tv World Business Today CNN October 26, 2011 4:00am-5:00am EDT
i'm zain verjee here in london. another dramatic rescue in eastern turkey. a teenager has been pulled out of the rubble alive nearly 72 hours after sunday's 7.2 magnitude earthquake. on tice a two-week-old baby was rescued. officials say 459 deaths have been confirmed since sunday's quake. a dubai-based tv station has called what it calls prayers at
the funeral of moammar gadhafi. the former libyan leader was buried at a secret location in the desert. a handful of supporters paid their respects. in tunisia, a moderate party has won the country's first free election. the country's once banned party has begun coalition talks, but the results have some worried that the rise of a religious party might endanger civil rights especially for women. and now officials say they'll reach out to secular political parties to form a broad-based moderate coalition. the thai government is in crisis mode as floodwaters push further into bangkok. they shut down the city's second airport on tuesday. waters ep croced onto runways making takeoffs and landings impossible. the airport's been doubling as a shelter and headquarters for flood relief operations. those are the headlines from cnn, the world's news leader. i'm zain verjee, and "world business today" starts now.
it's the day investors have been waiting for. they meet in brussels to hash out a complex plan to hash out the european debt crisis. will they emerge with a strategy or will political divisions cause a further stalemate? i'm felicia taylor in london, and you're watching "world business today." we'll have more on that in a moment. first we want to bring you news just in. the chairman of japanese camera maker olympus has resigned. it is the man on the left. he's decided to step down amid ongoing turmoil. it follows the sacking of former ceo michael woodford who spoke to cnn on tuesday. >> it has nothing to do with that. olympus is paid according to reuters, the largest salary.
it was three times what was paid when rbs acquired a $70 billion euro traction. olympus is paid nearly three quarters of a million dollars, and we don't know what for. it's been paid to parties we can't identify in the cayman islands. >> why do you think it was paid? >> i can't speculate. >> you must have a jolly good idea. otherwise you wouldn't make this kind of a fuss. >> the concern i have, and i've been advised there are links behind this to potentially organized crime, what is clear, it's inexplicable. and they and the board haven't answered. we've paid nearly three quarters of a billion dollars to unknown parties in the cayman islands. come on, charles, please. >> i take your point on that. do you expect that the regulators will get involved, and do you think they will come to some kind of conclusion about what really went on? >> it's all in the public now. i pass my correspondents to the world's media. they're now in communication with the fbi.
this can't be hidden and put back in the box. this won't go away until he answers in specific and definitive terms to what and to whom, $680-. >> this is how the company's share produce ended. the resignation came after the close, so any response will be felt on thursday. they've announced the appointment of a new chairman and is about to hold a press conference in tokyo. of course we'll bring you more details. now to the story that everybody around the world, traders, economists, investors are watching as europe runs out of money, the world is running out of patience. but european leaders insist they are making progress on a comprehensive plan to tackle the region's debt and banking crisis. today government heads from all 27 echlu member countries are meeting in brussels in an 11th hour bid to finally hopefully come to an agreement. but divisions remain particularly between euro zone
heavyweights germany and france. french president nichololas sary and angela merkel say a deal is close but it still remains elusive. that is being felt on the stock markets. as you can see in europe's major markets, it's been a mixed picture all morning long. the ftse index edging ever so slightly into positive territory. the dax has so much on the table with merkel going before the board to present her case to their parliament, down abo about .2%. nina dos santos has been following developments throughout the hour. closure on the euro zone saga is far from being reached. if you listen to some economists and traders, nina, is the sense there is that we're finally going to get a comprehensive deal out of brussels? >> reporter: that's what all of these eu ministers and heads of government have been assuring us
for the better part of the last three days or so, felicia since they met on sunday. as you can see, the red carpet is rolled out behind me, but the atmosphere is very tense here in brussels. as we expect eventually some kind of detailed plan to come out, but realistically not until much later today. let me tell you what's on the ageneral agenda. we have things kicking off relatively late. about 4:00 p.m. here in brussels where we'll have an informal meeting of the euro group. don't be dissuaded by the informal title because these talks are paramount to the security of the euro zone and indeed the single currency stability. and then the real deal making should begin after a dinner and things will get cracking at about 9:00 p.m. and if we know, if we take any kind of cue from the summit that we had on sunday last time, it took take hours for these negotiations to go on into the night before they actually agree
to anything. and then again, will we know exactly what they have agreed to? because so far even if they say they have made progress, details remain sketchy and foggy at best. >> some of the issues we've been talking about are bank recapitalizations, whether or not they'll shore up the esfs in terms of a bailout fund. france has agreed that it won't be a bank, but certainly the german leader, angela merkel and nicolas sarkozy have been the main ones in this tug-of-war. what remain their sticking points between one another? >> reporter: yeah, well, a lot of it hinges on two issues, felicia. we should first of owl point out there are essentially three issues at heart that these 27 eu members and the 17 of the 27 that actually use the currency have to agree upon, they're complicated issues. as you were saying, raising that bailout fund, the esfs and how to do so, also how to impose some kind of writedown or
haircut on bondholders who hold greek bonds to try and make them share some of the burden. and finally a bank recapitalization plan. it's the first two that largely has opened up this big rift between france and germany, the two strong men of europe. and essentially it hinges on how exactly to raise more money to protect countries like italy from suffering the same fate as greece without putting more money into that fund. france wants the ecb to help out and the esfs to become an outright bank, but then again that would pose problems with the treaties because it would blur the difference between monetary policy and fiscal policy, the difference between the bailout fund and the central bank that's supposed to ensure against inflation. and if you print more money to put inside the esfs, you will kraelt inflation. now, what we've also good is some concerns about how big a writedown or haircut we could see for bond investors in greek
bonds. angela merkel, the german chancellor, wants something more. she wants perhaps maybe even 60% for them to bear the brunt of a 60% writedown. the french don't want to see that happen because their banks are heavily exposed, and it could weaken their balance sheets, felicia. >> nina dos santos in brussels. before the summit begins, chancellor merkel has to put the issue of leveraging the bailout fund to a parliamentary vote in berlin. fred, it's likely because she has to present this to her parliament that we will get some idea of what's inherent in this vote today. >> reporter: yeah, we certainly will. there was a paper that was passed around here in berlin yesterday which came from the german finance minister which sort of outlined how the germans would like to see these leveraging mechanisms for the esfs put in place. it was a very vague paper. and i can tell you i was talking to some of the parliamentarians, and they say they don't feel
very well informed. a lot of them say they don't know exactly the details. essentially what this paper said is that the details are so complicated, they are still talking to experts as to how to iron all of this out. the big problem that merkel faces today in german parliament is the fact that many members of our own party are against the esfs, the bailout fund. therefore, we expect that some in her own party will go against the measure. however, in total, there is going to be a broad majority. when merkel goes to brussels, it could very well be she is somewhat weakened by the fact that she did get a parliamentary vote going her way. however, many members of her own government were not really in favor of it, felicia. >> fred, thanks for keeping on top of it for us in germany. let's see how that's affecting the stock markets in asia. we're joined by remy. i think the asian markets were
somewhat in the red, but things have your honor itted around. >> yeah, they definitely did in just the last couple hours. we've said it's all about europe. that is the case here in asia, too. this man appears confident that eu leaders can come to that agreement later today, but investors, they're jittery ahead of any firm news ahead. meantime, chinese banks are in the spotlight today. the country's four biggest lenders are due to release their latest earnings figures. and according to a bloomberg survey, china's big four may report a combined quarterly net income of nearly $26 billion. that's actually a rise of 22%. and it's 41% more than their u.s. counterparts. meantime, this is how the major markets closed the day today. in japan, the nikkei slumped after exporters fell on a strengthening yen. the hang seng, meantime, pulled into positive territory just the last hour or so. the shanghai composite eked out the biggest gain of the day, up
about 0.52%. in line with expectations. also, the consumer price index came in at 0.6% between july and september. that's after a 0.9% rise in the previous quarter. that rizs hopes of an interest rate cut, boosting the asx 200 by 0.35% and sending the aussie dollar lower. felic felicia? when trading begins later today, after what was a pretty devastating session on tuesday where the markets lost between 1.75% and 2%. the dow forecast to open down another 0.3% but the nasdaq will open off just fractionally. and now landing on runway 07 three years behind schedule. the boeing 737 dreamliner has finally made its maiden voyage. our own andrew stevens has a ticket. and that's just ahead.
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now taking a look at the currency markets where the euro has rebounded against the dollar from an early october low on tuesday at 1.31, now trading at 1.39. against the pound, trading around 1.60 and dollar-yen reached a new post-world war ii but is recovered by midday trade on this wednesday. these currency moves are having an effect on the shares of japanese exporters. we're also keeping a close eye on europe's stock markets this hour as investors are focused on that second summit in brussels. let's take a look for progress hopefully on a solution to the european debt crisis. let's look at how things stand at the moment. about an hour and a quarter into the trading day, the markets remain mixed. everybody has all eyes on brussels out of what's going to come out of hopefully that meeting and some sort of accord. the ftse and dax trading higher whereas stocks in paris and zurich are trending ever so slightly lower.
well, felicia, here in brussels, big question that's also on the minds of people in 26 other capital cities across the eu is whether these countries' leaders will actually come to that crucial agreement later on today. here's what i've been hearing so far from the belgian capital. >> i hope on wednesday the summit will, in fact, agree on a very concise response. but the change will enable us. because this is good. >> let me just stop you there because you said we hope. a lot of other people are saying you will popefully have something in place. will you? >> i'm hopeful. >> translator: we must find a lasting solution to greece's problems and protect other cannot tris in the euro zone. these things must be done together. >> translator: the chancellor and i have have spent so much time on the phone and in
meetings because this is crisis. the chancellor and i hope to bring about unified decisions. >> i'm quite sure there will be a solution. we need cooperation, and we need full agreement and to be united before the g-20 meeting. it's very important for the global economy. that we are united is important for financial markets all over the world. >> i've learned in politics not to promise anything before you've solved it. we're not really trying this time. >> reporter: so the point is thooe agreed they'll come up with something in a few hours' time. the question is what. and indeed if they won't, what will happen to the markets and the world after that, felicia? well, the markets will definitely not be happy if they don't come up with something that's a little more concrete. we've been talking about this for such a long time.
do you actually think we're going to get specific details? it seems most of the european political leaders have been dancing around those details as opposed to saying something specific because it does have such great market reaction. >> reporter: what we must bear in mind, felicia, and angela merkel stressed this just on sunday during her joint press conference with nicolas sarkozy is that these three problems must be solved together because otherwise the decision to solve one or two of them without solving the final hurdle really could be cataclysmic because it would put the pressure on the other side of the argument. so the real bones of contention, as we said before, are the haircut for greek investors. i should also pint ooint out wh happens if we don't impose upon the sort of july accord when they were already told that they should take a voluntary 21% reduction in the value of their assets. well, that would mean that the imf and the european union would have to find 252 billion yur
recoveriy euros by 2020. because the goalposts have changed so much since greece initially got its first bailout. and since we indeed started talking about the european -- excuse me, the esfs, the european financial stability fund, so it's shifting sands, and that is the issue. the situation gets worse by the day if we don't get an agreement, it will certainly get much worse by the day, felicia. >> kicking that can down the road has got to come to an end, and hopefully tonight will be that night. nina, we'll check in with you again of course through this hour. coming up, an alleged international smuggling plot straight out of a expense novel. we'll have details next on how u.s.-made electronics ended up in a roadside bomb in iraq. stay with cnn.
hello and a warm welcome back to "world business today" live from brussels and london. >> an alleged technology smuggling plot involving no less than four countries has been cracked according to the u.s. justice department. central to the case which spanned several years are u.s.-made radio frequency modules that somehow made their way into roadside bombs in iraq. there's much more to the story. and rami joins us again from cnn hong kong with the details. this story sounds incredible.
>> it definitely is, felicia. and this huge story centered on the tiny city state of singapore, and it's there in the so-called lion city that five men now stand accused of conspiring to circumvent u.s. export controls to get u.s.-made electronics into both iran and iraq. those parts are radio modules which can be used in everyday settings but which also have potential military amationpplic. for example, they're found in wireless connections between printers and computers. in this case they were used in remote detonation systems for roadside bombs just like this one in iraq. now, let me take you down that trail of this alleged international smuggling conspiracy. and we start in the u.s. the u.s. state of minnesota. the company which produces those radio modules. u.s. justice department has decided not to name that company. but it does allege that four men arrested in singapore lied to that company, saying the final
destination for those parts was a telecoms projects over in the country. in fact, singapore was just a transit point. the foreign nationals arrested this on monday are likely to be extradited to the u.s. one more person, an iranian citizen, is still at large. meantime, the justice department says the modules they imported into singapore were then sent to iran. 6,000 in all. u.s. officials are admitting they do not know what happened to most of them. but what they do know is that 16 units that they were found actually found their way into iraq and into those roadside bombs. those bombs were found unexploded between 2008 and 2010. now, the assistant attorney general for national security, of course, came out with a strongly worded statement saying that this case underscores the continuing threat posed by iranian procurement networks seeking to october u.s. technology through fraud and the
importance of safeguarding that technolo technology. the five men will face a very long list of serious charges including international smuggling, the illegal export of goods to iran as well as conspiracy to defraud the united states. really a huge, huge story that's just developing even as we speak. >> and a lot of unknown answers still. thanks, ramy. turning to the u.s., we're getting dramatic pictures into cnn of skrufls between protesters and police in oakland, california. this was the scene in the city on tuesday when police clashed with protesters participating in a local offshoot of the occupy wall street movement. police say a crowd of about 500 people refused to leave the city's town hall where they had been camping for weeks. at least 85 people were reportedly arrested across oakland throughout the day. >> reporter: well, it's a big day for europe and a big day for
a number of countries across the region. and after the break, we're going to be taking a look at italy because this is a country that has a stagnant economy and a debt that's worth no less than 120% of its total gdp. as such, investors are becoming increasingly concerned that italy could be the next victim. do stay tuned. medicare. it doesn't cover everything.
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it was long anticipated. it's supposed to be more comfortable for passengers and even cost effective. did it live up to its expectations, andrew? >> reporter: that is the question that's going to be asked around the world today, felicia. did the 787 dreamliner deliver? from my perspective, i would have to say it was a very impressive ride we had down from tokyo to hong kong today. it's a little under four hours. and when you get on the plane, certainly from a passenger perspective, notice a few things very quickly. first of all, the ceiling is actually quite a lot higher. and the windows are quite a lot bigger. now, boeing has been putting a lot of effort into telling people about how this plane which is made of a high-tech plastic reinforced with carbon fibers. it allows the plane to be light er to allow more space inside the fuselage. also they say the humidity is
higher which means it's closer to groundlike conditions, and also the pressure is higher so you don't dry out as much. that's a little difficult for me to verify, i'd have to say, felicia, but i expect a lot of people on that plane, thot onot complaint. the toilet, it's got a window in it, which is great, if you like that sort of thing, i guess. that was certainly a highlight among the passengers here. about 250 people or so. let me show you behind me. you can probably see the lions there, the welcoming lions which is part of chinese culture. the flight crew lining up to have their pictures taken. it was a nice trip down, felicia. it wasn't the same sort of party atmosphere that a lot of people told me they had when they did the a380 launch, but certainly they were enjoying themselves, and the plane from the
passengers, and i should stress that a lot of these passengers are aviation buffs. they really know their stuff. they were very, very happy with what they're experiencing today. >> i like the tidbit about the window in the loo. that's good to know in case i take a flight on a 787. andrew, let me ask you a little bit about the sort of business perspective. i read at one point that they were offering a 25% discount for those airlines that ordered the 787 early. do we have any sense yet of how many airlines have bought into the dreamliner? >> reporter: it's more than 50 so far, about 56 at last count, felicia. 821 planes are ordered. two now have been delivered to a&a. that's the airline behind me, japanese a&a, of course. so they've got a very strong order book. in fact, it's the strongest boeing has ever had in orders of a new plane. the question is is how much these airlines now are asking by
way of compensation because this project has been delayed for so long. three years, a little more than three years after this plane was supposed to have its first commercial flight, it has finally happened. so airlines have been very unhappy. there's been a couple of cancellations of orders. and obviously boeing has to pay compensation. they're not saying how much, which is no surprise, although industry analysts are sort of speculating it is in the billions of dollars. this has happened over several years. it pushes the profitability of this model back somewhat. having said that, though, the reason the airlines like it is because it is 20% less fuel thirsty. actually, you get more bang for your fuel dollar on these airlines. that's what the airlines are looking at at the moment. they like the fact that they can really whittle down their fuel costs. so that's got this big order book going. like i said, boeing certainly has to find some profits to keep
its customers happy and pay out their compensation. >> andrew, thanks for taking that first voyage for us and letting us know what it was all about. we turn our attention back to that euro zone summit everybody is paying attention to as well as european leaders meet in brussels, trying to come up with a solution to the region's debt crisis. we're obviously keeping a close eye on the stock markets. about an hour and a half into the trading day throughout europe. now london has moved slightly into the red. the dax in germany remains on the plus side, but the paris cac and zurich are still trending downward. as would be expected until we actually get some answers out of that euro zone summit taking place in brussels. let's look at how the asian stock markets closed, after gains and losses, again, it was this back-and-forth session. it was a cautiously optimistic picture at the end of the session. the nikkei ending downward ever so slightly, dragged lower after exporters were hit by the stronger yen. the hang seng pulled up into positive territory by 0.5% in the last hour. but it was the shanghai
composite that eked out the largest gain, up 0.75%. in australia, inflation slowed in the third quarter and that boosted hopes of an interest rate cut and sending the asx up by 0.35%. here in brussels, a another showdown perhaps between france and germany. france has an enormous sway over these negotiations here. and it has put forth some interesting demands, notably suggesting that the bailout fund should become a bank that can borrow from the ecb. germany, on the other hand, has said that's too fine. it seems that at a summit that took place on sunday, while french president nicolas sarkozy had to back down on his requests. the question is what does that mean to the french? let's go over to jim bittermann. he joins us live from paris to
talk about this. jim, i remember the day after the sunday summit when sarkozy was reported to have backed down on that key request. it seemed as though the newspapers were running with the headlines, merkel, 1, sarsarkoz 0. what does that mean to the french? >> reporter: i don't think so, nina. the fact is you have to be pretty into this stuff to be watching things so closely that we would make a political decision based on what's happening there in brussels. that's not to say that they're not paying attention here. the story in brussels is all over the headlines here in france. this is what "la figaro" has, europe is gambling with its future today in brussels. and i think everybody understands that it's a very big game being played in brussels that has to be won in terms of euro zone members if they're going to stand up to the kind of attacks that they've seen in various marketplaces over the last few months, various weak economies in europe.
now, one of the things that you do find out on the streets here when you talk to people, there is a sensitivity about this issue. there's an awareness about this issue, but not exactly in terms of whether it's merkel against sarkozy. more in terms of whether it's france versus the other weak links in the euro zone. and when we went out and talked to people about that, we find not a great deal of sympathy for the weak like greece. >> translator: i'm not at all pleased. i'm not going to tell you that i'm happy. these people have done whatever they want for years now. they haven't paid anything for years, and now we have to help them. i don't think that's right at all. >> we are all in a bad situation. and i think greece is really in a bad way. and it's our duty to help them because it is the european union. but i think the government and the people there have to make an effort. >> translator: when i see what's happening in greece, in spain, in portugal and in ireland, it
scares me. it really scares me. and i don't think it's right. it's not right because once again, it's the big governments that decide things for everyone, for the people, and it's always the people that pay. >> reporter: nina, just further evidence that this is playing in domestic politics, nicolas sarkozy has announced that he'll go before the french people tomorrow night on both the main channels here to talk about the euro zone crisis. nina. >> okay, jim bittermann there joining us live from paris. many thanks for that. of course, france and germany have been taking a lot of the decisions here, and therefore taking center stage in these negotiations. but other country that has been very much in focus is, of course, greece. for very different reasons. and now with the debt pile of some 1.9 trillion euros, that's about $2.5 trillion, we're talking about italy becoming perhaps the next weak man of europe just as france and germany appear to be the strong men of europe.
germany and france actually issued this country's prime minister, silvio berlusconi, with an ultimatum when they met with him sunday morning after breakfasts with the heads of the european council and european commission. the ten-year bonds yield near 5.9%. just remember with a debt pile this big, economists generally say if you get 7% for your bond yields, you're entering bailout territory. still that 5.9% is still only a fraction below the level that we saw the ecb intervene into the market and start buying italian bonds, preventing it from being the next scout, felicia. >> yeah, nina, prime minister berlusconi is under considerable pressure from his euro zone peers to reduce his country's debt and even got somewhat of a dressing down last sunday from both sarkozy and merkel to make these things happen and happen sooner rather than later, even when it comes to raising the
pension age. but he's also facing considerable pressure from within. is he going to be able to overcome that and meet the eu demands? >> yeah, let me start off by asking that question by reminding you exactly what happened when the french and german leaders were asked whether they had confidence in mr. berlusconi during a press conference here in brussels on sunday after the summit that we saw that took place three days ago. well, they laughed nervously, and they said, we have confidence in the political and economic institutions of italy. they did not say they had confidence in silvio berlusconi himself. it seems members of his own government don't have confidence in him. we've had the euro skeptic northern league show their strong hand once again. it seems as though the emergency situation that seemed to threaten the stability of the italian government at this time yesterday has been averted. the leader of the northern league, the euro skeptic party, said that he will support silvio berlusconi.
obviously the leaders here, the other european leaders, said that he really has to get italy's finances in order. as i was saying, it's a country with enormous debt, $2.5 trillion, and they've got to try to raise the pension age to 67 from 65 at the moment, in line with longer life spans in italy to try and earn more money to pay down that debt. also raise tax evasion. it stands at about 30% in italy. only greece has a higher level of tax evasion, felicia, at 37%. >> oh, those numbers are staggering. of course, that's exactly what his country men, his people, do not want to have happen. and one of his colleagues said, we're not going to raise the pension age just to please the germans. it's a tug-of-war. and you picked that buzz word we've all been talking about, lack of confidence has led to all of this uncertainty. thanks, nina. for europe's leaders, it's the ultimate diplomatic dance, keeping up the appearance of unity while trying to have things their own way. we'll explain the maneuvering in europe in just a minute.
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welcome back. live from brussels and london, you're watching "world business today." now, one of the things that will be on the agenda aside from the issues to try and tackle the euro zone debt crisis is potentially revising the treaties that govern the entire european union. i took to the streets of brussels to see whether we're talking about a longer lisbon. take a look. ♪ >> reporter: these are the first new pages of the lisbon treaty which govern the european union. at a time of unprecedented crisis, some senior officials on the bloc are advocating ripping
up some of these rules altogether. >> the most important thing is to strengthen economic convergence. and if we need treaty changes in a limited way, it is not taboo. >> reporter: as the heads of government of the 27 nations within the european union converge upon brussels to solve the euro zone crisis once and for all, well, some members are questioning whether this grand bargain really is a good deal after all. >> as i've always said, treaty change in the future may well present a good opportunity for britain. the last treaty change which we haven't even put through parliament yet, but the last treaty change which was to create the european stability mechanism, gave us the opportunity in britain to get the bailout funds for the euro zone. >> reporter: at the heart of the debate, how to stop some countries that use the euro from spending money like water.
>> what i see happening at the moment is this emergence of a divide between the euro zone and the new yeuro zone. whether it's the euro zone being faster or the other group being faster, i'm not sure. but even changes in the government structure point in that direction. >> when we designed the common currency, we made very important decisions, namely in terms of monetary union. the central braank, for instanc. but the reality is we need to advance in a more integrated way of coordinating our policies. ♪ >> reporter: as the recovery falters and the fate of the euro hangs in the balance, europe's leaders are trying to present a united front. the irony is, though, they've
never appeared more divided. so the pressure is on for those 27 heads of government to try and show a united front here in a few hours' time when they converge upon brussels. but as you saw there, already we're seeing differences emerging between the 17 of toes 27 that have the common currency and the other ten that don't. i spoke to one of those ten, the danish prime minister. >> none of us outside the euro have been asked to contribute to the esfs. and i think that's a good solution. we have to understand that the euro members have a particular task and obligations in this situation, but we also have tasks and obligations outside the euro. and i completely understand that the euro members have to take certain decisions together. but some decisions involve the 27, and we have to be part of those as well. >> so there you have it. more or less echoing in a more
diplomatic way david cameron's words. perhaps we could see more cracks emerging today. that is the big question, felicia. >> and we shall see. when "world business today" continues, changes in latitude, changes in attitude. how the press in each of the euro zone's countries use the debt crisis. stay with cnn. ther. 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. ♪ at dow, we're constantly searching for how to use our fundamental knowledge of chemistry to solve these difficult problems. science is definitive. there is a right answer out there.
strong gain in tuesday's session, up another $14 to stand at $1715 but well off highs seen earlier this year. welcome back. live from brussels and london, you're watching "world business today." let's take a check on the european stock markets again. we've seen very little movement in the opening hours of trade. it's been slight movements back and forth, not really knowing what the headlines will be coming out of brussels until later today when we'll hopefully hear from some of the leaders having come to some sort of conclusion. very little movement except in zurich. and on the asian stock markets, there were gains and losses throughout the day. not volatile but certainly unconfirmed movements. cautiously optimistic mood at the close. the nikkei was pulled down after exporters were hit by the strength of the yen. the hang seng pulled up into positive territory in the last hour. but it was the shanghai composite that saw the largest gain of the day. and in australia, inflation slowed in the third quarter. and that boosted hopes of an interest rate cut and sending
the s&p, asx higher. while investors have been bracing for the summit in brussels, the international press has also been feverishly counting down to wednesday. nina, you've been gauging the reaction in some of the european newspapers. i can't wait to see what some of these headlines are saying all across the european continent. >> reporter: well, thankfully here at the european council building, they have a very comprehensive choice of european newspapers, as you'd expect, felicia. and the thing you can certainly say is that this summit is emblazoned across the front pages of all of these newspapers, and it means something different to everybody. this is the one jim bittermann showed you earlier on. it is "le figaro." "europe is playing fast and loose at the summit today." it also has merkel and sarkozy on the front page. same newspaper as i was saying just the other day had merkel, 1, sarkozy, 0, after he conceded
on how to raise funds for the esfs. here are the "financial times," focusing on italy and how the coalition of silvio berlusconi is fighting for its life after the party threatened to withdraw its support from the italian prime minister because of concessions he'd have to make here when he was cornered by merkel and sarkozy at the meeting in brussels on sunday. i also want to show you what's going on in italy and how the italians view things. this is "la repubblica which isn't as flattering about berlusconi. it says the government has reached a mini-agreement to save itself, but we won't have any pensions when we get old. and also sarkozy says the situation in italy is explosive. that's a concern that italy may become the next weak man of the euro zone to face a bailout like greece. the final one i want to show you is this one.
it's the german business newspaper called "handelsblatt." it says it's the day of broken promises. this summit really means something different to every single country you talk to, felicia, or every single country that's covering it. and that's also because the details of the plan that we saw that we heard that they say they're working on are so foggy, at best. that's why we're seeing different headlines, that everybody has something at stake, felicia. >> no question about it. as we know, the devil is in the details, nina. don't forget, if you want to comment on the eu summit or any of the stories in the show, get in touch with the team on our facebook page. just go to facebook.com/cnnwbt and let us know your thoughts. that's it for this edition of "world business today." i'm felicia taylor in london. >> and i'm nina dos santos at brussels. c this. n is the world's news leader. do stay tuned because there will be plenty more news after the break. if you've just signed up for medicare or will soon,
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