tv World Business Today CNN April 19, 2011 4:00am-5:00am EDT
each week she shocks me, each week, with the stuff she says. >> i love it. >> she is. >> sharon, i know what you're doing because you're doing "america's good talent" with me. >> and you have strict restrictions to keep her out of trouble, please. >> trust me, it comes the other way. i'm in one in trouble here. great show. back on nbc in the summer. great pleasure, ladies, to have you on. i really enjoyed it. i'm zain vergee at cnn in london. here are the headlines. bombs and bullets send thousands of people scrambling for a way out of misrata. it has been under fire by gadhafi forces for weeks. but the attacks have been especially intense in the past couple of days. people in the city say nato needs to do more to protect them. a human rights activist says syrian troops fired on demonstrators overnight. they gathered despite a warning by authorities not to.
opposition sources say police fired on demonstrators, leaving 24 people dead. syrian state media claimed the protesters shot first. the votes have been counted and nigeria's incumbent president won another term in office. goodluck jonathan got enough votes to win a runoff but the election outcome sparked riots where voters favored mr. jonathan's opponent. emote-controlled robots completed their measurements at the fukushima daiichi nuclear plant. they found high level of radiation in and around the reactors one and three. the death toll from japan's earthquake and tsunami last month has reached nearly 14,000. those are the headlines, i'm zain vergee in london. "world business today" starts now. a very good morning from cnn in london, i'm nina dos santos.
>> from cnn hong kong, i'm pauline chiou. welcome to the show. here are the top stories. grisly trade. and oil-rich nigeria's stability is threatened. and carmakers from around the world gather in shanghai. u.s. pessimism, european uncertainty and chinese caution, three factors that have conspired to unsettle markets around the world. we'll bring you those numbers in a moment. first let me bring you the wider picture. we've seen an adisrupt sell-off here in asia today after standard & poors cut long-term outlook on u.s. debt to negative. s&p maintained an aaa rating. but stocks ended sharply down on monday. europe remains jittery.
the true finn political party could threaten eu plans for a portuguese bailout. here in asia, china's ongoing struggle with inflation is weighing on markets today. we've been seeing that today throughout the sessions. nina? >> pauline, european stock markets trading higher at the moment after their biggest drop in about a month just yesterday. upbeat earnings staples from some of the large companies around the region are helping to counter ongoing concerns about portugal's bailout. shares of luxury goodsmakers are rising after upset outlooks. that's helping to support gains on the cac 40 and the ftse 100. and underpinning some of the gains through the french markets is edf, shares jumping about 4% at the start of trading in paris. the dax is also rising in germany as you can see.
currently up by by 0.5%. one stock we're focusing on at the moment is sap. those shares up by 1.5%. the major currencies the day after standard & poors downgraded its debt outlook for the first time in 70 years. what we have going on is the yen currently rising a little bit against the u.s. dollar. the euro currently trading at 1.4253 and the british found more or less flat against the u.s. dollar, 1.6267 at the moment, pauline? nina, here in asia we saw a substantial sell-off as i mentioned earlier, almost across the board when the markets opened this morning. that was largely a reaction to standard & poors' outlook on the u.s. debt. nikkei down by more than 1.2%. investors were looking for safe havens like the yen and also gold. yen was trading at around 82.50
as nina mentioned. it pushed gold up to 1493 an ounce. the hang seng off by 1.3, the shanghai composite by 1.87%. one of the biggest victims today was toyota, the world's number one automaker saw its stock slide 3.1% in tokyo. that was just a day after news broke that production resumed at all of the company's domestic plants. another casualty, the tokyo electric power company. tepco stock dropped 2.8% on tuesday, nina. >> thanks very much, pauline. listen to this. it's a welcome sound for investors there in wall street. we're about to hear the opening bell after a wall street difficult ride on monday. that ratings blow from standard & poors that you were talking about, giving stocks quite a hammering on the other
side of the atlantic though they did manage to bounce back a little bit from the session's lows. at the close, the major indices were all off by more than 1%. here's a look at where the u.s. market stands. the futures action is showing us we could see a lower open. some of the futures markets down to the tune of about 0.08% as you can see there. while s&p downgraded its outlook on u.s. debt, we should stress it hasn't downgraded its credit rating yet. the ratings agency is warning that that's not completely out of the question if democrats and republicans can't agree to a plan to tackle the problem. let's take a look at the u.s. federal deficit as a whole. it currently stands at $1.4 trillion as you can see. it's forecast to actually grow to $1.5 trillion. that's by the end of this financial year. the country's overall debt limit is $14.3 trillion right now. and president obama is warning of a new global recession. if that isn't increased, pauline.
the white house is keying to downplay s&p's intervention saying that any warning should be taken in context. >> what the s&p analysis also said was that the american economy is strong. it's growing, diversified, dynamic. it continues to be the most important and most powerful economy in the world. as for its political analysis, we simply believe that the prospects are better. we think that the political process will outperform s&p expectations. >> but the man responsible for the u.s. outlook downgrade is skeptical about these kinds of claims, telling cnn that the political process has got a very long way to go. >> given the political golf between the parties, given where we are in the runup to the presidential and congressional elections in november of next year, we just have big questions as to whether a meaningful
compromise can be reached between congress and the administration over the coming months. >> well, here's one note of optimism for the u.s. administration. japan says it's committed to holding u.s. treasuries, describing the nation's debt as an attractive investment. japan, the world's third largest economy is the second biggest holder of u.s. treasuries after china. let's take a look at some of the other top business stories this house. goldman sachs reports its first quarter earnings today. analysts expect it will show that profit is likely to be low because of weak trading and a charge for buying back $5 billion in preferred stock from investor warren buffett. 47-year-old italian pietro ferrero has died in an south african in south africa. he was chief executive of a fami family-owned company that made his father italy's richest man.
he apparently fainted and fell from his bike during a routine bike ride. apple is suing samsung in u.s. court. it claims that the south korean company is infringing its copyright, saying the galaxy tablets have the look and feel of apple's iphone and the ipad. nigeria's presidential election result is in and there's no change at the tape. there is a revolt among poorer sections of the population. officials say incumbent president, goodluck jonathan received 57% of the vote. it's a clear victory but also a divisive one. jonathan is a christian, hailing from the oil-rich soij of niuth nigeria. violent protests have broken out, injuring at least 100 people since the result was declared. that is according to nigeria's red cross. nigeria is a nation on the rise.
ongoing unrest could have negative implications for its growth. the country is africa's second largest economy with a gdp of almost $370 billion last year. it's also the continent's largest oil producer. oil accounts for almost 80% of nigeria's gdp and more than 90% of the country's total exports. nigeria spent $34 billion on imports last year and china is the country's largest import partner. that's a lot of trade and also a lot of money but relatively little of that wealth finds its way to northern nigeria, where traditional industry is in decline and unemployment is rising. you're watching "world business today." the brics countries are flexing their muscle. we'll find out what that means for global business, just ahead.
in parts of the middle east and north africa to drive prices higher once again. right now, nymex crude is trading down 85 cents. the current price is about $106.27 a barrel. live from cnn hong kong and london, this is "world business today." brazil, russia, india and china and south africa, the so-called brics country are demanding a bigger role in global affairs. it's a demand based largely on real data. together these rapidly industrializing nations make up no less than 0% of the world's total population and nearly a quarter of its economic output. the brics economy seem poised to grow. earlier, we sat down with the finance minister. he asked the minister about the economy and the future interaction between the brics countries and the rest of the
world. >> translator: the u.s. economy was hard hit by the crisis. one of the main problems they have is public debt management. you have to juggle on the one hand a recovery. at the same time, work on your deficit. you have to balance these two situations. if you go too heavy on deficit, there will be no growth, no employment. we will need more time to restructure the deficit to allow the economy to grow and create jobs. it is unavoidable for an economy that shows a deficit of 10% ever gdp to have a high risk. >> now that you mention that the u.s. is juggling between many situations, how do you think it's doing? is it doing a good job? >> translator: it would be more a matter of juggling fiscal stimuli with the monetary policy. i think your subprime problem is not yet resolved. you have the economy, a segment that has no consuling. qe-2 is money that goes to the banks but has not reached
consumers or investors. >> the international monetary fund said that brazil, china and turkey are notable examples of emerging market nations where conditions suggest a banking cris crisis, that a banking crisis should arise. what's your answer for that? >> translator: brazilian assets from the banks are growing much faster than the chinese bank assets. that shows strength in our financial markets. brazilian banks are more more regulated than u.s. banks. we do not allow leverage funds and derivatives. >> let's talk about brazil. since 2009, they have gained around 47% against the dollar. what worries you the most? >> translator: we have to worry about both sides. appreciation of real was due to two things, number one, brazil is attractive and by being attractive, it allows for cheating and arbitrage and also
the dollar has never been as weak as it is now. if you bench mark the real with a basket of currencies, we realize the real didn't appreciate that much. >> that's about currency. what about inflation. >> translator: inflation today is going up less so than china or other countries. we have taken action to slow down the economy, the credit expansion and succeeded. the brazilian economy grew 7.5% last year, this year, 4.a%. it's growing less. >> now that you mention china and your government being very vocal about how the government maintains the -- artificially low, in the u.s., what countries should brazil and the emerging markets be looking at in order to do business with? >> translator: at this juncture, the commercial relations with
china are easier for us. there are problems, of course. the president has just returned from china and i think she's solved some of them, opening up the chinese market for brazilian manufacturers, for instance. now concerning the united states, i think our commerce lagged behind. obama was in brazil recently, a good trip and we're going to open up our market more. >> that's cnn luis carlos valez sitting down with guido montego. in 2010, american-made goods made up almost 15% of brazil's imports. up next on "world business today," can business be a force for good in the fight against slavery? this week we meet the companies that say, yes, it can. hats just ahead.
this year cnn is joining the fight to end modern day slavery. we're calling our campaign the cnn freedom project. and "world business today" is playing its part. all this week on wmplt bt we're looking at how businesses and consumers can help and we're profiling some of the companies that have a zero tolerance policy towards slavery. >> we begin with a firm that's using a market-based approach to try and eliminate child labor in the carpet industry. good weave says it wants to create a market for rugs. >> the art of rug-making dates back as far back as 5,000 b.c. april average rug may have as many as a million hand-tied knots and take months to
complete. children are sometimes kidnapped or sold to factories to keep costs low. they're forced to work punishing hours at their looms for little or no pay. this woman is fully engaged in the fight to stop this modern form of slavery. her name is nina smith, the executive director of goodweave usa. >> right now with the economic downturn globally there's really a push for cheaper products on the consumer end. so the cheapest available labor is bonded child labor. >> reporter: smith's goal, to put the goodweave seal of approval on handmade rugs that are made without child labor. >> the goodweave certification label is on the flip side of the carpet. >> reporter: the seal is the rugmaker's guarantee that only skimmed artisans were involved in these distinctive works of art. >> not only does it mean that their product is child labor free and the place that that rug was made was inspected but it
also means a percentage of the purchase price is educating children. that's very important. the very special thing we do is actually identify exploit atif child labor, rescue children and provide them long-term educational support so that they don't fall back into the work force. >> reporter: among the thousands of children goodweave has rescued, this teenager from nepal. the girl is now 13 and giving in a goodweave center in katmandu. she hopes to one day work in the sewing industry after she finishes her education. to help offset some of the costs of rescues, they charge a licensing fee to certify that their products are child labor free. smith says it's well worth it for rugmakers to join. >> the bottom line is, money talks. if we take away the financial incentive for a producer to use child labor, then we're keeping the children away. so in other words, if a buyer in
the united states refuses to purchase from a supplier who's known to be using child labor, who isn't part of goodweave, then they're losing business. >> reporter: the cost of participating in goodweave adds about a half a percent of the price of a rug. an average of $10 to $20. showroom owners and designers say so far consumers have been enthusiastic. >> our customers are very concerned about child labor in the carpet industry. i hear them talking in the elevator in my own building where i work, saying that they don't want to go to a showroom that sells rugs that are made with child labor. and the designer will say this showroom is a goodweave certified showroom. that's why we're going there. >> reporter: as for retail chains, macy's now sells goodweave certified rugs. momentum is on its side. it claims its efforts have led to a 57% reduction in the use of child labor in south asia rug
factories. smith says child labor is a problem that can no longer be swept internet rug. maggie lake, cnn, new york. according to the international labor organization, an estimated 215 million children twenty ages of 5 and 17 are in the global labor force. in its 2003 study, investing in every child, the ilo estimated the cost of eliminating child labor to be around $760 billion. that figure includes the cost of introducing universal education, improving health care and subtracting children's wages from household incomes. but it said the economic benefits of wiping out child labor would be seven times as great as the amount lost. $5 trillion. nina? >> staggering statistic, isn't it, pauline? at this time tomorrow on "world business today," we'll show you how two factories
session. what we have going on at the moment is upbeat earnings statements, countering the ongoing concerns about portugal's ability to negotiate a bailout and get the money from the imf and eu. shares in luxury goodsmakers are rising after upbeat earnings statements and outlooks from those companies. that in turn is helping to lift the cac 40 in paris and the ftse 100 in london. edf shares are also up as well. that's helping to lift the cac 40 as well. that's after a significant sell-off in a month after yesterday's session, pauline. >> that's quite a bounce-back you have there, nina. here in asia, we're categorically in the red zone at the close of trading. that's mainly a response to that u.s. outlook downgrade by standard & poors. the major indices ended down by more than 1%. investors were really looking
for a safe haven assets, putting their money into investments like gold and yen, driving the yen stronger, trading at about 82.50 to the dollar. and gold hit 1493 an ounce. nina? the up to date with asian trading and european trading, let's take a look at how things fared on the other side of atlantic. in the united states, wall street had its worst session in a month as shares mounted about the country's debt. >> wall street was hit with a sell-off monday after standard & poors issued a negative outlook on u.s. long-term debt. one analyst called it a reality check for the u.s. situation. at the close, the dow fell 140 points to 12201. the nasdaq and s&p also slipped by about 1%. to be clear, s&p downgraded its outlook. it maintained the u.s.'s aaa
credit rating which is the highest one possible. it warned that rating is at risk as lawmakers can't reach an agreement in the next few years to cut the country's rising debt. coming up on tuesday, earnings season kicks into high gear. goldman sachs reports before the opening bell, yahoo! ibm and intel are out after the close. on the economic front, we get housing starts and building permits for march. that's a wrap of the day from wall street. wednesday marks the first an verse riff the bp oil disaster in the gulf of mexico. it was on april 20th, 2010 when a rig exploded, killing seven workers and unleashing the worst offshore oil spill in u.s. history. since that time, bp has paid compensation of $3.8 billion on 300,000 claims. from businesses and individuals hurt by the spill. welcome back. you're watching "world business today." here's a quick time line for the disaster. it was on april 20th as we were just saying last year, when that
explosion and fire killed 11 workers on the "deep water horizon" platform. within days the rig sank and thousands of barrels of oil spewed out in the gulf of mexico. on may 19th, the first oil from the spill reach the fragile louisiana marshlands. at the disaster's peak, some 1,500 kilometers of u.s. gulf coast shoreline were affected as a result. by may 25th, scientists estimated that the spill had become the worst ever in u.s. history. and the white house imposed a six-month ban on deep water drilling. it wasn't until july 15th that a contaminated dome finally plugged that ruptured well but not before almost 5 million barrels of oil leaked into the gulf of mexico. the money paid to compensate people affected may help some businesses get back on their feet. but as felipe cousteau discovered, when he went back to the hard-hit beaches of alabama,
it may take years, even decades for the environment and the travel industry to fully cover. >> reporter: these are the clean beaches of gulf shores, alabama. they are regularly maintained to make sure the tourism industry here that was devastated last year, can bounce back. but the beaches in alabama are not all clean. a fact that concerns environmentalists casey callaway who grew up in this area. >> we are known for sugar white sand beaches, so fine, so pure with nothing but shell in there and not even a whole lot of shell. but what we're seeing now is oil and goo and tar and who knows what else that's all intermixed and intertwined, not just in the sand but often right behind the first wave line, behind the dunes. >> reporter: because of the dispersants used, the al takes the form of small tar balls, about 35 kilometers to the west of gulf shores we find a beach that is covered in them. >> this beach hasn't been deep
cleaned, quote, unquote, but every day something new washes ashore. some new layer. if you just glance at it you might think it's pebbles but what it is, all of these, are tar balls. >> here we go. just mushy, gross. >> you can smell it. >> you can smell the hydrocarbons which means there's some toxicity to these. >> potentially, yes. >> these will be present for decades but scientists say they are relatively nontoxic. the greater concern is the unknown. after the introduction to so much oil to the gulf coast, scientists are still not sure how the echo system will respond. >> once you take a system that's going and productive and producing fish and you say now you're going to behave like this, there's not a large amount of time for things to compensate and to deal with new sources of energy and new pathways within food chains.
and so you can have a short-term effect, actually cascade out into a long-term problem. >> reporter: a long-term problem that affects so many livelihoods along the gulf coast. lynne whitman's shop took a hit during last year's tourism dropoff. but she did not have to close, thanks in part to money from bp. >> the summer was very slow. i don't think we made as much in june, july and august as we did in march. >> we hope the u.s. can learn lessons from this disaster. >> i know we have to have energy and i know we're not prepared at this time to switch to wind or water or switch to something else. we don't have enough of it. we're stuck with some of the dirty energies. i think we're just going to have to start making that move now toward clean energy. >> reporter: a change that could help protect this environment for future generations. for cnn, i'm felipe cousteau. bp still faces billions of
dollars of potential fines and payouts over the spill. the company set aside $40 billion to pay for the cleanup and litigation and around 300 lawsuits have been filed against bp. now, let's take a look at bp's shares over the past couple of years. now, this chart shows you the three-year span here. this whole section is really the global financial crisis but we're going to focus on this area. right here the peak here is april 20th when that oil rig exploded. and then you see the steep dive. this was a period two of days between april 23rd and april 25th. where the stock price of bp dropped more than 52% there. so that's a look back. it's hard to believe that it's been a year since that bp oil rig explosion. well, coming up next, china's auto extravaganza, carmakers from around the world gather in shanghai.
>> i'm eunice yoon at the shanghai auto show where the world's carmakers are vying for the attention of the chinese consumer. back in a moment. one day i'm onp of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience
live from cnn on congress a -- hong kong and london, this is "world business today." the shanghai auto show has just opened this week. and its organizers expect 700,000 visitors over the next six days to view 1,100 vehicles. 75 of them are new models. and 19 are making their world deb debuts. general motors says it hopes to double its sales in china over the next five years. in the two years since the last shanghai auto show, china has overtaken the u.s. as the world's top car market. so today manufacturers are all about capturing the attention of
the chinese consumer. eunice yoon joins us live from the shanghai auto show. what an exciting assignment. eunice, there are so many new cars making their debut this week, what's the buzz like there? >> reporter: there's a lot of buzz, complete madness. there is so many people here as you had mentioned. there are supposed to be hundreds of thousands coming this week. however, the big talk has been mainly about how important the china market is, a lot of the carmakers have been emphasizing how important it is. as you mention, gm plans to double its sales by 2015. these are really huge numbers. however, there is one underlying current of concern, that is about the disruption to the global supply chain. song and dance premieres galore. crowds of curious fans. this is the shanghai auto show, a car show in the world's biggest auto market.
players like toyota, audi, mazza and ford are flaunting their latest creations. overshadowing the marketing mania is concern about the road ahead as carmakers race to find the parts they need in the wake of the devastating earthquake in japan. it's been over a month since the japan quake and the industry is still struggling with the shortage of supplies. japan is a dominant producer of auto parts and it's the largest when it comes to certain tricks. but the quake has forced many of the suppliers to shut down. >> obviously a terrible tragedy for the people of japan. it's really deep. it's not just the supply base that directly supplies the auto companies but they're suppliers and their suppliers. it's a complex situation that's evolving every day. >> reporter: to cope, carmakers like general motors have idled production lines, ford is rationing some items like paint. volvo which was running low on inventories is now working with new suppliers. >> we have some specific components that we are relying
on japan but we managed together with the suppliers from japan to find alternatives within japan but also out of other countries and other production locations abroad. >> reporter: that's unsettling news for many japanese suppliers, still grappling with structural damage and power outages. many fear they could lose business for good as their customers start to forge new relationships. some analysts say if the shortages persist, global production could shrink by a third this year. so far, most carmakers say their sales haven't been affected but they're bracing for more obstacles. >> the japan quake results will play out over the next several months. it's a critical time when the suppliers will be ramping back up and inventory is coming down. >> reporter: to an industry that was only just starting to perform again after the global financial crisis.
government officials have been warning that the car market here will slow down but pauline, the executives here say, yes, there will be a slowdown in the car market as long as you consider 10% growth a slowdown. >> right. most other sectors would just love to be able to say that, eunice. i wanted to ask you about fuel efficiency. the price of gas is rising these days. fuel efficient cars are certainly on the radar. are you seeing anything new on that front? >> reporter: there are several new fuel efficient cars that we have seen. one of the policy goals as you know of china is to have a more environmentally friendly place. if you have millions upon millions of people all buying their cars for the first time, all hitting their road, you want to try to probably have more fuel efficient and eco friendly cars in the mix. one of them that we saw was gm's
malibu, the chevy malibu, which was redesigned for -- it's a midsize sedan that was redesigned. another eye popper was the vw beetle. also the engine, it's the most fuel efficient beetle yet. they really want to hit this one hard when it comes to the china market, pauline. >> all right. eunice yoon at the beginning of the shanghai auto show. thanks so much, eunice. nina, many different models of new cars being unveiled this week. so look out. >> that's absolutely right. let me tell you about another one, the volkswagen beetle here. they are hoping that chinese drivers become fans of the new beetle. the company unveiled the new design in new york, berlin and shanghai. it has a lower profile and it's wider and longer than its predecessor. it's the sportiest, most fuel
efficient model ever. the new beetle has less flower, more power. >> vw's largest single market now worldwide is china. it's overtaken germany. volkswagen group, great infrastructure, great footprint in the chinese market and chinese consumers are very well aware of the global product. important part of energy behind the volkswagen brand is the beetle into the chinese market. got a lot of expectations in terms of how chinese customers will respond to the beetle. not just chinese customers, also in europe as well. so really a global presence. that's why you see us going through this 24-hour cycle of a global reveal, shanghai, berlin and new york. >> for all you beetle fans out there, the 2012 beetle goes on sale in the autumn. sky high and just inches
you see another cruise ship on the right-hand side of your screen in victoria harbor as visitors come and enjoy hong kong scenery. yesterday, we told you about the hong kong property boom that's causing overcrowding and sky high prices. today we want to tell you about a group of residents who have become the face of grass roots opposition to big developers. we have a modern tale of david versus goliath in hong kong's real estate sector. >> reporter: taking a stand. lying down. residents at this housing complex in a densely populated
area of hong kong make a bold statement. the baerns convey the sense ever betrayal and anger over building a 20-story building that they say will block out light and clean air. >> this is where our balcony is and this is the construction site. this is about two feet. we made a joke, if we want to borrow something, they can pass it to us. >> reporter: they keep a nice watch going to keep developer billion star out of the site. those are the trucks that got in but there's one that didn't quite make it. it was stopped in its tracks after a young residents rushed down from his apartment building after being roudz by his mother at 3:00 in the morning. he told us what happened. >> translator: i asked the driver what he's doing. then the driver said go away. if not, i will run you over.
i said, fine, run me over. then i laid down in front of the truck. >> reporter: billion star says the new building will be 7 to 15 meters from the mafu complex and residents were told of the plans. but it isn't just the proximity of the site that has some owners upset, it was the lack of consultation and clarity over who owns the land. they feel the government could have done more. the government has put out a statement saying in part there is no case for the government to interfere with a lawful private project. both billion star and the hong kong government declined requests to appear on camera. there's a growing feeling in hong kong that you never know when a new development will rise up next door and undermine quality of life or slash the value of your home. these young investors are campaign against the unaffordability of housing. their campout highlights the
underlying frustration of many. for them, big developers represent everything that's wrong with the balance of power in hong kong. in a recent survey from the university of hong kong, 17% of those questioned said they felt angry about the state of hong kong society. >> i see there is a desire amongst ordinary hong kong people to understand about why property developers make so much money here. and people are asking questions like how much taxes are they really paying? so i think this sense of the rich getting so much richer and, of course, some of the most wealthy people in hong kong are the property developers, so people are making that linkage. they're asking government what are you doing about it? is it a fair society? >> reporter: residents don't have time for a debate. for them, legal proceedings are the next step. a courtroom battle could end up being the focus for a wider movement in hong kong society. cnn, hong kong.
hong kong's buildings may touch the sky but let's get an expert check on things up there after a weekend of fierce storms. meteorologist jennifer delgado joins us from the cnn weather center. >> it was a wild weekend across parts of china. we're talking the southern coastline reportedly nearly 100 people were injured and reportedly more than 12 people died. that frontal system is well offshore. you can see it right now. it's really weakened over the last several days. let me show you video coming out of china. it's going to show you some of the damage left behind. store fronts were damaged, trees ripped out and you kang see roofs were actually ripped off. you're looking at a gentleman trying to clean up what's left of his store. the winds were actually more than 164 kilometers per hour, very strong across the region. luckily, things as i said, have settled down. as i take you over to a live shot coming out of london and
hopefully we can pull that up for you. we're not going to go to that london live shot. maybe hong kong's live shot is up and good for us. if it's not, we have weather graphics, too. there it is. a nice day indeed. luckily, high pressure is going to build back in as we go through the next several days. here's your proof. down toward the southern coastline of china it will be nice and dry. moisture out towards the west but nothing serious to talk about. now we'll send it back over to you. >> jennifer, thanks very much for that update there. let's take another look at the stock market action here in europe. clearly investors not too rattled by standard & poors negative call on u.s. debt. a number of the markets up to the tune of 0.8% or 0.5% when you're looking at the ftse 100. what we have going on is a series of outlooks going on.
we have statements from lvmh in france and others. ftse adding 0.5%, the smi in zurich is charging ahead, up by 0.8%. pauline? >> there's one color at the close of trade here, that's red. many traders were reacting to monday's u.s. outlook downgrade by standard & poors. all the major indices ending the day in negative territory. this, of course, pushed up the yen. the yen was stronger today, hurting japanese exporters. also investors going towards gold as well. that is all for this edition of "world business today." thanks for joining us. i'm pauline chiou in hong kong. and i'm nina dos santos in london. "world one" is next.