:00:02. > :00:06.The team is expected to visit three sites were chemical weapons are
:00:06. > :00:16.alleged to have been used. Now for the latest financial News
:00:16. > :00:28.
:00:28. > :00:37.bankers are charged with trying to cover up the London Male six billion
:00:37. > :00:40.dollars trading loss. -- to XGP Morgan.
:00:40. > :00:43.Plus a 650 billion euros borrowing spree and 1 million people in
:00:43. > :00:51.negative equity. The aftermath of the property crash in the
:00:51. > :00:57.Netherlands. Welcome to you. This is World
:00:57. > :01:01.Business Report. In just a moment, China widens its crackdown on
:01:01. > :01:07.bribery in the drugs industry. First we start in the US, where
:01:07. > :01:11.prosecutors have brought criminal charges against two former JP Morgan
:01:11. > :01:17.bankers over the massive trading scandal that hit the bank last year.
:01:17. > :01:20.Just to remind you, these were the losses racked up by the London whale
:01:20. > :01:28.because of the size of the bets he was making in the market. They ended
:01:28. > :01:33.up costing JP Morgan $6.2 billion, forcing the bank to restate its
:01:33. > :01:37.earnings and its boss to appear before the US Senate. On Wednesday
:01:37. > :01:42.the first criminal charges not for the whale himself, he already agreed
:01:42. > :01:46.to cooperate with investigators in a deal to avoid prosecution, but his
:01:46. > :01:53.London-based boss at another trader have both been charged with wire
:01:53. > :02:00.fraud and conspiracy. They could face up to 20 years in prison if
:02:00. > :02:03.convicted. Lawyers for both men say they contest the charges. We have
:02:03. > :02:11.been at the Manhattan courthouse to hear what prosecutors had to say.
:02:11. > :02:14.What they tried to portrait in the press conference was that this was
:02:14. > :02:18.not just a case of individuals overwhelmed by circumstances and
:02:18. > :02:23.didn't know what they were doing. This was a calculated attempt to try
:02:23. > :02:28.and cover up the scale of the losses. The defendants deliberately
:02:28. > :02:33.and repeatedly lied about the fair value of billions of dollars in
:02:33. > :02:40.assets on JP Morgan's books in order to cover up massive losses that
:02:40. > :02:44.mounted month after month at the beginning of 2012. Those lies misled
:02:44. > :02:53.investors, regulators and the public, and they constituted federal
:02:53. > :02:57.crimes. The London whale is working with prosecutors, trying to help
:02:57. > :03:02.them build their case and has been charged. Prosecutors alluded to the
:03:02. > :03:08.fact that he had several times tried to raise flags with his bosses. At
:03:09. > :03:14.one point, one of them actually said to him that he was raising tensions
:03:14. > :03:17.by reporting bigger losses than he was comfortable with. All of this
:03:17. > :03:24.points to individual misconduct, but there was also a sense from the
:03:24. > :03:30.lawmakers that there was more than this. Here is April Brooks, a
:03:30. > :03:33.special agent with the FBI. would think one of the biggest banks
:03:33. > :03:39.on the street would have rigourous compliance and oversight over their
:03:39. > :03:43.books. Think again. As described in the complaints, complaints of the
:03:43. > :03:47.portfolio was little more than a rubber stamp. Compliance in name
:03:48. > :03:51.only. Here we are five years after the financial crisis, Wall Street
:03:51. > :03:56.banks still getting in trouble with lawmakers. They are traitors have
:03:56. > :04:04.the message that the kind of behaviour we saw back and will not
:04:04. > :04:07.be tolerated. Let's move over to China, because it is stepping up its
:04:07. > :04:09.crackdown on rampant bribery in the drugs industry.
:04:10. > :04:13.According to the official newsagency, a three-month
:04:13. > :04:20.investigation is scheduled to begin today. Let's talk to our reporter in
:04:20. > :04:25.Singapore. What can we expect to hear? Distress investigation, which
:04:25. > :04:32.begins today and ends in about three months time, is basically aimed at
:04:32. > :04:39.bridging out bribery, fraud and anti-competitive practices. -- this
:04:39. > :04:46.fresh investigation. Apart from the pricing of products and whether
:04:47. > :04:55.companies are guilty of violating privacy laws, this investigation
:04:55. > :05:00.will look into misleading or deceptive practices. Novartis and
:05:00. > :05:04.Glaxo Smith crime of companies that have been accused. --
:05:04. > :05:08.GlaxoSmithKline. Another story coming out of the
:05:08. > :05:17.region that the joint industrial park run by north and South Korea is
:05:17. > :05:22.to reopen? It will be reopened, but both sides have failed to set a
:05:22. > :05:29.precise date for the resumption of operations at the context in which
:05:29. > :05:33.has been shut down since April. The deal committed by both sides through
:05:33. > :05:37.active efforts to resume normal operations because the park is home
:05:37. > :05:43.to 123 South Korean factories which employs more than 50,000 North
:05:43. > :05:48.Korean workers. It is also a key source of revenue for Pyongyang.
:05:48. > :05:55.South Korean companies pay almost $80 million in salaries to those
:05:55. > :06:00.workers every year. The complex also produced $470 -- $470 million worth
:06:00. > :06:03.of goods last year. The UN Secretary General said that the agreement to
:06:03. > :06:13.open the park was a positive development. We will have to wait
:06:13. > :06:15.
:06:15. > :06:19.and see when it will reopen. As we have been reporting all week,
:06:19. > :06:22.figures on Wednesday confirmed that the countries that share the euro
:06:22. > :06:27.currency finally emerged from recession in the second quarter of
:06:27. > :06:31.the year, with growth of 0.3%. Despite the cautious optimism, the
:06:31. > :06:36.economic picture remains far from rosy. Not just for those in the
:06:36. > :06:39.south. The Netherlands is struggling with the bursting of a real estate
:06:39. > :06:47.bubble on a scale and the scene in the US and Spain. From the
:06:47. > :06:50.Netherlands, in Rotterdam, our correspondent said this report --
:06:50. > :06:57.sent this report. The Netherlands is famous for being partly below sea
:06:57. > :07:03.level. Now the economy is under the water.
:07:03. > :07:07.The country is facing austerity measures. It is sitting on some 650
:07:07. > :07:16.billion euros worth of mortgage loans. No other consumers in Europe
:07:16. > :07:21.are a -- as deeply in debt. Take this mortgage holder, consoling
:07:21. > :07:25.herself with some baking. Her apartment has long been for sale
:07:25. > :07:31.said she became ill and lost her job. Falling property values have
:07:31. > :07:37.left her with a huge financial hole. I never expected that in two years
:07:37. > :07:43.time my asking price would come from more than 200,000 euros to 179,000
:07:43. > :07:47.euros, ending in a result of 153,000 euros. I just don't understand the
:07:47. > :07:53.government and how they let this happen. In this case I have advised
:07:53. > :08:01.my children to decline the inheritance totally because they are
:08:01. > :08:04.stuck with 35,000 euros in debt. Property specialists blame over
:08:04. > :08:08.generous government tax breaks and overoptimistic lenders. It all
:08:08. > :08:13.encouraged the Dutch to pile into property. Many welcome the
:08:13. > :08:21.correction but it is one that has left many economic victims in its
:08:21. > :08:26.wake. We have to pay thousands of euros to the bank we don't see a
:08:26. > :08:31.solution. The banks have to write off or they have to make a deal with
:08:31. > :08:38.the clients so they can pay it off. They are not prepared in all cases
:08:38. > :08:42.to let them pay it off. That is a rather big problem now. The Dutch
:08:42. > :08:46.have always had a rather quirky approach to housing. Nobody expected
:08:46. > :08:52.that a property boom and a bust would lead both private individuals
:08:52. > :08:57.and banks sitting on mountains of unexpected new debts. All this from
:08:57. > :09:00.a country which, in the past, has been rather quick to criticise
:09:00. > :09:08.others for not living within their means.
:09:08. > :09:12.Some other news for you now. The parent company of American Airlines
:09:12. > :09:16.faces a bankruptcy court hearing in New York later. It is due to ask a
:09:16. > :09:20.judge to approve its turnaround plan, and including an $11 billion
:09:20. > :09:26.merger with USAirways. That is despite legal action by the US
:09:26. > :09:29.Justice Department and six States to block the deal. They argue that the
:09:29. > :09:33.merger, which would create the world 's biggest airline, would hurt
:09:33. > :09:39.competition and mean higher fares for travellers.
:09:39. > :09:43.Cisco says its cutting 4000 jobs, or 5% of its global workforce. The
:09:43. > :09:47.Company reported higher quarterly profits, but it warned recovery has
:09:47. > :09:51.been weaker than expected. Stock plunged almost 10% in after-hours
:09:51. > :09:55.trading. A quick look at the markets in Asia
:09:55. > :09:58.this morning. For the most part they have stalled a little bit on