:00:02. > :00:12.Those are the latest headlines from BBC World News.
:00:12. > :00:15.
:00:15. > :00:19.Now for the latest financial news Hello and welcome to World Business
:00:20. > :00:22.Report. A nightmare for the Dreamliner. Two
:00:22. > :00:28.Japanese airlines ground their entire fleets of Boeing 787s after
:00:28. > :00:32.another incident forces an emergency landing.
:00:32. > :00:42.And how to police the credit rating agencies - EU lawmakers will vote
:00:42. > :00:46.
:00:46. > :00:49.today. Japan's All Nippon Airways has
:00:49. > :00:52.ordered the grounding of all 17 of its Boeing 787 Dreamliner aircraft
:00:52. > :00:57.after one was forced to make an emergency landing and evacuation in
:00:57. > :01:01.western Japan this morning. The landing came after smoke reportedly
:01:01. > :01:04.appeared in the aircraft's cockpit. The incident is the 6th to affect a
:01:04. > :01:10.787 in the last two weeks raising serious concerns about the safety
:01:10. > :01:18.of the new high tech aircraft. And a short while ago, Japan Airlines
:01:18. > :01:21.also grounded its seven Dreamliners. Plane-maker Boeing quickly released
:01:21. > :01:25.a statement saying, "Boeing is aware of the diversion of a 787
:01:25. > :01:34.operated by ANA to Takamatsu in Western Japan. We will be working
:01:34. > :01:37.with our customer and the appropriate regulatory agencies."
:01:37. > :01:40.On Friday US regulators announced an in-depth safety review of the
:01:41. > :01:43.787 which was followed on Monday by the announcement of a probe in
:01:43. > :01:53.Japan. Boeing currently have orders for around 800 Dreamliners yet to
:01:53. > :01:57.
:01:57. > :02:01.be delivered. This has been an ongoing saga.
:02:01. > :02:10.Today's and then stepped up a gear up. Boeing and the airlines in
:02:10. > :02:13.Japan have got to get this sorted out quickly. They do. This is the
:02:14. > :02:19.most serious incident so far. What appears to have happened, the
:02:19. > :02:22.latest information we have is that what happened is that the pilots
:02:22. > :02:27.noticed the smoke detector in an internal compartments in the
:02:27. > :02:30.aircraft had gone off. It appears that it was the compartment which
:02:30. > :02:34.contains the auxiliary power batteries. This looks like a
:02:34. > :02:38.similar incident to the one that happened in the west. When the
:02:38. > :02:43.Japan Airlines Dreamliner last week, there is a problem with the
:02:43. > :02:49.batteries. This was in flight. Smoke inside an aircraft in flight
:02:49. > :02:52.is always a very serious event. That is why, we saw today that all
:02:52. > :02:57.Nippon and Japan Airlines have both said that they would ground their
:02:57. > :03:02.fleets until this go problem above all others would be sorted out.
:03:02. > :03:08.are looking at amateur footage of their events from today. This has
:03:08. > :03:14.Broadcasters all of the world have this. It is bad for the reputation.
:03:14. > :03:21.It is very common is it not, for a brand new aircraft to have teething
:03:21. > :03:26.troubles. It is. I insure that in the morning, when the bosses of
:03:26. > :03:29.bowling wake up in Chicago, they will see these pictures and their
:03:29. > :03:33.hearts will sink. This is the news that they did not want this week
:03:33. > :03:38.after five separate incidents with the plane last week and now this
:03:38. > :03:41.more serious one. Experts do say that most of these incidents, many
:03:41. > :03:46.of the ones last week included a fuel leak and a broken windscreen
:03:46. > :03:50.and a glitch with the computers on the breaks of one aircraft, is all
:03:50. > :03:56.normal teething problems that you would expect with any new aircraft
:03:56. > :04:00.being introduced into the market. On the other hand, this battery
:04:00. > :04:04.problem, the fire that last week and these incidents today, this is
:04:04. > :04:11.different. This is new technology that has never been on board an
:04:11. > :04:15.aircraft before. The FAA in the US, as far back as 2007, said publicly
:04:15. > :04:19.that they were worried about these kinds of batteries being used on
:04:19. > :04:25.this board these aircraft because of the fire risk. We are now seen
:04:25. > :04:30.the results of that date. There was a correspondent in Tokyo. We will
:04:30. > :04:33.keep an eye on a story in World Business Report.
:04:33. > :04:36.New EU rules to try and make credit rating agencies fairer and more
:04:36. > :04:42.accountable go to the vote in the European Parliament in Strasbourg
:04:42. > :04:44.today. It's the job of commercial agencies such as Standard & Poor's,
:04:44. > :04:48.Moody's, and Fitch to assess if companies and sovereign states are
:04:48. > :04:50.likely to repay their debts on time. In Europe, the agencies have been
:04:50. > :04:53.repeatedly criticised for failing to warn about the debt crisis and
:04:53. > :05:02.for endorsing financial products that were later found to be part of
:05:02. > :05:07.the trouble. They slashed the credit rating of
:05:08. > :05:12.Cyprus. Ireland says its latest trading is depressingly low.
:05:12. > :05:17.Ireland -- France is living with a downgrade and Britain also risks
:05:17. > :05:23.losing the triple-A status. Sovereign downgrades affect the
:05:23. > :05:27.credibility of entire states. The EU insists that it is not on the
:05:27. > :05:33.verge of muzzling the industry. They will have to be more
:05:33. > :05:43.transparent. Regarding methodologies but that they used to
:05:43. > :05:46.assess the economic and financial situations of every country.
:05:46. > :05:51.timing of a big agency downgrades is being tackled. Agencies will
:05:51. > :05:55.have to justify their positions more fully. Investors get leave to
:05:55. > :05:59.claim that civil damages for ill- founded reports. They could be
:05:59. > :06:04.curbs on conflicts of interest. Often they were very being rated is
:06:04. > :06:08.also paying for their rating. Analysts say that this set up which
:06:08. > :06:13.enclose the industry into a potentially dangerous game. Right
:06:13. > :06:17.now, everyone is trying to get back in the market. Every sovereign,
:06:17. > :06:23.Ireland, Spain there or tried to issue debt. They are trying to get
:06:23. > :06:28.free and clear of official support. This is understandable. That may,
:06:28. > :06:32.with his regulatory pressure and the continuing system where they
:06:32. > :06:36.pay for the rating, is pushed the rating agencies have to really make
:06:36. > :06:42.an upgrade to the rating before time. In much the same way that
:06:42. > :06:46.they were signing ratings that were too high to begin with. They may
:06:46. > :06:50.jump the gun and give us ratings that either the all clear signal
:06:50. > :06:54.before everything is really fixed. Brussels wants financial firms to
:06:54. > :06:58.be less reliant on the rating agencies and carry out more of
:06:58. > :07:02.their own assessments. But the dream was of a home-grown,
:07:02. > :07:08.independent rating agency for Europe. That doesn't seem to be
:07:08. > :07:11.viable. The idea is now quietly dropped. Studies of bond market
:07:12. > :07:21.behaviour says that the big freeze has always been taken with a pinch
:07:21. > :07:31.of salt when a return is to be made. The recommendations of agencies are
:07:31. > :07:31.
:07:31. > :07:34.useful but felt -- bubble. -- fallible.
:07:35. > :07:37.We'll get a better picture of the state of America's banks this week,
:07:38. > :07:41.with five of the country's biggest revealing how much money they are
:07:41. > :07:43.making. After a difficult few years for banks, many expect the worst to
:07:44. > :07:47.be over. But is it? For America's big banks, 2012 was
:07:47. > :07:51.dominated by two he issues. The fiscal cliff debate and the
:07:51. > :07:55.uncertainty that that brought but also the legacy of the housing
:07:55. > :08:00.crash. Many of the bigger banks paid out of compensation and heavy
:08:00. > :08:06.settlements to clear up what many customers accused of mis-selling
:08:06. > :08:13.mortgages or unfairly repossessing homes. Is the worst now over? What
:08:13. > :08:20.does 2013 have in store? We have a direct the here. Is it fair to say
:08:20. > :08:25.that the worst is now over? It does look like it. It seems as though
:08:25. > :08:32.banks have adapted to the new regulation that we have seen since
:08:32. > :08:35.2008 and 2009. Last year, we could say that the housing sector was one
:08:35. > :08:40.of the best-performing sectors. One of the hurdles for earnings is that
:08:40. > :08:44.they may be priced for perfection. If you look right around the world,
:08:44. > :08:49.there are still big clubs on the horizon. There is a slowdown in
:08:49. > :08:54.China. There is uncertainty in Europe. Amateurs that back into
:08:54. > :08:58.figures? Absolutely. The global economy has a symbiotic
:08:59. > :09:03.relationship. Chinese exports and a demand globally will have an impact
:09:03. > :09:09.and US banks. On the home front, we have got past the fiscal cliff. The
:09:09. > :09:12.next hurdle is the debt ceiling. That can have an impact. We are
:09:12. > :09:18.already seen it fixed ratings coming out and threatening to lower
:09:18. > :09:22.the US's triple A rating. If that occurs and the worst case an up
:09:22. > :09:26.side does occur and we going to default as a result of not raising
:09:26. > :09:31.the debt ceiling, interest rates will be certainly impacted and
:09:31. > :09:35.bigger banks going forward as well. That will be weighing on the minds
:09:35. > :09:38.of investors and the banks themselves. This week, we will get
:09:38. > :09:42.figures from JP Morgan and Goldman Sachs and the Bank of America. They
:09:42. > :09:47.will look very closely at events right around the world but also
:09:47. > :09:53.here in the US. Particularly, the housing market. Their fortunes are
:09:53. > :09:58.intrinsically linked to the banks. He has a busy week ahead. Will keep
:09:58. > :10:02.you up-to-date. These are the markets in Asia. Some