:00:02. > :00:12.damaged roads and bridges. -- a massive typhoon. Those are the
:00:12. > :00:17.
:00:17. > :00:20.latest headlines. Now for the latest financial news.
:00:20. > :00:23.Welcome to World Business Report. European finance ministers are
:00:23. > :00:31.going to agree on a single regulator for all banks as they
:00:31. > :00:35.meet in Brussels. Divisions run deep. Australia's central bank cuts
:00:35. > :00:44.interest fixed for the 4th time this year to safeguard the economy
:00:44. > :00:47.from the uncertainty over America's fiscal policy. Global betting
:00:47. > :00:57.business William Hill has to hours to decide whether SportingBet is
:00:57. > :00:59.
:00:59. > :01:03.Hello and welcome. European finance ministers are regrouping in
:01:03. > :01:07.Brussels on Tuesday to try to agree on proposals for a single mechanism
:01:07. > :01:11.for supervising banks. At the moment, there are substantial
:01:11. > :01:15.hurdles before reaching an agreement. Some countries have
:01:15. > :01:18.concerns about placing the supervisor with any European
:01:18. > :01:23.Central Bank. There were did will erode the necessary clear
:01:23. > :01:29.separation between monetary policy role and supervisory
:01:29. > :01:33.responsibilities. Welcome to the problem. Let's work
:01:33. > :01:37.on the good points. We have had a financial crisis, when a banking
:01:37. > :01:42.crisis, in the eurozone, specifically, although it has been
:01:42. > :01:47.elsewhere. This should solve that problem. It will provide a bailout
:01:47. > :01:52.mechanism. The whole issue has been that there is not anything that
:01:52. > :01:57.controls the eurozone. It has 17 countries with their own banks,
:01:57. > :02:01.supervisory States. This reform, the whole point is to solve this
:02:01. > :02:07.issue. They want to make it more integrated and more capable of
:02:07. > :02:13.handling a crisis. There will be centralised control. It would
:02:13. > :02:18.bypass the national governments. It seems a sensible idea. The biggest
:02:18. > :02:24.oddity here is the UK. It is the financial capital of Europe. It
:02:24. > :02:29.would be outside it. How it would that work? That is the big issue.
:02:29. > :02:33.We have the nerve centre in London. Most of the flow of capital around
:02:33. > :02:38.the world comes through it, particularly into Europe. It is
:02:38. > :02:42.viewed as being of sure within the eurozone. Why should the European
:02:42. > :02:46.Union and the new regime be controlled by an offshore centre in
:02:46. > :02:52.London? They think it should be within the European Union, the
:02:52. > :03:01.eurozone. So they would like to bring the financial centre in the
:03:01. > :03:07.UK into the eurozone or be ruled by a new supervisory body? That is
:03:07. > :03:12.where the divide sits. The UK sits outside the eurozone. This European
:03:12. > :03:16.Union, particularly the banking union, would be to control the euro.
:03:16. > :03:23.They will say they want that control to be within Frankfurt or
:03:23. > :03:30.Paris or within the eurozone. about countries like Sweden? The
:03:30. > :03:36.Finnish banks, they are outside the eurozone. What would happen? Sweden,
:03:36. > :03:40.like the UK, is not part of the euro. It has the same issue. They
:03:40. > :03:45.will wonder why they should give control to an authority with
:03:45. > :03:50.different interests. Equally, there are other issues. Germany or poses
:03:50. > :03:56.the union. There is an insurance scheme that will go behind this in
:03:56. > :04:02.time. It will say that if a country such as Spain as issues, the
:04:03. > :04:08.deposits and insurances that savers and depositors in Germany have will
:04:08. > :04:13.bail them out. That is an issue but in this new reform. They will not
:04:13. > :04:21.have saying this. It will just happen. They will have no control.
:04:21. > :04:25.Unless and others, the deadline will pass for the giant gambling
:04:25. > :04:30.operator William Hill to table a $850 million bid for online gaming
:04:30. > :04:32.group SportingBet. The deal has been thrown into question in recent
:04:32. > :04:36.days because SportingBet has filed some surprisingly weak results.
:04:36. > :04:39.William Hill might now slash the price it's offering. Racing may be
:04:39. > :04:46.the sport of kings. Austerity had punters are careful these days.
:04:46. > :04:55.They are placing less money with the bookmakers. There are new rules
:04:55. > :05:04.to tax gambolling offshore. -- gambling. William Hill is best
:05:04. > :05:14.known for its chain of betting shops. It joined services -- forces
:05:14. > :05:15.
:05:15. > :05:19.with the EEC. Revenue is starting to flag. There down by 35 %. We are
:05:19. > :05:25.coming to the end, particularly in Europe. It is getting tougher and
:05:25. > :05:30.tougher and tougher. There are paying tax and licence fees. It is
:05:30. > :05:37.becoming a tough environment in which to operate. William Hill
:05:37. > :05:41.lower the price? By how much? They kissed and to use their prize asset,
:05:42. > :05:47.the Australian betting market. are well spread across the world
:05:47. > :05:56.apart from in Australia. It is where some of the highest paying
:05:56. > :06:01.gamblers in the world are. Australia is important.
:06:01. > :06:07.takeover power of the London Stock Exchange is important. William Hill
:06:07. > :06:12.bid. The deadline may be postponed to allow negotiation of the law
:06:12. > :06:16.offer. The smart money in the city says they will not read the
:06:16. > :06:21.ownership of the company slipped through their grasp.
:06:21. > :06:25.Just two hours ago, the central bank in Australia lowered their
:06:25. > :06:29.interested by 0.25 %. The history of the Australian interest rates
:06:29. > :06:35.are very different to the rest of the world. The changed a lot during
:06:35. > :06:41.the boom years. Moving up in the early 2000s. There was a dive down
:06:41. > :06:46.afterwards. My central banks started hiking them up again as
:06:46. > :06:50.demand for raw materials picked up. It is only release since the end of
:06:50. > :06:59.last year, and you can see it there, that the bank started to cut them
:06:59. > :07:07.again. Let's go over to a show and Rico Hizon. -- Asia. Why have they
:07:07. > :07:13.cut rates again? This rate cut of the Reserve Bank is the 4th this
:07:13. > :07:17.year. That is 1.25 % since May. Many analysts believe it is weak
:07:17. > :07:24.retail numbers, falling company profits and an 8th consecutive
:07:24. > :07:28.month of falling job advertisements that has clinched the rate cut. At
:07:28. > :07:33.this move comes one day before Australia releases the latest
:07:33. > :07:39.growth figures. They want to conquer the uncertainty over fiscal
:07:39. > :07:43.policy. It could plunge the economy into recession. There is also the
:07:43. > :07:47.stubbornly weak conditions in Europe. The economy has been
:07:47. > :07:54.struggling with the strong Australian dollar. A rate cut could
:07:54. > :07:59.weaken the currency and potentially boost the mining sector. The resort
:07:59. > :08:05.boom is tapering off. Economists believe the cycle will continue and
:08:05. > :08:15.to 2013. Many are believing they could be a reduction. The cut was
:08:15. > :08:21.positive impact so far on the stock market. It has fallen by 0.6 %. The
:08:22. > :08:31.Australian dollar is going higher, define the rate reduction. --
:08:32. > :08:35.
:08:35. > :08:39.defining. In other news, EDF, the French Energy group which is
:08:39. > :08:41.planning to build several nuclear power plants in the UK - says it's
:08:41. > :08:44.raising the estimated cost of construction of its Flamenville
:08:45. > :08:48.reactor in Northern France by another 2 billion euros. In July
:08:48. > :08:52.last year, he said the expected cost to be $6 billion. -- Euros.
:08:52. > :08:56.And 2005, but they said in my generation reactor would be 3.3
:08:56. > :09:03.billion euros. They're blaming factors including the strict
:09:03. > :09:08.regulation that has been introduced since the figure shimmer reactor
:09:08. > :09:12.disaster. Oracle is the latest US company to make accelerated
:09:12. > :09:17.dividend payments. This allows shareholders to avoid tax rises
:09:17. > :09:21.that will come into effect in January. That is unless a deal can
:09:21. > :09:26.be struck between the Democrats and about Republicans to avoid this so-
:09:26. > :09:30.called this club cliff. The business software giant appeared
:09:31. > :09:35.second, third and 4th quarter dividends altogether, totalling 18