the ceo of qantas alan joyce say the latest profits only underline the need for changes. earlier i spoke to joyce and asked him why the restructure was needed when the profits were rising so sharply. >> you've described qantas' earnings as very solid but also further proof that qantas must change. on face value those two statements look contradictory. can you explain what you mean by that? >> well, andrew, we have a portfolio of assets in the group, some of which are doing exceptionally well like jetstar, qantas domestic, freight and frequent flier. in the case of most of those assets they made record profits. for our qantas international business, it's taken a hit as a result of the high fuel price and the high australian dollar, and it did lose $216 million in the year just closed. and that business needs structural changes, significant change because the other parts of the business cannot keep on supporting it. so that's why great overall results, but this underlying problem were our international business that we need to address. >> so what you're saying is oil prices

. >> now, as alan joyce was announcing, that plan qantas pilots were warning of a strike, upset overjor shift in the wager. they say they'll do everything they can to stop the restructuring. charles? >> china may be close to using its currency to fight inflation. in a moment, why expanding the band may be china's next move. >>> from cnn london, i'm charles hodson. >> i'm andrew stevens in hong kong. welcome back. you're watching world business today. >> let's take another look at what's going on here in europe and 90 minutes into the trading day. we're looking at steepening losses with the gains that we saw on monday. all thrown away. particularly with the dax off by 2.75%. following the revelation that the german economy is almost stagnating. growth in the second quarter came in at 0.1%. it had to have been expected that there would be some modest growth but near flat-line. that's a shocker for the markets and paris up the worse escaped by london and sdplur i can. they're off in the case of the ftse andrew. >>> yes, charles. the german numbers nicked the end of the trading center he