for advances economies especially the u.s. and japan, i see growth being below potential because of the financial imbalances. >> that was nouriel roubini speaking to cnbc from a mining conference in calgary earlier today. >>> joining us now for some analysis is the executive director of helmsman global trading, live out of hong kong. good morning to you. i want to start off with the fact that we have a wonderful performance this july across the board in the markets.s. we've got lots of data across the board this week as well. what's in store for august here after such a great performance and so much news coming out here in the first week of the month?? can we put it to bed after this week, or do you expect we'll continue to see gains? >> $64,000 question. one of the things i would look at is we've had stellar performances from the earnings firms in the u.s. one of the things i would look at and bear in mind, is that these earnings are coming not through growth market share through earnings profits from selling products but actu

clearly, if the u.s. consumer was going to collapse again, i don't think the chinese, indian, brazilian consumer would be able to compensate. but if we have a stabilization, as i believe we will have in the western economies, i think that the marginal call is going to be on the emerging economies and i think that's the engine of growth. >> manford, what do you think? to believe what virginie said makes you think asia can decouple with what's going on in the rest of the world. >> i have to agree with her to a larger extent. the asian consumer is becoming more important. but the absolute numbers don't show it. it shows an increasingly large consumer. but we need the situation where the u.s. consumer does recover to at least a moderate extent. i don't think complete decoupling is a possibility. >> mamprett gill, thank you, thank you, virginie, as well. >> thank you. >>> west lb is refusing to comment on suggestions and reports that it will be the first german lender to use the country's bad bank scheme. the r

we must wait until the u.s. and european economies recovery. >> you seem to think that the dpj party will win the election at the end of the month. >> to a certain extent, stronger gdp numbers could affect that. look at the details. 0 apost 0.3% to gdp growth. the total size of that was more than 4% of gdp. it demonstrates a recovery by policy. >> it's bertha coombs in the u.s. we're seeing global markets sell off today. are you concerned this might be the start a real sell-off, or do you think basically markets here are taking a breertather, thing are still on track? >> the japanese economy does not just depend on u.s. consumers. how u.s. consumers can spend. these numbers disappointed the japanese equity markets as well. the global market has been waiting for the recovery in the u.s. expenditures. this is the case in japan as well. that made some disappointment in the equity market today in japan. >> we'll have to leave it there. thank you very much for your time today. the managing director at capital markets.

it's courtney here in the u.s. yesterday we got our first read on the division for the gdp, came in better than expected. we're looking for some consumer data out today. some experts are still afraid we're going to slip backwards. where are you, do you fear a double dip? >> i prescribe to the upswing perspective. what i had done is look at lead indicators to try and ascertain where we are likely to head. and i think the more one can discern most significantly is the probability that in the fourth quarter, we will begin to see positive movement in the unemployment numbers and i think that will be extremely good for consumer spending. i do not prescribe to the views that we have to have a really very sudden and significant pick up to the savings ratios. i think most of it is in the bag. >> roger, are you in that same group, are you a bit more bearish? again, are we on our way out? >> no, basically we are still positive for equities. and we believe now that since we have more evidence that also europe is coming out of

as you can see, the u.s. much data ahead of the opening bell. that's it for "worldwide exchange." i'm bertha coombs in the u.s. >> i'm beckiky meehan in europe. >> and i'm chloe cho in asia. have a profitable wednesday and thank you for watching "worldwide exchange." hi, may i help you? we're shopping for car insurance, and our friends said we should start here. good friends -- we compare our progressive direct rates, apples to apples, against other top companies, to help you get the best price. how do you do that? with a touch of this button. can i try that? [ chuckles ] wow! good luck getting your remote back. it's all right -- i love this channel. shopping less and saving more. now, that's progressive. call or click today. >>> good morning. the oracle of omaha speaks. good news. he sees the u.s. economy on the path to recovery. but he has a warning for washington. spending has is consequences. >>> tech titans hewlett packard out with quarterly results. meantime, google marking its fifth anniversary as a pub

yesterday in the u.s., the adp data was supposedly hurting the u.s., and in europe, we're having noneof it. we're continuing on our own. >> we need to be a little careful. this is the summer doldrums. there's a lot of people away. europe had a little more catchus to do, obviously, than others. some of those earnings numbers are coming through better than expected. let's get real about the outlook here. right now, you're looking at the united states, unite kingdom sxaul three of those are in the firing line for the moves following on from the sentiment indicators, getting into the reality of bank lending. so far, it ain't happening. we've been traveling easily, comfortably, hopefully since the marleaus. we're 50% up on western indices. but they started back in october. what we need to see right now is more bank lending coming through. and we see commerzbank and blessing says he expects loans to be down. sooner or later, the market is going to stop it. >> with that in mind, why is it that we're seeing this massive rally in the banks still? yesterday in the u.s., bank of america higher b

the streets outside. jamaat presented a critique of u.s. policy and conduct. from the contentious u.s. drone missile strikes in tribal areas, to the cultural onslaught from the west corrupting muslim youth, to pakistan being dragged into the afghan conflict. pakistan political analyst tareq pirzada says despite the rhetoric, these meetings were political good sense. >> these are pragmatic politicians. they can play to the galleries, they can satisfy the public, make public statements which are apparently antagonistic to the united states but at the same time they can tacitly support the policies. >> reporter: and on the american side? >> here they are trying to create an impression, at least, that we are not walk away. we air partner for a long time. >> reporter: but pakistanis are politically savvy and well informed. few here approve of the ongoing an presence. however broad and incluse the engagement this time, america has yet to convince pakistan's people. public opinion in pakistan remains suspicious of america's motives and goals in the region, suspicio of its relationship with ind

the u.s. will spend more in afghanistan than in iraq next year. that would be a first. the p pentagon has asked for about $65 billion for afghanistan and $61 billion for iraq. u.s. marines entered new territory today with guns blazing. correspondent greg palkot has exclusive pictures from afghanistan at the start of a new operation against militant forces. >> the taliban took an explosive hit in northern helmand province today. gulf company 23 marines is leading a force of 500, aiming to cheer all the taliban from the town of dahna, a crucial resupply and reroofing base for the militants. the marines reached the cam much and ran into a barrage of taliban fire. small arms, r.p.g.'s and mortars and the marines answered in kind and then some, putting up with relentless sniper fire and the searing heat. >> the marines have been on the ground for about four hours now. they say that they have killed some of the taliban, but there are several others out there and they are ready for the kill. this is a

what is interesting in the u.s. is that ex ports have come off significantly and the likes of caterpillar are showing gains on the back side of the market. longer term, we also feel that the rising of the savings rate in the united states has peaked. indeed we saw in the second quarter gdp numbers the high savings rate has been adjusted down to 6.4%. so it's not as dire as we thought it was, sort of the retraction of u.s. consumer spending. if that trend continues, then i think long her term, there are green shoots to be seen. >> franz, looking out on a 12-month view, do you see green shoots of recovery? and if you're looking at a more cyclical bias, do you look at emerging bias? >> basically, on the first on the green shoots, we expect an economic recovery into 2010 taking place, albeit a fairly shallow one, but it is not far from the consensus. as far as markets are concerned, we were continue to tell them into a more cyclical bias. here i'm talking about europe, maybe even japan, which has been a failure, a disapp

in the u.s., tim geithner loses his cool. reports say the treasury secretary blasts fellow regulators for not getting behind president oh bam in's fm reform. >> and i'm steve sedgwick in europe. ubs is hurt by wealthy clients taking money elsewhere. >> here in asia, the world's number one automaker, toyota, rolls out a smaller than expected quarterry loss. >> hello and welcome to "worldwide exchange" with. futures are pointing to a little bit of a breather, perhaps, at the open after the breathless run up that we've seen that has led the indices all to year highs since last november. the s&p having closed above 1,000 for the first time since before the electric. dow futures right now, down interest 48 points or so below fair value. nasdaq futures down about 10.5% and s&p futures off by about 6 or so. taking a look at the ten-year bund, we'll take a look at income and personal consumption this morning pt. we've got the ten-year yield at 37 6/2%. steve, even though we have taken a breather, it does seem as though everyone right

if you take a look at the u.s. futures, remember, you have a three-day winning streak as we closed out on wall street. a little bit of strength in the futures if you take a peek at the fair value here today. the dow, nasdaq and the s&p, little change in the fair value. if you take a look at the bund in germany, first we'll take a look at the ten-year bund. set the peace. 3.27% is the yield there and you go home with, viola, 3.42%. we'll call it 20 basis points in your pocket. and the price of gold at this time of the day is going to sell for $940 an ounce. little changed on the session. becky, take it away. >> i want to get back on those euro zone august flash services pmi. it was a reading of 49.5, that is a significant increase from july. still, just fractionally below that 50 par level, if you like, and well ahead of the forecast, as well. 46.5 was what the analysts were looking for there. manufacturing pmi, again, 47.9. ahead of forecasts, ahead of the previous month, but still below that par level by just a fra

so unless the yields on u.s. treasuries long bonds actually rise, it's hard to see treasuries operating a much larger space in the gpif. >> naomi, the elections, how might they change general investors' attitudes towards japan? >> well, there's a potential that the elections can change quite a lot. for instance, currently, many foreign investors are worried about the approach of japan towards these large companies and many had talked about return on equity being linked to greater deregulation and greater roll of free markets in determining the price of japanese assets, including credit assets as well as stocks. now, we are seeing the formation of a credit curve as we see record bond issuance among large corporate in japan. now, if a new government encourages the formation of a credit curve of capital markets, perhaps we might see greater interest in equity assets, as well. the other side of that, of course, is reform within corporate, which is separate from government reform and that probably has to come in the fo

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 important points 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. presence to 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, perhaps the

as for the u.s. markets today, mike has a quick look at how the futures are shaping up early morning side. mike. >> thanks, maura. at this point, they're shaping up pretty nicely. we could have a seventh straight up day for the dow with all major indices pointing to a higher open. in about four hours time, we are going to get numbers on durable good orders. even with stocks moving higher yesterday, we did see investors buying treasuries, and so the prices went up and the yields, which move in the opposite direction, went down. today, that's reversing course with the yield creeping up just a tiny bit at 3.45% on the benchmark, a ten-year treasury note ahead of, yet, another government debt auction later this afternoon new york time. maura. >> more details here on the chinese markets, you know, that close above or nearly 2% higher today wasn't quite as easy as it looked. the market slumped more than 1% at the open. traders are saying there's a lot of nervousness with the markets and are warning of a tur

in the 1970s, u.s. ulation and the environment were widely and publicly linked in popular culture and by the environmental movement. but today the environmental movement eschews the population issue. in the first of a three-part series, we look at why and how this happened. organizers of the first earth day in 1970 called u.s. population stabilization critical to restoring the environment. the nationwide celebration produced a particular groundswell that spurred congress and the nixon, ford and carter administrations to enact a host of sweeping environmental laws including president nixon's national environmental policy act, often referred to as the nation's environmental magna carta. >> i mean, they really did a phenomenal job of studying it. it was a very scholarly approach. they had economists, environmentalists, everybody else, trying to look at the whole effect of population growth on the globe. the interesting thing is that nixon set it up. and nixon was professed upon it, he really kind of underst

i happen to understand that the u.s. strategy will to be keep the marines in certain places and to occupy the terrain much more than the case before and then we have to see it will take a few months. >>> holding ground problem is the question. what direction is the strategy going to take? >> to want more. more troops. more trainers. more money. more reconstruction. above all, more effort to pursue the afghan government that it has to improve the services that it delivers to the afghan people. >> successful in one way. it's successful because it's showing this administration is committed to offensive operations there and even if we can't sustain them for a long period of time, at least it shows everybody the world the whole world that obama is willing to do this kind of operations and the u.s. can pull them off and that's a big deal. >> i think how long the u.s. public can sometic, particularly if there are more can stomach it. it depends a lot on the benchmarks that the administration has yet to lay out. that it's working

he became the top-paid u.s. year according to a new study of the corporate library earneding $72 million. the vast jrt of that came from proceeds he received when blackstone went public in 2007. it also paid off to be in the energy industry. seven of the top ten highest paid ceos run an oil or natural gas company. becky. >> well, the deal is done. volkswagen and porsche have agreed to integrate by tend of 20 1. the finance deal, volkswagen plans a capital increase of shares in the first half of next year. vw's chief executive, martin vintercorn is expected to run the combined entity. >>> finally, if all the excitement of the summer rally proves too much, this is the story for you. a new report shows a nice cup of tea calms britains down in crisis. 68% of uk citizens turn the kettle on which facing a dilemma. tea really does have neurochemical properties that help relieve stress and it could remind us of earlier times when we've been looking after. do you really need a record from university to tell you that kind

in other news today, the top commander of u.s. and nato forces in afghanistan warned the taliban is making major gains. u.s. army general stanley mcchrystal spoke to the "wall street journal." he said, "it's a very aggressive enemy right now. we've got to stop their momentum." to do that, mcchrystal plans to put more troops in the country's most heavily populated areas. he'll present his overall assessment later this month. a typhoon has left devastation across southern taiwan. the powerful storm dumped up to 80 inches of rain over the weekend. widespread flooding submerged towns and even washed away a three-story building. and mudslides buried an entire village, leaving as many as 400 people missing and feared dead. the storm moved on to mainland china, where nearly one million people were evacuated. hundreds of americans began lining up in eight cities today for swine flu vaccine trials. about 2,800 people will take part in the government-funded testing. it's part of the process of getting a vaccine for widespread use this fall.

the u.s. will remain a full partner in this effort. we will work to make sure mexico has been supported needs to dismantle and defeat the cartel's. the u.s. will continue our efforts to reduce the demand for drugs and continue to strengthen the security of our shared border. not only to protect american people, but to suspend the illegal southbound flow of american guns and money that helps fuel this extraordinary violence. third, we reaffirmed our commitment to our common boundaries including democracy, peace, and human rights. we discussed the coup in honduras. our three nations stand united. president zelaya remains the democratically elected president. cothe constitution must be restored. we will work with the and organization of american states to get a peaceful solution i look forward to welcoming prime minister harper to washington in september. i look forward to welcoming both my friends at the tree -- g-20 summit in pittsburgh. where i hope to reciprocate president calderon's hospitali

i don't think so the u.s. will lead the sborld recovery. there's a question if the emerging markets in asia can generate enough domestic demand to see economic recovery in their borders. i think the longer term, that's probably going to happen.n. but it's a very tough adjustment for china to make, given their whole industry model has been based on exports for the last few decades. in japan, maybe you could argue because they've had 20 years of this deflationary background that they are further ahead. they have less leverage in the banking system and among major industries. perhaps they're in a better position than say the anglo-saxon economies. those expecting an export-led recovery based on u.s. demand, that's a pretty optimistic outlook. >> who will lead the recovery, you think the chinese might be the ones? >> i don't think we have going to have a major recovery. i think we've seen an inventory rebound over the last six months and the effect of interest rates slashed to zero. we've seen some effect from government stimulus packages like

the u.s. military says 51 u.s. soldiers in iraq were diagnosed with swine flu. the associate press reports all of them have fully recovered after treatment but 71 other u.s. soldiers suspected of contracting the virus remain in isolation. ap says iraqi health officials have confirmed the country's first case of swine flu death. the woman was from the southern town of najaf. the u.s. military is testing any soldier with a fever or sore throat. >>> a public funeral is being held for 8-year-old robert manuel. his body was found in a canal in boise, idaho. he disappeared after leaving his mother's apartment on july 28th. police are investigating his death as a homicide. there is no evidence the boy was abducted by a stranger. manwill was visiting his mother. >>> president obama is flying to mexico for a two-day summit to meet with leaders of mexico and canada. they are expected to work on trade, immigration and drug trafficking. clean energy and the economic crisis are top priorities. all three co

there is nothing to delineate where canada starts and the u.s. ends. >> well, everybody is on the honor system, including accused killer ryan alexander who police say ripped the teeth out of this woman's head and removed and i assumed cut off fingers so that she could not be identified. folded her body up in a suitcase, and threw her in a communal dumpster. okay. back to you, caroline, explain to me, he leads the u.s. coast guard on a high-speed chase. we know that he wiz -- his car and his empty boat trailer found at point roberts border crossing, how does -- logically speaking, caroline -- how would he have done it? gone from there? >> well, he can literally drop the boat off at the marina and walk wherever he wants to. you can walk through the subdivision, and it is a row of homes. this is a quiet community, nancy, about 1,500-some-odd residents who stay here year-round and booms in the summer months, because it is a beautiful ocean-side resort community and about 5,000 people here in the summer, and he can walk up and grab a latte and walk thr

it's clear that the u.s. consumer is doing nothing, that the spending is still very weak, both in the u.s. and europe and that is going to undermine the global economic cycle. and i think sentiment towards it could weaken in the months ahead and asian equities could drop 10% to 15%. >> we're getting news that china's sovereign wealth fund is looking to increase its joe seas by this year. surely, they must view that things are bottoming out. >> even at the six months horizon, the economic news flow will be very supportive for equity markets. but equity markets have already bought the story of a very strong growth in inldsys and an inventory led recovery will show that business equipment is currently leveling out. this is also the case for the housing sector. all in all, we should not -- of a very firm gdp growth during one quarter, for instance, during the first quarter, the u.s. economy may expand at 5% the annual rate. having said that, this is for the short-term. in 2010, as daniel mentioned, on the consumer

while the u.s. and the current government are increasingly unpopular, the taliban is even more disliked, with popularity ratings never going beyond the single digits, at least for now. nick spicer, al jazeera, washington. >>> whether the violence in afghanistan and iraq can be brought to an end anytime soon is a question on many people's minds. nora bensahel is a senior of political scientist at the rand corporation and expert on american efforts in afghanistan and iraq. and she joins us from washington. thanks very much for being with us. >> thanks for having me. >> many people of course are wondering has our involvement in iraq and in afghanistan, in terms of lives lost and money spent, been worth it? and i guess the question to you is, has it? >> well, i think that the two conflicts are very different and has had different sets of objectives. the war in afghanistan is very clearly tied to what happened on september 11th, 2001. those attacks were coordinated and planned from afghan territory. and s

a mafring company in the u.s. that consolidated plans taking some jobs and a plan out of china and building a new state-of-the-art facility in jackson, tennessee. what does it mean and why are they doing it? will others follow? chairman and ceo, dave roberts. good to have you with us. dave? >> thank you and glad to be here. >> what you have done in a sense is a consolidation and bid consolidation of u.s. plans, fundamentally, why take production out of china and bring it back? >> what we find is that workers in the u.s. are actually more productive than workers in china. we can produce as many pieces or tires with fewer people. frankly we would rather be here in the u.s. than in asia manufacturing for the u.s. market. that plus the fact that it actually proves our cash flow. we no longer have inventories going back and forth it and it leads us to the philosophy of manufacturing. >> saving about $25 million. >> that's correct. we will save about $25 million just in the tire facility consolidation. we have other cons

. >> i'm bertha coombs in the u.s. the fed kicks off for a two-day meeting. >> hello and welcome to cnbc's "worldwide exchange." global equities are trying to nudge higher at the moment. the ftse cnbc global 300 is up 7 points this morning. an hour into trade, we have gains after slim losses yesterday. we hit ten-month highs on friday. we'll see whether we can finish back at the highs today. european stock markets one hour into the session, we're up 0.4% on the ftse 100. xetra dax up 0.6%. cac 40 up 0.6% and smi nearly flat. the chinese data shows below forecast factory expansion, as christine was talking about. dollar/yen, 96.85. euro/dollar, 1.4160. sterling/dollar is below 1.65 at the moment. euro/sterling is very much in the ranges. christine. >> here in asia, a positive showing across the board here. in china, we had that industrial production number arising for the month of july, but coming in below expectations. this particular data, really, the key focus. the nikkei 225 up 0.6%. the kospi up 0.2%. the bok kept r

the u.s. government has talked to the families of the hikers. and also the u.s. is hopeful that the swiss can help in the situation by getting the icrc, the international red cross, in. so that's where it is pretty much right now. but also, don, at the same time, the administration is saying they want them back. they're saying this is similar to north korea. this could be a short period of time or as long as a long period of time. because it's all in the iranians' hands. they're trying to figure out who these people are and why they crossed the border. >> stick around, there's more to talk about. we'll see you in little bit. how will these young americans get back home? ken robinson, former u.s. military intelligence officer. let's talk about negotiating for release of these detainees. what is the strategy involved in dealing with a hostile government here? >> strategy number one, shut up r. not talk publicly about it. number two, talk to anyone who is talking to the government of iran. that is, the prime minister of iraq has good relations with the government of

told the u.s. he knew of two others who were called, seen an american jet hit the desert floor on the night of january 17th, 1991, and that veterans had buried the pilot of that plane in the desert. so the marines very quietly, no one knew this was going on over the last several days had gone to this site, dug up skeletal remains and bone fragments. in fact, let me go back one second here. one of the iraqi citizens said they were present when captain spiker was found dead at the crash site and his remains were buried. what has been happening out of public view over the last several days, the remains brought back to the united states, positively identified by the armed forces substitute of pathologist, and it was yesterday that the chief of naval operations admiral was able to call the spiker family and notify them of the positive identification of captain spiker's remains in iraq. bringing to a close a chapter that had been very troubling to the u.s. military for the last 18 years. obviously, they'r

fifty-three americans at the u.s. tehran called in the turmoil along the country's islamic revolution and government takeover. they were held captive for more than a year. a secret rescue operation was even planned to freedom but that ended in disaster when two aircraft involved crashed killing eight american servicemen and injuring several more. a deal was finally reached in january 1981. the hostages released just minutes after ronald reagan was sworn in as president. >> some major court, is about to unfold in iran. remember the thousands of people have flooded into the streets of iran protesting the june election results to give now about 100 of the activists and protesters are going to stand trial. they are accused of plotting and i'm quoting here "velvet revolution" in trying to take down the government. this is days before mr. martin in him and in general be sworn in for his second term. >> julie: it's the weapon of choice for militant bent on killing american troops in afghanistan. today it claimed the lives of

a report by the american diabetes association has suggested 2.2% of the u.s. population or over 6 million people, have on diagnosed diabetes. hundreds of thousands of people die every year from diabetes- related conditions. what would be the best way to reach these people? >> i think there is a lot we can do. to raise awareness in our own circles of life, our family, our friends. reporters in the room on a larger scale. just try to raise awareness and do what we can to get people involved. everybody has a story, when it comes to diabetes. when someone comes up in s. something to be signed for their knees or daughter, they will say that she is a diabetic and she has watched you and been encouraged by which to have to said. as far as the undiagnosed kids, and people who have diabetes and the world, if you can, go check it out if you start to see symptoms that i have talked about "thursday, losing weight, having a bad attitude, go to your doctor and check it out and see with the deal is. you never know. i get hit with a after having 13 years of perfect medical his

when you go to the u.s. committed have supplemental insurance because the costs are not the same trade the insurance in canada will pay what they are paying here, but it is a sometime not the same amount. we need to have supplemental insurance if we go outside of the country. host: use say it comes from taxes. can you break down what the tax structure is in canada and what percentage of your income goes to fund health care system? well, it is a gradual income-tax. some are not paying income tax at all. the maximum you have to pay is about 46% if we compare among provinces. there is a federal and provincial income tax. the maximum is 46%, but some do not pay income tax. even if not, they are covered by the system. it is not a premium you pay if you are working or not. if you do not have a job the government will give you. you merger will give you care. it is not related -- the government will give you care. it is not related to having a job or not. host: jacqueline is joining us from california. caller: good m

as i speak to people in the u.s. you have the very best of medicine, but the lack of universal coverage is the problem. also, the cost of the system there -- just a very simple statistics. the u.s. spends nearly 15% of its gdp on health. here are in australia spend nearly 10%. at the u.k. spends almost 8%. i think you can does not spend enough, but the u.s. is spending a lot of money for a wealthy country. much of it is going into administrative costs. i'm a medical practitioner myself and my colleagues in the u.s. will talk about how they are controlled by insurance companies, about what services they can provide. we do not have those same sorts of controls here. there is administrative waste in the complexity there. the life expectancy in the west happens to be four years less than in australia, despite the greater cost. more money is spent but without a clear, improved outcome. many of the top academics in u.s. universities have been very clear looking around the world, at canada, european countries and looking at

i think you can so that with the u.s./china strategic dialogue in july which made japan very nervous. >> japan going to number three. for the united states, what is the real impact here? just a psychological thing? we get over it and -- >> oh a psychological element but in terms of real substance and size this is a historic moment. the first time that the industrialized world, the world's coming out of a recession in which we're not going to be pulled out by either europe, the u.s. or japan. the traditional economic locomotives. we hope it is china, asia, in general. i find it interesting that today, in the world of a g-2, the u.s. and china, both nations right now in their economies are being fueled largely by stimulus programs. china has one. we have one. how solid, how lasting are these going to be as you indicated? we don't know. >> we don't know. and there could be a downturn as a result of when those programs end. but that's going to have to wait for another day. rana foroohar, thank you very much. garrick utley. a

mcchrystal said the u.s. is shifting its strategy by putting more troops in heavily populated areas to protect the civilians. there are now 62,000 americans in afghanistan. >> this country is still sending more troops to afghanistan and so is australia, which has just over 1,000 soldiers there, but sending in more to help provide security during the presidential election ten days from now. sally sara of australia's abc is embedded with some of them in the middle east, as they prepare for their deployment to afghanistan. >> reporter: they start training at dawn before the middle east and desert heats up to 45 degrees. these australian troops are only two days away from afghanistan. after many months of preparation, they are ready to take on the taliban. >> what we don't do is give these bastards an edge. if they want to kill us, then they are going to fight for it all the way. because they would like nothing more for every one of us to dead, that would make their day. >> reporter: for many of these soldiers, th

we'll show you why the u.s. is offering a $50 million reward for their capture. michael ware will take you behind the scenes. >>> also, what if your child had only one shot at survival and your health insurance might not cover it? how far would you go to raise money? we'll tell you what one family is doing. >>> also twitter, facebook, myspace, that's how you get in touch with us. >>> two fights, two family vacations, same horrific end and new york sky. when a small plane and a helicopter collided over the hudson river, nine people are dead and now we're seeing the faces of this tragedy. 60-year-old steve altman was piloting a plane when it apparently slammed into a sightseeing helicopter before noon on yesterday. now, his brother dan and dan's 15-year-old son doug were on board heading to the jersey shore. already a video tribute of the smiling pennsylvania teen is posted on youtube. in the helicopter, a pilot and five italian tourists celebrating a wedding anniversary, 15-year-old james and his parents were kill

in the u.s. today, the focus on housing. more evidence in the housing sector perhaps is at a turning point and results from home depot. >> we are bringing you the latest, breaking news. cpi data here in the uk hitting the wires. now it looks like july cpi is at zero on the month. it was forecast by 0.2% on the month. let's give you rpi. july core cpi, 0.1% on the month. having been forecast down by 1.4% on the year. so cpi figures coming out, moving in the direction that we had expected. what's your reaction to those figures? >> well, they're moving in the right direction, as you said, which is downward. particularly the headline cpi six months down the road now below 2%. but it isn't down as much as we thought it would be and i think that the reasons are to do with the pound and with high food priets. >> and i'm terribly rude. i got to excited about the inflation data that i forgot to introduce you. trevor is a chooe economist at lloyd's tsb corporate markets. we are seeing a bit of movement, as well, in some of the markets

we've seen that in the u.s. and probably throughout the world. goldman sachs has been through headline growth here. china, we've seen two breakdowns in the prize. we've seen more or less a dead cap boun bounce today, which has been a recovery. it's giving you a warning sign already that these markets are overinflated and too high and china should not be directing the way the world market should be moving up or down. >> martin, that is exactly my question. this is christine here. why is china having a big impact on market sentiment these days? it never used to be in the past. >> i think it's more to do with fund shifts in that in the summer months, we've seen volumes decrease dramatically, as they normally do. but we've seen a lot of funds flow into asia, into china and into hong kong especially. and with the stimulus packages coming through, they are not necessarily going into the right areas. we've seen an overspill into the stock market and into the property markets. so we've seen the asset bubble that's been talked about many times. you can se

the u.s. economy lost 371,000 jobs last month. to keep up with population growth, economists figure the u.s. needs to create 130,000 jobs a month. in a recovery, the u.s. should create something like 300,000 to 400,000 a month, enough to begin reducing unemployment significantly. that means the country won't recover the jobs lost to this recession until somewhere around the year 2014 at the earliest. economist dean baker says it won't be easy to replace the jobs lost because the recession has slammed housing and auto manufacturing, two sectors that usually drive the recovery in hiring. >> in the case of residential construction, we have enormous over-capacity. it's very difficult to imagine any significant increase in employment in that sector for years to come. in the case of autos, we can see increased demand, we probably will see increased demand, but a lot of that demand is going to be for foreign cars right now. >> reporter: of course, the economy will eventually create enough jobs to make

i will let the two u.s. with us describe the charges in more detail but suffice it to say the criminal conduct alleged in these indictments did not take place solely in mexico. rather, it played right out here in our own backyards. for example, in chicago, we have arrested and charged individuals who allegedly worked directly with mexican cartels to receive thousand kilo shipments of drugs and dispersed those drugs into the chicago community and throughout the country. we have learned from previous successful experiences in fighting organized crime that we must not only go after the leaders of these cartels but also seize the money that funds their operations. and that is why in these indictments we are seeking forfeiture of more than $5.8 billion in illegal drug proceeds. if we can suffocate their funding sources, we can cripple their operations. breaking up the mexican drug cartels and stemming the flow of drugs and illegal fire arms across the southwest border is a top priority for this administration. an

we're trying to wean the u.s. ff of fossil fuels and get better emissions from our vehicles and this is a kind of a step in that direction. one could even look at this as the first step by the administration to put their toe in the water to see how this is going to... how the people are going to react, how is it going to work in the marketplace. and there are other levers that they can pull and other programs that they might want to institute in the future that may work even better than this or follow on this. >> reporter: ed tonkin, you mentioned this has been a boon not only for dealers, it's been a boon for automakers. how much of a boon? we saw in the report that we just heard that, what, only% of these cars are made... that are selling the best are made here in the united states. so what's the picture a you're getting of which cars are selling better, domestic versus foreign. >> well, judy, let me correct that. 45% of the vehicles sold with this program are american company produced. many of the asian made veh

the u.s. or britain did enough to stop a megrahi's release. >> it's a wound, right and got torn open bit fact my brother's murderer was sent back and today salt poured into the wound making it worse. i have to say what bothers me the most it is almost as if the obama administration and brown administration have committed gross negligence now really upset this guy is back in libya. well, they should have stopped it before then. >> they could have. >> where does it say how do we approach terrorism going forward? a terrible irony we have prisoners at guantanamo which i'm against not charged with anything. this guy has been convicted of murdering two 70 people and we send him home. >> al megrahi has prostate cancer and doctors say he only has three months to live. libya had accepted responsibilities and com say theed the victimss families. >>> federal drug agents searched a beverly hills pharmacy yesterday in connection with the investigation into michael jackson's death. the dea says the agents we

>> the u.s. and dips its toe again in somalia. it is not sending soldiers this time, it says, but military support and aid. three indians convicted of the 2003 mumbai tax get the death penalty. keeping watch on on -- on call sam -- uncle sam. coming up later for you, can jumping off rocks into the sea be safe? it sure it can, says the organizer of a new coastal pursuit. mourning the passing of sam the koala. hello to the u.s. secretary of state has publicly warned eritrea that the u.s. will take action against the country if it does not stop supporting militants in somalia. hillary clinton promises to expand help for somalia's week interim governments, threatened by al qaeda-linked terrorists. she met somalia's president today in kenya. >> a mark of respect for those killed during a terror attack 11 years ago in central nairobi. the american embassy was bombed, and the victims were mostly canyons. that attack was blamed on al qaeda. the american secretary of state believes threats of terrorism remain. >> it is an opportunity to ren

as we mentioned, the u.s. embassy is also in this area, but we have received no word whether the embassy was a target or whether this explosion happened very close to the embassy. that's something we're trying to get information. again, these are the first pictures we have been getting from the scene. all you can see is the smoke and the rescue crews in the area trying to figure out what happened, put out the flames, and find out the source of this explosion. afghanistan, as you know, u.s. military has been moving into many areas of afghanistan, trying to end the taliban stronghold on many areas, leading up to this election, this presidential election. also, many of the people running for president, there are more than 40 people running for president. many of them have been out campaigning despite the extreme, dangerous nature that permeates this country. we have with us now, atia abawi, one of our team members there at our offices there in kabul, afghanistan. atia, what can you tell us about what you're hearin