>>this week on world business... >>as europe tentatively recovers from recession, which countries are leading the way and why. >>the recovery started already some 1 year ago with increased demand in china which then kick-started the south american markets especially brazil >>we meet the 1st lady of malaysia, rosmah mansor and get her take on the crucial role education andthe fostering of gifted children can play in the development of their nations. >>you know the university said it's going to cost us 3 million. i said no go ahead, it's worth it. you know? investing in these gifted children. >>and unmanned aerial vehicles are exploring new territory away from their military roots in what could be a massive new

market. >>hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. since it emerged in september that germany grew three times faster than expected in the second quarter, the prospect of a real recovery from recession in europe came a little closer. but while recovery in a select few other cotries looks robust, others in the eu still sit uneasily on large piles of debt. >>reporter: just outside munich lies the campus of semi-conductor maker infineon. it's one of several german exporters currently staging strong

recoveries. like many german firms, infineon was hit hard by the recession. >>bauer: i'm in semi-conductors for the last 25 years and all these years i haven't experienced such a steep downturn as this one. we were down in some businesses on a quarterly basis 50% as compared to the previous year. all in all the year 2009, was 22% down. >>reporter: infineon's share price tumbled from well over 4 euros to just 40 euro cents. to regain the confidence of the capital markets, the company took drastic action ... cutting costs by 600 million euros, firing 15% of its staff, and selling off non-core businesses. now in 2010, that forced restructuring is paying off. >>bauer: with 50% growth this year, outperforming the 30% growth of the semi-conductor market and with a verybig turnaround in profitability from making losses to making decent double digit operating income and having a good balance

sheet. >>reporter: with 40% of its revenues coming from asia, infineon has benefitted from a pick up in asian markets. business has also been boosted at home where german car manufacturers are restocking their inventories to meet renewed demand for vehicles. >>robertson: we are confident as we come out of this year that we will see some momentum and looking into 2011 wethink that will gradually increase as well. >>reporter: increased demand for germany's exports drove growth of 2.2% in the economy in the 2nd quarter. as a result, the european commission has revised its forecast for german growth this year from 1.2 to 3.4%. germany seems to have finally shaken off its reputation as the sick man of europe. >>windle: while german economic growth in the second half of 2010 isn't going to be as fast as in the first half, there are signs that the german economic recovery is broadening, moving beyond export led growthto more sustainable growth driven

by german consumers. falling unemployment and expected increasesin real wages is persuading german people to start spending again. >>reporter: before the recession hit, germany had the 2nd lowest growth rate in the eu, wages were too high to be competitive with cheaper eastern neighbours and german savings were being pumped into countries like greece, portugal, the uk and the us - helping fuel booms in those countries while germany faltered. >>sinn: now banks have become more risk averse. they don't dare to buy greek government bonds. they don't dare to finance a spanish builder or to buy structured investment projects from the united states so where to put the money? they can buy gold, they can invest in natural resources but the chinese arealready doing it and the prices are high. so they offer their money to the german investors. >>reporter:

while germany is on track to rack up the fastest growth rate in the euro zone in 2010, in the eu as a whole it's expected to be much smaller sweden that records the fastest growth rate, with a 3.9% forecast. sweden, like germany a largely export driven economy, has experienced renewed demand for itsproducts. among sweden's leading exporters is truck company scania. >>ljungberg: senior vp corporate relations, scania the recovery started already some 1 year ago with increased demand in china which then kick-started the south american markets especially brazil and then the asian market took off and now we also see some recovery then from low level in europe. and what we saw in the first and second quarter from the results in this company was that we pretty quickly came up to record levels in margins so i thinkwe had a very positive effect of handling the crisis in the way we did.

>>reporter: swedish companies are benefitting from a strong financial system and access to credit. the country did not experience a financial or real estate crisis on the scale seen elsewhere. sweden's banks andpoliticians learnt their lesson during the country's own financial crisis in the early 1990s, when two banks went under and the others were taken over by the state until they recovered. >>edberg: from the historic experience and the banking crisis in the early 90s, the banks have had a better position to be set and also the policies are in the right place. we had this surplus in the government finance and we had a debt in control which means we had a cushion for taking in the financial crisis this time. and i also think that of course we had little help by our floating currency. >>reporter: swedish company scania now hopes to be back at pre-crisis revenue levels by 2014 but with their largest export market europe still weak, a great deal of uncertainty

remains. while germany and sweden are running trade surpluses and growing well, countries including ireland, portugal, spain and greecehave large deficits, high unemployment, and anaemic growth with credit still hard to come by. europe may have navigated its way out of recession but it remains to be seen whether it can stay afloat. >>the first ladies of many countries often play a merely ceremonial role in society and politics. but last week 14 first ladies and representatives of 28 nations met in kuala lumpur to try and tacklethe issue of how to improve children's education and welfare. the three day inaugural first ladies summit, which was hosted by malaysia's first lady rosmah mansor, brought together the wives of leaders from around the world in an effort to go beyond rhetoric and achieve concrete results. eckart sager sat down with the first lady of malaysia to find out more.

>>reporter: madame first lady, thank you very much for joining us on world business. >>mansor: welcome. thank you. >>reporter: you have gathered here more than a dozen first ladies from all around the world here in malaysia forthe first ladies' summit. what are the objectives of the summit, what are your goals? >>mansor: i feel that each country will have their own peculiar problems, depending on you know the continent,the part, which part of the world you come from. some countries may be suffering from malnutritionof the children, diseases that the children have, birth rates, death rates and other social problems. and we will find a common problem, probably which are faced by all the countries of - by the first ladies in their receptive countries. probably that will be our priority. and later on you know we will talk

about problems peculiar to each country ... depending on the seriousness of the problems in their own respective countries. >>reporter: you've made assisting and fostering gifted and talented children one of your top priorities. can youtalk a little bit about some of these initiatives? >>mansor: our gifted children are really our important asset. you cannot sort of detect a gifted child unlessyou have exams. i took a quick trip to john hopkins university, department centre for talented youth, so, you know, they gave me all the briefings and what other programs they have, how do they do it, who are the children, how do they conduct their exams. and i worked together with our national university. so they formulated a program,

we started at first with summer camps. so we did that, they helped us a lot. we formed a joint venture then they say oh we've got ... you know the university said it's going to cost us 3 million. i said no, go ahead, it's worth it. you know? investing in these gifted children. then i say why don't we have a gifted school? we managed to get about 60 million ringgits. so we have built a gifted school that should start early next year. >>reporter: but you also work with musically talented children, correct? can you tell us a little bit about that? >>mansor: after i've gone through that, i said hey, you know we also have talented children in music, in dancing. i said why waste them, you know? at least if we have got programs like this there is somewherefor them to go to, to develop their talents. so we formed this program

for talented children for music, dancing and also singing. so we've got a choir now, we've got an orchestra >>reporter: girls in particular though, are being marginalized in some muslim countries. what are you doing to address that here at the summit? >>mansor: in malaysia, we don't have problems like that. girls are encouraged to go to school, they are encouraged to further their education. in fact in our universities ... most of our universities, there aremore girls than boys. it may be a problem in other muslim countries where they were more strict about their girls. but i find that they're beginning to come out. when i visited the middle east, i supported the ladies there. i can see that there are more and more women coming out, doing business, going to universities. i can see

that it's a changing phenomenon. it's a changing scenery. the ladies are coming out. but what is interesting is, as i said, we want to be modernized, we do not want to be westernized >>reporter: what is the role of the first lady in the 21st century? how effective can they be? >>mansor: i think the roles of first ladies are changing now. maybe, ten, fifteen years ago ... the first ladies were only supposed to be - to stand beside the husband or even three steps behind the husband butas women are getting more and more educated that role is not relevant anymore. why don't we give a little bit back to the society. if you can give more, so much the better. and to me, that's also what islam teaches us to do. if you are able

and capable, you are supposed to help those who need your help. >>reporter: one last question. what is next? how will you develop the outcomes of this summit? >>mansor: we cannot solve all the problems at one time but let's prioritize. what are the important ones? so that's what we want to do and we would also like to have this declaration. let's hand it over to the united nations so that the united nations is also aware that these problems really exist and becausethis is based on our discussion, our summit. it is not something that we imagine >>still to come on world business... >>the sport with runaway bulls that has become a runaway success in the us >>moving from the military to the mass market. unmanned aircraft could soon be a much more common sight in our skies.

>>on the rise... and the rest in just a moment on world business... >>drones or unmanned aerial vehicles have been used for surveillance by the military for some time. but right now a multi-billion dollar market for drones outside the defence industry could be on the verge of taking off. and it could be one of the biggest growth markets in aerial surveillance for decades to come. >>reporter: when a volcano erupted in iceland last april sending ash into the air - civil aviation authorities imposed the longest peace time shutdown of airspace over europe ever. the cost to airlines, businesses and tourists ran into the hundreds of millions of dollars. was it

an over-reaction? was it safe to fly? this tiny noisy contraption might have found the answer. it's the latest new drone to be developed by some of europe's best aeronautic researchers. with a camera and sensors on board it can read ash and chemical levels and send readings back in real time to any ground base. >>bockman: this drone is actually made up of pretty simple technology. it's only worth say a thousand dollars, however the market for drones could be worth around 100 billion dollars within a decade. >>reporter: the cividrone potential is being referred to as the "3d" market where drones carry out dangerous, dull and dirty surveillance in the place of manned vehicles. in fact it could be one of the biggest emerging markets in civil technology since a bunch of kids built a computer software company in seattle. >>ronfle-nadaud: these drones do not pollute and are tiny and easy to fly. the cost of operating them is

very low andthey can go pretty much anywhere and can carry out various functions thanks to a tiny camera on board. so between the low cost and ease of use they have a real future. >>reporter: just outside the french city of bordeaux - more known for world class wine - a new venture is underway. these building houses start ups trying to get ahead in the civil drone market. at the moment it's a business that is counted in the hundreds of millions of dollars. but that could change very quickly. >>drai: like all emerging markets where there is a huge potential for companies that come up with the right solution. there is no reason why this won't double or triple every few years... this could take off very quickly. drones interest all those who are interested in investing in new technology especiallygreen technology because these drones can monitor activity on a pipeline for example. so a lot of people are interested. >>reporter: one start up is building a series of small drones for the french fire service.

the planes will be able to send data back during forest fires and they cost a tenth of that of a standard helicopter andhundreds of times less to fly each mission. the military market for drones is well established butcivil applications opens up whole new opportunities for both sides. >>mazel: i wouldn't say the military market is saturated because there are new systems coming onto the marketthat are not yet used by the military. take this small device behind me. tiny applications like this could be really useful. on the other hand the civil market is totally new and ready to be filled >>reporter: this man has spent more than 600 million dollars on drone technology. he runs one of europe's two biggest military companies cassidian - the defence wing of eads. >>but he says with the latest drone technology the line is now blurred between military and civil applications. the talarion drone for example

could monitor crowd trouble at a football ground or go behind enemy lines in afghanistan. >>zoller: the business has just started. we are now going for a next generation mission aircraft capacity alsoin an unmanned sector and we will therefore see more and more of such vehicles besides the usage incivil applications. you can't differentiate really between defence and a civil side. it depends on the mission the user wants to conduct. >>reporter: in fact these drones sophistication have made one thing abundantly clear - pilots are in theory at least completely obsolete whether it's a fighter jet or the plane you take on holiday. >>zoller: technology wise... its rather easy going. there is no problem to run an aircraft remotely. the second issue is acceptance of passengers. the people from airbus are ry much aware. so it's not a technical problem. it's more

a problem of acceptance in the market and certification. >>reporter: in fact the applications for drones stretches the imagination. those university engineers you saw earlier ... have just found a new way for bosses to snoop on their employees having a siesta down the corridor. the system just needs to be perfected. >>in the united states, the professional bullriders series is rough, spectacular, and for the best riders, extremely lucrative. from beginnings that could best be described as humble, it's not only developed into the world's premier bullriding competition... but also a genuine entrepreneurial success story... >>mauney: i lacerated my liver, broke all my ribs on my right

side...bruised my kidneys, my spleen. bull stepped on me. >>clarke: i lacerated my liver..bruised my lungs, broke some ribs. i was in intensive care for about 5 days. >>reporter: it is quite frankly pure madness, but it's brilliant to watch and for the 40 men competing on the professional bull riders top tour, a chance to display some incredible skills.... >>mauney: from the time you nod your head that you get off its all reaction. if you're thinking about it it's too late... >>elliot: some guys just look smooth and make it look easy and then some guys look like its just a dogfight every time they ride one. >>jong: so the bulls range in size from about 1100 to just over 2000 pounds. when the rider's ready, he willnod his head, the chute will open. then he's got eight seconds to impress the judges. as you can see he's off

there... and preferably... not get killed. he didn't last eight seconds. >>reporter: the pbr tour is a true american success story...a story that started in 1992 when a bunch of bullriders decided to break away from the broader rodeo circuit that the sport had always belonged to... >>lambert: the first day there were 11 of us and we put 1000 dollars apiece in to form this company and then weoffered it to the top 30 bull riders in the world at that time in professional rodeo. that's where we all came from. >>reporter: 22 took up the offer and they never looked back...today the tour runs over 300 sanctioned events a year and in the last 5 years...icket sales have almost doubled... >>gleason: we'll sell almost 2m tickets this year just in the united states. and then we've got events in canada, brazil, mexico and australia too. >>reporter: if they so wished, those initial backers could today cash in their shares

for over $4m... some have... but others prefer to remain involved with an enterprise that is as much theatre as it is sport... >>rasmussen: we walk a fine line between a professional sport and a broadway show or variety show. and you have to really focus on the competition because to the riders, it's their living, it's their sport. to us,we want to make the ticket worthwhile. >>reporter: a key part of that ticket are the bulls themselves, and some are stars in their own right, worth over a million dollars... specifically bred for bucking, certain animal rights activists have raised concerns about their treatment...but organizers are adamant any criticism is unfounded. >>lambert: ...they're always in great shape... they're fed the best feed because they are athletes and they have to be in the very best shape they can possibly be in and if a bull is hurting in any way he won't perform as well. >>reporter:

a good performance from a bull can of course spell trouble for whoever is on his back, but remarkably, a grueling 11 month tour now pulling in over 100m tv viewers has only one recorded fatality. one major reason that figure isn't higher... the work of the tour's unsung heroes... >>goram: ... sometimes you gotta get your hands on them... sometimes you have to get run over....just whatever it takes to keep them from running over the cowboy. >>reporter: in it's first year, the pbr's champion won less than $100000 in prize money...this year, the top rider will walk away with over $2m. and it's fairly safe to say, he will have earned it... >>it's a man's sport. testosterone... >>there ain't no adrenaline rush like sitting on the back of a bull that's 10 times bigger than whatyou are and trying their best to kill you. >>it looks very dangerous though >>i guess so. it's all about being a man i guess, you know. >>what do you think? >>it's awesome. it's probably the best sporting event i've

ever been to. you know all the energy that's going into it. from the crowd and the entertainment and the rider - just having a blast. it's awesome. >>reporter: but adulation or not... make no mistake... few of these riders are leading a pampered lifestyle... >>elliot: i try to travel as cheap as possible. we split rooms as much as we can, just to try to cut costs down. >>mauney: shoot this year in one week i went from cheyenne on tuesday to livingstone montana wednesday, ubay city california thursday, weatherfrod texas friday and then san antonio i was saturday sunday. >>reporter: and one rule applies to every rider... no show, no dough... >>elliot: we don't' have guaranteed contracts in this sport, you know. if we're sitting at home we're not getting paid. >>reporter: which also means riders are seldom in peak physical condition... >>clarke: it's not one of them things where if you feel sick you're like i'm just gonna stay at home today. you've gotta get on no matter what. >>reporter: it must be said a lot

of riders did seem to be limping. groin strains and torn ligaments abound. allthe riders wear a reinforced vest, but helmets aren't compulsory... but whatever they're wearing for one simple reason...the line between one night's triumph >>reporter: .....and another night's trauma is a narrow one indeed... >>elliot: ...every time no matter what you're gonna hit the ground. >>reporter: but if you don't hit the ground till after the buzzer sounds, the result could well be described as 8 seconds of pure joy... >>mauney: you are on a real adrenaline high after something like that? o yeah. when you hit the ground after going like that you feel 10 foot tall and bulletproof. >>reporter: which perhaps explains why even if their sport seems like pure insanity....for these men, it truly is the sweetest form of madness... >>mauney: my dad always told me from the time i was little...you play the game, you take the pain.

>>elliot: it's just exciting. it's an adrenaline rush. you just can't explain it really. >>clarke: you cant' get that feeling anywhere else. so the day that that goes away is when its time not to do it anymore. >>that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.

ow! of course. thank you. i'd call her honeydew goodbody, not lisa. the very fact that she is called lisa proves that she exists.