seen its
:04:27. > :04:36.profits rise as demand for its shoes and clothes outstrips rising
:04:36. > :04:39.costs. Net income for the third quarter rose 7%. It also said that
:04:39. > :04:44.orders heading into spring were up to 15%, indicating strong sales
:04:44. > :04:50.will continue. The mobile is cutting 1,900 jobs
:04:50. > :04:55.across the country and says more cuts could come. The company is
:04:55. > :05:01.reducing costs by closing seven of its 24 call centres. It has been
:05:01. > :05:04.losing out to rivals and is trying to make itself more competitive.
:05:04. > :05:09.EU foreign ministers meet to discuss measures to enforce state
:05:09. > :05:13.oil embargo on Iran, which is due to take effect from July.
:05:13. > :05:21.Uncertainty over how the embargo will impact will supply has been
:05:21. > :05:26.driving up prices. A conference the scandal in Japan.
:05:26. > :05:35.The officers of a pension fund scandal -- company had been raided.
:05:35. > :05:39.What is the background? As you say, the officers have been searched by
:05:39. > :05:42.Japanese investigators. The company has been stripped of its
:05:42. > :05:46.registration as well, which effectively ends its ability to
:05:46. > :05:52.operate as an asset manager. Investigators essentially are
:05:52. > :05:58.trying to gauge the size of the problems at the pungent and money
:05:58. > :06:01.management firm. It is being investigated after it failed to
:06:01. > :06:06.account for $2.2 billion worth of client funds. The scandal is the
:06:06. > :06:10.latest in Japan. There have been calls for changes in corporate
:06:10. > :06:17.governance there. Late last year, the country were shot by the news
:06:17. > :06:21.that the Olympus had he been nearly $2 billion in losses for as long as
:06:21. > :06:29.20 years. Japanese authorities are saying they are going to start
:06:29. > :06:33.probing all other investment firms in the country as well. The company
:06:33. > :06:38.managed group pension funds bought more than 100 companies and
:06:38. > :06:45.according to reports, J but -- Japan's Labour Welfare Ministry
:06:45. > :06:50.have asked some ad for in pension funds to try to take steps to
:06:50. > :06:54.protect the assets they had entrusted to the company.
:06:54. > :06:57.This weekend sees the launch of a new low-cost airline in Europe. It
:06:57. > :07:01.has been founded by the International Airlines group to
:07:01. > :07:05.make up for the losses of its subsidiary Iberia. Spanish pilots
:07:05. > :07:10.have protested against the airline, saying it will lead to job and pay
:07:10. > :07:14.cuts. It is a brother bikie Lodge. Three
:07:14. > :07:17.days before take-off for Iberia Express, he could not buy a ticket
:07:18. > :07:20.on its website or find out its roots. Most of the publicity for
:07:20. > :07:25.the airline has come from the strikes against it by Iberia's
:07:25. > :07:29.pilots. They say staff transferred there will get pay cuts and many
:07:29. > :07:33.others will be sacked. International airlines group says
:07:33. > :07:42.it is creating the low-cost arm to recoup losses. Last year British
:07:42. > :07:48.are always -- British Airways made a large profit. Iberia lasted a
:07:48. > :07:52.vote. Iberia Express, with its more efficient ways of operating could
:07:52. > :07:57.make 100 million euros a year. is how other companies have done it.
:07:57. > :08:04.Get rid of all those legacy costs. All of that arcane build up that
:08:05. > :08:11.you get when you have companies of 30 or 40 years' history. Money can
:08:11. > :08:16.start afresh, you can get rid of these delicious -- immediately.
:08:16. > :08:22.Many airlines have started up low- cost subsidiaries only to abandon
:08:22. > :08:26.them when they fail to come up to expectations. British Airways it a
:08:26. > :08:31.memorable example. Will Iberia express be any different? Will it
:08:31. > :08:38.be able to compete with major rivals when it comes to costs and
:08:38. > :08:42.efficiency? It will be hard to make it until Liberia gives it more
:08:42. > :08:51.planes. It is starting with a fleet of Unley four. You have to get that
:08:51. > :09:00.critical mass in order to do it. You have to be up in the 4260
:09:00. > :09:04.aircraft. The company has Spain's ill
:09:04. > :09:14.be tight there are three good years and bad. Ryanair and easyJet have
:09:14. > :09:19.
:09:19. > :09:23.no homes. They cherry-picked Now they look at the markets, which
:09:23. > :09:29.are coming off a bit this week. The latest bit of news which has had
:09:29. > :09:32.been running to the hills is that Chinese manufacturing has been