:00:03. > :00:13.the latest headlines from BBC World News. Now for the latest financial
:00:13. > :00:19.
:00:19. > :00:23.news and World Business Report. The deal to merge BAE Systems with the
:00:23. > :00:27.owners of Airbus is in trouble. The firms have to decide today whether
:00:27. > :00:37.to go ahead. The giant US bank Wells Fargo is accused of reckless
:00:37. > :00:40.
:00:40. > :00:50.behaviour during the housing boom. The ironman has released its report
:00:50. > :00:50.
:00:51. > :00:55.on financial stability -- the IMF. Plans to create the world's biggest
:00:55. > :00:59.aerospace and defence firm seem to be falling apart. Top executives at
:00:59. > :01:04.EADS - the owner of Airbus and BAE - have been trying to negotiate a
:01:04. > :01:07.merger. But the talks are close to collapse. BAE has been insisting
:01:07. > :01:11.the French and German governments limit their ownership and control
:01:11. > :01:21.of the new company. Shareholders are also unhappy as our Europe
:01:21. > :01:25.
:01:25. > :01:31.Business Reporter. Reports. For a deal to create in the world's
:01:31. > :01:36.largest F Company in aviation hangs in the balance. Will Germany except
:01:36. > :01:41.new power-sharing arrangements? Arguments about protecting jobs and
:01:41. > :01:48.national interest have been put by ministers from all the countries
:01:48. > :01:54.involved. Political agreement is the only solution. Defence
:01:54. > :02:00.Manufacturers' ten to be seen, even if the companies are privatised, as
:02:00. > :02:06.national assets. The government and are loath to agreed to external
:02:06. > :02:13.ownership. That is true of the French, German and indeed the US
:02:13. > :02:17.government with which BAe systems have strong contacts. As a formal
:02:17. > :02:27.bid acts as a sign of confidence the two sides believe a deal can be
:02:27. > :02:32.done. Settling arguments over whether one-quarter will be an
:02:32. > :02:40.about shareholdings will be difficult. The fact its largest
:02:40. > :02:49.shareholder is so sceptical means they need to be convinced the deal
:02:49. > :02:56.is worth doing. So apart investors are unimpressed. -- so far. They
:02:56. > :03:03.can do a deal which brings synergy and benefits to shareholders was
:03:03. > :03:08.not rationalising any manufacturing capability or indeed, operate as a
:03:09. > :03:14.company free from political interference but which still has
:03:14. > :03:19.significant state shareholdings of France and Germany. In other words,
:03:19. > :03:26.squaring the circle which to my mind is impossible. They had
:03:27. > :03:33.convinced themselves the future lies together, convincing investors
:03:33. > :03:39.may take all the powers. The IMF has one risks to local stability
:03:39. > :03:46.have risen, leaving confidence very fragile. In spite of efforts to
:03:46. > :03:53.resolve the crisis, the newly released report says the reason
:03:53. > :04:01.remains the biggest source of concern. Tell us more about this
:04:01. > :04:05.report. One of the top lines coming out of the report is that European
:04:06. > :04:12.banks will have to sell trillions of dollars worth of assets over the
:04:12. > :04:17.coming months. The problem is that if the European situation gets
:04:17. > :04:24.worse, they could be forced to sell as much as 4.5 trillion dollars
:04:24. > :04:29.worth of assets. That is an 18% increase in the forecast the IMF
:04:30. > :04:39.made just six months ago. A sign that confidence his really becoming
:04:39. > :04:48.a problem. The lack of confidence. That lack of confidence is aiming
:04:48. > :04:52.in impact on what people are doing on financial markets. Just to go
:04:52. > :04:57.back to what we were talking about with banks having to sell of vast -
:04:57. > :05:01.- assets. It is to do with funding difficulties. That causes problems
:05:01. > :05:06.for the broader economy because it means ordinary people will find it
:05:06. > :05:16.harder to get credit. As we know, that will have a knock-on effect on
:05:16. > :05:22.growth. The IMF cut its forecast for global growth. One of the
:05:23. > :05:32.problems it is an issue of complacency. I spoke to the author
:05:32. > :05:37.of the report and we talked about what he sees as the flight to safe
:05:37. > :05:41.havens where investors put money when they think will be safe and we
:05:41. > :05:45.have an environment where the Monetary System, central bankers,
:05:46. > :05:55.and doing more follow rates to help stimulate the economy. That can
:05:55. > :06:01.lead to complacency. Up the combination of these - for example
:06:01. > :06:07.in the US - which have been necessary, but they may lead to a
:06:07. > :06:14.sense of complacency on the part of the political actors in that
:06:14. > :06:18.they've may not take action to put the public finances in order as
:06:18. > :06:25.speedily as it is needed. Let's be careful not to fall into a false
:06:25. > :06:31.sense of security. The world leaders and gathering here - the
:06:31. > :06:40.message is Clear. Whether you are talking with the United States,
:06:40. > :06:44.Europe or Japan. Policy leaders must act now. The US government is
:06:44. > :06:47.suing the bank Wells Fargo for what it describes as reckless behaviour
:06:47. > :06:51.during the housing boom. The lawsuit says that a government
:06:51. > :06:56.agency had to pay out hundreds of millions of dollars in insurance
:06:56. > :07:06.because Wells Fargo did not approve and track mortgages properly. Wells
:07:06. > :07:09.
:07:09. > :07:14.Fargo denies the allegations. It is the biggest bank in the US and a
:07:14. > :07:19.well regarded lending institution but that reputation has taken a hit.
:07:19. > :07:27.In a lawsuit filed in New York, the government alleges that between
:07:27. > :07:32.2001 and a 2005, Wells Fargo certified mortgages that did not
:07:32. > :07:37.meet the requirements needed by the government insurance programme.
:07:37. > :07:42.When those loans eventually went into default, the agency overseeing
:07:42. > :07:45.mortgage lending had to pay hundreds of millions of dollars.
:07:45. > :07:50.When they be paid out, they're coming back and saying we should
:07:50. > :07:57.never have had those lines in the first place. Probably true but it
:07:57. > :08:03.is ubiquitous and we have event Wells Fargo doing this it points to
:08:03. > :08:07.how we got here in the first place. Wells Fargo is the country's
:08:07. > :08:14.largest servicer of mortgages and it is the latest bank to have
:08:14. > :08:22.lawsuits filed against it. The New York Attorney General sued and JP
:08:22. > :08:26.Morgan Chase. Wells Fargo denies any wrongdoing, saying it acted as
:08:26. > :08:31.a prudent and responsible lender but these allegations from come as
:08:31. > :08:35.his country's be as banks are due to report their third-quarter
:08:35. > :08:45.earnings and analysts still expect a positive earning result from
:08:45. > :08:50.Wells Fargo up but they do not do much for the bank's reputation. The
:08:50. > :08:55.world's biggest shipping container company, Maersk Line has stopped
:08:55. > :09:02.shipping to Iran. Sanctions have made it impossible to conduct
:09:02. > :09:10.business in the nation, they say. Iran's currency has lost about a
:09:10. > :09:16.third of its value over the pass way. A quarter loss and due to
:09:16. > :09:19.falling aluminium sales for Alcoa. In part that is due to weak demand
:09:19. > :09:26.from the construction industry. In Brazil, the central banks are
:09:26. > :09:35.expected to cut interest rates. It currently stands at 4.5% after nine
:09:35. > :09:41.consecutive cuts. The economy is lot sluggish. Markets are
:09:41. > :09:46.struggling today - the news from a colour did not help. The lack of