will topple his fragile ruling collection. the main index shed 5% on wednesday. markets in paris, frankfurt, and elsewhere followed suit closing lower. for more on the turmoil in portugal and what it means for the european economy, let's go to new york. we are joined by the founder and ceo of the barrow consulting group. welcome to the show. what about the spillover effect of this? people are concerned about the fragile government there. if they once again go with their hat in hand asking for another handout or restructuring of the deal. how do you thing -- see things shaping up? >> europe has been with us for three years, starting with greece. portugal actually has been almost dormant in this euro mass -- mess. overnight the 10-year bond was about 8%, which is really worrisome.

it settled at i believe around 7.4%. as you know, bond players are the ones determining the fate of the country. in terms of the spill effect, i do not see a major one. obviously portugal is a very tiny country. it needs, i would say, $5 billion to $10 billion of additional aid to help us economy. whenever things like that happen, whenever the yield on a 10-year jumped like that, there is definitely nervousness in the the spillover effect is there. >> i spoke to a gentleman in the last hour in lisbon who said, i would like to get an answer on how you grow an economy and make things better when people are out on the reeds and do not have jobs, do not have food. there is a level of anger there that is help will -- palpable. he does have a point, doesn't

he? >> he does. similar to the united dates, unfortunately politicians and even private sector is relying on a few people in the central bank to determine the fate of the economies. so obviously, the free money is not going to go forever. everybody is worried. the precious time has been lost for many countries. they should have done much more on the structural reforms to boost employment. it is really very sad when 50% of youth in a country like spain or greece or even now the new member, croatia coming on board, is without jobs. that is extremely worrisome. the restriction so far has been only on the monetary front. >> i want to get your thoughts about these european bank downgrades. you have three big firms that

were hit and rely heavily on investment banking. what do you make of that? >> specifically, it was credit suisse, barclays, and i believe deutsche bank. all these three banks have had issues because 50% of revenues come from investment banking. as we know, whenever interest rates are going up in the world and there is so much uncertainty, there is so much regulations coming out, these banks will be the first to be hit. obviously moody's has downgraded these banks from a plus to a, to stable levels. i do not see more downgrades in the future. but the stock has reflected that. deutsche bank has been at the 41-42 level the last 12 months, in spite of the fact goldman sachs and other united states banks have appreciated considerably. >> what about the commodities

market? we are seeing oil trade higher because of uncertainty in egypt. what do you make of that? >> egypt, of course, is not a major oil producer. however, you have the suez canal their -- there. so everything goes through that country. that is why we see the levels we have not seen since may of last year. i think technically oil my basically -- might stop here at these levels. it always does. in terms of other, oddities like precious metals, gold -- gold was up 1% today after being beaten down considerably last week. we do have some life in terms of precious metals, gold and silver. we have precious metals going up when there is uncertainty in the world. >> always a pleasure talking to you. thanks so much for joining us.

coming up, the world's biggest pop stars and recording companies turn to technologies to beef up profits. and china will become the world's biggest user of mechanized workers in a few years. how that could transform work first priorities. we will take a look at how wall street ended a shortened trading session. here are the numbers.

sports scene -- the heart and soul of sport. >> in a business world with information overload, we strip away the complexity and confusion to give you the essence of financial news. pure value. biz asia america. we are cctv america. >> welcome back to biz asia america. china's top economic planner has invested an investigation in price-fixing by five for an infant milk manufacturers.

>> the investigation came as quite a blow to for an infant milk companies that now account -- four and -- foreign infant milk companies that now account for about half of sales. they all said they will cooperate with the investigation. analysts expect fines and tougher rules governing imports into china's infant milk market. the official xinhua news agency says finds could range from 1% to 10% of sales in china. foreign brands have gained increased popularity in china after a series of tainted milk scandals created mistrust of local rivals. some chinese infant formula companies have started forming partnerships with foreign companies. the latest one being in -- inner

mongolia, the second-largest dairy producer by revenue, joining hands with area farmers of america. that company represents one third of u.s. raw milk producers. also part of government goals to encourage consolidation in the industry and win the supply chain under the control of chinese producers. they plan to reduce local infant milk producers from 10 in recent years. that is why some analysts say the investigation could fit into beijing's plan to boost consumption of local product. foreign brands may have to soon rely on local partners if they want greater access to the chinese market. >> thanks so much. china is soon expected to be the largest user of robots. turning to the technology to

become more competitive. manufacturers say they are not worried the machines will push lower paid workers out of jobs. from the china international robot show. >> these are the multimillion dollar machines that promise to make our working lives easier. from welding cars and trucks to handling chemicals and the sorting logistics. the future is fast and efficient. >> they will be doing everything , materials, packaging, and with new technical features they will also be doing more and more applications. >> 25 point 5 billion u.s. dollars was spent on robots last year. china is forecast to take over japan and the usa as the largest market for robots. >> china is now at a stage of industrial transformation.

to achieve the goal, china has to gradually change from a labor-intensive tile to a more sustainable and innovative development. robots play a crucial role in supporting the process. it helps chinese enterprises to reduce costs and increase efficiency and competitiveness. >> it is forecast china will have 40 million less workers in the 20-38 bracket compared to less -- 10 years ago because of the aging population. robots are expected to fill the gap. >> the example of a reality of robots in the workplace. a forklift helping factories across the world. usually done by a human, but not anymore. it has led to concerns about the future for lower paid workers. exactly how that -- they will continue to make a living. with technology and trade experts saying human labor will move into john's that need higher skills, leaving -- jobs

that need higher skills, leaving robots to do the more physical, unsafe, and dirty work. >> you do not want people only providing very low value labor. you want to bring the next generation of chinese workers into higher-value that will provide positive benefits. >> do not expect robot reporters or actors just yet. cctv, shanghai. >> music and technology go hand in hand. it becomes increasingly difficult and less lucrative to sell music, artist's are relying tech companies more than ever. the companies are moving beyond creating sounds for artists into marketing and distribution. >> jay-z's new album, magna carta holy grail, has not officially been released, but it has ordered gone platinum. well, sort of. these extensive not by one million copies of the record, which would traditionally give

patent status, but samsung today. they are giving away one million free downloads of the album to users of the galaxy phones. it will be available through an app as of july 4, 72 hours ahead of the official release. media experts think this will help samsung sell more phones and drive more traffic to the online music store. >> it is about brand image. this is a market that is very sensitive. if you have people perceiving jay-z as being hip, that helps the overall brand. >> not all celebrity endorsements help. alicia keys'involvement with blackberry has not revitalized the phone maker. >> it is like the wild west. you need to write the new rules. >> that is because the old rules are not working anymore. the music industry has shrunk by half over the past decade as technology has allowed consumers

to pay less for content. artists need to think outside the box tooth -- to stay in business. a professor of music at nyu says that were -- that is were brands come in. >> you can be a well-established artist and come out, people yawn. one of those things where you have to continue to stay in that world. the number one thing the bigger artists get is money. a lot of money, a lot of exposure. >> most experts believe corporate technology tie-ins will become the new way to distribute content. they also agree one thing will not change -- the content has to be good for fans to stay tuned. cctv, new york. >> heading to hong kong for a check on stocks in a few minutes. we will see how investors reacted to all the volatility rocking the global markets. and streaming media. all the rage in the tech world. i will sit down with the ceo of rope to -- roku after the break.

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we are cctv amerco -- america. >> this will not come as much of a surprise to you. more and more people are watching video content online. also not surprisingly, tv and cable companies are increasingly nervous about their future. companies that appear to be gaining steam are those who successfully stream. joining us live from silicon valley for more insight on streaming media layers. >> streaming media is video content that comes from the internet. the big question, who exactly are the competitors in this space? first there are content providers starting to ride streaming services of their own, then there are cable companies that provide video-on-demand can be viewed on mobile devices. even tv manufacturers like sony are starting to embed streaming services into their smart tv

sets. finally there are set top box makers he can deliver a completely different experience. choices galore in the search for a streaming media device. but even as the u.s. market grows increasingly crowded, two players have risen to the top. apple leverages its itunes ecosystem to deliver content worldwide, having sold an estimated 13 million apple tv boxes in more than 100 countries since the device was released in 2007. but a small company in northern california called roku is turning up the heat, offering 800 channels and having sold 5 million streaming players, primarily in the u.s. >> the user interface is very decent. if you combine lower price and good experience, they could do well. >> the managing director at the business strategy advising firm boston consulting group says the device itself is not the most

important factor. rather, the content. >> i do not know that they have the most, but they have certainly done a good job of aggregating multiple providers and positioning themselves as a third party that is willing to put everybody's content online and who does not feel threatening to the content owner as someone who is going to either extract too much value from the service provision to the consumer or that is going to bias toward one content provider or another. >> but a new threat is rising -- smart tv's that in bad internet content delivery services. >> look at the volume samsung can drive in the tv space. becoming a streaming device. roku is probably going to try to get into the tv's themselves. >> the person with the answer to how they plan to adapt is the ceo and founder, anthony would. the man who also invented the

digital video recorder. they are off to a hot start, with a recent injection of $60 million, including investments from news corp. and hearst corporation. roku also recently began selling its devices in canada, the united kingdom, and ireland. more international plans may be on the horizon. i sat down with the founder to learn how they rose above the competition and what plans are for the future. >> we are doing great. in the united states, if you go to a retailer like best buy or walmart they will have a streaming player section in the aisle. there are probably 10 different products. but literally 90% of the boxes sold our apple tv and roku. we split the market roughly 50- 50. apple is our main competitor, but we sell roughly the same number of his.

we just passed 5 million boxes sold. last year, we streamed over one billion hours of content. >> you provide a content medium. something that delivers content. a lot of analyst say this is something that could be easily copied. what makes you stand out? >> it is difficult to copy the experience. it is an operating system for tv . there is a whole ecosystem, just like around windows and android and ios. there is a roku ecosystem. we have over 800 channels of content, adding one or two new channels of day. the other category is declining. it used to be 16% of the market. now it is 10% of the market. the reason is simple. every day, your player gets better and other does not get better. we just added search as a new feature last christmas, where you can type in a movie or actor

or director and it will show you all the channels where you can find that movie or actor or director. >> it seems a big part is hearing content. what is the trick to getting all these people on board who are going against each other? >> for the larger companies, we generally have business deals. one of the advantages is we are independent. a lot of the big guys who do not like google because they have different positions than news corp. on many issues, or they are worried about getting too close to apple or google , becauseroku is smaller and we are politically more appealing than many of the larger companies. also a big part is being inexpensive. our boxes are inexpensive, which results in consumers buying them easily. it is an impulse purchase. >> at this moment, are you profitable? >> we are not profitable. we view this as a huge land grab. there is a huge market in

becoming the operating system for tv. a very viable position. today we are primarily focused on expanding scale and getting content and building the brand. we are not losing huge amounts of money, but we are not focused on being profitable. although we do have a plan to become profitable. >> $60 million from news corp., b-sky-b, and hearst. what does that mean? >> the company has raised a total of about $140 million. that $60 million was a big piece of it. they understand that distribution is going through a big change, moving away from traditional distribution over the air and cable and moving toward internet distribution. >> this $60 million was not for the box. >> it was primarily focused on expanding our service. becoming the operating system for tv's and growing our service business. >> that is an interesting point. there is a lot of competition

coming from sony or samsung with their smart tv's. are those a strip -- a threat to what you do? >> we think there is a huge opportunity. being a smart tv is becoming a standard feature. fairly soon you will not be able to sell a television unless it has internet streaming built-in. if you look at the market today for a television in the united states, you can segmented into three tiers. you have the korean brands, which are now the top-selling brands like samsung and lg. the japanese brands, which used to be the top-selling but are now mid-tier. then a lot of the chinese brands or american brands whose products are built by chinese companies. that is the fastest-growing part of the market. we're working closely with chinese brands for the u.s. market. focusing on the transition we think will happen, where the brands of the future are chinese brands. >> now, some people predict the streaming media will soon go

away s more people buy tv's -- smart tv's. he does not think that is true. his belief is you do not buy a new tv that often. holding onto it for six to eight years. the easier way to get the latest technology is to update it regularly by buying an inexpensive streaming media box for well under $100. it is like upgrading your phone. interesting. >> live for us in silicon valley. thanks so much. we know europe ended on a sour note because of portugal's plight. wall street closed early today. time to look at asia and see what regional investors are doing. >> bond yields spiking higher and stock prices trending lower, some asian investors are questioning whether we are witness in a new emerging markets crisis. the latest data from china shows the services actor growing at its slowest pace in nine months.

that is contributing to investor jitters about the possibility of more roller coaster rides ahead in the markets. asian shares in the first hour bouncing back after pulling away on wednesday from a near two- week high. hong kong shares recovering at the open after suffering the single biggest loss and student 20. china shares started out on a week now. the chief investment strategist at citi private bank has dismissed the idea of an emerging markets crisis for asia. in his latest report, he says a combination of factors like floating exchange rates and low sovereign debt gives central bankers more flexibility in how they respond to disruptions. a weaker currency should help asian exporters. lower commodity prices should support growth and contain inflation. the latest purchasing managers index from china shows the overall economy is still growing, just not at the same torrid pace economists have grown accustomed to seeing.

for all these reasons, citi private bank has become more positive about stocks, advising investors to increase investment in china and taiwan. the vice chairman of china banking tops a new list of china's best business leaders according to forbes china. the chinese language edition of forbes. he was recognized for leading china's largest nongovernment bank in 2012 to 834% rise in net profit. back to you. >> thank you so much. that will do it for now. before, we want to give you a recap of today's top story. live coverage from here and cairo, egypt. the egyptian armed forces have ousted president mohammed morsi. live pictures from cairo, where the celebration continues. the military said it will install a temporary civilian government and have suspended the constitution. they're calling for new elections. thousands of anti-morsi are

still celebrating in cairo's tahrir square. the center of the popular of all that happened in 2011 that brought morsi into power. to head off possible violence from morsi supporters, the military has flooded cairo's streets. the military has arrested the chief of morsi's political party, the muslim brotherhood. more as the ccc -- cctv and in use to cover what is going on. we will join our friends in beijing for that. thank you so much for watching. are your comments or suggestions, you can always e- mail us. captioned by the national captioning institute --www.ncicap.org--