This is todays worldwide exchange, im ross westgate. Im kelly evans. These are your headlines two Japanese Airlines ground their 787s after a dreamliner makes an Emergency Landing. Transport officials worldwide step up scrutiny as boeings safety troubles escalate. A Helicopter Crashes in central london. Cnbc confirms it happened in the south of the capital. And auto stocks take a hit after europe logged a 17year low in new car registrations in 2012. Down 16 in december alone. It will be a big day for Bank Earnings in the u. S. Reports due out from jpmorgan and Goldman Sachs before the opening bell. All right. Its the middle of the week here on worldwide exchange. We come to you with reports of a Helicopter Crash in london south of the river, vauxhall. We know Emergency Services are attending the situation at the moment. Apparently the helicopter had just the pilot in it. There may well be others involved on the ground. What do you know about the area . Its very close to close to where the new u. S. Embassy is going to be built. A major transport junction, as well. A major transporting junction south of the river, southwest of london, as well. Its not far from actually not far from the heliport, just further down the river. Theres only one commercial helipad in london which i learned during the olympics, barclays helipad. Thats the helipad. Yeah. Barclays had invested to help get capital into the thing and get it up and running. They usually have a handful of charter flights or what would you call a charter flight for a helicopter . The equivalent in and out during the day. The question is whether its related we have very Little Information at this time. Were expecting to get more news throughout the program. As we do well bring you the detail including any images that may come through. Yeah. We will. Meanwhile, other things coming on todays program were in vienna with the governor of australias central bank. This after the spanish Prime Minister said creditor countries in europes core need to do more to stimulate growth for everyone else. Well get the latest from silicon valley. How much will investors like this facebook graphic search . We get the latest updata update after boeing grounded the entire 787 fleet. Well head to new york after Goldman Sachs and jpmorgan report earnings and give you a sense of what to expect. First, japans top two carriers, a a and Japanese Airlines, have granted all their boeing 787s today grounded all their 787s today and tomorrow after an Emergency Landing earlier. This follows a battery fault warning. All passengers and crew were evacuated safely, although five people were slightly injured. Weve been following the story and have more on the line from tokyo. Its a big step for two airlines to ground an entire fleet of planes. What investigations are being carried out, what are they saying about the prognosis for getting them back in the air . It is a big decision as you say. I think at this juncture in this series of events that weve seen on the dreamliner 787, i think the unanimous feeling among analysts i spoke to and of course the passengers and their Airline People that i have spoken to today, their decision was to err on the side of caution. We havent had an update about this incident which took place about nine hours ago in the western part of japan. We still dont know whether or not the smoke was actually caused by a battery malfunction which the airline, Al Nippon Airways is saying the captain was alerted to, that led to the Emergency Landing in japan. For the time being, they have made no statement as to whats going to happen tomorrow. Both Japan Airlines and al nippon have plenty of flights scheduled for tomorrow. We still dont know whether or not theyll be operational. Japan airlines and al nippon are not the only carriers in asia. There are others that have made comments throughout the day. Quantis saying recent incidents do not change any of their plans for the future of the dreamliner 787. Air india, for example, also a big customer for boeing. They, too, have said there have been no changes in their schedules, as well. I think the Transportation Ministry here was fairly quick to respond to this incident here in japan. They are on the ground investigating. We do not have the details yet. We know the battery was made by a kyotobased company. I mention this because this is a multinational endeavor, the dreamliner 787. There was Cutting Edge Technology used to create this product. I think thats one of the focuses for investors. So for the time being, the both the airlines and ana Japan Airlines have grounded their flight. At the moment we dont have a lot of detail coming through on this investigation yet. We should remind people that japan, as you say, has been an important investor or presence i should say along with boeing in development of the aircraft. One of the reasons the storys getting so much International Attention is that its a lot of Japanese Airlines, first out of the gate to use boeing planes. Theres a lot at stake here. Absolutely. I think not only for the carriers, as you point out, but for the suppliers. This is a large multinational endeavor, as i pointed out. And i think its particularly noteworthy for a company like Japan Airlines which, as you may know, has emerged from bankruptcy filings, they went public. They reemerged as a Public Entity a couple of month ago. And the dreamliner 787 was going to be pivotal in part of that sort of revival process, as well. So i think this is, of course, not just a domestic story but particularly important to japanese carriers because of some of the elements as you pointed out that are involved. All right. Thank you for calling from tokyo on the story. Thank you very much. Youre looking at shares of a couple of those companies affected, clearly taking a hit. It is worth pointing out the only ever airline at the moment in asia that has that Dreamliner Service is air india. Theyre look at what to do aside from japan. Yes. The only other airlines in asia that have that got it. Is india. I havent made that clear. Right. What does it mean for boeings biggest competitor, airbus . We have more from paris. And of course we know how technical problems could impact commercial activity. If you remember last year, the european planemaker came up with a technical solution for the small cracks that were found on the super jumbo 38 0d. Still, it had a direct consequence on its orders, potential buyers probably waited or canceled orders of this super jumbo. Thats what the chief commercial officer said recently. He blames the Macro Economic condition but also the technical problems of the super jumbo 380 for the poor results. Last year, airbus only received a couple of orders for that super jumbo which is only a very, very small amount of the total orders that the company will probably announce tomorrow morning. Others will present tomorrow the commercial results for 2012, and its likely it lose its crown as the largest planemaker for the first time in more than ten years, according to the wall street journal. Airbus is going to announce more than 800 orders for the full year. This is more than its own forecast of 650. But this is going to be much lower than the 1,203 net orders that boeing received for the last year. Over to you. All right. Thank you very much indeed. Lets bring in our guest for the first part of the program, global editor of lex at the financial times. Happy new year. Nice to see you. Well talk about banks and things. Want to get your reaction, though, to airbus with cracked wings, now boeing with electrical and battery problems on their dreamliner. Whats your take on it . Well, i guess from an investor point of view, glad no one there was no crash or fatalities. How do you consider boeing as an investment . I guess the first thing is that this plane is the future. There are going to be thousands of them. Its never going to be a supply issue. These planes are going to go in the air. There are 50 around at the moment. I guess the question an Equity Investor has to ask is, does it push back slightly the cash flows that are going to accrue to boeing . Boeings roughly at 76. Its been roughly at that level for 12 months now. I think at this stage you can say that the answer is no. So if there are going to be any falls in the stock, you have on this consider it a buying opportunity. No one delayed orders. So far no ones got dream liners saying anything else no, there are 900 orders, there will be thousands sold eventually. We spoke to a couple of engineers last year sorry, last week when this first happened. And they said, you know, like you said on your program, this is really no different to the glitches that have occurred with the 7 and other introductions the 777 and other introductions in the past. Is japan overreacting then . Its never you should never overreact in terms of something that weighs that much and flies in the air. But airplanes have very complicated, and this is a big step in terms of technology. Right. Its amazing that these things get airborne in the first place, frankly. Good reminder. Ill be interested to find out if this is a design problem or just a build issue. Bear in mind, a delay. Theres a question mark whether they rushed to build them too quickly. Work out what the issues are. Well have more later. In the meantime, todays u. S. Earnings will be topped by a pair of big banks including jpmorgan and Goldman Sachs. Jpm reports Fourth Quarter results at 7 00 a. M. Profits expected to rise 29 with revenue up 10 . The loss isnt reflected that effect wont be seen in this quarters earnings, but the company is issuing two separate reports on what exactly happened and the fallout since. Ous, new cfo, marion lake, will run the Earnings Call for the first time. Goldman sachs will reported its Fourth Quarter figures halfhour later at 7 30 a. M. Eastern. Profits are forecast to double with revenues rising about 30 . Analysts looking for an increase in Investment Banking and lending revenue. We can take a look at their shares in early frankfurt trade today. Jpm up almost 2 in session highs. Goldman sachs adding. 3 . And stuart kirk with us. What is accounting for the move in jpm today . We heard that it sounds like goldmans going to have the banner quarter. Yeah. I mean the Fourth Quarters always tricky because its generally weak for Investment Banking. And these stocks have moved extremely well last year. They are some of the best performing sectors in 2012. So the question people ask is, can we see anything from the Fourth Quarter that will tell us what the environment in 2013 is like. I guess my answer to that would still be no. Fiscal cliff issues, europe, the election, tropical storms, et cetera, and theres still no real clarity on what the Business Models, Investment Banking are going to look like as we head toward three. Its going to be much better numbers than a year ago. Numbers are going to be slightly down versus the Third Quarter. And to my mind, theres still really nothing well be able to take away from the numbers in terms of which is frustrating because were at a time when we are trying to reevaluate what the model is going to be, what earnings will look like going forward. In your view, what is what is the Investment Case for these Investment Banks today . Well, the Investment Case for an Investment Bank is that when they work very well, they are extremely capital if i advise a company and get a fee for ecm or m a deal, it requires no capital, and i get a lot of money. Thats very attractive. The second thing is that one thing your viewers may not realize, banks are more cyclical than people believe, even Investment Banks. If you are at all pullish about the u. S. Economy, the turning in the house prices, europe, for example, these things will make an extraordinary amount of money even if they require more capital because banks are extremely leveraged institutions. And you only need a small amount of top line growth for them to make a lot of profits. If you to pick u. S. Banks versus the rest of the world, what do you like for 2013 . It bizarre thing is that last year everybody was upset about the masters of the universe and were talking up their retail and sort of consumer arms because credit losses were falling. Interestingly, this year i suspect bank with more exposure to independent banking will probably do a lot better much to the chagrin of politicians i suspect. Why is that . The m a pipelines looking all right. U. S. Economys looking slightly better. And were still prebasal 3. Well leave it there. Lex on wex, can we use that . Yeah. Is that all right with you . Fine by me. Lex on wex. Stuart, thank you very much. We will be talking later about divestment. Merger and acquisition activity this year divest back deal flow potentially helping banks. A slower than expected recovery inevelnomies is weighing on Global Growth as countries continue to battle spending cuts, high unemployment, and weak consumer confidence. This according to the world bank which just cut its latest 2013 Global Growth outlook to show 2. 4 growth, down from 3 previously. Talking about growth, the German Government expected to slash in half its fullyear outlook when it releases its annual economic report later today. According to the business daily there will be forecast growth of around. 5 . And representatives from central and Eastern Europe are gathering in vienna as we speak to discuss ways to jumpstart growth and offset the effects of the eurozone debt crisis. Joining us from vienna, our very own mr. Geoff cutmore. What are they saying down at the conference there and about trying to get something going with europe . Reporter well, youve just read two stories that represent big nails in the coffin as it were, if thats not too melodramatic. As you talked to the ceos here at the conference, they complain and gripe about the slowdown in core europe. The fact that germany may have printed negative growth for the Fourth Quarter which represents a key market for many of these central and Eastern European economies is really very bad news. So the reality is the growth s have disappeared here. The fdi isnt as strong as it used to be, Residential Construction and commercial construction markets are basically still flat at this stage, and bank lending is sc r sclerotic. Many debts are struggling with bad debts. The message ive been picking up while ive been here is really that many of these businesses in this region are looking outside of europe to try and find some new markets and new opportunities. And they to some extent think Financial Markets right now, Capital Markets are a little bit too complacent about some of the challenges that still exist in this region and in the broader European Land mass, ross. Yeah. An interesting thought i was thinking, companies there looking outside the outside europe. In the u. K. , this big e. U. Debate about how important is european trade in the future, as well. Youve also been speaking to the Prime Minister of latvia. What does he have to say . Reporter . Latvia is a poster child, isnt it, for those on the right economically if you like who think that austerity and paying dunn your debts is the way that you restore growth. Latvia had a very difficult crisis. They had negative growth and a contraction of the economy of somewhere around 20 . Last year, they grew 5 . This year theyre expected to grow 3. 5 . And thats because they front loaded a lot of the cuts in government spending, and they forced down wage rates. I caught up with the latvian Prime Minister earlier this morning on squawk box and said, well, youve done it, greece, spain, italy, portugal, perhaps they should be learning lessons from you. Lets listen to how he responded. I wouldnt go as far as now to tell exactly other countries what should be what they should be doing because each country has its own difficulties and its own way out of the crisis. But in general, we see that austerity is part of the solution, and indeed we all see that 25 out of 27 e. U. Member states has ratified fiscal committing themselves to fiscal discipline. Reporter one of the things he did say, the Prime Minister said that at least the ecb, central bank, had been active, ultra low rate. People shouldnt really grumble about what theyve been doing in terms of assisting countries, managing their difficulties. Were going to speak with one of the Council Members and head of the Austrian Central Bank, ewald nov