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tv   World Business Today  CNN  September 7, 2011 4:00am-5:00am EDT

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at least four people are dead and another 24 injured in a blast. officials are calling it a terrorist attack by an unknown group carried out with a homemade ammonium night trait bomb. experts are on on the scene and police have cordoned off the area. there's been a bombing in the city of qatar. the senior police official says 11 were killed when a suicide bomber blew himself up. another 20 were bounded. the city has seen many attacks in a taliban cam been it destabilize the government. talks to hand over control of a lebian town have seem to have broken down. reb be forces surrounding bani walid say gadhafi supporters have until saturday to surrender. four have been killed in mastiff wildfires burning in texas. more than 700 homes have been destroyed.
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the largest fire is this one near the city of austin. winds died down enough tuesday to allow teams to go in and check out some of the damage to the areas. those are the top stories from cnn, the world news leader. i'm zain verjee and "world business today" starts now. good morning from cnn london. >> and a good apfrom cnn hong kong. this is "world business today." these are your top stories. australian growth beats expectations in the second quarter, but some analysts predict tougher times ahead. >> and we'll look at the worst ways to get sacked. and turning heartache into hope. this family lost their son on 9/11. we'll show you how they honor his memory by helping others.
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we'll bring you all the market action shortly, but first a story just into us. saab is it appears filing for bankruptcy protection. the company wants to protect itself from it creditors while seeks a new round of funding. so production at the company's production in sweden has been stopped since june because it couldn't pay staff wages. saab says it will apply for on funds from the government so that it can pay workers what they're owed. we'll try to get you more on the story as the information keeps coming out. let's look at how things are fairing on the markets because we are seeing a bit of a return to confidence. the major indices opening all higher about an hour ago. as you can see, gains in excess of 2% for the cac 40, also the dax up by 2%. an footsieftse 100 not far behi.
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this currency is the swiss franc. but the franc's rapid rise was too much for switzerland. the central bank there surprised investors on tuesday by announcing that the exchange rate must drop not below 1.2 euros per swiss franc. and the central bank says it's prepared to enforce that by buying up euros in, quote, unlimited quantities. let's have a look at how this is affecting the currencies market. we've got the british pound trading against the u.s. dollar $159.88, the euro 1.4074. and yen at 77.27. but let's go back to the first national bank's bold move and its effects. it seems to have had the desired effect.
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>> over here, the trading day is just winding down an major markets have closed higher for the first time this week. and nina mentioned some of that volatility. it's still around. some traders here say given the battering that stocks have had, asia looks cheap. there's a big reassess the going on. we've had the likes of hyundai rallying looking to increase it market share. so there was a bit of bargain hunting going on. technology and energy represented stocks were among the biggest gainers. . but investors in australia have pretty interesting growth federal governments out to consider today. the economy there growing 1.2% in the second quarter. and that really did beat expectations. see where it's coming from. it shows that australia's recovery from a difficult first quarter is really happening. the dip there was the result of severe weather that took a toll on the country earlier this year. so the concern over europe's
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deepening debt crisis continue to play out on wall street. add to that the worries over the u.s. economic growth. all of that having a big impact on u.s. drops on tuesday. they extended last week's losses. the dow fell 101 points. the s&p also sang nearly a full percentage point. the nasdaq was down a fraction of a point.k nearly a full percentage point. the nasdaq was down a fraction of a point.nearly a full percentage point. the nasdaq was down a fraction of a point. nearly a full percentage point. the nasdaq was down a fraction of a point.k nearly a full percentage point. the nasdaq was down a fraction of a point. at this point u.s. markets look for a gain when trading begins. let's take a look at the futures and see where they stand in pre-market action. people really trying to assess still what's happening with the u.s. economy. there are the futures for you pointing up, but things have been pretty volatile and that volatility continues on these markets. >> it does indeed and what we've got is people plowing into those safe havens with the swiss
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national bank's intervention, that means perhaps swiss franc is off the cord, but yesterday high of gold was $1920. as you can see, it's now down by $30.70. at $1845.40. let's have a look at the price of crude, as well, another commodity that has been volatile of late to say the least nymex crude trading up about 92 crepts at $86.94. >> interesting talking about commodities particularly when we're about to talk about the next big economy, australia. and i mentioned their growth numbers. we'll take a closer look now. the gdp figures look pretty good and certainly people are applauding it, but joining us is michael buchanan with goldman sachs here in hong kong. let's talk about these numbers.
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you saw this huge bounce back. is it too soon to be applauding what's happening down under? >> yes, he can it rk, i think . it's really just a bounce back from what happened in the first quarter which was very much ret related. and if you take a step back you can 1.4% is actually a pretty lousy up in and well below our estimate of the normal rate of growth. and then you look at where did the growth come from. and that's also at bit worrying. more than two-thirds of it came from infantries. as you build up, you're not selling them so that pore tends weakness down the road. and then the other part of the growth story that's a little bit surprising is on the consumer side.
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so sure the number was better than we expected, but i think the details actually give cause for some questions. >> let's talk about what you hear in the retail space because that can be so telling. >> i think we've seen quite a bit of pain on the retail side. i think in australia what we've seen is a very appropriate and preemptive response from the reserve bank of australia, one of the first to hike and it's brought up a lot of credibility which could be extremely useful if we get more weakness on the exterp external side. so we are expect a cut in rates later in the year, but i think the weakness we've seen partly reflects the preemptive move to hike rates earlier in the cycle. >> no economy survives on its
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own at all in the world. and in australia, people are keeping a very close eye what's happening particularly in china and you have the huge commodities exchange that goes on between these huge economies and this region still very much looks to china. keeping your eye on china, looking ahead for australia, is there anything interesting that you think we need to be wary of? >> what china has been doing is tightening policy to core inflation, growth was above trend. financial conditions, liquidity, was too loose. a lot of that was happening off the balance sheets of the banks so took a while for policymakers to see that and respond. and they have been responding. so growth in china has cooled. if we get more weakness in the external environment, china has some room to offset that, but nowhere near as much room as it had back in early 2009 when we were faced with the earlier global financial crisis.
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and so i think from australia's perspective, it's great to be tied into an economy like china that continues to grow, but there is perhaps a little less policy room in china now to offset any sort of global weakness should sha ththat a ri later in the year. >> all right a, michael, thank u very much. interesting stuff there. >> indeed. well, investors will be watching germany's highest court today. the constitutional court is expected to rule on whether angela merkel was correct in bailing out greece and other euro zone members. she's facing a major parliamentary vote. as a result, today's landmark decision should have some pretty substantial implications when it comes to future aid. no longer the high flying internet pioneer it once was, the board room ax has swung
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welcome back to "world business today." yahoo! is looking for a new chief executive. they fired carol bartz after slumping revenue and falling stock price. bartz was brought on three years ago go help turn around the struggling company. the current chief financial officer will serve as interim ceo. there is no question how investors felt about bartz's dismissal. the announcement came after the closing bell, but the shares jumped, at one point climbing by as much as 7%.
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if you look at i cany yahoo! st investors were losing faith months ago. you'll remember that back in may, yahoo! was at odds with with the chinese internet giant. investors were questioning why yahoo! appeared out of the loop on this one and they questioned whether the question could keep its relations ship with alley back about a and its presence in what is the world's largest internet market. and it's pretty much gone downhill since then. its stock has returned to nearly the same pace that it was in january you 2009 when she started in that job. >> let's talk about another american company that has been the focus of investors' attention. two more bank of america employees will soon be out of a job and they're in top
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positions. the bank is either letting go of it president of consumer banking, joe price, and also the president of wealth and vinnestment management. it recently announced plans to layoff some 6,000 workers. bank of america stock is now down a whopping 47.6% and that's after warren buffett announced just a week or so ago that he was going to be investing $5 billion in the bank. back to asia and the technology new site cnet says south korean antitrust regulators raided google's offices. complaints were filed against google. . the company said it exploited its position by having its search function pre-loaded on smart phones and that would block competition. well, google denied it was
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trying to stifle its competitors. this is "world business today." ahead on the show, it's time to follow up with two great bosses. one and you beer brewer who wants to take its employees for a ride and the other a casino than who wants to grow his gambling galaxy. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65,
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this is "world business today." >> three bosses, there's different types of companies, and all kinds of challenges. each and every week, we show you what life is really like at the top in our series the boss. we met francis lloyd who only just a month ago opened up a mucous see know. already he's looking for new ways to be bigger and better than the competition. we've also met steve hinde, the brooklyn brewery boss. after years of planning, his investments are finally starting to at that time company to the next level. and of course we haven't forgotten sarah shroud at my
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previously on the boss. pride and satisfaction for steve hindy as brooklyn brewer's expansion begins to take shape. >> this is a total thrill. a total turn on to be expanding your brewery. >> and francis lui says there's room for improvement. >> even though we are achieving great results, i still think that we can be better. much better. >> as his team continues to iron out those details, making the product the best it can be, francis lui has thrown himself in to his next big project. making his casino resort even more attractive to his customers. today he's taking a hard hat tour of construction for galaxy
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square, an area within the galaxy casino resort, which shall comprise nine 3d sin in a a made screens and a karaoke complex. >> the purple, red and green, they are very distinct. that is our entertainment center. going to be one of the biggest in hong kong and it will seat about 1,000 people inside. >> the gallon lax city square, due to open in the fall, is all part of francis' nongaming strategy. he he knows that his casino will continue to draw loyal gaming fans. fr but he needs to broaden appeal. >> when we open up galaxy, we know we are short of entertainment for the kids. and that is what is important
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for us. >> as he tours the space that will become the galaxy square, 16,000 square meters to be exact, francis is across every aspect of the construction. >> if i had my choice, you use the drywall so that it's thenner and this here would be wider. this is fine. >> a boss with an eye for detail who leaves nothing to chance. >> i say i'm here to give recommendation and suggestion. at the end of the day, it's the manager who will take charge and make all those tough decisions for us. in new york, steve hindy is enjoying a light hearted moment with three of his employees. brian, ali and sherman have just
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come back from trips to italy and sweden. vacationses paid for completely by their boss. steve's way of rewarding his employees may seem extravagant to some, but for steve, this is more than just enzefr send difference. it's a case of promises kept. a bold pledge he made to workers six years ago. >> at that time, we were about about 50,000 barrels or something like that, of production. we said when we get to 100,000 barrel, we'll take everybody on a there into europe. >> so to europe they went. 20 were sent to italy and 28 to sweden. at a cost to the company of away $100,000. >> i told a lot of people about this since we did it, and other people in other businesses are like, woah, that's amazing. i can't imagine doing that. and actually, you probably
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wouldn't do that if you were a public company. i mean how many times do you read about a public company. but a private company, you can do it. >> for steve, this is about recognizing and rewarding his staff. >> it's really a personal choice. but from the beginning of the company, it seemed to me to be real important to have people committed to our objectives and our commission and our vision. in the beginning we didn't pay too well. we didn't pay ourselves too well and we didn't pay our people too well. >> we got in a boat and i was sitting in the back of the boat -- >> for some of brooklyn brewery's employees, this was an opportunity to travel outside the united states for the first time. an opportunity to get to know the key markets they serve. and get to know each other. >> i think it was great to go on the trip together and just spend team together as a company. definitely brought us closer. >> but this holiday may not be
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their last. steve himdy could soon throw down the gauntlet with hire targets and again offer a new set of rewards for his team. >> maybe the goal is going to be at 300,000 barrels now for the next trip. but i think it had a great impact on morale and on enthusiasm for the company and belief in the company. and a belief that it's pot just t the owners benefitting from the growth. it's everybody. >> next week on the boss -- >> the industry is not for everyone. >> francis lui proves you can combine public service with profitability. that's thnext week on the boss. to catch up on episodes of the boss and all the news
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affecting global business, just check out p and you can also blogs from the business team and leave us your comments, as well. "world business today" continues in just a moment.
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welcome back to "world business today." let's take a look at the european markets.
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we're seeing a bit of a return of confidence. all opening quite a bit higher andle holding on to those gains if not pushing even higher. the dax up about $2.6. even ftse 100 up in excess of 2%. and checking on the currency markets, this is how the picture stands when it comes to the three main currencies trading against the u.s. dollar. british pound straighting tradi. so weakening just a little. the euro at 1.4106 and yen 77.14. let's update you on story we were mentioning. the konss tugs al court has ruled that angela merkel was correct in bailing out greece and other euro zone members. but the verdict it seems could be something of a double edged
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sword here because although the court ruled in ms. merkel's favor, it also said that parliament must now get more of a say in future euro zone bailouts. >> it's going to make for interesting reading. a sign of the times for europe. the trading day just winding down here in asia and major markets have closed higher for the first time this week. you can see for yourselves that it's looking pretty healthy on the board. there seemed to be a bit of bargain hunting going on after the two days of losses. people have been keeping a close eye on the japanese yen, as well. technology and energy stocks in particular were among the biggest earnings. hyundai wants to drum things up in the european markets and traders seemed to like that. another look at that australian economy that's been bouncing back from this year's natural disasters is recording its strongest growth in four years.
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but a new survey finds increasing job stress and ensecurity. >> reporter: treasure irs love the big pictures especially when it has australia leading the world. >> these figures today should be a reality check for the doom sayers who continue to talk our economy down. >> reporter: the economy has rebounded strongly in the june quarter from the queens land natural disasters to the best growth spurt in four years of 1.2%. >> no more excuses about not delivering a surplus. >> reporter: the reserve bank governor says there's no way of knowing exactly what international markets will do in coming months. >> but with some good sense and careful judgment, we ought to be able to navigate whatever lies ahead. >> reporter: there was a no rose colored glasses view from a lens maker in brisban as the opposition leader mingled with
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admiring workers, the after the ct uflt released the results of a survey of 42,000 employees. it found 72% were contacted out of work hours. 61% worked more hours than they're paid. 47% received no compensation for it. and 58% had unpaid expenses. in the june quarter, there was a rebound in proceed duct it different of 1%. the treasurer says this was mainly due to workers getting back on the job after the flood. but the union says it bolsters their case against return to work choices. back in the united states, things may be looking up a little on wall street. the dow jones is pointing up about 0.4%. katrina fills us in now on the
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day that was on wall street. >> investors in the u.s. returned from the long labor day weekend to a sea of red arrows. the main averages tumbled across the board tuesday as wall street continued to worry about europe's debt crisis and what it means for the global recovery. though a letter written by ben bernanke saying that u.s. banks exposure to greece, ireland and portugal is manageable did help stocks climb off their lowses. the dow tumbled 100 points. it had been down as much as 308 points. the nasdaq lost a quarter of 1% and the s&p 500 fell $0.75. bank of america, jcpmorgan chas falling between 2% to 4% even apupbeat reading on the services sector which accounts for about 80% of u.s. jobs couldn't boost sentiment. the sector posted an unexpected expansion in august. it's one of the few economic reports in the last few weeks
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that's been positive. looking ahead to wednesday, wall street awaits the federal reserve's beige book report which surveys regional economic conditions. that's coming in the afternoon. investors will be looking for any indication that a consistent recov recoverry is under way. >> in new york there's a big preoccupation with the labor markets and on thursday barack obama will unveil a $300 billion plan to create new jobs in the u.s. economy. jessica yellin has a look at who might benefit most from the president's latest plan. >> reporter: those his plan is still under wraps, president obama's already pressing congress to pass it. >> the time for washington games is over. the time for action is now. >> reporter: policymakers expect one of his themes will be education, which should sound familiar from his state of the union. >> if we want innovation to produce jobs in america, and yot
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oversea, then he we also have to win the race to educate our kids. >> reporter: teachers have not paired well in the recession. in august, the unemployment rate was 4.about 9% in educators. last month, it skyrocketed to 9.#%. policymakers believe the president's jobs plan will propose new funding to put laid off educators back to work. democrats say it's a win for teachers and for students. but this republican economist disagrees. >> the idea that stimulus monies will hire a bunch of tires and fix the economy is a crazy one. what we need to do instead is coming up with a way to help the private economy get going again and throwing money at schools isn't going to do that. >> reporter: democratic policymakers also expect the plan to propose funding to renovate dilapidated schools which democrats see as a quick way to get workers on the job while cleaning up campuses. >> if it makes our schools safe and it puts people to work
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relatively quickly, so not only are we putting construction workers back to work, we're increasing factory orders for construction materials. and those are made in america. >> reporter: but no buy in here. >> there is no way that an idea like this will have any impact on long term growth. >> reporter: policymakers tell me another group that could benefit from the president's jobs plan are first responders. democrats see a substantive advantage as well as a political one to including both teachers and first responders in the package. it could be harder for members of congress to vote against if you saiding for teachers and first responders, but in this political environment, maybe not. jessica yellin, cnn, the white house. barack obama's potential contenders for u.s. president has a jobs plan of his own. mitt romney says his plan includes lower u.s. corporate taxes and fewer federal regulations. he says he wants the united states to be the place to find
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work. >> america should be a job machine. jobs being created all the time. people looking for employees to join their enter vices, young people coming out of college able to get jobs right away. people coming out of vocational schools able to get jobs right away. even those coming out of high school knowing there are opportunities for them. we should have a job creating machine in america. >> that's the former massachusetts governor mitt romney. he'll be sharing the stage with other republican party presidential candidates at a debate in california later today. you're watching "world business today." and when we come back, the family members of the 9/11 victims turn their sorrow into action. now they're touching the lives of thousands of people around the world. stay with us. ♪ [ male announcer ] sitting. waiting. hoping. that's a recipe for failed investing. open an e-trade account and open doors, seize opportunities, take action
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ten years ago next sunday, the world changed in a matter of minutes. two planes hijacked by trusts struck the world trade center in new york, a third hit the pentagon and a fourth crashed in a field in the state of pennsylvania. nearly 3,000 people lost their lives on september 11th. all this week, cnn is bringing you special coverage ahead of the tenth anniversary. the alder man family was living what many would consider an ideal life until their son was killed in the world trade center. but now the family has reinvented itself. mother, father and daughter have left their previous careers and they've all started something new to heal themselves and the world. poppy harlow explains. >> murdered on september 11th. >> murdered. >> on his death certificate, the cause of death is homicide. >> reporter: peter alderman was
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25 when he died on that beautiful september day that turned black. >> i turned to my computer and e-mailed him. hey, are you there. he wrote back, yes, 1067th floor. i'm scared. there is a lot of smoke. >> reporter: peter's sister, jane, was the last to hear from him 37. >> i wrote back. 106th floor of what building. and he wrote back world trade windows on the world. and i said you can get out of there. and he wrote back, no, we're stuck. >> my greatest hope is he didn't know he was about to die. >> reporter: steve was a radiation oncologist and liz a stay at home mother of three. >> tell bhee petme about peter. >> peter was laughter and light. >> reporter: but then their world fell apart. >> when your worst nightmare becomes reality, you either kill yourself and you can do it literally or you can crawl into bed and never get out. or you can continue to put one foot in front of the other. >> shortly after peter died, i
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found i wasn't able to concentrate very much. >> reporter: the aldermans were scared by the emotional impact of losing their son. they believe trauma like they experienced is often ignored in third world countries. so they set sought to do something about it. ♪ >> the problem with mass violence is that it massively traumatizes individuals and trauma sizes massively. that is affects a whole society. >> reporter: steve quit his job and along with liz started the peter c. alderman foundation with $1.4 million from the 9/11 victims compensation funds. peter's sister, jane, quit her job in media and got her mba to become the foundation's cfo. >> there is no other group that does psychiatric treatment partnering with government in countries that really need this kind of care. >> reporter: since 2005, they've raised more than $4 million,
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opened six clinics, trained 1,000 doctors and treated more than 100,000 people, most victims of terrorism and mass violence. you're giving them their life back. >> they're taking their lives back. >> reporter: sewing the seeds that heal the sorrow is their mission and in a sense, it has done just that for this grieving family. in new york, poppy harlow, cnn money. >> such a moving and inspiring story. ten years after 9/11, though, first responders who breathed in the dust and fumes at ground zero are suffering the effects of that exposure. dr. sanjay gupta exams the consequences of that dust and what it might mean if disaster strike again. join us for terror in the dust, a cnn documentary, thursday morning at 10:00 a.m. here in hong kong. that's 10:00 p.m. eastern on wednesday for viewers in the americas. "world business today" continues.
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[oinking] [hissing] [ding] announcer: cook foods to the right temperature using a food thermometer. 3,000 americans will die from food poisoning this year. check your steps at
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gold is well off yesterday's record high. as you can see, it's falling at the moment about $30.70. and trading at a price of $1845.40. welcome back. you're watching "world business today" on cnn live from hong kong and london.
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wildfires are burning out of control in the u.s. state of texas where nearly 1,000 homes have gone up in flames. jennifer delgado is at the cnn weather center with a look at the forecast. i've not seen pictures like this in a long time. very dramatic, very scary pictures that have been coming out of texas. >> that's right. and we've been looking at this since november. and you're right, 1,000 homes since november, since the fire started burning. and right now, we still have many burning right through parts of eastern texas. you have to keep in mind over the last several day, we're talking an area just to the east of austin, texas. reportedly we've lost more than 600 homes to fires burns in bastrop county. let's give you an idea conditions. of course smoke being blown around everywhere. and the problem is we're dealing with another day with low
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relative humidity values and no rain in the forecast. we'll continue to see more scenes like this. as i take you back over for the area we've been talking about for bastrop county, reportedly the fire is about 30% contained, but keep in mind 5,000 people have been forced to track eight. and for today, we are still dealing with this ridge of high pressure just to the west of the region. the thing is, this is pulling in cool air and that's bringing relief to the hot temperature, but it's also very dry air. but the plus side is the winds, they have been decreasing over the last several days and it looks like it will stay that way. but we really do immediate to get some significant rain in the forecast. unfortunately, it is not going to happen anytime soon. an area that has been picking up heavy rainfall over the last 24 hours, we talked about this yesterday, through parts of the uk as well as northwest europe, still coming down through areas including scotland as well as into areas including parts of germany as well as even spreading over into parts of poland. and this system will be the fuel
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for stronger storms as we go through the afternoon, anywhere along that frontal system, we'll see the potential for some storms, very gusty winds as well as heavy rainfall. and once again, we could see some problems with some travel delays. and the temperatures will be a little bit cooler thanks to it that cooler air working in from the northwest. notice temperature today 18 in paris, that's roughly 3w7 7. 25 in vvienna. and areas including the south down through rome as well as over to madrid, we're talking temperatures in the 30s and that's in the ninth nin the ni9. >> thank you, jen delgado. good to see you. let's take another look at how the european stock markets are fairing at the molt p about started out on an upbeat note. going some way to recover the kind of heavy losses that we've
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seen of late, but as you can see, still plowing ahead at the moment. even the dax which is up nearly 3% at the moment after germany ruled that angela merkel was right to rule in favor of bailing out of the euro zone nation since as the degrees island this informatiportugal. >> by the close, asian markets recovering from two days of losses before some sense that perhaps there is margin hunting going on here. . people still saying that there's a lot of value out in this region. but for now, given the volatility, we have seen a bit of a peck up for the asian pacific markets. >> let's move our attention towards italy. fiat has launched a new 500 in the united states. the question is, will it be a
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hit with american drivers. ali velshi took it out for a spin. >> we've seen what this car can do if you want to drive it that way, but most people are probably not going to drive it that way. so this is where he hands the car over to me. let's see what it hams leak when we're driving around like regular folk. i'd say it qualifies as easy to drive. what is your sense of this car? >> it's an okay car. it looks cute. it's fun to drive. would i want to live with it on a day to day basis, no. >> is this going to be a big part of the comeback strategy for chrysler? >> i think it will bring a young demographic in. i think it will bring somebody that wasn't look at a chrysler to actually come into a chrysler showroom oig. so from that point of view, it will be a little bit of a halo, it will bring a totally different couplener to chrysler.
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>> bouncing a little bit on will road. this doesn't score as well as something else in this price category. do you think it's likely to improve or this is the car they're offering? >> no, a lot of the factors that make it score poorly is the rear seat room, the ride that isn't particularly good and also the overall fuel economy is not brilliant for its size. >> what keechind of mileage doe get? >> it gets 34 to the gallon which is okay. >> what is your evaluation from a safety perspective? >> it comes with all the safety features. side and front air bag, electronic stability control, it does well in crash tests that we have seen so far. this is a relatively small car. a bigger heavier car would impact more of its energy into a smaller car. so i would have certain concerns about the overall safety. >> for the price that you pay, what are you competing against? >> the 500 is pretty highly
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priced. $18,000. you can buy an awful lot more. you can look at the other budget car which is are in this area such as the fit, mini, fee he is a. >> your overall view? >> it's a cute little car. it might be difficult to live with, but feel like a pair of high heels. you look good in them, they're cute, but it's a bit uncomfortable and you really wouldn't want to live in those on a day to day basis. >> dave, thanks very much. checking out the car that's like a pair of high heels. that's it for this edition of "world business today." >> you're watching cnn, the world's news leader.
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