:00:04. > :00:14.Those are the latest headlines. Now it is time for World Business
:00:14. > :00:22.
:00:22. > :00:29.Here are the headlines: It the city of London braces itself as
:00:29. > :00:33.speculation grows that Bob Diamond were named chain officials who knew
:00:33. > :00:36.about the scandal. More bad press for the banks as the
:00:36. > :00:46.US electricity regulator investigates JP Morgan for
:00:46. > :00:51.
:00:51. > :00:55.potentially manipulating the energy Sparks are set to fly as former
:00:55. > :00:59.chief executive of Barclays is grilled by UK Members of Parliament
:00:59. > :01:02.is afternoon. Speculation is growing that Bob Diamond will name
:01:03. > :01:06.and shame officials who knew about the rate fixing scandal, including
:01:06. > :01:14.the Bank of England's deputy governor. Apart from producing
:01:14. > :01:17.verbal fireworks, what good is it meant to do?
:01:17. > :01:22.In a fractured session before a parliamentary committee last year,
:01:22. > :01:32.Bob Diamond told MPs the period for remorse and apology for banks is
:01:32. > :01:33.
:01:33. > :01:39.is summoning him back again. They will want to know how tradies could
:01:40. > :01:49.get away with it for over two years. He will hold up a mirror to the UK
:01:50. > :01:54.
:01:55. > :01:58.regulators and the politicians who presided over this mess. All this
:01:58. > :02:08.promises to be very entertaining viewing for people here in the city
:02:08. > :02:10.
:02:10. > :02:13.of London. What else is the inquiry meant to achieve? It plays into the
:02:13. > :02:19.hands of some people that think that all financial markets are a
:02:19. > :02:25.conspiracy. That is clearly not the case. We have enormous stock
:02:25. > :02:29.markets here in London. It is a very transparent financial market.
:02:29. > :02:33.If there is a way that this interest rate setting can be made
:02:33. > :02:40.much more transparent, that they be a good thing coming out of the
:02:40. > :02:47.scandal. The inquiry will also be keen to hear that the deputy
:02:47. > :02:51.governor of the Bank of England secretly advised the rate fixing.
:02:51. > :03:01.It may shift the focus of Parliament's inquiry onto the role
:03:01. > :03:01.
:03:01. > :03:05.of the central bag. As was highlighted at the end of
:03:05. > :03:12.that report, Barclays up the MTA leader be yesterday by publishing
:03:12. > :03:16.these documents saying the Bank of England deputy governor may have
:03:16. > :03:22.known about what was going on. How do you think that will be played at
:03:22. > :03:26.this inquiry? I don't know it. It may be that he is on the attack. It
:03:26. > :03:30.would be very foolish to do so. The whole thing sounds like dealing
:03:30. > :03:35.with small children. First of all they say they do not know anything
:03:35. > :03:40.about it, then they blame someone else, but then you end up saying
:03:41. > :03:46.that teacher told them it was OK. What you say is kind of hell it is.
:03:46. > :03:50.At the end of the day what they did is wrong. It had to pay huge fines.
:03:50. > :04:00.It is the blame game. Bobble the implication speed for the
:04:00. > :04:01.
:04:01. > :04:07.regulators and those whom they have they no that it? -- of what will
:04:07. > :04:12.the implication be. The first the need to do well to be changing the
:04:12. > :04:18.behaviour at Barclays. That is the key thing. A better and different
:04:18. > :04:26.regulation can help with that. we get to the bottom of this and we
:04:26. > :04:33.don't necessarily know we will do you think we will actually see
:04:33. > :04:39.these individuals prosecuted or given some sort of slap on the
:04:39. > :04:46.rest? I hope that some individuals will be prosecuted in the end. The
:04:46. > :04:49.real problem is not who knew what and when be, the real problem is
:04:49. > :04:59.the culture of organisations in which this kind of behaviour goes
:04:59. > :04:59.
:04:59. > :05:03.on. What we need to do is start addressing that culture. In terms
:05:03. > :05:13.of addressing it, do you think we will see serious changes in the
:05:13. > :05:14.
:05:14. > :05:20.organisation's? I think that is where we should be going. There are
:05:20. > :05:25.two reasons for doing that. One is that you need to stop government
:05:25. > :05:34.guaranteeing speculative trading activity. The other is the trading
:05:34. > :05:40.of cultures and painting do not mix. It -- banking.
:05:40. > :05:48.We will be across the events today on the BBC. Let's look at another
:05:48. > :05:50.bank in the US. More pressure is on the giant, JP Morgan. It is under
:05:50. > :05:54.investigation by Americas Electricity Regulation for possible
:05:54. > :05:59.manipulation of the energy market in California and the Midwest
:05:59. > :06:09.region. The commission is saying the bait's bidding practices made
:06:09. > :06:09.
:06:09. > :06:13.inflated electricity prices go further up.
:06:13. > :06:19.JP Morgan is out of the news. This time it is being investigated for
:06:19. > :06:24.its role in the power markets of California and the Midwest. The
:06:24. > :06:30.Federal Energy regulatory Commission is looking at whether it
:06:30. > :06:36.manipulated markets to the tune of $73 million. Since the energy
:06:36. > :06:43.crisis in California back in 2000- 2001, regulators had been paying a
:06:43. > :06:47.lot more attention to the wholesale electricity market. That was when
:06:47. > :06:51.traders big supplies and caused blackouts. In a statement in
:06:51. > :06:57.response to this probe, JP Morgan said, we believe we have complied
:06:57. > :07:00.with all respects with the law. This comes at a very busy time for
:07:00. > :07:09.JP Morgan, which is under scrutiny by authorities because of its
:07:09. > :07:13.admission it had lost $2 billion on bad trade.
:07:13. > :07:18.The head of the IMF has said she is not in the mood to renegotiate the
:07:18. > :07:22.terms of the Greek bale-out. Her remarks come as a vicious visit
:07:22. > :07:25.Greece to assess the country's financial progress. The Prime
:07:25. > :07:32.Minister came to power after pledging to renegotiate parts of
:07:32. > :07:40.the rescue package. To she has been fined $87 million
:07:40. > :07:48.for conspiring to fix prices of LCD panels in the United States. --
:07:48. > :07:52.Toshiba. They had denied the charges and will make the necessary
:07:52. > :07:54.legal action to overturn the verdict.
:07:54. > :07:58.Manchester United has announced plans to bestow on the New York
:07:58. > :08:08.Stock Exchange. It hopes to generate $100 million in an attempt
:08:08. > :08:13.
:08:13. > :08:18.The French Prime Minister has called on people to rally behind
:08:18. > :08:22.the Government to tackle a crushing debt crisis as a revised budget
:08:22. > :08:27.goes to cabinet today. France is defined 43 billion euros this year
:08:27. > :08:32.and next year according to the National Audit Office. The super
:08:32. > :08:37.rich are being targeted, with those earning more than one million euros
:08:37. > :08:47.being taxed 75%. People on lower incomes will be spared the brunt of
:08:47. > :08:48.
:08:48. > :08:54.budget cuts. Can France make it is that up? -- en France make its
:08:54. > :09:04.numbers add up? This sounds like a familiar tale. Any government with
:09:04. > :09:05.
:09:05. > :09:13.a nasty situation to figure out. Many are questioning their France
:09:13. > :09:17.is going with their plans to reduce the budget deficit. So far, so
:09:17. > :09:22.clear. The Government is not doing anything different from what it
:09:22. > :09:26.announced it would do. The French President had already announced
:09:26. > :09:30.that he would increase taxes for the wealthy and that he would cut
:09:30. > :09:38.the number of civil servants. That he has not changed. What you are
:09:38. > :09:48.seeing today and what you saw yesterday was precisely that.
:09:48. > :09:53.problem is by increasing the tax on the super rich, the black hole is
:09:53. > :10:00.40 billion euros and above. He has to be reduced significantly. How
:10:00. > :10:08.will they do that? It will be very difficult. I think that they were
:10:08. > :10:12.not fully achieve it. What they can do is, during the implementation,
:10:12. > :10:16.they would do something similar to what the Tory government would do.
:10:16. > :10:20.The government will give the biggest of the ministry's and tell
:10:20. > :10:26.them what to cut. In the process of implementing, there may be many
:10:26. > :10:36.ways of actually reducing or watering down the government's
:10:36. > :10:36.
:10:36. > :10:40.claims and blaming it on the implementation. The government can
:10:40. > :10:47.say they tried to make it happen, but the problem was not on their