:00:00. > :00:20.headlines from BBC World News. Now for the latest financial news and
:00:20. > :00:27.President Obama will nominate Janet Yellen to be the new chairman of the
:00:27. > :00:31.Federal Reserve. Taking off or permanently grounded? Struggling
:00:31. > :00:40.airline Alitalia in a last—gasp permanently grounded? Struggling
:00:40. > :00:52.for survival. Welcome to world Business Report. Also did we will
:00:52. > :00:59.take a look at a boat in Europe Business Report. Also did we will
:00:59. > :01:02.pilot's owls. The White house has announced President Obama intends to
:01:02. > :01:06.nominate Federal Reserve vice chair Janet Yellen to succeed Ben Bernanke
:01:06. > :01:08.central bank — the most powerful job in world banking. Ms Yellen would be
:01:08. > :01:12.the first woman to lead the Fed in world banking. Ms Yellen would be
:01:12. > :01:16.she'd take over at a pivotal time when there's more grim news for
:01:16. > :01:17.she'd take over at a pivotal time economy. There are growing signs of
:01:17. > :01:25.financial markets being affected by Washington. The main US stock market
:01:25. > :01:32.there's evidence of concern in the market for US government debt. And
:01:32. > :01:36.the grim news doesn't stop there. On International Monetary Fund cut
:01:36. > :01:40.the grim news doesn't stop there. On global growth forecast and warned a
:01:40. > :01:47.seriously damage the world economy. That was on Tuesday. Later today,
:01:47. > :01:49.the Federal Reserve's Open Market Committee releases the minutes of
:01:49. > :01:52.its September meeting — this will reveal more about their concerns
:01:52. > :01:56.start winding down its stimulus that the US economy is too weak
:01:56. > :01:58.start winding down its stimulus programme. And also today, the IMF
:01:58. > :02:00.financial stability, giving its publishes its report on global
:02:00. > :02:18.closer look at the woman who is latest assessment of threats to
:02:18. > :02:20.closer look at the woman who is poised to replace Ben Bernanke
:02:20. > :02:24.to President Obama urging him to the Federal Reserve Last month,
:02:24. > :02:32.that she is seen as someone at the nominate Janet Yellen citing her
:02:32. > :02:35.that she is seen as someone at the peaceful end of the spectrum. She is
:02:35. > :02:39.more committed to bearing down on unemployment, sometimes willing
:02:39. > :02:44.more committed to bearing down on let inflation rise in the bitterly
:02:44. > :02:49.necessary to promote job creation. In the current context of the debate
:02:50. > :02:53.about Federal reserve policy, it suggests that under her leadership,
:02:53. > :02:57.the Fed would move slowly to reduce the stimulus that is putting into
:02:57. > :03:01.the US financial markets. That concern about how the Fed might
:03:01. > :03:04.the US financial markets. That and how quickly it might move has
:03:04. > :03:11.been one of the main things driving leadership suggesting that may be a
:03:11. > :03:12.relatively slow with rural of that effort to stimulate the American
:03:12. > :03:20.recovery. In terms of her being effort to stimulate the American
:03:20. > :03:25.first woman to have this job, if she is confirmed, it is a very striking
:03:25. > :03:30.nomination, arguably this is the most important and influential
:03:30. > :03:36.economic job in the world. No woman has had a central banking job of
:03:36. > :03:41.anything like this kind of stature. There are some women central bank
:03:41. > :03:49.governors, the other major woman Christina guard at the International
:03:49. > :04:09.monetary fund. It really is an unusual and striking development.
:04:09. > :04:10.Last month over 300 Economist 's. Signed an open letter to President
:04:10. > :04:12.Obama urging him to nominate Janet Signed an open letter to President
:04:12. > :04:14.Obama urging him to nominate Janet Yellen citing her consistent good
:04:14. > :04:17.judgement and commitment to reducing unemployment. Laura Tyson was one of
:04:17. > :04:20.those — she's a former colleague of Yellen and also a business and
:04:20. > :04:23.economics Professor at Berkeley University in California. She gave
:04:23. > :04:24.her reaction to the news to our reporter there, Richard Taylor. I
:04:24. > :04:27.think it is to reflect news. We reporter there, Richard Taylor. I
:04:27. > :04:28.a situation where we had a wonderful match of skills and experience and
:04:28. > :04:44.skill and experience is important. match of skills and experience and
:04:44. > :04:46.skill and experience is important. And she is an ideal candidate. She
:04:46. > :04:53.has all the ingredients to be an outstanding Fed chairman. What are
:04:53. > :04:54.displayed since you have known her and around the University and the
:04:54. > :05:04.minded. She is policy oriented. and around the University and the
:05:04. > :05:06.is tough—minded and has a high standard of excellence she brings to
:05:06. > :05:10.everything she does, whether it standard of excellence she brings to
:05:10. > :05:17.written research or standing in front of a classroom. When she gives
:05:17. > :05:22.a speech, people are struck by the amount of content and the rigour and
:05:22. > :05:26.also the clarity. She puts it all Washington, she did not have a lot
:05:26. > :05:32.of public policy experience but Washington, she did not have a lot
:05:32. > :05:34.very high level of research School, rigour and policy in Trieste and
:05:34. > :05:38.communication skills came to be rigour and policy in Trieste and
:05:38. > :05:42.very effective way in a variety rigour and policy in Trieste and
:05:42. > :05:54.roles. She has been portrayed as being one of the duds, would you
:05:54. > :06:00.similar to Ben Bernanke. —— dubs. She has been she has been saying for
:06:00. > :06:06.deep recession with a slow recovery. a long time that we have had a very
:06:06. > :06:07.deep recession with a slow recovery. That monetary policy, aggressive
:06:07. > :06:10.monetary policy has been needed That monetary policy, aggressive
:06:10. > :06:14.help the economy tickets wait out of the great recession. I would not
:06:14. > :06:26.get more now from Dr Chris Oates — the great recession. I would not
:06:26. > :06:28.get more now from Dr Chris Oates — North America Analyst, with Oxford
:06:28. > :06:52.His first choice was Larry Summers. North America Analyst, with Oxford
:06:52. > :06:54.disfavoured Larry Summers. They thought he would have been easy
:06:54. > :06:55.disfavoured Larry Summers. They banks, in terms of regulation and he
:06:55. > :06:59.would not necessarily have been banks, in terms of regulation and he
:06:59. > :07:09.dovish monitor airily. I think Janet Washington will be like a dull.
:07:09. > :07:13.dovish monitor airily. I think Janet announced overnight, you think this
:07:13. > :07:15.is trying to being some calm amidst this US shutdown and debt ceiling
:07:15. > :07:22.drama. It is difficult to bring this US shutdown and debt ceiling
:07:22. > :07:28.to this debt ceiling shutdown. It is quite dramatic and back and forth.
:07:28. > :07:34.But I think that maybe the intent. What you make of her. She had a
:07:34. > :07:37.But I think that maybe the intent. backing from many economists, and
:07:37. > :07:44.influential people in Washington. relationship with Wall Street? It is
:07:44. > :07:49.possible but she will develop one very quickly. But she has been able
:07:49. > :07:52.to macro at the Fed so she knows the job and knows what has been going on
:07:52. > :07:58.between the Fed and Wall Street job and knows what has been going on
:07:58. > :08:07.the quantitative easing programme. Should she be dovish given how the
:08:07. > :08:10.American economy is doing? Because the economy looked to be recovering,
:08:10. > :08:14.she is pulling back on quantitative easing. Data shows that unemployment
:08:14. > :08:24.has not private, job growth has recovered. The most likely outcome
:08:24. > :08:38.of the situation in Washington is that the drag on the economy will be
:08:38. > :08:39.even greater. The storm—clouds are gathering round Alitalia — Italy's
:08:39. > :08:42.loss—making national airline. After gathering round Alitalia — Italy's
:08:42. > :08:44.loss—making national airline. After emergency talks with government
:08:44. > :08:48.officials in Rome, it is now thought to have little more than a week
:08:48. > :08:49.officials in Rome, it is now thought drum up millions of euros in state
:08:49. > :08:50.or private—investor support. Without it, Alitalia risks falling into
:08:50. > :09:17.bankruptcy for the second time. it, Alitalia risks falling into
:09:17. > :09:20.Cassidy: This is not the first time Alitalia has flown into financial
:09:20. > :09:22.headwind, it has been fighting for its financial life were years. It
:09:22. > :09:29.now seems the price for keeping its financial life were years. It
:09:29. > :09:35.flights over Italian skies has finally become too high. Especially
:09:35. > :09:44.remaining 19,000 staff. The wage bill is way ahead of receipts.
:09:44. > :09:49.investors first it in when the airline was rescued from favour
:09:49. > :09:52.investors first it in when the 2009. It cut costs, but since then
:09:53. > :09:56.has accumulated debts of a hundred but in Euros which can not just
:09:56. > :10:01.has accumulated debts of a hundred up. There are worries about fuel
:10:01. > :10:03.supplies because of unpaid bills. The Italian State rail operator
:10:03. > :10:07.supplies because of unpaid bills. been mooted as a possible saviour. A
:10:07. > :10:10.takeover by the part owner in France seems most likely. The plan being
:10:10. > :10:14.bitterly opposed in the country seems most likely. The plan being
:10:14. > :10:17.fears of hundreds more redundancies for ground staff. Commentators
:10:18. > :10:28.acknowledged Italy has much at stake. There is a political economic
:10:28. > :10:31.have seen Alitalia as the flag cover —— carrier for a sleek, if it gets
:10:31. > :10:36.taken over by air France that may still exist but because air France
:10:36. > :10:40.are running the business, the focus shift away from the Italian airports