:00:03. > :00:13.charity dinner in New York. Those are the latest headlines. It
:00:13. > :00:22.
:00:22. > :00:27.is time for the money news. Welcome to the programme. Let's
:00:27. > :00:30.take a look at the headlines: EU leaders have agreed to phase in a
:00:30. > :00:36.single supervisory body for eurozone banks during the course of
:00:36. > :00:44.next year. The World Trade Organisation write
:00:44. > :00:49.cheques China's appeal over its tariffs on US Steel. -- rejects.
:00:49. > :00:59.A costly mistake. Google publishes its results too early and its share
:00:59. > :01:06.
:01:06. > :01:10.price goes into a tailspin. EU leaders had agreed to phase in a
:01:10. > :01:15.single supervisory body for eurozone banks during the course of
:01:15. > :01:20.next year. A legislative framework is to be agreed among the member
:01:20. > :01:24.states by the 1st January, 2013, and the European Central Bank, the
:01:24. > :01:30.ECB, will be given Supervisor responsibility with the power to
:01:31. > :01:36.intervene in any bank within the eurozone. There are 16 per hour --
:01:36. > :01:41.6,000 of them. Speaking at a news conference, the EU President said
:01:41. > :01:47.that this was an urgent issue. June, we agreed to break the
:01:47. > :01:53.vicious circle between banks. The urgent element is setting up a
:01:53. > :01:58.single supervisory mechanism, to prevent banking risks and cross-
:01:58. > :02:03.border contagion from emerging. That is why we have called for
:02:03. > :02:10.swift progress. It is with the objective of agreeing on the
:02:10. > :02:15.legislative framework by 1st January, 2013. Once this is agreed,
:02:15. > :02:22.the single supervisory mechanism could probably be effectively
:02:22. > :02:32.operational in the course of 2013. There is lots to talk about. Ralph
:02:32. > :02:42.Silva joins us. This is kind of, we all agreed to agree, not a lot of
:02:42. > :02:42.
:02:42. > :02:48.detail on the table. Rules were no longer have to be ratified by
:02:48. > :02:52.individual countries. -- will no longer. That is huge. That is
:02:52. > :02:58.enormous. We are talking about 6,000 banks. They will have to
:02:58. > :03:03.change how they operate. So many countries in Europe have very
:03:03. > :03:10.distinct history is. We have banks in Europe that are order than
:03:10. > :03:15.America. That kind of history makes it different -- difficult to agree.
:03:15. > :03:20.We would talk about the time frame in a second. There will be a lot of
:03:20. > :03:28.people either asking, or thinking, how does this off the current
:03:28. > :03:32.financial crisis? It does not. But it will help future ones, because
:03:32. > :03:40.we will be able to react to areas in Europe that are having more
:03:40. > :03:46.problems and more quickly, instead of waiting for Greece to collapse.
:03:46. > :03:50.This is the first step in making sure that we can manage the economy.
:03:50. > :03:54.Ireland is a perfect example. The property bubble burst in Ireland,
:03:54. > :03:58.the banks needed money, the Irish government stepped in and bailed
:03:58. > :04:04.out the banks, which left the one at a very empty. And then they
:04:04. > :04:10.turned around and said they needed a bail out. -- left the wallet. Is
:04:10. > :04:18.it getting it away from taxpayers' money? Making sure the countries
:04:18. > :04:23.can run themselves. The banks are the key to the financial system. If
:04:23. > :04:30.they do not exist, they cannot get money into the economy. Making sure
:04:30. > :04:36.that it works is the whole philosophy. Key to the financial
:04:36. > :04:43.system, London is the key find a dual hub, certainly for Europe. --
:04:43. > :04:49.financial hub. How does it work for Britain? It is a bit more
:04:49. > :04:53.complicated for the UK. The vast majority of banks in the UK are up
:04:53. > :04:58.investment banks. Most of the banks in Europe are predominantly retail
:04:58. > :05:03.banking systems. The British banking business has said that they
:05:03. > :05:08.want to be unique, they want to be completely out of it. I do not
:05:08. > :05:14.think that is sustainable. I think we will eventually be part of it,
:05:14. > :05:24.but in the second generation. Before we came on air, you
:05:24. > :05:24.
:05:24. > :05:31.mentioned the number of banks and the different bodies. Germany has
:05:31. > :05:36.almost 4,000 banks. The sizes are different. By January 1st, which is
:05:36. > :05:42.just around the corner, and the German Chancellor has been very
:05:42. > :05:47.insistent, quality must come before speed. Can this be done? It is
:05:47. > :05:57.feasible if we limit the number of roles. If we take one or two per
:05:57. > :06:00.
:06:00. > :06:04.year, it is possible. Let's move on. Google saw billions
:06:04. > :06:12.of dollars wiped off its market value on Thursday after its latest
:06:12. > :06:17.results were released early. It was by accident. It knocked off
:06:17. > :06:21.something like $22 billion in about eight minutes. The figures should
:06:21. > :06:26.have come out after the markets closed on Wall Street, but they
:06:26. > :06:31.revealed a 20% drop in profits. Certainly far worse than what
:06:31. > :06:39.people had been expecting. The World Trade Organisation has
:06:39. > :06:44.rejected China's appeal over its tariffs on US Steel. I believe we
:06:44. > :06:54.are not just talking about any old ordinary steel, we are talking
:06:54. > :06:59.about speciality steel. That is right. It is used for electric
:06:59. > :07:02.motors and it is made by companies in Ohio and Pennsylvania. The World
:07:03. > :07:07.Trade Organisation has ruled against the Chinese tariffs in June,
:07:07. > :07:13.a decision it upheld, saying that China had failed to prove his
:07:13. > :07:17.charges. Beijing had no immediate comment on this ruling. But the
:07:17. > :07:22.latest decision by the WTO is likely to provide a boost to
:07:22. > :07:26.President Obama's campaign. The President has been facing ongoing
:07:26. > :07:32.criticism in the lead-up to the US elections, that he has been soft on
:07:32. > :07:36.China. These disagreements had been growing in recent times. The two
:07:36. > :07:40.sides had sparred over issues ranging from China's currency
:07:40. > :07:50.policies over allegations of state subsidies given to Chinese
:07:50. > :07:51.
:07:51. > :07:57.companies. We will see more of this. I should make it clear, you and I,
:07:57. > :08:06.we are not gamblers. But it does look... it looks like Macau is
:08:06. > :08:16.going to get another giant casino. It just continues to expand. All
:08:16. > :08:26.these casinos, a Las Vegas based company signed a land deal for a
:08:26. > :08:26.
:08:26. > :08:31.new $2.5 billion casino result. -- casino resort. They will be
:08:31. > :08:41.building a five-star, 1,600 room hotel. With the project, MGM hopes
:08:41. > :08:43.
:08:43. > :08:48.to catch up with the rapid expansion of rival casino operators.
:08:48. > :08:53.And there is a company with three resorts and is planning a fourth.
:08:53. > :08:57.There will be another beach resort which is costing $4 billion. With
:08:57. > :09:06.MGM having only one casino in Macau, its share in the market is among
:09:06. > :09:11.the lowest of the six casino operators in the territory.
:09:11. > :09:14.Let's start on some of the other business stories. Microsoft has
:09:14. > :09:21.released results that showed its first quarter profit fell in part
:09:21. > :09:28.due to a difficult computer sales. The world's largest software
:09:28. > :09:32.company said it fell to $4.5 billion, down from $5.74 billion.
:09:32. > :09:37.It said it hoped to revive PC sales next week with the launch of its
:09:37. > :09:42.new Windows 8 system. Buying a pair of trousers at one
:09:42. > :09:46.o'clock in the morning, that has never been a problem in Cairo, but
:09:46. > :09:50.now a new proposal to/trading hours could pull the plug on the city