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tv   World Business Today  CNN  February 8, 2011 4:00am-5:00am EST

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our business plan and two years worth of work are so he's very much where he is because he interacted with myself and tyler. >> my controversial interview with the twins tomorrow night. hello. i'm at cnn london, here are the headlines. the man claiming to be responsible for the bombing of moscow's airport says he plans to strike again. the leader of an islamist group said he prochlss to deliver a year of blood and tears to russia, last year's bomb kills 36 people. and egypt's anti-government protests spill into a third
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week. president hosni mubarak's government is still there. and assange faces another day of extradition. sweden wants the which ke leaks questioning in a sexual misconduct investigation but assange's lawyer say his extradition could lead to his execution at the hands of u.s. authorities. the final results of last month's referendum in southern sudan have been announced and to no one's great surprise voters overwhelmingly chose the independents. the final tally found 99% voting to split the country in two barring new hurdles, southern sudan will become the world's newest nation in july. those are the headlines. "world business today" starts right now.
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good morning from cnn london. >> and a very good afternoon from cnn hong kong. i'm andrew stevens and you're watching "world business today." joe our top stories this tuesday, february 8th, egypt's workers are slowly getting back to business for the country's currency is still falling. we'll explore how violence in the middle east has accelerated a trend in which investors are pulling out of emerging markets. >> and toyota says its net profits fell in the three nos from december isn't now the company waits for the results of the u.s. inquiry into unintended acceleration in its cars. first to europe where stock markets are mixed following wall street's gain on monday as deals and earnings' reports boosted u.s. investor sentiment. more on the u.s. performance in a moment. here's where we are. finally balanced with just small losses for the ftse.
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and a slight gains for the smi and the dax. just slightly higher. one stock you might want to mark is and it's 4.69 to bz 4.7 billion in round numbers for 2010, and they are boosting their dividend payout more than three fold. we're also seeing decent games for bg group here in london. let's move on and have a look at the euro, if we could, please. up around 1/3 of 1% against the u.s. dollar on tuesday. coming back from two-week lows we have gone all the way to a shade above 35. but the market is looking for more hawkish talk, i think, from the european central bank. and the prospect of an imminent -- of a rate hike soon
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but that seems to be going away so we probably won't see it for a while, the euro going back up to 1.38 and above as we've seen in recent weeks. looking at the market numbers you were talking about. pretty mixed in asia. tokyo and sydney, early markets to finish higher. tokyo following wall street's positive session. the main bench mark in australia touching a ten-month high. resource stocks are a big part of sydney's stock exchange. in seoul, the kospi was down on concerns of a possible interest rate rise and that's getting common. talk about interest rate rideses, the central bank of korea releases its rate decision this friday. one stock to watch tomorrow will be toyota. shares of the carmaker were unchanged today from monday. that was ahead of the third quarter earnings' numbers which came out after the bell closed and profits were down by almost
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40%. 39% to be precise from october through december. that was the final quarter of the calendar year. the numbers came in as 1.14 billion, which was better than expected. the fiscal full year outlook, though, even more upbeat citing strong asian demand particularly china and india and toyota expects full-year profits to be 40% higher than earlier forecasts. coming in at around $6 billion, says toyota. we'll talk to tokyo later in the show to bring us up to date on exactly what's happening at toyota. charles? let's circle back to those u.s. stock markets. good day on monday, a wave of merger activity. the industrial conglomerate donaho and uk based ensco, texas's pride international are combining to form the world's
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second largest offshore oil and gas driller, the dow hit a 52-week high adding two-thirds of a percent, well above 12,000, and the broader s&p 500 slightly bigger gains. nearly 2/3 of a percent. and the nasdaq, just shy of 2,800 adding half a percent. it looks like u.s. markets are set for a slightly higher open when trading begins later on wednesday. let's have a look at the pre-market action. and as you can see, pretty much flat for the nasdaq. but one of those positive kinds of flat. and just up a little bit for the dow and the s&p 500 so we'll have to wait and see whether that transpires. okay. let's bring you up to date on the latest developments from egypt as the antigovernment demonstrations enter their third week. activists are forming human
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chains in cairo's tahrir square, still refusing to stop their protests until the egyptian president, hosni mubarak leaves office. meanwhile, the u.s. state department says vice president omar suleiman's talks are not, quote, broad-based enough. some opposition figures question the government's sincerity in those negotiations. egypt's new cabinet has convened for the first time approving a 15% pay and pension increase for public sector workers in egypt. the country's stock market is still closed and expected to start trading on sunday. meanwhile, yesterday saw more of cairo's banks and commerce opening for business. although it may take longer than planned to get the country's finances back in order. the government's debt auction on monday, which was expected to face some trouble and, indeed, it did. it was a little disappointing. egypt sold about 13 billion egyptian pounds, about $2.2
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billion worth of treasury bills, $300 million short of what they were hoping to sell. and the interest rates being paid on the bills were higher than at the last auction two weeks ago. the egyptian pound, meanwhile, still hovering and a six-year low trading at almost six pound to the u.s. dollar. with egypt. rashe rasheed, he lost his job as trade minister. he was sacked with other mubarak officials during the first week of the demonstrations and he's now in dubai. prior to monday's big debt auction richard quest acted rasheed whether egypt's banks withstand all the economic shocks. >> i'm confident about the banking situation in egypt. the structure, the reserves, the governance model, despite what peeve seen in the streets and despite what we expect as
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negative impact on the economy, i feel that the banking system will be able to stand all the pressure. we have done a lot in the last few years and i'm very confident about the governor and the management there to be able to sail through the crisis. >> rachid says he need law and order and president mubarak should stay in office to assure a smooth transition and keep financial markets calm. what about cairo's small it businesses? are they reopening their doors? in the egyptian capital. anecdotally, but more seriously at the level of banks, is there a sense of normality outside of tahrir square? >> well, charles, if one were to briefly look around the streets of cairo we see the usual traffic congestion which would be an indication of things returning to normal although normal has truly bereen redefin.
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this is by and large, unchartered territory. the larger construction companies, wanting to get work back on track. but this is very challenging. according to one bank, this is costing egypt around $300 million a day. one businessman we spoke to saying that he believed it would take six months to a year assuming this conflict were to come to a quick end for the economy to kpaeblly begin to bounce back. there are also great concerns according to one construction developer who said that a lot of his foreign investors were trying to pull out. that would mean he would not be able to pay his employees and in his case that would be 10,000 people without jobs. this is still very much a struggle and very much a great concern. egypt cannot afford these types of economic blow, especially not at this point in time and not given the fact that the economy was one of, among the main reasons, that sparked this
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demonstration to begin with. people, yes, want the president to step down but that is largely because of the regime's oppressive nature but also because of much-needed economic reforms, charles? >> okay. what is being done to deal with some of the problems? clearly, in terms of people's day-to-day lives, things are quite challenging. >> they are certainly challenging, charles. around 20% of egyptians survive on less than $2 a day. millions are day laborers relying on day wages that he have not been able to receive since these demonstrations began. we went to one food distribution center where volunteers are trying to package food. $1.5 million worth of meat. 10,000 kilograms of basic staples, blankets, trying to ship those outside of cairo where they say people risk starving to death. the concern the volunteers were
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citing was that this democratic revolution could turn into a food revolution. if people who are hungry are not being fed. they are greatly concerned about this next phase of the crisis that they say is, perhaps, in some ways even more dangerous to the country's future than be it times of violent standoff we saw centered around tahrir square. people are still very fearful for their future. we spoke with one young girl who works in the jewelry company, actually owned by her father and very close to tahrir square. they don't know when they're going to re-open. so even though we see the traffic bustling around cairo, we see banks opened. long lines of people trying to get money. there's still long-lasting repercussions of what happened and this is the solution to the economy if people who are hungry are not fed egypt could head down an even more dangerous road. >> okay. many thanks to you, andrew?
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charles, in just a moment, we'll look at some of the world's emerging markets like india, brazil and china. high food inflation and political unrest to make investors lose confidence and they're pulling out billions of dollars. stay with us. your favorite big g cereals. from cheerios to lucky charms, there's whole grain in every box. make sure to look for the white check. and give it a whole new life! with the aveeno nourish plus moisturize collection. the only hair care with active naturals wheat formulas, that target even the weakest parts of hair with hydrating proteins to help repair damage in just 3 washes. for softer, stronger... ... hair with life. [ female announcer ] aveeno nourish plus. and for a luxuriously nourishing shower experience, add positively nourishing body washes. visit aveeno.com to save, and discover the power of active naturals.
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so there we are looking at crude price, up very fractionally. let's see if we can get that back. 87.5 up seven cents due to a number of factors that was actually. concerns about egypt's political turmoil and rising u.s. inventories and ecent u.s. employment numbers that missed expectations. from cnn hong kong in london, this is "world business today."
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andrew? talking about world prices playing havoc on markets and we'll focus on emerging markets. not long ago they were the hottest ticket in town but lately, high inflation and high food prices, the social unrest being seen in the middle east, they've all contributed to investors now turning their attention back to more developed economies. look at this number. $7 billion in stock values was clawed back from emerging markets around the world last week alone. that's the most in more than three years. certainly, a sharp contrast from the surge in investment in emerging economies last year. "financial times" newspaper said the inflow amounted to about $95 million. that's the number on the right-hand side of your screen. this shift in confidence is especially visible in the markets' share prices in emerging markets down on average, around about 3% this year compared with the developed markets which are mostly up. apart from egypt there's other
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big individual players which are taking a big hit. look at the indian market. the indian market was one of the hottest games in town. the sensex, down more than 12% since the beginning of january. let me take you to brazil, obviously another hot market. the bovespa downbility 5.7% so far this year. and just lastly, we can't talk about emerging markets without talking about china, the shanghai composite is down less than a third of 1%. also remember that the composite finished down by some 14% in 2010. so its fall came a little earlier than the others but it was still the same story. it was all about inflation fueled by rising food prices. where's the money going? look at some of the big
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developed markets like the u.s., europe and japan. that's partially your answer. a bit of a safe haven as well but the dow is up 1.6% and london up 2.5 and nikkei and japan up by nearly 4%. interesting to have a look at this. if you talk to analysts, most are saying this will be a patent certainly for the first half of the year. people are looking much more at developed markets rather than the emerging markets. >> we have a chance to do exactly what you suggest there, andrew. and talk to analysts. clearly the whole series of factors are shaking things in emerging markets. political events like egypt but also what's going on in the broader economy. so let's move to select the help of a key player in the investment industry. the head of the allocation management firm. i think the question everyone wants to know the answer to, is
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this a buying opportunity or this season -- >> $7 billion worth according to the ft? >> true. but over the last year i think $95 billion have been flown into the asset class. there's been a reversal in the last week and emerging markets have underperformed for a few months. i think ultimately it will be a buying certain but from our perspective we're not looking to be too brave just at the moment. there are inflationary risks out there. they could get worse before tensions ease on this front. so i think on the short term, one wants to be quite cautious. on an immediate yum-term few i think the fundamentals are still very positive for emerging markets. >> but the fundamentals are even more positive, if you like, for the developed markets. isn't that true to say? >> i don't think they are, necessarily. because on a short-term view, yes. developed markets have been very
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unloved. earn's been worried about the aftermath of the crisis, the european sovereign debt crisis as well. and developed markets have been relatively cheap on an evaluation's basis. but on an immediate yum-term view the fundamentals for emerging markets are indeed a lot stronger in terms of much better public debt positions, for example, higher-trend growth and in many cases better demographicless so i think -- >> that's the economics. but let's look at the politics. egypt has reminded us that there are severe risks associated with certain emerging markets, probably many emerging markets at the political level and things can quite suddenly get out of hand? >> true. egypt is a strong reminder that that's the case in certain instances. but if i look at the asset class overall, the fundamentals for emerging markets are far better than they were 10 to 15 years ago if you think back to the asian crisis, the crisis in
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brazil, are shall, turkey, argentina, the late 1990s. the fundamentals have improved dramatically since that point in time. inflation, although we worry about it cyclicly, it's still low relative to history and balance of payment fundamentals are much improved than they were 15 years ago. >> here i think is the fundamental question. for many people, including myself who have done quite well in emerging markets in terms of portfolios aring on amounts of emerging market assets and seeing those decline. are you saying hold tight? are you also saying to people who might be slow outside the market, this is a good opportunity to get in? >> currently, we're diversified across both developed and emerging markets. i think if the emerging markets and the fears over inflation intensify further and they may and prices come off a bit further that will ultimately be
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a good buying opportunity. >> that's whou you need a diversified portfolio? >> i would emphasize that. many thanks, andrew? charles in just a moment we'll check on massive flooding in sri lanka. the minister of agriculture says more than 90% of the country's rice patties have been submerged. we'll hear whether more rain is on the way. you're watching "world business today."
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that looks pretty ordinary, doesn't it? that's the view across hong kong harbor on a very misty day. i hear you laughing, charles. we have to suffer through this stuff. you were wondering why i had a cough. i'm lucky i'm still alive. >> we can't help some things, absolutely. it looks like the average day in
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london. that's the tropics. that's like the streets here in london. but seriously, talking to weather, there's a really serious tragic side because massive flooding in sri lanka has killed at least 11 people and displaced more than 320,000. our meteorologist is at the cnn weather center with the latest on the situation. this is very serious, jen? >> absolutely. 1.2 million people have been affected by recent flooding acrossous acro across sri lanka. and to give you an idea of the area hardest hit, looking at the floods, reportedly, again, 1,000 millimeters of rainfall. this is in january. typically, in january he see about 210. for february alone, more than 400 millimeters of rainfall. so you understand why they're dealing with the flooding situation. this is their third round of
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heavy rainfall. here's some video coming into us new from the red cross. they want to get the word out how bad is situation is across sri lanka. in areas especially in the north central province of sri lanka. the streets are flooded. flash flooding has taken the lives of people and as charles mentioned, 1 toin 2 million people have been affected and 300,000 people have been displaced alone. as i show you why, the reason we're dealing with heavy rainfall is we've had this persistent area of low pressure of the region over over the last ten days. this area of low pressure will continue to bring rain and over the last 24 hours, i want to point out some of the totals have been pretty impressive. almost to 100 millimeters. that may not sound like a lot but when you're dealing with widespread flooding that will make situation worse and to make matters worse, we're talking about how it's have been an effect on the economic part of
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sri lanka. about 90% of the rice has been damaged from the heavy rainfall over the last three months. the next couple of days, up toward the north they will continue to pick up the moisture and, again, that's that monsoonal moisture that's heavy through parts of sri lanka. charles? >> jennifer, thank you very much, indeed. >> sad story. andrew? >> we'll take a short break. when we come back, we'll look more deeply at those mixed signals coming from toyota, long-term, it looks better. we'll be talking about that in just a moment. stay with us.
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from cnn london i'm charles hodson. >> and i'm andrew stevens at cnn hong kong. welcome back. you're watching "world business today." we're nearly 92 minutes into the trading day on european stock markets and the picture is pretty much where we were a little bit earlier on with slight losses for the london ftsi and scant losses in paris and small gains for the zurich smi. we're seeing some decent gains for one or two stocks. a little bit of strength for bg group here many london, andrew? >> charles, tokyo and sydney are the only markets to finish higher.
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tokyo up on the back open wall street's positive close. resources company leading the way. financial stocks also having a pretty good day. the s&p almost up by a half of 1%. in south koreay, the kospi down by the same amount or so. concerns in south korea there will be another interest rate rise this week. central bank of korea will talk on friday when its due to hand down its decision on whether to race rates again. and investors are digesting the latest earnings numbers from toyota. they say their profits fell sharply in the last quarter. but that it's outlook for the full fiscal year is looking up. we'll go to cnn with more on that story. a bit of give and a bit of take? >> that's putting it perfectly, andrew. it is definitely mixed results we got from toyota today in the third quarter earnings result. if you look specifically at their third quarter, the profits
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were in the black. they say they got a profit in the third quarter of $1.1 billion u.s. but if you compare it year-on-year to the third quarter of the previous year it's a loss of 39% in profits so they were certainly hurt in the third quarter. if you look at what they are expecting to report over the entire fiscal year, at the end other the fiscal year, they are expecting to report that they will have more than doubled profits year-on-year. so certainly, things are looking up overall for the automaker if you look at the entire year. but it has certainly been a struggle for toyota. the biggest challenge overall when it comes to their earnings has been the strong yen. it has simply been punishing for a company like toyota, that is one of japan's largest exporters, the yen has strengthened some 15% versus the u.s. dollar so you can imagine what that does to the bottom line. and the other challenge for toyota, if you're a consumer looking to buy a car, it's been
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the worldwide recalls. toyota throughout the year has had to deal with some safety issues. tomorrow, nitsa, the u.s. safety branching are will release a 10-month investigation. the results of their investigation that will look at the sticky gas pedals. it is an investigation that will look specifically at whether or not electronics played any part in those sticky gas pedals that led to some deaths specifically in the united states. and in north america. that's the largest consumer market for toyota. toyota is saying they won't speculate on the results of the investigation because they simply don't know them yet but they are looking for them and this is definitely a company still trying to recover from the recall fallout. here's what they said. >> translator: as soon as we get the results of investigation we'll scrutinize the content. >> translator: gradually we hope we're winning back our customer's confidence in us and our cars but the journey is not
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yet completed. >> and certainly, when you look forward to what toyota's looking at trying to recover some of the consumer confidence they believe they're about halfway there but certainly, the big challenge for them, andrew, especially when we talk specifically about their books and earnings it's absolutely currency. insurgen currency has been very difficult for companies like toyota to deal with. >> absolutely. certainly not alone in struggling with the strong yen. thank you so much for that. charles? >> quite some factor on the currency markets. that includes the present time. no question about the results from wall street on monday. a record-breaking day a positive end of the business spectrum with news of several companies merging. >> a merger monday kept the rally going as nearly a third of the company listed on the dow touched fresh 52-week highs. the dow rose 62 points closing
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at 12,161 a 52-week high. the nasdaq and s&p added more than half a percent. a pair of multibillion dollar deals fueled the rally. beckman colter is being bought by over $6 billion. they make lab equipment used in medical diagnostics and pharmaceutical development. this would give them a larger foothold in the growing medical diagnostics market. they've been struggling to you its revenue including the sales so it's using acquisitions to grow the revenue base. and a pair of oil service companies are combining to form the world's second largest offshore driller. ensco will acquire tex's pride international in a deal worth more than $7 billion. many believe pride is one of only a few companies in a position to meet the demands of new, tighter government regulations on offshore drilling. the regulations are a direct
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result of last year's bp disaster in the gulf of mexico. on tuesday, sara lee, the subject of merger rumors for more than a year will report its quarterly results. sara lee recently decided to split itself into two companies. and analyst also get earnings from walt disney. they are scheduled to report after tuesday's closing bell. that's a wrap of the day on wall street. back to you. >> the latest deal turned versz off on monday, aol shares sank more than 3% on news the company is buying the huffington post. the $315 million deal ties up more than 40% of aol's cash. by far the biggest purchase in aol's buying spree of content providers. i guess that's the stock market reaction you would expect. the new media arm is called the huffington post media group and arianna huffington will have
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editorial control. speaking with her. tim armstrong laid out plans for growth under the new partnership. >> international is a place that the huffington post and aol has started to make moves in. we did a big acquisition in europe, "go viral." huffington post has international areas they are looking at. the second spectrum will be around the content platforms and content engines we have in general, getting more people involved in creating content at a high quality standpoint and the third is a expansion of the advertising business. the premium brand huffington post represents and the brand of the world are thirsty. if you're coca-cola or general motors, to really take your band to the next level digitally and i think we offer a platform that is unique not just in this country but countries around the world. coming up, two economic powerhouses from the americas
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may be pa may be pairing up against china.
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welcome back. live from cnn hong kong and cnn london, this is "world business today." indonesia's economy revved up to its fastest pace of gowth in six years in 2010. in the fourth quarter, the country saw its economy expand by 6.9% compared with the year earlier. that made analysts forecast although it rose concerns about the country overheating. neeng's rapid growth follows robust annual performances in china, singapore and malaysia, so certainly not alone. joining us now from jakarta is indonesia's minister for trade. minister, thank you very much for joining us. that is a fast rate of growth. the fastest rate of growth in
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six years. is the indonesian economy overheating now? >> no. i think we're happy that the growth rate at the end is now 6.1% for the whole year. which is higher than we expected. and it's not overheating because while we have inflation coming in at 6.98% last year, and 0.89% january of this year, a lot of that has been as with the rest of the world, been driven by high food prices. it's not been caused by overheating in the sense of supply being less than demand. and we don't see core inflation, for instance, is still 4.8% so we're quite confident that we can manage growth at 6.3% this year. and what we do need to manage, is, of course, the food price inflation. >> food prices rose, i think, last month, up by something like
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15%. certainly not a problem unique to indonesia. many, many countries emerging markets in particular, are being hit hard by this. >> that's right. >> how do you deal with it? >> well, you know, with the experience of 2008 helped us a lot to have all the preparation at hand. and quick response. so we've done three things, basically. one, reduce the import tariff as well the value-added taxes on imported food as well as sales of food domestically. to dampen the high prices of the world being transmit dodd emsally. second, ensure sufficient stocks, especially for rice. right now it's not harvest period so, you know, make sure that the stock is sufficient. so we've imported about 1.5 million tons of rice which is about 3% of our consumption. and -- >> is that enough? >> with the harvest coming on board -- yes. that's enough. we've got harvest beginning in february and the peak harvest will come in march and april so
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assuming no weather-related reduction in production, we should be seeing rice prices coming down and, in fact, first week of february, we have already seen a decline of rice prices of 2%. so on rice, i think we can manage. but, of course, the other prices such as cooking oil, soybean, palm oil which leads to our cooking oil price going up. those are the ones that we continue to still have to manage. and for rice, obviously, insuring production will meet its target and ensuring sufficient stocks will be the answer to managing price of rice. >> very, very tricky. >> core inflation as i said is still stable. >> okay. i just want to ask you, also -- about indonesia has become -- if i could ask you quickly we're running out of time. about indonesia becoming a hot investment destination. one of the reasons for that is
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it's been a stable government for some years now. but there is still this question about corruption which hangs over the country in many areas and we've recently saw the story of the tax inspector who took millions of dollars in bribes. do you think the government is bringing corruption under control? >> yes. we've been very serious and committed to reducing and attacking corruption at its root. and if you reflect on the cases that are going on now, a few years ago that kind of case wouldn't have even been brought to court, let alone being made public. so we'll continue to address corruption and we're very committed to it. there's all kinds of policies in place to be more preventive these days and to deal heavy punishment. and at the end of the day we're seeing continuing to see short term as well as medium-term capital coming into the country because our fundamentals are sound.
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and we believe that it will continue to be sound because we are also very committed to ensuring macrostability as well as continuing our reform program. >> all right. thanks so much for joining us. indonesia's economy heats up, is china's cooling down? we'll learn what the world bank is saying about that. and then talk live with a top analyst. all that next here on "world business today." gr d t ?gaue
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welcome back live from cnn hong kong and london. this is "world business today." china has been the world's big growth story as we know in recent years but the u.s. has repeatedly attacked the cheap currency policy that's underpinned much of that growth. on monday, washington ratcheted up the pressure on beijing when the treasury secretary tim
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geithner visited brazil's president. geithner is attempting to gain brazil's support in getting china to allow its currency, the yuan to preesh. so as pressure to raise the yuan, could the economy start. the cold economy says the gdp will slow from 10% last year. still fairly strong growth but the bank's forecast for china in 2012 is lower still. 8.4%. even with that, hsbc says in recent research by 2020, six chinese provinces will each be as big as the economies of russia, spain or canada. joining us for a look as where the world's second biggest economy is going is the head of china's economic research. i want to ask you about this heating up, if you like, between the u.s. treasury secretary and
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the brazilsiians to try to put pressure on brazil to pressure united states its currency faster. do you think they'll have any success? >> well, i think the pressure from countries outside of the u.s. have already mounted in the last couple of years. pressure from brazil, from india, from other emerging markets have been there. so pressures in g-20 meetings are there so if you look at recent developments including president hu jintao's visit to washington and recent treasury the bi-annual report talking about china not manipulating the currency it still seems to tone is more cooperative on both sides. i think china, on one hand, will resist pressure to revalue or appreciate the currency very drastically but at the same time they will gradually appreciate.
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>> okay. let's look at the chinese economy because we have seen a selloff last year in equities down about 14% or so. this year, the china markets have been flat. does that suggest and do you agree, that the worst or the uncertainty about china's inflation issues and about overheating problems, are now behind it? >> not sure the concerns about inflation is behind us. i think the market is still very concerned about inflation and governments measure, probably, to drastically slow down the economy. i don't necessarily agree with that fear because i think the government will unlikely take a very aggressive measures to cool down the economy. and the inflation so far has mainly been driven by food prices and food prices have seasonalities and we expect inflation to moderate in the
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second half. our forecast for growth actually is 9.5% for 2011. slower than the 10.3% last year but not much slower. >> not much slower at all compared with 8.7% from the world bank which has just come out today. so if you look down the road several more years do you see china maintaining this sort of growth rate between eight, nine, 10%? >> well, over the longer term, i think china's growth will slow down. over the last ten years, actually, almost 30 years, china's average growth was 10%. in the next ten years we expect growth to average below 8%. but in the next say, two or three years, it's still going to be eight or 9% or so, so slower as compared to before the crisis but still at a very fast pace. >> indeed. we'll leave it there. thank you so much for joining
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us. let's take a final look at the stock markets here in europe and kind of fairly balanced was the picture we saw 25 minutes or so ago. that's still the case. actually, london, they've crossed into positive territories. up by about a quarter of a percent. only london down, despite the fact that some big commodity stocks and bg group also doing well on that particular market. andrew? a bit of a mixed session across asia as we wrap up our session. this is how the day ended. hong kong and seoul both down and the nikkei up. toyota out with numbers that show profits for the full year are looking pretty strong, despite all the recalls and, also, there's going to be a big announcement later today for toyota. the u.s. authorities have been investigating the sticky gas pedals finally release their report so we'll be watching that one.
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if you have any comments on any of the stories you see, get in touch with the team on our facebook page. go to facebook.com/cnnwbt and leave your thought there is. you've been watching "world business today." i'm andrew stevens in hong kong. >> and i'm charles hodson in london. here are stories we're working on. rebel promising more to come. protesters back on the streets in egypt. they're still there but so is he. hosni mubarak clings on to power. and just what is wrong with this picture? the u.s. driver going full speed ahead. but in the wrong direction. details on that plus more, ahead on "world one." ♪
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