16/09/2013

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:00:00. > :00:22.Report. Summers steps aside — he was

:00:22. > :00:24.favourite to take on the biggest banking job in the world, but

:00:24. > :00:25.political pressure makes Larry Summers pull out of the Federal

:00:25. > :00:30.Reserve leadership battle. Immigration policies split the vote

:00:30. > :00:32.— with just days to go until the — with just days to go until the

:00:32. > :00:34.German election we head to Duisberg, a town that's divided by its migrant

:00:34. > :00:42.population. a town that's divided by its migrant

:00:42. > :00:45.Welcome to World Business Report. Welcome to World Business Report.

:00:45. > :00:47.I'm Sally Bundock. Also in the programme: financial markets react

:00:47. > :00:57.to Summers stepping to Summers stepping out of the race

:00:57. > :00:58.to run the Fed. The front runner for the so—called

:00:58. > :01:02.top job in global banking has pulled top job in global banking has pulled

:01:02. > :01:04.out of the race. Lawrence Summers, a former top economic aide to Barack

:01:04. > :01:11.become the next chairman of the Obama and

:01:11. > :01:17.become the next chairman of the Federal Reserve in January. However,

:01:17. > :01:20.in recent days several democratic senators made it clear they would

:01:20. > :01:25.vote against him if he was elected by Obama. Many now predict it's more

:01:25. > :01:27.likely that the current Fed Vice President Janet Yellen will get the

:01:27. > :01:30.job, marking the first woman to do job, marking the first woman to do

:01:30. > :01:35.so. Sharanjit Leyl is so. Sharanjit Leyl is live in

:01:35. > :01:49.Singapore for us now. A look at Singapore for us now. A look at the

:01:49. > :01:52.market reaction. What is going on? Larry Summers pulling out of the

:01:52. > :01:59.race is boosting shares. He was seen to be much tougher on tightening

:01:59. > :02:03.monetary policy. There is a sense of relief amongst investors who believe

:02:03. > :02:12.that the other contender is less likely to withdraw economic stimulus

:02:12. > :02:19.as quickly. We are seeing games right across Asia. Australia's share

:02:19. > :02:23.index rising to a five—year high. Many other markets are higher as

:02:23. > :02:29.well. The US dollar weakened against most of its counterparts. The saw

:02:29. > :02:30.the South Korean currency going to a the South Korean currency going to a

:02:30. > :03:16.six—month high. now — his company manages nearly

:03:16. > :03:29.at Western Asset Management joins me $500 billion of assets.

:03:29. > :03:35.surprised that he withdrew. surprised that he withdrew.

:03:35. > :03:42.President Obama clearly like him, a think what this episode illustrates

:03:42. > :03:48.is the dimmest ring —— diminishing influence that President Obama has.

:03:48. > :03:59.You sad to see him not run? Not necessarily. They think now we have

:03:59. > :04:05.an obvious choice from a policy perspective. I am not so sure that

:04:05. > :04:10.President Obama will nominate her. He is not have a personal

:04:10. > :04:15.relationship with her. He will try to persuade the former secretary to

:04:15. > :04:25.take the job. Others are speculating that he made have his arm twisted.

:04:25. > :04:29.Peter from familiar with the story —— people familiar with this story

:04:29. > :04:34.say he is not one that job. What you think? Do you think you would go

:04:34. > :04:40.fruit or not? He could leaders not want to be the Federal reserve

:04:40. > :04:48.chair. But stranger things have happened. A former vice—chair, a

:04:49. > :04:53.similar position, is the likely frontrunner if the job is refused.

:04:53. > :05:00.this several reserve and markets. He this several reserve and markets.

:05:00. > :05:02.would be moderate. Wished you think would be moderate. Wished you think

:05:02. > :05:11.the US economy is at, its recovery the US economy is at, its recovery

:05:11. > :05:15.story. Who is best for the job? I think Jana 's yellow. She is three

:05:15. > :05:19.pragmatic and strong. my choice, but I do not get a

:05:19. > :05:38.my choice, but I do not As you can see, we are moving on. We

:05:38. > :05:41.are talking about the event that will take place in a few days time.

:05:41. > :05:44.The people of Germany will head to the polls. Several issues have

:05:44. > :05:46.divided the nation in recent weeks, with immigration policy becoming an

:05:46. > :05:49.increasingly divisive one. Since Germany joined the EU, migrants from

:05:49. > :05:51.around the continent have flooded in to take advantage of work and

:05:52. > :05:56.so—called power house of Europe. so—called power house of Europe.

:05:56. > :05:57.Merkel argues most of these new comers are skilled and help the

:05:57. > :06:02.German economy stay competitive and German economy stay competitive and

:06:02. > :06:04.grow. But Germans are increasingly concerned about competition for

:06:04. > :06:11.and the threat to indigenous and the threat to indigenous

:06:11. > :06:12.culture. But with one in ten voters with origins from outside Germany

:06:12. > :06:19.it's not an easy issue for it's not an easy issue for

:06:19. > :06:20.politicians to tackle. In the first of our special series Tanya Beckett

:06:20. > :06:23.has gone to one city in the has gone to one city in the

:06:23. > :06:29.north—west of the country that's bearing the brunt of the influx.

:06:29. > :06:38.Welcome to Duisberg, Germany's 15th Welcome to Duisberg, Germany's 15th

:06:38. > :06:42.largest city, home to 500,000 people and an economy in the midst of a

:06:42. > :06:47.battle against poverty. This is quite a poor part of Duisberg. In

:06:47. > :06:51.terms of inhabitants, it is a melting pot. You can see that from

:06:51. > :06:56.some of the science and the shops and also the people wandering

:06:56. > :07:00.around. It has quite clearly a well—established Turkish community.

:07:00. > :07:06.That is not unusual for many parts of Germany. More recently, half of

:07:06. > :07:15.the influx is actually from Bulgaria all remaining. They are European

:07:15. > :07:19.citizens. This man is an engineer from Barcelona. In Spain, one in

:07:19. > :07:23.every two young people is unemployed. I prefer staying at home

:07:23. > :07:36.or having a chance to, but I am unemployed. I prefer staying at home

:07:36. > :07:39.getting any reasonable pay or jobs. Ages packed suitcase and left. He

:07:40. > :07:48.task ahead of them. Words may not other newcomers have

:07:48. > :07:49.task ahead of them. Words may not come yet, but the city is working to

:07:49. > :07:54.give these people a voice. A give these people a voice. A

:07:54. > :08:03.response to the problem which this recruitment manager sees as

:08:03. > :08:15.typically German. The German picture is that society works lack of the

:08:15. > :08:20.machine. And the Turkish committee, the belief is then passed on over

:08:20. > :08:27.decades that in Germany, there is opportunity. He was born here in

:08:27. > :08:32.Germany. He is not no one ever life. The Hindu everything you want. The

:08:32. > :08:35.taste of success is already being felt it. Is it enough to feed

:08:35. > :08:43.Germany's new economic dream? Germany's new economic dream?

:08:43. > :08:44.Will squeeze in some other stories. Representatives from the

:08:44. > :08:46.International Monetary Fund, International Monetary Fund,

:08:46. > :08:49.European Commission and European Central Bank have begun their latest

:08:49. > :08:52.audit of Portugal's economic health. A raft of reforms was promised by

:08:52. > :08:57.Portugal's leaders in return for its $102 billion bailout in May 2011.

:08:57. > :08:59.determine whether the country determine whether the country

:08:59. > :09:04.receives its next instalment of bailout funds. It is expected to

:09:04. > :09:07.meet the criteria and the Portuguese government maintain that it is on

:09:07. > :09:09.track to emerge from the bailout programme in June 2014 Angela

:09:09. > :09:10.Merkel's closest political allies, the conservative Christian Social

:09:10. > :09:21.Union, won a another look at the markets. Japan

:09:21. > :09:24.is close to death or there. Elsewhere we have seen gains across

:09:24. > :09:25.the board. Hong the board. Hong Kong is up over 1%

:09:25. > :09:29.of the moment. A lot of that is to of the moment. A lot of that is to

:09:29. > :09:31.do with the situation as far as is next in charge of the Federal

:09:31. > :09:39.currency, the US dollar is reserve in the US. The

:09:39. > :09:40.currency, the US dollar is weakening. That is a quick look at

:09:40. > :09:46.trading day in a couple of hours. trading day in a couple