anderson, when i was interviewing erin burnett there was a lightning strike, did you

see that? >> wow, that's amazing, i didn't average american joe. what should they be doing with their money right now? >> well, that's the funny thing about it. the average american joe actually is the economy. it doesn't come from the top down out of washington. it does come from the bottom-up. so if enough people start doing smart things with their money it will heal the economy. smart things are outlined as having savings for emergency. living on less than they make and getting out of debt which would all be good rules for washington, as well. >> we're getting a lot of reaction on twitter tonight. abnormally high volumes. if you want to get ahold of me, piers morgan, give me your opinion. they are saying that they've had enough of these politicians squabbling, literally, fiddling while rome burns. >> well, there is a lot of that but they've also had enough with this, people with their heads stuck so far up the politics all they can speak in is sound bytes. people stuck on ideology and

where they say it's hilarious that the far left says all the economists agree. the far right say all the economists agree. all economists don't agree on anything. they are there to make weather forecasters look smart. ridiculous. so what all americans can agree on is they are well aware we're spending 42% more than we're taking in and they're aware that has to be fixed. most people are smart enough to know we can't fix it in well fell swoop with this particular bill. it is time this is addressed. this is not a false crisis. it's a real crisis that's been brought to the head by the emotions of the american people. >> david, you spent a lot of time talking to the average it is time this is addressed. this is not a false crisis. it's a real crisis that's been brought to the head by the emotions of the american people. >> david, you spent a lot of time talking to the average american and understanding their cares and concerns. there is this kind of mythology being built up, i think, in washington, that americans aren't prepared for tax increases but i don't get that sense. i get the sense that there's much move realism on the streets in america about the need to do that. >> you know, what americans say

about taxes to me, piers, is this. they want this sense that people are carrying their fair share. there's where you get into that argument is "fair share." we have 49% of americans last year that did not pay a dime in federal income tax. not one dime. and mathematically, we've got this bunch of folks that say the rich and business can solve it all. there's not enough money in the rich and business to solve it all. are carrying their fair share. there's where you get into that argument is "fair share." we have 49% of americans last year that did not pay a dime in federal income tax. not one dime. and mathematically, we've got this bunch of folks that say the rich and business can solve it all. there's not enough money in the rich and business to solve it all. it will be a shared sacrifice and sadly, it's going to hurt all of us when we come out of our pocketbooks and when we cut services and things back. the government has mathematically reached a point it can no longer be all things to all people. and it's going to be tough on all of us. all of us enjoy things that are brought to us by d.c. and it's mathematically not able to. >> are you very concerned about what's going to happen the rest of the year in terms of america's economy?

nothing is reacting positively to this deal at all and this seems to be not the last throw of the dice, but pretty close to it. >> well, i think that this is going to at least put this off the front page and it will let people go back to their lives. when i go to a restaurant and spend money and when i buy gas to go to that restaurant to spend money and i buy a car to drive there, that's the economy. when people are sitting at home and fretting and worrying if there's going to be collapse all around their ears it freezes everyone like a deer in headlights and that's not good for anyone. it freezes creativity and passion and most of all it freezes the flow and velocity of money in the economy. that's what we need to get moving. people moving around and doing deals and doing business instead of being frozen by this so it gets this off the front page and let's people go back to their lives. >> dave ramsey, as always, talking a lot of sense, thank you very much. >> thank you were piers, good to be with you. >> right back after this break.

[ gnome ] ahh... [ male announcer ] this is what it's like getting an amazing discount on a hotel with travelocity's top secret hotels. the easy way to get unpublished discounts of up to 55% off top hotels. harpist not included. ♪ 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... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket.

these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say...

sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now.

before we go tonight i want to take a moment to pay tribute to an amazing woman who less than seven months ago,

congresswoman gabby giffords was the victim of a assassination attempt. tonight, she was on the floor of the house amidst the ugliest debate's in washington's history. they suspect no there will forget. i know that i won't. hi. i'm zain verjee at cnn in london. here are the top stories this hour. the u.s. senate is set to vote on a bipartisan bill to end the debt crisis. they approved the measure e on monday. it calls for $2.4 trillion in spending cuts over the next ten years and the debt ceiling will be raised by nearly the same amount. full coverage just ahead on "world business today." congresswoman gabby giffords got a standing ovation when she

returned to the u.s. house. this was her first house since she was shot in the head in january. she had to be here to support the debt bill. she'll go back to houston soon to continue her recovery. there was more violence monday in syria. the human rights activists said more than 24 people were killed by security forces demonstrating in the street and more than 150 people have been detained since ramadan prayers ended monday night. they're targeting what ittet calls around terrorist groups. the operation of japan's crippled nuclear power plant says it has measured lethal levels of radiation in spots between reactors 1 and 2. they're shutting down the plant. those are the headlines from cnn, the world news leader. i'm zain verjee. "world business today" starts now.

-- captions by vitac -- www.vitac.com good morning from cnn london. i'm charles hodson. >> and good afternoon from cnn hong kong. i'm andrew stevens. welcome to "world business today." today is tuesday, august 2nd. the u.s. is closer to settling the debt deal. can they handle the cuts. how are the world's largest car mareks being hit. >> and eric schmidt was google's ceo from 2001 to 2011. at long last washington's debt drama should end just hours from now. political observers predict the senate will vote to approve the final plan and that will allow president obama to sign it into law before tonight's debt limit

deadline, thus averting a u.s. default. the house of representatives approved the 11th hour compromise by a wide margin on friday. 261 for, 161 against. consistent for both republicans and democrats. charles, this time yesterday we talked about the market having a positive reaction. it didn't seem to last long, though, did it? >> it certainly seemed to melt away pretty fast, as fast as summer snow, even here in london. actually that i thinking combined with the news out of the u.s. manufacturing sector, which we'll get into later, you're looking at really quite a sharp downward movement on some of these indiceindices. losses of about a third to nearly two-thirds of a percent with the ftse and the cac 40.

i'll tell you something. we're looking at high, high volatility. and also according to some measures, and if you look at the broader indices of european stocks, you'll see we've now reached a correction. the stocks have come down 10%, more than 10% from february 17th. their lowest level now since october of last year. so we are officially into a correction. of course, another very important factor is the early season. around about half of all of the major european countries have actually missed their earnings targets. so really you're looking at a pretty woeful situation here on these markets, andrew. >> yeah. interesting, isn't it? there doesn't seem to be any sort of incentive to drive the markets high. certainly if you look around, they relentlessly grew, particularly for the u.s. economy. today the u.s.-pacific numbers

out as well. really putting a damper on that little rally yesterday in the wake of the obama announcement on the debt deal. now let's take a look at some of the numbers after the u.s. manufacturing came out showing it was growing at its slowest rate in two years. a pretty bad reading on most of the numbers. if you take a look at the nikkei, if we can pull these numbers up, what we're going do is get ramy in on this. ramy has been following it much more closely than i have, right, ramy? >> yeah. markets across the region fell between 1% and 1.5%. let me take you to the nikkei first. it closed down to about 1.25%. toyota posting its first quar r quarterly loss in two years coupled by the stubbornly strong yen, others are feeling the pinch as well. of course, a stronger yen eats away at the profits that are

repatriated. there's talk that japan might intervene with monetary easing. over here in hong kong, the hang seng fell on the weak manufacturing data. hsbc is listing here, pares down earlier. it plans toiquette $3.5 billion in cuts as well as lay off 30,000 of its staff. meantime over in the mainland, the shanghai composite closed nearly 1% down. there's speculation that china's central bank might raise interest rates again as soon as this month perhaps to keep up the fight against inflation. banking stocks as you might expect fell. also air china and china eastern as well as china southern, theyal fell about 3%. that's on new passenger fuel surcharges which take effect today. and heading on down to australia, australia also saw losses of about 1.5% here. that was, of course, due to

manufacturing data. mining stocks fell too. rio tinto. nearly 2% down here. also the reserve bank of australia and rba decided to keep the cash interest rate steady at 4.75%. that did lend a little bit of support to the markets here, andrew. >> just a little. ramy imocencio, business nachlt charles. we did have a bit of an earlier round on u.s. market. out of the gate the stocks were up by 1% following the debt deal. manufacturing report that we mentioned sent the markets downward and set up a negative finish. strongly negative for the dow, but the nasdaq and the s&p 500 down by half a percent. look ahead to the u.s. futures,

tuesday isn't shaping up to be much better. opening with the markets with a loss of about 60 points for the dow, 15 for the nasdaq and 9 for the s&p 500. so, again, it looks as if the globe has it. even though it looks as though we may be out of it in terms of the debt deal, andrew. >> absolutely. at least there's not going to be a default in the u.s. apparently with the debt drama coming to an end what's next for the fragile u.s. economy. john defterios takes a look at that just ahead. stay with us.

welcome back from cnn hong kong and london. you're watching "world business today." now, the on fire debt deal calls for $2.5 trillion of cutting in the next ten years but will it help the state of the faltering u.s. economy, which we know from the u.s.

manufacturing reports shows some sign of strain. cnn's john defterios joins us here from london. give us a bit of detail. how bad was that? >> it's interesting. the survey has very closely watched. it's indicated what the futures's going to look like. number one, it was very dire, but we had a 5-point plunge, that's after a strong rise in june. we have a turning for the better in the second half of 2011 that's going to point to higher growth. what i think this points to is the impact the debt impasse is having on the psyche of the consumer and is spilling over to the business community, number one. number two, we know the fed stimulus is not as stromg as it was in the first half of 2011 nor as strong as it was in 2010. there could be life after the great stimulus from the federal reserve and show a sputtering in the u.s. economy. and reflecting the fact that the q2 growth of 1.3% may be very accurate about this flatlining

of u.s. growth. >> yeah. we've got a jobs report coming up for july. what does it tell us about the jobs market? because presumably manufacturing jobs are weak. it's not creating jobs. >> i think it's worth it to take a step back and say what is happening in the jobs market overall. we have a report say iing how de the u.s. jobs outlook is. workers are out nearly 40 weeks right now before they can find a job. 39.7. that's the highest since figures going back to 1948. that's not the only figure. a drop in work force participation. some suggest, including standard charter, that it's an unemployment rate of 2% but 12% because some people have stopped looking for work, charles, which is quite alarming. wage growth, where is that coming from? wage growth. it wassaging 2.3%. now it's less than 2%.

it's pointing to a sluggish economy. the debt deal came at the worst time because it leaves a big cloud of uncertainty for america. where is the growth going to come from? we see workers in the federal aviation administration being furloughed right now. there's discussion in my family right now they're doubling the class size in classrooms in primary and secondary schools in california, which was a leader in education. so this does not point to a robust economy going forward. how long is this going to last with this debt burden on its shoulders? >> it's interesting, though, because clearly the chinese contribution to global growth has been growing, and now will presumably be standing at a great high now as a result of the world's strongest economy really being very weak. what does this do for u.s. standing in terms of international gatherings like the g-20? >> i think it's a phenomenal point. some call it shin dough nisha.

you have china and indonesia. the try anger growing very strongly right now. not surprisingly vladimir putin jumped all over the united states saying it was a quote/unquote parasite and workers who didn't want to participate in the communist movement in 1940s, 1950s, very strong language. russia holds half of its concerns in u.s., same as china. what does it mean within the imf world bank? christine lagarde, the new imf said quite eloquently this could have an understood mining role. also don't forget, the u.n. security council. how much power or voice do you have around that security council table with regards to syria right now. >> if things fall apart, the center cannot hold.

a great irish poet. >> i knew i could count on you. >> essentially the u.s. economy is at the center of all this and that's falling apart -- >> the implications are quite brandied, put it that way. they've announced their quick post quarterly earnings. stay with us.