:00:02. > :00:12.the Eurozone. Now for the latest financial news with World Business
:00:12. > :00:23.
:00:23. > :00:28.Will they or won't they? The German court rules on whether gemmy will
:00:28. > :00:33.contribute to the European bail-out fund. Apple get set to launch the
:00:33. > :00:43.new iPhone but will the new handset fare as well as the old one in the
:00:43. > :00:45.
:00:45. > :00:51.crowded market? It's a crucial day in the battle to tackle the
:00:51. > :00:54.Eurozone crisis. Germany's Constitutional Court will rule on
:00:54. > :00:57.the legality of Germany paying its 27% share of the 700 billion euro
:00:57. > :01:02.European Stability Mechanism -- that's the new rescue fund for
:01:02. > :01:05.Eurozone countries that need a financial bailout. If the court
:01:05. > :01:07.finds in favour of the legal challenge, it will plunge the
:01:08. > :01:13.eurozone deeper into turmoil by casting doubt over it's ability to
:01:13. > :01:16.rescue its heavily indebted southern states. The main critics
:01:16. > :01:20.are from Southern Germany where a high proportion of business taxes
:01:20. > :01:29.will go to fund the ESM. Our Europe correspondent Nigel Cassidy has
:01:29. > :01:36.been to Nuremberg to weigh up the mood there. Summer is over and
:01:36. > :01:44.Christmas is coming. Three shifts a day here mixing it up. This is the
:01:44. > :01:50.favourite gingerbread cake. From July to January, the family turns
:01:50. > :01:55.out 5 million cakes every day. They cover them with chocolate and nuts.
:01:56. > :02:05.Mainly German people have a taste from this product. They have a lot
:02:06. > :02:07.
:02:07. > :02:12.again. These are traditional products, in fact the German
:02:12. > :02:17.businesses are against the German stability mechanisms. He be sacked
:02:17. > :02:25.as a focus for people against more European rescue. If his case is
:02:25. > :02:29.lost, it will take the heat out of the European bail-out. They want to
:02:29. > :02:35.keep the euro says the managing director but the patients over
:02:35. > :02:39.subsidising Greece has worn thin. They're missing the general
:02:40. > :02:44.structure. As long as they don't have that, these necessary
:02:44. > :02:49.structures, they will have more problems. If you give them more
:02:49. > :02:54.money, you need to regulate that. We cannot just let them take the
:02:54. > :03:00.money and do what they want. At the University, we hear more about the
:03:00. > :03:05.objections. This is the economic adviser to the Finance Minister.
:03:05. > :03:11.The Coalition thinks that Germany should stop helping the other
:03:11. > :03:16.European countries with their debt problems and the rescue fund is no
:03:16. > :03:20.solution to that problem. It may even aggravate the problems for the
:03:20. > :03:25.future to provide a disincentive to other governments. The expectation
:03:25. > :03:30.is that the court will not rule against the bail-out spending but
:03:30. > :03:35.even the threat is keeping the market on tenterhooks and keeping
:03:35. > :03:39.the lights of the Spanish bond yields sky-high. Whatever way it
:03:39. > :03:46.goes, with elections pending, Conservatives are likely to
:03:46. > :03:52.maintain a hard line against the eurozone debt sinners. Let's stay
:03:52. > :03:54.in Europe and the banks will be focusing later when the President
:03:54. > :03:58.of the European Union announces plans to bring them closer together.
:03:58. > :04:03.They want to make sure the banks are properly supervise so they
:04:03. > :04:07.won't get into financial difficulty. They won't need more bail-outs. The
:04:07. > :04:15.plan as many critics. Many argue that the bank would have
:04:15. > :04:22.unprecedented power of regulation and undermine national powers. This
:04:22. > :04:31.is something that they have spoken about for some time. It's no big
:04:31. > :04:36.surprise. What's your take? George Osborne is left between a rock and
:04:36. > :04:41.hard place after what happened a few years ago in Lisbon. Obviously,
:04:41. > :04:45.the Chancellor was obliged to go along with the basic principle of
:04:45. > :04:50.the banking union. When you consider what this requires in
:04:50. > :04:54.Europe, a huge sovereign debt, it's not a bad thing. We need to
:04:54. > :04:59.remember that in context, all of these wonderful places like
:04:59. > :05:05.Frankfurt, Madrid, Brussels, Rome, financially they're just Mickey
:05:05. > :05:11.Mouse compared to London. London has a huge amount to lose. It's a
:05:11. > :05:16.banking centre. On a huge critique of global regulation. It's nonsense.
:05:16. > :05:21.Because the criteria for each country is completely different. In
:05:21. > :05:26.the UK, mortgage and that mortgage lending is very important. On the
:05:26. > :05:29.continent it's irrelevant. How can you possibly stack that up against
:05:29. > :05:33.with the same regulations controlling that by a governing
:05:33. > :05:37.body when they don't understand the country of your business.
:05:37. > :05:43.Presumably, if the bank is in good shape with good capital, not on the
:05:43. > :05:47.brink of collapse, and they will be left alone by the supervisory body?
:05:47. > :05:54.It's a big if. When you look at what's going on around you. In
:05:54. > :05:59.Germany, even Germany with a strong economy, far too many bad banks.
:05:59. > :06:05.What seemed contraction in Spain. Too many bad banks and you cannot
:06:05. > :06:13.control them. In Italy, a lot of little banks which need to close
:06:13. > :06:16.down. Big is beautiful. They need to do with their own issues at home.
:06:16. > :06:20.We have a role Bank of Scotland issues and Lloyds Bank issues but
:06:20. > :06:29.the criteria heres a very different. London is an international centre
:06:29. > :06:34.of business. You argue there needs to be a eurozone? A regulation?
:06:34. > :06:41.I will say hang on your in the EU but we are not in the eurozone.
:06:41. > :06:45.That's the important thing. Europe has a massive debt crisis. It will
:06:45. > :06:50.affect things for a decade. I don't think the UK in their interest is
:06:50. > :06:57.wanting to be dragged down by other legislation. We will talk through
:06:57. > :07:02.the newspaper headlines later. We'll talk more about that no doubt.
:07:02. > :07:08.Apple will dominate headlines again expected to unveil the latest
:07:08. > :07:13.iPhone. It's called the iPhone five seen as the biggest ever launched
:07:13. > :07:16.and does a lot riding on this with sales of the iPhone accounting for
:07:16. > :07:23.half the Apple Revenue and after a series of disputes with rivals
:07:23. > :07:29.competition is tougher so can they top the dominance? We report from
:07:29. > :07:34.New York. Chris O'Brien is the kind of customer at all does not need to
:07:34. > :07:39.win. He is a loyal iPhone are used up. He does not know how much this
:07:39. > :07:44.new phone will cost off what it will do, but he wants one as soon
:07:45. > :07:52.as possible. I expect a better bone, faster, bigger screen, that's what
:07:52. > :08:00.I want. Lightweight, I think the track record from Apple with their
:08:01. > :08:05.products, gives me faith. That kind of loyalty means Apple's
:08:05. > :08:10.expectations is 10 million new devices in that first week. Many of
:08:10. > :08:15.those will be to existing users to upgrade their handsets. And the
:08:15. > :08:23.challenges to get more new ones. The market is competitive with
:08:23. > :08:29.rivals gaining ground. Samsung is fighting back with its galaxy. Last
:08:29. > :08:34.week, Nokia launched a new device after teaming up with Microsoft.
:08:34. > :08:38.Should at all be worried? Some say it its legal disputes say it is
:08:38. > :08:43.worried and it has pursued the court case against Samsung. It was
:08:43. > :08:48.found guilty of copying the technology and paid out billions of
:08:48. > :08:55.dollars of compensation. The rivals now need to work harder to come up
:08:55. > :08:58.with other ideas. Analysts say that will benefit the consumer. It you
:08:58. > :09:03.want to the Apple you need something totally different. Tries
:09:03. > :09:09.to beat Apple at what it is doing to us is the wrong strategy.
:09:09. > :09:14.Samsung needs to try to go a different direction and offer the
:09:14. > :09:20.consumer a unique choice. Would that be enough to tempt customers
:09:20. > :09:25.away from Apple? Unlikely for now but mobile phone makers mean
:09:25. > :09:33.getting to the top takes a lot of hard work. Staying there it takes
:09:33. > :09:40.even more. The boss of Facebook spoke for the first time about the
:09:40. > :09:44.drop in market value. Shares halved since it floated in May. He spoke
:09:44. > :09:51.in South and San Francisco and Mark Zukerberg explain this as
:09:51. > :09:55.disappointing. The performance has not been that disappointing. We
:09:55. > :09:59.care about the shareholders. The commitment we made is that we will
:09:59. > :10:05.execute the mission to make the world more connected and we will do
:10:05. > :10:13.the things we think will build value in the long-term. The market