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tv   World Business Today  CNN  March 6, 2012 4:00am-5:00am EST

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hello. cnn london. here are the headlines this morning. annan will arrive to a special envoy on saturday. john mccain is calling for air strikes against syrian forces. he says strikes would create safe havens in which op session forces could organize political and military activity. israeli prime minister netanyahu spoke out on monday that the threat and time for dip seu is falling short. barack obama reiterated america's intention to try to avoid military conflict over iran's program and restated
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diplomatic means of dealing with tehran. iran said it wants nuclear technology solely for peaceful purposes. "world business today" starts right now. good morning. from cnn london, i'm anita desantos. >> and very good afternoon from cnn hong kong. the top stories this tuesday, march the 6th. the world's second biggest cotton producer bans export. india's surprise announcement hits the market. and turning against nuclear energy in japan. as the company prepares to shut down its last two reactors, how will it fill the energy gap? and the geneva motor show rolls in today. green motoring may be all the
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rage, but the show is also luxury overtaking some of the machines. >> first off, though, let's go straight to the stock markets in europe. these markets have been trading for just over an hour. this is how they're performing, as you can see, not a stellar performance at all. the heaviest losses coming from the dax down to the tune of 1.3%. investors at the moment they're weighing uncertainty of the scale of the participation in that great debt swap. with the deadline for sign-off is just two days away, it's still uncertain how many of them will exchange their bonds. in real terms it could be equivalent to 70% of this holdings. and a developing spat between the european commission and spain. this is following the spanish government's announcement that
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it plan toss overshoot its target for its budget deficit. that could bring it in breach of the rules into place. all of this could shake confidence in europe's ability to put its finances in order not just for countries like grease but also spain that are much, much bigger. >> yeah. interesting look at the numbers you have over there. very similar story in asia. four red arrows. day two of the selloff perhaps not surprising. the asian markets have been up for the past 11 weeks in a row. the morgan stanley capital index measures the broad index of asia. it's down 10% since the start of the year. a lot of the people are talking about a correction were hong kong down by more than 2%. all these red arrows came, by the way, including australia, down 1.4%, the central bank said it's going to keep its benchmark
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interest rate steady $4.25%. investors remaining occupied about the negatives. it's not just china cutting its growth right by half a percentage point. that hurt energy and mining stocks. australia, bhp, down by 2.3%. it's not just that. it's also about the economic situation in europe. there's been some numbers suggesting that the eurozone is indeed continuing to slow. we've also got the deadline on the greek deal. so that all adds up to a chance for some of those profits really to be locked in. >> certainly right, andrew. let's hone in and look at commodities, in particular agricultural commodities. global cotton price have been spiking. india bans cotton exports. the second largest cotton
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producer wants to preserve its supplies for its own which is second to agriculture in terms of importance to its economy. it's the second ban we have seen in as many years. u.s. cotton rose on the daily exchange limit to about 4 cents on monday to a level of $92.23 per pound. cotton futures in china, the world's top producer of cotton and india's biggest export market also rose by more than 1% on the back of the surprise move, andrew. >> the indian government apparently underestimated international demand for cotton when it lifted export restrictions last year to offset falling domestic demand. that decision could prove costly. sarah joins us live from new delhi. is the government in india saying there's a serious shortage of cotton in india? >> to be quite honest, we've
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tried to get a comment from the government, and their answer is they're not giving a reason as to why they put this ban in place, which of course led to speculation. there are those very happy to see this ban come, and those groups that are very upset asking the government to reverse the ban. it's interesting to note that the two big countries that are really being affected besides the rest of the world is india and child. china being one of its biggest importers of indian cotton. here's what's happening here. basically the trade groups over the cotton industry have said -- they have asked the government to reverse this because this will really hurt farmers. the prices here will go down. and the farmers will suffer because of that. and they're also very worried this is going to hurt india's reputation on the world stage. that it would make people think india is not a reliable supplier. they are very upset. conversely, they say we want to
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make sure we have all the supplies we need in our country first and worry about the outside world later. so you have two conflicting groups that are looking at this in different ways. but i have to mention this. one of the big things going on right now say major election. the results are flowing in from five states. the largest state, a very important election. while most people in this country locally aren't even talking about this cotton ban because they're very concerned this election will have a greater impact in the years to come when it comes to india's economic decisions and its economic profile. so there's a lot of concern about the elections, less concern about this cotton ban except for obviously those people directly affected by it. you're seeing problems in the world market. they say if india stops sending its cotton into the world market, there's going to be a shortage. when you have a shortage and lots of demand, prices go right up. >> it's interesting what you say off the top.
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indian government struggling to explain what it's up to. as you point out the credibility of the indian government is going to be hit by another export ban on cotton. yet they're not making it clear. why is that? >> it's a really good question. it's very interesting to note that nobody is giving an answer. not even to the industries. i even spoke with a couple of people from the different industries who were really impacted directly by this, and they won't even speculate. they said we don't want to speculate. you let the government answer that question. the government is not talking. andrew? >> obviously a very sensitive topic. sarah, as always, good to talk to you, joining us live from delhi. nina? from a cotton shortage in india to an energy shortage in japan. the disaster that triggered the nuclear crisis, this resource deficient country is locked in a very real power struggle. live in tokyo in a moment. [ female announcer ] want to spend less and retire with more?
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hello and welcome back. you're watching "world business today" live on cnn. all this week we're looking at japan's recovery a year on from the deadly quake and tsunami that battered the country's east coast, as well as the destruction wrought when the 15-meter-high wave slammed into the country. it gave rise to another emergency. radiation from the fukushima nuclear plant. >> it sparked major safety concerns in the area around this power plant. a nuclear meltdown led to a fuse of a radio are active leak from it. and residents within 20 meters
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were subsequently forced to evacuate. it radically altered the energy landscape with nuclear reactors being shut down across the country. there are currently two functioning reactors left in japan. that leaves 51 in total idle. the two reactors will be going offline. that means japan will be without any nuclear energy at all. that's of course a major concern as they have no natural resources with which to generate energy on its own, andrew. >> it certainly is. now, the closure of japan's last remaining nuclear plants is certainly setting off alarm bells with worries that the country won't have enough power to keep production lines running. kun lah is in tokyo. >> reporter: it is certainly a big concern if you consider 30 percent of this country's energy
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came from nuclear power plants. they're certainly expecting to be an energy void in this country. as you said, there are a lot of questions about what that will mean for the world's third biggest economy. but many people here on the streets of tokyo and across japan say they're willing to live with the economic risks because they don't want to live with the way nuclear energy used to be. he doesn't look like a man leading a rebel yon. tokyo vice governor is taking on a once unthinkable giant. the power monolith tepco. >> it always begins with one person but everything starts moving once you have public opinion behind you. public opinion is certainly behind anyone who is against tepco in the wake of the nuclear disaster. tens of thousands have rallied again and again this year for a new energy policy in japan. something most people never
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thought about before even though 30% of japan's energy has come from nuclear plants. the vice governor believes he can build a natural gas facility that would generate as much energy as a nuclear reactor for tokyo. this type of large-scale anti-nuclear protest was once unthinkable in japan. a country that rarely challenges authority. but since the disaster the public has changed. with that the state of play for city and business leaders. this land will be home to a solar farm built not by the government but with private money. the ceo of japan tech giant soft bank wants to build enough farms by 2020 to switch off the dependence on nuclear power. they say other nations should not forget japan's mistakes. >> i think the chief lesson is that nuclear power is a very
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unfor giving technology and requires very stringent regulatory system and excellence in operations and maintenance. and that simply is not a lesson that utilities around the world seem to have absorbed. >> it tells cnn it is aware of a long-term anxiety over nuclear energy particularly from leaders like the vice governor. it is focusing on containing the disaster. a new japanese public which believes it can no longer afford to pay the price for complacency over nuclear energy. >> so will any of those nuclear plants, those reactors that are off line ever come back online? they have to go through rigorous stress tests and meet with community cohesion. so far, andrew, the communities say no.
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>> even though, kyung, as you said in the introduction to that story, there will be an energy void in japan. this is still the third biggest economy in the world. what does an energy void actually mean? what's it going to look like? what will happen in japan this summer? >> well, we're going to see very similar patterns to what we saw last summer. meeting the thermostats will have to be set quite high. people are going to have to do without. they are going to have to learn to live with less energy. we saw automakers over the summer shift their working days to the weekends. so it's going to have to be a lifestyle change in order to deal with the energy void. in the meantime, the government of japan has got to work on some sort of energy policy, some sort of long-term plan to convince corporate japan to not move production outside this country because so far there has not been a cohesive energy policy laid out by this government. >> exactly.
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and it sounds like even if they do it's going to be years to implement it fully. so we're looking at self summers of what sounds like discontent. kyung lah joining us live from tokyo. >> from one void to another, andrew. one of the biggest jobs in global economics. the race for the world bank presidency has begun. we'll have more on the first contender when we return. what makes the sleep number store different? the sleep number bed. the magic of this bed is that you're sleeping on something that conforms to your individual shape. wow! that feels really good. it's hugging my body. it works in a minute. i can get more support. if you change your mind once you get home you can adjust it. so whatever you feel like, the sleep number bed's going to provide it for you. at our semi-annual sleep sale, save $400 to $700 on our most popular bed sets. sale ends soon. only at the sleep number stores. where queen mattresses start at just $699.
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world business today on cnn. welcome back. >> evacuations are continuing in australia. floodwaters submerge moreland and more property. meteorologist ivan joins us now from the cnn weather center with the latest. ivan, any sign of respite in australia? >> we are actually going to be doing better than we originally thought. the peak here at the town that is under threat with that particular levee in new south wales, we have peaked. the floods have been incredible here. we have evacuated upwards of 10,000 residents away from these floodwaters as the waters came hard and heavy. we've been talking about the rains that have been relentless the last several days. and we're talking over a week now of just daily rainfall rates here that are just
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unprecedented. we have received so much rain now that we're almost past the annual average. we got that in about a week or two here. so you can imagine the results here. now, let me show you what's been happening as far as the peak at this levee. we were expect upwards of 10.9 meters. that would have been an issue, a major issue. because the design capacity at wagga wagga is 10.7. we're learning that it just peaked from the bureau of meteorology at 10.56. that is just below the benchmark here in the big 1974 flood. so it's really some good news here. we will monitor the levee very closely as will the engineers for any change there. but the residents remain evacuated. here's the thing with river flooding. the flooding is going to continue over the next several days and then weeks as we continue to see that river flowing here through southern and new south wales the next few
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weeks. it has to go downstream and it merges in the confluence. the flow will be continuing downstream. we will see the levels beginning to go down. flooding will still be an issue down the pike here as we talk about the potential for more rain. right now we're okay. as far as that trough, it's weakening here. just light rain showers at this hour. the low that brought the torrential downpours from lisbon, that is moving out of the way. the problem is it's the rain that's already fallen, andrew, on that river and it's going to be stressing the levees the next few days. some good news there in wagga wagga. we'll keep you posted if any of though changes. >> i don't usually do this but i have to correct you on the pronunciation. it's wogga wogga. >> rosemary always gets me but she's not here. that's what happens. >> i'm deputizing indeed.
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ivan, thanks so much for that. nina? >> i have to defend ivan on that one. even i would have gotten that one wrong, andrew. jeff sacks will replace robert zelik as president. he has major criticisms how things have been run at the moment at the world bank. mainly he said the bank is adrift and spread itself too thinly. he said it's time they stopped asking like any other bank and stood up really for the poor and the hungry in this world. sachs said he would be the first president of the bank not to come from wall street or indeed from washington. here's what he had to say about whether that outsider status is a help or hindrance. >> the world bank is our world's leading institution to fight
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poverty. yet ironically because it's called a bank, world backe it's been led by bankers overwhelmingly and mainly coming from wall street and been led by politicians but it has not been led by experienced practitioners who know the world of development. i've been engaged in travels to more than 125 countries in the world. i've worked with heads of state all over the world for three decades. the problems that we have are solvable. they're very serious. children dying of massive numbers of people undernourished, chronically hungry. we have solutions, but they need right now a tremendous professional effort to scale up those solutions to reach people who need them. and that's why i believe it's important to have a practitioner very experienced in this position. >> let's point out jeffrey sachs
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is an american and it has traditionally always been run by an american. the imf always by a european. the status quo may not change. >> but he does present a compelling argument because he is actually out there on the road. i mean, he has been leading the u.n.'s push on the millennium goals, 2015 reducing poverty. he sounds like he could be the perfect compromised candidate in many ways. he doesn't obviously have a political agenda. he represents what world bank is, which is poverty reduction. what do you think? do you think he could be a good choice? >> it sounds as though getting somebody from the outside would be a good choice. however, i do noe few people who have worked inside the world bank or still currently work inside the world bank. very often people who have experience at world bank themselves are very critical
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about the bureaucracy involved in that institution. it may be a bit difficult to eradicate that under one term. >> yeah. that would be a major problem, wouldn't it? anyway, we'll be talking much more about the runners and riders for the world cup over the weeks ahead. still plenty of candidates to reveal themselves here. >> still ahead, more green at the geneva motor show. there's still room for high-octane luxury over the eco-friendly electric cars. stay with us.
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cnn hong kong, welcome back. i'm andrew stevens. >> this is world business today. european markets 90 minutes into today's trading session more or less a sea of red from the last time we looked. investors are weighing the uncertainty of the scale of participation of the greek debt swap deal with a deadline for a signoff coming just about two days away. we've also got a brewing spat between the spanish government and the rest of the eu or the executive on the eu to be more specifically the european commission. just after, andrew, they put forward all of these plans to contain people's budgets, it seems as though spain's deficit is going to overshoot. that is more worrying than country's like greece because spain is just much, much bigger. >> absolutely. i guess we're going to have to get used to this, nina. deficits are going to grow. that seems to be sort of the economic principal here. so get used to an era of growing
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deficits, which is obviously going to make it harder for the eurozone to get its books back in order. another down day in asia. day two of the week, it gathers pace. hong kong down 2%. shanghai, down 1.4%. nikkei down.63%. reserve bank of australia keeping its benchmark of 4.25%. that's optimism on the strength of the u.s. economy. the china shadow effect continues. china yesterday announcing it was cutting its annual growth forecast by half a percentage point. it continues to worry investors even though it had been pretty clearly flagged that china's growth rate was going to slow as they rebalance the economy. so, anyway, that's, as we say before, nina, perhaps a little profit going on after a pretty blistering start to 2012.
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on wall street, u.s. markets followed equities elsewhere into the red after china lowered that growth forecast. major indexes all slightly lower by the end of the day dow a tenth of a percent. s&p lower by.04. a quick look at the futures. the selling is going to continue. trading gets under way a few hours from now. five hours to be precise. reasonable falls at this level. still ahead on "world business today," panasonic, one-time tech titans struggle to compete. a new crop of tech players is emerging. they're ready to take on the world. that story just after the break.
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welcome back to "world business today" we're live on cnn. >> one of europe's leading motor shows opens to the media this tuesday and another vote of confidence for detroit and for electric power. chevrolet's volt, which sells here in europe, has been named the car of the year in geneva. the model has an extended range of 500 kilometers and being touted as the future of green motoring. it's not just environmental friendliness but also size matters in the swiss city this week. and new smaller models from the likes of audi, per say tkaoez benz and volvo show automakers are downsizing to reduce people's tremendous spending power. not to say there isn't room for a little luxury. rolls royce is unveiling three models in its phantom city.
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thank you so much for coming on "world business today" and good morning to you. >> hi. good morning. >> let's start by talking about the increased demand for green cars here. now, what's really interesting is that you've launched three new types of the phantom cars, some of the most expensive and coveted motor vehicles anywhere in the world. they've also cut emissions by 10% as well here. how important is that for your customers? >> i mean, it's constant improvement process very much in the tradition. he was always saying strive fort best, improve what you get and make it even better. so this is what we are constantly doing. we have completely updated and modernized the phantom line for that exact sake. so this is not only due to emissions levels which is down
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10% but other technical items. it is also important in that segment. phantom is an icon. an icon is nothing you would change immediately overnight. so we have listened carefully to our customers who said change the car but only very subtle. and this is exactly what we have done. keep that car being the pinnacle in the automotive luxury world in the world. >> particularly the top luxury brand that you're in which is extremely expensive in comparison to some of the other cars i was reading in our introduction, how resilient is it during these times of austerity? >> we have seen last year growth in all the countries over the world. we had a record year in 2011. i'm cautiously optimistic that again we see a record year in 2012. it is of course nothing where i would say it doesn't affect at all our customers. yes. also let's say economies are affecting our customers. on the other side, i would never
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never say everything is doom and gloom in the world. we have seen a lot of growth. we have a lot of entrepreneurs in our customerships. those customers are rewarding themselves with a purchase of rolls royce for successes in their business. i am confident it will be quite stable over the next years. also when you look into statistics a lot of high net worth individuals statistics around around which forecast year by year a growth of 10%, which makes me optimistic about our future over the next years. >> to break down your product range here, what's really interesting to note is you have cars like the phantom which requires a chauffeur to drive but you have other models in the owner-driver market where you don't need a chauffeur. you seem to have had success with that particular range. >> i mean, we have introduced three years ago the rolls royce ghost, a very successful car.
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a car that is a more subtle way. clearly a driver's car. 80% of our customers in that rolls royce goes completely new to the brand. they are driving that car daily as a business tool. and also in phantom we see more and more people driving themselves. the convertible is a self-driven car. so that might change ongoing over the next years. >> okay. tosten, thank you so much for joining us. that is the ceo of rolls royce joining us from the geneva motor show. andrew? >> i think "world business today" should get a rolls royce ghost. the japanese carmaker nissan is planning to add 2,000 new jobs at its production lines in england's northeast. nissan is gearing up to build a new compact card named the
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invitation at its sunderland car plant. it will invest in $200 million for the the invitation which will start in the middle of 2013. it expects to produce 100,000 units in the first year. >> the human toll of the earthquake and tsunami that hit japan last year, the economic cost of the disaster was huge. damaged factories, delayed transport and crippling low power supplies all took their toll on industry there, forcing high-profile manufacturers such as sony, toe shaoe shiba and to suspend production. >> the country has been largely reliant on consumer electronics to keep its economy afloat over the years.
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in recent times, profits have turned into steep loss. modern innovation could hold the key to economic success. in a country already used to bad news from its corporate titans, this was out of the box dreadful. sony, sharp, panasonic last month said they combined losses would hit an eye-popping $17 billion. missed were opportunities, rising competition, and the ever-strengthening yen has crushed these one-time rulers of the electronics universe. but it's not all doom and gloom. i've come to visit a new breed of company that is not only making waves here in japan but well beyond its borders. meet 35-year-old tanaka, japan's youngest ever self-made billionaire. the second youngest in the world pwe find facebook's mark zucker berg. from his gleaming headquarters at one of the most desirable addresses, he is leading a new wave of japanese social media
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and gaming companies. he launched as a social network just eight years ago. it is now the country's leading mobile games company with 30 million members and sales are soaring. last year they hit $1.8 billion. japan has had a long history of gamemakers. and tanaka agrees to join that list >> translator: mobile gaming is popular in japan because we are the most advanced in it right now. just like it expanded in the world in the past, i hope it will become popular outside japan as well. >> is the mobile gaming industry going to be the savior of japan do you think? >> translator: i don't know whether we can be a savior or not, but i can say that there are not many industries which can generate this much profit and become successful globally.
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>> gree has already spent more than $100 million to buy open fate, gaining access to its 90 million users worldwide. it's also investing in china. but they aren't the only game in town. not far away, gree's bitter rival dna is also expanding aggressively. ceomariasu plans to make their flagship platform the world's biggest. he plans to quadruple sales to $4.5 billion by 2014. it has acquired u.s. games maker for $400 million in 2010. >> translator: i think that mobile social gaming will become a boom not only in japan but all over the world. >> its growth has certainly been explosive in japan and coupled with a booming growth of mobile phones worldwide, this new wave of japanese entrepreneur may
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indeed be the future of japan struggling to redefine itself in a challenging global environment. >> so the investors are loving those stocks at the moment, nina. they have just gone through the roof. it's interesting. very simple strategy they say that everyone has down time. they've got a mobile phone. they want to do something. a game is perfect. if they start buying the game makers in various countries, they can plug into those particular countries and the big gang buster games which cross all boundaries. at the moment it's certainly onto something. they're not importers or exporters in the traditional sense. they're not getting slammed by the yen. at the moment they're looking pretty about. >> very interest business model, an tkraoufplt thanks for that. still to come, we're entering the age of the millennium. find out who they are when we come back after the break.
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back live from cnn hong kong and london. you're watching "world business today." a new generation is rising. if you don't know them already, you will. they're known as the millennials. each week we'll show you what they do.
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here's what we have. 22-year-old michael burrbach. assistant to a photographer and aspiring actor. in santiago chile, 27 years old, already managing director of his own company, david lloyd. joe braidwood, 26 years old, award-winning answer. and milli, also 26, blogging about fashion. you'll meet all of them in the weeks to come. we have to understand the mentality that makes this country different. >> flip-flops at work. facebook breaks. free yoga on fridays. meet the millennials, a new breed of worker fresh out of college and already gunning for
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that corner office. you'll find them at this cafe in washington, d.c. >> we really want to put our mark on the world in multiple ways. >> or nestling in this office building in new york. >> we work to live and not the other way around. it soon becomes clear. the mind-set is different from any generation before. >> sometimes people don't understand work is what you do and not necessarily who you are. >> people in generation y have been told they can be whatever they want to be and do whatever they want to do since they were kids. >> the goal is to be happy. to find meaning. and they're figuring it out as they go. >> what are the needs today that aren't being serviced? >> american express sponsored workshop in new york, life coach christine is advising them on how to manage their money. she's an expert on millenials and she says she's constantly
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surprised by their potential. >> the way they think and the way they communicate is completely different. they move in a much faster speed mentally than any other generation before. they are amazing learners. they can go in and learn anything very, very quick. their brain is very adaptable. change doesn't scare them as much as other generations because they had to learn something new every day. >> so, what makes them different? they are the first generation to have always had the internet, which has transformed the way people network and socialize. >> i feel naked if i don't have any i tpoeuiphone on me. >> they come in and get a reputation of being entitled or not knowing how to communicate with older generations because they just rely on technology much more than a gen xer would.
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>> they are increasingly coveted as employees. more and more businesses want to tap in to their expertise and drive. >> they're the new marketplace. they're the new brains. they come with all the social media tools and tricks imbedded in them as natives. >> still, these are challenging times. according to a recent united nations report, some 75 million youths globally now find themselves without work. the numbers speak for themselves. it's helped foul the occupy wall street movement and similar gatherings around the world which gives voice to frustrations of the young. >> if you look at any group of people being discriminated against, youth and students. we take on massive amounts of student loans to go into what
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jobs? >> for a generation born with the idea that they could do it, the despair is real. it is extraordinary the optimism that millenials can bring to the most challenging of situations. >> a lot of the jobs of our parents's generations worked. this is also exciting because it means we get to invent new careers. >> true millenials are not revolutionaries. they don't want to tear down the the system. oh, no. this generation just wants to run it. >> what group of 20-somethings don't think they can run the universe? following the trials and the tribulations over the coming weeks. it's arguably the world's favorite cookie. if you place everyone that's
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ever been made end to end they would stretch to the moon and back five times. so what am i referring to? this. the humble oreo celebrating its 100th birthday this tuesday. now, you might argue about the best way to eat it, but you can't argue with its popularity. it has a street named after it on the site of the original factory in new york. so happy birthday, oreo. sadly, i'm not going to be celebrating. i don't like them. >> i know you don't. i rather like them. one of the brits on the production team that does like it. there you have it. thank you so much for joining us. we'll be back a little bit later for the second edition. i'm nina desantos at cnn london. >> andrew stevens in hong kong. ali for the next edition of wbt.
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ali is taking the pulse. of course super tuesday, the big, big republican voting day in the u.s. what oklahomans are making of it. good-bye for now.
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