19/10/2012 World Business Report

charity dinner in New York. Those are the latest headlines. It

is time for the money news. Welcome to the programme. Let's

take a look at the headlines: EU leaders have agreed to phase in a

single supervisory body for eurozone banks during the course of

next year. The World Trade Organisation write

cheques China's appeal over its tariffs on US Steel. -- rejects.

A costly mistake. Google publishes its results too early and its share

price goes into a tailspin. EU leaders had agreed to phase in a

single supervisory body for eurozone banks during the course of

next year. A legislative framework is to be agreed among the member

states by the 1st January, 2013, and the European Central Bank, the

ECB, will be given Supervisor responsibility with the power to

intervene in any bank within the eurozone. There are 16 per hour --

6,000 of them. Speaking at a news conference, the EU President said

that this was an urgent issue. June, we agreed to break the

vicious circle between banks. The urgent element is setting up a

single supervisory mechanism, to prevent banking risks and cross-

border contagion from emerging. That is why we have called for

swift progress. It is with the objective of agreeing on the

legislative framework by 1st January, 2013. Once this is agreed,

the single supervisory mechanism could probably be effectively

operational in the course of 2013. There is lots to talk about. Ralph

Silva joins us. This is kind of, we all agreed to agree, not a lot of

detail on the table. Rules were no longer have to be ratified by

individual countries. -- will no longer. That is huge. That is

enormous. We are talking about 6,000 banks. They will have to

change how they operate. So many countries in Europe have very

distinct history is. We have banks in Europe that are order than

America. That kind of history makes it different -- difficult to agree.

We would talk about the time frame in a second. There will be a lot of

people either asking, or thinking, how does this off the current

financial crisis? It does not. But it will help future ones, because

we will be able to react to areas in Europe that are having more

problems and more quickly, instead of waiting for Greece to collapse.

This is the first step in making sure that we can manage the economy.

Ireland is a perfect example. The property bubble burst in Ireland,

the banks needed money, the Irish government stepped in and bailed

out the banks, which left the one at a very empty. And then they

turned around and said they needed a bail out. -- left the wallet. Is

it getting it away from taxpayers' money? Making sure the countries

can run themselves. The banks are the key to the financial system. If

they do not exist, they cannot get money into the economy. Making sure

that it works is the whole philosophy. Key to the financial

system, London is the key find a dual hub, certainly for Europe. --

financial hub. How does it work for Britain? It is a bit more

complicated for the UK. The vast majority of banks in the UK are up

investment banks. Most of the banks in Europe are predominantly retail

banking systems. The British banking business has said that they

want to be unique, they want to be completely out of it. I do not

think that is sustainable. I think we will eventually be part of it,

but in the second generation. Before we came on air, you

mentioned the number of banks and the different bodies. Germany has

almost 4,000 banks. The sizes are different. By January 1st, which is

just around the corner, and the German Chancellor has been very

insistent, quality must come before speed. Can this be done? It is

feasible if we limit the number of roles. If we take one or two per

year, it is possible. Let's move on. Google saw billions

of dollars wiped off its market value on Thursday after its latest

results were released early. It was by accident. It knocked off

something like $22 billion in about eight minutes. The figures should

have come out after the markets closed on Wall Street, but they

revealed a 20% drop in profits. Certainly far worse than what

people had been expecting. The World Trade Organisation has

rejected China's appeal over its tariffs on US Steel. I believe we

are not just talking about any old ordinary steel, we are talking

about speciality steel. That is right. It is used for electric

motors and it is made by companies in Ohio and Pennsylvania. The World

Trade Organisation has ruled against the Chinese tariffs in June,

a decision it upheld, saying that China had failed to prove his

charges. Beijing had no immediate comment on this ruling. But the

latest decision by the WTO is likely to provide a boost to

President Obama's campaign. The President has been facing ongoing

criticism in the lead-up to the US elections, that he has been soft on

China. These disagreements had been growing in recent times. The two

sides had sparred over issues ranging from China's currency

policies over allegations of state subsidies given to Chinese

companies. We will see more of this. I should make it clear, you and I,

we are not gamblers. But it does look... it looks like Macau is

going to get another giant casino. It just continues to expand. All

these casinos, a Las Vegas based company signed a land deal for a

new $2.5 billion casino result. -- casino resort. They will be

building a five-star, 1,600 room hotel. With the project, MGM hopes

to catch up with the rapid expansion of rival casino operators.

And there is a company with three resorts and is planning a fourth.

There will be another beach resort which is costing $4 billion. With

MGM having only one casino in Macau, its share in the market is among

the lowest of the six casino operators in the territory.

Let's start on some of the other business stories. Microsoft has

released results that showed its first quarter profit fell in part

due to a difficult computer sales. The world's largest software

company said it fell to $4.5 billion, down from $5.74 billion.

It said it hoped to revive PC sales next week with the launch of its

new Windows 8 system. Buying a pair of trousers at one

o'clock in the morning, that has never been a problem in Cairo, but

now a new proposal to/trading hours could pull the plug on the city