:00:03. > :00:13.Those are the latest headlines. Now it is time for the World Business
:00:13. > :00:28.
:00:28. > :00:32.Fabrice Tourre liable for a billion-dollar fraud on investors.
:00:32. > :00:37.One official calls him the face of Wall Street greed.
:00:37. > :00:47.They've done it again - record highs for the US market. Can the latest US
:00:47. > :00:53.
:00:53. > :01:02.An exciting snapshot of all the latest world of business and money.
:01:02. > :01:04.We also have some news we will talk about from IAG, the international
:01:04. > :01:10.airline group. We will talk about the shortly.
:01:10. > :01:17.First, let us start with this man right here. The former Goldman Sachs
:01:17. > :01:21.trader, Fabrice Tourre, otherwise known as Fabulous Fab. He has been
:01:21. > :01:24.found liable on six of seven counts of fraud by a New York jury over his
:01:24. > :01:31.role in investments that were linked to the sub-prime mortgage market
:01:31. > :01:34.which saw Goldman Sachs' clients lose $1 billion. It is the biggest
:01:34. > :01:40.trial to come out of investigations by US financial regulators into the
:01:40. > :01:44.cause of the 2008 financial crisis. They are ailing this is a major
:01:44. > :01:47.victory. As we report, some are asking why a relatively junior
:01:47. > :01:53.trader is just one of the few people so far brought to book for this
:01:53. > :01:56.crisis. He was one of only a handful of Wall
:01:56. > :02:00.Street workers to ever make it to court. It took a jury only two days
:02:00. > :02:05.to decide Fabrice Tourre, better known as Fabulous Fab, had in fact
:02:05. > :02:11.misled clients by selling them doomed financial products loaded
:02:11. > :02:17.with bad mortgages. The failure of those mortgage-backed securities was
:02:17. > :02:21.seen as the catalyst for the financial crisis. You can have one
:02:21. > :02:31.of two responses to this. You can call it a major win for the SEC, a
:02:31. > :02:32.
:02:32. > :02:34.big win in court. Or you can look it at as they got a measly verdict
:02:34. > :02:40.against a mid-level banker who really wasn't one of the big guys
:02:40. > :02:45.responsible for what went wrong. Fabrice Tourre's employer at the
:02:45. > :02:51.time, banking giant Goldman Sachs. It was also charged with fraud but
:02:51. > :03:01.settled with American regulators back in 2010, paying what was then a
:03:01. > :03:01.
:03:01. > :03:06.record fine of $550 million. Since then, Goldman Sachs has been able to
:03:06. > :03:10.distance itself from the financial crisis, but Thursday 's verdict
:03:10. > :03:16.recasts a shadow on the banks reputation ?I ? reputation ing an
:03:16. > :03:21.Auckland. What happens now to be Fabulous Fab? He faces potential
:03:21. > :03:23.fines and even a possible banning from the financial industry. The
:03:23. > :03:32.same industry whose reputation continues to be stained by the sins
:03:32. > :03:36.of its past. Let's stay with the fallout from the
:03:36. > :03:40.crisis. We moved to Ireland for the last part of our global series on
:03:40. > :03:44.housing. The country was hit by the bust in the property market five
:03:44. > :03:50.years ago. House prices have recently started rising. That is
:03:50. > :04:00.little consolation to some owner is -- homeowners, who pay mortgages on
:04:00. > :04:05.houses that were never completed. An Irish beauty spot where the
:04:05. > :04:10.property market boomed in better days. John Ryan borrowed almost
:04:10. > :04:15.200,000 euros for a retirement home here, but the dream became a legal
:04:15. > :04:18.nightmare and the builder went out of my bet -- out of business. John
:04:18. > :04:22.has been barred from moving in because the state was never
:04:22. > :04:27.finished, though he still has to keep paying back his mortgage. His
:04:27. > :04:33.patience snapped recently when he decided to break in to his own home.
:04:33. > :04:38.We had finished up with a bridging loan and that was paid for the last
:04:38. > :04:41.seven years. The interest rates are higher than the normal rate because
:04:41. > :04:47.it is a bridging loan. We have never missed a payment and we are paying
:04:47. > :04:52.for seven years. We have no authority to move into our property.
:04:52. > :04:59.Even if you cannot live in your house, walking away from loans has
:04:59. > :05:06.serious legal consequences under Irish law. The boom has left Ireland
:05:06. > :05:11.with a debt hangover for those stuck with a high mortgage at a house they
:05:11. > :05:15.cannot sell in a recession. The only growth in the construction industry
:05:15. > :05:20.would be the weeds growing on housing estates like this one,
:05:20. > :05:23.abandoned when the crash came. It is as if time stood still after some
:05:23. > :05:27.cataclysmic event. That is what has happened to Ireland economic way and
:05:27. > :05:31.it has left behind a legacy of problems for many people who bought
:05:31. > :05:35.houses during the boom. The shop workers continued paying a mortgage
:05:35. > :05:42.for seven years, but she too cannot get into the house during Ireland's
:05:42. > :05:48.boom. -- Michelle Burke. So far the episode has cost her and her husband
:05:48. > :05:54.over 300,000 euros. I went to school here, so it was my dream to have our
:05:54. > :06:04.first home together here. We were very excited about it. It has become
:06:04. > :06:06.
:06:06. > :06:11.a living nightmare. We just cannot believe it happened to us. Across
:06:12. > :06:17.the country, around 200,000 houses and apartments my empty. Rebuilding
:06:17. > :06:24.Ireland's economy is likely to take a lot longer than than it took to
:06:24. > :06:31.build them. Let's turn our attention to the US.
:06:31. > :06:36.That me tell you, the markets have done it again. New eyes on Thursday.
:06:36. > :06:40.In fact, new record closes for the Dow Jones and the S&P 500. So, why
:06:40. > :06:44.all the commission on Wall Street? Investors seem to believe that they
:06:44. > :06:48.have the best of both worlds. And improving US economy, but also the
:06:48. > :06:50.problem from the Federal reserve that for now it will keep the desert
:06:51. > :07:00.are going, that massive stimulus programme of $85 billion every
:07:01. > :07:03.
:07:03. > :07:10.month. -- Suker going. Jobseekers will be key to keeping it going. --
:07:10. > :07:15.job figures. They are expected to show that 800 184,000 jobs were
:07:15. > :07:25.created for month. Show that 184,000 jobs. That will bring the jobless
:07:25. > :07:30.rate down to 7.5%. Getting better, but higher than the 6.5% the reserve
:07:30. > :07:36.was to see before winding down the stimulus.
:07:36. > :07:40.The reason economists followed the jobs at closely is this - is what
:07:40. > :07:44.they call forward-looking economic figures. If there were more jobs
:07:44. > :07:49.available last month, the more people would get paid and they will
:07:49. > :07:52.spend more money. Then, more up with demand. In a country where
:07:52. > :07:58.consumer spending accounts for more than two thirds of all economic
:07:58. > :08:03.activity, that will then boost growth. The Jobstart gives them
:08:03. > :08:06.ideas of where the economy is headed. Recent figures show that the
:08:06. > :08:10.world 's biggest economy is definitely looking better and the
:08:10. > :08:15.jobless rate has been falling steadily from the decades height of
:08:15. > :08:20.10% in October, 2009. While there have been significant improvements,
:08:20. > :08:23.there is still 2 million fewer jobs today than before the recession.
:08:23. > :08:29.Another concern is the duration of unemployment. People are spending
:08:29. > :08:33.much longer out of work than five years ago. We will bring you this
:08:34. > :08:40.jobs numbers as soon as they are out. One of my favourite subjects,
:08:40. > :08:43.the airline business. Investors are awaiting the latest quarterly
:08:43. > :08:46.numbers from IAG. The owner of British Airways and Iberia. It is
:08:46. > :08:50.likely to show that the fortunes of the two sides of the business are
:08:50. > :09:00.continuing to diverged. EA doing well, but Iberia continuing to
:09:00. > :09:02.
:09:02. > :09:05.struggle with huge challenges in the Spanish market. That is it in a
:09:05. > :09:11.nutshell for IAG. Iberia is the ball and chain around this group 's
:09:11. > :09:15.ankle? It absolutely is. They are not held by the Spanish economic
:09:15. > :09:18.backdrop. They have a lot of their own problems to work out. The
:09:18. > :09:26.chairman has made it clear that they need to get themselves in a lean and
:09:26. > :09:30.efficient state or the company will not see a positive future. The boss
:09:30. > :09:35.of IAG actually said that Iberia will not get any more investment in
:09:35. > :09:41.the litigants its act together. Can that happen without the investment?
:09:41. > :09:51.I think it can. It is challenge. If you look at his own spirits. He did
:09:51. > :09:54.it at Aer Lingus and with British Airways. There is a lot of
:09:54. > :09:57.inefficiency that can be improved. We have seen in the first quarter of
:09:57. > :10:00.the year they actually took out capacity because it is not needed in
:10:00. > :10:04.the week Spanish market. In the second quarter they have moved on to
:10:04. > :10:13.reducing manpower and salaries. It is not going down well in Spain, not
:10:13. > :10:17.only with unions, but with bosses as well. Some people have classed
:10:17. > :10:21.Iberia as a bit of a basket case. the other hand, it has a bit of a
:10:21. > :10:28.golden goose. If it was turned around and could be a pretty good
:10:28. > :10:33.airline. It has all those routes to Latin and South America. They didn't
:10:33. > :10:37.buy into Iberia for nothing. The management see that Latin America
:10:37. > :10:43.price. Madrid airport, unlike Heathrow, is not constrained. It has
:10:43. > :10:53.spare capacity. The Latin American imports will grow in the future.
:10:53. > :10:56.
:10:56. > :11:01.Iberia is a very natural airline to Let's take a flash of the markets.
:11:01. > :11:05.Following that optimism on Wall Street, all eyes and ears on the