james are expected to testify as well. we'll have much more on that on "world business today" in just a moment. mubarak is reportedly suffering from many problems including irregular heartbeat and complications from cancer. he's supposed to go to trial on august for allegedly ordering police to kill protestier. human activist nelson mandela turns 93 today. ♪ happy birthday to you >> they're asking people to vote 67 minutes to help others in honor of nelson mandela's birthday. one minute for each year of his life. "world business today" starts right now. -- captions by vitac -- www.vitac.com hello, everyone, and a very warm welcome to you on "world business today." i'm anisha tank in honor congressing. >> as the crisis at news corp deepens, we'll look at rue put murdock's empire. the debt crisis continues on both sides of the atlantic. and protecting its pretty tors. the pacific island is determined to safeguard shark tourism. first up, though, investors are are finding more reasons to sell news corp's stock today. shareholder of the murdoch-controlled company fell sharply as the fallout continues from the phone-hacking scandal that has shut down the "news of the world" tabloid. the controversy has reached the highest levels of the london police force. this is the metropolitan commissioner. he resigned on sunday with his ties with neil wallace who was arrested last week. stevenson insists that he's done nothing wrong. >> as commissioner, i carry umt mat responsibility. with hindsight i wish we had -- i didn't and that's that. i do believe, though, that on its own, this would not be a matter that comes to my position as commissioner, however, the issue of my integrity is different. let me state clearly i and the people who know me know that my integrity is completely intact. i may wish we had done something differently but i will not lose any sleep over my personal integrity. >> well, in his resignation announcement, stephenson also drew attention. the editor of the guardian newspaper explains. >> there is an interesting paragraph in his statement where he seems to lob a hand grenade on number 10 downing street. he's trying to explain why he kept it secret. he was saying the prime minister was compromised by his relationship who has been arrested as opposed to his own relationship. so he's drawing a contrast between what he's doing. he's taking the honorable step, stepping down on the prime minister who isn't. >> the voice is that of the editor of the guardian which wrote the story on the news of world hacking phone-hacking -- the hacking of missing school girl. nina. >> of course, you will remember the first high-profile player who's out of a job as a result of the scandal that led to "news of the world." re re rebeen rebecca brooks. she has since been released on jail. >> reporter: in the koesy world of politics rebecca brooks was at the very center. she wined and dined the very powerful on behalf of her boss, rue put murdock. now arrested by british police, investigating allegations of phone-hacking and police payments by murdoch newspapers. just how did rebecca brooks get to this point? brooks first came to news international as a secretary of "news of the world." she quickly developed her reputation of tenacity as a reporting jurntist. described as both ruthless and charms she was soon the young evidence editor of "news of the world" and shortly after that, "the sun." she spearheaded a controversial campaign to, quote, name and shame alleged pedophile, push living their names and addresses in the newspaper. as the editor of "the sun," brooks testified to parliament they had paid police officers for information and it was under her editor "showbiz flashpoint" that "news of the world" privately paid an investigationer to hack into the phone messages of milly dowler, the 13-year-old who was murdered in britain. those allegations did not come to light until almost a decade later after brooks had scaled the corporate ladder to become chief exec tish of news international, a position she resigned last week. brooks has denied having any knowledge of any phone hacking by her staff. it was brooks who cemented a relationship with prime minister david cameron, inviting him to lunches at her country home with the head of news corporation, rue put murdock's son, james. there have been several arrests in the phone-hacking scandal so far but rebecca brooks is the highest profiled yet and the one closest to rue put murdock himself. atika shubert, cnn, london. >> as you can imagine, all of this has pummeled news corp's stock. as for news corp's nasdaq shares, the news of their value has wiped more than $6 billion since the scandal broke on july 4th. that's a drop since july 5th, the first day u.s. investors returned from a long u.s. holiday. that have yet another thing to worry about. inquiries are being made into rue put murdock's newspaper publishing operation in britain. just a reminder, cnn will have live coverage of rue put murdock's testimony. that's going to be on tuesday. his son, james murdock, is also expected to appear and to answer questions. right now it's not clear whether brooks will still testified now that she's been arrested and bailed by police. it all starts at 2:30 in london and that's 9:30 p.m. right here in hong kong. nina. >> that coincides with our later edition of "world business today." so, of course, we'll bring you up to date. let's go to the market. high debt still remains a serious cause for concern on both sides of the atlantic and added to the uncertainty are the stress tests applied to some of europe's biggest banks. this is the way it's shaping up at the moment. it may be a question of playing it safe. the european stock markets, they're actually down on the first trading day of the week. this is where we stand as you can see. a number of those markets down in excess of 1%. if we look at shares of royal philips in the nectar land, they're moving smartly. up 1.73%. they reported more cutbacks. philips plans to cut more than $700 million in cuts after reporting its biggest loss in nearly a decade. it expects no improvement in its performance. the stock company trading at 17 euros and 67. mow nisha. >> you know what, nina? asian stocks have opened the new trading week lower. i think that would hardly be a surprise given all the news we've been waking up to. they continue to worry the people who have to work and in some cases play these markets. ramy imocencio has more. >> the tokyo stock exchange, that was closed for a public holiday, but here in hong kong, the hang seng close dound about a one percent. an 8% slide in smic, china's largest chip maker. shares had been halted in late june. that's after the ceo resigned when he was voted off the board. over across the board in mainland china, they fell about 10%. vanke dropped nearly 1% after beijing said they'll try to slow down property price rises. a new real estate study shows beijing and hong kong prices rose. heading down under to australia, the asx 200 was pretty much flat as you can see. but news corp fell. that's as the phone-hacking scandal continues to unfold. i want to take you to taiwan. the taiex closed down about 0.42%. htc infringed on two patents belonging to apple. they say it will appeal but they also say it will buy back as much as 2.4% of its own stock. regional markets seem to be sinking. gold going the other way today, hitting a record-high. what's the deal with that? >> earlier today gold hit a new intraday high of $1,599.29. that's almost $1,600. you know, this trend really is not new. since the start of the year, every time there's been a crisis of confidence, the price of gold has gone higher and higher as investors have fled to the safe haven. late january when the rest of the arab world raised fears. gold then jumped almost 8% the following month. then you head over to march 11th, of course, the japan quake was a shock to the tsunami markets. now we're basically seeing the same thing. over the past few weeks on u.s. and euro debt fears, we've seen the price of gold rise about 7.4%. you know, it's just been three months since we've seen the price of gold go from $1,500 to almost hitting $1,600. you see it hitting past that mark, very, very soon if the debt problems aren't resolved very quickly. >> ramy, the man with the finger on the pulse. tharmg you very much. here's nina. hopefully you can tell us what we can expect in the u.s. >> that's right, monita. it seems the trend is in the opposite direction of gold. they're poised for a lower open. take a look. we've got the s&p 500 trading down the most, nearly down the most. actually it's the nasdaq composite that's down a tenth of a percent more than that. those two markets down between 0.7% and 0.8% at noemt. mow nisha. >> you're watching "world business today." we're going to find out how they want their representatives to end the deadlock in washington. with your mortgage, want to avoid foreclosure. candy? um-- well, you know, you're in luck. we're experts in this sort of thing, mortgage rigamarole, whatnot. why don't we get a contract? who wants a contract? [honks horn] [circus music plays] here you go, pete. thanks, betty. betty: we're out of toner. announcer: if you're facing foreclosure, talk to the right people. speak with hud-approved housing counselors free of charge at... live from cnn hong kong and laurngs this is "world business today." welcome back. >> the second bailout to greece remains stauld at the meet. the head of the european central bank, this man, may find himself at odds with the german chancellor angela merkel about how to keep greek banks in business. in an interview at the "financial times," he's saying they would not accept defaulted bonds as collateral and instead he says, quote, the government would have to step in themselves and make it right. in the meantime angela merkel herself says they should maintain some of the responsibilities. the euro has been weakening quite a bit against the major currencies. this is where it stands at the moment. 1.4034. and 1.6092 and japan has been trading at 78.96. over the weekend they've renewed their sense urgency. they say their debts are sustainable but, quote, on a knife's edge. a share of support came from hillary clinton. she met on sunday with greece's minister of foreign affairs in athens and she said the u.s. supports greece's austerity measures. clinton added these tough steps will lead to a better economic future. meanwhile, of course, in the united states there is some disagreement of a different sort. republicans and democrats remain at odds over raising the u.s. borrowing limit by august 2nd. that is the date when america could default unless it's able to borrow more money. so behind the scenes, leaders of both political parties may be close to a scaled back agreement that would allow the president to raise the debt ceiling without republicans voting in favor of it. but for now republicans are publicly taking a hard line against any tax increases and government spending. >> i'm looking for a win/win. i'm looking for a way to win the debt ceiling, and we need to, but we need to focus on what got us into debt. cut, cap, and balance gets us out of debt over a long period of time and ittet will have a budget amendment requirement to stay out of debt. i think that's going to be the republican position. >> for his part, the president is still pushing and hoping for a grand bargain. >> there are substantial discussions going on in the senate between the two leaders to make sure that at a minimum congress has a way to take action and avoid default on the u.s. debt. it's critical. we don't think it's enough. we thing that the president said clearly we should do as much as we can to reduce the deficit burke we have to avoid the kind of chaos that would result from default. >> if washington can no longer pay its bills, interest rates would shoot up and the value of the dollar would plummet. and already it's been discovered that many americans, it seems, are fuehrer russ. >> i am absolutely, unequivocally without a doubt angry. >> reporter: tempers are raising along with the heat. in atlanta, washington, new york, and louisia.a., the overwg sentiment is pretty much the same. >> i feel enraged cynicism. >> primarily it's like watching kindergarten. kids running around, who's going to be the biggest, who's going to show off. >> if we were to fail to raise the debt limit -- >> reporter: a new poll shows the majority of americans support this in the battle. 67% wants to increase it but the republican ares refuse to consider tax increases. >> i don't know whether it's talk radio or all these, you know, sort of liberal or conservative talk shows just getting everybody fired up, but i think we used to be able to work together better if you just go back ten, 20 years. now it's got to the point we can't get pretty simple things figured out. >> reporter: in new york many agree there will be an agreement. >> they will. this isn't a game of chicken. they have to. >> they have to. there's going to be a catastrophe if they don't. big business is scared. if there's a default, they're going to lose a whole lot. >> reporter: americans don't like hearing about politicians losing their tempers during negotiations. >> i understand it's difficult. my job is very difficult. i don't have the option of walking out of a meeting. that would be considered completely inappropriate. >> reporter: many americans believe the debt ceiling needs to be raised but not everybody. >> if i have a credit card with a certain limit and i'm overspending, the answer is not to increase my spending limit. >> is this going to put a greater burden on us as the american people and i just don't think it will help the situation. >> reporter: but there are eternal optimists. >> no matter what they do, we'll survive. >> reporter: a hopeful note as we head into the home stretch on the debt crisis. fe lee shah taylor, cnn, new york. >> let's go over to south africa, where david cameron, the prime minister of united kingdom will be speaking a bit later on alongside the south african president jacob zu ba. that is the conference area where they're going to be taking center stage. of course, we'll bring you anything he has to say when he starts speaking throughout the course of the next half hour. manisha. now, back to the americas and hugo chavez's return to cuba for more cancer treatment. the president's health is of concern not only to his own country but to cuba as well. we'll take a closer look at that straight ahead. to your kids' w. new neutrogena® wet skin kids. ordinary sunblock drips and whitens. neutrogena® wet skin cuts through water. forms a broad spectrum barrier for full strength sun protection. wet skin. neutrogena®. hello. welcome back. this is "world business today." it's in thanes of its vice president and finance minister. at least that's the case for now. while the ailing president hugo chavez is in cuba. he arrived over the weekend for therapy on an undescribed cancer. >> reporter: a hearty greeting from hugo chavez and a frail fidel castro. a familiar picture for cubans, but this time it's chavez who's recovering from surgery. while visiting in june he had a cancerous tumor removed. now he says he's returning to the island for chemotherapy. just as cubans were getting used to life without their historic leader at the helm, they're being forced to come ten plate a future without cuba's benefactor hugo chavez. >> venezuela provides about a third of cuba's oil, and so there's no doubt that cuba would have a real hard time if the venezuelan oil were to suddenly stop flowing. >> reporter: venezuela pulled cuba out of a crisis following the collapse of the soviet union. a time of widespread food and energy shortages. cuba now receives about $3.5 billion a year in subsidies from its regional allies, most of it in the form of cheap oil. analysts say the island would o suffer blackouts and belt tightening if chavez disappeared from the scene but not like the 1990s. still cubans are worried. the health of chavez will always be a concern, says this man. not just for human reasons or because of his relations with our leader. in its favor cuba has diversified the communism. tourism provide foreign currency. it has a long list of trading partners from china to the united states thanks to a loophole on the u.s. embargo that permits sale of food. finally, kbu has boosted domestic oil production. now it's hoping for a big discovery offshore. drilling in the gulf of mexico is expected to begin within months, but even if they do strike gold, it could take years to exploit, making cuba dependent on chavez's health for a while longer. shasta darlington, cnn, havana. and natural minerals. give you sheer coverage instantly, then go on to even skin tone in four weeks. aveeno tinted moisturizers. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. announcer: when life's this hard, it's no wonder 7,000 students drop out every school day. visit boostup.org and help kids in your community stay in school. from cnn hong kong, i'm manisha tank. >> and i'm nina dos santos. >> debt continues to fuel uncertainty tunsrn uncertainty in the united states and also europe. the results of the banks' stress tests aren't giving investors much incentive. we're starting off on a bit of a shaky footing this week when it comes to the trading. let's have a look at what's going on in europe. we're about 19 minutes into the trading day. as you can see, all of the markets in the red, about three of them down. the most coming down 1.25%. let's focus in on some companies. looking at shares of royal philips electronics because this company reported its figures. it also reported news of more cutbacks for that company. philips plans to slash an additional $700 million worth of costs after reporting its biggest loss in nearly a decade. the company expects no improvement in its performance in the meantime. despite the news of the cost-cutting, it seems, what is interesting to investors because all we've got is the stock up one and three quarters. manisha? >> over here we've had a muted reaction but debt fears in both the u.s. and europe very much playing on the minds of traders. probably a good rea