:00:00. > :00:00.latest headlines from BBC World News. Now for the latest financial
:00:00. > :00:25.news with Alice Baxter and World Business Report.
:00:26. > :00:30.Poor credit, no problem. Subprime lending is booming again, but are
:00:31. > :00:39.the banks storing up another crisis? Plus, have US employers put the
:00:40. > :00:42.bleak winter behind them? Markets await the latest jobs numbers.
:00:43. > :00:51.Welcome to World Business Report I'm Alice Baxter. Brazil tries to drag
:00:52. > :00:55.its airports into the 21st century, but will they be ready for the World
:00:56. > :00:58.Cup? But first, not so long ago "subprime" was a word to strike fear
:00:59. > :01:02.into the hearts of bankers everywhere. Risky mortgage lending
:01:03. > :01:05.to people with poor credit ratings ` who eventually defaulted on their
:01:06. > :01:09.debt `was the main trigger of the 2008 financial crisis. But are the
:01:10. > :01:12.banks back to their old ways? Subprime lending is booming once
:01:13. > :01:19.again in the US ` not for home loans, but for cars. According to
:01:20. > :01:22.the credit agency Experian, the total amount owed on car finance in
:01:23. > :01:26.the US had risen to $750 billion by late last year An estimated 36% of
:01:27. > :01:29.those loans have been made to subprime borrowers. So are the banks
:01:30. > :01:36.storing up serious trouble for the future ` and maybe even another
:01:37. > :01:49.financial crisis? Michelle Fleury reports from New York.
:01:50. > :01:51.This is the famous baseball stitch. This man owns multiple Karsh
:01:52. > :01:57.dealerships in New Jersey. He has been in the business for nearly four
:01:58. > :02:02.decades. Sales in 2014 are at great pace `` multiple car dealerships.
:02:03. > :02:07.There is the easy availability of finance now, thanks to the return of
:02:08. > :02:13.sub`prime lending. That is loans to people with poor credit. Loans to
:02:14. > :02:16.car buyers with sub`prime credit scores of 650 points or below have
:02:17. > :02:21.been rising significantly since the recession. In 2013, they accounted
:02:22. > :02:27.for more than a quarter of new car financing. Loans to people with
:02:28. > :02:31.credit scores below 450, so`called deep prime, have been on the
:02:32. > :02:38.increase, and Steve, it a mixed blessing. I am quite happy, but
:02:39. > :02:42.long`term, if something is not good, it is not good. We saw that with the
:02:43. > :02:47.housing crisis. Are we at that point yet? We are quite a distance from
:02:48. > :02:52.that point in time where the alarm bells had to go off, but we should
:02:53. > :02:57.be turning up the volume a bit more and listening. It was mortgage
:02:58. > :03:00.lending to people at higher risk of not repaying their debt that nearly
:03:01. > :03:08.dished Drogba financial system in 2007. Why is something considered by
:03:09. > :03:13.some as toxic making a comeback? One factor is low interest rates.
:03:14. > :03:17.Investors need higher returns, one area to find that is lending money,
:03:18. > :03:22.with people with lower credit scores. In this situation, Wall
:03:23. > :03:27.Street packages are sold to investors, who can make more money
:03:28. > :03:32.down the road and are willing to take more of a risk. In many parts
:03:33. > :03:36.of the country, a car is vital to get around. As the economy
:03:37. > :03:41.recovers, auto shows are retracting huge numbers of eager buyers, who in
:03:42. > :03:47.turn, are attracting huge amounts of risky loans. What could possibly go
:03:48. > :03:56.wrong? What indeed? Meanwhile the big
:03:57. > :03:58.question for financial markets this Friday, how strongly is the US
:03:59. > :04:02.economy recovering, after the severe winter weather brought growth to a
:04:03. > :04:12.halt? Optimistic comments from the Federal Reserve pushed US shares to
:04:13. > :04:15.new records earlier this week. So investors will be looking for signs
:04:16. > :04:17.of Spring in the latest monthly employment numbers, known as the
:04:18. > :04:20.non`farm payrolls. Employers are expected to have created 210,000 new
:04:21. > :04:23.jobs in April, according to economists polled by Reuters. That
:04:24. > :04:26.would be the best month since November, and enough to bring down
:04:27. > :04:36.America's jobless rate to 6.6 per cent. Those figures are out at 0830
:04:37. > :04:46.Eastern Time or 12.30 GMT and we will bring you them as soon as they
:04:47. > :04:52.are published. Well, here copied who? Apple and Samsung could get the
:04:53. > :04:56.verdict on their patent cases as early as this weekend. They have
:04:57. > :05:00.been battling it out in the Californian court over the past
:05:01. > :05:06.month. It is the battle of the titans. Let's get the details from
:05:07. > :05:11.Singapore. Can you remind us of the background to all of this? You would
:05:12. > :05:15.not want to be the judge in this case. For the non` technology
:05:16. > :05:20.expert, it is a classic he says, she says. There are a lot of
:05:21. > :05:24.technological arguments underpinning the claims and counterclaims. Last
:05:25. > :05:29.time these two clashed, the focus was on the look of the iPhone, Apple
:05:30. > :05:33.accused Samsung of copying the look. It is not the outside of the phone
:05:34. > :05:36.but inside the phone this time. Apple claims that Samsung made
:05:37. > :05:42.themselves a top player in smart phones by copying feature of the
:05:43. > :05:51.feature of the iPhone. It says ten Samsung devices in French of its
:05:52. > :05:56.patents last `` in French ten of its patents. That is worth $2 billion.
:05:57. > :06:07.Samsung says that you cannot copy something that is not there. ``
:06:08. > :06:14.infringed. Samsung also say that for Apple devices, including the iPhone
:06:15. > :06:19.five, in fumes to have its patents. `` in French. One thing that we can
:06:20. > :06:22.save sure is that whatever happens in this case, they will probably
:06:23. > :06:31.take their case to another court in another country and it will not
:06:32. > :06:37.over. ``infringe. I think it will not be over for some time! Thank
:06:38. > :06:39.you. All this week we've been looking at the challenges facing
:06:40. > :06:44.Brazil's economy as it prepares to host the World Cup. With more than
:06:45. > :06:46.600,000 fans expected to head to the tournament in just over a month's
:06:47. > :06:50.time, it'll be Brazil's airports that will give visitors their first
:06:51. > :06:54.taste of the country ` for good or bad. There has been major investment
:06:55. > :07:00.` but has it all been left too late? Katy Watson reports in the last of
:07:01. > :07:04.her series. The corporate video proudly shows
:07:05. > :07:09.off what the new international passenger terminal will look like at
:07:10. > :07:13.Brazil's busiest airport. This is the reality just a couple of weeks
:07:14. > :07:18.ago. People working around the clock to finish the terminal by the middle
:07:19. > :07:21.of May. The airport is adamant it will be ready but the capacity will
:07:22. > :07:26.be a fraction of the 12 million people it promises in the end. Just
:07:27. > :07:31.a few airlines will be using this during the World Cup. Delays like
:07:32. > :07:34.this are not uncommon. Some airports have announced they will be using
:07:35. > :07:38.temporary facilities during the tournament. Long before Brazil was
:07:39. > :07:41.awarded the World Cup, outdated airports in this country were a huge
:07:42. > :07:47.problem. Passenger growth has soared in the past few years. In 2007, when
:07:48. > :07:50.Brazil made the winning bid, big promises were made to upgrade
:07:51. > :07:55.airports around the country, but that was seven years ago, and people
:07:56. > :08:06.asking why, the last minute, so much work has to be done? This man this
:08:07. > :08:11.airport was one of the first to be handed over to a private company.
:08:12. > :08:19.The problem has been that the recent government has seen Private
:08:20. > :08:23.investment in infrastructure as a necessary evil. Therefore,
:08:24. > :08:27.concessions have been granted, very slowly. Much slower than they should
:08:28. > :08:32.have been. That has an impact on people travelling through airports
:08:33. > :08:39.already at full capacity. Some are a bit fed up. TRANSLATION: The apples
:08:40. > :08:44.and Brazil are rubbish. `` airports in Brazil. They are chaotic, we are
:08:45. > :08:47.approaching the World Cup, the Apple II Brio is like one in a small town.
:08:48. > :08:57.They have been building for some time and nothing works. `` the
:08:58. > :09:03.airport in Rio. But it is believed there can be one glimmer of hope for
:09:04. > :09:10.passengers. There will be less people flying at that time. Why? 70%
:09:11. > :09:18.of the traffic in the Brazilian industry is related to business.
:09:19. > :09:23.People fly because the business and events, meetings, and so on. This
:09:24. > :09:29.activity is going to vanished in the games. If that happens, it will be a
:09:30. > :09:33.welcome relief, and then, once the fans leave the airport, they will
:09:34. > :09:37.have to battle with the roads to the stadiums, in some places, they also
:09:38. > :09:54.work in progress. Katie Watson, BBC News. In other news, Pfizer is
:09:55. > :09:57.preparing to raise its takeover bid for UK rival AstraZeneca to more
:09:58. > :10:00.than 63 billion pounds, or $106 billion, according to a report by
:10:01. > :10:04.Bloomberg. A deal would be the biggest ever in the drugs industry `
:10:05. > :10:07.and the biggest foreign takeover of a UK firm. Royal Bank of Scotland is
:10:08. > :10:10.expected to report a quarterly profit later this morning. RBS is 81
:10:11. > :10:14.per cent owned by the UK taxpayer after a massive bailout during the
:10:15. > :10:15.2008 crisis. It has racked up some 46 billion pounds in losses since
:10:16. > :10:19.then. Let's have a look at the markets
:10:20. > :10:29.around the world, open today after being shot for Labour day yesterday.
:10:30. > :10:41.From me and the team, goodbye for now.
:10:42. > :10:47.School children have been asked to cook a meal that's out of this world
:10:48. > :10:50.for British astronaut Tim Peake. The UK Space Agency is looking for
:10:51. > :10:53.pupils to come up with the best British dish for his mission to the
:10:54. > :10:56.International Space Station next year. Celebrity chef Heston
:10:57. > :10:57.Blumenthal will help turn the winning ideas