:00:04. > :00:07.province. Those are the latest headlines from BBC News. Now for
:00:07. > :00:17.the latest financial news with Aaron Heslehurst and World Business
:00:17. > :00:21.Report. Welcome to the program. Your chance
:00:21. > :00:26.to catch up on all the latest in the world of business and money.
:00:26. > :00:28.Let's take a look at the headlines: A massive subprime lawsuit and
:00:28. > :00:33.multi-billion dollar losses by its London traders threaten to
:00:33. > :00:39.overshadow improving numbers at JP Morgan.
:00:39. > :00:49.A contraction for growth in Singapore. It has avoided being the
:00:49. > :00:54.
:00:54. > :00:57.first major Asian economy to fall into recession. Plus, Europe's debt
:00:57. > :01:02.crisis takes centre stage as leaders begin talks at the IMF
:01:02. > :01:06.meetings in Tokyo. JP Morgan Chase becomes the first
:01:06. > :01:09.of the Wall Street banks to report third quarter earnings later.
:01:09. > :01:17.Investors are expecting a healthy improvement on the same period last
:01:17. > :01:20.year. Boss Jamie Dimon will also face some awkward questions about
:01:20. > :01:27.the so-called London whale, the trader behind a disastrous strategy
:01:27. > :01:30.that has so far lost the bank almost $6 billion. JP Morgan is
:01:30. > :01:33.also facing legal action by the New York Attorney General over alleged
:01:33. > :01:43.fraudulent conduct by failed investment bank Bear Stearns, which
:01:43. > :01:48.it took over in 2008. The first of the big banks, JP
:01:48. > :01:54.Morgan Chase, industry watchers are predicting upbeat performances from
:01:54. > :01:59.the bank. It is the strongest bank on Wall Street. We are looking for
:01:59. > :02:09.strong mortgage profits. There has been a flurry Jotham mortgage
:02:09. > :02:10.
:02:10. > :02:15.activity thanks to government programmes. -- due to. That would
:02:15. > :02:22.be good news for a bank that has been dealing with bad news. JP
:02:22. > :02:27.Morgan is reeling from the so- called London while, $6 billion
:02:27. > :02:33.trading last, just last week the US government slapped a lawsuit
:02:34. > :02:39.against the bank, relating to the management of mortgage securities.
:02:39. > :02:48.In the coming days, Wells Fargo, Citigroup and Bank of America will
:02:48. > :02:51.unveil their earnings. The results of other banks will be muted.
:02:51. > :02:56.Investors love to grow. It is hard for any of these banks to grow when
:02:56. > :03:02.you have an economy that is very sluggish. On Wall Street investors
:03:02. > :03:07.are cautiously optimistic. Bankers are bracing themselves for more job
:03:07. > :03:15.losses and the impact of increased financial regulation. The reality
:03:15. > :03:19.it is hard to find growth in a stagnating economy. Let's talk to
:03:19. > :03:28.David Jones, chief market strategist at IG Index. Good to
:03:28. > :03:32.have you in the studio. JP Morgan likely to give us some upbeat
:03:32. > :03:38.numbers. Everyone will be interested to find out about this
:03:38. > :03:46.London trader, $6 billion. When the news broke, the second quarter this
:03:46. > :03:51.year, it was initially $2 billion. It is now $6 billion. Worse case
:03:51. > :03:59.scenario, it could be another $1.8 billion. Hopefully we will get more
:03:59. > :04:09.clarity on this today. What is the total loss going to look like.
:04:09. > :04:10.
:04:10. > :04:20.Basically, this trader had major deals that went very wrong. Because
:04:20. > :04:26.
:04:26. > :04:36.the trains are so -- trades are so large, they are trying to get out
:04:36. > :04:37.
:04:37. > :04:44.of this in an orderly way. Wells Fargo Enmore results next week. --
:04:44. > :04:50.and more. They have got a rough ride. Which bank is going to be
:04:50. > :04:55.sued by the government next? They feel it is maybe a little unjust,
:04:55. > :05:00.but four years after they took over Bear Stearns JP Morgan are being
:05:00. > :05:09.sued for fraudulent conduct. Back then they thought they were doing
:05:09. > :05:18.the government a favour. How long are they going to be paying for the
:05:18. > :05:25.global financial crisis? We'll talk to you in the newspaper review in a
:05:25. > :05:29.moment. Thank you. Finance ministers and central bankers from
:05:29. > :05:32.around the globe are in Tokyo for the International Monetary Fund and
:05:32. > :05:35.World Bank meetings which get under way later this Friday. Europe's
:05:35. > :05:37.debt crisis will unsurprisingly take centre stage at the talks.
:05:37. > :05:44.The display of Japanese culture was not enough to distract from the
:05:44. > :05:49.grim message delivered here. At the annual meeting of the IMF and World
:05:49. > :05:54.Bank, Christine Lagarde blamed Europe and the US for creating an
:05:54. > :06:00.air of unease as she called for more action from leaders. If he
:06:00. > :06:10.were to ask me what we expect from this IMF annual meeting, we expect
:06:10. > :06:17.
:06:17. > :06:23.action. We expect courageous and Quatt -- co-operative action.
:06:23. > :06:28.Protests for Angela Merkel when she visited Greece. The IMF and World
:06:28. > :06:32.Bank are holding their annual meeting in Japan. Most of the money
:06:32. > :06:38.and efforts are being directed towards helping Europe. In this
:06:38. > :06:45.part of the world, that is raising questions about the role of the IMF.
:06:45. > :06:51.We have the changing of the guard. The former beneficiaries of IMF
:06:51. > :06:57.handouts such as across the Asia, they are being asked to potentially
:06:57. > :07:02.save Europe. The current economic uncertainty is helping businesses
:07:02. > :07:10.like this Japanese company, which makes carbon fibre found in many
:07:10. > :07:19.bikes in the Tour de France. makes it harder to decide on
:07:19. > :07:24.business investment. There is uncertainty over the global economy.
:07:24. > :07:28.Finance leaders from the seven largest economies met on Thursday,
:07:29. > :07:35.Spain's credit rating was downgraded. A reminder of the
:07:35. > :07:40.challenges facing the global economy. There you go. The eurozone
:07:40. > :07:45.debt crisis is going to take centre stage. So are some of the US
:07:45. > :07:50.problems, that so-called US cliffs. Europe and the US combined are
:07:50. > :07:53.having a negative impact on the rest of the world. Let's cross to
:07:53. > :07:58.Sharanjit Leyl in Singapore, where the global economic slowdown is
:07:58. > :08:07.being felt. If I have got this right, Singapore's economy shrank
:08:07. > :08:13.but it avoided a recession? Yes, would you believe? It has avoided
:08:14. > :08:20.becoming Asia's first major economy to fall into a technical recession.
:08:20. > :08:30.It revealed third-quarter figures today. The economy shrank 1.5% in
:08:30. > :08:34.
:08:34. > :08:44.the third economy. It has escaped technical recession. The second
:08:44. > :08:50.
:08:50. > :08:54.quarter was 0.2%. This economy has expanded 1.3% throughout the year.
:08:54. > :09:00.There were expectations it would try and weaken the currency, the
:09:00. > :09:06.Singapore dollar. They were let it because
:09:06. > :09:13.because inflation is still a major worry. Singapore uses its currency
:09:13. > :09:18.to control inflation rather than interest rates. Manufacturing, we
:09:18. > :09:26.have seen it for three months in a row. The Singapore government has
:09:26. > :09:35.been trimming its predictions for growth this year. 1.5%, 2%, down
:09:35. > :09:41.from earlier forecastss of 3%. It is the very trade dependent economy.
:09:42. > :09:49.-- forecasts. Yes, stories like that will give the leaders in Tokyo
:09:49. > :09:54.a lot to talk about. Thank you. Time for a quick look at some other
:09:54. > :09:56.business and economic stories. The number of Americans signing on for
:09:56. > :10:00.unemployment benefits dropped sharply last week to its lowest
:10:00. > :10:05.level in more than four years. The weekly figures could give another
:10:05. > :10:08.boost to President Obama a month before the presidential election.
:10:08. > :10:18.They follow surprisingly strong job data for September which showed US
:10:18. > :10:21.unemployment fell below 8% for the first time since 2009. Sprint
:10:21. > :10:23.Nextel, the number three mobile phone operator in the US, has
:10:24. > :10:33.confirmed it is in talks with Japanese phone company Softbank
:10:34. > :10:35.
:10:35. > :10:38.over a potential substantial investment. It's been reported
:10:38. > :10:43.Softbank wants to enter the US market by taking a controlling 70%