:00:00. > :00:00.Chiellini on Tuesday, a decision is expected today. Those are the latest
:00:00. > :00:00.headlines from BBC News. Now for the latest financial news, Alice Baxter
:00:00. > :00:29.and World Business Report. A dark pool full of predators.
:00:30. > :00:34.Barclays is charged with fraud. 1 billion users can't be wrong. And
:00:35. > :00:42.now Google wants to bring Android to a wristwatch near you. A warm
:00:43. > :00:47.welcome to you, this is World Business Report with me, Alice
:00:48. > :00:51.Baxter. Also coming up: The worst quarter for the US economy in five
:00:52. > :00:56.years, but markets are taking it fairly well. We will have an update
:00:57. > :01:00.from Asia. But first we start with Barclays and yet another in what has
:01:01. > :01:04.been a string of blows to the reputation of the global banking
:01:05. > :01:07.giant. Late on Wednesday the New York Attorney General filed fraud
:01:08. > :01:12.charges against the bank, claiming it lied to customers about a
:01:13. > :01:16.sharetrading system it operates. It all centres around something called
:01:17. > :01:25.a dark pool, sounds a bit murky, doesn't it? The stock market in the
:01:26. > :01:28.US is worth 23 trillion US dollars, but these days some 40% of trading
:01:29. > :01:31.in US shares is actually done away from the public markets that most of
:01:32. > :01:36.us know, like the New York Stock Exchange or the NASDAQ, and there's
:01:37. > :01:41.been a huge growth area in private trading venues, known as dark pools.
:01:42. > :01:46.Investors here can trade shares anonymously. There are at least 40
:01:47. > :01:51.of these and Barclays runs one of the biggest. These markets are
:01:52. > :01:56.rigged in favour of high`frequency traders, and they use massive
:01:57. > :02:03.computing power to buy and sell in fractions of a second as soon as
:02:04. > :02:07.news is released. They profit at the expense of big institutions like
:02:08. > :02:12.pension funds that can't keep up. Barclays told investors they were
:02:13. > :02:19.diving into safe waters, according to the lawsuit, when the dark pool
:02:20. > :02:25.was" Full of predators there at Barclays' invitation" .
:02:26. > :02:31.In the lawsuit filed on Wednesday in New York, the state Attorney General
:02:32. > :02:35.alleges that Barclays misled its clients and investors by telling
:02:36. > :02:47.them that their private trading platforms, so`called dark pools, had
:02:48. > :02:50.safeguards within them to protect against predatory and aggressive
:02:51. > :02:55.types of high`frequency traders. But the investigation by US regulators
:02:56. > :02:57.has uncovered that Barclays not only favoured high`frequency traders, but
:02:58. > :03:04.they actively courted them by giving them systemically advantage is over
:03:05. > :03:08.others. The lawsuit also alleges that although Barclays told its
:03:09. > :03:12.clients, they didn't favour their private trading platforms over other
:03:13. > :03:25.trading venues, the exact opposite was found to be true `` systematic
:03:26. > :03:28.advantages. Dark pools and high`frequency trading have both
:03:29. > :03:33.come under scrutiny by US regulators. The private exchanges
:03:34. > :03:37.operate outside the public realm, and many would like to see them have
:03:38. > :03:47.to disclose more information than they already do. As US markets have
:03:48. > :03:50.become more water make it, high`frequency trading now makes up
:03:51. > :04:01.more than half of all the US's overall trading volume. Google has
:04:02. > :04:06.kicked off its annual conference for software developers. They say 1
:04:07. > :04:10.billion people are using android. In the future it hopes it won't just be
:04:11. > :04:16.smart phones and tabloids using Android, but watches, TVs and even
:04:17. > :04:30.cars. Richard Taylor is at the event, where he has been getting a
:04:31. > :04:35.preview of Android Tim Mack one. They say they will make the android
:04:36. > :04:42.system easy for people to make apps `` Android wear. David, take me
:04:43. > :04:51.through what the smart watch is that you're wearing. This is a Samsung.
:04:52. > :04:59.It has a display that shows me what I need to know right now. What about
:05:00. > :05:03.the battery? It lasts all day. It combines information from Google
:05:04. > :05:09.Now. Your predictive service? Absolutely. Applications running on
:05:10. > :05:13.my phone and the step counter running on the wearable itself. The
:05:14. > :05:17.market for smart watches hasn't been proven until now, there's a lot of
:05:18. > :05:20.excitement but so far the only watches that have done well have
:05:21. > :05:21.been the fitness tracker watches, not the all`encompassing
:05:22. > :05:27.notification engine. That's got to be a bit of a worry? One thing I'm
:05:28. > :05:31.excited about is today we've made a software capability kit available
:05:32. > :05:34.for developers and there are hundreds of thousands of developers
:05:35. > :05:38.working with android on phones and tablets, and they will be able to
:05:39. > :05:43.use the same expertise they already have two develop services for this
:05:44. > :05:48.new form. The thing is, a two inch screen is not as compelling as a
:05:49. > :05:53.five inch screen a few feet away in your pocket for a lot of things. For
:05:54. > :05:56.a lot of services, just being able to capture your attention for a
:05:57. > :06:00.second and give you what unique at a glance is much more compelling.
:06:01. > :06:03.Since I've been using this device and others like it there are kinds
:06:04. > :06:07.of times during the day where I might have missed a message,
:06:08. > :06:15.sometimes my phone would ring in my pocket and I wouldn't know a call
:06:16. > :06:17.was coming in. But having my wrist buzz, to say who it is, has been
:06:18. > :06:22.transformative and I have really enjoy using it. You showed today the
:06:23. > :06:27.synchronisation between phone and watch, but all the technologies have
:06:28. > :06:30.got to work well, the sinking didn't in the keynote, and the voice
:06:31. > :06:34.recognition has to work really well because if it's not compelling
:06:35. > :06:38.people will turn to their smart phones. The synchronisation works
:06:39. > :06:43.incredibly well. We showed demos during the keynote of applications
:06:44. > :06:47.from a developer where I was able to keep the recipe on my phone in sync
:06:48. > :06:53.with the directions I was seeing on my wrist. We also know that voice
:06:54. > :06:59.recognition is extremely convenient in your car or when you're on your
:07:00. > :07:05.own, but we have the ability to do things by touch. If I want to set an
:07:06. > :07:09.alarm I can do it by touching 1's. Thanks very much. The various
:07:10. > :07:15.watches sporting Android go on sale this week, let's see what they do in
:07:16. > :07:19.the market `` once. Let's go to Asia where markets are digestive and the
:07:20. > :07:23.worst quarter for the US economy in five years and it seems they are
:07:24. > :07:26.putting a positive spin on it. Lets talk to Sharanjit Leyl in
:07:27. > :07:31.Singapore. Is that a fair assessment? It is, Alice. It's
:07:32. > :07:36.interesting, we were just hearing about technology there and those
:07:37. > :07:41.technology shares are pushing Asian shares higher. Also, believe it or
:07:42. > :07:45.not, something of a positive spin on the US date because there is
:07:46. > :07:50.optimism that interest rates will continue to stay low after the US
:07:51. > :07:57.posted that bigger contraction than first reported for its first quarter
:07:58. > :08:02.growth data `` US data because. Part if it is due to the possibility of
:08:03. > :08:08.mergers and tieups pushing stocks higher. In Japan Yahoo isn't rising
:08:09. > :08:13.after it acquired the credit and financial operations of a credit
:08:14. > :08:20.card firm. A Japanese on online retailer has risen 3% after it was
:08:21. > :08:25.in talks to invest in a discount airline with Malaysia's Air Asia.
:08:26. > :08:30.And in Taipei, in a luxe, the maker of monitors, those shares are
:08:31. > :08:35.jumping as leading games. Shares are higher across the region. In China
:08:36. > :08:40.you have three Chinese firms soaring in their shins and stock exchange
:08:41. > :08:43.debuts today, they were the first mainland listings in over three
:08:44. > :08:48.months and they showed healthy investor appetite. That poor reading
:08:49. > :08:53.on the US economy for the first quarter is also pushing down the US
:08:54. > :08:55.dollar, while giving a lift to most commodities and resource related
:08:56. > :09:00.currencies. Asian shares remaining buoyant. Sharanjit, thanks very
:09:01. > :09:09.much. A bit of other news now in brief
:09:10. > :09:11.this Thursday: The Bank of England publishes its twice yearly financial
:09:12. > :09:14.stability report later and the focus will be on any moves to cut soaring
:09:15. > :09:18.UK house prices after Governor Mark Carney warned the housing market is
:09:19. > :09:24.the biggest domestic threat to financial stability. US drugmaker
:09:25. > :09:30.AbbVie has urged Shire Pharmaceuticals to enter takeover
:09:31. > :09:34.talks, saying it is willing to move quickly and cooperatively to get a
:09:35. > :09:38.deal. The Irish firm, whose shares are listed in London, has repeatedly
:09:39. > :09:43.rejected AbbVie's bid, now worth $46 billion. Both company bosses will
:09:44. > :09:48.meet US investors over the next two days. A quick look to see how those
:09:49. > :09:53.Asian markets are doing as Sharanjit was saying. They are climbing,
:09:54. > :10:00.boosted by bargain hunter and up positively from Wall Street, despite
:10:01. > :10:06.that worse than expected US contraction. `` bargain`hunting.
:10:07. > :10:18.From me and the team, that's all for now is our. `` that's all for now
:10:19. > :10:25.this our. How much does the monarchy cost?
:10:26. > :10:26.Buckingham Palace's accounts show it is 56p for every person in