16/09/2013 World Business Report

Report. Summers steps aside — he was

favourite to take on the biggest banking job in the world, but

political pressure makes Larry Summers pull out of the Federal

Reserve leadership battle. Immigration policies split the vote

— with just days to go until the — with just days to go until the

German election we head to Duisberg, a town that's divided by its migrant

population. a town that's divided by its migrant

Welcome to World Business Report. Welcome to World Business Report.

I'm Sally Bundock. Also in the programme: financial markets react

to Summers stepping to Summers stepping out of the race

to run the Fed. The front runner for the so—called

top job in global banking has pulled top job in global banking has pulled

out of the race. Lawrence Summers, a former top economic aide to Barack

become the next chairman of the Obama and

become the next chairman of the Federal Reserve in January. However,

in recent days several democratic senators made it clear they would

vote against him if he was elected by Obama. Many now predict it's more

likely that the current Fed Vice President Janet Yellen will get the

job, marking the first woman to do job, marking the first woman to do

so. Sharanjit Leyl is so. Sharanjit Leyl is live in

Singapore for us now. A look at Singapore for us now. A look at the

market reaction. What is going on? Larry Summers pulling out of the

race is boosting shares. He was seen to be much tougher on tightening

monetary policy. There is a sense of relief amongst investors who believe

that the other contender is less likely to withdraw economic stimulus

as quickly. We are seeing games right across Asia. Australia's share

index rising to a five—year high. Many other markets are higher as

well. The US dollar weakened against most of its counterparts. The saw

the South Korean currency going to a the South Korean currency going to a

six—month high. now — his company manages nearly

at Western Asset Management joins me $500 billion of assets.

surprised that he withdrew. surprised that he withdrew.

President Obama clearly like him, a think what this episode illustrates

is the dimmest ring —— diminishing influence that President Obama has.

You sad to see him not run? Not necessarily. They think now we have

an obvious choice from a policy perspective. I am not so sure that

President Obama will nominate her. He is not have a personal

relationship with her. He will try to persuade the former secretary to

take the job. Others are speculating that he made have his arm twisted.

Peter from familiar with the story —— people familiar with this story

say he is not one that job. What you think? Do you think you would go

fruit or not? He could leaders not want to be the Federal reserve

chair. But stranger things have happened. A former vice—chair, a

similar position, is the likely frontrunner if the job is refused.

this several reserve and markets. He this several reserve and markets.

would be moderate. Wished you think would be moderate. Wished you think

the US economy is at, its recovery the US economy is at, its recovery

story. Who is best for the job? I think Jana 's yellow. She is three

pragmatic and strong. my choice, but I do not get a

my choice, but I do not As you can see, we are moving on. We

are talking about the event that will take place in a few days time.

The people of Germany will head to the polls. Several issues have

divided the nation in recent weeks, with immigration policy becoming an

increasingly divisive one. Since Germany joined the EU, migrants from

around the continent have flooded in to take advantage of work and

so—called power house of Europe. so—called power house of Europe.

Merkel argues most of these new comers are skilled and help the

German economy stay competitive and German economy stay competitive and

grow. But Germans are increasingly concerned about competition for

and the threat to indigenous and the threat to indigenous

culture. But with one in ten voters with origins from outside Germany

it's not an easy issue for it's not an easy issue for

politicians to tackle. In the first of our special series Tanya Beckett

has gone to one city in the has gone to one city in the

north—west of the country that's bearing the brunt of the influx.

Welcome to Duisberg, Germany's 15th Welcome to Duisberg, Germany's 15th

largest city, home to 500,000 people and an economy in the midst of a

battle against poverty. This is quite a poor part of Duisberg. In

terms of inhabitants, it is a melting pot. You can see that from

some of the science and the shops and also the people wandering

around. It has quite clearly a well—established Turkish community.

That is not unusual for many parts of Germany. More recently, half of

the influx is actually from Bulgaria all remaining. They are European

citizens. This man is an engineer from Barcelona. In Spain, one in

every two young people is unemployed. I prefer staying at home

or having a chance to, but I am unemployed. I prefer staying at home

getting any reasonable pay or jobs. Ages packed suitcase and left. He

task ahead of them. Words may not other newcomers have

task ahead of them. Words may not come yet, but the city is working to

give these people a voice. A give these people a voice. A

response to the problem which this recruitment manager sees as

typically German. The German picture is that society works lack of the

machine. And the Turkish committee, the belief is then passed on over

decades that in Germany, there is opportunity. He was born here in

Germany. He is not no one ever life. The Hindu everything you want. The

taste of success is already being felt it. Is it enough to feed

Germany's new economic dream? Germany's new economic dream?

Will squeeze in some other stories. Representatives from the

International Monetary Fund, International Monetary Fund,

European Commission and European Central Bank have begun their latest

audit of Portugal's economic health. A raft of reforms was promised by

Portugal's leaders in return for its $102 billion bailout in May 2011.

determine whether the country determine whether the country

receives its next instalment of bailout funds. It is expected to

meet the criteria and the Portuguese government maintain that it is on

track to emerge from the bailout programme in June 2014 Angela

Merkel's closest political allies, the conservative Christian Social

Union, won a another look at the markets. Japan

is close to death or there. Elsewhere we have seen gains across

the board. Hong the board. Hong Kong is up over 1%

of the moment. A lot of that is to of the moment. A lot of that is to

do with the situation as far as is next in charge of the Federal

currency, the US dollar is reserve in the US. The

currency, the US dollar is weakening. That is a quick look at

trading day in a couple of hours. trading day in a couple