:00:07. > :00:16.Report. A nerve-wracking day for Boeing as US regulators report on
:00:16. > :00:19.their safety investigation into the grounded 787 Dreamliner. Plus - the
:00:19. > :00:25.Eurozone's new crisis - could the rising Euro scupper the region's
:00:25. > :00:34.economic recovery? It's a key concern for the European Central
:00:34. > :00:44.Bank as it meets later today. Welcome to World Business Report.
:00:44. > :00:55.
:00:55. > :00:58.Also - as the year of the snake looms, the Bank of China prepares
:00:58. > :01:08.for the rising demand for cash and pumps billions into the financial
:01:08. > :01:11.system. A crucial day for plane maker Boeing. American air safety
:01:11. > :01:14.regulators are due to give an update on their investigation into
:01:14. > :01:18.the faults with the 787 Dreamliner. All Dreamliners were grounded last
:01:18. > :01:21.month after incidents where the on- board batteries caught fire.
:01:21. > :01:25.Investigators say overheating is to blame, but can't say exactly where
:01:25. > :01:28.the fault lies. On Wednesday, the head of the National Transportation
:01:28. > :01:33.Safety Board in the US warned they were probably weeks away from
:01:33. > :01:43.completing the probe. Meanwhile, the costs for Boeing continue to
:01:43. > :01:45.
:01:45. > :01:49.spiral. These pictures from the air safety investigators in Japan show
:01:49. > :01:55.the charred remains of the back foot on board the Dreamliner which
:01:55. > :01:58.caught fire when the plane was flying 10,000 metres high. The
:01:58. > :02:03.passengers were put through an emergency landing. After this all
:02:04. > :02:07.53 miners were grounded. US transport regulators are
:02:07. > :02:11.investigating a battery fire which broke out on a Dreamliner at Boston
:02:11. > :02:16.airport. They think overheating is to blame but say it could be
:02:16. > :02:22.several weeks before they know why it happens. This is ominous for
:02:22. > :02:28.blowing. The long it takes to discover the exact cause of the
:02:28. > :02:33.batteries overheating and catching fire, it will take a fair amount of
:02:33. > :02:37.time to find a solution. If there is a fundamental problem with the
:02:37. > :02:41.factories, how long could the Dreamliner of the grounded? If it
:02:41. > :02:47.is a fundamental design for a could be very serious. It could stretch
:02:48. > :02:51.out to a month. The Dreamliner contains two lithium ion batteries
:02:51. > :02:57.chosen for their lightness. One starts the engine and the other
:02:57. > :03:02.provides reserve power. Boeing executives have been defending the
:03:02. > :03:08.decision to use them. The air have been issues but we have carefully
:03:08. > :03:13.analysed everything. Went through the positive certification. We
:03:13. > :03:18.believe that is the right choice. We want to find out what happened
:03:18. > :03:22.with the batteries. The tree mine has a longer range than any other
:03:22. > :03:26.passenger plane and it has won 800 orders. No airline has yet
:03:26. > :03:30.cancelled its order but it faces compensation claims running into
:03:30. > :03:33.the billions of dollars from carriers who have paid to ground
:03:33. > :03:43.the tree miners and from others who have had their planes delivered
:03:43. > :03:45.
:03:45. > :03:50.late. Despite some nerves over the last couple of days, the euro has
:03:50. > :03:53.been on a roll. The easing of the eurozone debt crisis has sent the
:03:53. > :03:56.currency to its highest in more than a year against the dollar and
:03:56. > :03:59.the pound and its strongest in almost 3 years against the Japanese
:03:59. > :04:01.yen. This return of confidence has raised concerns it's starting to
:04:01. > :04:03.make European businesses less competitive and could choke off the
:04:03. > :04:06.region's economic recovery. Global markets, then, will be watching
:04:06. > :04:15.European Central Bank chief Mario Draghi closely today at his monthly
:04:15. > :04:22.policy meeting. Will he try to talk down the euro? Christian Schulz is
:04:22. > :04:28.from Berenberg Bank. Do you think he will say anything that might
:04:28. > :04:33.ease this problem for European businesses? You get questions at a
:04:33. > :04:38.press conference but I do not think he will send any kind of signal,
:04:38. > :04:44.whether he is happy or not with the appreciation. I think it is a
:04:44. > :04:48.positive thing. It puts confidence in the euro and it could have an
:04:48. > :04:54.impact in the long-term for European exports. What about
:04:54. > :04:59.interest rates? There are a lot of people thinking that the EU might
:04:59. > :05:06.cut rates to support the economy. We think it will not cut rates.
:05:06. > :05:10.Economy is improving, that could spill over into deflation. By the
:05:11. > :05:16.end of the year, with the economy may be takes off, they might be
:05:16. > :05:19.discussing a rate hike rather than a rate cut. In terms of what is
:05:19. > :05:25.happening with the euro, it has been strengthening and that has a
:05:25. > :05:35.lot to do with other currencies weakening. The pound has weakened a
:05:35. > :05:36.
:05:36. > :05:42.lot. Talk to us about that. We get a new central bank governor in the
:05:42. > :05:46.UK in July. He is a Canadian and has a North American tradition of
:05:46. > :05:54.money printing. He is an expectation he may be more creative
:05:54. > :05:59.than the current manager about how to support the economy. They --
:05:59. > :06:04.they may include more money printing. Today he is being grilled
:06:04. > :06:10.here in London by Members of Parliament about his plans?
:06:10. > :06:15.Hopefully, they will ask Camelot of questions about the nominal growth
:06:15. > :06:20.target instead of the inflation target the bank has. He has given
:06:20. > :06:24.some interesting speeches. These are can sexual questions us
:06:25. > :06:31.economists will be looking to follow. But they all will also be
:06:31. > :06:36.questions on salaries. What is your take on the eurozone debt crisis in
:06:36. > :06:41.general. They have got elections for Italy coming up soon. Lot of
:06:41. > :06:48.concern about who may get back into power. We have the Spanish Prime
:06:48. > :06:52.Minister under a lot of pressure, calls for him to resign because of
:06:52. > :06:58.concerns about corruption. Are you worried about where Europe is
:06:58. > :07:03.heeded? We have had a few months of relative calm. We have had a
:07:03. > :07:08.consensus with the CBD supports the country's and helps the crisis
:07:08. > :07:13.countries reform themselves. The biggest near term risks are the
:07:13. > :07:18.Italian elections because they might risk the consensus. If they
:07:18. > :07:23.go backwards with reform may make got a consensus we have. That is
:07:23. > :07:29.why markets are nervous. The good thing is elections will happen in
:07:29. > :07:33.two weeks. So not too much uncertainty there. We think Italy
:07:33. > :07:40.will probably return to the fault and we will return to come of
:07:40. > :07:44.waters. Germany, a big idea for Germany they have the elections.
:07:44. > :07:49.You are faced in Germany. What is the feeling about how Angela Merkel
:07:49. > :07:55.is playing the situation. She does have to look at the domestic
:07:55. > :07:59.scenario? Europe is very important for her election chances. If she is
:07:59. > :08:05.seen as the person who fix the Europe crisis that will help her
:08:05. > :08:08.election chances. At the moment, things are looking good. She is
:08:08. > :08:13.popular in the polls. But she will need a Coalition partner for
:08:13. > :08:20.September even if she wins. Who that will be will be the
:08:20. > :08:29.interesting question. Overall, good situation for Angela Merkel and the
:08:29. > :08:32.country is returning to growth. Bank of China is anticipating a
:08:32. > :08:35.week of big spending during the New Year celebrations and boosting the
:08:35. > :08:45.financial system to cope. Rico Hizon is at our Asia Business Hub
:08:45. > :08:47.
:08:47. > :08:55.in Singapore with the details. The year of the snake will start with a
:08:55. > :09:01.big spending spree? That is what the central bank is hoping. That
:09:01. > :09:07.mainland as well splurge. Hopefully on gifts, eating out with family
:09:07. > :09:11.and friends and buying new clothes. The Chinese people have this belief
:09:11. > :09:19.buying new things and getting rid of old ones sweeps away all the bad
:09:19. > :09:23.luck. With these beliefs, the People's Bank is infusing $138
:09:23. > :09:28.billion into the financial system. Economists keeping their fingers
:09:28. > :09:33.crossed it could give the domestic economy a major boost this quarter.
:09:33. > :09:40.When you speak to sceptics, they say the austerity drive launched by
:09:40. > :09:47.the new Chinese leadership, coupled by the slowdown could leave
:09:47. > :09:51.government departments to scale back new year festivities this year.