:00:00. > :00:32.clear a system of pay—outs were delayed or cancelled flights. ——
:00:32. > :00:54.China ups the pressure on the US to get its financial house in order.
:00:54. > :01:01.We start with a very big news that we would usually —— were previewing
:01:01. > :01:02.for you yesterday. President Obama nominated Janet Yellen as the next
:01:02. > :01:09.head of the US Federal reserve. nominated Janet Yellen as the next
:01:09. > :01:11.approved, which looks likely, she will become the first woman to have
:01:12. > :01:17.the world 's most powerful central markets, but as we report, not
:01:17. > :01:25.He knows what it is like having markets, but as we report, not
:01:25. > :01:30.shoulders. She is about to find markets, but as we report, not
:01:30. > :01:34.67 —year—old Janet Yellen has been lined up to run the central bank of
:01:34. > :01:37.the world 's largest economy. Her decisions will reverberate around
:01:37. > :01:40.the globe, affecting us all. She made it clear whether priorities
:01:40. > :01:46.lie. Many Americans still cannot find a job and worry how they will
:01:46. > :01:55.pay their bills and provide for their families. The Federal reserve
:01:55. > :01:58.effectively. The daughter of a doctor and teacher from Brooklyn,
:01:58. > :02:03.she has served at the third longer than any other senior official.
:02:03. > :02:07.she has served at the third longer has been the number to there since
:02:07. > :02:14.2010. Back in the 90s she chat Bill impressive academic career as a
:02:14. > :02:15.professor at Berkeley and holding teaching positions at Harvard and
:02:15. > :02:20.the London School of economics. teaching positions at Harvard and
:02:20. > :02:24.to Wall Street to make loads of spent her time between this place
:02:24. > :02:25.to Wall Street to make loads of money and the Democrats like that.
:02:25. > :02:32.There is something of a keen on money and the Democrats like that.
:02:32. > :02:34.— that it has the job of balancing unemployment and inflation. She
:02:34. > :02:38.— that it has the job of balancing or is put the stress on policies
:02:38. > :02:39.that create jobs. Her husband won the Nobel Prize for economics in
:02:39. > :02:53.Keynesians. He has been a consistent advocate that when unemployment
:02:53. > :03:03.Keynesians. He has been a consistent high that is one of the main points
:03:03. > :03:09.think what she will bring is a kind lacking in the years before the
:03:09. > :03:11.crisis. The markets seem to like her as well, bouncing back this morning.
:03:11. > :03:14.Many think she will put on hold as well, bouncing back this morning.
:03:14. > :03:18.plan is to reduce the amount of money they are pumping into the
:03:18. > :03:19.plan is to reduce the amount of economy. The thought of a cutback
:03:19. > :03:24.makes them nervous. If it happened it could shape —— sent shockwaves
:03:24. > :03:28.around the world. Not everyone will be pleased with her though. If
:03:28. > :03:33.you're in the Senate voted against forgetting her current job and they
:03:33. > :03:36.will be more nervous now. Flooding the financial system with liquidity
:03:36. > :03:40.is always popular. It is when you take the punchbowl away. I think she
:03:40. > :03:45.has the fortitude to do that is necessary. The question is will
:03:45. > :03:47.has the fortitude to do that is I am a sceptic that when the time
:03:47. > :03:52.comes she is going to make the really hard choices. She has been
:03:52. > :04:04.given a tall order and have started measures adopted that will not
:04:04. > :04:07.bankers from the G 20 are meeting in Washington later ahead of this
:04:07. > :04:15.weekend 's annual meeting of the IMF government services shut down for
:04:15. > :04:18.nine days now and raised fears America could be forced to default
:04:18. > :04:25.discussions. They are joined by on its debts is likely to dominate
:04:25. > :04:30.discussions. They are joined by Sarah Huon. It is true, isn't it
:04:30. > :04:30.that the —— isn't it, that the situation in the US will be pretty
:04:30. > :04:34.much talked about in most of these situation in the US will be pretty
:04:34. > :04:36.much talked about in most of these meetings because it is not just
:04:36. > :04:38.much talked about in most of these deadlock in the budget and the debt
:04:38. > :04:46.appointment. There is so much going ceiling crisis that is around the
:04:46. > :04:48.appointment. There is so much going on, isn't there? There is a huge
:04:48. > :04:52.subjects, even though the G 20 finance ministers are trained to
:04:52. > :04:58.focus on the longer term. What is finance ministers are trained to
:04:58. > :05:05.economy and how can global growth be economy and how can global growth be
:05:05. > :05:08.dominate everywhere else. There economy and how can global growth be
:05:08. > :05:10.immediate concerns, if we reach economy and how can global growth be
:05:10. > :05:14.17th of October without an agreement between converse in the White House
:05:14. > :05:19.then there is a risk of the US defaulting on its debt or at the
:05:19. > :05:25.spending very sharply in order to pay its investors. From the point of
:05:25. > :05:30.view of those going to Washington, i.e. Global finance ministers and
:05:30. > :05:33.central bankers, in terms of the deadlock in Washington there isn't
:05:33. > :05:38.really much they can do about that apart from complain about the impact
:05:38. > :05:40.it is having, I guess? That is really all they can do. There is
:05:40. > :05:43.very little influence, there is really all they can do. There is
:05:43. > :05:49.influence that they can bring on the politicians. I think that they can
:05:49. > :05:57.discuss, probably the scenes, the implications, if there were to be a
:05:58. > :06:02.crunch or get past into late October without an agreement, it could have
:06:02. > :06:05.repercussions for the world 's financial markets. Tell us about the
:06:05. > :06:10.Federal reserve minutes that we financial markets. Tell us about the
:06:10. > :06:20.analysing to get a sense of when tapering might happen will stop
:06:20. > :06:21.analysing to get a sense of when might happen. For —— what is your
:06:21. > :06:25.thinking on when they might pull back the stimulus? I think that
:06:25. > :06:28.thinking on when they might pull will probably wait until March to
:06:28. > :06:30.pull back the stimulus. This could well be one of the first actions
:06:30. > :06:34.that is taken by Janet Yellen in her well be one of the first actions
:06:34. > :06:37.that is taken by Janet Yellen in her new role. The economy is ticking
:06:37. > :06:49.of the current problems is likely to over. It is certainly not forging
:06:49. > :06:53.of the current problems is likely to reduce growth. I don't think the Fed
:06:53. > :06:56.is going to be in any hurry to begin tapering and reduce its quantitative
:06:56. > :07:00.easing. In our view they can afford to wait until March before they
:07:00. > :07:07.here at BBC World News to keep you Thank you very much indeed for your
:07:07. > :07:10.here at BBC World News to keep you across all those events taking place
:07:10. > :07:21.Washington to enter the budget in Washington in the next few days.
:07:21. > :07:29.Washington to enter the budget leaders at the ASEAN summit in
:07:30. > :07:35.The person missing at these summits is Barack Obama, the US President,
:07:35. > :07:44.understand he's getting a talking to the Chinese as Denmark absolutely.
:07:45. > :07:50.The Chinese are very concerned. the Chinese as Denmark absolutely.
:07:50. > :07:55.Premier, who has been diplomatic so far with his views, said that China
:07:55. > :07:58.is indeed paying great attention to the US debt ceiling issue. These
:07:59. > :08:01.remarks from the Chinese leader the US debt ceiling issue. These
:08:01. > :08:07.more pressure on the Americans to resolve the impasse as the mainland
:08:07. > :08:12.is the biggest foreign holder of US Treasuries. His comments add to
:08:12. > :08:14.earlier retreat from the Debbie finance minister who said that
:08:14. > :08:20.America should prevent a default and ensure the security of Chinese
:08:20. > :08:24.investment in US Treasuries. China has become more outspoken about
:08:24. > :08:24.investment in US Treasuries. China this political impasse has affected
:08:24. > :08:27.them. A default could slow down this political impasse has affected
:08:27. > :08:31.slowing Chinese economy. Japan, this political impasse has affected
:08:31. > :08:36.the —— second biggest holder, is also on edge. The Finance Minister
:08:36. > :08:46.said the US must consider the impact cancelled flight in Europe, then you
:08:46. > :08:56.European transport ministers are cancelled flight in Europe, then you
:08:56. > :08:56.European transport ministers are talking in Brussels about how to
:08:56. > :09:08.it forces them to pay out huge sums talking in Brussels about how to
:09:08. > :09:24.a mess. Getting compensation from —— aren't even their fault. The
:09:24. > :09:28.a mess. Getting compensation from to clarify many grey areas. They
:09:28. > :09:35.proportionate and they want to out want to encourage better rerouting
:09:35. > :09:39.proportionate and they want to out clear rights. The fact there are so
:09:39. > :09:41.many European court judgements and challenges overflight regulations
:09:41. > :09:51.and rights would suggest the rules reason is they were first assigned
:09:51. > :09:54.airlines argue they should not be penalised for events beyond their
:09:54. > :10:01.control. If you can imagine an aircraft with 400 passengers on
:10:01. > :10:01.control. If you can imagine an if it encounters a problem and each
:10:01. > :10:09.of those passengers is entitled if it encounters a problem and each
:10:09. > :10:20.600 euros, then we are talking about an event with a potential liability
:10:20. > :10:24.of $250,000. —— 200 50,000 euros. So regulations. If they go for the
:10:24. > :10:26.of $250,000. —— 200 50,000 euros. So generations compensation, airlines
:10:26. > :10:28.may have few incentives to offer a wider risk —— wider range of routes
:10:28. > :10:36.It showed in the markets before wider risk —— wider range of routes
:10:36. > :10:40.say goodbye. A mixed picture in Asia. These markets are in and out
:10:40. > :10:43.of positive territory depending Asia. These markets are in and out
:10:43. > :10:46.what is going on. The Janet Yellen News has helped markets. Very flat