Skip to main content

tv   World Business Today  CNN  June 8, 2011 1:00am-2:00am PDT

1:00 am
mitt romney, it's been a real pleasure. thank you very much and good luck with your campaign. we'll be seeing mitt romney at the republican presidential primary debate here on cnn live beginning at 8:00 on monday. that's all for us tonight. -- captions by vitac -- that's all for us tonight. hello, cnn london. here are the headline this hour. nato defense ministers are preparing to discussion the situation if libya the day after alliance warplanes delivered a staggering barrage of air strikes on tripoli. despite the devastation from 60 air strikes in an audio address which was televised, moammar gadhafi told the world, quote, we will not surrender. opposition fighters have taken control of yemen's largest city in the president's absence.
1:01 am
400 tribal gunman control the city. yemen's president is recovering in saudi arabia from what appears to be an assassination attempt. ambassador to france says it will sue a france network after a woman called in saying she was ambassador to france. the ambassador says the interview was a hoax. france 24 network says it is puzzled insisting the woman it put on the air was her. "world business today" starts right now. good morning from cnn london and welcome to the show. these are the top stories on wednesday, june 8th. turmoil in the middle east, faltering global growth and an impasse on output.
1:02 am
the oil markets await an outcome on opec's crude conundrum. kan reaches the 12-month mark, which is no feat. all this week, we put our head in the data cloud. today we'll be examining cloud security and how it affects you, the consumer. there's a question set to field fiery debate in vienna this week, whether to oil the wheels of the country by pushing more crude or put brakes on crude outpet, that's what these opec nations have to decide, all 12 of them, which could affect oil prices. price roll tillty stems from political volatilitvolatility, y in the middle east and et cetit expected to weigh heavily on the
1:03 am
talks. >> reporter: this is a case where you have geopolitics mixing, forcing the hand of the opec members. this rise of crude above $100 a barrel is putting pressure on ministers to take action. they have a quota they've been living with of 24.8 million barrels a day. actual production is closer to 26.3. market expectations are at least announce where you are today and please give us a signal if in fact more oil is coming on the market if necessary. we can't forget the back drop of libyan war. the signals are important more than anything else right now. >> are you getting a feeling in terms of a concrete basis they are actually going to raise output? >> reporter: output, no. i think it will be primarily the quota. we should also point out that opec acts very well under pressure but the number of new faces here of the 12 ministers
1:04 am
around the table, six are new and half of those are not even ministers. we have a libya representative in the midst of war, power electricity person across the table and across from him the uae minister and qatari minister opposing the government of moammar gadhafi. you can see the tension. they would like to walk away building confidence on. and this 20% premium because of the uprisings in the middle east they're very aware of. they want to send the right signals not to drive oil prices too high. >> we have libya at war, iran without an oil minister. what are the political dynamics at play here in opec this time? >> reporter: well, this is the most charged in the better part of a decade f you think about it, but don't forget, in the back drop, the secretary-general is from libya himself.
1:05 am
he wants to walk away with a moderate agreement, not talk about politics if avoided and the saudi heavyweight has been in this structure for 16 years. when there has been a crisis, saudi arabia has stepped up to provide more oil. will saudi produce 9 million barrels a day or more in the second half of the day. that's a strong signal saudis could send if not touching a number. >> john will be joining us later with those ongoing opec talks and also independent analysis from a leading energy expert. if the group does decide to maintain current output limit, that could send prices once again soaring output but at the moment nymex crude is down by two-thirds trading at $98.45. brent crude has been dropping just a little under half a% to $116.35 a barrel at the moment.
1:06 am
rising crude oil prices are leading many to fear a slowdown in the global economic recovery. any potential increase would reduce the cost of oil but the cartel's ability to swing prices may be limited. our asia business analyst in hong kong has more with an outlook on that and also a look at how much crude oil opec countries could pump out of the world. >> oil from opec accounts for a good 40% of all the oil views. the biggest producer by far is saudi arabia, produces nearly 9 million barrels a day, iran with 3.7 million, iraq with 2.7 million. these other countries are some of opec's other major exporters. on the heels of violence in the middle east one opec country you won't see, that is libya because
1:07 am
of its civil war. they used to pump out 1.3 million barrels of oil a day but that's stopped. meantime, other countries, yemen is also violent and unstable. it's a non-opec country but produces about 260,000 barrels a day. which could dry up. syria, similar situation, political violence. no no non-opec country with 150,000 barrels a day. i want to bring up saudi arabia but before that, the turmoil could reduce world supplies further. the problem with increasing production to offset this, opec's capacity could be nearing the limit and that means opec may not bring down oil prices. saudi arabia spare oil about 2.5
1:08 am
to 3 million barrels. we're seeing rising crude prices that may slow down economic recovery on the world. opec may not have the spare capacity to make a difference. i'll be back to talk about oil demand. stick around. >> we look forward to it. sobering words. let's start out with indices in europe, all have started on a lower note. six day of losses in a row for some markets. heaviest losses coming from the dax and the cac 40 in paris. investors are concerned about the lack of economy in u.s. and germany exports fell by 5.5% in april and imports declined by 2.5%. ben bernankes the best way to
1:09 am
support the dollar is to pursue maximum employment and price stability. as you can see, we currently have euro down against u.s. dollar, the pound down against the u.s. dollar. pound trading at 1 .638 0. euro, 1.4672. yen up trading 79.84ers have the greenback. let's take a look at how things fared in asia. losses for automakers and utility on nikkei paved the way for losses across the region. tokyo was able to claw it's way back into positive territory. only just south korea released economic data shows gdp for the first three months of this year grew a little less than expected. as you can see, the kospi ended down by 0.75%. shanghai composite up by 0.22%. in the meantime, in the u.s., that reality check from the
1:10 am
federal reserve chairman bernanke before the close of trading did manage to give investors a bit of a sinking feeling. speaking in atlanta, bernanke said the u.s. economy had lost momentum and growth is patchy at best. >> with the effects of the japanese disaster on manufacturing output, likely to dissipate in coming months, and with some moderation in gasoline prices and prospect, growth seems likely to pick up somewhat in the second half of the year. overall the economic recovery appears to be continuing at a moderate pace, albeit at a rate uneven across sectors and frustratingly slow from the perspective millions of unemployed and underemployed workers. >> after staying solidly higher after most of the session, after those comments they went back with the dow ending by 0.16%. this is how we stand at the moment in terms of the u.s.
1:11 am
futures. it sees the early indications are that we could see a bit of a mixed picture when u.s. markets get trading earlier on -- sorry, later on today as the dow rising by 0.07% but not an awful lot and anything could happen between now and when the u.s. markets hope later on today. despite wall street worries, president obama says he's not concerned about the u.s. falling into another recession. at news conference with angela merkel he tried to focus on job creation and cooperating with europe on the global economy. >> i'm not concerned about a double dip recession. i'm concerned about the recovery we're on is not producing jobs as quickly as i want it to happen. >> mr. obama says he and chancellor merkel agree the economic crisis, especially in some european countries, cannot allowed to put the global
1:12 am
recovery at a risk as a whole but they still disagree whether government spending or, whether, spending cuts, are the best way of restoring prosperity for the region. japan's prime minister easily beat a no-confidence vote, so why are so many talking about a successor?
1:13 am
1:14 am
1:15 am
hello and welcome back. japan's prime minister natao kan has something to celebrate, he's japan's sixth prime minister in five years. despite the fact kan easily survived a no-confidence vote in parliament last week, calls for his resignation seem to be increasing as the nation grapples with the task of recovering from the march 11th earthquake and tsunami and
1:16 am
unprecedented nuclear crisis that followed that. kan may have opened the door to his own resignation by suggesting before last week's vote that he's willing to step down once recovery efforts are in place. now both political parties are jokeying for position even though kan gave no specific date for his departure. we're taking a look at the politics of the potential sec ses so successors. any word on when he may go in. >> reporter: it's anybody's guess. we've heard it could be next week, the week after or perhaps into next year. we don't know. we don't know what's going to happen politically because it's not a very stable situation, as it hasn't been for many, many years up. mentioned the political jokeying. all of this happening while the seat is still warm. in fact, the seat is still occupied. in part because there's no clear successor to prime minister kan. political forces say, okay, he
1:17 am
should go. who should take his place? there's no clear person. let's look at a couple people familiar to our international viewers. yukio edano, a familiar face because he was the face for japan in the wake of the nuclear crisis. he was one talking to everyone. but he's already indicated that perhaps he's a little reluctant to take on the top political job because he doesn't know how long that position will be there. as far as the other contenders, miyahara, former foreign minister and did step down because of a campaign contribution scandal. so, a lot of joke yg and a lot of political bickering, especially on the floor of japan's parliament. and it has become incredibly contentious for japan. there is also a widening gap between the fighting of the politicians and what the voters say they want. take a listen to what a
1:18 am
politician says and the reactor from a voter. >> translator: you are the worst human being among all politicians i have ever known. >> translator: the vote of no-confidence was so ridiculous. would did they even vote on that? they're trying to dwight the dpj but they can't suggest who could succeed kan. this is pure nonsense and totally ignoring the tsunami victims. >> reporter: as far as those tsunami victims, many of them are also weighing in saying, what about us? there are still 10 0,000 people still living in evacuation centers, a nuclear crisis to contend with and we've been talking about this endlessly on this program, a number of lingering economic problems that have been suffering in this country for the past 20 years because of a lack of clear policy. certainly, having so many people rotate through that top job here in japan is not going to help.
1:19 am
>> i suppose many viewers watching this would say, this has been an unprecedented time preceded by an economic crisis for years in japan. who would want the to be job now? >> reporter: that's something being talked about in japan. who really does want this job? it's such a challenging job and also a difficult job to get anything done because it's a consensus-driven parliament. have you to have a strong coalition. you have to have the voters behind you. and you also have to have the very strong national media here approving of what you do. it is very easy to make a misstep and then to have your entire premiership crumble in japan. it is a question, if you cannot be an effective leader, maybe you just won't get one. >> as always, thank you for that insight from tokyo. i'm sure the future of natoe kan
1:20 am
will keep us on our toes. it's all about marketing and mentoring. stay tuned as we focus in on that. [ doctor ] here's some health information for people over 50.
1:21 am
maybe you don't think you're at risk for heart attack or stroke but if you've been diagnosed with p.a.d., or have pain or heaviness in your legs, i want to talk to you. you may have heard of poor leg circulation, which could be peripheral artery disease, or p.a.d. with p.a.d., if you have poor circulation in your legs, you may also have poor circulation in your heart or in your brain, your risk for heart attack or stroke is more than doubled with p.a.d. now, ask yourself: am i at risk? if you're not sure, call for this free information kit to learn more. [ female announcer ] call the toll free number on the screen now to find out what the risks of p.a.d. really are. you'll find a 7-point checklist that helps you understand what could be putting you at risk.
1:22 am
if you have symptoms, you'll learn how treating symptoms is different from reducing your risk. you'll also learn about lifestyle changes and treatment options that can help reduce your risk for heart attack and stroke. there's even a discussion guide for you to bring to your doctor that can help you discuss p.a.d. together. call the toll free number on the screen for your free information kit today. the risk is real. take the next step. call today. welcome back. time for the boss. this week two of our high flyers are angling for promotion. steve is figuring out how to
1:23 am
help summer drinkers. let's catch up these two now in "the boss." >> reporter: previously on "the boss," confidence and conviction. sara curran introduced us to my wardrobe's new addition. >> we have to trust in what we see in him and why he's here. >> welcome to thestillry. >> reporter: in new york, friends as partners. steve told us up the highs and lows of going into business with an old friend. >> we were going to make this work, even when it wasn't working. >> distributors are now free to order this on our new online store. >> reporter: in brooklyn, new york, steve is meeting with marketing manager ben hudson. they're loog looking at ways to promote the new ail. >> we've got the can on the
1:24 am
towel. it's not a good sheep give away, so we're using this as sort of a raffle prize. >> reporter: steve makes this his priority. he knows a strong market strategy is a key weapon in creating buzz for his product. ♪ >> there's a lot more to it than just making a great beer. getting that beer to the customer and creating a demand for that beer is -- is the real tough part of the business. >> reporter: in the early days, brooklyn brewery spent promotion dollars sparingly. today steve has set aside $1 million for marketing. part of the marketing plan, showcasing its pride in being a brooklyn-based company. in the works is a large mural outside the brewery. >> so, this is the wall. any beer salesman looks at an empty wall like that and thinks, billboard.
1:25 am
you have to, you know. and it's our wall, so we can do what we want. >> because it's our building, a more subtle logo next to the hieroglyphics would be fine. >> you mean like losing the big logo? >> yeah. i don't know if we need that necessarily. >> i love the big logo. you know, i think more logos is better. >> right. >> and bigger logos are better. >> you don't think just -- since people know they're in front of the brewery it's sort of beating them over the head with that branding? >> yeah. that's what i like. >> right. >> want to try a little? >> reporter: one effective tool helping to grow his brands, limiting the sale of some of his beers. >> we make beer around christmastime called brooklyn
1:26 am
chocolate stout. if we made that a year-round beer i'm convinced we wouldn't sale as much as we do as a special. >> reporter: a simple strategy and a profitable one at that. sales are up by almost 40% so far this year. soho central london is brimming with paparazzi. they're frantically snapping celebrities as well as our boss, sarah curran. she's here to take part in marie claire's campaign inspire & mentor. a mentoring program that helps women get ahead, be it opening their own business or growing a brand from scratch. >> you can't underestimate how important a mentor is, because there are going to be moments where you think, i can't do this. you kind of lose that belief in
1:27 am
yourself and you need to -- even if it's to hear someone else has been through that. >> reporter: sarah has been there. she remembers vividly the difficulties she faced trying to get her business off the ground. guiding her along the way was her mentor, founder of herb own head hunting firm. >> she helped me to see that perception is, you know, is key. and it's about how you present yourself. these are all kind of -- i know it's quite superficial, but i guess in fashion, fashion is quite superficial to a certain extent but then the confidence and, you know, going with your gut instinct. >> now, this room is positively bursting at the seams with fabulous female role models. >> reporter: today it's sarah turn to be a mentor and for the next six months she'll make a difference, opening her door and offering advice. >> i know what it was like and it was bloody difficult.
1:28 am
and also, you know, not necessarily excelling academically at school, you know, the impressions of business people, you know, you have formulated in your mind. the reality is actually very different. >> reporter: with confidence and experience, sarah will be taking on her next big challenge, inspiring and mentoring. she knows the learning curve is still a two-way street. >> i don't think you ever reach a point where you think, i don't need any more mentoring. you're never finished. you always have to grow and absorb and learn. learning is so important. so, i don't think it's -- i think it's a complete journey. next week on "the boss," rethinking her customer. sarah curran learns the dos and don'ts of the male shopper. and in hong kong, michael wu taps a famous face to help with his brand.
1:29 am
1:30 am
1:31 am
1:32 am
from cnn london, welcome back to "world business today." let's bring you up to date with some of our other top business stories. french finance minister is taking her campaign to head the international monetary fund to china, developing countries have said they don't want to see a european at the top job of the imf. instead, they want to see a non-european take the position. it's been reported that a subsidiary of the swiss commodities form glencore owes zambian government $160 million. the finance minister has not
1:33 am
said how much they owe but cites an audit. and nintendo has unveiled the next generation of its wi. game console called the wii u and features a controller that looks more like a tablet feature. nintendo hopes it will reignite growth after a long sales sluch but investors aren't so impressed after the stock dropped 6% in tokyo on wednesday. let's turn to the stock markets and see how they're faring where the trading session is 90 minutes into the day in europe. bit of a downbeat picture. some stock market declining for a six straight day, heaviest losses being incurred by the dax down by 1.14% at the moment. asia, losses for automakers and utilities on the nikkei paid the way for some early losses across the region. that market rebounding as did the shanghai composite.
1:34 am
as you can see, the kospi suffering the most, down 0.6% after south korean gdp figures disappointed analysts and investors. sobering words from the fed boss ben bernanke on the u.s. economy put a stop to positive markets on the other side of the atlantic yesterday. stocks were solidly higher for most of the session but they did right back below the flat line in the final few minutes of trading as bernanke spoke. dow slipped to 12070 up 70 point during most of the trading session. the nasdaq and s&p 500, as you can see there, also ending the day shy of the flat market. this is where we stand in terms of the futures at the moment. the pre-market action shows us that the dow is currently the only index poised to open the day on a higher note. the other two down. the nasdaq composite futures down by nearly 0.5% at the
1:35 am
moment. the time has come, many tech wizards will tell you, to say good-bye to your computer data. the age of cloud computing, it seems, is well and truly upon us and your computer information is now migrating from your own personal pc to central remote computer networks. all this week we're presenting a special series on the next big thing in the wide world. apple jumped into this particular section of technology this week and amazon and google are already committed to cloud computing themselves. even though it promises to usher in all kinds of new business, consumer and entertainment possibilities, not everyone, it seems, thinks the cloud has a silver lining. a pop concern is security. once your personal data is transferred to a remote source, the question is, who's protecting it there? how secure is it? how reliable is it?
1:36 am
felicia taylor has a look at some potential holes in the cloud. >> reporter: when it comes to all the information in the cloud, you can think of it as jewels kept in a safe deposit vault. all that information is literally kept inside. but then the question is, is how is it being protected? >> things like encryption, things like firewalls, things like penetration testing, they're all well understood security capabilities to ensure data can be, you know, kept safe and protected. >> reporter: is the cloud impenetrable? there are no guarantees? >> from a consumer standpoint i think the biggest threat really is phishing. >> reporter: phishing is when attackers send you a message. it appears that it's from somebody you already know but of course it really isn't. it's just a trick to try to get you to send information on the internet. the world of cloud computing is
1:37 am
vast and the rules chain from one region of the globe to the next. so, location's key. >> different countries have different regulations around how data needs to be protected and how data needs to be kept private. in the u.s., those regulations aren't as strict as what you might find in europe. >> reporter: just like you wouldn't want to accidentally flip the switch it cut out all the lights, cloud service providers have to make sure there's no service disruption. that's exactly what happened to amazon in the united states back in late april. amazon says it was a cass indicateding technical glitch caused during an upgrade to its own service. >> i think the amazon outage was actually a good thing for cloud computing. it highlighted to people that the cloud isn't magic. you still have to do all the best practices around understanding what happens when fail you'res happen. >> reporter: experts say cloud
1:38 am
computing is fundamentally safe. do your homework. research the cloud provider. and don't let yourself fall victim to questionable e-mails that could possibly be phishing attacks. felicia taylor, cnn, new york. so, who is taking the lead in this new computing paradigm and what will cloud computing companies actually deliver in terms of interactivity and content? our special series continues tomorrow with a look at where cloud computing is now, where it's going and where the investment opportunities lie. tune in for that if you can. coming up next we're going back to the opec summit in vienna and we'll hear more from our business analyst about the numbers behind the market for crude oil. plenty more to come on the show.
1:39 am
1:40 am
1:41 am
hello and welcome back to cnn "world business today".
1:42 am
oil and water separation is forming at the heart of opec, the organization responsible for 40% of the world's total oil reserves. on one side is the group's biggest producer, saudi arabia, which wants to raise output. on the other side, what we have is the second place nation, iran, backed that want to keep status quo. the standoff is set to dominate talks that began in the past hour in vienna. we're joined live from the austrian capital. john, you were there when the proceedings began. what kind of a sense are you getting about the way the pendulum is likely to swing here at opec? >> reporter: it's almost a bizarre meeting in a sense. we have the chair of the meeting iranian minister, former physical education minister of iran, first time within the opec circles. libyan supposed to be here is a former electricity minister, did not make it to the meeting at all. very strange environment there. of the 12 ministers here, six are new and three are not even
1:43 am
ministers. a fascinating start to the proceedings. in the first ten minutes, they've been in there for 40 minutes, we had a chance to survey comments. you can see the polarization. two ministers sitting next to each other, eau minister and venezuelan minister, mr. ramirez, polar opposites. hamly says the will be tight, we should raise quota and he has spare of 500,000 barrels a day. mr. ramirez saying higher is okay, alluding to the fact the quota doesn't need to go up. so, i went up to the secretary-general and said, what is going to be the consensus here? he says, i'm showing them different elements right now of second half demand. i'm trying to pull them together. it's worth noting opec responds extremely well under crisis but he says people need to understand what second half demand is. if you read in between the lines, he's saying we need to send a signal we're willing to offer more oil when necessary to
1:44 am
the market. he said right now, prices reflect a 15% to 20% premium because of the uprisings in the middle east. >> john, let's go back to the quotas. opec living with 24.8 million barrels a day, going back to december of 20 08 when the scenario was slightly different than today. what are the concrete options here? will they eventually raise output in the next six months to come? >> reporter: this is the heart of their discussions right now. i call it the opec reality gap. let's take a look at that graphic. you noted the quota goes back to december 2008. 24. when they took 4 million barrels a day off the market in the second half of 2008 and that spiralled down, if you remember, from 147. actual outbet is 26.3, not counting iraq. do they send a signal to get to 26.3 to match the output of 11 producers or come down to allow
1:45 am
for opec cheating? that's at the core of the debate. it's so difficult because there are so many new faces around the table. one face not new has been here for 16 years is the -- of course, the oil minister of saudi arabia. i asked him three times for comment and he said, good try, john, but i'm not commenting. let's let the meeting come together. they have a lot of work to do in the next two to three hours. >> as always, thanks for the latest there from opec. of course, as one would imagine, anything secretary-general has to say will move the oil markets. a new poll from reuters shows demand for oil is growing even faster than expected at the moment. let's go back with a look at these numbers. >> that poll shows demand growing by 1.5 million barrels a day in this year, that means since the 2008 fnlt crisis oil
1:46 am
demand will have risen by 5%. that actually means the world will demanding a record total 89 million barrels each day by the end of the year. u.s. fed chair ben bernanke touched on that on tuesday. >> world oil consumption rose by 14% from 2000 to 2010. underlying this trend was a 46% increase in emerging economies and a deline of 4.5% in advanced economies. >> and that is an amazing statistic, isn't it? greater oil demand is not coming from developed world but emerging economies. china is industrializing at light speed, annual growth rate at %, india close to 8% to 9% and they need oil to produce and grow but increased oil requirements are pushing prices higher for the rest of us. ben bernanke blamed opec for not
1:47 am
moving on that issue. take a listen. >> indeed, opec's production of oil today remaining about 3 million barrels a day below the peak of mid-2008. with the demand for oil rising rapidly and supply of crude stagnant, increases in oil prices are hardly a puzzle. >> and that's how we've gotten to where we are with opec's meeting in vienna. looks like the oil cartel may open up spigots but we'll wait and see. expectation is oil prices will fall if those spigots open, which could keep global recovery going. let's take a look at brent crude prices. over the last three years are as you can see, from the global economic crisis in late 2008, it was around $111.77 a barrel. you can see it hasn't risen past that until recently. today it's trading at about $116 a barrel. now, if nothing is done, one
1:48 am
jpmorgan analyst told us oil could jump as high as $130 a barrel, nina. none of us would want to see that. >> those kind of figures put it into perspective. ramy, thanks for that. warren buffett proved he knows how to make money and when it comes to his annual banquet, he's prooun he's no cheap date. we'll tell you what nebraska nosh will set you back. times moe and blur my vision. my eye doctor said there's great news for people with astigmatism. acuvue® oasys for astigmatism. he said it's the only lens of its kind designed to realign naturally with every blink and created with hydraclear® plus. i'm seeing more clearly, crisply, comfortably, all day long. now life doesn't have to be a blur. [ male announcer ] learn more at acuvue® oasys for astigmatism.
1:49 am
should i bundle all my policies with nationwide insurance ? watch this. on one hand, you have your home insurance with one company. and on another hand, you have your auto with another. and on another hand, you have your life with another. huh... but when you bundle them all together with nationwide insurance... ... they all work together perfectly-- and you could save 25%. wow... it's all in the wrists. ♪ nationwide is on your side
1:50 am
1:51 am
hello and welcome back to "world business today." it's all about commodities. nymex crude oil has risen 39% in the past year alone. and as ramy was showing us before the break, brent crude has risen by 23% over the same period. if the members of opec responsible for 40% of the world's total oil reserves do want to maintain current output limits, it seems as though the climb of crude will only continue. it's a battle of possible demand versus realistic supply and jon han has been in the mid of that battle in vienna joining us live from opec. >> reporter: thanks very much,
1:52 am
nina. it's interesting, they're 45 minutes into the meeting and i know they're number-crunching trying to solve the politics. it's one of the most interesting meetings in the last decade. first time we've had a country at war where we had different opec ministers take different sides, complicating matters because of the situation in libya, also fair to say we have a 15% to 20% price premium because of all the unrest taking place in the middle east. let's break down where we are and bring in a strategist and former corporate strategist with bridge petroleum, cornelia meyer. nice to see you. it's a fascinating as they sit down f you go around and talk to different ministers, you can see this deep division. they only have really one day to pull it together. can they pull it together an agreement that raises the quota to appease the markets, in a sense? >> i think they will. they will be able to. time and time again. we always have the same divisions. we have the hawks led by iran and venezuela and then we have
1:53 am
the doves let by saudi arabia and kuwait. they will pull it together. they need to show willing so we'll see the quota going up a bit, but not maybe quite as much as the market wants to see because opec is quite worried about what's happening to the economy in the u.s., in the southern rim of europe and we've seen enormous demand destruction in japan due to the earthquake and fukushima. >> reporter: there's also, if they decide to raise the quota to get it to 26.3 where they are today, if libya comes back into the market in three or four months' time, you have the old problem that opec challenges everybody with, and that's quota-busting? >> i think that's true. i don't think libya will be in right away. it will take some time to start production up again -- >> reporter: 2012? what's this market -- >> i would say end -- the middle -- towards the middle/end of october 2011.
1:54 am
so, we still have a wee bit of time. but, you're right, they can't go quite up that much because they have to allow also for -- they have to allow libya to save face and still give them the leeway. >> reporter: if you look at geopolitics it's fascinating. an iranian former sports minister, libya didn't make it. secretary-general's a libyan. you know, he's probably torn seeing what's happening in his country right now. then the veteran of saudi arabia who's not saying anything before the meeting but behind the scenes i'm sure he's working it pretty hard to get an agreement. >> exactly why he's not saying anything. i wouldn't be too fast because you have a very well-qualified staff at opec headquarters who can walk them through the numbers and work with the ministers and the really key guy is secretary-general and he's there and confident as ever. >> reporter: see if they can deliver yet again for saudi arabia.
1:55 am
cornelia meyer following activity outside opec headquarters. coming into the meeting you had venezuela and ecuador ratcheting up tensions saying $100 oil is just fine in today's market. that's the counterposition, as cornelia just talked about of saudi arabia. back to you. >> thanks for that from vienna. this just into cnn. air france says it has retrieved all of the bodies that can be recovered from the wreckage of flight 447, which crashed into the atlantic off the coast of brazil two years ago. the remains of 104 of the 228 victims were found during an extensive operation that finished last friday. the flight had been on its way to paris from rio de janeiro. a report last month revealed the aircraft plunged out of control for four minutes before crashing into the sea. let's take one last look at the european stock market. it's been a negative picture
1:56 am
across the board on all of these major four indices. across the region, two hours into the trading day, as you can see. we have the dax down by inexcess of 1% though off its intraday lows. that market falling by the most but even the ftse 100 down by nearly 0.9% perform o. oil may be expensive but bids for warren buffett lunch bids seem to go sky high. bidding at annual charity auction for warren buffett is topping $1 million. this year's bidding could exceed last year's record of $2.6 million. winner will get direct financial advice from this famed investor and benefits will help deprived people in san francisco. on air or online you can read about that story and stay up to date with all the top business stories at or head to
1:57 am and that's about it from me and the rest of the world business today team. i'll see you again in a couple of hours' time for the later edition of this show "world business today." in the meantime "world business one" is next.
1:58 am
1:59 am


info Stream Only

Uploaded by TV Archive on