i'm pauline choiu in hong kong. i'm pauline choiu in hong kong.-bye for now. -- captions by vitac -- www.vitac.com

pauline? >> yes. i've already read, nina, politicians may take a pay cut by as much as 50%. 10 we'll see what happens. this is certainly a critical time for a country with sluggish growth but high debt. >>> coming up next on "world business today," first he lost a up in and then his bid for bskyb turned to custard, turned sour. now to top it all off, rupert murdoch is under scrutiny in the u.s. we'll bring you more details on that in just a moment. active naturals wheat formulas target and help repair damage in just 3 washes. for softer, stronger... ... hair with life. [ female announcer ] nourish plus. only from aveeno. >>> from cnn hong kong and rome, this is "world business today." welcome back. >> newscorp's high-flying attempt to take control of bskyb it seems has come firmly crashing back down to earth. rupert murdoch withdrew the bid for bskyb on wednesday. that was amid the scandal at newscorp international. it must have been a tough one for him. >> reporter: oh, yeah, completely. we were all

>> thanks, pauline. tll are plans for renewable energies and energy efficiency, but it's this carbon tax that's getting a lot of attention and a lot of heat right now. basically it amounts to 23 aussie dollars or 25 u.s. dollar for tons of carbons. it's going to rise through to 2015 and 2015 we're going to see a market-based c02 scheme. this is going to target 500 worst polluters in retailing and mining. the ministry in australia attacked the attacks as a dangerous experiment with the economy. as the ceos of companies told me a $25 tax could cost as much as $30 billion for the industry and that that would be passed on. >> many businesses will obviously try to pass this cost on to consumers or else they're going to have to absorb it. the irony is the cost to actually drive into to other sources of energy just isn't there. and, you know, a lot of the, for example, talks of about tanks of $70 plus per on the to actually initiate that change and provide some sort of incentive -- >> and as you'd expect, share

i'm pauline chu. >> from cnn london i'm charles hobson. anxious investors dump their stocks as europe struggles to contain its growing debt crisis. >> macarthur coal rallies on a $5 billion buyout bid. >> politics, high finance and criminal allegations, the whirlwinds rocking rupert murdoch's mighty mediame empire. >>> markets in europe are deep in the red on heels of steep markets across asia. how are things moving where you are? >> down, a third session of losses and quite heavy ones. let's check in with the markets. really quite heavy, off by more than 2%, comfortably more than 2%, and with the paris and zurich off by 2.1%, zurich off by more than 2.1% and the same theme as we saw in monday's session which is the banks very heavily being sold at the moment heavily, there is clearing great deal of worry about the contagion spreading to italy about this moving into a generalized crisis with a lot of banks really coming under pressure with non-performing government bonds on their books, and just one other theme, thomas cook is down on a pr

his wife, pauline, was quite wealthy.t was her uncle who had purchased this home for the hemmingways. >> how many years did he live here? >> nine years. >> favorite hemmingway story that helps people listening today understand this man and the times that he lived? >> favorite hemmingway story? well, i loved the fact that he was a professional writer. that he spent an awful lot of time at his typewriter and he certainly practiced his craft wisely. but he complained to his editor, max perkins, about his royal typewriter. he said royal typewriters misspelled more word thans any other brand. he was a pro, but he had a great sense of humor. i loved that about the man. >> we all love living with spellcheck. >> today it's a great thing, yeah. >> we will catch up with you a little later and our camera will be in and out of the house so we can see more of it. thanks for your time. >> thanks for coming to the hemmingway home. >> as we go outside, let's listen to richmond, virginia. >> caller: i had a question for professor beegle a

but it was his wife, pauline, who actually installed the pool. and he found it under way when he returned from spain as a journalist in 1938. and of course the story goes that he was very upset that pauline had spent so much money on the pool and, in fact, said to her that you have spent all the money, you might as well take our last cent and actually gave her a penny which we have actually preserved to this day in the patio right out in front of the writing studio. >> you know, another landmark here, we talked about the cats with our guest, but right over my shoulder here, i think, is a favorite drinking fountain of the cats. can you tell me about that? >> sure. we know that ernest got the big olive jar in cuba and had it sent over here so that she could use it as a lawn decoration. but the true center piece is the old urinal from sloppy joe's underneath. that is certainly an interesting feature for all of the guests when they come here to see the cats drinking out of the urinal from sloppy joe's bar. >> how did he get it? >> it's a little diffi

he was returning from paris with his second wife pauline pfeiffer.as pregnant with their first child, seven months pregnant, and the idea was to -- they actually took an ocean liner from the port la rochelle to cuba and they were going to pick up a car here. pauline's rich uncle gus was going to give them a model coupe that she could drive in arkansas and the car wasn't ready when they got here so the ford dealership gave them a little apartment. and they spent six weeks here waiting for that car and during that time hemingway just fell in love with the place. he was writing a farewell to arms and he was getting a lot of work done and met some local people who took him out fishing. one of my friends likes to say the first time he got a 30 pound tarp on a 2 pound line. he was really hooked on key west. and so after that visit they kept returning for the next two years and then in 1931 bought their home here. >> if you haven't been to key west, let's give you a little bit of sense of place so you know where we are. if you were to land at the miami airp

pauline choiu, cnn, hong kong. >>> as pauline explained, japan is the second biggest holder of u.s. the debt come with the heavy burdens of japan's post tsunami and earthquake recovery. >> reporter: the stock exchange and currency markets are holding their breath waiting for u.s. lawmakers to strike a deal. investor concern is rising as tokyo stocks are down almost across the board, reflecting that what happens on the u.s. affects japan's economy from top to bottom, second only to china in holding u.s. debt. it hoeds about 20% of american debt. if the u.s. doesn't pay its bills, it's japan partially left holding the bag. japan's economic minister says he does not believe the u.s. will default, indicating u.s. bonds still remain a good bet for japan. he says if the worst case scenario happens and if the u.s. defaults, it would unleash a similar financial crisis to what the world saw after the subprime crisis in the u.s. he urged the u.s. to clean up its debt mess. economists say the rancor in washington also tells asia, the fastest growing economic region in the world that america's

our pauline chiou is standing by. are markets reacting to washington to the standoff over the debt ceiling? >> reporter: they certainly are, don. in fact, all the major markets are trading down at the moment here in the asia-pacific region and watch australia, as well, part of our region and the hong kong hang seng is down 0.7%. the shanghai composite down 0.9%. both those two indices opened about 35 minutes ago, now, china is especially concerned because china is the largest foreign holder of u.s. treasuries. the beijing government holds $1.5 trillion in u.s. debt so the last thing that beijing wants is for the u.s. to default because it could leave china very exposed. now, tokyo and sydney have been opened for about more than two hours right now. they're also in negative territory. the nikkei down by 0.6%. sydney, the main share market in sydney is down about 0.8%. this whole situation in washington is also affecting currencies. the japanese yen is getting stronger right now. the yen is considered a safe haven curre

. >> pauline might have to sell her house. >> when my savings is gone, what other choice do i have?lion people receive social security checks last month and for 9 million of them, it's their primary source of income. those who are still working aren't off the hook either. his father may have to move in with her. >> do a lot of things that don't require money and we won't have to worry about going to jenny craig because we aren't going to be able it buy no food because there's going to be no money. just pay the rent. >> as one retiree said, they live within their means and make tough choices every day. so should the government. in san jose, cbs 5. >> we don't often think of norway home of the nobel peace prize as violence. but tonight, seven people are dead in a massive bombing and at least 80 have been massacred at a youth camp. the suspect in both attacks is this man. a norwegian described as a right winger with antimuslim views. jeff is in oslo. >> reporter: the explosions ripped through downtown oslo at 3:30 local time. the first images, windows blown out, rubble in the streets,

moves on the precious metal miners among the main gain is as investors are looking for safe haven pauline metal is up over two percent this hour while lens old three and a half percent in the black banking stocks are also high b two b. is gaining over percent supported by news it may soon acquire another twenty percent bank of moscow now tell the stories russia may place you are gong on the foreign markets in two thousand and twelve deputy finance minister sergei start chalk says russia plans to boost borrowing significantly over the next three years . it was. worth it russia has an important competitive advantage it's so high debt sustainability this allows us to convert the budget deficit by borrowings and i will cross borrowings will amount to seventy two billion dollars centrally in the next three years. the united states has less than a week to come up with a deal to raise its fourteen point three trillion dollar debt ceiling a failure of the pledge of a politicians to agree could risk an unprecedented downgrade of the world's biggest economy at the moment america is running a huge d

russia's leading gold producer pauline as gold has been taken over by its london based subsidiary gold as a result of a share swap because the gold worth two hundred ten million dollars merges with politics gold worth fifty times more than the company on the name of gold international will start trading on the london stock exchange on a wednesday the combined company now wants to join forces with a global rival as early as this year to become one of the world's top three gold miners. and let's take a look at the markets no oil has slipped into the red this hour light sweet as news in the around twenty two cents and the grant is actually up this hour point zero two cents and prices remain under pressure as a result of washington wrangling over the u.s. that ceiling. and e.u. markets opened lower and with washington is that problems affecting investor confidence both the foot sea and the dax are losing actually the footsies now gaining almost half a percent and the dax is losing almost half the secular what's happening in russia markets are mixed this hour world where the r.t.s. up almos

the hospice sent that despite those reports saying pretty rosy financials for the first quarter and pauline that sold was an exception from the rules up almost four percent at the close because gold prices soared something that's grown very quickly the past couple of days as it's a safe haven as it was you know but i can wrap up the things. as a kid here for today for investors was the prices in europe and the stock markets was negative while marcus was the bottom one percent which is comparable to european stock market was good news is oil price which stays high gold prices there continue and which drives some storage and stocks to new heights i mean for the metal which editable three four or six percent which is quite different from was a softer increases in my view to talk more of the day. or that's it from the business team for monday's business updates join my colleague but in a cost about eight moscow time with a fresh cheese day update if you can of course kevin is next with that. culture is that so much of a given to each musician the current financial markets would be a stalemate i

was down one half percent despite publishing project financial results and a good exception was pauline that's all it was on the rise of almost four percent as the rest of the people safe haven in the gold related assets let me but i can wraps up today's trip. rick your idea for today for investors was their prices in europe and the stock markets was negative while marcus was the bottom one percent which is comparable to european stock markets losses good news is oil prices stay sky gold prices they're thinking and which drives some historical stocks to new highs for the metal which added about three point six percent which is quite different from ours assaults on increases in my bid to talk more of the day my business r.t. will be back in fifty minutes time comes next with its. emission free cretaceous three pounds for charges free. range months three. three stooges free. download free blog counseling videos for your media projects a free media. tom. download the official location. called touch from the. life on the go. see video on demand on t.v.'s my old comes an r.s.s. feeds with th

a little earlier pauline choiu spoke to him about the impact that it might have on foreign holders such as china and japan. >> i think they're work very hard to reach an agreement, and we clearly want to reassure the rest of the world that a lot of work is being done to resolve this issue, and this is clearly something that is important to its own economy but also we want to reassure the world that this is a very high priority in the administration, and i think for many members of the congress who may have differences. but i think a lot of people understand the significance of resolving this issue in a constructive way to underscore the full faith and credit of the united states internationally and domestically. >> the world trade organization recently ruled that china has violated trade laws by limiting quotas for certain raw materials, and china said that they're going to work on this. but recently they just announced their expert quotas for rare earth and minerals and it's basically the same as before. and some manufacturers are saying because of these quotas, they feel compelled to

. >> you know, this is a -- it was always going to be and it will be a perils of pauline moment.hat there's going to be agreement and i still believe in the end there's going to be agreement because there has to be agreement, neither side can give what they need to give and particularly these republicans until this train is bearing down on the poor young girl tied to the tracks. you can make a case that it's going to run over here this time, but the things they have to give on revenue as we call it they can only give at the last minute. >> stu, what fascinates me in three months. three months all the wise men and women said the deal will be struck in the united states senate. the irony is that those guys are the first ones to say short term deal cut and run. go, go, go. the senate guys are basically on the sidelines. this is obama and boehner and to a lesser extent steny hoyer. >> house republicans are the true believers and drew the line in the sand. they are the key to this. then the white house has adopted a number of different strategies, i suspect will continue to kind of mo

agree a one week, say, increase in the debt ceiling so they can put it all together so it's perils of pauline and the tea party wins. >> okay, okay. the tea party wins. david korn, i don't agree. do you agree? >> no. i think the gop is all tail and no dog now. the tail is the tea party. look at the recent polling. we may get to that later. >> let's look at the new polling. you've raised a good question. ap new cbs poll, you giving orders now, david. shows the president up happy in debt negotiation but far less approving of president obama. knop great winners. president, 43% approve, 48% days glee. better than democrats. 31%, 58% disapprove. and look at republicans. 21% approve and 71% disagroove. pat, you say though republicans don't like the approach, amend the constitution, cap and do this stuff, 18% of the gdp and all this, social engineering here, fiscal engineering and risk default by our government, perhaps a spike in the interest rate and all think this at no cost. your new tea party confederates will succeed? >> to this extent, we'll get the debt ceiling increase and barack obama will

>> no. [ laughter ] >> reporter: pauline says if the federal government goes into default, she might have to sell her house. >> when our savings was gone, what other choice did i have? >> reporter: nearly 55 million people receive social security checks last month and for nine million of them, it's their primary source of income. those still working aren't off the hook, either. rochelle thomas' father on social security supply the to move in with her. -- might have to move in with her. >> to do a lot of things that don't require money and we'll have to worry about going to jenny craig or any of these other places because we ain't going to be able to buy no food because there going to be no money just pay t rent. >> reporter: one retiree says they live within their means and make tough choices every day, so should the government. kiet do, cbs 5. >>> some good news yesterday for bryan stow and his family. they say he was alert and able to communicate back to the nurses on command. that comes the same day as the lapd admits they were wrong. this after repeatedly insisting that they have

it's like the perils of pauline, and, you know, we're up, we're down, we're over, we're out.y really knows how this is going to end out. my suggestion is that whatever the public's impressions are today, they really don't matter. what's going to matter is what happens tuesday and thereafter. will there be a default or not? if there isn't a default, then i think the public's attention goes right back to the main problem which is the lack of jobs, the sour economy, the lack of economic growth. if there is a default, though, oh, my god are we in if for a game game. get ready. the fingers will be pointing every direction. jon: and you say most people are blaming republicans and maybe especially the tea party component among the republicans, but you say that's because of news coverage? how do you mean that? >> well, i think the news coverage has focused on the tea party members of the house caucus in the particular, house republican caucus being, quote, the problem. that is, they're the ones refusing to compromise. we need to remember they're doing what they were elected to do. yo

. >> and we'll eat something called pauline. >> poulin. >> p-o-u-l-i-n-e. >> pouline. >> it has cheese>> you know who that is? >> the bear naked ladies. >> they're not going to be naked. >> the number one reason to visit canada. we can have a -- >> live audience! we are so excited. >> oh, canada, we like it. >> we hope there is more than ten of you. please don't embarrass us. >> don't leave us alone. >> bring your mother, bring your aunt, not your crazy aunt, the other one. >> your crazy aunts are doing the show. >> that's right. >> there's a great piece of advice out there and we like to be on the cutting edge of these things. this one has 600,000 hits. it is a break dancer of sort. he's a guy that looks like he's all cartilage. it's almost like no bones. ♪ ♪ ♪ ♪ >> he's so muscular to be so -- wow! ♪ ♪ ♪ >> he's going to crack some moves in a minute. i'm sure it's about to happen at any minute. >> is he alone in there? >> i like the apartment. okay, mr. barelino. >> yeah, do it. >> okay! >> you know what? he should be against a complete white background. apparently it's a lot more fa