:00:00. > :00:00.the latest headlines from BBC World News. Now for the latest financial
:00:00. > :00:20.news and World Business Report. The German Finance minister tells
:00:21. > :00:28.the BBC that not only does he want the UK to stay in the EU, but that
:00:29. > :00:30.this will make Europe stronger. Reforming the IMF, The International
:00:31. > :00:33.Monetary Fund face calls that it should break free from the US, its
:00:34. > :00:43.largest shareholder Welcome to World Business Report I'm Alice Baxter.
:00:44. > :00:55.In a minute we'll find out why the Stock exchanges in Hong Kong and
:00:56. > :00:58.Shanghai want to exchange customers. In a rare interview the German
:00:59. > :01:01.finance minister Wolfgang Schaeuble, seen here with Chancellor Angela
:01:02. > :01:05.Merkel, told the BBC's Tanya Beckett that not only does he want the UK to
:01:06. > :01:17.stay in the EU, but that this will make Europe stronger. He also said
:01:18. > :01:19.that the problems of so called 'benefit tourism' can be resolved in
:01:20. > :01:27.Europe, but insists that the principle of the free movement of
:01:28. > :01:33.labour within the EU needs to stay. We need the UK in the EU, of
:01:34. > :01:37.course. I cannot imagine the EU without the UK, and without the
:01:38. > :01:44.leading role in the UK because the UK is indispensable for Europe, and
:01:45. > :01:50.we had to respect the debate in the UK, and respect and accept any
:01:51. > :01:55.British decision is, of course, but we hope, we strongly hope, that the
:01:56. > :02:04.UK will decide to stay in the EU, and once again, we need the stronger
:02:05. > :02:10.role of the UK in the EU. In the UK, migrants from within the EU are
:02:11. > :02:15.no longer offered all of the welfare that people who are British and
:02:16. > :02:20.women in Britain are being offered. Is there a parallel debate in
:02:21. > :02:28.Germany? What do you think of these restrictions? We have to defend the
:02:29. > :02:40.freedom of movement for people to work in the EU. We need
:02:41. > :02:44.immigration. We can do it, if we make European law in the way that it
:02:45. > :02:50.is clear that you have freedom to work. You can't ask the social
:02:51. > :02:59.assistance in the member states that you choose. If you need social
:03:00. > :03:05.assistance, the responsibility is of your Homestead. And we will give you
:03:06. > :03:08.more from that interview with Wolfgang Schaeuble, including his
:03:09. > :03:10.views on the Eurozones's road to recovery, throughout the day here on
:03:11. > :03:16.World Business Report. Plans to reform the IMF have stalled because
:03:17. > :03:19.of a divided US Congress. There are signs the group of 20 leading
:03:20. > :03:24.economies are ready to leave US behind. They are set to discuss the
:03:25. > :03:27.issue this Friday on the sidelines of the IMF and World Bank spring
:03:28. > :03:36.meeting. Michelle Fleury reports from Washington. The head of the
:03:37. > :03:42.International monetary fund, here with her new friend, Joe Hockey,
:03:43. > :03:47.this years chairman of the due 20 leading economies, expressing the
:03:48. > :03:52.group 's frustration at IMF reforms agreed in 2010 are being blocked by
:03:53. > :03:58.the American Congress. Having to finalise this issue diminishes
:03:59. > :04:03.America's global standing rather than enhance it. As a close friend
:04:04. > :04:07.of the United States, we will always call it as we see it from Australia.
:04:08. > :04:13.In relation to the reforms of the IMF, this from the United States is
:04:14. > :04:17.letting everyone down. Some say the IMF should consider breaking free
:04:18. > :04:20.from the US, the largest shareholder. A suggestion that the
:04:21. > :04:25.head of the IMF greeted with caution at the start of the meeting. I do
:04:26. > :04:36.not think our institution should move to plan B until we have full
:04:37. > :04:41.certainty and massive disappointment that plan a is definitely dead. I am
:04:42. > :04:45.not prepared to declare that at this point. Insight here, this support
:04:46. > :04:52.reforms that would increase the voting power of emerging markets and
:04:53. > :04:58.boost the resources of the IMF. But, the Obama administration is has
:04:59. > :05:00.not done enough to persuade Republicans in the House of
:05:01. > :05:05.Representatives. They have the idea that if they make large loans, there
:05:06. > :05:10.is more of a risk to the United States taxpayer than before. Now,
:05:11. > :05:15.the IMF is lending on a scale that has never left before. The sense of
:05:16. > :05:21.shared responsibility that led America to create the IMF at the end
:05:22. > :05:23.of World War II is wearing away. Few politicians in Washington seem
:05:24. > :05:30.troubled by America's failure to live up to the promises. But it is
:05:31. > :05:34.not only the IMF is stands to lose. America wants support for some of
:05:35. > :05:44.its priorities, it may find it is not bad. `` the next time America
:05:45. > :05:46.wants support. China unveiled a plan Thursday to give foreign investors
:05:47. > :05:49.greater access to its stock market by allowing investors in Shanghai
:05:50. > :05:59.and Hong Kong to trade shares on each other's exchanges. ``not there.
:06:00. > :06:05.Sharanjit Leyl is in our Asia business hub in Singapore. It is
:06:06. > :06:08.being called something of a breakthrough, this is according to
:06:09. > :06:12.the chairman of the Hong Kong exchange, it is essentially a
:06:13. > :06:17.crucial reform to open up China's capital markets. They want to boost
:06:18. > :06:18.stock market ties with Hong Kong. This will essentially allow
:06:19. > :06:23.cross`border stock investments between Hong Kong and Shanghai. It
:06:24. > :06:29.would allow mainland investors to trade shares in designated Hong Kong
:06:30. > :06:32.listed firms at the same time Hong Kong investors would be allowed to
:06:33. > :06:37.buy shares in companies listed in Shanghai. It's a pilot project that
:06:38. > :06:40.will launch after a preparation period of six months, and during a
:06:41. > :06:45.trial period, Hong Kong investment in Chinese stocks will be limited to
:06:46. > :06:51.a daily quarter of about $2 billion worth. The main and investment will
:06:52. > :06:56.be limited to just less than that. The pilot scheme will also be
:06:57. > :07:01.limited to companies and dual listed in Shanghai and Hong Kong, as well
:07:02. > :07:05.as other selected blue`chip companies. There are some challenges
:07:06. > :07:10.to this. We know that China's stocks have been undervalued for a number
:07:11. > :07:15.of years. This may not appeal to outside investors. Although, I spoke
:07:16. > :07:20.to an analyst who said that letting Hong Kong go in there and putting
:07:21. > :07:26.money into Chinese stocks could help to boost those valuations. That is
:07:27. > :07:36.one upside to this tie`up. It was announced hours after the Chinese
:07:37. > :07:42.Premier allowed conditions to open up capital markets in mainland China
:07:43. > :07:49.and Hong Kong. He made those comments at the bow of Forum for
:07:50. > :07:54.Asia in China, that is currently going on. Some of the reforms that
:07:55. > :08:00.China has made, they have loosened their grip on the Chinese currency
:08:01. > :08:07.as well. They are trying to help the internationalisation of the Chinese
:08:08. > :08:11.currency. Part of this is a whole slew of reforms in opening up
:08:12. > :08:23.Chinese capital markets. A lot of news coming from China today. Thank
:08:24. > :08:26.you. In other news, we stay with China for a moment and fresh data
:08:27. > :08:29.that shows consumer prices on the Mainland rising 2.4% in March from a
:08:30. > :08:32.year earlier, much in line with analysts expectations for a rise of
:08:33. > :08:35.2.5% for the month. Producer prices also moved in line with
:08:36. > :08:41.expectations, falling for the month of March from a year earlier by
:08:42. > :08:44.2.3%. General Motors has put two engineers on paid leave over the
:08:45. > :08:49.automaker's deadly ignition switch recall. The company also revealed
:08:50. > :08:58.that costs from the scandal could soar to $1.3 billion. GM chief
:08:59. > :09:01.executive Mary Barra announced the first disciplinary personnel action
:09:02. > :09:04.stemming from the company's internal probe of the circumstances leading
:09:05. > :09:10.to the delayed recall of 2.6 million older model cars. Activist investor
:09:11. > :09:13.Carl Icahn has dropped his call for eBay to sell its payments business,
:09:14. > :09:16.PayPal.The billionaire had been trying to gather support for the
:09:17. > :09:23.proposed split before the e`commerce giant's annual shareholder meeting
:09:24. > :09:26.in May. But Mr Icahn, who first made the call in January, said it had
:09:27. > :09:36.become clear that several major shareholders would not back the
:09:37. > :09:41.plan. Let's have a look at the markets. These are the Asian
:09:42. > :09:44.markets. We can see mostly down across the board, especially in
:09:45. > :09:48.Japanese shares. Syncing to a six`month low on Friday. A sell`off
:09:49. > :09:52.on Wall Street spread to Asia, too resilient markets, up until now.
:09:53. > :10:06.From me and the team, goodbye for now. Christmas Eve chaos after
:10:07. > :10:09.flooding at Gatwick airport last year should be a wake`up call to
:10:10. > :10:13.airports across the UK, according to a committee of MPs. More than 11,000
:10:14. > :10:17.passengers were hit by delays and cancellations. Ministers say more
:10:18. > :10:20.should have been done to make sure customers have basics such as food
:10:21. > :10:21.and water if there are problems in the future. Here's our transport
:10:22. > :10:23.correspondent Richard