tv World Business Today CNN September 14, 2011 4:00am-5:00am EDT
>> well, i certainly won't be as heroic on as you. i appreciate it. >> brandon, we hope you make t. >> that's all for us tonight. "ac 360" starts right now. hello, i'm waugh nejuanita . the scene in kabul ended almost a full day after it began. six militants were killed after attackers shot at u.s. embassy, nato headquarters and afghan intelligence offices in kabul tuesday. the hours-long fighting that followed killed three afghan police officers and one civilian. the taliban claimed responsibility. the families of two american hikers held in iran for more than two years say they are overjoyed at reports the pair may be freed soon.
josh fattal and shane bauer hiked along an unmarked border between iraq and iran. rescuers in southern india have managed to get all the survivors out of two trains that collided southwest of chinai. more than 60 were injured when the two trains collided. authorities say one of the trains smashed into the back of the other. the cause of the accident is under investigation. the latest u.s. census shows that more than 46 million americans were living below the poverty line last year. the nation's poverty rate has risen to 15%, the highest level in 18 years. more than one in five children in america are now living in poverty. those are the top stories from cnn, the world's news leader. i'm juanita rajpal. "world business today" starts right now.
hello, welcome to "world business today." i'm at cnn london. >> and i'm andrew stevens. the world economic forum in northeastern china. the stories this wednesday, september the 14th. china tells europe to fix its finances and stop derailing the global economic recovery. euro crisis conference call. german, greek and french leaders dial in for crucial debt talks. and stock markets in europe are sinking again after moody's downgrades two top french banks. well, the chinese premier, wen jiabao is pulling no punches after what he sees are real problems in the euro zone and also ongoing problems in the u.s. mr. wen used the opening address at the world economic forum here in dallan to sharply criticize
what he worries about in the global economy. let me read you a couple sentences. governments should fulfill their responsibilities and put their own house in order. the major developed economies should adopt more responsible and effective fiscal and monetary policies properly handle their debt issues and ensure a safe and stable operation of investment in the market. all of this is aimed at restoring confidence in the investment community. this is mr. wen very much on the offensive as the european leaders continue to struggle with dealing with the debt crisis. there still seems to be paralysis in washington about how to deal with more jobs and how to get the economy kick started there. and this is china saying the time for talking is over. we need more action. so certainly mr. wen making his presence felt on the global stage here at dallan. he also talked about his own efforts and what he sees as issues that china has to face over the next few years.
listen to this. >> translator: we must grasp the strength, pace and key points of macro control power, balancing the relationship between stable economic growth, reshape economic structure, and the expectation of inflation. we need to maintain the general stability of price levels and prevent economic upheaval to fully achieve this year's economic and social development goals. >> premier wen speaking to the opening of the world economic forum conference here. this is known as the summer davos. this really is aimed much more at businesspeople and emerging markets, and particularly this year dallan has assumed major, major importance for many businesses around the world. the reason is simple. u.s. consumers are exhausted. european consumers are confused. i don't know what's happening to the debt crisis. people are looking around.
companies are now looking around the world to find out where the growth is going to come from, and obviously china fits that criteria, hopefully. they're here to see exactly what's going on on the ground and to talk to each other about economic conditions out there. about 1,500 delegates here today from about 90 countries. so it gives you an idea of just how important. davos attracts only about 2,500 more, gives you an idea. now, obviously, there is a lot going on in dallan around all the rooms here today. the question is, one of the big questions is can the chinese consumer actually prop up the global economic outlook at the moment? now, over the course of the hour, nina, we're going to be talking to martin surrell from one of the biggest advertising companies. he's familiar with what's going on in china. we'll be asking for his opinion. we're also going to have a look at what the chinese consumer looks like. are they covered head to toe in labels? or are they a little bit more
less conspicuous than that? and also, we are going to be looking at the chinese economist, very well respected, based in hong kong. she's always on the road in china finding out what's going on. that's all ahead, nina. >> look forward to it and of course your reporting as well from the world economic forum currently under way in china. back here in europe, hopes of a life line stopped the slide on stock markets around the world on tuesday, but if investors were hoping for some kind of calm to return to trading today, it seems they might be disappointed. what they will be doing is tuning into a conference call later on today between the german chancellor, angela merkel, the french president, nicolas sarkozy and the greek prime minister. this as these three leaders try once again to try and get some kind of grip on europe's ongoing debt crisis. when it comes to the markets, this is how the leading indices are performing. we're about an hour into the start of trade. as you can see, some of the
stocks, the most affected by the volatility have been the french banks listed on the cac 40. but the cac 40 having a bit of a rebound at the moment, up to the tune of 1.1%. ftse 100 and the other indices up by about half of that in percentage terms. the french banks that are the most exposed to greek debt have been the ones that have been feeling the brunt over the last couple of days. france's biggest lender saw its points oscillate by more than 21% tuesday. the other big french bank out there, the country's number two lender, saw an intraday swing of no less than 25%. right now what we know is that soc gen and the number three bank have actually see their credit downgraded by moody's. paribas down more than 3%.
that company's down more than $3.32. andrew. >> yeah, that gloom and the apparent lack of leadership wen was referring to here certainly seems to be playing out across the asian markets as well today. not seeing big falls, but we are seeing falls, and interestingly, it is the banks as well here in asia. it's also property stocks that are taking hits. let's take a look at some of the numbers. the biggest loser today, actually, was in australia. the benchmark s&p there coming off with a loss of 1.1.66%. the hang seng virtual hi flat. the tokyo nikkei down by more than 1%. here in shanghai, the only upside of the day, the composite up by more than half of 1%. nina.
now, when it comes to u.s. markets, they look set to post mostly lower when trading begins a number of hours from now on this wednesday's session. this is where the u.s. futures stand in terms of the premarket action. what we're expecting is a number of these indices to be down to the tune of about one-third of 1% to about one-quarter of 1%. but let's come back to talking about europe because it really is the thing that is dominating the agenda today. there's no prizes for guessing what's behind all this kind of market volatility we've seen of late. rising fears over the inability or apparent ability of europe's leaders to resolve the ongoing debt crisis which is now approaching its third year. there's been almost no sign of coordinated cohesive approaches to europe's past problems over the last 24 hours or so. first we saw angela merkel, the german chancellor, pictured here with nicolas sarkozy, saying don't panic and denying that a greek default was actually on the cards. that came just a day after her
own economy minister actually suggested that europe's leaders could be considering what he called an orderly insolvency for greece, and then there was talk that ms. merkel herself would actually issue a joint statement on greece with mr. sarkozy himself yesterday. that statement never materialized. and neither has a life line from china, which is one of the main topics of conversation yesterday. investors had been hoping for a flood of chinese money into italian bonds. we have the italian finance minister pictured with the italian prime minister, berlusconi. tremonti had been meeting with the chinese sovereign wealth fund. the italians are still waiting for this kind of investment. his boss, berlusconi, will be hoping for a better house in the house of parliament as the latest version of his aus tteri package is put to a vote later today. those belt-tightening measures are trying to reassure the
markets that this country won't be the next eurozone country to see its finances go belly up. and across the atlantic, reassurance is what the u.s. president, barack obama's, looking for as well. earlier on in the week, he told spanish reporters that the eurozone leaders need to show a coordinated approach to dealing with the debt crisis. mr. obama's treasury secretary, timothy geithner, is also seeking solutions to the problem. and he's about to take an unprecedented step of actually attending the european finance minister's meeting in poland on friday. he's expected to urge them to boost the size of the eurozone bailout fund. andrew. nina, the global media giant news corporation is now battling fires on three continents over the telephone hacking scandal. let's look at the latest developments. news corp., this is in the uk, news corp.'s deputy chief operating officer, james murdoch, son of rupert murdoch,
says that he is happy to testify after being called back for a second grilling by uk lawmakers. meanwhile, in the united states, a group of independent shareholders is stepping up legal action, accusing the company, in their words, of an historic pattern of corruption. and the australian government is planning to skrut nies the country's media industry after complaints that news corp. had too much of a monopoly on the market. and just to give you an example of that, news corp.'s reach is 70% of australia's newspapers. nina. andrew, the power of the chinese consumer is very much on the minds of international companies attending this week's meeting in dallan as you've been telling us. after all, the size of the chinese middle class is expected to be four times that of the u.s. andrew spotlights that next from dallan and he'll also be talking with jpmorgan's china on plans
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welcome back to "world business today" on cnn. welcome back. >> welcome back. also to -- to dallan where we are covering the summer davos, as it's known, nina. we're looking at one economy that certainly is growing when there is growing pretty much any way you look in the developed world. >> right andrew. the story of china's wealth is well documented. just last week as many of our viewers may remember that the number of billionaires doubled over the past two years. there are more than 130 of them in the year 2009 and 189 in the year 2010. but this is what i want to show you. this year, take a look at the figure. it has skyrocketed to no less than 271 billionaires.
and with the growing population, it's no surprise, as you can imagine, that the chinese consumers are on the minds of many of international company. andrew, you've been investigating the chinese consumer. why are they so important, and what are people saying about that there in dallan where you are today? >> well, they're so important because they are now in the world's second biggest economy which has been growing, on average, nina, 10.5% over the past ten years. compare that with what's been happening in the traditional markets in the u.s. and europe. so these consumers, which are helping drive that -- and i won't say they're completely driving that growth, because they're not, but they form a small but growing part and an essential part of the growth of china and obviously economies around the world are looking at these sort of people now to see whether they can actually pick out the burden left by the stalling of consumer buying in places like the u.s. and western europe. now, as you say, we've been looking at the consumers.
i want to show you a snapshot of some of china's hardcore consumers. >> reporter: factory owner min lifts up his daughter to receive a blessing from the god of wealth. "i heard that if you touch the god of wealth, you become rich," he says. dressed head to toe in designer labels, the li family has traveled to hong kong for one reason, to shop. "hong kong is a shopper's paradise. each time we come to hong kong, we spent about $100,000 or so," he tells us. that's about 15,000 u.s. dollars. the li family represents perhaps the most important consumer in the global economy today. the chinese middle class. a customer base estimated in the hundreds of millions with cash to spend. as growth slows in the u.s. and europe, companies are desperate for new customers. many already get a growing share of their revenues from china.
last month luxury jeweler tiffany posted dazzling quarterly results helped by chinese tourists who stepped up diamonds in the u.s. but as luxury brands revel in china's newfound prosperity, further down the ladder, the environment is more challenging. >> so we're very good at selling image brands, consumer goods. we also are good at selling other types of products like certain cars. but broadly speaking, the chinese have in the mass market have their own brands, their own companies. and it's there that the western firms struggle to really penetrate the local consumer market. >> reporter: despite competition from homegrown brands, the sheer scale of the chinese consumer market is too big for companies to ignore. and it's only going to get bigger. the brookings institution says that by 2020, china could be the world's top middle-class consumer market. and by 2030, that may account for 18% of all global spending.
>> you've got 960,000 individuals who are worth more than 10 million. you've got 60,000-plus growing every day, individuals that are worth more than 100 million. but my favorite stat for china is a trend that suggests that right now in five years' time from today, 50% of the rich, which is 1 million u.s.-plus have nothing right now. >> reporter: these are mouthwatering statistics for global retailers. and like the li family, they, too, hope that china's god of wealth continues to smile on the world's second biggest economy. you get the impression there or the picture there, nina, that there are some pretty big consumer spending moments going on in china. and a lot of it's luxury beforehanbrand. now, middle class can be anything between earnings of sort of $2 to $20 a day. so at the lower end of that,
you've still got people who don't have a huge amount of money. that's very important. and as we say in that story, talking about trying to get into rural china, places like that with basic goods, that's still a challenge. >> yeah. andrew, what about the lower classes in china? are they still providing a bit of a boon for companies investing in china? and also, what about the country's moves to try and boost domestic consumption and move away from an export-driven economy? >> well, it's certainly trying to boost consumption locally. i mean, they've raised the threshold on income taxes. basically they've given a tax holiday to people. they are doing little things here and there to try to get people to spend. but this move away from this reliance on exports is a lo long-run issue. this is something you can't change overnight. remember, this is a country with thousands of years of history. so no one's expecting in china that this is going to happen
quickly. i think there's great hope after 2008 that china could turn on a dime almost and start buying u.s.-made and european goods. that's not just going to happen. but i was speaking to jean ulrich, the head of china research at jpmorgan. she is constantly on the road around china. and i was asking her what sort of mood chinese consumers are in at the moment, and this is what she had to say. >> in the current environment, you have a lot of uncertainties, both in china as well as in the global environment. economic growth, europe and the u.s. is decelerating. in china, we've had inflationary concerns. so consumers actually are hunkering down. they're saving more. you also have concerns about basic social safety net. people save for their retirement, for education of their children as well as for health care. so basically, they don't have a whole lot of disposable income to spend on consumer products.
>> jean ulrich there. and then you can't underestimate the importance of this social safety net, having unemployment benefits, having health care, that sort of thing which we still don't really see in china yet. >> okay. andrew, do stay with us, andrew. we'll be co-anchoring the show right throughout the course of "world business today," this edition and later on. we'll be back with him after the break. we'll also be speaking to jennifer delgado. she'll be bringing you your world weather forecast, so don't go away.
welcome back. live from london and dallan in northeastern china, you're watching "world business today." >> let's go to the weather now, starting with germany where they're clearing up after a major storm. jennifer delgado joins us from the cnn international weather center. good morning to you, jen. germany first. how's it looking? the cleanup operation is under way? >> yeah, you know, the weather is looking better today, but it was quite wild late sunday as well as into monday. we have some new video in, and it's showing you the damage left behind after a round of strong storms. people are cleaning up there after some of these storms produced some good-size hail as well as damaged roofs. you can see them, the homes there, homeowners actually cleaning up. and this is after reports of wind gusts up to about 80 kph. and certainly many areas there are cleaning up. this happened in the western part of germany as well as in the eastern part of germany. and look at this hail video
here. you can get an idea roughly, you can see, about the size of, say, a table tennis ball. as i take you back over for today, we are still looking at just a small problem spot. we're talking about right through scandinavia. still dealing with the remnants of katia. remember that storm? well, it's producing some heavy rainfall, we'll continue to see that as well as some gusty winds at times anywhere along the baltic sea through the remainder of the day. otherwise things are actually pretty nice across parts of europe. you can see to the east, south and over towards the west, we have another storm system that's going to be bringing windy conditions through parts of the uk as we head into the end of the workweek. and that also is going to bring in, of course, some rain as well as some cooler temperatures. but right now the temps right near 19 degrees in paris. 34 degrees, madrid. and 20 degrees in vienna. and 18 degrees in stockholm. a little bit warm there. then across parts of asia, china fairly quiet. still looking at some heavy rainfall coming down through areas including vietnam, south
east asia. we'll continue to see the potential for problems of flooding across that region. finally, i leave you with video coming out of china. and guess what? they are celebrating there and taking part in the 23rd macau international fireworks display. several countries are putting on their display. we'll have more "world business report" in just a moment. stay with us.
del santos. >> from dallan in northeastern china, i'm andrew stevens, and you're watching "world business today." let's go straight to the markets. this is how the leading indices are performing so far into the trading day. we're nearly an hour into the trading session. take a look at this. we have the dax which has teetered into red at the moment. it was up about a quarter of 1% last time we looked just 20 minutes or so go. ftse 100 virtually flat. a number of these indices headed towards negative territory after starting out the day in positive territory, but remember, it has been a very volatile week for these stock markets. they lost in excess of 2% to nearly 4.5% for france on monday, then rebounded yesterday. all of it surrounds concerns over a potential default for greece and the effects it could have on some of europe's largest banks, particularly those listed on the cac 40 in france. andrew. yeah, nina, there's certainly a lot of talk up here at the world economic forum
about the need for europe to really take the bull by the horns here and actually come up with a package that is workable and agreeable to the members because there does seem to be a sense of frustration certainly among some of the people i've been speaking to that the situation obviously is not improving. but if you look at what's happened in the markets today, it's still the european story that's driving markets here. banks and property stocks are taking the biggest hits today. as far as markets are concerned, let's look at the numbers. the biggest hit came in australia, the s&p there was down by almost 1 2/3%. the composite here in shanghai or here in china, about 0.5%. nina. >> a pretty mixed picture where markets start trading here where i am. but in the united states, it was
a slightly less gloomy outlook on tuesday despite escalating concerns over that possible greek default and the overall debt crisis in the eurozone which largely investors agreed upon the fact that eurozone leaders haven't yet managed to tackle, as andrew was just saying from china. you can hardly describe it as a rally on tuesday, but the main indices ended the day in positive territory. as alison kosik reports from wall street. >> around the break-even point for most of tuesday amid fears about the future of greece's economy and the ripple effect on larger european countries. but in the end, the market was able to find solid footing. the dow rose 44 points, ending at 11,105. the nasdaq gained 1.5%, and the s&p 500 added about 1%. a report on august import prices gave some investors reason to buy. prices of imported goods fell 0.4% last month, mostly due to
lower oil prices. but food and materials prices were also lower. the report helps to ease worries of inflation and could give the federal reserve additional cover if it chooses to launch another round of stimulus later this month. an index of small business optimism was lower for the sixth straight month. the national federation of independent business says the decline represents a no-confidence vote on the summer's debt ceiling debate in washington. but sluggish sales remained the biggest problem for small businesses. and while the number of businesses planning to hire new workers in the next three months actually went up, it's still lower than the number who say they'll lay people off. two important pieces of economic data hit the scene wednesday. investors will get a look at inflation on the wholesale level, and the government's august retail sales report is due. investors will keep a close eye on that one to see if and how the u.s. debt downgrade and hurricane irene affected consumers last month. that's a wrap of the day on wall street.
i'm alison kosik in new york. this is where the futures market stand. last time we looked, these futures were down by about one-third of 1%. but as europe has in the last half hour taken a bit of a nosedive. as you can see the losses on the futures market even more pronounced. what ear seeing at the moment is the only indications show us we could see some of these markets falling more than 1% when the dow, the s&p and the nasdaq get trading later on today. andrew. yes, that's the outlook for u.s. futures. let's circle back now to china where i am here in dallan at the world economic forum, so-called summer davos meeting. now, martin sorell is founder and ceo of one of the biggest marketing companies. i caught up with him a little earlier to find out what chinese consumers are in and whether
they are getting ready to pick up the burden from the u.s. and european consumers. >> if you look at the five-year plan, a remarkable difference to the 11th five-year plan. i think it was 7.5%. and they did about 11, 11 1/2. and the 12th plan they've gone down to 7. so they usually outperform their plans just like a company likes to outperform their budget. so i think they'll do better than that. but it's really lower growth rate, more balance, more social harmony, emphasis on social harmony, more emphasis on consumption. so i think it's early days, andrew, to say whether we've seen the change yet. but it will come. and we will see greater consumption. >> do you see the chinese policymakers are actually serious, though, about this rebalancing, about getting more domestic demand? >> yeah, i think they definitely are. i think you see it in the plans, and the plans are always very detailed. i mean, you heard from the
premier's plan that he gave out here in the summer davos. it's a plan that covers every possible aspect of chinese economic and social policy. i mean, the unnerving thing about these speeches is that they cover everything, and then they go about actually implementing what they talk about, which is very rare amongst politicians in the west. >> do you think the world generally is putting too much hope, emphasis, on the chinese consumer rescuing the global economy? >> well, it's not just the chinese. if i talk from wpp's perspective, we're putting a lot of hope and a lot of investment, a lot of faith in the ability of the bricks in the next 11, to continue to grow, to make up for the lack of growth that we see in the western economies in the united states and western europe. i mean, i'm a great believer in long-term economic swings. this is just a replay of what we saw in the 19th century.
this is back-to-the-future stuff. this is where we were in the early 19th century. >> and when will we be at that level? >> well, talk about 2030, 2040, 2050, in that range. >> from your perspective, and you would be or wpp would be very much a leading indicator of the global economic condition, do you expect or are you now seeing signs of recession in the european, in the u.s. markets? >> nothing yet. i mean, the amazing thing is we've seen our august numbers now. and they're just as strong as the first seven months of the year. so for the first two-thirds of the year, no sign of any wobble. of course, what's been going on from a psychological impact must have an impact. >> the odds now of a recession particularly in the u.s.? >> defining a recession is two quarters of negative gdp growth.
i think that's unlikely, but it's a foolish way to predict it one way or another. my view, it's a slog. >> and sorrell, the head of wpp, nina. it's interesting, he echoes what many people here say and have been saying that yes, there is a change, a trend is taking place. the consumer demand is picking up. but it's not going to happen overnight. this is a long process. several years, 10, 15 years. >> andrew, let's go back to what you were talking about just 10, 20 minutes ago, the burgeoning middle classes in places like china because we've had some interesting statistics out of the world's largest economy which is, of course, the united states. poverty in america has actually hit its highest level since 1983. the u.s. census bureau defines poverty as a family of four with an annual income standing at around $22,000. take a look at these figures i'm about to show you. in 2008, just over 13% of americans were living in poverty. a year later that figure, as you
can see, had risen to 14.3%. and it's been on its upward trajectory ever since. in 2010, last year, as you can see, it reached 15.1%. and this is how many people we're actually talking about. more than -- take a look at this -- 46 million people across america. that amounts to about one-sixth of the country's total population. now, the data out recently showed that over the course of the last 30 years, the income of a middle-class family in america increased by just 11%. by contrast, the richest 5% of america actually saw their income surge by 42%. puts it into context, andrew. >> yeah, doesn't it. you're watching "world business today." we'll take a break. we'll be back in just a moment. 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, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses.
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microsoft has been showing off its new windows 8 at a developers conference in california. it's the first time the company has designed an operating system for both tablet and also pcs. microsoft is under increasing pressure from the likes of apple which is steaming ahead in the tablet computer market. hewlett-packard is extending its takeover of the uk software firm autonomy. fewer than half of the shareholders back the deal which is worth more than $10 billion. hp launched the takeover bid back in august. if it goes ahead, it will be one of the largest software deals in the industry's history. and google is teaming up with intel to try to get a leg up in the smartphone and tablet computer markets. intel-based phones running on the android software systems are expected to come to the marketplace in the first half of 2012. andrew. now, coming up, two leaders with a conscience. find out how charity and community are all part of being
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certainly there's a lot of buzz. and it's known as the summer davos. welcome back. you're watching "world business today." now, who says that businessmen can't also be benefactors? we're going to introduce you to two executives that show you that turning a product need not. they both contribute in different ways and both benefit from giving. it's time for this week's episode of "the boss." >> reporter: previously on "the boss." leading by example. francis lui gives his people room to lead and room to lead. >> as the manager, they make all those tough decisions for us. >> reporter: and in new york, delivering on a promise. steve hind pays for 48 of his employees to holiday in europe. >> it had a great impact on morale and on enthusiasm for the
company. >> reporter: on a stormy tuesday in new york city, brooklyn brewery president steve hindy has arrived at the historic brooklyn academy of music, better known as b.a.m. he's meeting with karen hopkins and her team to finalize plans for a unique partnership between the two organizations. a beer called the bamboozle. >> well, the beer's in the tanks and should be ready in a couple of months. so we're excited about that. it's going to be a belgian style beer. it will be refermented in the bottle 100% like champagne. and we added -- we're buying honey from a beekeeper in upstate new york. >> reporter: steve has created the bamboozle beer especially for the brooklyn academy of
music. which is celebrating its 150th anniversary this fall. >> the howard gillman opera house. it has 2,000 seats. it's one of the great historic theaters in the country. every presidential candidate used to make big political speeches here before there was television. this is the picture of the old theater. >> reporter: the history of this place makes this project like no other. and steve knows it. so he's doing what he's done on many occasions. donating a portion of the proceeds to b.a.m. for each case of beer sold. a win-win deal for b.a.m. and for brooklyn brewery. >> today's meeting is really kind of to sign the contract that we arranged with b.a.m., you know, part of the proceeds from the sale of the beer will go to b.a.m. and they'll be buying beer for their promotional purposes. so this is just kind of to seal the deal. good. thanks. >> thank you. >> reporter: steve makes these
collaborations a key part of his marketing strategy. with charitable donations comes valuable exposure. >> i looked at new york city, and it's a very noisy place. it's a very difficult place to get attention. so it seemed to me that rather than spending money on expensive advertising, which probably wouldn't have been that effective because we didn't have that much money, that we should invest in the community. >> reporter: brooklyn brewery donates about $200,000 in this way every year. >> it's enabled us to get a lot of attention for the company. yes, we're doing good, but it's also good marketing for brooklyn brewery. ♪ >> reporter: over in macau, francis lui is also reaching out to his local community.
for the seventh year running, he's sponsoring the volleyball world grand prix in macau. but he doesn't see this as a business. there isn't any profit to be had here. in his eyes, this is about being socially responsible. >> galaxy is already one of the few big companies in macau, and we feel we have responsibility to make sure that we also contribute back to society and community. and this is a small part of doing it. >> reporter: as he watches the final between brazil and the united states, francis is all too aware of the importance of his sponsorship. he knows not everyone backs his industry. so he's trying to send a positive message to the local community. >> the industry is not for every. and this is why we need to connect with the community because we feel that we need the
citizens and the family to understand that a gaming company can also be a caring company. >> reporter: by sponsoring this and other events like the city marathon, francis believes he's helping to upgrade macau's ai j image. he's showing that there's more than gaming. perfect for a company that's counting on macau's growth as a tourist and leisure destination. >> of course, i think this is really part of the agenda to make sure that we diversify for something more to do, something interesting to do. >> reporter: for francis, this is his way of belonging. showing the community his appreciation on what his company has become. an act of gratitude with an important personal side to it. >> in order to be a good company, you want to go back and look yourself in the mirror that you have done the right thing.
this is not just about taking from a society. this is all about feeling good, giving back to the society. next week on "the boss" -- >> to have that time away, to not be from my wardrobe, to just be sara and to be a mom for me personally what was the time i needed. >> sara returns to work refreshed and refocused. that's next week on "the boss." let's take another look at how the european stock markets go before we leave you this hour. this is the picture across europe. it has soured significantly over the course of the last 20 minutes. and then again, as i was saying, things are very volatile. last time we looked, some of these markets have teetered into the red. as i speak, they've gone right back up. some of them up in excess of half of 1%. on news that the uk unemployment total reached now above 2.51
million for the last quarter or so. three months up until july. also very much front and center. ongoing concerns about how eurozone leaders will eventually manage to try and resolve a potential greek default on its debts and how that is affecting the french banks. a couple of those downgraded by moody's investor services. those are the things to look out for later today. markets very volatile even at this very hour, they've swung between gains and losses and back up in the green again. andrew. of course, we'll continue to monday tar the markets. but for the moment, you've been watching "world business today." thanks so much for joining us. i'm andrew stevens at the world economic forum in dallan in northeastern china. >> and i'm nina del santos in london. in the meantime, it's good-bye for now.