scenes says the bodies of women and children are inside. they say armed thugs and syrian tanks are randomly shooting and wrecking property. at least ten people were killed on thursday as security forces attempted to crush protests. >> two "news of the world" executives are disputing rue put murdock's testimony. they say murdoch misled the committee last week when he said he was not i ware that the hacking went beyond an e-mail. the steamy heat that's been roasting the midwest, u.s., is now heading to the east coast. some 60 temperature records were shattered on saturday. they blame the heat for at least two deaths. in minneapolis the marquis reads we have air conditioning. who cares what's playing. those are the headlines from cnn, the world's news leader. i'm monita rajpal. "world business today" starts right now. -- captions by vitac -- www.vitac.com good morning from cnn london, i'm nina dos santos. >> and from cnn hong kong, i'm manisha tank. these are the top stories on july 22nd. now the real test is what do investors have to say about it. deadlocked. debt talks may be little progress as a default deadline gets closer. and the uk phone-hacking scandal takes dramatic new twist as james murdoch is accused of misleading mps. before all that, a bailout and a default of sort. european leaders in brussels have reached a deal to give greece a second bailout. and as you can see, that's been pretty well received on the european stock markets. european policy makers hope the deal, which is worth almost a quarter of a trillion dollars will contain europe's debt crisis and give greece more breektding room. jim boulden explains. >> after more than seven hours of talks here in brussels, the leaders of the euro-zone, the imf and the european central bank have struck a deal that they say will calm the markets, will help greece, and will help the euro. first of all, they agreed to a second loan for greece, 109 billion euros. they'll also give greece more time to pay off its bills and at a lower interest rate. the first person to come out and announce this deal was president sarkozy. this is what he had to say about the new deal for greece. >> translator: i want you to understand, fully gauge the importance of this decision. it is a weighty, mighty decision. we're saying very clearly greece is a very specific case and what we are doing for greece, we will do for no one else, no other country. >> as part of this, there's more support for what's called the esfs. this is the facility they use to help countries that are in trouble and they say it will give new rules to this lending facility and they will also be helping this facility to be more flexible. the president of the european council explained that -- he says to the markets that with this new facility, they mean business. >> the financial stability facility will get more flexibility to intervene because through the assistance, recapitalization through banks and governments including in nonprogram countries and secondary market interventions in exception at circumstances on the basis of analysis by the central european bank. >> was greece at fault? that was asked of jean-claude trichet. this is what he had to say. >> what is important in our view is the condition that greece is an absolutely exceptional situation and that for that reason it requires exceptional and unique solutions. >> who will decide whether this is a game-changener the euro-zone as many of the leaders were saying, that will be the markets. we'll see how the markets react come friday. jim boulden, cnn, brussels. and we have indeed seen how those markets have reacted. they're broadly speaking as manisha was showing up two minutes ago speaking up. the bond markets reacting, yields coming down on that. some of the euro bonds being slightly less risky. i spoke with an analyst earlier today and he said for the moment some seem relieved by the decisions made in brussels. let's go to david jones. he joins us live from london. good to see you again, david. how relieved are you over what was said in brussels overnight? >> i think it's very fair. we've seen a good recovery yesterday ahead of the announcement, expecting good news and we have seen those gains held on today. we see for example here in london the ftse is a little bit higher, 0.7% a little higher. the euro built on gains overnight. italian bonds, but i do thinking the risk is that it's maybe just a short-term relief that we're seeing in the markets. we've had so many false stones for this year on the crisis, the last year and a half. let's see where we are in a week's time. today it is undeniable there's much more optimism around financial markets. >> you must have thought nerves of steel, david. >> i think it's incredibly volatile. if you look at what the euro is doing, first thing it was selling off very heavily against the u.s. dollar. it dropped a cent and a half on the dollar. then as expectations built, we saw we were going to get a good result in the evening we saw it rally about 3 cents. even though we've seen good gains over the last 24 hours or so, one thing we've learned is that sentiment can turn incredibly quickly. so i think the test will be going into next week, do we still see the same levels of confidence. i think some people, with what mr. sarkozy was saying last night, this is clear. this is just for greece. i think some people in the markets are worried this will come back to bite them at some point in the future. >> so effect live i what you're saying is the statement was supposed to be delaying fierce but it's not. some are still worried about italy and spain. >> that's definitely the phrase. a phrase has come out in the last six months, any various bailouts that were proposed, we're kicking the can down the street, pushing the problem further away, but the problem is still will. i think markets will need to see after digesting what's going on that actually this is a solution to the problem. i think the risk is i don't see how we can necessarily say that spain and italy are insulated from this and maybe we'll have to revisit them in a few months' time. >> and then again, the orders of magmy attitude, david, get bigger and bigger. that's about $155 billion. these are massive figures here. >> it's an absolutely enormous figure. we've become almost immune it to in the last year and a half as the enormous numbers get bandied around. we're talkinger the euro version of the imf which is a fantastically ambitious plan. their concern is because of the nature of the problem they're always maybe a couple of steps behind where the problem is. it can mushroom out of control month month into even bigger numbers. i don't think necessarily this is the end of the euro-zone problems and then it's back to business as usual. thing we may all have the discussion in call of months' time. >> david jones, as always, many thanks for your time there. manisha. >> that's the view. jim boulden also spoke to the new head of the international monetary fund christine lagarde who gives her take on the euro agreement. >> we have partners with the european mems, we, the imf, and we will continue do so on our terms and conditions with board approval, you know, with a view to making sure the countries and the program can come back to market and can, you know, restore growth and have a better sustainable debt. so it's a different role, yes. >> and you think this was a momentous occasion, was it or -- >> i think it was game-changing, yeah, yeah, yeah. >> very interesting, the new head of the imf. we'll have a full interview with christine lagarde lateener the show. nina. we've seen how it's affecting the stock markets. let's see how it's affecting the government bonds. some of these yields have come down, but that means investors are saying at least for the moment some of these bonds are a little bit less risky. this is actually a market that's worth no less than $80 trillion and as such it's twice the size of the world's security market and this is why we're going to take look at it. we're going to take a look at the ten-year bonds. two of the three that have been bailed out, greece has received another bailout as we heard from jim boulden. 15.4% for grease and 11.2% for portugal. if you take a look at italy and spain -- italy is another country that people are worried about. these yields, as you can see, are very, very different. this is where the cut-off point comes. it's the sort of magic number, if you like, that analysts and economists say is the cut-off point beyond which these countries will find it difficult to access the markets, the financing. it's 7.0% as you can see. i apologize for my bad handwriting here. 7.0%. it's one of the reasons why countries like greece, for instance, thood go to the imf and ecb for funding and needed bailouts. now, the other things that the markets have to look at is what's called the spread. this is the difference between the least risky euro-zone debt, which is obviously germany, a country which is the euro-zone's largest economy, plenty of cash in the bank. it's very unlikely this country would ever default on its debt and italy, which is next in the fire. as you can see, the spread is essentially the difference between these two. and as you can see, that stands at around 2.7%. that is why analysts and investors say they're worried about italy because the spread is widening and it means that investors will ask for more interest to hold ten-year italian bonds because they're perceived as being more risky. manisha. well, let's get some market reaction here in asia. the news out of europe really did boost investor confidence over here. you can see the numbers here. hang seng climbinging over 2%. it's moving up quite strongly. heavy weights like hsbc, up more than three-quarters of 1%. standard charter. about 3.5% this session. these are all big names to watch. a very big reaction. and now the headline is going to be what happens with the u.s. deadline. speaking of the united states, there was plenty of relief on wall street on thursday, again, because of the news of the european debt deal. that sent investors reaching for their wallets. at the close the dow is up 15250. the s&p was up one and a third per senn. let's take a look at how the markets are going and how things are set for when trading begins on friday. that's how the futures are looking. we're looking cautiously optimistic, i would say, nina. well, it's le than two weeks to go, nina, until the u.s. could default on its $14.3 trillion worth of debt. they met with president barack obama on thursday. cnn spoke with jong king about why some in the president's party are very angry. >> they held a meeting with the president here at the white house for nearly two hours. it's never terribly good that it went on that long. no one is speak publicly about it but i'm speaking with some democrats on the hill who are still very upset after that meeting. the bottom line is they approved these outlines of a possible framework of a deal and some democrats are concerned that, a, it's happening too late and, b, that it will jam democrats into agreeing on something that doesn't go far enough on the positions they care about and they'll ultimately be in a position to agree with the president and raise the debt ceiling or raise the debt default that's untenable in their view. >> let's dig into the details. what do we know about the framework that's being discussed as far as the democrats alike. >> based on reporting today, this broad outline, which, granted, has not been agreed to, would be a roughly $3 trillion deal that would have about $1 trillion in spending cuts, some of which would kick in immediately, some would be spread out over time and then there would bo a tax component, an entitlement component that would happen after the debt ceiling is raised. but other democrats -- and i should point out that the democrats that we're talking to who are upset are frustrate and concerned that the tax component might not have teeth or go far enough for them. but other democrats say, whoa, wait, no details have been agreed to. how can northbound be angry when we don't have a deal and no one knows specifics. jessica yellin speaking to cnn's john king. along with on six to the party the president is dealing with some republicans who are opposed to raising the debt ceiling at all. such a drastic move would require them to cut spending by almost half overnight. the storm around rue put murdock's corporation has just got even bigger and now some members of the parliament want to know if murdoch's son james mislead them during the hacking investigation. we're going to have more on that just ahead. 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to thousands of dollars. call this toll-free number now. ♪ sing polly wolly doodle all the day ♪ ♪ hah welcome back to cnn hong kong and london. this is "world business today" today. james murdoch is on the defensive again. he's taking the defensive that he was accused of lying on tuesday. two former top executives from the "news of the world" say that the younger murdoch misled the committee on an e-mail apparently showing that hacking was widespread of the tabloid. say that after murdoch saw the e-mail he authorized a huge payout to the hacking victim to keep them quiet. murdoch is standing by it. a statement from news corp says james murdoch stands by his testimony to the select committee. it seems that it may spread to the u.s. operations. nbc news is reporting that the u.s. justice department is investigating allegations that news corp has been hacking into the computers. the case ended when news corp bought the rival's assets for almost $13 million and now australia years regulators. news corp is a part owner of fox tell. they say the decision has nothing to do with the hacking scandal in brittain. >> and while we're on the subject of resignations. britain's prince andrew stepping down at the britain's special representative for international trade. he's been acting as official envoy for more than ten years and during that time he's been facing blistering criticism. he announced the news in his annual review. he said, quote, i have decided that the label i gave myself when i began this role as speshlg representative has served its purpose and is no longer necessary to the work i do. well, prince andrew has been accused of lacking the judgment needed for the job he's just given up. let's take a look at the latest travesties that have led up to his departure. in march he acknowledged it was a mistake to meet with jeffrey epstein, a convicted sex offender. he turned to epstein to help pay off the debts of the prince's former wife sarah ferguson. last year an article pub lived by wikileaks painted an unflattering picture. it verged on the rude during a 2008 meeting. and in november of 2008 british media reporting that andrew met with libyan media gadhafi after they were on holiday with a convicted gun smuggler. now he's known as the god of cricket, a shot at making cricketing history. this weekend we'll have all the details just ahead when "world business today" today continues. with your mortgage, worried about foreclosure. we can help you keep your house. all we ask for in return is that you submit to our plans for galactic domination. [laughing] [laughing hesitantly] [laughing evilly] sign. announcer: if you're facing foreclosure, talk to the right people. speak with hud-approved housing counselors free of charge at... you're watching "world business toda today"live on cnn. now severe storms across central europe caused problems for many travelers yesterday. let's check in with jennifer delgado for the latest conditions. unfortunate unfortunately, jen, every time i check in with you it's because of problematic weather. it's not nice. >> absolutely not. across poland it actually turned deadly. severe storms were going to pop up and they did. go to the video. i'm going to show you what's been happening there. look at this video here. heavy rainfall across the region. you see lightning popping up in the background, flooding across this area. here right here this video showing you a street that virt yoolly looks like a river. the rain came down in some locations roughly 35 centimeters of rainfall in a short period of time. emergency crews trying to drive through this because so many people were stranded because of the heavy rainfall. now, as i take you back over to the radar, we're once again dealing with rain across parts of europe. stronger storms moved through denmark as well as eastern areas, including parts of germany. we're going to continue to see the stormy condition because this aerial pressure is going to be sitting and spinning as we go through today, tomorrow. that means more heavy rainfall for poland. if you're going to be traveling through parts of eastern europe, expect delays. this will last today. then by saturday we'll start to see some improvement. the severe weather threat will go away but we're also going to be dealing with scattered showers across central europe. manisha, while it is going to be rainy as well as potentially more storms across europe, it's going to be hot once again across the u u.s. look at the numbers yesterday. look at this for iowa, 51 degree dee degrees celsius, 47 degrees celsius. typically you see something like this through parts of the middle east but it's been extremely hot through the u.s. and it's going to continue today. back over to you, manisha. >> anecdotally, jen, i heard people were going to the movies and watching any movie that was on so they could sit in an air conditioning place. >> absolutely. spend 20g just to get some free air. >> i don't know if it was clean air, but that's a whole different thing. at least it was air. >> expensive air these days. >> yeah. nina. >> plenty of cool air over here in lauchblt i can definitely tell