16/04/2012 World Business Report

allegations of a sex gain will involving members of his security

force and prostitutes. Time for the latest money news,

here is World Business Report. A warm welcome with World Business

Report. The headlines: The race for the biggest job in fighting poverty.

The new head of the World Bank will Is

Is the crisis in Europe reigniting? Nicolas Sarkozy calls on the

European Central Bank to do more to China

China widens the trading area of trade with the West.

institu institution is about to reveal its

new leader. The World Bank's his successor is expected to be

announced today. The contest is between the American candidate or

the Nigerian Finance Minister. A third candidate pulled out on

Friday. It is the first time in the bank's history that candidates

other than a US appointee have been considered.

This is Obama has narack

Obama has nominated to head the organisation

organisation that a fight poverty by giving out large-scale loans. He

is a highly regarded Korean American health experts. But

critics say it is time for the US to end its unique power to d

World Bank's chief. The process better reflected across the 187

Assuming th the watchword assumption at the

moment, he can certainly acquire legitimacy once in office. It will

be his actithat matter. The reality is that it

confident as we would be if the entire process were more open and

transparent. There has been some measure of

the US nominee faces rivals. Developing nations are back in

Nigeria's f Nigeria's f most well-qualified candidate.

While the former Colombian finance minister was a third contender

accepts tha tradition of a European, an

American, leading the World Bank, will have to be broken down. The

question is - who moves first? Now to

to relinquish control, because we are in an election year and

little room to manoeuvre. Competition to become the 12th

President of the World Bank has been more intense than ever.

Despite the growing power and boys of China, India and other emerging

nations, it looks as if the dominance of the US remains --

despite the growing voice. In China, the daily trading range

of the yuan has been doubled. To Singapore. Tel us more about the

yuan on the move? It is on the move indeed. It has

moved 0.5% from its mid-point at a price, which is set every day by

the People's Bank of China. This was announced in English,

suggesting suggesting it was targeting a

foreign audience. China has been under pressure to allow the yuan to

appreciate because nations like the United States and Germany believe

that China keeps the yuan artificially low to boost its

exports. This gives it an unfair trading advantage. The US has

welcomed this initiative by the that if implemented properly, it

allows... Positive influence for the rebalancing of the Chinese

economy. Tell us about the timing of th

move? move? There is a lot of discussion

as to why they did it today. That's right. Two currency analysts

I spoke to no surprise that this was imposed

today. They said it was a long hike minimal impact on the dollar

Asian currencies. Foreign exchange strategists are forecasting that

the currency will appreciate to about 6.2 by the end of the year

from its current level of 6.3. This is another step in liberalising the

capital account of China. The French president Nicolas

Central Bank to do more to promote economic growth in the region. He

was speaking at an on Sunday a

on Sunday a week

week in the eurozone. On Friday, bank shares in both Europe and the

United States fell sharply and the interest rates on Spain's ten-year

government bonds came close to hitting 6%. Investors are worried

that European Union leaders have imposed to rapid budget cuts on its

members, stifling growth, whic badly needed to get the recovery

- one of the things he is talking about is perhaps changing the ECB's

remit so what is not just watching inflation but trying to do

something about growth, like in the likely outcome of the current

escalation that we face in France. Nicolas Sarkozy is lagging behind

in the polls, he has to come up the

the issue of jobs, for example, which is very pressing in France.

Turning on ECB in order to have somebody to blame is not

inappropriate for somebody who suggested

suggested that the ECB's role be expanded towards growth and

innovation. Do you think where we are now with the are his own crisis

and some of the bigger economies like Spain and Italy looking very

dodgy, do you think that is a ballot point? The ECB is bending

over backwards to keep interest rates low and to keep banks afloat.

government bond markets. None of that has really been written down

in the treaty, the foundation for the ECB. There have also been bail-

three three of them now. That is

explicitly ruled out in the foundation document. We have moved

a long way from what was agreed in the 90s with the signature of

what the ECB to become a tool for politicians. How concerned are you

about where we are at the moment. The Spanish politician is heading

over to plead with the ECB now to you?

you? It is a challenging situation, again. We are not back to where we

were last year. It is likely that the market will test us again. The

kind of intervention by the ECB. Very briefly comedy thing Spain

will be bailed out? Spain will probably, at some stage early next

year it or -- next year or late this year, require a package. It is

difficult to see them getting through this without some help from

somebody. I don't think the ECB alone would like to be that

somebody. Thank you for your perspective.

The markets are reflecting a real concern out there again today. We

will look at those later on. Let's look at some other business

news: Google has been accused of copyright infringement of software

used in the Android operating The American banks in the group

reports how much money it made in the first three months of this year

it later today. -- city group. It is one of the few banks to fail the

stress test passed out by the American Central Bank to see

whether it could survive another financial shock.