the u.s. can a ton of data and earnings, capturing earners attention. such as goldman sachs and jpmorgan reporting results. >>> hello and welcome to cnbc's "worldwide exchange." we'll kick you off with the global picture at the start of the week. the ftse global 300 is down 13 points. christine will detail more on that. in europe, we've bounced off earlier losses. the ftse 100 was down 14 points, nudged up into positive territory. a little bit of strength today. not only from the likes of vw, but the battle for porsche. you've got chemicals and technology up further. still weaker in financial banks as well. still very much in the ranges. you can see the yen made some gains. you' euro-dollar still in that 1.39 range. we've got a lot of data through the week. corporate earnings starting out as bertha was saying. it's nice to have bertha and great to see you, christine, as always. >> let me go on with the asian markets. a big cesell-off. investors worry about things. the kospi is down. some concer

the promise of u.s. retaliation over the middle east if iran continues to try to build nuclear weapons. mrs. clinton later said her comments did not mean the obama administration will stop trying to prevent iran from building a bomb. mrs. clinton's in thailand today for the meeting of the association of southeast asian nations or asean. and we have the latest from al jazeera english. >> reporter: hillary clinton taking center stage at the asean regional forum. with all attention on her, she took the opportunity to single out the two countries that are not towing the international line. >> complete and irreversible de-nuclearization is the only viable path for north korea. we do not intend to reward north korea just for returning to the table nor do we intend to reward them for actions they have already committed to taking and then reneged on. the path is open to them and it is up to them to follow it. unless and until they do, they will face international isolation and the unrelenting pressure of global s

i think the u.s. and russia can continue to make progress as we have been doing in recent years on reducing the number of nuclear warheads under the treaty. there is one issue that the treaty is currently dependent on a not truly compatible transparency and verification regime. the one thing i do think that should be in the near term negotiations is drafting a protocol to the moscow treaty that provides for this transparency measures, specifically against the accounting standard that is associated with that particular treaty which is on his deployed warheads. the third thing they need to do is limit formal linkages. the idea that the u.s. will get into negotiations that will have a formal linkages regarding the question of iran, they will not serve the process very well. we should defer negotiations with regard to the plane warheads that would go below the moscow treaty level. we got into 2012 that the moscow treaty will be in force, said that gives us plenty of time to negotiate a more fundamentally s

the u.s. as well. both for rents and capital values, the outlook is still pretty downbeat. >> i'm pleased you mentioned the reds. so many people talk about economic adjustments. we have falling rents in the commercial area and private area. how much longer do you think this is going to go on. >> i was looking at the u.k. experience in the early, 90s. rent on that occasion came down by one-fifth. so far, we're down seve7%. if you look at what we're saying about inducements, they're suggesting these are continuing to rise, which suggests that rents have got further to come down. >> simon, here in the u.s., are things stable? is that something that leaves the glass half full? >> it's premature to be talking about stabilization. we saw reports, hard data reports, on the commercial market come out in the last few weeks. capital values are being marked down. that process was slow to start in the u.s. i suspect it's got some way to run. certainly if you look at what members of the u.s., valuers in the u.s. are

the u.s. government. >> i do not know. some of it is government raised. >> it is not public funding. >> i want to say from me. from my tax dollars. >> how is c-span funded? 30 years ago, cable companies created c-span as a public service. no government mandate, no public money. >> president obama and president medvedev signed a preliminary agreement to reduce nuclear stockpiles in the u.s. and russia. other topics were at the war in afghanistan and missile defense. >> the ceremony of signing a joint documents is about to start. >> the chief of the joint staff of the armed forces of russia and on the u.s. side -- the chairman of the joint staff of the united states army, and that is the admiral will sign the frame work documented on the cooperation between the armed services. of the united states of america and the adoption of working plans on cooperation between the armed forces of the russian federation. [applause] >> the minister of foreign affairs of the russian federation, a senior deputy s

here in the u.s., we had a mixed close yesterday. this morning, we are below fair value on all three of the major foorchs. the dow is off by 32 points or so below fair value. among the big earnings, wellpoint yesterday with indications that the senate finance committee may now be dropping the plan for government plan in health care. we saw health care stocks rise. we'll see if wellpoint can continue to that morning when it reports earnings. taking a look at bonds, the tep-year yield is at 3.43%. yesterday at this time, it was at about 3.5%. and we're all watching u.s. treasuries. we saw the two-year treasury yesterday, that massive $42 billion offering, not quite as robust as some of the previous. today we've got a five-year note at 1:00 new york time, one of a slew of offerings this week. so those are being watched. we've got the ten-year yield at 3. 6/6%. that's down from about 3.7% or so yesterday. taking a look at gold, the dollar is getting a respite and gold is coming down just a bit, off about 2 right now at $935.20. christine.

locals think about the u.s. military presence in the central asian nation of kyrgyzstan. >>> millions of nations turn their eyes to the skies. as dawn turned to darkness across that continent, it was the longest solar eclipse. and we have the amazing pictures. >>> plus, britain's take on the u.s. banking crisis. it's a segment that we like to call "how they see it." tonight's report from itn is bound to raise eyebrows. >>> from the world's leading reporters and analysts, here is what's happening from around the world. this is "worldfocus." >>> made possible, in part, by the following funders -- >>> good evening. i'm martin savidge. >>> president barack obama and iraqi prime minister nuri al maliki sat down face to face today for meetings at the white house squaring off over the drawdown of american troops and concerns over the rising violence in iraq. today, not far from baghdad, two bombs exploded in a market killing at leple and wounding dozens. it was the second day of bombings in what appears to be a growing

the u.s. was in denial about it. you can look at the early press reports where the term was for saying these were american airstrikes, and there was silence. maybe, maybe not. at the end, bush was very clear. obama was more clear. this is a tool that is useful to us. fox in the nwp think things are going to be better. overall, they are uniformly opposed to predator strikes. if you look at the data that only it focuses on fata. you can survey in fata, but it is really it onerous getting a good sample. i would

. >> and i'm scott wapner in the u.s. alcoa leads the blue chips out of the starting gate kick off earnings season when it reports later today. >>> hello and welcome to cnbc's "worldwide exchange." the earnings season kicks off later in the u.s. the g-8 is under way, as well, in italy. plenty of data coming out, as well, all over the globe. we'll get to all of it during the course of today's show. the ftse cnbc global 00, currently down 25 points. we saw wall street hitting a ten-week low. at the close yesterday, the talk of a new stimulus plan. right now here in europe, an hour into the trading day, not quite as bad as the fall christine was talking about yesterday. down .7% for the cac who at the moment. insurance, financial goods and services are the weakest sectors on the urgent on the currency markets, the yen has hit its highest level against the euro and the dollar. dollar/yen, 94.20. euro/dollar, .3885. sterling/dollar, 1.6078 and the euro is firmer against the pound, as you can see. we continue pulling the risk ap

. >>> and i'm scott wapner in the u.s. after 40 days .40 nights, the new general motors will emerge as a leaner company, but under the government's thumb. >>> hello and welcome to cnbc's "worldwide exchange." we'll kick off with where we are in the global equities session right now. the ftse cnbc global 300 is down 11 points. that's a little better than we are in some of the markets in europe right now. we had some slim gains yesterday, but those are being erased at the moment. construction insurance, also oil and gas, health care are all weaker. oil prices are nudging down again today. that's where the weakness is coming through and because the stock market is down slightly. we have the yen that inched up a little bit, hovering below the week's peaks. investors are still as the bulk of the u.s. earnings season will be getting under way. a look at the currency markets? dollar/yen, 92.71. euro/dollar is on the low 1.39. sterling/dollar, 1.6272. euro/sterling, on the day low, .8544. sterling got a big boost yesterday when the

so the u.s. data, everybody is looking closely at it but i'm afraid nobody is looking for good signs at the moment and that will pull the market back for the next month or so. >> ian, it's difficult for the market, even with data coming out to really do much in the face of rising unemployment. those jobless numbers last week were obviously concerning to the markets and caused a big sell-off here on thursday. >> yeah, that's right. job creation certainly needs to pick up as the economy picks up, which proebls looks a long way off at the moment. actual rising in layoffs doesn't look that bad and i think it's normal for the market to be worried about rising unemployment. it's a perfectly normal reaction as the economy has gone through the shock that it has. so i think if you look at the more forward looking indicators, they're all actually pretty positive. so i can't get too concerned at the moment. the market needs an excuse to sell off and it's taking this. but it all looks fairly predi predictable

the u.s. aid be limited, pakistan has to do this on its own, the more involved engagement from the united states the negative. and other schools as we have to do more. how do you come out on that debate between providing pakistan the tools that it really needs or allowing pakistan to do it on its own? >> we have had this discussion with the united states for a long time. what i am saying is there is a strong lobby for support for pakistan and the other lobby of not supporting pakistan or limiting support for pakistan. from what it says in the 9/11 commission, there has been a drive to build capacity, what was seen as the key to the problem in pakistan. in afghanistan, the u.s. and nato and everybody is tackling the most difficult situation, which is southern afghanistan. part of the problem. the taliban, possibly after the surge or elections missed out exploiting areas where there is a softness or a weakness. this is taking place, what pakistan is doing in the tribal areas is extremely importan

for their part, the u.s. and china began two days of high-level meetings in washington today with nuclear proliferation and the global economic crisis month issues on the agenda. in an address to the diplomats from both countries, president obama said that he was under no illusion that the u.s. and china will agree on every issue while underscoring the value of the relationship. >> the relationship between the united states and china will shape the 21st century, which makes it as important as any bilateral relationship in the world. >> for more on the talks going on today and tomorrow, we're joined once again by orvelle shell, a china scholar and a director of the center on u.s./china relations at the asian society here in through york. welcome back. >> pleasure. >> we just heard president obama as he was talking about the importance of the bilateral relationship between the u.s. and china. how significant do you think his speech was? >> well, i think they're trying to merge these two extremely important famil

>>> a sign of the times, in cuba electronic sign once used by the u.s. to blast the castro government has gone dark. is that signal better relations ahead and more opportunities for american businesses? >>> plus, blinded by the light. planes taking off and landing at london's heathrow airport are increasingly being targeted by lasers and pilots warn the consuences could be deadly. >>> from the world's leading reporters and analysts, here is what's happening from around the world. this is "worldfocus." made possible, in part, by the following funders -- >>> good evening, i'm martin savidge. >>> they say they want to impose a taliban-like regime that regains western education and they've been attacking police stations in recent days sparking clashes. that by some reports have left at least 100 people dead. it may sound like afghanistan, but this wave of violence is actually going on in nigeria, an important oil-producing nation in africa that, for years, has been dealing with a deadly insurgency in the largely muslim north of the country. in tonight's "lead

>> reporter: the u.s. absence ensuring the bushdministration h influenced ina's influence the regions. the u.s. has skipped this meeting twi in the past thr years. but washington nowants to make it clear tha its keen to make up lost grnd in asia. clinton has embraced the asn regional foru stngthening u.s. ties aemphasizing the importae of train with the ain ten-member group. for aseans whoremain relevan thoug it has live to its se of the bargain. >>the sun came up over as today, whh of course isot really news burke wheit disappeared hind moon for more than siminutes shorly after sunrise, peop from india, to china had verysimilar reactions to the longest eclise of the 21st centu. >>> in china, for instance, tudents, scientists and the ju plain curious gathered to watch the sun slow-vashing act. in thaild, there were regious rituals. ev in north korea, state television ran pictures of solar eclipse watching. but theilly look of theery necessy protective eclips watching glaes seems to cort hole of asia from pa

the u.s. is a founding member. russia is a part of the nato- russia council which was created to reach out to russia. if girls were deemed to be a benefit, and i do not think anyone has a problem -- and girls were deemed to be a benefit, -- drills were to be a benefit, i do not think anyone would have a problem. >> russia needs worldwide will prices to be high to build on their economy. the biggest natural gas producers are also russia and iran. let us say they would like to have a relationship in terms of fixing natural gas prices. they have suffered a catastrophic economic blow as a result of dropping energy prices. host: do you agree with that? guest: that is a pretty interesting observation. the russian economy has suffered pretty badly. energy prices have declined. in the aftermath of the fall of the soviet union, their economy collapsed and was rebuilt on energy resources. that is an interesting of starvation that could have some merit. host: next phone call from indiana. caller: good morning. i was listening

>> well, in fact, the u.s. is an interesting market because that is where it has always been the most advanced telecom markets in the world and it still is. and the rollout we're doing for verizon, for at&t are huge. the sprint deal was a major inroad into managed services in the u.s. japan and china, the three world leading economies have bigger rollouts than we've seen for a long time. so those are the exciting parts. and then services overall is growing. >> carl-henric, this is christine. talk about china. it's interesting. what is driving your sales in china? how much of this is because of the infrastructure spending due to the stimulus package we've all heard so much about? >> well, we have to remember first that the rollout of 3g in china has been awaited for a long time. so that in itself is not a newborn idea. with this package, it's just that it's more financed through it than it really exited. but the rollout of 3gp in china is pretty massive. and in a minute, china mobile is upgrading their networks t

economy performs. >> reporter: the u.s. too has a proprietary interest in china, which is on its way to becoming the largest economy in the world, and is already one of the largest markets for u.s. exports. most recent figures show the u.s. trade deficit with china down 18%. with china shifting from export- led growth to growth at home, treasury secretary timothy geithner wants to see the trend continue. >> china's success in shifting structure of economy will be huge contribution to bringing about more rapid global recovery >> reporter: but china has fueled the shift with large increases in bank lending, a trend that worries some observers, says the u.s. china business council's john frisbie. >> so the u.s. will have its own questions about china's exit strategy from that to avoid inflation down the road, just as china is going to be talking about our own exit strategy to avoid inflation here down the road. >> reporter: this meeting is billed as a dialogue and it is high level: by including secretary of state hillary clinto

public debt in the u.s. is expected to almost double over the next ten years to about 80% of gdp which is unprecedented. and with more spending plans in the pipeline like the health care reform, there is growing and easing in the markets about what's going to happen in terms of increased supply of debt over time. and i think this is what we're seeing reflected right now in the fixed income markets. >> yeah. how much do you think it's priced in? there must have been expectations that not every auction is going to go brilliantly. >> no, exactly. and i think there is growing uneasy in the market & with concern that we might see an accident along the way. so there is concern that we might see accidents, some of the auctions not going extremely well, but bear in mind, again, the problem is mostly a longer term problem. there is a lot of concern about what the pace of improvement will be over the coming two yearsing on so. >> yes. and what doesn't seem to be an improving is the flow of credit still for businesses f

so what we are seeing in the u.s. is that the consumers are deleveraging on the back of partly fear of losing jobs, but also on the back that they could go bankrupt. so i think stephen is right in the sense that bank lending and consumers not spending will keep us at a low level recovery-wise. >> christian, here's the point, right? you talk about this revenueless recovery. there is going to be growth, right? we're not going to be -- >> sure. >> however weak the growth is going to be, there's going to be some. if companies slim back and reduce costs, a tiny bit of growth could have a big impact on margins, couldn't it? >> definitely. i mean, they are sort of shaped the organizations and cut back on costs. so revenue growth will have a huge impact on margins. our point is that even though this should occur what is priced into equities 12 months ahead is unrealistic. it won't happen. not according to our book, but we could, of course, be wrong in that sense. >> what is the strategy, christian, base of your strategy then a

in afghanistan, the u.s. and nato and everybody is tackling the most difficult situation, which is southern afghanistan. part of the problem. the taliban, possibly after the surge or elections missed out exploiting areas where there is a softness or a weakness. this is taking place, what pakistan is doing in the tribal areas is extremely important at this point in time. at this point, holding back capacity or any other kind of support, would become counterproductive. pakistan is capable of sitting across the table and discussing what is about money where it should be, and what monitoring should protect this, the u. s asking for specific requirements on the benefit of special programs that need to be put in place. there's a lot of >> thank you, excellent panel. my question was more -- >> please identify yourself. >> i am from the transnational crisis project. my question has to do with something you touched on earlier about areas of pakistan that can be dealt with politically. stern reports suggest the research

and if the u.s. and china could make some agreements that would give heart to the world to show that they are now in the game in a serious manner, this would be an incredibly important move forward so that's going to be negotiated now. but they're much -- china's a developing country. we're a developed country. we have different obligations than they do. but how do we both consecrate ourselves to solving that problem? that's going to be one of the biggest questions under discussion. >> and then i presume when we talk about nuclear arms, we're talking about north korea? >> the internal subject of north korea. and the truth is, we love to think of -- if china would only do this, that and the other, we could trap north korea. but i think china does not have as much influence as we imagine. this is a very artartic independent state but it's extremely important. that we collaborate with china to do what can be done to bring them to heal, like iran. not an easy topic to have a clear solution for. >> orville

but fact that the u.s. to play a role that indicates that really it's a large and significant player in the region. >> do we have a lot of influence over this whole drama that's playing out? do we have a lot of input? >> we have a lot of input. first of all, we've always had close relationships with honduras. 67% of honduran exports in 2007 went to the united states and we have about $94 million worth of aid and assistance that goes to the honduran government and to the honduran people. in addition, honduras receives about $3 billion worth of remittances a ar, which is 25% of their gdp. and that -- most of that comes from the united states. >> so, then, what is our role, if we have that influence? how should we play? >> well, here's what basically happened was the organization of american states, the multilateral organization for the americas, voted to condemn the coup d'etat that removed zelaya. and the general secretary traveled to two weeks ago to try to broker some sort of compromise and the interim gove

the u.s. has ramped up the forces in the country to oust the resurging taliban. >>> held in iraq since 2007 are now back in iran. at least that's what iran's government-backed press tv is reporting. three of the men claim they were diplomats, the u.s. detained the men in northern iraq on january 11th, 2007. they were believed to be part of a group that possibly provides insurgent training. it's not clear who the other two freed men are. >>> health and human services secretary kathleen sebelius says the obama administration is not ruling out any options when it comes to a health care bill. appearing on cnn, sebelius told wolf blitzer lawmakers have good ideas about a bill. both sides realize the importance of health care reform. >> i think the bottom line is it's got to be paid for. and we all have a shared responsibility, but we all need to play a role, the house and senate version also have employers included and individuals included. and what's been remarkable, wolf, is the stake holders who

in the u.s. or other parts of the western world. so we remain optimistic. the month to month data are noisy and not always frankly believable. the numbers that we do like to look at, for example, pmi surveys, just to mention one of a range of data supplies that we think are actually pretty trustworthy are actually pointing to ongoing acceleration in economic growth. however, there are risks ahead. there are always going to be risks in china.a. but aside from that, we are cautiously optimistic. >> james shugg, senior economist westpac bank, thanks for joining us. you have a good weekend. >> let's talk more about the country plunging into deflation as consumer goods continue to weaken in japan. the boj has forecast two years of deflation. what does our next guest think? we're joined from luca. first of all, we have consumer prices continuing to fall. unemployment, jobless rate at a near all-time high. are things likely to get much worse in the coming months in japan? >> no, i don't think so. i think

the war there became central to u.s. foreign policy. but ortega is now the country's democratically elected president. morales in bolivia. since colonial times, he tells the people, we have been fighting against invasion and oppression. he's been at odds with washington after he expelled the american ambassador last year. hugo chavez of venezuela, seen with his zero fidel castro, both men for many years fo against america. the increased american military presence in columbia raises concerns washington might once again be taking sides between left and right wing governments in the region. bbc news reporting. >> this is world news today. coming up, it is a sellout show in cuba as the u.k. royal ballet arrives, the biggest performance since the bolshoi. they were driven from their homes, victims of racial violence. they've left northern ireland after a series of attacks. there in romania trying to rebuild their lives. we have been to see some of them in a village there. >> from northern ireland to northern romania. it rains here as well. wh

ahead of the u.s. open, we'll bring you up to speed with what's happening on the global equity markets. besides christine and i, there's sill vee cha in germany, becky in london. >> thanks, ross. the if it is presidents 100 is up by almost 30 points. looking at the biggest movers today, morrison is very strong so far. that's one of the biggest super market chains and shares of morrison are higher. that company came out with a trading statement earlier on telling us they are expecting the full year earnings to come in ahead of their own expectations. that company gives a boost to other markets. tesco is looking pretty strong on the back of that news. now over to sylvia for a bit more on the german trade. >> nothing wrong with frankfurt, because that's what we say, of course. after the sort of slow start we started clawing our way back up again almost 1% up here at the moment. we did zoom through these technical points around the 50, 50, 60 level, which the charters and the futures traders have seen as a

the u.s. to declare a victory in iraq and to go home. is that realistic? >> i think more importantly is that that memo raises lots of imts and perhaps breaks us out of a bit of complacency in regard to iraq policy which has been somewhat driven by -- solely by time lines and hasn't thought about the big picture. about the cost of the u.s. presence. the potential for increased friction on the ground. the limitations on what the u.s. can do. i mean, it's not our country. the iraqis are increasingly sovereign, making decisions, and i think it's important that we think about what we want, the u.s. fronc look like and whether we can afford to have a smaller presence and perhaps shift to a more diplomatic approach and that might be a way to create a more sustainable framework for u.s./iraqi relations going forward. >> it definitely seems that there's been a significant change since the implementation of the news status of forces agreement. and that if i read you right, prance the longer we stay, the

whereas the u.s. his case is seen as an honest broker andas seen as a country who actually has a fair amount of leverage with both sides of the government. >> so how do you see this playing out? how is it going to end? >> well, first of all, hillary clinton, has named oscar arias, the president of costa rica, the nobel peace prize laureate of 2007 to be the mediator. this is profound. and first of all, arias is respected across the spectrum left and right of what he had done in central america before. but i think what it indicates now is a process, a diplomatic mission, where both sidings are going to try to come to some sort of compromise. honestly, without sounding too optimistic, it shouldn't sound that difficult. zelaya would have stepped down if not run for re-election in january 27th, elections in november. move the elections up and zelaya's already agreed that he will not try to run for re-election and you basically resolve the situation with another election and both sides agree to step down. >

the u.s. after studying geology, i wanted to write a thesis. i got everything ready, but for inspiration or in lightning. now everyone is struggling to the united states by airplane, but if i took an airplane then maybe i would not have been able to write this thesis at a time when traveled to the united states by boat, and it took more than one month to travel to the united states by a ship. those who do not have the experience of traveling by boat, you might think it's going to be a great experience, but for all this it was quite boring. and every day i was sitting on the deck -- i was sitting on the deck thinking about my visas except for the time for my sleep. i was thinking about knowledge i have acquired, and my ideas on the composite structure of the shell of the earth. every day i was watching the way of this and the tides in the ocean. and all of a sudden it came upon me that why the waves were not moving directly up and down and on till the waves were moving in curves, and based on my

in the u.s. at this hour, i should say, it is going to be quite a busy day as we take a look at how futures are shaping up today. there is a lot on the menu today. we have google, ibm out with earnings today, jpmorgan, data will be heavy, as well. and we're below fair value after those huge gains yesterday. about 50 points below for the dow, fair value in the s&p is about six, as well. . take a look at the bund yield, as well, this morning. 3.39%. they sold some treasuries yesterday and they bought equities and take a look at the ten-year creeping up there. 3.58% is where the ten-year now stands. mr. westgate. >> yeah, scott, you know, with all those earnings you just mentioned come out, we've gone into cautious mode ahead of that. the ftse cnbc global 300 just up five points. it was stronger during the asian session. christine will detail us in on that. here in europe, we're pretty flat. what is the strongest sector? that is health care, mainly on the back of novartis. one of the company has come

. >> and i'm scott wapner in the u.s. intel's rosy earnings report is giving a boost to tech in the overall market. futures sharply higher. >> and i'm ross westgate. bexley is getting a boost from intel's report while rivals -- hello and welcome to cnbc's "worldwide exchange." global equities are looking up. the ftse cnbc global 300 is up 26 points today. we were firmer, of course, yesterday and right now, as you look into the european markets which are an hour into the session, you can see the ftse 100 up nearly 1%. xetra dax up 1.3%. cac 401% up and smi .8% up. technologies are firmer. resources, insurance, financial services may be what is being particularly focused on with thain tell report. we'll talk about it. they had an improvement in margins and they're talking about revenues improving in the third quarter and that's the top line growth that we're interested in. on the currency markets, the yen is weaker across the board.d. not much against the dollar. 93.47. the euro has top out over 1.40 against the greenback. s

china and the u.s. are meeting in washington to discuss major economic and political differences. >> track and america stood together to there, trying to speak the same language. >> yes, we can. >> not much was announced, but there were words. >> u.s.-china relations will shape the 21st century, making it as important as any bilateral relationship in the world. that must underpin our partnership. that is the responsibility that together we bear. hip-hop -- >> much of the relationship is based on money. the current crisis makes it clear that the choices reverberate all crossed the global economy, not just in new york and seattle, but in shanghai as well. that is why we must remain committed to strong bilateral and multilateral coordination. >> both countries are hit hard, but china has an interest in american financing recovery. washington is investigating to the tune of about $700 billion -- that is how much they are in debt. some said that limits their leverage. one area where america wants chinese corp

in the u.s., according to the plan, that is being discussed, u.s. average, 52% tax rate. i went to your web site, where you talked about the people who live in michigan. and 78% of the businesses in michigan are small businesses. many of them will be subject to those numbers, because, they are incorporated as -- sub-s, smaller corporations and are you saying, that you are comfortable taxing small business owners who may not be able to even afford to keep the employees they have, or at least provide health care coverage, given these taxes, that is what they seem to be concerned about, on main street. >> well, that -- let's look at the -- about 5% of the small business owners -- small business owners will pay an additional taxes, only 5%. and, they would pay the additional tax. it isn't the 95% of small business owners, but the 5%, so, it is important that we look at the facts. >> jamie: where does the 5% number come from, congressman? i'm not familiar with that. >> well, it comes from the joint tax committee. >> jamie: so you are saying, small businesses only account for th

if the u.s. were to identify afghan taliban bases in pakistan, 79% say it would not be justified in bombing them, though this action is supported now when carried out by pakistan's own government. we asked a question that would remind respondents that the international community originated the military presence in afghanistan. it read, the u.n. has authorized a nate dash nato mission. this mission is meant to have the government defend itself from taliban insurgence. do you approve? >> 72% disapprove of the nato movement. 18% approve. >> do you think it should be continued or ended now? >> and 9% said it should be ended now, 13% that it should continue. the recent decision by the obama administration to send up to 17,000 more u.s. troops to afghanistan this year is widely rejected in pakistan. 86% said they disapproved. so, there are few signs of a washover of public support. but to the free that the war in afghanistan is brought on to pakistani soil by either side, there is a strong public react

ahead of the u.s. open, wel bring yoyou up to spee with what's hapappeningith global equity market we are firirmer. becky, start us off in ndon. >>>> than, ross. the ftse 100 is managingg to hag on to thosese gain we're looking at market higher by .7%. we've hahad inflion data out this mornining showi that inflatioion is droing back, actual, falling below tt 2% bank o england target for thee first occasion in some time.. lookining at annual rarates of . is doesn't seemm to have had a ge impact on the marts today. we are barely steady by points or so at this stage. amongst the bigge gainers, bac resesources stocks are dog their bit t higher by 8.9%. lonmin, not fast behind, kazakhmy's,, xstratata and rio tinto. vodane istill the biggestst declin. we have e had a dngrade from the analysts from ubs on vodafone. the ares of the companare trading lower today. papatricia, w is it lookining i germany? >>well,l, we stilillook quite firm, up about 0.9%. i have to say, volumes are sligly better than yesterdrday a

u.s. president barack obama said the relationship between the u.s. and china which shape the 21st century and said the two shared a mutual interest. the meeting is the first formal negotiations between the u.s. and china since mr. obama took office. we have this report from washington. >> china and america were standing together today, trying to speak the same language. >> yes, we can. >> not much of substance was announced, but there were grand themes. >> the relationship between the united states and china will shape the 21st century, which makes it as important as and have bilateral relationship in the world -- makes it has important as any bilateral relationship -- makes it as important as any bilateral relationship in the world. the current crisis has made it clear that the current choice is made within our borders reverberate across the global economy, and this is true not just in new york and seattle but in shanghai and other areas, as well. that is why we are committed to strong bilateral and multilateral coordination. >> some are hit hard by

again, if you look at the way u.s./sterling has performed over this year so far, the pound strengthened a bit. but really, here at these levels, given the die vergence between the euro zone and the uk economy, given how loose policy in the uk is likely to be and the size of the fiscal deficit is likely to be, we continue that drift higher that we have seen over the past few weeks. >> adam, it's bertha here in the u.s. we've got the dollar/euro trade fairly strong at $1.41 this morning, more or less. did bernanke help? >> i don't think bernanke changed the big picture as far as euro/dollar is concerned. sure, he has an exit strategy. what was more important, i thought, was he went to great lengths to make it clear he didn't intend to use that exit strategy any time soon. so i've got the fed clearly on hold. no desire to raise rates for a long period of time. that means u.s. yields aren't going to climb above. and that should keep the dollar under pressure. i also think the size of the fiscal deficit in the u.s. means th

now, the u.s. focus and much of its military might to battling militants in afghanistan. cnn's atia abowa is on the ground with the latest coalition offensive in helmand province. >> reporter: flying with the u.s. marines into an area of helmand province that was once considered taliban land, just five days after "operation strike of the sword" began, the governor of helmand stepped into a district that he could not before because it was too dangerous. raising the afghan flag over this district, a symbol of new governance and change. it was a moment that was likened to iwo jima by marine brigadier general larry nicholson, a moment that they hope will symbolize a turn in the war here. this castle was built in the 1900s during the time of king durani, the father of afghanistan. this castle in this district was occupied by the taliban. but today the u.s. marines and the coalition forces gave it back to the government and the people of helmand province. for the past three years, this was under strict ta

and next in the u.s. offensive in afghanistan. but first africa is the new focus of the u.s. military. the bush administration launched the africa command last year to foster closer cooperation and stability across the continent, switching from a traditionally rereactive approach to african crisis to a policy of engagement. but it's headquartered in germany, rather than africa, and it's a command structure with few operational units. instead it will draw people and equipment as needs arise. air power will be vital on the huge african continent and general ron ladnier is overseaing it. general, welcome to the show. i want to start out by asking how africacom is structured, and really given central function of the command is diplomatic more than military. >> i am surprised there hasn't been a lot more discussion about exactly that. u.s. africa command represents almost a departure from what we've seen with other regional commands. and what i mean is, government agencies have represents at u.s. africa command, but they're not just liaison officers. they hold key positions. one of

and attitudes about the role of u.s. engagement. he has worked extensively on studies of public opinion in asia and recently a study of attitudes about the conflict in kashmir. christine will present particularly interesting regional differences in pakistan. they're an ethnic mix is crucial to understand its politics and its relations to its neighbors. we will see it is important to understanding attitudes to the u.s. and to the taliban as well. christine is a specialist in south asia. she has traveled many times to afghanistan and pakistan. currently, she is a senior political scientist at the rand corporation and was previously at the u.s. institute of peace. some of her good ideas went into the development of the questionnaire for the study. finally, stephen cohen is a senior fellow in foreign policy studies at brookings institution. he is the co-author on books are in the american involvement in south asia and a volume entitled "the idea of pakistan." he was a member of the policy planning staff at the state department. he will n

the drug trade fueling it and u.s. strategy and what's dubbed president obama's war and let's catch you up right now. july, already the deadliest month for american service members since the 2001 invasion. 37 casualties this month. two just yesterday. and caught in the conflict, u.s. army private beau, captured in afghanistan three weeks ago. this video released by the taliban last weekend, the first indication that he is stale live. afghanistan's drug trade is bank rolling the taliban and u.s. forces have set their sights on that. >>> and just this week the u.s. military destroyed 300 tons of poppy seeds in an effort to cut the enemy's money flow. >>> we want you to be part of the conversation which has already begun on our blog. we're taking your comments, your questions on facebook at fredricka whitfield cnn and e-mail us at cnn.com, or post a message on our blog ivan is in the area bringing us up to date on all that's taking place today. >> reporter: there were a serioseries of attacks today. what happened is accord

the ex-cia chief was reacting to a report on friday by a team of u.s. inspectors general which called the program unprecedented. the report also questioned its legal rationale and the secrecy that surrounded it. >>> the white house may not be behind the move, but attorney general eric holder apparently may push forward with a criminal investigation into the bush administration's interrogations of terror suspects. a justice department official tells the associated press holder is considering whether to appoint a prosecutor. president obama has expressed reluctance about such a probe saying the nation should look forward, not backward. the white house is concerned an investigation could distract from other priorities such as health care reform. >>> president obama and the first family arrived back at the white house early this morning. their whirlwind trip overseas, included stops in italy and russia and it was capped off by a visit to ghana where the president addressed the parliament. he praised ghana for its democracy and economic progress. he also chal

border at el paso, the daily game of cat-and-mouse is under way. between u.s. border patrol agents and mexicans trying to enter the united states illegally. >> wait to see if a group comes across. they have been testing us in different areas. >> reporter: with more border patrol agents, more cameras and the huge border fence, it is much more difficult than it used to be to cross illegally from mexico to the u.s. >> now we control this border. we own this border. it is our border. >> reporter: this man climbed the fence but was caught right away. >> there is just too much vigilance out there. it's hard to not get seen. >> reporter: officials say the u.s. economic downturn and fewer jobs for immigrants have also slowed the illegal border traffic. >> this gives us an opportunity, a space so to speak, in which we can continue to strengthen our border infrastructure. >> reporter: here in el paso, border patrol agents say they're catching 40 to 50 people a day trying to sneak into the u.s.

captioning sponsored by wpbt >> susie: $787 billion, that's how much the u.s. is spending to stimulate the economy. but with unemployment nearing double digits, and the economy looking worse, more and more people are calling for a second stimulus. >> jeff: key to the economic recovery, getting americans spending. but that's tough to do when wages are stagnating or taking hits in other ways. >> susie: if you browse the web using internet explorer and a windows based p.c, you could be at risk. microsoft says there's a security problem with its software that could let hackers take over your computer. >> jeff: then, putting a new face on the lipstick effect. american cosmetics firms are hoping to do just that in china, as the global recession has women there looking for small luxuries. >> susie: i'm susie gharib >> jeff: and i'm jeff yastine. paul kangas is off tonight. this is nightly business report for monday, july 6th. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank y

this, the u.s. isolated regarding its cuba policy. >> reporter: and that, now missing out on business opportunities during the economic crisis. an example, cuba has found oil. deep in the waters of the caribbean. sanchez, at the cuba u.s. for studies says the u.s. is missing out at a lucrative opportunity to extract oil. >> require big companies and great amounts of resources. so these when we have the opportunity with oil companies for the united states. >> reporter: it's an opportunity lost by the united states and an opportunity seized by canada, france, and brazil. it's a different story for american farmers. big u.s. agricultural companies have won the right to ship their goods to cuba. >> those in europe -- >> translator: the united states is providing just basic food and their exports are already 50% of spanish exports. that's only food. so the potential for the united states is strong. >> reporter: ships hauling american farm products routinely visit havana harbor. about $700 million worth of