Skip to main content

tv   World Business Today  CNN  September 30, 2011 4:00am-5:00am EDT

4:00 am
"paradise lost one" and "paradise lost 2" out now and "paradise lost 3" out in january. that is all for us tonight. documentaries on hbo. that's all for us tonight. cnn hong kong, the headlines this hour. em battled president says he won't step down while his rivals remain in power. he said that a general and a rival plan would have to be neutral liezed if i more transition to take place. the crowd ambushed a convey of u.s. vehicles and witnesses say some people threw tomatoes.
4:01 am
he's been a vocal critic of the crackdown on protesters. hong kong's high court granted a maid the right to aply for pe permanent residency. the decision reflects a change in policy that until now barred foreign maids from seeking residency in hong kong. michael jackson's former body guard says dr. conrad murray asked him to gather up drug viles before asking to call for help. prosecutors are trying to make a case that murray is criminally responsible for the singer's death. those are the headlines from cnn. world business today starts right now. good morning. this is world business today. these are the top stories on
4:02 am
friday, september 30th. there's no respite for investors in europe as stocks head south again this friday. a land mark victory for a maid could affect rights for maids around the world. and we'll look at the underbelly of product placement. stay tuned for the secrets of the bidding industry. first up though, let's get straight to the stock markets here in europe. we have a sea of red arrows. we're about an hour into the trading session. let's look at how things are fairing at the moment. still firmly fixed in the red. the heaviest losses coming from frankfurt. now after the german buntus decided to pass legislation to push the european financial stability funds, the fund for
4:03 am
europe higher, what we have is the greek prime minister meeting with the leader of france. also the president of the european council and austria will be voting. those are things to look forward to on the markets. let's look at how this is affecting the euro. we have seen the yen strengthening against the dollar. after strong selling by japanese exports. this is how the three main currencies are fairing at the moment. 1.5574 for the pound. 76.73 for the yen against the dollar. let's have a look at how things faired in asia. we are live from hong kong to run us through the action now that markets have shut. >> thanks. here in asia, stocks were on the
4:04 am
slide today. the nikkel down. the heng seng was closed yesterday as the typhoon skirted the city. the exchange was back open and we were hit with a selloff. the index closed down 2.5%. broad selloffs in land, resources, as well as banks. the shanghai composite lost some ground. this is after data showed china's manufacturing sector is continuing to contract. the purchasing manager came in 49.9, a figure above 50 indicates growth. the asx 200 did end flat. they revealed the budget shortfall was $46 billion. that's actually less than had been forecast. now the prime minister is targeting a return to surplus
4:05 am
within two years. but her words, as you can see, didn't move much to move the market. that's how we're closing out the day and the week. >> okay. thank you for that update. let's look at how things faired in the united states. it was a mixed picture on wall street. the dow average gaining 1.3%. when it comes to the nasdaq, it lost ground closing down .43%. the futures are pointing towards a low open. trading begins in a little over five hours from now. the dow jones futures actually sinking the most, but the s&p 500 not far behind. germany's parliament voted in favor of expanding the financial stability facility on thursday. the changes allow the fund to buy more sovereign debt and
4:06 am
boost the capital holdings of european banks. considering it's friday, we thought we'd have a little fun explaning the total rescue package here. as becky anderson reports, as contributions, germany's would be the highest. >> reporter: at this bevary yan beer house, it's been a hot topic. so what are bailout funds all about? come in with me. we're going to explain. the original fund had a lending capacity of $340 billion. imagine that as a round of beers. take a look at this. each of these represents one of the bigger country's slices of that. germany tab was $167 billion. france is next at $121 billion. and italy was at $100 billion.
4:07 am
the smaller glasses represent the smaller countries in the euro. the problem though is this. even before people started tapping the fund, it became clear that the likes of greece, island italy, portugal and spain were guzzling up this money. so we're going to need more. it's going to become more expensive. that's effectively what the germans have signed off on today. the lending capacity of the new fund or round as it were is some $600 billion. and the germans have decided well they will stump up nearly double what they suggested before. some $287 billion. the french are going for nearly or just over $200 billion. and the italians, an extra $80
4:08 am
billion. some $187 billion will be their bill going forward. again, the little countries are still chipping in a little bit. so where does that leave us? well the germans like the spanish and french before them have agreed to pay some of this bill. it's hoped by the middle of october that everybody else will have agreed to do so too. oh. $600 billion. really? >> for those of you who like beer, october fest runs until this monday. they are planning on voting on the changes to the european bailout fund later today. that's one of the thing that is we're focusing on when it comes to the markets as well. coming up next on world business today, how one woman's
4:09 am
court ruling challenges decades of discrimination. protesters fed up with wall street bankers are camping out in new york's financial district. but two weeks in, are their calls being heard?
4:10 am
4:11 am
4:12 am
seven months after japan's world natural disaster, there's a reminder that healing will come. someone left a bag containing $10 million yen. that's equal to $131,000 in a municipal office restroom. in the bag, a note saying that the money should go to help the earthquake and tsunami victims. the town will keep the money for three months and give it to the red cross if no one claims it. welcome back. this is "world business today." a phil pea know maid has won
4:13 am
what could prove to be a landmark case for domestic helpers. the woman challenged restrictions on foreign maids that have prevented them from aplying for permanent residency. and that brings us to our big number of the day with about 300,000 domestic helpers in hong kong, the city's permanent hoplation could be set to jump. it's believed to be more than one-third of dmes ik helpers in hong kong may already be eligible for residency there. a judge ruled today that the law denied them the same rights as other immigrants was unconstitutional and human rights advocates held the ruling as a major step in treating them as second class citizens. as one way of representing a group of maids admitt eadmitted just a small step in the right
4:14 am
direction. >> there are two chi tier ya to be eligible for residency. first the person has to reside there for seven years. it has to be a permanent residence. they can use the period in bh they remain in hong kong for application purposes, but whether that meenls it's a permanent residence, that has to be examined further. >> what exactly does all this mean? although maids be given the right to apply after working in hong kong for seven years, there are other criteria they have to fulfill in order to stand a chance. the case isn't closed yet. the government is expected to challenge the ruling in the next few days. in the u.s., many are growing disillusioned with wall street's bankers. protesters are camping out in new york's financial drilkt. they are calling for change.
4:15 am
whether the calls will be heated will be another matter. >> reporter: 13 days and counting for a protest calling itself "occupy wall street." turning a public park a mini camp site. their message is end corporate greed that's killing america's economy. but will they be heard in washington? >> politicians can be bought. political influence can be bought through political donations. this needs to be addressed. >> reporter: but organizing isn't easy. there's no money for microphones, so protesters act like human mega phones to relay messages to the ground. supporters come and go. organizers claim they peaked at about 600 during a weekend demonstration. but numbers at the park dwindle to an average of 200 this week. admittedly, most of the time is
4:16 am
spent trying to figure out what they are trying to say and how to organize. no one is in charge and that's the way they like it. >> we're gathered here in this place to join to craft that mission statement. to shape a statement of what it is we want and how we're going to get to it. >> reporter: both rallies are planned in more than a dozen u.s. cities. cnn confirmed two others in chicago and denver. in new york last weekend, 80 people were arrested in one demonstration held without a permit. police say there's an internal investigation into their use of pepper spray during a confrontation. the video went viral on youtube. in retaliation, the group published the names of a police official's children to threaten his family. this mother used a school holiday to take her four and five-year-old to join a peaceful
4:17 am
protest for a day. >> we're 90%. we all need to be more equal than that. >> is it hard to put together a solution? >> very hard. there's so many ways you could come to the end to a solution. but in the meantime, it's just awakening people up to know what's going on out there. >> reporter: the new york group insists its staying put with no exit strategy. and police say they have no plan to move them out. cnn, new york. >> as you heard, the protesters have had plenty of time on their hands. they have come up with witty slogans. wall street is our street. and to this effort, if only the war on poverty was a real one. we'd be putting our money into it. let's look at another one here. sticking to the poverty theme. a couple say "money cannot be
4:18 am
eaten." wall street was the real weapon of mass destruction. some people also saying if you're hungry, eat a banker. that's the slogans they have been coming up with. ever wonder why james bond traded in his astton martin? the director of the mcdonald's movie has tackled that subject in his latest documentary. he will be revealing the conversations that marketing executives don't want you to e know about. let me tell you about a very important phone call i made.
4:19 am
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.
4:20 am
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,
4:21 am
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. welcome back from cnn london. this is "world business today." he's the man behind "super size me." his latest title presents the greatest movie ever sold. this time the documentary is all about product placement. it was product placement that provided 100% of this film's
4:22 am
funding. morgan spurlock says it taught him a lot about business big and film audiences. >> i think that it can be a rewarding experience for them. i think that it's even more misleading for an audience. there's two sides. most of the time, people don't know when they are being advertised to. and businesses don't realize an opportunity. i called sponsors for this film. only 15 said yes. more came out realizing that they missed the boat in being part of the movie. >> i want to talk about editorial independence. i want to show our viewers a little clip. when you're pitching to a juice maker. >> the way i want to see palm in the movie, we get the call. maybe you guys are going to be in. we're going to do it. we want to be the official beverage. then every other beverage is blurred out. we will never see another beverage in the movie. >> that was quite interesting
4:23 am
that clip of you pitching to 100% pomegranate juice. >> if you look at the jacket, they did come on the film. they are the sponsor. they are in the middle of my coat. >> they are not the only one. did you have to make other sacrifices? >> as you see in the film, i'm interviewing the film maker who says it eloquently. when you start working with brands, it's all about compromise. and it really works for this film. it is about compromise. >> it seems that you made a few friends, but also quite a few ene enemie enemies. let's listen to two executives and their treatment of you. >> can you help me? >> i can help you. >> good. >> awesome.
4:24 am
>> twoef figure out which brands. >> yeah. that's the challenge. >> when you look at the people you deal with -- >> we have some places we can do. >> i thought turn the camera off meant let's have a conversation. turns out it means we want nothing to do with your movie. >> the last thing you said, on the one hand, we can help you. we love it. then the minute the cameras aren't there, a different tune completely. when we first got the idea, i said who are the people that are going to help us. the agencies are the ones with the keys to the kingdom. it was the furthest thing from the truth. they were protecting their own interests. only one company in the entire united states would even help us with this film. >> how much money did you make from the film? if you get it fully financed by the product placementes, did you make any money? >> the film just came out in
4:25 am
april. we have yet to have any of that money come in. it's making us roll out around the world. the greatest thing about it is it was in profit from day one. we raised the full budget. $1.8 million. so it was in the black. so now it's just a question is as it rolls out, what will we get? >> this is the emerging model for financing films. to a certain extent, is that to the detriment of the movie goer? >> i think it can. that's why there has to be a balance. for a big giantic summer movie like "ironman", these movies cost $200 million to make. a third of the budget is coming from product placement. it's different for a low-budget
4:26 am
film like mine. but this film is just as entertaining. it's a fun movie. >> you approached something like 650 companies to try to help you fund this film. you got about 15 on board. that's still fully funded. does that to a certain extent mean there's no such thing as bad publicity? even if you're doing a documentary, it's not flattering the product placement. they are still willing to finance it. >> we got a lot of brands that weren't maybe the marquee brands. like coke said no. but pom said yes. they realize it's an opportunity. it's a noisy movie. cnn is talking about it. so i think they saw that it was something that's going to be press worthy and buzz worthy. hopefully now, it will be ticket worthy. >> will it be the the greatest
4:27 am
movie ever made? >> it will be the greatest movie ever sold. we'll see about made. >> for those of you wondering, it will be released in cinemas in europe on october 14th. coming up on "world business today", why some of rug byes best teams say it's becoming financially impossible.
4:28 am
4:29 am
4:30 am
4:31 am
from cnn london, welcome back to "world business today." we're about 90 minutes into the final trading session of the week. also of the third quarter. it's not look iing positive for the moment. you can see the markets are down. the dax is losing the most. despite the fact that germany ratified. but we have the greek prime minister on the defensive meeting nicklaus sarcozi today. let's look at how asian stock markets faired today. investors in hong kong were in a selling mood. the heng seng closing down 2.5%. when it comes to the shanghai composite, that market closed down .26%. all of this comes after data
4:32 am
showed that china's manufacturing sector is continuing to contract. this is for the third month in a row we have seen figures like this. it came the asx in sydney. and in the meantime, the u.s. futures are pointing towards a mostly lower open when trading begins in a little over five hours from now. let's look at how things are fairing in terms of the premarket features. all the markets down. it's the s&p 500 that seems to be losing the most. its future is down .6%. unemploymentumbers are down. some small glimmers of hope for the world's biggest economy.
4:33 am
carter evans has the details. >> reporter: the stronger rally on wall street fizzled out, but the major averages closed higher. stocks popped on better than expected economic reports out of the u.s. but the realization that europe isn't out of the woods yet pulled the markets down before it we bounded before the close. the dow jumped 1.3%. the s&p gained .81%. the nasdaq lost a half percentage point. the u.s. economy grew at a 1.3% from april to june. the commerce department points to consumer spending and an improvement in exports as reasons behind the increase. weekly unemployment claims tumbled by 37,000 to 391,000. that's the lowest level since early april. the decline is larger than analysts were expecting.
4:34 am
it puts claims below that key 400,000 mark. looking ahead to friday, investors weigh heavily on personal spending. a reading on manufacturing in the chicago area is also due out. that's a wrap of the day on wall street. i'm carter evans in new york. >> looking ahead to asia, it's the final day of the third quarter. markets there now appear to be following the current declines we saw before the 2008 financial crisis. now that's according to a new piece of research out by the investment bank hsbc. we have the detail es on this and whether we may be in store for more bad news in the fourth quarter just like three years ago. >> the falls we're seeing turns out to be similar to what happened in 2008. this behind me is a graph of hsbc's asian business index. the bank says it's a composite of regional pmis and surveys.
4:35 am
it turns out the index had the same reading for 2008 and 2011 at just over 50. the big question moving ahead, where do we go from here? a further fall like in 2008 or a dip and then maybe a recovery back into 2012. hsbc says it is pretty optimistic the fourth quarter might not be as bad as three years ago. that's because of this chart right here. this bar chart shows how several countries have become less reliant on the west for their exports. that includes these, asia es first, second, and third biggest economies. china turns out theirs fell 5% between the second quarter of 2008 and the second quarter of 2011. japan fell 2%. india's export dependence fell 1%. but on the flip side over here on the right, hong kong's reliance on exports grew by 11%.
4:36 am
that number includes all the cargo that actually passes through the ports here. so it's actually a little bit of a difference there. now this south korea is asia's fifth largest economy. it's seen exports rise 4%. that means if demand falls, south korea's gdp will be hit that much more. hsbc says the emphasis is on the positive. it looks to china for this. the biggest economic engine. it shows that china's imports from asia are vastly outpacing the exports coming in from the u.s. and europe. it's that demand from china that should keep asia a bit more insulated and keep asia's economy growing more strongly than during the 2008 financial crisis. hopefully, looking ahead that
4:37 am
they will be correct. >> disturbing statistics there. asia business analyst, thanks for that. you can get more from the whole of cnn's business team. read blogs from our team of reporters and crews in the field. it can also catch up with the episodes of the boss. leave your comments for us. the rug by world cup is entering the final weekend of group matches. south africa and samoa is playing. also an action-packed weekend of rug bee coming up. on saturday australia will be playing russia. then france will be taking on that later. the rug by boss threatened to pull them out of the world cup
4:38 am
if the team doesn't get more support. both new zealand and australia have been critical of the cost at competing of the cup. it causes big disruption and leaves them with millions of dollars worse off due to lost sponsorship and ticket sales. they have been saying, such an outcome is unsustainable and impacts the aru's ability to promote and develop the game in our country and region. >> we need to find some solutions. you can't keep losing money by playing in the world cup. there are some changes we think we could take out of the event so during the week, it would get mileage around the team hotel. then you'd go into a tournament
4:39 am
sponsor window for the weekend. >> he says new zealand rug by loses $10 billion in any world cup here. fans had their patience tested as the national airline was disrupted by strikes. thousands of baggage airline and ground staff walked off the job for an hour. many of those passengers were traveling interstate for the country's grand final. 39 flights were delayed and two were cancelled in total. the workers are striking as part of an ongoing dispute of a contract. another typhoon is set to strike the philippines, even as the country is dealing with the aftermath of typhoon nesa. >> good to see you.
4:40 am
the track of this thing is unfortunate and eerily close to the last one. then we have our next typhoon that's now getting here. it's approaching the philippines. we have about 24 hours before landfall. recapping what we just went through here. this one is now inland. it got close enough to produce wind gusts of 100 kilometers per hour. heavy rainfall. the tallies are going to continue to sgo up as we continue to see that residual tropical moisture. those are the gusts causing significant damage to parts of the region there. all of the rain will begin to push off to the west. then we have a lull in the middle. then we have our next typhoon.
4:41 am
it's coming for the northern philippines. it's going to arrive in the early hours of saturday. timing moving up to about 8:00 a.m. local time. unfortunate lly once again, another typhoon causing significant damage. this has the potential to be a deadly storm as well. 200 kph winds. along with the storm surge and rain coming here, that's going to cause some significant flooding as well. even in manila despite the fact it will be north of you. you're going to see the rain bands, which will drop incredible amounts of rains. we're going to track this thing. it's going to have a similar track as the last one. but this is the wall of water that will be coming in upwards of 250 millimeters not out of the question. so landfall expected locally saturday morning around 8:00 a.m. give or take a couple hours.
4:42 am
we'll keep you posted throughout the weekend. >> okay. thank you for that. we have some breaking news for you this hour. yemny forces say they have killed a u.s.-born muslim preacher linked to al qaeda activity. this is coming from the defense ministry in ye men. i'm going to read you a statement they have sent by text message to journalists. these reports coming from the roiters news agency. >> it's a short statement from the defense. we know that the yemny defense ministry that the military there have been trying to capture or
4:43 am
kill him for some time. just a few days after osama bin laden was killed, there was confirmation from the defense ministry that a drone strike attempted to kill aliki. that was just a few months ago. he narrowly escaped that drone attack. that was confirmed by u.s. officials as well. they have been trying to get him ever since. if this has actually happened, this would be a huge blow to al qaeda and the araben peninsula. this is the most dangerous wing of al qaeda. they formed in 2009. they have attempted to carry out really spectacular attacks against the west ever since. so he's been considered to be their number one recruiter. a real propaganda tool for al
4:44 am
qaeda in the peninsula. a figure of al qaeda. once osama bin laden was killed, many people wondered if he would actually ascend the hierarchy of al qaeda and take over the leadership of al qaeda. he did not. but many have wondered what he would do and how much his stature would be enhanced after the kill iing of osama bin lade. he was seen as a key recruitment tool for jihadists. somebody who was very popular. spoke fluent english and could get the message out to where other people couldn't have done so in the past. >> how significant is the timing of this? it comes just four months and a few days after the president of ye men returned to the country
4:45 am
after four months in saudi arabia for medical treatment. how significant is the fact that they are claiming he's been killed now? >> this would be very significant and would be something used by the forces. but if this is true, it's certainly something that's going to be used to try to prove to allies that there's nobody better placed in yemen to fight al qaeda than him. this is something he's stressed a lot in the past. he's always made the argument there's nobody in yemen in the leadership who is able to fight al qaeda like he is. when the movement started and became so force m in yemen is if
4:46 am
he was to go, who would be aligned with him to fight al qaeda. it's been a big tool that he's used in the past to bolster his image to say he's best placed to fight al qaeda. if this is true, he will be using that to be saying that he should stay in power. and that there's nobody better placed to fight al qaeda and to try to protect yemen and their allies in the region. >> okay. many thanks for that. yemny forces say they have kill ed this u.s.-born muslim preacher linked to al qaeda activities. that's coming from the defense ministry in yemen. that's it for this edition of world business today. i'll be back for the second edition later on. tune in for that at 9:00 p.m. in
4:47 am
hong kong and 2:00 p.m. here in london. i'll be back in a few moments with market place of employment. placement. 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.
4:48 am
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,
4:49 am
get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. definitely not far enough. we're so ambitious for the future, but i believe it's a
4:50 am
historic moment. i do believe that. it's going to enlighten woman and put them as a major part of decision making, at least a recommendation. and looking after a lot of political and economic and social problems and be part of the revolution. >> the next meeting may not be for four years at least. so a lot of reforms have to go in place for us to see that change. to see more women participation in the council. what needs to be done between now and then? >> a lot of changes has to be happening. the judiciary system. it's a cluster of systems that has to be redesigned. making the role of women really effective. >> we saw the women at the forefront of change in saudi arabia. we have seen the women's drivers
4:51 am
movement. we have seen women defiantly at the polls this year. with all your experiences and all the barriers you have broken in saudi arabia, what's the most effective way for women to change and to drive the change in saudi arabia? >> i agree with what you just said. women have to drive the change and not to receive it. woman should proficiently do great to prove that empowering them is really a success story. i think the voice of women has really been asking for a lot of rights. now they are very much part of the job market. they are into business growing massively. so i think they should fight for their rights. not fighting in a negative way, but really asking and proving that they deserve that. >> given all the societal
4:52 am
barriers, we have seen the sentence for the woman driver. how do they break these barriers and really drive the change in saudi arabia? >> i believe that still there will be a lot of social barriers. it's definitely not about religion. it's about social barriers. and starting to move forward will open the doors at least for people who can do that. and it will come later in the future that people will see there's no harm in this. this will increase economic development, remove a lot of social barriers, will remove a lot of complexity and problems that we are having now and contradiction as well. >> up next, counting the cost of piracy. we examine the risk and look at some of the ways to fight the pirates.
4:53 am
i know pleasing fans is a top priority, 'cause without the fans, there'd be no nascar. just like if it weren't for customers, there'd be no nationwide. that's why they serve their customers' needs, not shareholder profits. because as a mutual, nationwide doesn't report to wall street, they report to their customers. and that's just one more reason why the earnhardt family has trusted nationwide for more than 30 years. nationwide is on your side. aspercreme breaks the grip, with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme.
4:54 am
4:55 am
concerns of piracy is growing as attacks increase. over the first six months of this year, there have been more than 250 attacks around the world. 60% of them coming from somali pirates. despite that, the gulf still serves as a lucrative corridor. as jane ferguson found out, new methods to combat the pirates are being considered. >> reporter: there have been more than 100 pirate attacks this year. experts say the commercial costs of piracy to the international community could double in the next four years to $15 billion. many gulf states and large
4:56 am
corporations that routinely use these waters as shipping channels have turned to armed, private contractors. but local authorities are crying foul saying there's a better way to deal with the problem. just down the coast from the hub of pirate bases is a tiny state of somali land. with a small coast guard that says they have caught 100 pirates in the last two years. they do it with boats that don't always work and not enough funding to keep the gas tanks filled. with more money, they could become a more effective force. >> if we get more money, we can go wherever we need. we can save the ships.
4:57 am
>> reporter: supporters say investment by gulf states and local coast guards could prove cheaper than hired guns, others are concerned about corruption. it is an issue in somali land. one that the new president sworn in last year has promised to tackle. the new government insists that the best way to stop piracy is for those gulf states and corporations to invest in somali land's coast guard. >> they should be given communication. we need communication to be established here so we can communicate to yemen, and we can have exchange of information. >> reporter: now pirates caught in somali land are serving sentences of up to 20 years here. the local government believes that pirates caught off the waters of any state should be brought on land and tried in the country's nearest where they were caught or even where the shipping company is based. >> they have to take them and
4:58 am
put them in court. like denmark and holland. >> reporter: that could include the uae where pirates are increasing in. all the options now involve spending more money and everyone is trying to get a piece of it. jane ferguson, somali land. >> for more about the program, visit cnn.com. you can also send us your comments. or check out our web page. that's it for this edition of marketplace middle east. marketplace middle east. thanks for watching. -- captions by vitac -- www.vitac.com
4:59 am

156 Views

info Stream Only

Uploaded by TV Archive on