:00:03. > :00:07.allegations of a sex gain will involving members of his security
:00:07. > :00:17.force and prostitutes. Time for the latest money news,
:00:17. > :00:17.
:00:17. > :00:24.here is World Business Report. A warm welcome with World Business
:00:24. > :00:28.Report. The headlines: The race for the biggest job in fighting poverty.
:00:28. > :00:34.The new head of the World Bank will Is
:00:34. > :00:39.Is the crisis in Europe reigniting? Nicolas Sarkozy calls on the
:00:39. > :00:49.European Central Bank to do more to China
:00:49. > :00:53.
:00:53. > :00:58.China widens the trading area of trade with the West.
:00:58. > :01:05.institu institution is about to reveal its
:01:05. > :01:11.new leader. The World Bank's his successor is expected to be
:01:11. > :01:19.announced today. The contest is between the American candidate or
:01:19. > :01:23.the Nigerian Finance Minister. A third candidate pulled out on
:01:23. > :01:29.Friday. It is the first time in the bank's history that candidates
:01:29. > :01:30.other than a US appointee have been considered.
:01:30. > :01:35.This is Obama has narack
:01:35. > :01:40.Obama has nominated to head the organisation
:01:40. > :01:43.organisation that a fight poverty by giving out large-scale loans. He
:01:43. > :01:48.is a highly regarded Korean American health experts. But
:01:48. > :01:58.critics say it is time for the US to end its unique power to d
:01:58. > :02:05.World Bank's chief. The process better reflected across the 187
:02:05. > :02:11.Assuming th the watchword assumption at the
:02:11. > :02:16.moment, he can certainly acquire legitimacy once in office. It will
:02:16. > :02:24.be his actithat matter. The reality is that it
:02:24. > :02:28.confident as we would be if the entire process were more open and
:02:28. > :02:34.transparent. There has been some measure of
:02:35. > :02:43.the US nominee faces rivals. Developing nations are back in
:02:43. > :02:48.Nigeria's f Nigeria's f most well-qualified candidate.
:02:48. > :02:58.While the former Colombian finance minister was a third contender
:02:58. > :02:59.
:02:59. > :03:03.accepts tha tradition of a European, an
:03:03. > :03:11.American, leading the World Bank, will have to be broken down. The
:03:11. > :03:14.question is - who moves first? Now to
:03:14. > :03:21.to relinquish control, because we are in an election year and
:03:21. > :03:26.little room to manoeuvre. Competition to become the 12th
:03:26. > :03:30.President of the World Bank has been more intense than ever.
:03:30. > :03:36.Despite the growing power and boys of China, India and other emerging
:03:36. > :03:43.nations, it looks as if the dominance of the US remains --
:03:44. > :03:52.despite the growing voice. In China, the daily trading range
:03:52. > :04:02.of the yuan has been doubled. To Singapore. Tel us more about the
:04:02. > :04:03.
:04:03. > :04:08.yuan on the move? It is on the move indeed. It has
:04:08. > :04:13.moved 0.5% from its mid-point at a price, which is set every day by
:04:13. > :04:16.the People's Bank of China. This was announced in English,
:04:16. > :04:21.suggesting suggesting it was targeting a
:04:21. > :04:24.foreign audience. China has been under pressure to allow the yuan to
:04:24. > :04:27.appreciate because nations like the United States and Germany believe
:04:28. > :04:35.that China keeps the yuan artificially low to boost its
:04:35. > :04:45.exports. This gives it an unfair trading advantage. The US has
:04:45. > :04:46.
:04:46. > :04:54.welcomed this initiative by the that if implemented properly, it
:04:54. > :04:57.allows... Positive influence for the rebalancing of the Chinese
:04:57. > :05:00.economy. Tell us about the timing of th
:05:00. > :05:06.move? move? There is a lot of discussion
:05:06. > :05:11.as to why they did it today. That's right. Two currency analysts
:05:11. > :05:20.I spoke to no surprise that this was imposed
:05:20. > :05:26.today. They said it was a long hike minimal impact on the dollar
:05:26. > :05:30.Asian currencies. Foreign exchange strategists are forecasting that
:05:30. > :05:39.the currency will appreciate to about 6.2 by the end of the year
:05:39. > :05:46.from its current level of 6.3. This is another step in liberalising the
:05:46. > :05:51.capital account of China. The French president Nicolas
:05:51. > :05:52.Central Bank to do more to promote economic growth in the region. He
:05:52. > :05:54.was speaking at an on Sunday a
:05:55. > :05:59.on Sunday a week
:05:59. > :06:03.week in the eurozone. On Friday, bank shares in both Europe and the
:06:03. > :06:07.United States fell sharply and the interest rates on Spain's ten-year
:06:07. > :06:10.government bonds came close to hitting 6%. Investors are worried
:06:10. > :06:13.that European Union leaders have imposed to rapid budget cuts on its
:06:13. > :06:23.members, stifling growth, whic badly needed to get the recovery
:06:23. > :06:26.
:06:26. > :06:30.- one of the things he is talking about is perhaps changing the ECB's
:06:30. > :06:38.remit so what is not just watching inflation but trying to do
:06:38. > :06:43.something about growth, like in the likely outcome of the current
:06:43. > :06:46.escalation that we face in France. Nicolas Sarkozy is lagging behind
:06:46. > :06:52.in the polls, he has to come up the
:06:52. > :06:58.the issue of jobs, for example, which is very pressing in France.
:06:58. > :07:02.Turning on ECB in order to have somebody to blame is not
:07:02. > :07:06.inappropriate for somebody who suggested
:07:06. > :07:11.suggested that the ECB's role be expanded towards growth and
:07:11. > :07:14.innovation. Do you think where we are now with the are his own crisis
:07:14. > :07:18.and some of the bigger economies like Spain and Italy looking very
:07:18. > :07:25.dodgy, do you think that is a ballot point? The ECB is bending
:07:25. > :07:31.over backwards to keep interest rates low and to keep banks afloat.
:07:31. > :07:38.government bond markets. None of that has really been written down
:07:38. > :07:42.in the treaty, the foundation for the ECB. There have also been bail-
:07:42. > :07:45.three three of them now. That is
:07:45. > :07:49.explicitly ruled out in the foundation document. We have moved
:07:49. > :07:56.a long way from what was agreed in the 90s with the signature of
:07:56. > :08:06.what the ECB to become a tool for politicians. How concerned are you
:08:06. > :08:06.
:08:06. > :08:10.about where we are at the moment. The Spanish politician is heading
:08:10. > :08:15.over to plead with the ECB now to you?
:08:15. > :08:23.you? It is a challenging situation, again. We are not back to where we
:08:23. > :08:33.were last year. It is likely that the market will test us again. The
:08:33. > :08:37.kind of intervention by the ECB. Very briefly comedy thing Spain
:08:37. > :08:47.will be bailed out? Spain will probably, at some stage early next
:08:47. > :08:48.
:08:48. > :08:51.year it or -- next year or late this year, require a package. It is
:08:51. > :08:55.difficult to see them getting through this without some help from
:08:55. > :08:59.somebody. I don't think the ECB alone would like to be that
:08:59. > :09:02.somebody. Thank you for your perspective.
:09:02. > :09:12.The markets are reflecting a real concern out there again today. We
:09:12. > :09:13.
:09:13. > :09:18.will look at those later on. Let's look at some other business
:09:18. > :09:28.news: Google has been accused of copyright infringement of software
:09:28. > :09:29.
:09:29. > :09:32.used in the Android operating The American banks in the group
:09:32. > :09:42.reports how much money it made in the first three months of this year
:09:42. > :09:43.
:09:43. > :09:46.it later today. -- city group. It is one of the few banks to fail the
:09:46. > :09:49.stress test passed out by the American Central Bank to see
:09:49. > :09:54.whether it could survive another financial shock.