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tv   World Business Today  CNN  March 1, 2012 4:00am-5:00am EST

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good morning from cnn london, i'm nina dos santos. good afternoon from cnn hong kong, i'm manisha tank. north korea plans to put its nuclear ambitions on ice in return for food aid for the country's starving. >> give greece a chance. that's the message from businessmen who say the taxpayers have been unfairly labeled as lazy. >> and the criminaled cruise line is pushed -- finally pulled into port. we're live in the seychelles for that. first up, let's get straight to
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the european stock market action. these markets have been open for the best part of just over an hour. this is how the indices are performing. a little die cot many between the two eurozone markets. the cac is trading down about .25%. ftse 100 up. what has got their attention. ben bernanke's comments are weighing heavily on sentiment not just across europe but also across the world markets as well. this is because he's offered a down beat assessment of the recovery. it is one of the things that has these markets pausing for the moment. european leaders and finance ministers are also in brussels today. over the next two days to come. what they'll be doing is hosting a series of summits designed to strengthen the region's finances and also to prevent another
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greece-like situation from happening again in the region. speaking of europe, yesterday we saw the ecb providing about $712 billion worth of cheap loans to the banks across the region. that has been moving the markets for the best part of two days. that operation was slightly more than the last time they engaged in this kind of operation. the last time it was $652 billion in total. 0 banks took up these kind of loans, manisha. >> let's go back to what you were talking about, ben bernanke. we had the testimony from ben bernanke affecting these asian markets, the hang seng down 1.3%, the asx in sydney down 1%. a more muted look at the markets in asia. but we're feeling the impact about what wasn't said about the u.s. economy. on the plus side, we did have some news which was positive,
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but not enough to over come this general negative sentiment. the purchasing manager's index there, the pmi rose to 51 in february from 50.5 the previous month, a reminder that any score above 50 is indicating expansion in that sector, manufacturing being key for china. also key for india and manufacturing there continued to grow in february, although at a slightly slower pace than in january. the country's pmi eased to 56.6 from 57.5 in january, slowing, but still in healthy territory. so that at least is something to hold on to, nina. >> staying with asia, china says it welcomes plans by north korea suspend its nuclear tests and uranium enrichment program. they agreed to a moratorium on wednesday. the total aid pack they'll receive includes about 240,000 metric tons of nutritional
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assistance. this includes beans, vegetable oils and also ready-to-eat foods. the u.s. says it's the first mod test test. pyongyang agreed to a similar nuclear ban in six-party talks that took place back in 205. but the end of 2009 that deal crumbled after they continued to conduct nuclear tests. paula joins us live from seoul. yesterday afternoon everybody thought this was extremely important. when you put it into context with what happened in 2005 and 2009, perhaps not. >> reporter: nina, i don't think anyone is celebrating too much at this point just because of the history of these peace talks and the history of the talks with north korea. they have collapsed a number of times and north korea has gone back on its word a number of
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times. in that respect, even though there's optimism, it's a very cautious optimism at this point. for united states, it's certainly a good sign. it's certainly the first step. what they want to see is the six-party talks starting once again. this is the talks between north and south korea and the u.s., china, japan and russia. the wideer discussions on the denuclearization of north korea. these collapsed back in 2009 when north korea walked away from these talks. this is what the u.s. would like. certainly in an election year the united states is going to be hand pi they have a guarantee from north korea that they will be putting their nuclear plans on hold for this point. of course, from a north korean point of view, they have this food aid they so desperately need, 20,000 tons per month for the next 12 months according to the u.s. they will be very specific, though. it will be targeted for babies,
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for children under the age of 5 and also pregnant women. there was, of course, a fooer that if it would be corn and rice that that could be taken for the military or the leadership itself. nina? >> paula, how significant is the timing of all this? it comes just a couple months after the death of kim jong-il and since his third son kim junk unon took over. >> reporter: this plan is believed to be organized back in december with kim jong-il at the help. of course is son is at the helm now. there is some continuity between the two leaders and things are picking up where they left off with kim jong-il. south korean civilians on the street are a little more wary as to whether or not this will work. >> translator: regarding the dialogue between the united
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states and north korea, i like the denuclearization over the pen anyone la. many are surviving. it's good that they will provide food. >> translator: north korea provided denuclearization in the past but changed their mind. they destroyed a reactor but it turned out to be a show. we better not trust this agreement as we think about their behavior in the past. >> reporter: nina, this is considered just the first step. >> paula hancocks in seoul. thanks for that. just ahead on "world business today," what's global slowdown. advertising giant wpp posts strong fourth quarter results. the costa allegra makes it to port. deadly storms battling parts of the united states. we'll tell you if there's more
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welcome back. you're watching "world business today" live on cnn. let's turn our attention towards wall street now. the major indices were slightly lower by the time the closing bell rang. the dow jones industrial average fell by .4% when it comes to technology, that dropped by 2/3 of 1%. the markets look set to continue that kind of downward momentum when trading gets underway on thursday with futures on all three main indices currently in negative territory for the moment. on wednesday, investors were weighing stronger than expected gdp data against testimony from fastball chairman ben bernanke. he offered a sober assessment of the strength of the u.s. recovery appearing before the
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house financial services committee. he described the united states as far from normal and said the pace of growth has been uneven. >> the fundamentals that support spending continue to be weak. real household income and wealth were flat in 2011. access to credit remains restricted for many potential borrowers. consumer sentiment which dropped sharply last summer has since rebounded by remains relatively low. >> for traders it was more about what he didn't say rather than what he did say. bernanke's address dashed any hopes of additional stimulus being provided to the world's biggest economy. in return, gold prices fell by a hefty 5% in total. that was the biggest one-day decline in about three years. as you ski on the spot prices we're showing you gold is currently back up, recovering quite a bit of that loss, currently trading at $1,720 a troy ounce. manisha, that means it's up nearly $18 on the ounce since
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what bernanke was saying. >> he's had an incredible impact on the market. still just to come on "world business today," we have other matters. if greece is the word, it's not a word with very positive connotations. as long as the relationship between iran and the west remains volatile, so, too, will the price of oil. we'll take a look at the possible scenarios that could affect what we pay at the pump in the months ahead. it nurtures hair back to strong, healthy life. our exclusive active naturals wheat protein formula works with your hair, targeting damage, restoring strength and resilience for up to 90% less breakage in just three washes. find peace with your hair. [ female announcer ] and discover strong, healthy hair with life. new nourish+ strengthen, from the nourish+ hair care collection.
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a matter of days ago there seemed to be a very real threat that greece might be heading for a messy default forcing it out of the eurozone and back to the drachma. this thursday is the last day the central bank of greece will actually accept drachmas in exchange for euros. you're looking at pictures from the parliament in athens where politicians have been fielding questions about the latest pension and health care cuts they've been forced to approve to secure a second bailout. and that bailout will be front and center of talks involving eu leaders in brussels this thursday. now, to say that greece has something of a pl problem might be a bit of an understatement, right, and a spot of crisis management could come in very handy. a new campaign group led by greece business figures has been
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launched to give the country's reputation an extreme makeover. its message as you can see from the official website is clear. give greece a chance. nina, i wonder if they will. some pretty harmful charges are being directed at that time greek population. most of those accusations. most of those relate to the strength of the work ethic, all sorts of things toward the attitude toward paying tax, the extent to which they deserve their debt and also being bang rolled by brussels at least twice. understanding the greece's changing lobby is challenging those kind of negative attitudes. the campaign statement asserts that greeks are, quote, hard working, tax paying citizens unfairly labeled with stereotypes so easily handed out to greeks today. they say europeans who aspire -- the europeans who aspire towards a constructive role within europe, they will deliver on their commitment. they say they've already made sacrifices and they are ready to do more. one of the business leaders
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behind greece's changing lobby is alexander mccredis president of an industrial trading company joining us from athens. first of all, tell us why you're trying to counter this souring dialogue between brussels and athens? how concerned are you about the souring relations even though greece has gotten its second bailout? >> we or very concerned. we believe that greece has an opportunity to really change the business and economic model that has been in effect for 30 years. we or working very hard to promote another greece and to implement change, and that's why we're trying to pass an image of another greece, a greece that believes in europe, a greece that believes in reform, a greece that wants to be
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democratic, that believes in private initiative. that's the sort of greece we're dreaming about. that's the greece we're fighting for. also we're trying to promote all the sacrifice that is have already been made. a lot of emphasis has been put on what greece has not met in terms of objectives. we believe that not enough has been -- not enough attention has been paid on what greece has achieved. this is the most ambitious -- what we've done up to now in the last two years is the most auspicious program in the last two decades. 4.2% per year is astronomic with a lot of pain, unemployment of 21%. the facts are actually quite different and we'd like people to focus on the facts. >> let me ask you this. we've had a huge amount of job cuts here. has your company had to cut jobs as well? >> that's a very good question. we have had to cut jobs as well. we all have to adapt.
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part of retooling this economy is unfortunately for some companies at least requires reducing the workforce. but we are optimistic that, if we make these changes, we're building a better future. that's what we're trying to do. >> just bear with me a second. i want to show our viewers this kind of newspaper advertisement which i picked out of the weekend financial times over the course of the weekend. it's one of 17 advertisements you've put inside different newspapers all across europe. we're talking really influenced newspapers, the "wall street journal," "the "financial times."" that must have cost a lot of money. it's private money. they're a group of friends and like-minded business associates, we got together and decided that we needed to do something for our country to dispel the notions you mentioned before in
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the opening of this chat, to really resteer the conversation much more based on facts and to highlight the pain that has been taking place so far and the commitment that there is generally throughout greece for this reform. i mean let's not forget, the majority of greeks want to stay within europe, they want to keep the european currency and they're committed to do much more to stay in that family. >> let me ask you this. yesterday evening i was speaking the a hedge fund manager who rather flippantly said greece will be out of the euro in 18 months. what do you say to people like that and what is your reaction to speculators who are betting on greece not staying in the current bloc. >> the speculators are doing their business. it is up to us as greeks in the public sector and also the private sector to reform this
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country to provide a better future for our children. i'm very optimistic. i think we can make it with the proper support if europe gives us a chance, and this is the whole point of the campaign, give greece a chance, allow us to deliver. give us time to deliver. >> ever so briefly -- >> i think people will be surprised what we can do. >> just very briefly, if i may. you say we're hard working, tax paying citizens. greece has the highest rate of tax avoidance anywhere in the eurozone. >> yes. >> what are you going to do about it? >> well, that's part of the structural reform. it's a very good question. i think we need -- everybody in greece has to become a stakeholder. one of the issues we have to face is how do we change our tax aches system, how do we change the public sector? we got where we are because we spend too much, because our public sector unfortunately is
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not as efficient at performing it has to become. >> alexander mccredis, thank you for joining us from athens. he's one of the number of companies, healthy companies i might add, that says just give greece a chance basically. >> well, that's the campaign, isn't it? now global advertising giant wpp is doing very well, reported full year earnings that beast estimates. the company says its pre tax croft rose 18% in 2011 the previous year to $1.6 billion. its revenue tops $16 billion, up more than 7% from 2010. wpp says a surge in sales helped build its profits. so the company says its strong performance should continue into the coming months. for more on that let's talk to wpp cee sir march till sorrell.
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sir martin, always lovely to see you. >> good to see you. >> the last time i saw you you were in hong kong. >> i'm sitting with a backdrop of the empire state building. it's a fake backdrop, i should say. >> you've given it all away. when we were sitting here we talked so much about these markets here. one of the reasons we were here was china, you had done one of your trips around asia. would you say that's really at the core of how well you did last year or are you lucky you've got these big events coming up in 2012? >> it's one of the cause. certainly asia as a whole, including china and india. latin america, principally brazil, mexico, columbia, argentina, africa, across the continent, eenl north africa, sub sahara and south africa. middle east was a little tougher
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because the arab spring certainly brought uncertainty along with it, and we've had increased uncertainty as well. in addition to that geographic strength, we've certainly seen stlengt in digital which you know about as well and also in our media planning in buying what we call media investment management operations. all in all it was an excellent year last year, not just top line growth of 7%, but a bottom line growth of 20%. but eps up 20% as well and dividends up almost 40%. margins up 110 basis points against expectations. all in all, an excellent year, not great economic conditions generally, particularly in the second half of the year. this year looks not dissimilar, maybe a little bit more multed, looking for 4% top line growth against roughly 6% last year, 5.9% last year. so a little bit less. but void by the olympics, the
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central and eastern european football championships and last but not least the presidential elections in united states which will boost political spending, too. we're set fehr i think for 2012. if one is looking for clouds, i think the one cloud is what happens in america after the election. what happens with the deficit and deficit reduction if there's a deadlock between the president and congress or between the republicans and the democrats. so we have to see how that shake outs. i think 2012 will be a similar year to 2011. >> okay. just speaking of the year ahead, also, you've made this great profit figure. what are you going to do with that kind of cash. is it time to pay down debt? is it time to look around? i know you have a strong organic growth figure. what would you do with that money? >> our debt levels, our target is somewhere between 1.5 to two times debt to -- we're at 1.7.
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we're in that right zone. our free cash flow is about a billion pounds. dividends cost us around 300 million pounds, acquisitions probably about 30 to 40 million pounds. there's surplus funds to look at share buybacks and we've looked to increasing our dividend payout ratio from 32% to 40% over the medium term. this year we're up to about 36%, 33% if you exclude -- include the extraordinary tax credit, but 36% if you don't. we've raised the dividend power ratio. the debt level is about right. we've been quite aggressive on small and medium-sized acquisitions. that will continue to be the case, particularly around our strategic objectives of new markets. that's the bric and next 11 new
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media. and than consumer insight, understanding data and data analytics and application of technology into the markets. we're in good shape. we had a record year by any dimension we care to look at, and we look forward to a similar year, if not better in 2012. >> i have to say i'm wishing you a happy year of the dragon. as always, great to see you, great to chat. martin sorrell against that fake backdrop in new york. >> but at least i'm not in my pajamas. >> at least. see you again soon. middle of the night over there, isn't it? dedicated fellow sir martin sorrell. still to come on "world business today," a vacation nightmare finally ends its nightmare for the passengers aboard the costa allegra. full details when we come back.
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from cnn hong kong. i'm manisha tank. >> i'm nina dos santos from london. welcome back to "world business today." we or about 19 minutes into today's trading session. as you can see, more or less most up with the exception of the cac currant. it's approaching if flat line as we speak. want to bring you some news that's come into cnn over the course of the last hour. we're focusing heavily on greece because we have another euro leaders summit in bruz sells over the course of the next two days to prevent another greek situation happening. greek manufacturing we now know according to the purchasing
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managers index has shrunk at its fastest rate in at least 13 years for the month of february. this is as production in new orders have declined because of concerns about this. so this is coming in according to the reuters news agency that the latest pmi, purchasing manufacturers index for greece has shown manufacturing has contracted at its fastest rate in at least 13 years for the month of february. doesn't sound good, does it manisha? >> no, it doesn't. a close look at those numbers. let's take a look at the numbers for the asia pacific region so far as the markets go. finishing the session with red arrows across the board i'm afraid. the hang sang in particular being hit the most. this really, nina, you know a pickup on the bernanke comments. it's always about what the leaders of the fed don't say. people in asia preoccupied with what's happening in the u.s. economy, even though you have greece on the back burner, for
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them to think about what's happening with the u.s. economy and getting concrete data has been a lbit of an issue. numbers on the china side wasn't enough to tame the losses, but at least shanghai and the nikkei 225 down more or less a fraction with muted losses there. manisha the crippled cruise liner costa ag leg gra has docked safely in the seychelles. it was towed to a port after being stranded at sea. more than 1,000 people on board were forced to endure three days without power. that was after a fire broke out in the ship's engine room. the costa allegra is operated by the same cruise line that ran the costa concordia which ran aground off the coast of italy in january. that incident killed at least 21 people. now that the costa allegra
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has docked, we understand passengers and crew will be put on planes and eventually sent home as soon as possible. cnn's dan rivers joins us from the seychelles on the telephone. have you managed to speak to any of the passengers? what kind of state do they seem to be in? >> reporter: we've spoken to quite a few of them. a mixture really. some of them terribly sunburned and describe their ordeal as horrific. others, i spoke to a young mom and dad with an 18-month-old kid saying it was fine. the crew were brilliant and everything was very organized, given it was an emergency situation. so a sort of range of opinions. i think everyone is thankful they're ashore. they've been telling us they've been eating salami sandwiches for breakfast, lunch and dinner for the last four days because obviously with no electricity they couldn't have refrigeration and no fresh food or sewage either. things pretty unpleasant for
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them on board with no running water and so on. what's happening now is they are -- some of them are being put on buses and taken to hotels and then straight to the airport, a charter plane is being hired to fly them out. some have decided to stay here for a week and enjoy some hospitality here in the seychelles courtesy of the company costa cruises. i asked whether any of them had been put off going on a cruise again. some of them are already saying they've already had other cruises booked and they'll continue. others, though, saying they don't want to get back on another cruise ship for a while. as you can imagine, with 600 passengers, a range of opinions. interesting to see that everyone here is safe and aside from a little sunburn and exhaustion, i think they're all well. >> the fact that this couldn't have come at a worse time for costa cruises after, of course, the costa concordia incident in
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january, what is the company going to be doing to recompensate people who have been affected? >> reporter: we're waiting for a press conference in about an hour where we hope to get more detail on that. what happened with costa concordia, fairly quickly, within a few days a compensation package announced. that was much more serious, clearly much more scary. i would imagine they'll have tufr some sort of compensation for this cruise that is now effectively terminated. many of the passengers weren't due to disembark here. some of them were due to go on to other locations. there will have to be some sort of agreement. there is a possibility that as with the costa concordia, some of the passengers may decide to take legal action to sue the company for what's happened. there's already a class action going ahead with the costa concordia and a possibility that these passengers, although this incident was less serious, feel that they have -- that they want
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to take action in the courts as well. >> dan rivers joining us from victoria in the seychelles, many thanks for that. dan has been covering not just this costa incident, but also the costa concordia when it ran aground off the coast of italy. interesting to get his perspective of what this means for the company as well. >> very much so. really difficult times for that company. i think a lot of investigation will have to happen now. an enormous storm system has killed 12 people after spawning numerous tornadoes. the storm is plowing across america's eastern states. meteorologist pedram javaheri. i was with your colleague looking at some of the pictures. really quite devastating. >> it certainly reminds the folks of exactly what happened a year ago, back fwl 2011 across the midwestern u.s. with a line of storms that tore through portions of mismissouri.
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remember joplin down in the state of alabama, there was tuscaloosa with an ef 4 tornado. these are the reports across the midwestern united states. a widespread region. one of the ones in particular just outside the city of harrisburg. a lot of times we get these large-scale tornadoes that touch down in farm communities and farm lands. you can see you can pick up on google earth imagery, you can see the farm communities. but here a city region, 9,000 folks. pictures and video out of this reporter. ireporter sending us an image from one of hospitals. a year ago we were talking about joplin, missouri, a lot of folks impacted not only outside, but inside the building. windows, doors and walls blown through. winds this is the medical center here. we know the folks were evacuated
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to the radiology building where it's sturdier. the graphics here show you tornado alley. a lot of folks across the united states know all about it as the ingredients come right in place. we have a few regions like say bangladesh where tornadoes are high frequency, but certainly nothing like the united states. this storm system as you said, manisha, is beginning to move across the eastern states. on the southern end where it's warm, tornadoes in kansas and illinois. 46 centimeters, that's 18 inches of snowfall. again, shows you the disparate of air mass here to the north very cold and incredibly warm to the south supporting the thunderstorms. manisha? >> that is a huge area, that tornado. i think it's about seven states deep. pedram, thank you very much for bringing us up to date on all of that. just ahead on "world business today," global oil supply fierce have left many of us feeling the pinch at the pump. but we'll tell you why taking a
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green tack could leave you with more greenbacks in your wallet.
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welcome back. you're watching "world business today" live on cnn. now, iran is preparing to go to the polls on friday in its first election since allegations of vote rigging ended in mass street demonstrations three years ago. the vote pits two conservative factions against one another, those who support president mahmoud ahmadinejad and those who don't. any instability in iran would add to worries about the middle eastern oil supply and we've already seen price rises to near nine-month highs as relations remain strained.
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on wednesday federal reserve chairman ben bernanke said he doesn't see any easy answer to the yoid of pricey oil. >> i think it's coming from fear to supply disruptions, particularly iran. i think the best thing we can do would be to resolve that situation. obviously that's well beyond my capacity or probably anyone's capacity. so i'm not sure what can be done to provide substantial relief in the very short term. >> fed chairman ben bernanke there. the price of brent crude is hovering around the nine-month high. a lot of the support coming from these geopolitical tensions. stockpiles are looking decidedly healthy. we'll keep an eye ton those figures for. nina? >> $4.00 for gas is enough to cause a national outcry in united states. the average price of a gallon
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currently stands at about $3.73 nationwide. what americans pay at the pump has already risen by about 14% so far this year alone. fw the rise seems understandable for many, for those out there who are united states citizen, their thought for us here in britain. the average price of a gallon where i am currently stands at $9.85 per gallon. norway may be a big oil producer as well, but people pay through the nose. $11.54, about three times what americans currently pay today. as prices push ever higher you might be interested to learn you can save money without compromising on mileage. the solution is something you wouldn't necessarily equate with the economy. that's going green. i took a spin in a london cab to find out why the future might
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very well be biofuel. with prices at the pump remaining persistently high, many motorists are opting for renewable and sources. who drives more across london than its taxis? >> every year london produces almost 3 million tons of organic waste, some of which is converted into biodiesel. since 2008, uptown oil has been clkting used cooking oil and turning their unwanted waste into the most pre shus of commodities, fuel. >> now you have crystal clear fantastic quality recycled biodiesel. >> filling up with biodiesel at places like this south london refinery doesn't just cut carbon emissions by 80%, it turns out to be 12% at least cheaper than filling up your vehicle at your average gas station. >> if they had a biodiesel pump
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at every petrol stations, taxi drivers wouldn't -- >> they've seen their sales rise to 3.2 million. >> it seems like a good idea, that there's a waste product out there not being used or not being utilized. in the last few years it's become much more popular. >> down the road at the duke of york pub, the land lady says having up town collect her used oil saves her money as well. >> before this started we used to have to pay to have the oil taken away. they take away the old oil and the old oil is put to good use and it's running london's taxis and heating london's buildings. >> pricewaterhousecoopers came to us and they run up to 25% of their new head office's energy
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needs. a fantastic carbon saving and hugely sustainable. >> are you doing this because of the environment benefits or is it basically because it's cheaper. >> cheaper and environment, both really. >> which one is most important to you? >> cheaper. >> biodiesel may be fueling london's hopes for a cheaper and more environmentally friendly way of getting around but not everybody is converted yet. >> hem low. the west end, please. >> so is this cab powered by biodiesel? >> not at the moment. but we're working on it. >> so manisha, that was an interesting afternoon's filming at uptown oil. aside from the fact that all these taxi drivers are increasingly becoming converted to bio diesel, the people at uptown did caution to me. they said you wouldn't believe the state of some of the cooking oil that arrives here at our refinery and that sometimes comes from the best restaurants in london. i've got to say, that made me
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think. >> it's making me think as well. i wouldn't want to imagine what that looks like. i have to say here in hong kong we are notorious for jumping into cabs. it's vfr, very cheap. i'm interested to see whether that will change with the pressure we've seen on oil prices. lit be an interesting story if the prices do change. thanks, nina. still to come on "world business today," a helping hand or a case of cyber snooping. google's new privacy policy goes into effect today. we'll tell you what it means for you. that's up next. sglvrnlths sglfrnlths for my arthritis, i use
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control room in hong kong. live from cnn in london and hong kong. if you use google, this next piece of news might ring alarm bells for you. google's new privacy policy goes into effect today. if you have a google account, the company is going to keep track of everything you do on all of its websites. ben simon talks to one of the company's senior lawyers who helped draft that contentious privacy policy. >> reporter: a senior attorney at google, keith enright helped draft the new privacy policy. >> it's about using information that you've shared with google
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to make google products and services more useful for you. >> reporter: it does that by keeping track of all of your activity across all of google's sites like youtube, g mail and maps. it takes that information and builds a profile to display more relevant ads and search results. >> we'll treat you as a single user, combining information you've provided with one service with information from the others. >> reporter: that's what frightens privacy watchdogs. they worry one company will know too much about us. attorneys general from 36 states wrote a blistering company to the company, calling the new policy an invasion of privacy. others are sounding the arm larm that there's no way to opt out. >> if there are things you want to keep private about your life. those records are all in there. >> reporter: google calls that untrue and says the criticism is unfounded. now it's going on the offensive trying to erase a perception that is violating users rights. >> here is what the privacy watchdogs say.
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they say if this is good for google users, then very few people would decline to opt out. so why not just make that an option? >> it's really about delivering the best service we can to users. based on our experience with users, we know that a consistent seamless experience is going to deliver the most value for them. >> reporter: enright points out users will have a wide set of privacy controls, users can decline targeted ads and log out of their accounts and use google services anonymously. >> so what's all the fuss about? >> i think it's largely based on misperception. i think people think something is happening that is not, in fact, hang. >> reporter: google may only have themselves to blame for some some of the skepticism. last year it agreed to settled a law sue over charge that is the company used deceptive tactics with its shuttered social network called buzz. more recently google is found to have circumvented privacy
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controls on apple's safari browser, missteps that only invited more skrutd any. >> we want to deliver products that delight users and that they find extremely useful. to the extent we deviate from that mission, we're going to lose users. if we're not delivering in a manner inconsistent with their expectations, our competition is one click away. >> reporter: google thinks when people take the time to read the policy, they'll appreciate what the company is trying to do. at a time when so many of us are sharing our lives online, google readily concedes it's important we know what they're doing with our private information. dan simon, cnn, mountain view, california. >> food for thought there. that's it for this edition of "world business today." thanks for joining us. i'm naen nah dos santos in london. >> i'm manisha tank in hong kong. you're watching cnn, the world's news leader. bye for now. e
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