14/09/2012 World Business Report


14/09/2012

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for more than a decade. Your chance to catch up with all

:00:18.:00:25.

the latest in the world of business and money. Here are the headlines:

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the Federal Reserve says it will put a $43 billion per month in the

:00:30.:00:35.

US economy for as long as it takes. Asian markets rise after the

:00:35.:00:40.

stimulus plans by the Federal Reserve.

:00:40.:00:48.

Arguments brewing over Europe's banking reforms as London fears it

:00:48.:00:56.

could be frozen out by Brussels. We will catch up with Singapore

:00:57.:01:01.

very shortly, but first, and vicious, bold, aggressive and

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political. Just some of the words being used to describe Ben

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Bernanke's massive new stimulus plan. It is a good round of

:01:15.:01:22.

quantitative easing. It has seen the Fed pump $43 billion per month.

:01:22.:01:27.

They will purchase mortgage debt until the outlook for the labour

:01:27.:01:33.

market improve substantially. The main indices on Wall Street rose to

:01:33.:01:39.

their highest since 2007. But not everyone felt that love. One top

:01:39.:01:43.

Republican called it a moved to help President Obama in November's

:01:43.:01:51.

collection. We want to see more jobs, lower unemployment, a

:01:51.:01:58.

stronger economy that can cause the improvement to be sustained. We are

:01:58.:02:07.

not looking for her a temporary solution. As our New York Reporter

:02:07.:02:15.

explains, it is the commitment to sustain it that has surprised the

:02:15.:02:22.

market. It was widely anticipated. This latest commitment is open

:02:22.:02:27.

ended. The Fed says it will produce $43 billion worth of bonds every

:02:27.:02:34.

month until the economy is back on track. But how will that be

:02:34.:02:39.

determined? Growth is well indicated. The economy is growing

:02:39.:02:44.

at 1.7% per year. The housing market remains weak and

:02:44.:02:51.

unemployment remains stubborn. Last month the US economy created far

:02:51.:02:56.

fewer jobs than it needed just to keep up with population growth. The

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Fed also said it would keep until well into 2015. So those few

:03:08.:03:16.

moves will provide a boost to the Obama White House. Ben Bernanke

:03:16.:03:21.

also called on policy makers to play their part and said the Fed

:03:21.:03:27.

alone could not solve America's economic problems. He called on

:03:27.:03:31.

policymakers and politicians still debating the country's spending

:03:31.:03:36.

plans to act together. He said that decisive action could be the only

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way to get America's economy back on track.

:03:43.:03:48.

Time to see how the Asian markets are taking this news. I have been

:03:48.:03:53.

looking at the Asian market for it. All very positive. It seems the

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enthusiasm is spreading across the region.

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Indeed it is. Markets are all rising in this region. Investors

:04:04.:04:11.

are hoping the measures will revive growth in the US economy. It is a

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key market for Asian exports. There have been fears about the weak

:04:19.:04:29.
:04:29.:04:31.

recovery. Naturally, Asian stocks are posting a good deal of gains.

:04:31.:04:40.

Gains of over 2% for the Nikkei in Japan. It is looking at stocks that

:04:40.:04:49.

are doing particularly well, it is the exporters mainly. Financial

:04:49.:04:54.

shares are also doing well. A more positive there. But it is a

:04:54.:05:00.

funny old story. There is a bit of a flipside to that. There are

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concerns across Asia about all of this.

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You can't ignore the slowdown in China's economy. That is the

:05:09.:05:18.

world's second largest. It seems to be top most in the minds of most of

:05:18.:05:24.

the people I have spoken to. It is putting something of a day and

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we're on long-term market sentiment. -- debonair. They want to try and

:05:33.:05:41.

stimulate a fresh wave of crows. -- Greece. China has cut its interest

:05:41.:05:44.

rates twice in June to try and bring down borrowing costs for

:05:44.:05:50.

businesses. They also are no ring the amount of money that businesses

:05:50.:06:00.

need to keep in disarray. -- Loring. That is the update from Singapore.

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Moving on. Finance ministers will gather in Cyprus to begin the task

:06:05.:06:11.

of overhauling the way things are regulated in Europe. The plan was

:06:11.:06:15.

put forward by the European Central Bank to be put at the helm of a

:06:15.:06:24.

super-regulator for all of the euro currency zone. The countdown has

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begun to try and get the details in place by the new year. But there is

:06:30.:06:40.
:06:40.:06:41.

a lot to disagree about. Holders of the EU presidency hope

:06:41.:06:48.

to benefit from the European Central Bank reforms. It could open

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the door to cash going directed to troubled banks. But it would have

:06:54.:07:01.

to be voted vast powers to close in monitor up to 6,000 vendors. --

:07:01.:07:11.
:07:11.:07:11.

closely. It it's alm support. -- gets almost universal

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support. Some countries like the UK have not adopted the European

:07:16.:07:20.

single currency. They could still see their banks police to,

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paralysed and even closed down by the new regulators. This is

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worrying many in the City of London. Their concerns are being raised by

:07:34.:07:41.

British politicians. repercussions of it, the way that

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the European Central Bank will make to late with the European lending

:07:46.:07:51.

authority and the way in which future guidelines are fixed creates

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a problem for those not in the eurozone. It is tantamount to a

:07:58.:08:04.

block vote that will rule the day. The mechanisms that have been put

:08:04.:08:09.

in place cone not sufficient safeguards in view of those that

:08:09.:08:14.

are not in the eurozone. They could to fire in the view that of those

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that are in the eurozone. -- Goto far. In Germany, the focus is

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saving balance with their strong links to government. Reforms of the

:08:26.:08:36.
:08:36.:08:37.

difficult for part of the government to gain access. If the

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banking regulation will change it would be more difficult for them to

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get access to credit. It could be more costly. Monetary union in

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Europe needs its banking union. But the devil will be in the details.

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You can hear more about the banking union on BBC Dwarf News on Saturday

:09:02.:09:09.

and Sunday. The race is officially on to find a

:09:09.:09:17.

replacement for Mervyn King when he retires next year. They are calling

:09:17.:09:21.

for a person of a undisputed integrity and standing. That

:09:21.:09:25.

appears to rule out any senior bankers here, tainted by the

:09:25.:09:35.
:09:35.:09:39.

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