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tv   World Business Today  CNN  October 28, 2011 4:00am-5:00am EDT

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lots of people to work and created lots of happy families. they really like being with me. i'm very happy about that. >> donald, thank you very much. that's all for us right now. hello, i'm nina dos santos. these are the headlines this hour. you're watching cnn. we'll be going straight to "world business today." let's bring you up to date with the top stories on friday the 28th in the business world. spain's jobless rate jumps once again, away from euro zone politics, ordinary spaniards feel the pain. and the french president says it was a mistake for greece
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to join the euro. first off, let's go straight to the european stock markets and see how they're faring at the minute. we're seeing a higher open and that in turn follows rallies on thursday after that crucial deal was reached at the eu summit in brussels. we'll bring you the numbers in a moment's time. first up, let's tell you what's making news across the region. in particular, it is the french president, mr. nicolas sarkozy. in an interview on thursday, sarkozy said allowing greece into the euro zone was, it seems, a mistake. greece ended with false economic figures. it was not ready to do so. sarkozy spoke with the chinese president, hu jintao on thursday to assess china's reaction to the eu deal. we had spanish jobless figures being released a few moments ago. what we know is the spanish jobless rate has risen to
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21.52%. so 21.5% across this euro zone nation. this means that spain still has the worst unemployment figures for the whole of europe. and when you have a look at how the spanish stock exchange is doing at the moment, that's the ibex in madrid. it's currently up by 0.33%. slightly modest gains. the rest of europe is doing quite a bit better that gives you an idea of how much the unemployment figures have put a damper on the early morning action. we have a bit of a downnote for the ftse 100. stronger gains, as usual, these days for the dax and also for the cac 40 as well. of course, yesterday we did see the euro jumping about 2% against the u.s. dollar. it has waned slightly on friday's session. a lot of this moment in the stock markets and the currency markets is, of course, thanks to the last-minute deal that euro zone leaders managed to clinch
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in brussels about 24 hours ago. asian investors still have their fingers on the buy button, following yesterday's breakthrough. the market's on track for their best week in nearly three years. ramy inocencio has the closing numbers and the major headlines out of the region. >> first off i want to tell you about a deal happening in china. we're talking about the deal in europe. that did happen with esfs. in china, no deal for clauhim. meantime in the smartphone wars, it turns out we have a new king. samsung toppled april until the third quarter to be the world's top smart phonemaker. the south korean electronic maker said it shipped 28 million
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handsets, compared to apple's 10 million. samsung says that's a jump at 44% quarter on quarter. and the asian markets, the nikkei closed up 1%, having pushed past the 9,000 mark. banks and exporters here were up, toyota and honda, higher by about 3%. on the flip side, olympus, the cameramaker closed down by about 10%. reeling from a consultancy fee scandal that cost the jobs of its top two executives. in hong kong, the hang seng was up 1.6%, making for its biggest weekly gain in two years. bank stocks are still cashing in out of thursday's deal. the kospi closed up almost 0.5%, hitting a three-month high earlier today. samsung closing up more than 2% after the news about its hand phone shipments, of course.
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the asx 200, this staying flat, closing nearly flat, pairing earlier gains we saw in the morning, banks and miners, piling on more from yesterday, rio tinto and billotin closing up as well. the kospi up about 4%, the shanghai composite up nearly 6%. that esfs breakthrough is translating into a breakout in asian equities. nina? >> it's amazing how that esfs agreement finally had, let's say, an impact on all of the world's markets. ramy inocencio, many thanks for that. let's move from asia and europe to wall street because big applause and big gains on wall street is what we saw yesterday. the dow jones industrial average is heading for its best month
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since back in january 1987. and u.s. markets look set for slightly lower open when trading begins later on on friday. here's where the premarket action stands at the moment. the futures indicate we could see a loss of between 0.5% and 0.25% for those markets in four or five hours from now. let's return to the euro zone and in particular spain where the country's jobless rate continues to climb. the latest unemployment figures released today are up more than 0.5% for the third quarter reaching a total of 21.5%. if you translate that number, it means almost 5 million people out of work. that figure has more than doubled since back in 2008 when the country's labor intensive property market collapsed. and these people, a protest group known as the indignants have been on a campaign for equality in spain. the indignants movement began in
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spain earlier on this year. it's seen as one of the inspirations behind the occupy wall street protests that we've been see going on for the best part of a month or two now. they are planning an international day of protest on saturday, which they say will include at least 70 countries. al goodman has been monitoring the very manies in madrid. he joins us now. let's start out talking about the jobless numbers here in spain, bigger than expected, 0.5%. this situation just gets worse and worse, doesn't it? >> it does, nina. and usually the third quarter in spain is a pretty good quarter and unemployment normally would go down because of the seasonal jobs in the big tourism industry. not the case this year. the government said they wouldn't get to amillion people. it's just about 22,000 people short of getting to that psychological 5 million number. the jobless total went up 144,000 in the last quarter. this is very bad news indeed as
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the numbers jumping up. this is a figure that all the economists pay attention to because it compares to people going into the unemployment offices with the entire working population. most of the sectors increased in joblesses in only industry went down. we were talking at a leading business school, the ie business school just yesterday with some students, some nba students. we talked to a british man. let's listen to what he has to say about his job prospects. he's worried not just about spain and the uk but the whole eu. let's have a listen to what he has to say. >> i do think i'll be able t get a job but the question is where and what sort of industry. i'm considering alternatives which one of them is a move to asia, trying to capitalize on the booming markets over there. >> and nina, you're seeing essentially almost a lost generation of young spaniards. the best educated group of spaniards in the history of this country, many of them thinking of going abroad like this young
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man. nina? >> youth unemployment really is eniter it stage here in the united kingdom where one out of five people under the age of 24 are out of work. it's nearly 40% in spain. what can authorities do to bring these people back in to work or even in to work for the first time? >> they're doing -- remember there's going to be national elections, early elections next month on november 20th. the two-term socialist prime minister is not running again. he's been too politically damaged by this economic crisis. his government has got some plans out there to have that internships count toward your end of life social security and plans like this. but basically leading economists this morning on the radio i've been listening to are saying these latest figures for the overall working population, for the jobless overall but especially for the youth there's no real movement in the economy. demand is down and demand from
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what would be the normal export partners, france and germany, are also down. there's no bright prospects even close. nina? >> is this a disillusionment from the protest movement? they seem to have given other people the idea of doing the same thing. what's the feeling like on the ground there in spain? >> it's interesting with the indignant movement, which is called mesath. however you want to shake it out, the numbers of people on a massive protest on october 15th that we covered, you didn't just have young people. you had old people, grandparents, little children. a lot of people are coming out to express their sadness and outrage with the economic situation, what they say is, yes, it's a democracy in spain but it's not open enough. it's too centered on the two big
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parties. there's a lot of disillusionment here and one might expect it could even grow. nina? >> al goodman, joining us from madrid. many thanks for that. the occupy london protests have led to a high-profile resignation. the cannon of st. paul's cathedral has stepped down. the reverend dr. giles frazier has pledge his full support for the protesters and said he could not back violence in the name of the church. it goes to show we're seeing similar situations here in the united kingdom to the ones we were talking about in spain with al just a moment ago. he may not be about to quit his job but donald trump has his eye on the grand protest movement. he spoke with piers morgan and seemed to agree that the demonstrators, to a certain extent, had a point. >> i think some are very serious people. i think some of them are down there for dating purposes.
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they're down looking for girls, looking for women, looking for men. they're looking for anything. some are very serious people and they should be serious, because the economy is terrible. i personally think wall street isn't their target. i think their target is the white house and certainly washington. >> and at the other end of the political spectrum, the fillmaker michael moore was more unequivocal earlier on this week. >> this is a conglomeration of ideas and thoughts and feelings about what's happening. it all points to, are we going to live in a democracy that's run by the majority of the people or are we going to be be living in a cleptocracy? millions have been thrown out of their homes, millions are without health insurance. millions have lost their jobs. how month millions do they think they can abuse like that before people start to stand up?
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>> protesters in new york and other cities around the world are expressing many views on many issues. one thing is safe to say, they agree on, too much wealth it seems is concentrated in the hands of just too few people. a new report from the u.s. congressional budget office may support their argument here. it shows in the united states, the super rich it seems are getting even richer even faster. the report shows that the incomes of the top 1% of american earners have risen by nearly 275% over the course of the past 30 years. now, in comparison, the middle class saw their incomes grow by 40%. the incomes of the poorest americans, which account for one-fifth of the population rose by just 18%. >> to find out just who are the people protesting behind the global occupy movement, cnn.com created its own page called meet the 99%. ten i-reporters in ten cities around the world have been capturing portraits of the
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demonstrators who shared their reasons fordowning the movement, from the united kingdom to denmark, canada and the netherlands as well as the united states. the protesters are diverse, young, middle-aged working employees -- unemployed, excuse me. they echo recurring themes, however, by fighting corruption and corporate influence in government. now, a comment from the french president has some shaking their heads and others nodding in agreement. we'll tell you what the french president, nicolas sarkozy said when we come back. where there's magic. and you now understand what nature's been hiding. ♪ at dow we understand the difference between innovation and invention. invention is important. it's the beginning. it's the spark. but innovation is where we actually create value for dow, for society, and for the world. ♪
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sarkozy. he went on to appeal to the public to back the reforms and keep greece as a member of the euro zone. the greek crown prince tells cnn that being in the euro zone hasn't necessarily been to the benefit of the greek country and the greek people. matt foster spoke to him after the euro zone plans were announced. he began by asking the prince if he was relieved by the agreement. >> it's a huge relief for the country. and i think the government has worked very hard to get to this point. >> how did greece get into this situation, do you think? >> the backbone of our country, and in most countries, is the public sector. we have a very good one but we have too many. and over time, the governments have basically implied more and more people into the public sector, so a job that could be done by one or two people efficiently has been handled by three, four, five people. i would say 25% of our working
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force is in the public sector. we have created a middle class, which is somewhat a false middle class. they've been able to live under wonderful standards. >> that middle class largely works in the public sector and they're losing their jobs now. >> losing their jobs or being brought down dramatically in the level of income they'll be making. >> just describe the atmosphere in greece right now. >> the whole country is not as aggressive as what you're seeing. there are people who are very, very good people who want to work hard. to those people is who we have to direct our attention to. there are 11 million greeks in greece and equivalent 10 to 11 outside. the ones outside, everybody will know very well have done entrepreneurial jobs from owning their own restaurants and being millionaires and billionaires, in australia, england, america, around the world. we still have a lot of that kind of personality in greece but some of it has been sucked away
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from us just because they were offered jobs that helped re-elect different governments. that is where we have to change. we have to reintroduce the private sector. >> could this be a fresh start for gross, do you think? >> the real issue are the confidence factor in our politicians, whether it is this current government, previous governments or future governments. there's a high lack of confidence in these people. >> rather future of the euro. do you think it will continue to exist in the form it's in right now? >> being in the euro has not been useful to us. it's been expensive to live. the cost of living in greece has gone up and our -- the minimum wages are 600 euros. that will drop to 300 euros. it's expensive to live. how can you survive under those conditions? the answer is, i think it's going to be a rough road for the euro and it may change what it looks like today over the next few years.
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>> the crown prince of greece speaking to cnn's max foster. after the break we'll have an update from thailand. all across the country, roads and factories have been swallowed up by dirty, relentless waters as the high tide arrives. stay tuned. ( phone ringing )
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a crisis of natural forces continues to cause problems in thailand. nearly so million people are being affected by floodwaters that have been inundating the country for weeks now. at least 373 people have died across thailand and the waters in some places are still rising. cnn's sara sideman describes how the crisis sun folding in the capital, bangkok. >> reporter: here in chinatown, most of the shops are closed. you're standing in an area where the boats have been provided about the the police rescue. at one point this morning after high tide came in, you could see water on nearly every single street in and out of chinatown, some of it about a foot high. it did recede in a few hours. people are happy with the drainage, it seems to be working quite well. to the east of the city, where government warned people to evacuate, water is flowing into
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the eastern part of the city. it's starting to get higher than the sandbags that have been stacked up there. there's also issues in this neighborhood, which is quite a large area. they're seeing flooding in that area. again, another high tide is expected this evening around 6:00 local time. people are bracing for that. many, many people have left the city and it is considered a holiday right now. sara sidner, cnn, bangkok. also the latest on the record flooding across the country, let's go over to meteorologist ivan cabrera standing by at the cnn international weather center. iv ivan, we've been talking about this dramatic situation for weeks now. how much of a factor have the tides got to play about this and what more can you tell us about what's coming up. >> nina, good to see you. the tides have played an important role. heading into the weekend with astronomically high tides we'll get into more significant flooding. if we could only keep that water
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ankle deep we'd be in good shape, though i think it will be getting much higher in bangkok itself. as a result of that backing up. i'll explain that in a second. here's the grand palace, 2 1/2 meter embankment. that is how high this wall is that protects bangkok's city center from flooding. we have now reached record levels. we're at 2.55. we have seen the water overflowing the banks of that embankment here. here the chao pyria river. it's going over the banks along the main rivers. we have high tides that are coming in, especially heading into the weekend that will be more significant here. what happens is as the water tries to flow to the south, the high tide pushes the water in. we get a blockage here. that's why we've had that water pushing in and receding and back
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and forth. heading into the weekend, we'll have that issue in a more significant fashion because of the higher tides heading into saturday. intricate set of canals trying to get the watter away from bangkok here. they are pushing the limits as to how much they can do. this is what's been happening. we've had flooding at the domestic airport there which of course, nina, as you know, has been used as a shelter there. the water even getting there. we'll watch it closely. as far as any additional water into the system, the damage has been done. the monsoon is draw together south, torrential rain to the east but i think we'll be okay in bangkok itself. the danger now is the flooding from the rivers that's already happened here, nothing that would come from the sky. we'll keep you posted here but it is going to be touch and go heading into the weekend especially into saturday afternoon. nina? >> okay. ivan, many thanks for that. you're watching "world business today." when we come back, we'll be
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hearing from the ceo of wpp about his outlook for the global economy and, of course, that crucial euro zone bailout deal. find out why he thinks the devil is in the detail. that's next.
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hello and a warm welcome back. you're watching "world business today" on cnn. let's get another check of the european stock market action. all of the major indices opened higher on friday on the back of news that european leaders have managed to so of or put forth some kind of plan to solve the euro zone debt crisis once and for all. we still have gains, not quite
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as pronounced as yesterday but we have the dax up in excess of 1%. now it's time for our series known as the boss where we tag along with some of the world's top performers to get a feel for how they get things done. this episode is all about growing a brand beyond borders. the courtship of an ad agency. market. >> we're using them to produce tv spots. that's a big step for us as a company and international business. >> reporter: sean cornwell is visiting the agency that will be creating e harmony's new
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adverts. >> terrific to see you again. everyone is incredibly excited about the journey we're about to head on. >> reporter: this is the first time he's meeting the executive chairman. >> i thought it would be useful to recap a little bit about our approach and especially the approach we take in terms of the strategic direction if that sounds good. >> reporter: for sean, today is about exactly that. making sure the vision is aligned with e-harmony's brand. >> i think it's very important that comarama approach this in a different way, take our brand and change it in ways they see best and apply their experience, insights and creativity to this challenge. equally i want to make sure that
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nikola understands the ethos of the e-harmony brand. >> reporter: there's nothing more important than being on question. one mighty question remains, how can comarama turn e-harmony's big american brand into a global one. >> here we don't do dreams as big as the american dreams. the american dream is very much part of the culture. more, category is more established here. they might look at a couple and say, i can't see myself at that point. therefore, it's all too hard for me, i'm not going to choose e-harmony. >> reporter: kamarama has plenty of experience taking big brands into local markets with campaigns for nintendo and costa coffee. now, nicola has some thoughts on how to tackle e-harmony. >> it's pushed you further and
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further in the uk to the happen ever after, disney-esque rarefied thing, which i don't think is attract in any event uk. if we can move it away from the happy ever after and more towards that part of the marketplace -- >> i disagree. i don't think we need to move it down that spectrum very much. it's actually about redefining what we mean by a long-term, serious relationship and not talk about it in terms of marriage. i think if we move too far down that spectrum and just become, we're the place to have a good date or the place to have several good dates, we actually lose what makes us different and special. >> how do you describe that? >> a magic. >> magic. >> magical. >> and certain things that we'll always be about. we'll always be about serious relationships and we'll always be about finding a special someone. we're not going to be about the casual hookup. we're not going to be about, you know, a one-night stand.
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that's not what e-harmony is about. there are certain things that are fundamental to the brand and which will never change. >> reporter: sean says he's happy to adapt the e-harmony formula but it will never change the dna of his business. for this boss, that's just a step too far. >> if there's one thing i would like to see in this campaign it's that there's a lightness of touch, something which is not quite so onerous and heavy on consumers. i think e-harmony has sometimes tended into its messaging to be overly serious and we've got a little bit ahead of ourselves when talking to the end user. i think we need to step it back and remember the premise that dating is fun. >> next week on "the boss" -- she missed out on the prize in 2010 but will sara kern walk
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away the winner this time around? that's next week on "the boss." . let's stay with the subject of bosses now. specifically the subject of directors and their pay. a new report reveals even as the ref of us have been having a hard time of it of late with austerity, job cuts and pension losses, the directors of ftse 100 companies have remained relatively unscathed on the whole. they've done rather well. the report from the incomes data services shows that directors of companies listed on the ftse have seen their total earnings soar by almost 50% in the past financial year. that means they're taking home an average of just under 2.7 million pounds each. that's about $4.3 million. nice work, of course, if you can get it, even nicer than being the ceo of one of these big companies. the ceo's pay increased by 43% in comparison. the world's biggest market services group, wpp, takes
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advantage of strong growth particularly in its emerging markets businesses. that revenue figure came in up about 9% on the previous quarter with business worth almost $4 million to the company. so far, so good, right? earlier today i got the chance to speak to wpp's chief executive and i asked him what he thought of that result. >> i think given the uncertainty, it's fine. we saw a slight slowdown in growth in the third quarter and the fourth quarter will slow a little bit too. we're seeing top line growth over those two years of 11%, 12%, 13% in the last two or three quarters. i think overall it's very encouraging. the growth is where you'd expect it, asia, latin america, central america. you're seeing it in digital, media planning and buying
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businesses, less so in, say, the newspaper, the legacy newspaper part of the business. and the more traditional media parts of the business. so all in all, okay, i don't worry so much about 2012 despite the uncertainty. i think the issue, the biggest issue we'll have to grapple with post-euro zone which will come on to in a minute, no doubt, the biggest issue we'll have to grapple with is what's going to happen to the u.s. deficit post the election. if president obama gets re-elected which i think looks likely, he may have to deal with a house and senate which is republican controlled and deadlock doesn't work well to deal with the deficit. so unless we see a slightly more expansive president in his second term, it may be that they won't deal with the issue. the american economy is still the biggest in the world, 15 trillion out of 65 trillion, china, number two position at 6 trillion. so i think that's the big issue. worldwide gdp forecasts next
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year about 3.5% from goldman. you embellish that in our industry with the olympics, with the u.s. presidential election spending, european football championships will add another percentage point. we're up to about 4% we think next year for industry growth. >> let me ask you about the euro zone. we'll come to the political situation in america in just a moment. >> yes. >> what do you make of the deal that has been reached, the heads of some pretty big companies are breathing a sigh of relief now. >> the press release or communique is peppered with principle. the devil is in the detail. having said that, it's obviously good news. frankly if you're running a company i don't think you can wait for the politicians who are focused, after all they're in business to be re-elected. they're focused very much on the short term and the elections and in france and germany and therefore they're not beginning to really grasp the nettle in
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advance of those elections. i think we should be grateful for what we've got, they're muddle through but in the meantime, we have to get on with running our business and we're off to china next week. we have exciting things to do there and india and brazil and russia and places like turkey an indonesia and even a country like pakistan where we're seeing extremely strong growth or a columbia in south america or argentina and mexico along with brazil. in africa, we have a board meeting reviewinging our operations in capetown. we went to look at the eastern africa and west african nations. there are opportunities that go well beyond the uk which has been strong for us, it's true when and western continental europe. >> that's it for this edition of "world business today." thanks ever so much for joining us. i'm nina dos santos at cnn
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this week a special edition of "marketplace middle east" from the dead sea. jordan's aspirations, as high unemployment triggered most of the unrest in the region, we look at how jordan plans to tackle the problem and libya's oil and economic environment in a post-gadhafi era. demonstrations were triggered that spread across the country and in turn across much of north africa and the middle east. the effects of the arab spring
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have been felt both politically and economically. this week, the international monetary fund put out its regional economic outlook and i sat down with its author, masood ahmed to look ahead. >> the growth in the exports this year is because there's an increase in oil demand and oil production. partly also it reflects the fact that they've ramped up oil production even as libyan oil production has gone down. that's partly compensating for that. next year, looking forward, what you see is that probably subslowdown in global demand, maybe the oil production numbers aren't going to be quite as high. in the oil importing countries, from 2% this year, see some pickup next year. we're saying at the moment maybe it goes up to 3, 3 and a bit. a lot of uncertainty around
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those numbers, in part because of what's happening in the rest of the world. in part because also the base of political and social transformation in a number of these countries are still unfolding. >> egypt, for example, just over 1% growth this year. 2% perhaps for 2012 but it's well behind its average of 5% growth for the previous five years. are we looking at a 3-to-five-year transition to get to precise is levels? >> if you look back and take two or three or four years before both growth and investment begin to pick up again, i think in the case of egypt, a lot is going to depend on how quickly confidence is restored and the second thing that's going to matter is how the government is able to allocate its spending over this period. as you know, the budget deficit
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in egypt has had to go up in part to meet the social needs that have become about, particularly also by looking at this very big cost that higher generalized subsidies of food and fuel have cost. >> it's fascinating about subsidies. it's a point you put out in your report. it's not reaching those who need it the most. it's targeted at fuel to sell food subsidies but they have to rework the formula? >> i think a lot of people in the region are recognizing that generalized fuel subsidies and to a lesser extent food subsidies tend to benefit people who consume fuel. for example, one of the items the egyptian authorities are looking at is how can you target the energy subsidies in a way that still protects the people who need them, ordinary households. >> in the post-arab spring virn environment, masood, should we be looking at three to five
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years realistic amel ift iistic kate that? >> the number one issue right now that faces countries that have gone through these social and going through political transformations is how to manage expectations. young people who are already frustrated with the high level of unemployment to start with are going to start looking to see when and how quickly can i get results. part of it is definitely an issue of engagement and communication. part of it is also to look and see, are there any quick wins one can do to alleviate the situation. >> tensions have been high in jordan where king abdullah dismissed his cabinet for a second time this year and appointed a new prime minister jordan suffers from high poverty, unemployment, inflation and a large budget deficit. leoni lakhani looks at jordan's
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most pressing issues today. >> reporter: mirroring the causes of their arab neighbors, jordanians took to the streets in a series of protests this year, calling for the government to tackle corruption and the high cost of living. while the protests have not been on the same scale of other countries in the region, they have forced jordan's king abdullah to dissolve the cabinet twice since january and push for economic reforms. in the heart of amman, life goes on. beneath the surface, there's frustration, the cost of food and fuel are rocketing and the population is heavily reliant on subsidies. 20% of jordan's budge set spent on subsidies, a high price for a country where the government's debt eats up more than half of its gdp. now in a season of revolution, jord jordan, like the rest of the regi region, are under pressure to heed the welfare needs of its people. >> you're doomed if you don't
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and you're doomed if you do. the best way to break the cycle is limit subsidies to those who deserve it. >> reporter: the kingdom imports more than 95% of its energy resources. this year it began a process to join the gulf cooperation council. acceptance to the gcc could mean a new economic plan that could ease the energy costs, custom gcc's and sport. >> 70% of our foreign income receipts come from the gulf states. in a way we are very much closely related economically. we also can give similar support to the gulf. you know, we have very well trained defense forces. we have excellent personnel. >> reporter: the unrest in the region means tourism, a pillar of the jordanian economy, is sharply lower. unemployment here is already high, officially at 13% and
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double that for those under the age of 30. many jordanians work outside their country in order to make ends meet. >> what's happening in the region is for sure in jordan. i live in jordan and work in the arabic countries, especially. i think this affects the work in jordan. >> stability is a major effect in jordan. palestine, lebanon, asia nowadays. we're thinking of all these things in jordan, the investments in jordan are highly affected by that. >> reporter: jordan has long been home to an influx of refugees from neighboring conflicts. now the need is urgent to get its own house in order. leoni lakhani from "marketplace middle east." i sit down with the interim prime minister of libya to
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discuss the constitution, elections and future oil production.
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with the death of gadhafi, libya is the latest company looking towards a new and different future. i sat down with the interim prime minister, mahmoud jibril to discuss the new constitution and the new time line to make it happen. >> after the fall of the regime and total liberation of the country we're going to have an election for a national congress. the national congress should oversee the drafting of the constitution. after that constitution is approved in the referendum, then we go to a parliamentary elections. probably three months later, a presidential election should take place. >> i've talked with one businessman who went into
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benghazi and he came out shocked this past week because he said it's such a ragtag group, using his words, of different rebels that have arms. how do you disarm people to return security, so business can be conducted again? >> those freedom fighters were all over the place because gadhafi was still there. i think the national transition council is going to issue some sort of statement for those young people to put down their arms and join either a national army or the police. we have another institution to take care of those young kids and accommodate them to society again by providing some ease, providing opportunities in all sorts of life. i am very optimistic that they will look to the future instead of looking at the past. >> let's be candid. that's a huge transition from a
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young individual carrying a weapon or a rifle or machine gun to going into the national guard or creating a small business is what you're suggesting. is that realistic? >> it is. especially for most of those people are professionals, some are doctors, some are accounts. they'll go back to their original work. we have those unemployed that we have to take care of, you know. providing training and sme loans and everything. everybody has his own job, you know, just to feel him that he is part of this society. >> everybody is watching very carefully to see when oil production will pick back up again. can you give us a real estimate of where you are today and when you can get to prewar levels? what's realistic at this juncture? >> for the time being i think we are in the vicinity of 300,000 barrels, you know, which is more than we expected, you know. most of the expectations were estimating that we would be back
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to the 1.6 level, you know, after two, three years. i don't think that will be the case. i think we'll approach that in the period of 15 months maximum, you know. >> if i look back and saw 3 million barrels a day in the early 1970s and would you say the aspiration should be to hit that target again and the reserves would support it? >> taking into consideration the level of reserves, normal reserves, you know, i would strongly advise against that and go for different sources of energy such as natural gas, renewable energy and the hardest task is to create an alternative economy, not ways of oil, ways of other sources of income. mahmoud jibril of libya. that's all for this edition of "cnn marketplace middle east." this week from the dead sea in jordan. i'm john defterios. we'll see you next week.
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