>> this is "the journal" on dw- tv. >> and i am with the business desk. >> the headlines. the tunisian prime minister has addressed in the capital. >> and the euro zone has a rescue fund projects. -- project. >> 78 people dead, and more than 1.5 billion euros in damages. that is the bill so far for the unrest in to me show, according to the finance minister --

indonesia -- in tunisia. it may take some time for normality to return there. >> the prime minister announced the transitional government on monday afternoon. many key posts will go to ministers who have already served under the ousted former president. he said he would order an amnesty koran -- opponents and a crackdown on corruption. that may not be enough to quiet passions on the street. hundreds of protesters have been demonstrating in the capital, tunis, and all day. police fired tear gas to break them up. most people blame the governing party and the première for the situation. >> they are liars, criminals,

and murderers. how can you support someone who supported a dictatorship? >> the prime minister has brought some opposition to the government, but once exiled opposition leader has already branded the cabinet a farce. in some parts of the city, people have been stocking up on food and other supplies. many are playing it safe just in case the protests continue. some like this cafe owner have already confined the ousted leader to the dustbin of history. >> and later this hour, we will have an in-depth look on the situation in tunisia and the impact on the entire region. and a former dictator, known as "baby doc," could be returning,

and that could complicate the uncertainty in haiti, as they are still struggling to recover from the earthquake and the deadly cholera epidemic. human-rights protesters are calling for his arrest. >> jean-claude "babuy doc" duvalier once said that it was their part to suffer. >> rejoining the haitian people. >> after his father died in 1971, the 19-year-old baby doc took over, presiding over a reign of terror, where people were routinely tortured and

killed. baby doc continued in his father's footsteps, embezzling millions. in 2007, the president then of haiti said that if duvalier were ever to return, he would have to face prosecution. so far, there are no signs of an arrest warrant for him, who is traveling on a diplomatic passport. he apparently still has good contacts after 25 years. >> we spoke to a specialist and asked how likely it is that baby doc duvalier would ever be brought to court for the crimes committed. >> he might be arrested, but he comes back to haiti at a time when the government is very weak, when the results, the outcome of the election is not quite clear, and he seems to

calculate that in this situation, no one will do any harm to him. their families, their relatives, maybe we will see protests against him. haiti is completely destabilized anyway by the earthquake and the cholera epidemic calm at -- and the cholera epidemic, and he cannot play a role in haiti right now. it looks in public to me, because as i said, his health is weeks, and he is more of an elder statesman who wants to see his homeland once again before he dies. >> and other news, the israeli defense minister has quit his labor party and says he is forming a new party in the

coalition. he says the infighting and the shift to the left has made it hard for him to continue. benjamin netanyahu welcomes the new party, saying it would strengthen his party, particularly in negotiations with palestinians. >> ehud barak made a clear break. he said he is tired of the infighting. >> starting today, we are independent. we are forming a faction, a movement, and in the future, a party that will be a centrist, a zionist, and democratic. >> barak had faced waning support. there was the stalled peace process. it is not clear what the split in the labor party will mean for prime minister benjamin netanyahu. for the president, in the

presence, he will retain barak in a position. >> the investigation of a lebanese prime minister. the leader says he expects members of his group to be indicted. he denies that hezbollah had any role in the killing. the leaders of syria, turkey, and qatar met in damascus to discuss the crisis. here in berlin, a grenade has been found in a parcel mailed to the british embassy. police sealed off of the area -- sealed off the area. no one was injured. it was just two days before a visit. this could be related to a wave of letter bombs in recent

months. officials in brazil have stepped up efforts to rescue victims of last week's devastating mudslide. only recently have authorities reached some remote communities north of rio de janeiro. efforts to help survivors and bring in emergency supplies have been hampered by continuing rains. the death toll has now risen to 650. more people are missing. so then it seems the euro zone ministers cannot even agree to >> maybe it will go on for another day, and i do not even think that then another decision will be made. should it be increased, or should not. more countries in the euro zone could need a bailout. and there could be other countries that need help, like spain, italy, or belgium. german leaders also want to see

other nations getting their finances in order first. >> the eu finance ministers from member states that have the money to help those rocked by the crisis say the euro zone rescue fund will not be given more cash. >> thing goodness. the way the markets have developed last week has removed some of the urgency from these talks. >> he was referring to crisis- hit portugal's success in raising money in the bond markets last week, but they expect this to be reworked in the future. they believe the bigger you economies will have to provide more people the spanish finance minister has also called for a more flexible rescue fund. the math is simple. the interest is less as long as the countries with more provide the financial guarantees. >> i do not see the fund being

extended. there is still room to maneuver, even after the facility helped out ireland. >> but despite the talks, some believe that the healthier economies believe they will have to put up a few euros more. >> i spoke with our correspondent and asked him if he expected any progress at the talks. >> yes and no. i think they're moving towards some agreement in the near future on extending the range, the scope, and the value of this fund. not tonight and not tomorrow, when 27 eu finance ministers meet. one likely, and probably soon, in february. the arguments are many. basically, germany and france are leading those saying, "why increase the fund? and what increase it now?" markets may react badly if they

see a move to increase the funds. they may believe that means there is more trouble around the corner. but others say that, no, we have bolstered it for now and have saved up money for a rainy day, if you like. certainly, there is concern about portugal, spain, maybe belgian, and the need for more money. angela merkel says this could be tiresome. the meeting of the eu leaders on said yuri 4 in brussels will be very important. >> to the markets now, -- the meeting of the eu leaders on february 4 in brussels will be very important. >> the earnings report season is slowly getting underway here in europe this monday. for example, a computer chip's maker, and also a swiss luxury goods maker, they came to the market with their earnings

reports, and even though they beat analysts' estimates with their reports, analysts heavily sold both shares. many people on the trading floor are concerned that this earnings reports season might bring more on the good news. >> taking in on the figures, the european stock market closing lower on monday. trade is typically quiet given the public holiday on wall street. the blue-chip dax is up slightly, 0.03%. the euro stoxx 50 of leading euro zone companies is down, and on currency markets, the euro is trading at $1.32. european airplane maker airbus has scored a surprising victory in the race against boeing. there was a record year in 2010, delivering a total of 510 planes against the for under 26 from boeing.

widget against the 426 from boeing. -- against the 426. >> the airbus c.e.o. said it was not such a bad year for the european airplane manufacturer, but what an understatement. 2010 turned out to be a record year at airbus, which now claims 52% market share for commercial airplanes and a clear lead over rival boeing. >> they want to take the top delivery spot from us in 2011, and offer him a bed. that also in 2011, we will stay ahead of him -- and i offer him a but -- bet/ -- bet. >> airbus also says it has largely overcome problems with

its a380's. rolls royce has had to work of the engines of the planes, which has affected delivery, leading to some restrictions in deliveries. >> in an email, steve jobs is any comic figure at apple, but he says he will no longer be ceo -- an iconic figure at apple. in frankfurt, company it shares lost value on the news. certainly not good news. >> a former banker has given wikileaks disks on clients allegedly had money in offshore accounts. he says he hopes the information

will help shed light on offshore financial abuses. there are a number of politicians and public figures. assange said wikileaks will vet the data before making it public. it is no surprise that the movie about this phenomenon about facebook is taking home awards. they got best drama and best director, but the real top of the evening was a special appearance by michael douglas. -- the real talk of the evening. >> michael douglas may not have won a golden globe this year, but he was treated like a winner because he recently won his butt against cancer. [cheers and applause] -- his battle against cancer. >> there has got to be an easier way to get a standing ovation.

[laughter] >> then, it was on two more winners. >> and the golden globe goes to "the social network." >> the film, about the founding of the social network site facebook, took four awards, including best screenplay. there was a film about two lesbian parents which also took a four golden globes, including best actress for annette bening. she said about her costar -- >> she made it possible for us to shoot it when we did. so, you are a class act. thank you. >> other winners included natalie portman for best actress in a drama and colin firth for best actor. >> annette bening's hair.

hollywood. we are back in a minute.

>> welcome back. the tunisian president was forced to flee into exile after four weeks of protest. a transitional government has been unveiled, and the prime minister has listed a lifting of restrictions on media and human- rights organizations. throughout the arab world, where protests had already started in other countries was unpopular and totalitarian regimes. >> egypt in 2010. people took to the streets ahead of parliamentary elections to protest against the abuse of opposition candidates by police. algeria, at the beginning of january. vonage demonstrations claimed a number of lives. hundreds of people were wounded.

-- violent demonstrations. and in jordan last week, thousands of people gathered in the capital against their government. the images were similar, as are the reasons for the protests. in many arab countries, such as here in jordan, the price of food and fuel has risen rapidly. the government in a mob has announced price cuts, but that has not brought protests to an end. the government -- the government in aman. >> we do not believe it will have any effect. it is just an attempt to bring the protests of the people to when and. >> more than half the population in many arab countries are under 30 years old. that is also true in algeria, where people also have fewer

prospects. the anger is directed at many rulers, many of them koran and holding onto power. -- many of them corrupt and holding onto power. no sign a free and fair elections. -- no sign of free and fair elections. >> how do you expect them to remain silent? we should speak out, as should all of the countries in a similar situation. >> it is unclear how many people have been killed in the violence in tunisia, and while this has raised hopes for democracy, it also has raised fears about it causing similar turmoil across the arab world. >> and for some analysis, we are joined by a member of a conservative think tank. do you see evidence that the events indonesia will cause a similar turmoil? >> -- into mischa -- in

tunisia? >> wow we have observed in the last couple of weeks, we have similar acts, like in syria and egypt, but we have to look at each country with its proper conditions. >> do you think the new tunisian government is really willing and able to introduce the kind of democratic reforms that the people are demanding? >> i think for the time being, there is not real alternatives. there is the revolution, which showed the political -- to have democratic principles implemented, i see even in the creation of the noun national unity government that people are willing to do so. >> what obstacles d.c. in the way of a peaceful period of

change? -- what obstacles do you say? >> the new national unity government has to have a lot of reforms. for example, it has to prepare for the elections. it has to establish an independent electoral commission. this is one obstacle. the second obstacle is the government includes also some technocrats and experts from the former government. i think this is an important step, because it would be an illusion to pass through this condition period without people who were not part of the court to behavior were not part of the court behavior. >> what can they do -- people who were not part of the corrupt behavior.

>> what can they do? >> first of all, we should not forget that the area was already very active. but the first thing is that we should give the ownership to the people, and i think what happens now indonesia is the jasmine revolution of the tunisian people -- now in tow mischa -- in tunisia. >> if this is successful, where will leave the country in the region? >> this is a very difficult question, because the whole of people, turmoil came up, and i think for most of the people, it was unexpected. but nevertheless, i think the challenges are there. what i hear is that the people are aware that the people have to stick together, and the conditions to really do this is very good.

people in tunisia are very qualified. the economic development is one of the best in the whole region, so i think if they do not pass through this process successfully, they have to lose a lot. >> thank you very much. >> thank you. >> tunisia was once a french ecology -- colony, and there are also other french colonies and other countries, belgium. many fled the country to escape the regime of ben ali. >> he calls his family in india from his home in belgium. the telephone allows him to stay in touch with his younger brother and to find out how the others are doing. >> we are very lucky nothing has happened to my cousins or my brothers and sisters.

>> the family has lived in belgium for 34 years. their strong -- small restaurant is doing well, but the events in tunisia worry them, and their planned trip back home has been called off. >> i called my father yesterday, and he was almost crying. so much is broken in our village. >> he does not want to miss anything, and he watches the news every hour. he has not had much sleep recently, but the family does not quite believe that change is real. >> we will not begin until the entire government is gone. my family over there says the same thing. we will have to wait and see. >> another is also quite careful. he and his family have lived in brussels for more than 10 years, and in belgium, and he speaks openly about his country.

what he writes back home is more guarded. "i hope everything is well," he writes to his sister-in-law. "anything else would be too dangerous." >> in the 23 years of dictatorship, there has been nothing but oppression. you cannot go into a cafe without worrying about spies. even the wall seven years. -- have years -- even the walls have ears. >> many write under pseudonyms, and they do not post photos. he definitely wants to go home some time. rashid says the same thing. he would rather go home today rather than tomorrow, but only when it is safe. >> i want to take part in free elections with my son. >> but until there is freedom in tunisia, they cannot.

>> that has been our "in datz" this hour. you are watching dw-tv -- this has been our "in depth" this hour. stay tuned. captioned by the national captioning institute --www.ncicap.org--

>>this week on world business... >>walmart snaps up some prime retail businesses in africa >>africa is not for sissies. it's a very interesting business environment. certainly there are great opportunities and there are great threats as well. >>it stages staggeringly expensive olympic games and is an economic powerhouse, so why does china still receive millions in foreign aid? >>i'm not saying this is a taboo question but it's a question that for the time being our leadership, let's say, has decided not to take an aggressive stand.

>>hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. in the 21st century investors are sizing up africa with some of the same hunger that the colonial traders did in centuries gone by. despite much poverty and badgovernance, there's a burgeoning middle-class which so far is relatively untapped. now the world'sbiggest retailer has gone shopping in the continent's most successful country. >>reporter: walmart has been looking for a route into south africa for some time and now it has made its move. it is buying a 51 percent stake in massmart, one of the country's biggest wholesalers which also owns several store chains including game and builder's warehouse. with 288 stores in 14 other african countries total sales

last year were 7 billion dollars. >>heather scott cape town, south africa africa is seen as the new frontier for growth and many companies want to be in at the beginning. consumer spending in the continent as a whole is set to rise from 860 billion dollars in 2008 to 1.4 trillion dollars a year by 2020. >>reporter: there are now 1 billion people living in africa and its one of the world's fastest growing retail markets. africa's largest food retailer, south africa's shoprite, has pioneered expansion outside its borders and operates in 16 countries across the continent. in the past shoprite's chairman has been quoted as saying that walmart is the big gorilla in the retail jungle...yet believes the market is big enough for everyone. >> wiese: we think there is enough business for everybody and we hold the philosophy that business stimulates business so we don't lose sleep over losing any of our fruit but we have

to protect our patch. >>reporter: the other big food player in south africa is pick n pay with sales over nearly 8 billion dollars. italso has a presence outside its home country but only in southern africa. former chairman raymond ackerman is seen as one of the gurus of south african food retailing and had seen an outside approach coming. >>ackerman: well, they were looking at south africa for about a year. we were one of the people they spoke to plus the other retail chains. we were expecting it. i'm not particularly happy about it personally but that's a selfish attitude because we are going to have to fight even harder that we've had to fight to build our company but i think it's going to be good for the country. >>reporter: and indeed walmart's advance has accelerated the streamlining of pick n pay's own business. >> ackerman: we have always said to ourselves we want to be world class long before wal-mart came in...but there's no question when there's a threat like this, we are working very actively

on getting our distribution better than it was...with central warehousing...which we had planned, we are now advancing it and we are doing a lot of things that we would possibly have waited a couple of years. >>reporter: it's not only the big players that will be affected and who will change their strategies, cape unionmart has 100 stores in south africa selling general clothing and camping goods. >>kravitz: wal-mart is very strong in those areas, so wal-mart will be the lowest cost producer or importer. there's no question about that. we are not going to play in that space. we are going to move up thetechnical ladder, we're going to try and enhance our products with greater added value, greater technical features and hopefully use our smallness to carve out a particular niche in the market. that's what we're going to do. that's survival. >>reporter: the trades unions aren't happy with walmart entering the south african market. the congress of southafrican trade unions says they're very

concerned not just from the workers' point of view but also walmart's procurement policies and its effects on local manufacturers: >>vianello: on the food side wal-mart/massmart is not that powerful...very little food is imported into this country. i don't see that changing under wal-mart's control. on the general merchandise/apparel side...i think people may have conveniently forgotten that the major part of what wal-mart sells and what massmart sells, is imported already. >>kravitz: you know they always say that what made america great was the two words, "you're fired!"...that doesn't apply in south africa. in south africa it's a much more caring community. >>ackerman: .. i think the unions have got to change their attitude and wal-marts has got to change theirs when they come here. and i believe wal-mart are flexible enough. and they've changed their attitude in quite a few countries...towards unions.

they're not just anti union. >>reporter: but how great a prize is massmart's portolio of shops outside south africa for walmart in the short term? >>vianello: massmart is 92 percent south africa and 8 percent in the rest of africa. i have no doubt that wal-mart did not buy massmart for the 8 percent. the first target is the 92 percent and there are huge opportunities for them to grow their business in south africa in various fields. the 8 percent to me, is the cherry on top of the tree. >>reporter: although the rest of africa has great growth potential, problems of infrastructure, distribution andthe supply chain will take some time and money to sort out: >>kravitz: you know africa is not for sissies. it's a very interesting business environment. certainly there are great opportunities and there are great threats as well. >>wiese: it is difficult and there's a lot of catch up to be done

in terms of infrastructure development, in terms of having access to trained staff to work in one's businesses. there's a lot of really hard work to be done. but we believe that the rewards, the potential rewards, outweigh the risks and certainly compensate sufficiently for the effort. >> ackerman: we must get, make sure that our leaders our african leaders, behave in the right way to attract the world. and a lot of them are. i believe that the potential in southern africa and in africa, is enormous. with the mineral wealth... the number of people who desperately need modern marketing and modern methods and modern manufacture. >>reporter: investment in the retail sector in the rest of africa is likely to gravitate towards where the moneyis, where there's oil or gold or minerals or diamonds...that's where you'll find the consumers withthe biggest spending power.... >>vianello: in many, many parts of africa there are pockets of wealth,

spending money...generally in the capitalcities or capital city and major let's call it industrial or commercial centres of the countries...in africa where you have government and, of course, you have a lot of ngos and non government people. and that's where the pockets of wealth are. >>reporter: in the meantime the workers at massmart in south africa are likely to be very happy with the walmartdeal. in one of the most successful black economic structure schemes, each employee was given free share options 3 or 4 years ago. walmart's offer of 2.4 billion dollars for just over half of the business means that if the workers exercise their options, they will make a profit of 200 percent....something walmart is hoping that africa's retail potential will eventually do for them. >>china is now the world's 2nd largest economy and growing

at a blistering rate. the country also spent billions of dollars on showpiece events like the olympic games and the shanghai expo. so why areother countries still sending aid money to this economic powerhouse? >>reporter: bucks for bamboo; in rural sichuan, europe's taxpayers are funding a two and a half million dollar project to help revive, boost and sustain stocks of this fast-growing, versatile, substitute for timber. >>reporter: managed by the international network for bamboo and rattan, inbar, the programme also promotes saferfactory working conditions, more effective marketing and greater use of bamboo in construction. thegoal is to strengthen economic recovery in a region where the production chain was destroyed in the2008 earthquake. but there's a long way to go. >>yiping: a lot of problems, i think, for the workers' safety, for resource efficiency - so i think this project can

bring a lot of experience or expertise from outside to help with lots of people. >>reporter: indeed - but in europe's age of austerity, why isn't china financing projects like this itself ? the world's second largest economy has some 2.5 trillion dollars in foreign reserves. yet it still welcomes 2.5 billion dollars annually in foreign aid - 70 million dollars from the european commission's budget alone, millions more from eu member countries including cash-strapped greece and ireland. >>abou: we try to adapt smartly to this situation where we have to help a country which has huge financial means - but i can say that in spite of that, these programmes that we are helping would not be done if there was not our help. >>reporter: poverty reduction, environmental protection, strengthening civil society - these kinds of targeted programmes are actually political priorities for major

donors like the eu, the us and japan. but there's also a legal explanation for aiding china. >>reporter: for sure, china has the means to dazzle by spending billions on events like the shanghai expo and the beijing olympics - not to mention a hundred billion dollars annually maintaining its military. and the country has also emerged as a multi billion dollar donor itself - though it's accused of propping up unstable african regimes as it seeks valuable mining rights to feed its industries. >>reporter: but despite having most of the world's billionaires, china's per capita annual income is below 4,000dollars. and so, under the framework of the organisation for economic co-operation and development,the oecd, china still qualifies for international aid. >>abou: i'm not saying this is a taboo question but it's a question that for the time being our leadership, let's say, has decided not to take an aggressive stand. >>reporter: in 2008. oecd member japan

contributed over a billion dollars to china. while germany, the second largest donor, provided half a billion. france and britain each earmarked over 200 million dollars, the us, 65 million. britain and germany, however, are now re-focusing their efforts on more impoverished countries - though they remain major contributors to the eu budget. but ever-mindful of trade relations, most governments tread carefully with china - least they offenda notoriously suspicious and sensitive recipient. >>yongjian: giving aid may show friendship towards china and it's also a way of communicating a message. if you stop aid to china, it may send china a political signal. it might mean that you won't be so friendlyas before. what do you want to do? this can affect bilateral relationships between countries. >>reporter: europe exerts more soft power through its training programmes for judges.

if the justice system functions better, then eu companies stand a better chance of legal re-dress if their rights are violated in china, where piracy is prolific. >>mackie: the eu is also providing expertise to help china construct a social security system. the thinking is, once chinese consumers have an adequate healthcare, unemployment and pensions safety net, then they'll save less and so consume more. for eu companies, if chinese spending boosts, then imports should increase too. >>reporter: it looks like clutching at straws, and indeed taxpayers in donor countries give their politicians short shrift for funding china to such an extent - given that it's a major competitor with trillions in the bank. but the aid equation is complex, as targeted projects can deliver substantial long term benefits. by focusing alone on the cash pledged today, you don't necessarily see the wood from the trees.

>>still to come on world business... >>high tech homes for the elderly that could save a fortune for governments. >>and why a top cycle manufacturer and a top cycle team have joined forces . >>a winning combination? and the rest in just a moment on world business... >>in western europe, populations are aging rapidly and soon there won't be enough retirement homes. on top of that governments don't have the money to build new homes or handle the huge medical costs of looking after them. but there are some new developments that could enable the elderly to keep their independence at homeand at the same time help cut national budgets. >>reporter: madame bertrand is in her late 80s - and lives on her own. this morning her daughter

dropped by to check up on her and read the local gossip together. however even if she can't visit, she knows her mother is ok because she is one of 2000 elderly people the local council has equipped with an emergency bracelet. she can push a button on the strap whenever she needs assistance. a team responds immediately. >>bertrand: translation i sometimes visit people in retirement homes. and they tell me they can't do what they want and would rather be at home where they feel more free and independent to do what they want." >>reporter: madame bertrand lives in a region of central france called la creuse. one-third of the population here is 60 or above - the highest proportion in france, but within 15 years the rest of the country will face the same demographic crisis as the population lives

longer. retirement homes are expensive, at around 3000 dollars a month per person so local authorities are keen to save money by keeping people at home - safely. >>morival: "we really have to innovate. we are using this demographic weakness in our region to our advantage. we want to turn the issue of how to handle an aging fragile population into a business opportunity for the local economy by looking at ways of developing this sector but with care at the centre of our thinking." >>reporter: what is being done in la creuse has triggered a race to develop new solutions so the very old can continue to live at home. this may be the future for the elderly. it's called "la maison intelligente." developed by scientists and software engineers, the kitchen cabinets, tables and sinks adjust to your personal requirements, while a central computer monitors data from numerous

appliances within the home and sends the information to a remote monitoring centre. the computer reads information from sensors across the home that can detect sudden rises or falls intemperatures. sensors also record if a person has fallen and hasn't got back on their feet and the computer can switch on video cameras to enable family members to check up on loved ones. sensors canalso trigger lights in the floorboards when a person gets up from the bed to go to the bathroom. >>bockman: " wiring up this intelligent home has cost around 400,000 dollars - in the long term there is no way governments or individuals will be able to afford this kind of bill". >>reporter: the hope is that the private sector will ease the burden on the state by entering the market attracted by a growing market of elderly that increasingly value their independence. >>campo: "this is a huge market not

just in europe but worldwide because we will have an increasingly aging population that will need to be cared for now. even now we no longer have the means to look after ourincreasingly aging population and we have to think about solutions now for the future to allow elderly people to be able to continue to live at home." >>reporter: geriatric hospitals are also looking at opportunities to reduce long term health care costs for the elderly by allowing them to live at home. meet compay, r2d2's distant cousin. hospital researchers working with the private sector have developed this robot that sends video in real time to a monitoring centre drastically reducing response times to someone who may have fallen in their home and needsurgent help - in this case it's just me... >>rumeau:

"most elderly want to stay in their own home, they love it they have built a life in it and they want to say there. there is no reason why elderly people should not benefit from computers and high technology and telecoms and all that is available to each and every citizen." >>reporter: the number of people 80 years old and over is expected to increase by 130% across western europe within the next 50 years sapping already over stretched government budgets. this economist has studied the issue. he says the only solution is privately funded long term care subsidized by the state. >>lozachmeur: " i think one way of handling the problem is to rely on the private market. and why not a solution program to subsidize the premium paid

to insurance companies in order to develop more the market." >>reporter: meanwhile back in the creuse - madame bertrand is preparing lunch - today it's lean meat cooked in water not fat - accompanied by steamed endives. she has every intention of living a long healthy life. >>worldwide, the sport of road cycling is currently undergoing a surge in popularity. but whether you make bikes, or ride them at the highest level, staying ahead of the competition is a constant challenge; and forming strategic partnerships can be a crucial part of the business plan... >>reporter: at the top end of cycling...the difference between success and failure can truly be a matter of millimetres...

>>reporter: which explains why here in morgan hill, california, the htc highroad team are in search of the tiniest improvements... that'll be repeated with every turn of the wheels...... >>hall: riders generally pedaling 90 rotations a minute, which probably ends up being hundreds of thousands of rotations so if we can align a knee better it's incredibly effective. >>reporter this session is quite literally a fitting way to begin a new multiyear partnership between the team with the most wins in pro cycling over the last 3 years and one of the sport's most iconic brands... >>stapleton: when you think of running you think of nike. when you think of cycling you think of specialized. they're the best of products, the best in brands, so they're the kind of products we want to have. >>reporter: those products spring from a firm founded in 1974 that, with 11% market

share...is now the united states second most popular cycle brand. yet to be honest...when you're here...it feels less like a company than a collection of individuals who share an actively encouraged passion of the two-wheeled variety... >>sinyard: our culture is to have fun, work hard, ride our bikes at lunchtime, ride our bikes at the weekend and part of that healthy creative energy. >>reporter: of course the true measure of just how funky an office is is whether it has a fireman's pole...and yes....this one does. >>sinyard: i learned a long time ago my philosophy that is really the way to do it. just having a very open, everyone sharing very openly and also having fun with it. >>reporter: but when it comes

to the serious business of keeping pace in a global cycle market worth around $65b...the company follows one simple mantra... >> egger: we have crazy ideas. we're thinking 5 and ten years out what bikes will be like. maybe there's something where if you think about shifting the bike it shifts for you. maybe it's something where the geometry of the bike shifts whether you're descending or climbing. something like that. >>reporter specialized produced the first mass produced mountainbike in 1981 and mountainbikes still dominate the bicycle industry in the us, with about 38% market share, compared to around 15% for road bikes...but that may be changing... >>egger: everybody's starting to see how exciting road cycling is. >>reporter: however big that road market grows...specialized is hoping an endorsement from a 15 x tour de francestage winner, and one of sports most driven

competitors will pay dividends... >>cavendish: as long as we go out and destroy people, that's what i get out of it... it's what i love doing. i want to be the best of everyone else. it's as simple as that. >>reporter: of course, in order to destroy the opposition...preparation is crucial...and pre-season...that includes checking engines that are around 70% larger in volume than a normal persons... >>koschyk: to build this kind of sports heart it takes 4,5, 6 hours a day, 5 or 6 days a week. this is only done for example by cyclists or cross country skiers or long time runners for example. >>reporter: in a highly repetitive sport like cycling...exercises designed to build core strength and encourage symmetry also play a key role... >>garderen: if something's just a little off even by a couple

of millimetres then you're greatly increasing the chances of injury or you're less efficient in the transfer of power ... >>riepenhof: so what we try to do is get them all balanced before the season starts, and even before high intensity training starts. this reduces overuse syndromes and also injuries. >>reporter: miniscule equipment adjustments then complement the exercises.... >>post: if you take a look at a riders' foot, you'll notice that their big toe typically sits up much higherthan their little toe. so every time they push down to put power on the pedal they have to push thru all that collapse. that's not helping them go faster. so what we wanna do is turn that foot into arigid extension of the pedal .. give them a firm platform. >>reporter: in short...this year htc highroad aims to do whatever it takes to squeeze what it can out from a budget of around 13m euros...a middling amount in pro cycling. >>cavendish: it's not a hobby. we're not

doing a hobby now. it's a professional sport...it's a commercial thing. we have to provide our sponsors with the publicity they want. >>and if this new partnership is the best way to do that, it may just be a match...made in heaven... >>that's it for this week's world business. thanks for watching. we'll see you again at the same time next week. hi, i'm rick steves, with more of the best of europe.

venice seems to be every italy connoisseur's... prague has always been beautiful... germany... the irish civilization... the eiffel tower was built... hope you've enjoyed the magic of...

stonehenge is roped off and viewable only from a distance, but england is dotted with less famous but more accessible stone circles. my favorite... avebury. the avebury stone circle, just 40 miles away, is as old as stonehenge and 16 times as big. and best of all, this megalithic playground welcomes kids, sheep, and anyone interested in a more hands-on experience.