Browse content similar to 10/10/2012. Check below for episodes and series from the same categories and more!
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the latest headlines from BBC World News. Now for the latest financial | :00:03. | :00:13. | |
:00:13. | :00:19. | ||
news and World Business Report. The deal to merge BAE Systems with the | :00:19. | :00:23. | |
owners of Airbus is in trouble. The firms have to decide today whether | :00:23. | :00:27. | |
to go ahead. The giant US bank Wells Fargo is accused of reckless | :00:27. | :00:37. | |
:00:37. | :00:40. | ||
behaviour during the housing boom. The ironman has released its report | :00:40. | :00:50. | |
:00:50. | :00:50. | ||
on financial stability -- the IMF. Plans to create the world's biggest | :00:51. | :00:55. | |
aerospace and defence firm seem to be falling apart. Top executives at | :00:55. | :00:59. | |
EADS - the owner of Airbus and BAE - have been trying to negotiate a | :00:59. | :01:04. | |
merger. But the talks are close to collapse. BAE has been insisting | :01:04. | :01:07. | |
the French and German governments limit their ownership and control | :01:07. | :01:11. | |
of the new company. Shareholders are also unhappy as our Europe | :01:11. | :01:21. | |
:01:21. | :01:25. | ||
Business Reporter. Reports. For a deal to create in the world's | :01:25. | :01:31. | |
largest F Company in aviation hangs in the balance. Will Germany except | :01:31. | :01:36. | |
new power-sharing arrangements? Arguments about protecting jobs and | :01:36. | :01:41. | |
national interest have been put by ministers from all the countries | :01:41. | :01:48. | |
involved. Political agreement is the only solution. Defence | :01:48. | :01:54. | |
Manufacturers' ten to be seen, even if the companies are privatised, as | :01:54. | :02:00. | |
national assets. The government and are loath to agreed to external | :02:00. | :02:06. | |
ownership. That is true of the French, German and indeed the US | :02:06. | :02:13. | |
government with which BAe systems have strong contacts. As a formal | :02:13. | :02:17. | |
bid acts as a sign of confidence the two sides believe a deal can be | :02:17. | :02:27. | |
done. Settling arguments over whether one-quarter will be an | :02:27. | :02:32. | |
about shareholdings will be difficult. The fact its largest | :02:32. | :02:40. | |
shareholder is so sceptical means they need to be convinced the deal | :02:40. | :02:49. | |
is worth doing. So apart investors are unimpressed. -- so far. They | :02:49. | :02:56. | |
can do a deal which brings synergy and benefits to shareholders was | :02:56. | :03:03. | |
not rationalising any manufacturing capability or indeed, operate as a | :03:03. | :03:08. | |
company free from political interference but which still has | :03:09. | :03:14. | |
significant state shareholdings of France and Germany. In other words, | :03:14. | :03:19. | |
squaring the circle which to my mind is impossible. They had | :03:19. | :03:26. | |
convinced themselves the future lies together, convincing investors | :03:27. | :03:33. | |
may take all the powers. The IMF has one risks to local stability | :03:33. | :03:39. | |
have risen, leaving confidence very fragile. In spite of efforts to | :03:39. | :03:46. | |
resolve the crisis, the newly released report says the reason | :03:46. | :03:53. | |
remains the biggest source of concern. Tell us more about this | :03:53. | :04:01. | |
report. One of the top lines coming out of the report is that European | :04:01. | :04:05. | |
banks will have to sell trillions of dollars worth of assets over the | :04:06. | :04:12. | |
coming months. The problem is that if the European situation gets | :04:12. | :04:17. | |
worse, they could be forced to sell as much as 4.5 trillion dollars | :04:17. | :04:24. | |
worth of assets. That is an 18% increase in the forecast the IMF | :04:24. | :04:29. | |
made just six months ago. A sign that confidence his really becoming | :04:30. | :04:39. | |
a problem. The lack of confidence. That lack of confidence is aiming | :04:39. | :04:48. | |
in impact on what people are doing on financial markets. Just to go | :04:48. | :04:52. | |
back to what we were talking about with banks having to sell of vast - | :04:52. | :04:57. | |
- assets. It is to do with funding difficulties. That causes problems | :04:57. | :05:01. | |
for the broader economy because it means ordinary people will find it | :05:01. | :05:06. | |
harder to get credit. As we know, that will have a knock-on effect on | :05:06. | :05:16. | |
growth. The IMF cut its forecast for global growth. One of the | :05:16. | :05:22. | |
problems it is an issue of complacency. I spoke to the author | :05:23. | :05:32. | |
of the report and we talked about what he sees as the flight to safe | :05:32. | :05:37. | |
havens where investors put money when they think will be safe and we | :05:37. | :05:41. | |
have an environment where the Monetary System, central bankers, | :05:41. | :05:45. | |
and doing more follow rates to help stimulate the economy. That can | :05:46. | :05:55. | |
lead to complacency. Up the combination of these - for example | :05:55. | :06:01. | |
in the US - which have been necessary, but they may lead to a | :06:01. | :06:07. | |
sense of complacency on the part of the political actors in that | :06:07. | :06:14. | |
they've may not take action to put the public finances in order as | :06:14. | :06:18. | |
speedily as it is needed. Let's be careful not to fall into a false | :06:18. | :06:25. | |
sense of security. The world leaders and gathering here - the | :06:25. | :06:31. | |
message is Clear. Whether you are talking with the United States, | :06:31. | :06:40. | |
Europe or Japan. Policy leaders must act now. The US government is | :06:40. | :06:44. | |
suing the bank Wells Fargo for what it describes as reckless behaviour | :06:44. | :06:47. | |
during the housing boom. The lawsuit says that a government | :06:47. | :06:51. | |
agency had to pay out hundreds of millions of dollars in insurance | :06:51. | :06:56. | |
because Wells Fargo did not approve and track mortgages properly. Wells | :06:56. | :07:06. | |
:07:06. | :07:09. | ||
Fargo denies the allegations. It is the biggest bank in the US and a | :07:09. | :07:14. | |
well regarded lending institution but that reputation has taken a hit. | :07:14. | :07:19. | |
In a lawsuit filed in New York, the government alleges that between | :07:19. | :07:27. | |
2001 and a 2005, Wells Fargo certified mortgages that did not | :07:27. | :07:32. | |
meet the requirements needed by the government insurance programme. | :07:32. | :07:37. | |
When those loans eventually went into default, the agency overseeing | :07:37. | :07:42. | |
mortgage lending had to pay hundreds of millions of dollars. | :07:42. | :07:45. | |
When they be paid out, they're coming back and saying we should | :07:45. | :07:50. | |
never have had those lines in the first place. Probably true but it | :07:50. | :07:57. | |
is ubiquitous and we have event Wells Fargo doing this it points to | :07:57. | :08:03. | |
how we got here in the first place. Wells Fargo is the country's | :08:03. | :08:07. | |
largest servicer of mortgages and it is the latest bank to have | :08:07. | :08:14. | |
lawsuits filed against it. The New York Attorney General sued and JP | :08:14. | :08:22. | |
Morgan Chase. Wells Fargo denies any wrongdoing, saying it acted as | :08:22. | :08:26. | |
a prudent and responsible lender but these allegations from come as | :08:26. | :08:31. | |
his country's be as banks are due to report their third-quarter | :08:31. | :08:35. | |
earnings and analysts still expect a positive earning result from | :08:35. | :08:45. | |
Wells Fargo up but they do not do much for the bank's reputation. The | :08:45. | :08:50. | |
world's biggest shipping container company, Maersk Line has stopped | :08:50. | :08:55. | |
shipping to Iran. Sanctions have made it impossible to conduct | :08:55. | :09:02. | |
business in the nation, they say. Iran's currency has lost about a | :09:02. | :09:10. | |
third of its value over the pass way. A quarter loss and due to | :09:10. | :09:16. | |
falling aluminium sales for Alcoa. In part that is due to weak demand | :09:16. | :09:19. | |
from the construction industry. In Brazil, the central banks are | :09:19. | :09:26. | |
expected to cut interest rates. It currently stands at 4.5% after nine | :09:26. | :09:35. | |
consecutive cuts. The economy is lot sluggish. Markets are | :09:35. | :09:41. | |
struggling today - the news from a colour did not help. The lack of | :09:41. | :09:46. |