♪ >> hello, welcome. this is the eternal. i am chain. >> and i have the business news. >> divisions of the g-20 summit as participants debate trade and currencies in seoul. after the last election, iraqi parties agreed to form a new government with nouri al-maliki as prime minister. >> investors jump more irish bonds as fears grow that ireland will become the next home of the european debt crisis. ♪

>> hello and welcome. the host of the g-20 summit, and young back, has surged to summit leaders to work towards a meaningful conclusions of intentions over the world economy. major differences emerged between the united states in big exporting nations like china and germany. both countries have criticized the federal reserve's latest round of monetary stimulus and rejected washington's proposal that excessive trade surpluses should be kept. some observers have warned this could turn out to be an acrimonious summit. >> the german chancellor had a small victory to celebrate right from the start of the g-20 summit. the group agreed that it would not seek to limit excess of trade imbalances, which the u.s. had lobbied for. >> i made it clear that it is very important to us and we have

received a lot of support on this that we have free global trade without protectionism. because that way, a lot of jobs can be traded in germany and other countries. >> other disagreements await u.s. president barack obama at the summit. many g-20 members are not happy that the u.s. is again pumping money into the market through a renewed policy of quantitative easing. here, too, the greatest opposition comes from chancellor merkel, which she repeated in a one-on-one discussion with barack obama. it was likely to have been a tense conversation. the two have n n often found themselves on opposing sides. but the other summit participants can also expect tough talks over issues such as currency policy. merkel did have a less taxing event, the women's university in seoul awarded her with an honorary doctorate in political science.

>> we will be taking an in-deptt look a the g-20 summit later. at least 15 people have been killed and 100 wounded by a car bomb attack at a police compound in karachi, the largest city in pakistan. officials suspect the blast was a suicide attack. the assailant apparently fired guns and then drove the vehicle filled with explosives into a building in the compound. the blast leveled at the structure which at the detention facility. police were holding criminals. the compound is in a high- security area that is home to the u.s. consulate, luxury hotels, and regional government offices. iraqi political factions have sealed a power-sharing deal, ending more than eight months of deadlock following an inconclusive general election. nouri al-maliki will stay on as prime minister and convene a new cabinet at the end of next week. the deal came about after the secular leader give up its opposition.

under the plan, a key posts will be distributed among the shia, sunni, and kurt communities. earlier, we spoke with the reporter in baghdad and ask whether this agreement will create a stables government capable of ending the violence in iraq. >> we found much hope. i think we are at a stage in iraq or any government is better than what we had. it is a national unity government, so it has representations from all sides, many of whom are deeply it odds with one another. that could create problems in the future. but i think the government will be formed to fill that existence in the country that has been fueling the violence and sectarian activivies. >> will the new government be able to address some of the other issues which of been on hold for the last eight months? such as how to share iraqi oil profits?

>> well, i think that should be a priority for the new government. i think it is possible that the power struggles over fuel sharing -- a big problem is created by the fact the the kurdish region in the north is keen to make the most of it. there have been disagreements on how to arrange this. but the kurds have had a lot more influence in negotiations with the main parties in iraq. it may be that because of this, any deal that is hammered out might benefit them sooner than what might have otherwise happened. >> germany's federal aviation agency has carried out a series of raids at airports across the

country in order to identify vulnerabilities in security. it is after one of two possible bombs and to infer addresses in the united states was routed through cologne airport. the german government wants tighter controls over cargo deliveries and authorities and inspecting all cargo companies operating in germany over the coming weeks. in a fine working group melt -- will make proposals on how to handle freight from countries with unknowns security standards. we have been talking about the year all week. >> renown, it is all about ireland. is arlen on the brink? investors are unloading irish bonds in droves, a strong signal that little confidence that ireland will be able to pay its debt. on thursday, the yield for irish bonds and shot up to 9%. analysts say dublin will probably have to ask the eurozone for a bailout, just as greece did. >> as the european winter looms,

temperatures in ireland are falling. but on the international financial markets, things are heating up. investors are demanding record interest rates of up to 9% from the irish government to refinance its mountain of debt. the country's chief anchor is realistic. >> we will never get back to the yields that we had before the crisis in to thousand five and 2006. because the crisis has exposed the scale of the risks can -- that can be involved, and investors will want to be compensated. >> it is not just ireland that is affected. a debt crisis pattern is emerging. first, interest rates for greek government bonds shot up. when eu civic, there is temporary relief. now they are upping the bond yields for ireland and portugal. the eu commission president tried to ease concerns ahead of the g-20 summit in seoul, saying the eu has the necessary

instruments to tell about debt stricken states. but the 750 billion euros to do that all the projects countries threatened by acute insolvency. as the greeks are discovering, it does not solve the core debt problem. austerity measures imposed by athens are deepening the recession and lowering state revenue. >> some good corporate news know, simons has increased its dividend to shareholders by 70%, a huge sign of confidence in the company that it will be able to continue generating more income. cells rose in the last 12 months by 8%. profits jumped to four billion euros. >> the message from the seamen's boss is clear, after a corruption scandal in 12 years of restructuring, simmons is a normal company again. they're concentrating on three areas, industry, health care, and the environment. in the near future, the company expects so-called green technology to make up half of

its sales. >> globally, we are by far the company with the most wide- ranging environmental portfolio with 28 billion euros. we have more than 140,000 staff and 16,000 patrons in the sector. >> with a presence in 190 countries, there profiting from resurging world economy. its biggest current problem is a lack of skilled labor in germany. >> that is the central issue for me when we're talking about competitive strength and innovative leadership. we have 3000 vacancies for engineers and we cannot fill. >> solving this issue is his priority. >> european stock markets ended lower on thursday. new worries over ireland's of fiscal health a weight on equities. plus, pessimism about the result of the g-20 summit in south korea. we got this wrap up from the frankfurt stock exchange.

>> siemens must be regarded as one of the highlights of the past quarterly results of the reporting of a lot of companies. siemens delivered in terms of profit in by hiking its dividend, strongly hiking in. investors really loved that. and they made at the siemens the strongest share of the day, and it gained tremendously. not all shares gained. banks lost, not only here in the german market but also on europe-wide. there's a lot of worry about the act of the european debt crisis. ireland is now in special focus. people are almost taking it for granted that ireland will be the next country to need the rescue package. that is also one of the reasons why german public bonds were very much in command. they have the reputation of being a safe haven in crisis times. >> all right, thank you. let's look at how the markets ended the session. the dax index went into the

evening slightly positive, nothing to talk about. more reflective image of how markets fare on thursday is when you look at the euro stoxx 50, down by about 0.5%. in new york, a downbeat outlook by cisco systems, driving the market lower in late trading. it is down by about two-thirds of the present. the euro continuing to lose muscle against the greenback. $1.3653, the lowest level since august. europe's aviation safety agency has issued new tougher safety checks for the engines on all a380 jumbo jets. it is after an engine failure last week on a qantas a380 near singapore. since then, that have grounded the entire fleet. lufthansa also uses the jets and will do more checks during scheduled downtown. airlines have said the stepped-

up maintenance will not cause delays. all right. back to you. >> all right, thanks. cerenies have taken place to remember the 155 people killed 10 years ago when a mountain train caught fire in an austrian ski resort. distal passengers escape when the blaze broke out in the tunnel. tenures on, victims' families are angry that nobody has been held responsible. -- 10 years later. >> buried families -- a bereaved families joined the group here. lessons have been learned from the tragedy. but words do little to alleviate the anchor of some relatives. >> this day must not pass without as raising the issues we still battle with. >> we cannot understand that no one has been found guilty. >> the fire started in the

mountain train as it climbed through a tunnel. 155 people died in the flames or suffocated. but what still angers many relatives of the victims and survivors is that a court acquitted all 16 people charged over the disaster. the fire is believed to have been sparked by a faulty phan heater manufactured by a german company. prosecutors investigated and arrived at a different conclusion to the court in salzburg. according to their findings, the trial should have had a different t tcome. that is just one reason why the bereaved families have vowed to fight on. relatives attended in a formal complaint -- complain to the european court for human rights, hoping it will lead to a retrial. klaxons and on the currency markets is moving investors to look for a safe haven, not only in gold but also in diamonds, rare gems, and works of art. the new york auction house, christie's, sotheby's, and

philips are setting records as rich art lovers turn their cash into hardcover. turnover is expected to remain strong. >> the banks since dined cartoon style painting sold for $42.6 million. making it the u.s. pop artist most expensive work today. for the art market, it was an encouraging end to the fall auction season. since 2008, purchases had declined. but now bidders are back with buyers from the u.s. dominating. >> i think we can confidently say that the art market is with us. there is the feeling that art has held up extremely well as an asset class against other asset classes. so a lot of people so confident. " two weeks of sales, new york auction houses, christie's, sotheby's, and another brought works under the hammer for a combined price of over $1 billion. buyers seem to be increasingly

interested in vesting in contemporaryorks. >> some of it by is a great piece of art like the crossover -- like a picasso or margarine artist is moving towards -- [unintelligible] so it becomes one market. >> of the same time, some works that were expected to sell high left better school. one andy warhol paintings sold for less than half the estimate. but there were enough record sells to leave the business optimistic about the coming season. >> one says he will not stand for franz beckenbauer reelection franz says he will not stand -- franz beckenbauer will not stand for reelection for fifa. he says he has enjoyed his time on the committee, but he wants to spend more time with his family. he will make his last appearance

fort franz beckenbauer with the nominees to host the two dozen 18 and two dozen 22 world cups are announced in early december. but he will not disappear from public life completely. he will remain the honorary president of his support former club in munich. it is that time of year again when everyone gets very excited in germany. german-speaking countries and regions. on november 11 marks the start of the carnival season, which is especially strong in catholic areas. it was kicked off. 11 minutes past 11. there we go. meanwhile, repent north dakota. the stronghold -- repent indeed. revellers welcome to the fifth season of the year. what does that mean to cologne? carnival climaxes in early march with the gigantic parades'.

it is a lovely time before ash wednesday and this season of lent. and it will put an end to all this tomfoolery. >> have you ever seen cologne climax? >> i have not. >> it is amazing. lots of store.

>> hello. welcome back of the g-20 summit in seoul has to deal with deep divisions between leading economies trying to narrow differences on exchange rates and trade imbalances. asia has been gaining more and more weight in the global economy. the economic crisis did not hit asia as hard as the u.s. and europe. case in point is south korea's economy, or the g-20 is taking place. it is expanding at a merry clip with growth around 6%, much of it due to exports. but consumer spending is also playing a role. >> the daily consumer may him in seoul's shopping district. shopping is one of south korea's

favorite pastimes. there is no visible trace of an economic downturn here. and well-heeled tourists from japan and china helped keep sales booming. it is a golden age for retailers in the south korean capital. the demand for luxury goods has already surpassed levels reached before the global economic crisis. sales of cosmetics, expensive handbags, and high-end cars that run between 30% to 50% on last year. european designer labels have been the biggest winners of the shopping spree. >> even last year we could hardly feel the effects of the crisis. we did not experience the turnover collapse seen in other countries. this year, our business is growing strongly. south korea has become one of our most import markets worldwide.

>> south korean companies are also posturing. automakers are also benefiting from an upswing in exports. kia motors posted record profit increase of 66% in the third quarter. but the south koreans are concerned the pace of growth could soon stall. the weak dollar has led to a strengthening of south korea's currency. this is putting pressure on south korean exports. it threatens the global competitiveness. >> the vley of the south korean woyuan has to be controlled. ap's another business depends on foreign sales, so the weakness of the u.s. dollar is a big problem for us. >> as an explanation, prius defending similar interests to

germany at the g-20 summit. it is resisting u.s. calls to reduce its ballooning trade program. >> the biggest asian exporter is china, which this year overtook germany as top exporting nation. china stands accused of keeping its currency artificially low in order to keep its products competitive. the u.s. federal reserve has just pump more freshly minted money into the economy, letting the u.s. dollar plunged. such currency moves are vital for small and medium businesses depending on exports. well, we look at a firm in hamburg which produces machine security vals. >> unless it is airtight, a valve is useless. this company is based in hamburg, but two-thirds of its products are sold abroad. each of valve has to understand the quality controls before export. every one is tested to its

limit. which can be loud. >> the pressure is a very high. we can test up to just over 500 bar. >> it is dangerous. it is bulletproof glass. that is why we are calmly standing around. >> but there are dangers for the managers to deal with. many of their valves are exported to the u.s. and china. if these countries implement policies to the value their currencies, german exporters pay the price -- to devalue their currencies, german exporters pay the price. >> it could take up to a year from receiving an order and so the bill was finally paid by the customer. reprieve finance the goods. and in the course of the year, our results could be strongly influenced by currency fluctuations. >> meaning profits -- >> yes, ultimately our profits.

>> as a medium-sized enterprise, a few options to protect themselves against currency fluctuations. this is made parts of its export business of far less lucrative in recent months. >> in the short term, we bite the bullet. but over the medium term, there must be consequences. >> and those are? >> investments in foreign markets. >> in china, for example, the currency devaluation race between the chinese yuan and the u.s. dollar makes potential investors nervous. >> we carefully consider where we locate -- where we locate our subsidiaries. we look at the markets and reliability and stability play very upon role in deciding. >> currencies irrelevant? >> the currency is very

relevant. >> of the global currency imbalances continue to persist, it is their entire business that will have to withstand a pressure test. >> the multibillion-dollar bailout of banks from three continents with taxpayer cash have led to painful austerity programs for millions of people who are seeing their futures level. in britain, students have rioted er the tripling of university fees.. the bank bailouts there were supposed to help small and medium-sized businesses. but so far, most of them have not seen affordable loans if any at all. >> coffee breaks with his wife instead of with colleagues at the cop -- at the office. chris became self-employed two years ago and has since worked from home. although his business ideas have been well received dummy cannot afford to pay for office space.

he uses his mobile phone for adveising. yes the website, partners, and a business plan. but his company has not received a penny of credit from the banks. >> what they said was although we like it, until you have proven the business plan and you have those cash flows and are up and running, fromom our point of view, it is not something that meets our leaning criteria. >> the zero entrepreneurs started his company with his own savings and loans from family and friends. but this cash has now been exhausted. he needs to invest in marketing but lacks the necessary capital. his problems are typical of many small businesses in britain. they cannot get credit. or if they can, only at an exorbitant interest rate. the interest rate is increasing the the base rate is just 0.5%. the british bankers association says small businesses close to high-risk in the current climate.

>> in the past, banks would gain market share and were willing to price more competitively, to get a competitive advantage. now there is not the room to do that. so they're charging the proper risk adjusted price. >> as well as keeping the base rate low, the bank of england is also pumping money into the economy. but many banks are holding on to the extra cash. >> many are simply too big still. and they are aware that several years down the road, there will have to build of three times as much capital than before. all that means that there breaks of constraints on lending, new lending. many people will not to shrink their balance sheets to raise its capital ratios. >> chris plays the blues to ease his frustration.

but he remains optimistic that he can make his business a success. ♪ >> that is it. thanks for joining us. good bye for now. captioned by the national captioning institute --www.ncicap.org-- ♪

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