:00:03. > :00:13.leaking documents of which appear to show better power struggles and
:00:13. > :00:17.
:00:17. > :00:25.corruption. Now it is time for Hello and a very warm welcome. The
:00:25. > :00:31.headlines: Spain's Prime Minister tries to convince the regions to
:00:31. > :00:41.stick with him on the austerity bath. New plans will be set out
:00:41. > :00:42.
:00:42. > :00:52.today and to top up on Europe's banks. -- Path. Doubts grow about
:00:52. > :00:54.
:00:54. > :00:58.Good to have you with us. The Prime Minister of Spain is facing a
:00:58. > :01:08.battle on all fronts from the markets, on the streets and now
:01:08. > :01:12.from the regional leaders. He is trying to convince them to follow
:01:12. > :01:19.his austerity regime. Catalonia's is threatening to hold a referendum
:01:19. > :01:25.to break away from Spain. -- Catalonia. Let's get more on the
:01:25. > :01:34.story. Catalonia's, with Barcelona as its capital, is an economic
:01:34. > :01:38.powerhouse in Spain. The Government needs a $6.5 billion bail-out to
:01:38. > :01:42.prevent imminent bankruptcy. Leaders are demanding that they,
:01:42. > :01:50.not central government should have the power to raise taxes in their
:01:50. > :02:00.region. Catalonia's wants the same regime as the Basque country. --
:02:00. > :02:03.
:02:03. > :02:07.Catalonia. If we manage to do that, things will be better. The Prime
:02:07. > :02:12.Minister wants to show Europe's Lulus and markets that he can
:02:12. > :02:20.master the financial problems. -- leaders. His government unveiled a
:02:20. > :02:26.budget but/he's spending by $50 billion. -- that slashes spending.
:02:26. > :02:29.Things like health care and public services are under threat. The
:02:29. > :02:35.austerity programme has not gained ground with the aid regional
:02:35. > :02:41.leaders. If you cannot bring them in line, the Budget will overshoot
:02:41. > :02:48.targets. This is what happened in 2011. It did so significantly, in
:02:48. > :02:55.part because of overspending by the regions. He must meet his targets.
:02:55. > :02:58.The problems with the regions have sat over the past few weeks.
:02:58. > :03:03.Interest rates on government borrowing have reached danger
:03:03. > :03:13.levels. It is likely Spain will need to request a bail-out from the
:03:13. > :03:14.
:03:14. > :03:19.EU. The separatist want to swap Madrid's demand for cuts for cuts
:03:19. > :03:24.imposed by Brussels. Fixing Europe's bangs is seen as the top
:03:24. > :03:30.priority if the bid is to find a way out of the debt crisis. New
:03:30. > :03:36.plans will be put forward today. They will no means be adopted. They
:03:36. > :03:40.will involve separating retail banking from riskier investment
:03:40. > :03:47.arms. It would have huge implications for companies like
:03:47. > :03:56.Deutsche Bank. Sources say that what eurozone politicians really
:03:56. > :04:01.want is to find a way of creating a banking union. This event -- and
:04:01. > :04:06.many feel that this will take them in the wrong direction. That you
:04:06. > :04:16.for being on the programme. Nicholas, what are you expecting to
:04:16. > :04:19.be recommended today? I think the group which is chaired by the
:04:20. > :04:23.Governor of the Central Bank of Finland has held its cards close to
:04:23. > :04:29.its chest. I do not know what will be announced today or recommended
:04:29. > :04:33.that conclusion is to report. As you mentioned, some form of
:04:33. > :04:38.separation or distinction between investment in retail banking is
:04:38. > :04:43.likely to feature as a recommendation. The big question is
:04:43. > :04:48.what form will this separation take? Is it about legal separation?
:04:49. > :04:55.Is it so analysts can understand the business model better? Or is it
:04:55. > :05:02.something harsher about an entire separation between businesses? I do
:05:02. > :05:07.not think it will go that far but we will see. The Governor of the
:05:07. > :05:14.Bank of England has been asked to come up with recommendations. Will
:05:14. > :05:22.they be receptive to the ideas? climate has changed since the
:05:22. > :05:31.commissioner asked. This was first requested early in the year. The
:05:32. > :05:40.crisis has got worse. This has led the leaders of the eurozone to
:05:41. > :05:50.envisage the creation of a much tighter framework. People are
:05:51. > :05:51.
:05:51. > :05:54.referring to the banking union. I think this project is important.
:05:54. > :06:00.Perhaps some on eurozone member states will be involved. This is
:06:00. > :06:09.going centre-stage. It is becoming a higher priority. There are more
:06:09. > :06:13.structural, long-term financial reforms. And as you say, the
:06:13. > :06:18.banking union is very much on the minds of those at the Union. What
:06:18. > :06:25.is your feeling about that? There are some iffy it is a bad idea but
:06:25. > :06:29.also some who think it is a good idea. -- some who think.
:06:29. > :06:36.general idea has gathered a lot of momentum. I think almost all member
:06:36. > :06:43.states now think it is a good idea to go in that direction. The
:06:43. > :06:49.question is, how far should it go? How energy should be transition be?
:06:49. > :06:59.Should all banks recover? -- how immediate? Some compromise must be
:06:59. > :07:03.found. Thank you for your time and for joining us live this morning to
:07:03. > :07:07.talk about changes to Europe's banks. American authorities
:07:07. > :07:15.continue to clamp down on the banking industry for its behaviour
:07:15. > :07:19.during the lead-up to the financial crisis. One bank is accused of
:07:19. > :07:24.selling products to investors knowing that they were are
:07:24. > :07:32.misleading them about value. The bank in question is JP Morgan. They
:07:32. > :07:37.say they will contest the accusations. Anglo American has
:07:37. > :07:45.ordered striking workers to attend disciplinary meetings today or face
:07:45. > :07:53.the sack. The strike has been declared illegal.
:07:53. > :08:03.Samsung has had its ban on selling the Galaxy Tabard in the US lifted.
:08:03. > :08:03.
:08:03. > :08:07.The injunction, which was won by Apple, but has been reversed.
:08:07. > :08:13.Samsung filed a motion saying the iPhone 5 had infringed some of its
:08:13. > :08:17.patents. Executives from Kingfisher Airlines will meet to discuss
:08:17. > :08:22.safety issue today. Doubts are growing about the future of the
:08:22. > :08:30.company. Let's go to Rico Hizon in Singapore. This is an ongoing story
:08:30. > :08:35.in India. It is seemingly not resolved. Tell us the latest.
:08:35. > :08:42.Hopefully by today, we will have some resolution. The Government has
:08:42. > :08:52.said that Kingfisher cannot fly its planes if safety rules are not
:08:52. > :08:58.allowed. The beleaguered airline is in talks with Air India, India and
:08:58. > :09:02.other companies to get the aircraft certified by their engineers.
:09:02. > :09:08.Kingfisher has suspended all its flights for three days, effective
:09:08. > :09:14.today. Engineers went on strike to protest last week. They have not
:09:14. > :09:18.been paid a salary since March. Other employees are joining the
:09:18. > :09:22.industrial action. Only seven aircraft are left in the fleet.
:09:22. > :09:27.Kingfisher is dangerously close to the critical level which, under
:09:27. > :09:31.Indian rules, an airline is to operate at least five planes in
:09:31. > :09:35.order to maintain his licence. The career has been struggling with a
:09:35. > :09:39.cash shortage and has made five straight annual losses. Analysts
:09:39. > :09:43.have said this week that the disruption would definitely heard
:09:43. > :09:49.efforts to win the investment needed to save the ailing from
:09:49. > :09:53.collapse. Thank you. Let's show you the
:09:53. > :09:59.markets. I want to mention the Australian market. It is not merely