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tv   World Business Today  CNN  January 26, 2012 4:00am-5:00am EST

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role for them and i'm very, very proud of my union. research in motion. r.i.m. has experienced a >> alec, it's been a great pleasure. spectacular fall from grace. thank you very much much indeed. you can see it's worth a little >> my thanks to you, piers. bit less than $8.5 billion. >> that's all tonight. >> amazing. these companies are bigger than whole countries. speaking of apple that you mentioned there, be wear of the so called ipad shoulder. researchers say tablet computers can encourage pour posture as she sits up straight. . a pairntly using an ipad on your i'm zain very gene at cnn in london. here are the top stories. two aid workers kidnapped in lap means you look down more. somalia three months ago are that can lead to aching shoulders and neck injuries. free and waiting to be reunited. so the people who think about u.s. special forces raided the these things at the harvard school of public health suggest you prop it up on a table, kidnappers compound killing the preferably in an elevated hostages and freeing jessica position. is it just me or is that just buchanan and poul thisted. turning a tablet computer back emergency officials are into a desktop p.c. sounds awfully familiar. looking in a brazil collapsed anyway, you have been warned. building. they don't know why the adjacent >> certainly heard of tennis high rises crumbled. elbow but never ipad shoulder. one person heard a cracking there you go.
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sound before they fell. another sporting injury for french police tell cnn people who like to sit on the couch and read things on their ipad perhaps. he's had two olympic gold they've arrested the founder of the breast implant company. medals around his neck, but as our affiliate france 2 tv said he heads towards the london this man was arrested around the games, does sebastian coe have same time. an albatross around his neck. p.i.p. became the focus of an international health scare over the implants. we'll speak to him live when those are the top stories from cnn, the world's news leader. "world business" returns. i'm zain verjee and "world 98% saw improved skin. business today" starts now. does your makeup do that? neutrogena® cosmetics. hello, and a very warm welcome to "world business today." we're in hong kong. >> i'm nina dos santos at cnn london. >> i'm john at the world economic forum in davos, switzerland. on the markets today they take the rough with the smooth as america's central bank holds
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steady on interest rates. this signals a long road towards recovery. >> in europe angelo merkel says there's only so much germany can do to save the single currency. >> and online sharing isn't always caring for the google users upset about that company's ♪ does your makeup do that? courtesy policies. you want to save money on car insurance? start on tuesday barack no problem. obama pro krams that america it you want to save money on rv insurance? seemed was on amend but on wednesday, the federal reserve, no problem. you want to save money on motorcycle insurance? the company's central bank, claimed that it was all but not no problem. on amend. you want to find a place to park all these things? the u.s. central bank vowed to fuggedaboud it. keep the interest rates the same this is new york. through 2014. hey little guy, wake up! for the first time it set a aw, come off it mate! geico. cause for the inflation market saving people money on more than just car insurance. at 2%. that's good news poor borrowers. the feds long-term plan is unusual but chairman ben bernanke says that it's a move designed to avoid destabilizing
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surprises. he says that while unemployment should continue to fall, wide economic growth will be slower than expected. >> stronger economic recovery, to help ensure that inflation over time is at levels consistent with our statutory mandate, the committee will keep the same highly accommodatetive stance. we continued to keep it at 0 to .25%. we think it will warrant exepgsly low levels for the federal funds late until at least 2014. ben bernanke three. let's get more detail. the feds message appears to be slowly but surely. while there's still no word on a new round of kwaun at thattive easing or qe 3, he's keeping all but not your wrinkles? options open to ensure that he neutrogena® rapid wrinkle repair. doesn't have to lower the costs yet again. its retinol formula let's just have a look at how visibly reduces wrinkles things are looking right now. in just one week. why wait if you don't have to. the imf rec cons the u.s.
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neutrogena®. economy grew by 1.8% in 2011. we'll get a better idea when the figures are released on friday. the fed predicts this growth will rise gradually to as high as 2.7% this year and 3.2% next year and 4% then in 2014. the problem, though, is that the central bank doesn't think even this constitutes a full recovery. and there's another catch. that's the fed's tactics don't . welcome back to "world actually tackle in the current business today." live on cnn. >> let's just recap our top economic climate many individuals and businesses story this thursday for you. simply can't get loans. investors appear cautiously there's not enough money to go around. optimistic after the u.s. federal reserve promises to keep rates have limited meaning interest rates low through 2014. ben bernanke targeted a 2% inflation rate during that anyway. nina? period in the hope of stimulating growth, but he still warned that progress will be slower than originally forecast. this is how the fed ex pekts >> bernanke's opening statement things to pan out over the was enough to send the markets coming years from an imf into positive territory. prediction of just 1.8% growth
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some traders sounded a familiar in 2014 -- sorry, 2011. note of caution here. >> we'll run either way with the but 2014's forecast is 4%. story, right, and say it's great. the fed is going to be there. that is dependent on increased on the other hand, you're going to say things aren't as good as borrowing when many people still don't qualify. he hasn't written off the the way the fed says. it opens the door for the fed to possibility of pumping more help stimulate the economy more. money into the economy. that's the overriding factor. here's felecia taylor with a we've rallied 100 points. look at what the markets made. we were down 50, we're up 60. >> the u.s. federal reserve was the market likes that. front and center wednesday after do i necessarily agree with it? wrapping up its latest policy it's another manufactured rally. meeting. the central bank said short term it's frustrating and confusing interest rates are expected to for investors. the truth; it's confusing for stay at historic lows until at the market. least late 2014. let's take a look at how that's longer than previously those markets are fairing in light of what that trader was indicated. stocks did a u turn climbing saying. while it's confusing, and it's into positive territory. also very difficult, you've go to remember, to figure out how policy makers gave details on to play a market when you know where they individually see rates going forward. that interest rates are going to while many agree with keeping be steady at the historic lows them near zero until 2014, half for another three years to come of the fed members think rates or two years according to ben should be at 1% or higher once bernanke's statement. the year is underway. as you can see, these markets the central bank boosted its mainly positive taking the cues
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from the rallies that we saw on jobs outlook but lowered the forecast for economic growth. wall street but these gains aren't particularly substantial. these three markets, with the the dow closed was up .66%. exception of switzerland, apple shares jumped more than 6% they're only up four-tenths of on the day to $446 a share. 1%. the debt crisis has engulfed it was wall street's first europe so long is still chance to react to the company's lingering in investors' minds as blockbuster earnings released after the close of trade on that impulse hasn't been broken tuesday. the gains helped push apple past exxonmobile as the world's most from private creditors to greece and the government. valuable company. another busy day ahead on we had angela merkel making the thursday. investors will receive earnings opening comments at the world on durable goods, home sales. economic forum on wednesday, and she pleaded with the markets to we have results from at&t, give them the space to tackle caterpillar, 3 m and starbucks. the problems at hand. that's a wrap of the day on wall in light of those markets let's street. >> so that's how wall street talk about another debt auction we have on the cards today. faired yesterday. european stocks are fairing often these debt auctions are a barometer of how things are today like this. they're still holding on to going. italy will be doing the same their positive momentum with the later. >> wow, nina. angelo merkel having to plead. things are not looking good. exception of the zur rick smi. so far as the markets go in asia, things were looking good
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much earlier in the session. the heaviest gains are coming they turned mix. the hang seng doing fairly well. from the cataract 40 which is this pickup here in asia has been off the back of what we saw up .88%. in the u.s. that decision on keeping those >> nina, here in asia the stock interest rates low right through the next couple of years. some of these markets were still markets have finished mainly higher this thursday. shut for the beginning of the china, taiwan, australia, they year. it was australia day. have all been closed for national holidays. india is closed for public india also closed. let's have a look at how the holiday. hong kong doing well. leading indices ended the trading resuming here. closing high. session. now there's this optimism around one of the thing that was about the fed's projection of interesting was oil prices moved these interest rates. above $100 a barrel on there are also some major market movers to speak of in asia. wednesday. we saw z knock listed in hong a bounce in property stocks following the fed's announcement kong up. some steam came off the japanese on interest rates so closely market. the nikkei 225 pulled back. you've got the likes of japanese linked. tepco is up. we all know the problems that electronics maker n.e.c. tepco has been having at that planning to cut 2,000 jobs. plant, the nuclear plant over in
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that gives you an idea as to the japan. mood. we had some yen strength. that pulled back some of the major exporters in japan. that explaining that red so far >> the annual world economic in that downwards arrow for the forum is currently well underway. the topic on everybody's lips is the european debt crisis. nikkei. the company employs 113,000 that's a problem that still remains unresolved from the last people globally. time that the world's leaders that coming after the close and business chiefs gathered in doesn't set things up very well for the coming session. davos, switzerland, a year ago. at the heart of that crisis is, stay with us here on "world of course, greece. business today." there's going to be much more after the break. overall the mood appears to be 0ñ@ñfñ [ male announcer ] this was how my day began. one of doom and gloom, but germany is still being seen by many as a leading light. angelo merkel attempted to lead the charge. on wednesday, the day after the international monetary fund, decided to lower its outlook for a little bird told me about a band... the global economy, she opened the proceedings with a warning ♪ an old man shared some fish stories... that the block's richest member would not be making any promises ♪ that it says it couldn't be oooh, my turn. ♪ she was in paris, but we talked for hours... keeping. >> reporter: angela merkel told europe to stop diluting itself. everyone else buzzed about the band. there's a wireless mind inside all of us. it said reducing debt levels is
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so, where to next? the only way to maintain ♪ credibility. >> translator: the real message of the fiscal contract that we're trying to agree on right now is that each and everyone is to introduced a cap on debts, so called debt bank, and it's incorporated in the constitution ormon tore this whether this is actually done. so we are no longer using any will be giving away passafree copies so, where to next? of the alcoholism & addiction cure. excuses or we are no longer to get yours, go to ssagesmalibubook.com. diluting ourselves or diluting others. we're opting for this and this is obvious because otherwise we'll lose credibility. >> reporter: channels lor merkel said although germany is ready and able to help, it won't res r risk everything to deliver against that promise. >> the trouble is the longer the problem persists, the more everyone suffers.
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we spoke to steven king, a chief economist, who had a warning for the channels lor. >> they want to be faced withholding a bill for bailing out the eurozone. if it's not sorted out, then germany's economy will suffer. time is running out because ultimately if spain, portugal, italy, etc. will really suffer. >> reporter: were you surprised that angela merkel actually said that germany couldn't make promises that she couldn't keep? there's a view she's not doing enough to start with, never mind going all the way? >> i think it's unlikely she's going to make a major announcement in davos. she has to be answerable to germany not necessarily the international community. what i think is important is if you have a problem coming through southern europe, it will spread through northern europe. germany thinks it's immune
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without having change during the course of the year. >> reporter: once again, steven king with richard quest. much of the talk here is about the future of the eurozone. one person said it's much to do >> reporter: live from london, with not very much. hong kong, and davos, may not be the general consensus switzerla in davos. switzerland. this is "world business today" a breakup of the eurozone is the on cnn. >> switzerland may generally get to sit out the worst of the single most overrated happening european debt debacle, but it's in the middle of the problem in 2012. geographically speaking. i'm joined by our rash sha's it's in the heart, of course, on talks on the solution this week. president in davos. business brains have been let's cover the concept of why gathering as john was just saying in davos and cnn is right everybody here in davos is so there among them. worried about the eurozone. >> of course it is. now it's the age old question could you have greece default with you not fall out of the and it just won't go away in euro? isn't that still the likely probability? davos this year. >> i think that's very clear, should governments scrimp or but there's been the sense and a should they spend in a time of lot of ceos have been saying on economic crisis? cnn's richard quest has found a novel way to figure out whether the sideline the euro will fall the leaders are ahead of the apart. we can't make the kind of bets curve or behind it. with all this money that we have sitting around because the worst money man nurio rabini offered case scenario in europe could
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transpire. i think that's a massively overstated risk. politically there's no mechanism for it and no one supports it suggestions that are in keeping. either in the periphery or in >> reporter: some are ahead of the curve. the core never mind all the fiscal austerity at the time there is a recession, the masses of european bureaucrats. eurozone means they have the they are going to maintain a totally wrong ways. commitment to the core of consolidated economy. >> it's interesting because they're going into a bad area. merkel tried to strike two there is already a recession. audiences last night speaking to the ceos we can build confidence instead of recovering the and credibility. also speaking to germans saying, eurozone, we'll go into a deep look, we have to deal with recession to cause a depression. unemployment and we can't spend >> it might not qualify as a all of our savings trying to rescue the euro. recession, but they're showing that's hard to strike a balance. signs of shrinking. >> first of all the germans are output declined by two-tenths of showing they are willing to a percent suggesting as he was compromise however incrementally on some core issues. saying that austerity is not, it the willingness to support seems, paying off. cnn's jim bolden talked to the fiscal union sounds great as a headline term but the reality is u.k.'s finance minister. he says he believes that more they're going to accept much capital spending is required to less stripping. the actual fiscal union stimulate britain's economy. agreement is going to look a lot he also says that eurozone softer when everyone's gone leaders need to shoulder
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through it than what the germans responsibility. have originally talked about. >> my worry is that you're just they've been willing to support going to see flat lining for the european central bank to buy another year. remember, we're still way below up a lot of paper. in terms ever output what we're the private sectors haven't been willing to. producing back in 2007. they haven't made a big story about it, but it's been as i say, when you consider the happening. importance of the eurozone not i'm starting to hear some just to us but to other parts of cautious i wouldn't call it the world as well, as long as optimism, but an understanding that paralysis of decision making goes on, then the greater that the worst isn't going to happen on europe. the risk that we do go into a i'm absolutely hearing it here. recession and that we may stay i'm hearing it after merkel's there for longer than we would otherwise do. speech, a bunch of serious >> reporter: there's one respect in which the u.k. is spending european players that understand big and expecting a substantial this is not a disaster. return on its investment. >> reporter: before we let you go we want to know if the rest that's the summer olympic games of the world can grow with the eurozone crisis taking place. in london. i have sebastian coe who did an decoupling or not from the emerging markets in the event this morning. developed world. are they still shackled in your i'm not sure if the jacket is heavy enough for all the cold. view? are they tied to western europe nice to have you. because it's such a large market >> thank you. and the united states or have glad to be here. >> reporter: we're quite they broken free, can drive surprised by looking at the gdp global growth in the future? numbers for the fourth quarter >> they're in the process of because of all of the spending breaking free. they want to break free but if that's taking place around
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you look at what chinese growth london that the growth is not better. is still all about, the state what's your perspective? has had to step in. >> actually, you come out here it's not undermently rebalanced. so the kinds of things they have to trade growth figures. if you look at the 30,000 people to do to grow because of who have been directly or european weakness and even american softness is indirectly employed on working on the park, you would ask the unsustainable. so in that regard they're still question in the given economic very much shack zblld bremer climate, what would they be doing if they weren't working on goes with shackled. that? >> proven. the 6 billion pounds worth of contracts that have been let, >> we saw his growth come down. 98% of them to greece businesses, i know the impact that's ian bremer. we'll take a short break and that some of that business has had on really hard-pressed come back and focus on russia and its view of the euro crisis. communities, often safeguarding certainly is a frightening jobs, in some very challenged crime. sectors of the economy. after all, bank robbers stole >> reporter: for our viewers $43 million in one year. this is east london, an area that was lacking foreign direct but identity thieves? try 37 billion! investment. the after games -- >> it is east london. a lot of those business and guess how identity thieves are getting some of that money. contracts have gone around the united kingdom. by taking over our bank the steel in the olympic stadium accounts. they may not even need your is a northwest business. social security number anymore. all an identity thief may need when you procure 27 bridges on are a couple of simple pieces of the olympic park, that's kept information, like your mother's maiden name or the city you were business on the welsh english born in, and they could add border in business.
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the impact has actually been an their name onto your bank accounts in order to make your money their money. economic godsend in many you need help. challenged communities. >> reporter: at the end of the day after the games what's the [whoosh, clang] you need lifelock-- the only tally in terms of the boost to the gdp. identity protection company that do you measure it by london gdp now monitors bank accounts for takeover fraud. or u.k. gdp to be clear? lifelock is the proactive identity protection company with an early warning alert >> you can measure it across both of those areas. system that is state of the art. it is generally thought that the when we detect any suspected contribution to the gdp of london over the cycle of the breaches of your personal information within our network, seven-year period of delivery we contact you right away, could be between 5 and 7%. that's a significant figure. before the damage is done. lifelock has the most of course, when you're making comprehensive identity protection available. those final adjustments, you no one can stop all identity have to look at some of the theft-- that's why lifelock things that are also of legacy offers you peace of mind, and value as well. you get our million dollar total we know that there are projects service guarantee. that are taking place, there are >> having your identity stolen upgrades in transport that feels like you've been totally violated. probably would not have taken you go around looking over your place had we not got the games. shoulder. >> in fact, that's the it's almost as if someone has broken into your home. counterargument. was it the right time for london >> announcer: don't spend another day without lifelock. to secure the games because of call now! all the spending and you're try lifelock's service risk-free going to have a legacy where for 60 days. lifelock is the only identity perhaps it was overspending? this has happened to other big protection company that now cities. monitors bank accounts for some have benefitted hugely. takeover fraud. >> i think that actually if i'm
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no one provides more comprehensive identity being honest, if we had known protection than lifelock. where the economy was going in if you're not convinced after 60 days, simply notify lifelock singapore when we were bidding and you won't pay. in 2000 and 2005, i think we and to keep your documents out of the wrong hands, we'll even add this personal shredder-- would recognize this has been an a $29 value-- absolutely free even more important project for with your enrollment. the british economy. don't wait another minute. if you look at the jobs being call now or go to lifelock.com. created, if you look at the jobs we've created in the burrows, this has been a really important lifelock service guarantee cannot be offered to residents life line. of new york. >> reporter: nice to have you on the program. sebastian coe. he's running the 2012 london olympics. nina? >> yeah, john, i want to go back to one of the questions that you've been asking a number of your guests on "world business today", also on "global exchange" your show which focuses on the emerging markets. a lot of people have been saying two or three years ago that the myth of decoupling have been debunked. doesn't seem your guests are buying that one two years later. >> reporter: no. in fact, this is a surprising outcome. having a huge debate in the
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bunker as we call it here with richard quest about how fast the emerging markets can recover. what i think has changed clearly, nina, is the fact that they git hit for six months, perhaps even a year but the downgrade on the growth, whether it's russia, brazil, south africa is not as severe as it would have been in previous crises. i was surprised if we can take a shot at the board here. we feel very shackled by the eurozone in particular. south african finance minister feels he's very tied to it. bremer suggested the same. russia, the deputy economic investor says the same. business today." latin america feels because of we continue to cover the world the trade with china we're not economic forum in davos, overly dependent on the u.s. or switzerland. it's not just those inside the north america. we have great links now with china particularly for natural eurozone or europe that are resources. feeling the effects of the debt it's an evolving story. crisis. last month russia offered up to the damage on the downside is much more limited than it would have been in cycles, say, ten 20 billion dollars of loans to help stabilize the eurozone. years ago. >> so overwhelmingly speaking 40% of russia's total foreign they tend to think that they're
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still shackled together but it currency reserve is held in depentsds where in the world you come from because as you say euros, you can see why moscow is so ready to cough up to help some people in latin america are saying they have broken free. save the single currency block. many thanks for that insight. writing in the financial times >> i like it, nina. this week the russian president john's literally gone back to said the euro was a preeminent the drawing board. i guess that's what they're concern for him in this country. having to do in davos, he also said that europe is particularly on europe. russia's biggest trading finally, chinese people have a partner. it accounts for half of foreign custom in the lunar luck. trade and three-quarters of the they have a wish for prosperity foreign direct investments. you can see why russia is just in the year ahead. for one man that saying has an so keen to see this situation extra special meaning. this jockey and his horse won sorted out. >> reporter: looks like the bond is stlil between russia and their first race in 15 starts on europe, nina. wednesday here in hong kong. i'm joined in davos by the if that's not enough of an omen, the jockey was born in 1976, director of economics. also a year of the dragon like we talked to him last year. the one that's just begun. might be a safe option for a bet good to see you again. >> good to see you. in the future. >> nina laid out the outlook of what a great one. what a great week he's had. what the president was talking that's about it from us. about here because of the link to the eurozone. >> i'm nineteen that dos santos
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do you get the sense here, i know you finished up with a in london. we'll see you a little later on briefing on a panel session about russia, do you get the for the opening bell on wall sense the bottom has been street in the second edition of "world business today." reached? can you walk away, fly back to moscow, and say i think the worst is over? -- captions by vitac -- www.vitac.com do you report back to the 6 president and say i'm not sure. >> let me start with your figures. we ended up, russian economy, last year with a growth of 4.2% which is not bad. we ended up with the lowest inflation ever in my country of 6%. the lowest gdp around 10%. our economy looks pretty good. we definitely are tied to the eurozone because europe is our main partner in two perspectives, both trade and investment. as far as our full costs are concerned, i can't be too optimistic as i wish to be. >> what are you saying for 2012? i know the imf had concern about a downgrade. >> our forecast was 3.7%.
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imf came out with 3.3%. this kind of difference doesn't make much sense. >> the other thing i wanted to talk to you about, how much foreign direct investment is being withheld because i know you don't have clarity of putin 2.0. also the protests that we saw at the end of the year, people woke up and said i didn't realize it. it almost seems like arab spring ii. how would you explain what we see on the ground? >> in russia it's a completely different story. it's the active middle class which has grown greatly. no one predicted that growth. we now have almost 30% of people which are middle class. >> they're not happy though, you know this? >> they are not happy. >> educated population. >> absolutely. >> what's the problem? what's the disconnect here? >> the problem is that we grow too fast. we grow too fast in economy, democracy. we learn.
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what is going now, our political system is getting more mature, you know. that's what's going on. just to remind you, comparing to the soviet union 20 years ago, it's a completely different country with almost 0 fdi ratio. now we have you know almost 300 million of fdi. coming up with the figures again, even taking into account this political situation, the fourth quarter shows the growth of fdi of 20% and we ended out this year of 52 billion of fdi which makes us in top seven countries, i believe, if we take the award. >> that's part of the builtout going on here because of the world cup that's going to be taking place. i want you to weigh in if you can come over here. we had this discussion whether the emerging markets, you're one of the largest emerging markets and growing right now, lower than expected. you admit you're linked to the eurozone. do you still feel you're overly tied to the developed world, g-7
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economies or has russian broken free and can trade with china, africa? >> russia's position for centuries has been that we trade with everybody, but of course i believe that every country now is linked to the situation in the united states because it's the main importer of everything in the economy, to the eurozone because it's a very large economy. i would say that we are all tied to all countries. >> globalization has made you still shackled is what you're suggesting here. >> just to remind you, 2 trillion dollar u.s. economy. number 6 based on purchase parity. >> when would you say you're broken free? another 10 years you won't be as dependent on the united states and europe? >> let's see. >> by then you should be prime minister. we're going to take a short break. we'll be up with more here from "world business today" in davos. thanks. a little bird told me about a band... ♪
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an old man shared some fish stories... ♪ oooh, my turn. ♪ she was in paris, but we talked for hours... everyone else buzzed about the band. there's a wireless mind inside all of us. so, where to next? ♪ 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. if you're already on or eligible for medicare, call now to find out how an aarp... we'll be up with more here from
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welcome back to "world business today." we're live here on cnn. >> it's been quite a week of wild weather for australia with a tropical cyclone, monsoon rains and major flooding occurring there. let's go over to the international weather center to explain all. >> good morning to you, nina. it's interesting because all of this culminating now on australia day being today across this part of the world.
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we know back in 1788 on this date across sydney cove when the first landing fleet was made. line of storms. one of the prominent features right there on the corner of your screen off the northwest coast of australia. that's the next tropical see clone in line. this is the time of year you begin to see these storms. tropical cyclone iggy going to approach this weekend. winds close in on 160 kilometers. this is a prominent tourist destination, exmouth. up to 6,000 people could visit this destination at any time. a lot of precautions being made as that system begins to approach the region. as nina was just telling you, more moisture exiting on to portions of carpentiera. heavy winds, power outages, all
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associated with this storm system over the next 24 to 48 hours. quickly i want to take you out into europe. good start here to thursday morning if you're a fan of a few rum bls of a few storms. again, on and off showers. the main concern with this going to be gusty conditions. and if you've got travel plans out of dublin, going to see moderate delays. amsterdam will see a few problems with upwards of an hour delay. all the way out to the southeastern portion of europe we do have yet another storm system. heavy snowfall in turkey, ukraine. we know delays around sofie are going to be 2 plus hours the expected delays on thursday with the storm system exiting the region. >> thank you. good to see you as always. >> we just want to update you on a story out of brazil.
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at least four people are injured after two buildings collapsed in a busy commercial and financial area of rio. we're told that 11 people are missing. it's not clear what caused the two buildings to collapse. there are reports that an explosion was heard beforehand. authorities aren't ruling out the possibility of a gas leak explosion. you find out more online. just go to cnn.com/international. nina? >> coming up next on "world business today", from lunch appointments to traffic jams, google says its new privacy policy will help people. they plan to investigate the privacy changes. more ahead.
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hi. we're in hong kong. >> i'm nina dos santos in london. welcome back. you're watching "world business today." within the past hour french police have confirmed to cnn that the founder of the breast implant company p.i.p. has been arrested. jim bittermann joins us live from france with more on this developing story. jim, what's the latest you can tell us? >> reporter: basically that the splis swept in and arrested jooun claude mass, as well as the president of his company, which was responsible for selling tens of thousands of breast implants worldwide, which have been deemed to be defective. which health authorities have urged people to have removed. and as a consequence he's being investigated by police. they picked up materials from
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his home searching his home even as we speak. they're trying to find evidence that would be sufficient to bring charges against him. it's in connection with an investigation for involuntary manslaughter and involuntary injury. he's already under investigation. he hasn't been charged yet, but there's a great suspicion that he will be charged soon for fraud because of the fact that he was using defective materials in constructing these breast implants, nina. >> okay. jim bit ter man joining us live from paris with more on news that the man behind that company has been arrested now in france. many thanks for that, jim. now google's latest privacy changes are attracting a lot of publicity, but the news isn't all positive. france and other protection agencies says they'll
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investigate the company's plans to share user data across its company. >> reporter: goingle plans to effect another privacy statement. they're going to share information all in one database. you won't have the option of opting out. >> youtube should not turn into you track. >> reporter: representative edward marky is a co-chair of the congressional privacy caucus. he says consumers should have the right to decide if they want information shared among google platforms. >> this is outrageous. googling is like oxygen to kids and teenagers. what google is saying is they are going to take the private information of kids and teens, provide no privacy protection. >> reporter: google says instead of having more than 60 different privacy policies for google products, there will be only one. the company says it's to better tailor search queries based on your interest. if you put in the word pink the
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search engine will know if you're talking the color pink or the singer. google on its website saying, quote, our new policy reflects our desire to create a simple product experience that does what you need when you want it to. >> reporter: but aggregating the information would allow for something else. for google to better target ads. >> reporter: google keeps tabs on a lot of your information. if you go to google.com/dashboard. you can pull up your web history. this is a recent search i did for alma whiten. you can look up aps, stores, and they use it to target ads. >> reporter: ken fisher is with the online magazine. >> it helps to remember that google is the largest advertising agency. they are the most successful advertising company and they are also in an arms race against facebook but against other advertisers as well.
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this is really about revenues generated from advertising. >> reporter: google declined an on camera interview but they're making if clear it will not sell private information to third parties that, this is just sharing information among google's various sites. but that information could be used for google ads. i asked a spokesperson why not just allow people to opt out? she said it would be too difficult to have two separate privacy policies. lisa sylvester, cnn, washington. >> former tech titan apple has overtaken exxonmobile as the world's most valuable publicly traded company. its stock price jumped by more than 6% on wall street on wednesday pushing the company's total market value or capitalization to just shy of $420 billion. the exact figure is 419. that means it's $1 billion more than the perennial champ is exxon. the share price followed record earnings. another talking point is just as
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interesting when it comes to apple and we're talking about its bank balance. this is because apple revealed it's sitting on a pot worth just shy of $100 billion. it has a whopping $97.6 billion in the bank. that's a serious pot of cash. and it's of course well in excess of the total market value of a number of the company's rivalries. let's take a look at one of the most successful players in this field, amazon. it's the maker of the kindle ereader. it has a cap of $85.4 billion. if we take a look at dell next down the line, it's worth about a third of that. also we should mention hewlett-packard is worth about half of what apple actually has just in the bank vaults. then of course there's know key a and the blackberry maker
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