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tv   World Business Today  CNN  September 8, 2011 4:00am-5:00am EDT

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here are the headlines this hour. moammar gadhafi is said to be surrounded. the national transitional council says the former leader has no way of leaving libya but it won't say where gadhafi is. rebel forces have started advancing on bani walid, a gadhafi stronghold. some officials think two of gadhafi's sons have been seen there. the rebels have given gadhafi loyalists until saturday to surrender. protests continue across syria, despite activists reports that at least 27 people were killed during demonstrations wednesday. 20 of those deaths were in homes when a rights group says trucks filled with soldiers arrived the same day. officials in russia are trying to figure out what caused a deadly plane crash. many of the victims played on a major russian hockey team. in just a few hours, we'll expect a verdict in the trial of disgraced fashion designer john gallia
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galliano. he's accused of hurling anti-semitic comments and other insults in a paris cafe in february. the court could sentence him up to six months in jail and a $32,000 fine. those are the headlines from cnn, the world's news leader. i'm zain vergee. "world business today" starts now. good morning from cnn london, i'm nina dos santos. >> and a very good afternoon from tokyo, i'm andrew stevens. six months after a tsunami and earthquake crashed into japan, we look at how life has changed for the people and for business in this country. you're watching "world business today." let's first take a look at the latest stock market action. we're about one-hour into the start of trading here in europe. the stock market is broadly speaking drifting lower after
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pretty substantial gains yesterday. as you can see, it's a bit of a mixed picture. ftse 100 virtually unchanged. dax down, that was the biggest gainer yesterday, putting on as much as 3.5% yesterday. and cac 40 and zurich smi managing to hold on to gains. we're seeing weakness for the euro. the question today will the ecb pause on rates going forward and give any indications about perhaps even cutting interest rates or keeping them on hold at the low levels they are at the moment for some time to come. that's one of the reasons we're seeing weakness on the euro trade, 1.4061 and the pound, 1.5934 and the british yen, 77.37. it's been another mixed day for stock markets in asia. investors are hanging back ahead of the european central bank
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rate decision coming later on today. also in anticipation of the u.s. president barack obama announcing his new set of stimulus measures for the world's largest economy. asian markets struggled for any kind of direction today, as you can see, bit of a mixed picture as well when they closed. japan's nikkei was the best perfo performer. that market gain be 0.3% for the day. elsewhere, shanghai's composite and the hong kong hang seng both lost about 0.7%. when it comes to australia's s&p asx index, that was up about 0.1%. australia actually lost 9,700 jobs last month. that's the second month in a row that employers have been cutting staff across the country. and it sent the unemployment rate up from 5.1% to 5.3%.
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must stress, though, with gdp growing at 1.2% per quarter, it's not as bad as things across the euro zone. andrew? wall street had a good day actually, all things considered. shook off the failure, awful start to a day to record -- overnight i should say to record decent gains. let's take a quick look at the numbers now. the wednesday rally breaking up the glue and the dow industrials up 276 points, about 2.5%. the s&p, broader index up by 2.9%. even the nasdaq was on a tear as well, up by around 3%, nina. >> let's take a look at the u.s. futures market, andrew. u.s. markets look set for mostly open trading when the week begins later on thursday. this is the premarket trading at the moment. we're seeing the s&p 500, the
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broader index. the nasdaq down by 0.5% already. andrew? >> on sunday it will be six months since that enormous tsunami caused by an earthquake smashed into northeastern japan. six months in which industry has been hit hard, the economy has been hit and also the people of japan have been hit as well. i'm here in tokyo, for the next two days. we're beginning to be looking at how business has respond. what are the problems it's still facing and we'll look at how people have been coping with what was really a crisis which was exacerbated by what happened after that, the nuclear meltdown of fukushima daiichi. i want to start with going back to that day six months ago on sunday, march 11th. it's still difficult to
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comprehend, the full horror of that tsunami, the pictures of the wall ever water. at some times it was 18 meters, 60 feet high. the area it hit was not densely populated, nor was it an industrial center. and this is important. if you look at the damage, it gives you an idea why this is important. the government says the impact zone where the tsunami came ashore on the pacific coast contributes only about 2.5% of the total japanese economy. still, though, that was enough, even that small amount to the impact on that was enough to send the world's third biggest economy, remember, into a deeper recession. take a look at this graph. now look at these four bars. the first two before the disaster, the second two after. the biggest fall is in the third bar, january to march.
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japan's economy down by 9% from the previous quarter and that slide continued into the next quarter, down by another 0.3%. the government says now and this is some good news, that the economy probably has come out of recession and that full-year growth for 2011-2012 will be around 0.5%. with that in context, in january before the tsunami the government was looking at growth around 1.5%. it slowed from 1.5 estimated to just 0.5%. we can't, nina, blame all the slowdown just on what happened on march 11th. obviously there's been a massive change in the global economy. the yen continues to be a major problem for the japanese exporters and i guess if there's any good news coming out of this, the recession that we did see was not as deep as many had predicted in the days and weeks after that tsunami. and it is rebounding more quickly than expected, the
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japanese economy. set this against the global picture, it still will be a tough time for japan. >> we were covering the march 11th earthquake and tsunami quite extensively on "world business today" when it happened six months ago. are companies back to prequake levels of operation? >> not yet. but mostly, nina. this is key. six months on we're looking at around about 80% of the companies that were directly impact ready now up and running. they're at prequake output levels once again. but there are still some getting back on their feet. the government actually says by the end of this year, of the 20% remaining, the vast majority of those should also be back. there has been a rebound in rebuilding. remember, too, that actual reconstruction money was held up a bit. it was difficult to get things moving there in the first few months. the interesting one to focus on,
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we'll be looking at this after the break, nina, is what's been happening in electricity production. the nuclear crisis meant we had a big slowdown in energy production in japan. that's kicked on to the corporate japan. after the break, excuse me, we're going to take a look and see what the impact was. improve the health of your skin with aveeno daily moisturizing lotion. the natural oatmeal formula goes beyond 24-hour moisture. it's clinically proven to improve your skin's health in one day, with significant improvement in 2 weeks. for healthy, beautiful skin that lasts. i found a moisturizer for life. [ female announcer ] aveeno daily moisturizing lotion. and for healthy, beautiful hair, try nourish plus haircare. only from aveeno.
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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 foodsafety.gov. gold prices are rebounding about 1.25% today. it's a modest gain to be sure but it is still much better than the 3% drop we saw in yesterday's session for this particular commodity. let's have a look at how gold trading at the moment, currently trading at 1,846.75 an ounce at the moment. it's up 23.53 at the moment. this fell in excess of $30 in yesterday's session. let's have a quick look at the
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price of oil. more stormy weather threatens the u.s. production and also supply in the gulf of mexico. right now, nymex crude, the crude oil traded on the new york mercantile exchange is currently trading at $8.66 on the barrel. it's down by 65 cents at the moment. welcome back. live from cnn london and tokyo, this is "world business today." andrew? >> again, nenia, let's get back to our coverage now of the six months on from the disaster on march 11th on the northeastern coast of japan, the day a tsunami rolled across much parts of the northeastern area, crushing towns, putting them under water and leaving a trail of death and destruction in its path. now, there have been many, many sacrifices made since that time, not only just in the affected area but pretty much around the country. and business has been one of them. they've had to get used to not enough power.
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the nuclear crisis at the daiichi fukushima power plant mirrens there hasn't been enough energy here. some companies have had to tighten their belts as far as energy consumption is concerned. at this nissan car making plant, the weekend now means work. employees take thursday and friday off instead of saturday and sunday so they can use less energy during the peak demand time on hot summer weekdays. nissan chief operating officer keeps a close watch on progress. the government has asked companies like nissen to cut energy consumption by 15%. did you achieve that target? >> yes. we have.
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we have more savings than the 15%. >> how difficult was it to hit those targets? >> it was not easy. some countermeasures means employees, and corporations to sacrifice. >> this is the new reality in japan. six months after the nuclear crisis began, about two-thirds of japan's 54 nuclear reactors are offline because of safety concerns or maintenance. overall, electricity production in japan has fallen by about 7%, compared with last summer, but here in tokyo it's down a whopping 20%. and in train stations like this one, you can now get real-time readings on how much electricity is being consumed. so how has corporate japan coped? pretty much the same way nissan did. changing shifts, using their own generators, keeping air conditioning at a very warm 28 degrees, about 82 degrees
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fahrenheit. and lots of little things. as simple as turning off the lights and cutting back on overtime. so it is 6:30 on the dot. as you can see, all the lights at nissan's global hq have been switched off for the night. and it's worked. helped by a cool summer, the government last week lifted the power ban early. but there's no celebrating at tepco which operates the stricken fukushima plant. >> translator: i would like to ask our consumers not to waste energy and use energy in a smart way. for the coming winter and next summer. >> reporter: it's that fear of unreliable energy that could end up having the greatest impact on corporate japan. a worst-case scenario says one japanese think tank, 200,000 jobs lost next year as companies move production outside japan. new prime minister noda is now trying to convince a skeptical
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public that nuclear is needed until new sources of energy are developed. but the still fresh images of the smoking ruins at fukushima remain a powerful obstacle to overcome. and what about the workers? >> i think this is not sustainable. for example, the saturday, sundays that fathers and mothers are going to the office. the companies have no time with children. it's a pity. we cannot continue this. >> reporter: but right now there's no alternative. the coo of nissan laying it on the line. at this stage, it looks like the power supply, at least on the nuclear side, could get worse. they're saying by may of next year, all nuclear reactors will be offline because there are still more reactors working at the moment that need to go into maintenance and there's not a
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political will or public appetite to restart any of the reactor which is are coming out of maintenance. this certainly remains a very key problem. obviously if they're switching to alternative energy, particularly sustainable green resources, that's a multiyear project for them. it looks at this stage it's going to be very, very tough for a long time. >> it does indeed. andrew, many thanks for your reporting there from tokyo. just hours away from the u.s. president barack obama's big speech on jobs. big question is, what is he going to say later on? and will it help to get some of the millions of unemployed americans back to work? that's still to come only here on cnn. tener with b vitamins, the first and only one to help support a healthy metabolism. three smart new ways to sweeten. same great taste. new splenda® essentials™.
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welcome back. live from london and tokyo. you're watching "world business today." with so many americans looking for work, the u.s. president barack obama will reveal his jobs proposal later on tonight. during a labor day rally on monday he hinted what was in the package said to be totaling around $300 billion. cnn sources say the plan could actually top $400 billion. let's take a look at what the measure could include. it could include some things including a $120 billion to extend the current payroll tax
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cut. it could also include 50 billion today's extend unemployment benefits that are set to expire soon. in addition, the plan could propose 100 billion for jobs, repairing roads, bridges and schools. mr. obama's plan comes at the current jobless rate stance. the government report showed on friday that no job growth occurred during the month of august which stunned the u.s. trading markets as we'll remember last week. in the meantime, republicans who want president obama's job are actually fighting it out amongst themselves over who has the best record when it comes to creating jobs. eight of the candidates sparred in a debate in california on wednesday night. the two front-runners, former massachusetts governor mitt romney and texas governor rick perry went toe-to-toe on the subject of jobs. >> texas has a zero income tax, a right to work state, a
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republican legislature, a republican supreme court. texas has a lot of oil and gas in the ground. those are wonderful things but government perry doesn't believe he invented those things. >> michael dukakis created jobs three times faster than you did, mitt. >> be sure to stay with cnn for full coverage of president obama's big job speech, his address to members of congress will be carried live from the u.s. capital building in washington at 7:00 tonight u.s. eastern time. andrew? >> the u.s. airplanemaker boeing is offering ever more optimistic scenarios for demand for airplanes in china over the next 20 years. according to a report in the "wall street journal," boeing now says that it expects chie
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niz c -- chinese carriers to spend $600 billion to buy new planes over 20 years. that's an annual growth of 7% over the next 20 years. nina? >> let's take with china. topping the list of the richest people is the tycoon liang wengen who is worth about $11 billion for his ownership in sany. zong qinghou is worth $10.7 billion. he's owner of the biggest beverage company, wahaha.
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robin li has a net worth of $8.8 billion. at 33 years old, he's also the youngest person in the top ten. yan bin is worth $7.8 billion. ruoy chai is the single distributor of red bull in china. and xu jiayin is worth $7.2 billion. his everglades group sells apartments to upper and middle class chinese. that's where he's made his fortune to reach that list. the number of billionaires is china has more than doubled over the course of the past two years. the company in charge of china's rich list says that 271 billionaires live in the country currently. that's up from 189 in the year 2010, 130 the year before that. china has the second most billionaires of anywhere else in the world.
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only the united states has more billionaires, with approximately 400. andrew? >> but for how long one wonders, ni nina. we'll take a short break. our special coverage of the japanese earthquake and tsunami continues. and the yen, and the controversial views an what the government should do to take the strength away from the yen. does he think they'll achieve it? he doesn't think so and he'll tell us why. but he also tells us what he thinks japan needs to do. stay with us. [ woman ] jogging stroller. you've been stuck in the garage
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from cnn london, 9:30 in the morning, i'm nina dos santos. >> and it's 5:30 in the afternoon here in tokyo. i'm andrew stevens. you're watching "world business today." >> now, let's see how the european stock markets are getting off to the day. we're about 90 minutes into the trading session. here are where things stand at the moment. a bit of a mixed picture 30 minutes ago last time we looked. things have sharply rebounded at the moment. these are markets that put on gains of in excess of 2.5% to 3.a%. the dax is in the red, about 20 minutes ago. it's currently putting on a gain of 0.5%. on the cards later on today is the ecb's rate decision. the big question is, when will it signal it's time to start combatting inflation by raising the interest rates. that's the question that remains on these markets today. andrew? >> that's the big question, too.
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isn't it also? we have the obama jobs announcement coming up as well. which is obviously going to be closely watched by the market. green arrows in europe as we saw, also green arrows in asia this day. much more of a mixed picture. the ecb decision is also weighing on investors' minds here. the best performer in the region was the nikkei in japan. up by 0.3%. compared to the recent gains that's quite modest. exporters among the winners in the debt crisis is the ecb. it may make a difference there. elsewhere, the shanghai composite and the hang seng in hong kang down by 0.6%. australia, by about 0.1%. the australian economy shed 9,700 jobs in august, sending the unemployment rate to 5.3%. nina?
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>> still nearly half of 9.1% that the united states has, isn't it, andrew? that of course comes a few hours ahead of obama's speech later today. that crucial speech on jobs. now let's move to the u.s. markets. it was an encouraging day on wall street with arrows pointing upwards for the first time in three days. alison kosik tells us all about it from the new york stock exchange. >> stocks snapped their three-day losing streak with a triple-digit rally on the dow. the major averages took flight, thanks to easing worries about european debt and anticipation ahead of president obama's job speech on thursday. at the close, the dow soared 275 points ending at 11,414. the nasdaq added more than 3%, yahoo! shares gained 5.5% there, following the firing of ceo carol bartz. the s&p 500 also gained about 3%. president obama's proposal is expected to be a $300 billion jobs package that includes an extension of the payroll tax cut
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along with new infrastructure spending and other initiatives. job creation or the lack of it has been one of the biggest concerns on wall street. some traders wonder why the plan didn't come sooner. but with the possibility of a second recession on the rise, many are thankful it's happening at all. investors will be looking to hear new and concrete measures when the president speaks thursday evening. the unveiling comes less than one week after the government's monthly jobs report which showed u.s. employers added zero jobs in august. in addition to the president's speech, investors also expect figures on weekly jobless claims and consumer credit along with the nation's trade balance. that's a wrap of the day on wall street. i'm allison koss nick new york. >> as you probably noticed for most of the week, andrew stevens has spent much of his time reporting and anchoring from japan six months after that devastating earthquake and tsunami. one of the things he's been telling us about is the strength of japanese yen and how it's been hurt something of the exporters for quite a bit of time now. let's have a look at the yen,
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trading at 77.36 versus the u.s. dollar. we did have some economic figures out early on today from japan. machinery orders in that country falling more than 8% from june to july. that's thanks in part to the strength of this particular currency. as you can see, it's trading at over 77 yen to the dollar again today. elsewhere, the dollar is down a fraction against the pound and this is where it's trading against the euro, 1.4072 at the moment and $1 buys you 1.5930 if you're planning on cashing it in for the british currency here in pounds. andrew? certainly here in tokyo, it is all about the yen, nina. we've been talking about the damage caused by the tsunami and earthquake and by the ongoing nuclear crisis, lack of energy. the yen is probably the biggest worry for japanese exporters, certainly. it's been getting stronger and stronger.
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big companies, the big household names, the sonys, toyotas, nissans and so on, are wondering where the yen is beginning to stop growing. or is it going to stop strengthening. earlier today, i spoke to the country's top former official, he was known as mr. yen, a very outspoken character about the direction of currencies and obviously keeping a close eye on the yen still, even though he's left the government. he told me that exporters could be waiting for quite some time if they're expecting the yen to come down. >> it can only be done persistent with the consent of the other party. i don't think -- on the part of japan. maybe once or twice he would condone that. but he would not like the japanese government to persistently and continuously intervene in the market to change the rate. >> why not?
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>> well, implicitly, u.s. is following weak dollar policy. if they are following the strong dollar policy like rubin in the 1990s, that's a different story. >> you think the strong yen is here to stay? >> yes, i think so. in the next six months to a year, i would not -- i don't think the rate would go back to the 80s. it will stay in the 70s. i would not be even surprised to me the rate going down to low 70s or even breaking 70. >> exports are seen as an important part of japan's economy. so how does japan cope? how does the economy cope with such a strong yen? >> there is positive aspect of strong yen as well. you know, it would be very useful to globalize the japanese companies, which is absolutely necessary at this moment. would be quite useful for the japanese company for --
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acquisitions to build the factories in china and elsewhere. it is a plus. so i think we should change our mentality to take advantage of the strong yen rather than to complain about the strong yen. >> but there are many truly globalized companies, successful companies, sony, toyota, but they still complain about the level of the yen. >> i think they haven't really shifted their mindset of ten years or 20 years ago. you know? if you are really globalized company, it doesn't really affect you. >> what you're saying is that corporates should go offshore? doesn't that mean a hollowing out of the manufacturing industry in japan? >> that's true but the japanese population is now declining. japanese market is going to shrink anyway. 10 if you see the japanese companies you have to go out in order to maintain the highlight of growth.
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toyota has to do that. panasonic has to do that and stronger yen would help you, you know, to go to that direction. >> mr. noda is the sixth prime minister in five years. do you have strong hopes that he will last a little longer than his predecessors or will the revolving door continue? >> he really bes have like ldp, a politician. that's fine for the time being but what japan really needs is a major structure change, which could be done by a person who has some logical ideas. >> is he the man to do that? >> if i mention one name, that shall be the one to do that. as an interim prime minister, i'm not that unhappy with mr. noda. he should not be there for four years or five years. >> i think reading between the lines there, nina, he's
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pessimistic on the length of mr. noda's tenure as the japanese prime minister. certainly it wouldn't be surprising to most people if that was a short turnaround given the politics in the japanese policy at the moment. >> let's go back to what he was saying on the yen and exporters and companies struggling to recover after that devastating earthquake. is there any indication that the japanese may follow a similar line of the swiss that decided to defend the franc by big up an unlimited amount of euros. >> i asked him that question. he said they are completely different cases, really. if you look at switzerland as a global economy, it's less than 1% of global gdp. japan is the world's third biggest economy. it just wouldn't work. and as he says, there is this clear trend here. you've got to learn to work with what you've got and not hope for
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what -- for something you're probably not going to get for some time. >> okay. andrew, stay with us. we're going into a quick break. this is "world business today" and speaking of multimillion dollar currency trades, one man who used to manage them now manages a barber shop instead. we'll be telling you why when we come back. who need
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i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. ten years ago next sunday the worm changed in a matter of minutes. two planes hijacked by terrorists struck the world trade center in new york. a third hit the pentagon in washington 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.
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>> david was a currency trader in 2001 but after the attack, something changed within him. and he went from doing transactions on a million dollar scale to doing transaction which is made a difference at $18 a time. christine romans has the story. >> reporter: this is the ticket that changed david's life and career forever. >> a round trip only one way was taken. >> september 11th. >> i was on my way in to basically work on 9/11. i never made it in. >> in fact, it took him three years to return to his job as a currency trader on wall street. when did he, after a leave of absence, wall street had changed. he had, too. >> the culture wasn't what i wanted any more. i didn't like the way they treated people. >> reporter: that's when he pulled a professional 180, leaving his lucrative career and salary to open his own business, sports themed barber shops. >> you went literally from
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pressing a button and hundreds of millions of dollars moving around in trades to selling $23 haircuts? >> yeah. it's $18 with the discount. yes. this isn't about money. hopefully we'll make good money over time but this isn't ever going to make a ton of money. but that doesn't seem to be as important any more. >> reporter: what is important to david now is making a difference. >> this is me building a business. this is having employees. this is trying to have a value system that's mine that i get to enforce with my people. this is mentoring people. this is client contact. >> thank you very much. >> thank you very much. >> reporter: he may not actually pick up a pair of scissors but he's hands on in just about every other way. >> i understood this was crazy. a lot of people don't get it.
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it's a very different world. and people forget and people, my friends on wall street, they say they get it. they don't get it. not when you're making seven figures. they don't get it. >> reporter: his wall street friends may not get it but his family certainly does. what does your family think about your career change. >> they were incredibly proud of me. one son came and set up the computers for me. the other one came out one day, we just opened. he took coupons and went door to door to businesses and started handing out coupons. my daughter brought her friends. she was proud. i was beaming. >> reporter: when he began his morning commute, the ticket he purchased bought him more than just a seat on the train. why did you keep it? >> a memory. and every time -- i just got chills. every time i look at it, i think of what happened. >> reporter: it's a day he'll never forget. christine romans, cnn, somerset,
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new jersey. join us on friday when we'll hear from women who experienced the disaster firsthand. the firefighters, nurses and workers tell us their personal stories from that day. we'll examine their bravery, their health struggles and drmation to be prepared for the next terrorist attack. that's on "beyond bravery: the women of 9/11." see it friday at 10:00 a.m. in hong kong.
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welcome back, live from london and tokyo, you're watching "world business today." >> it's been six months since the earthquake and tsunami since japan. we've been looking at how it affected the country and its people. this week, a tropical storm caused even more problems for parts of japan. let's go over to jennifer delgado who joins us from the cnn international weather center. you have str sm striome strikin >> the japan meteorological agency classified it briefly as a typhoon. let me show you the damage still left behind through parts of japan. 49 people are dead, more than 50 people are actually missing and reportedly, hundreds of people
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are basically isolated because roads have been shut down. they've been wiped out from mudslides, landslides. you're looking at video there. reportedly there were thousands of people that were originally isolated. now that number reportedly down to hundreds. look at this airy here. this happened in the western part of japan. as i take you back over, it's been a tough year for japan when you combine that with the tsunami and the damage from the earthquake, of course, japan really has a lot to recover from. as i show you on the satellite imagery, things look fairly quiet. want to point this out to you. this is another tropical storm that is just to the south of japan located right now about 500 kilometers to the south of kadina. the winds sustained at 74 kph. let's track the storm. we want to watch this. western japan really needs time to recover, especially after that tough weekend. the stormystem will stay a
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tropical storm as we go through the next several days. looks like passing over kadina as we go through friday. the moisture spreads for areas, including western japan as we go through the next several days. the u.s. has been dealing with bad weather disasters. we have warnings and watches in place for parts of the northeast. let me show you why. let's go to individual you coming out of philadelphia. look at the flooding there. this is after another round of heavy rainfall. this is actually remnants from tropical storm lee. that's the storm spinning in the gulf of mexico. well, now that moisture is moving up towards the northeast and some areas still potentially could pick up about another 200 millimeters of rainfall as we go through the next 24 to 36 hours. a bad, bad setup for weather across parts of the u.s. as well as japan. certainly we're really thinking about japan right now. for all those people still recovering. back over to you. >> yes, indeed.
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many thanks for that, jennifer delgado. andrew, back to you, to tell us about how japan is still suffering six months on. >> that's right, nina. give then is such a first world,fy use the expression, economy, that is so efficient, runs so well, this disaster back on march 11th had such a deep impact. it seems to many people outside, particularly, it's taken a long time to get the actual quake zone, the zone where the tsunami hit back running. there's still 100,000 people there living in shelters in that zone, in the northeastern part of the country. some of the lucky ones actually live in temporary accommodations. but as kyung lah reports, they are getting increasingly worried about what happens to them when they have to move out of that temporary accommodation. >> reporter: six months after japan's disaster, this is what some of the tsunami victims now call home. these are temporary houses.
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and in this plot of land, this borrowed land, there are about 200 to 300 families living here. they do live rent-free, but they do have a time limit on how long they can live here. there's still about 100,000 people who are considered homeless. they lost their homes during the disaster. 12,000 of them are still living in evacuation shelters on these blankets and cardboard boxes and tents. the lucky few, about 35,000 of them, have managed to make it into temporary shelters, temporary housing. here, this is the hatah house. this they've been staying in since the end of may. it's a temporary house, they live here with their 7-year-old son. it is small but they try to make the most of the available space. they do have to pay for the utilities but they say considering the fact that the house was destroyed, that they lost everything, they will make do. the shock has started to wear off six months in and they feel the stress of trying to figure
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out exactly where life goes next. >> translator: we can't keep looking back. we have to look at the future. this house is temporary. we'll need to leave when the deadline comes. before that, we'll need to find a home to live in and we don't know whether we'll find a place to begin with. if you ask me right now if i'm satisfied or not, i'll have to say that i am not. . >> reporter: the biggest problem in this region right now is that there's no real infrastructure. there's still a lack of jobs. in order to move out, these families have to have enough money to put a down payment on a house or figure out how to live month by month paying rent. her husband does have a job but they're still living on savings. insurance for many of the victims did not cover all of the cost, if any at all, and government payouts have been exceptionally slow. what these families know they have two years here. at the end of the two years they have to figure out where they're going to go next. kyung lah, cnn, japan.
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a sobering look at the victims still facing day-to-day struggles in the quake zone. we'll be joined by kyung tomorrow, nina. she's looking at the flight by ex-pats. tokyo used to be a magnet for ex-pats. they are leaving because of safety fears about what happened six months ago. we'll also be talking to newly graduated japanese students, looking for jobs in this sort of job market where the economy is very weak and there's little hope of things strengthening in any meaningful way, certainly in the short term. we'll look at how those people, those students, those new graduates are trying to get jbs. for the moment, we have to say good-bye. i'm andrew stevens in tokyo. >> andrew and myself will be back for the second edition of "world business today" a little later on. that's at 9:00 p.m. in hong kong, 2:00 p.m. from you're watching from london and in the meantime, we'll see you there.
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