she searched his bed roof after mistake. she said she found a saline bag in the room with a propofol bottle inside. prince harry or captain harry wales as he's known in the british military is bound for the united states. he'll soon begin helicopter gun ship training at bases in california and arizona. those are the headlines from cnn the world's news leader. i'm monita rajpal, "world business today" starts right now. good morning from cnn london. i'm nina dos santos. >> and good afternoon from cnn hong kong, i'm andrew stephens. welcome to "world business today." the top stories this friday, october 7th. european stock markets face further turmoil as moody's down grades the credit rating of 12 british banks. >> and could eu measures to change carbon taxes spark a new trade war? >> a luxury brand is forced to slum it as commercial rents skyrocket here in hong kong. first though to the stock markets, european banking stocks have been falling in the last hour or so that the markets have been trading. this comes after moody's decided to downgrade 12 british banks. the giant lenders like rbs, lloyds tsb are among some of the companies downgraded just a short time ago. moody's cut iterate tinges on rbs by two notches, and lloyds by one notch. the cooperative bank nationwide also saw their ratings lowered as well as seven smaller institutions across the country. this comes just less than 24 hours after the european commission president joe sell morrell barroso. let's take a look at how the major european stock markets are fairing. yesterday's positive sentiment didn't last long. we've seen the stock markets have fought their way back into positive territory. some of the banks perhaps mitigating the effects of some of the resource sector stocks rising on these indices as well. muted gains at the likes of the footsie 100. similar situation across the your pi european continue meant as well. we have it live from the trading floor. first up, talk about these 12 down grades here. this move is a surprise. it also comes after yesterday's announcement of quantitative easing that was another surprise as well. how are the markets digesting these two moves? >> if you look at the stock price reaction it indicates moody's may have been painting a little catchup in terms of what the market was telling me. you're looking at lloyds down a couple percent, bark clay's down 1.4%. so not really big moves in the stock market. so indicating that really i think a lot of this had been expected. george osborne, the chancellor here in the uk was quoted in an interview only about half an hour ago saying it's all due to the vickers report where the plans are to split investment banking away from more traditional forms of banking. if you're going to allow an investment banking arm to go bust, that does withdraw a little support from these government banks. i think it is interesting what they're doing, but i don't think this is the bigger picture, to be honest. the bigger picture is european banks need an awful lot more capital in order for them to cope with the huge losses on greek debt, possibly portuguese debt and possibly irish debt. >> we're not really hearing what we need to hear, are we, from the eurozone ministers and other leaders across the eurozone heeding the warnings from bar rosso. we're not hearing anything, are we? >> no, the imf has been telling us we need hundreds of billions of euros put into european banks. we've been hearing that for not quite six months, but quite some time. it's good that merkel and sarkozy are getting around to talking about it. the amount of money that needs to be put in, they should have started discussing it a long time ago. it's going to be quite difficult to sell to the electorates and quite difficult to come up with. yes, good news we're talking about it. we're a very good long way away from having money put into banks. a good thing, but don't get carried away as yet. >> louise, one thing people are concerned about, we're in a situation where entire governments are in trouble because they bailed out their banks back in 2008. can we afford to bail out more banks now and for governments to take more debt onto their balance sheets? probably not. >> the governments aren't in trouble because they bailed out the banking street. that's not the reason governments are in trouble. governments are in trouble because they enjoyed the credit boom and issued far too much debt. if you look at greece, it's got 300 billion euro of too much debt. they haven't spent anything like that on their banking sis industry. in the uk, we spent, what, 70 billion in the banking industry? truly the eurozone situation isn't due to bailing out the banks, it's due to spending too much in the good times and not putting money away for the bad. all european governments, in fact america as well, did that and believe the credit boom was actually a new paradigm. clearly it wasn't. it was a massive credit bubble that many people didn't anticipate. >> in a yes or no answer, can we afford to bail out the banks? >> i don't think we have a lot of choice. >> louise cooper from bcg partners. many thanks for that. nina, you find a dollar for every time i heard new paradigm, i would be a wealthy man in all the years i've covered the markets. what louise is saying there, that line about not getting carried away with rescuing the banks, i think that's key. and even so there's still a rally here in asia going on into its second day. this is a relief rally. you're seeing equities back in favor as people move back into what they perceive as ris ngier assets. that was how asia ended up this day. you can see the big markets there with the exception of shanghai which is still closed, all making strong gains today, second day of gains. hong kong up by 6% yesterday, up by another 3% today. the key does remain whether this euro news can carry through, whether we do have the beginnings of a substantial plan to bail out europe, get greece back on its feet, there's relief going only at the moment. how long lived this is, wait to see. the nikkei up, the bank of japan, up. their regular meeting said everything will stay exactly the same. one stock that's been moving today is samsung electronics, the company releasing its sales forecast for this third quarter of 2011 on friday. it says revenues should drop, but a 12% rise in profits from the previous quarter is coming thanks to solid sales of mobile phone hand sets. samsung's stock closed ability half a one percent higher. nina? >> andrew, we saw another show of confidence on wall street for thursday's session. u.s. stock markets rose for a third day in a row, largely than tox the european central bank's unexpected move to boost liquidity into the continue meant's banks. the major markets closed about 2% higher. financial stocks leading the gains thanks to better-than-expected figures particularly when it konls to u.s. jobless claims, another reason to buy yesterday in the u.s. >> of course, it is the big jobless number, the monthly jobless number out in the u.s. later this day which is going to be very closely watched. that's what the u.s. futures look like at the moment. virtually unchanged. not surprising, jobs always such a big number at the moment, the latest expected number is job creation of around about 55,000 for the month of september. you'll remember last week there was a shock when the job creation number came in absolutely flat, sooerp row. unemployment meanwhile likely to stay at just above 9% in september. so nina, still a long way to go by the looks of it in getting the jobs situation back under control in the u.s. >> absolutely. the unemployment rate remains about 9.1%. still it is higher here in the eurozo eurozone. you're watching "world business today." travel tax. why many people will be forced to pay for their carbon footprint. it could come at a heftdity price. the full details next on cnn. with b vitamins, the first and only one to help support a healthy metabolism. three smart new ways to sweeten. same great taste. new splenda® essentials™. people have all kinds of retirement questions. no problem. td ameritrade has all kinds of answers. call us for quick help opening your new ira. or an in-depth talk with a retirement expert. like me. stop by my branch for a free retirement check-up. retirement hows and how-muches? 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try smart balance fat free milk. it's what you'd expect from the folks at smart balance. let's take a look at how the price of commodities are fairing, in particular gold. it has been staging something of a rebound, finally rising once again. muted gains, $5.75 on the troy ounce trading up $1,657. the price of oil is relatively unchanged at the moment. of course, there's a lot of concerns about the economic picture for the world's largest economies, that could curtail the demand for oil. it's trading down about 13 cents on the barrel at $82.46 for the nymex crude. welcome back from cnn london in hong kong. this is "world business today." airlines say they eel continue to fight new legislation that will force them to pay a carbon tax on flights to and from the european union. china says this policy will cost its aviation industry $125 million a year. the policy has created a big dilemma for a business that says it is committed to fighting climate change. aviation is one of the most competitive industries in business, but in hong kong, a show of solidarity against a common enemy, a new european law that comes into force next year. >> i think the global airline industry is united against the eu ets. it's the wrong approach. >> from the beginning of next year and europe's new emissions trading scheme, any airline that lands or takes off in europe will be charged for its carbon emissions. those emissions will be calculated not just over european aerospace, but from wherever the plane starts or ends its germany. if you're starting in hong kong or london, you'll pay for you're missions all the way, not just in european aerospace. lit be exactly the same for the return flight. that the airlines say is unlawful. they say the eu is intruding on other country's sovereignty. it's not the cost which will add only a cost of $20 on a return ticket. the problem says the group that represents more than 90% of the world's airlines, is it's not a global solution. we don't have a problem with emission trading schemes, but by doing it this way as a regional thing which has territorial application, the europeans are actually driving a wedge between countries who should be working together to put a global scheme in place. that's what we're advocating. >> europe apparently has little appetite for change. >> i think there are lots of misunderstandings out there how the new ets functions, probably also because this is a new thing to many of the airline operators, and we are ready to explain and clarify these misunderstand dings. >> this dispute looks anything but a simple misunderstanding. what of the persistent phrases at the greener skies gathering in hong kong recently was trade wars. >> if the eu persists in going forward with the trading obligation that begins on 1 january, other countries will retaliate. it's just a matter of time. >> the u.s. congress is now considering a bill that would ban u.s. carriers from complying with the eu legislation. china says it will take action against europe, although it's not clear yet what form that will take. but any sort of new trade dispute can only damage the airline industry and only be another head wind for a global economy already struggling to find common ground on how to kick start growth. air gravel is also one of the fastest growing sources of greenhouse gases. this year about 650 million tons of the gas carbon dioxide will be spewed out into the atmosphere, that's about 2% of all man-made carbon emissions. but the industry says it will cut emissions by more than half to 320 million tons a year by 2050. nina? andrew, when it comes to shopping, we all know high-end brands mean high-end prices, usually high-end surroundings as well. one luxury hong kong brand is turning that idea on its head in relocating instead to a set of tents. improve the health of your skin with aveeno daily moisturizing lotion. the natural oatmeal formula improves skin's health in one day, with significant improvement in 2 weeks. i found a moisturizer for life. [ female announcer ] only from aveeno. let's take a look at how the currency markets are fairing, news of $86 billion in quantitative easing yesterday from the bank of england. that means the pound is trading at 1.5542 against the u.s. dollar today. we also have news of potentially more liquidity pumped into the european banking system. interest rates on whole across the eurozone and great britain, the euro trading at 134.45 japanese yen at 76.63. you're watching "world business today" today live on cnn. he's a president with big plans for employment, but having declared a state of emergency in the u.s. economy, barack obama needs backers. in august a grand total of zero new jobs were created. september figures released in a few hours from now and forecasts are now not spectacular as dan lothian reports, desperate times may call for desperate measure. >> reporter: it wasn't a full-throated endorsement on the tax on millionaires to pay for his jobs bill, but it was as close as president obama got. the president used a big part of his roughly one-hour press conference to lean on congress to pass the jobs bill, single out republicans for often saying no to his proposals. >> the question is will congress do something? if congress does something, then i can't run against a do-nothing congress. if congress does nothing, then it's not matter of me running against them, i think the american people will run them out of town. >> reporter: with an economy going in reverse after showing signs of moving forward, the president named europe, a tsunami, high gas prices and the debt ceiling fight for the dark outlook. >> there's no doubt that the economy is weaker now. >> reporter: he says ideas the republican are backing won't produce the immediate jolt. >> go ask the republicans what their jobs plan is, if they're opposed to the american jobs act and have it scored, have it assessed by the same independent economists that have assessed our jobs plan. >> reporter: later while honoring the ncaa women's basketball championships in the rose garden, he joked that the practice of throwing candy to fans might sweet ten the deal. >> i'm going to try that. >> reporter: the president says all this boils down to simple math. if action isn't taken now, there could be some serious consequences, that the nation could end up with more significant problems than we're currently experiencing. dan lothian, cnn, the white house. another couple stories we're following here in europe starting with this one. the bank of england's governor, mervyn king who you can see on the right says the uk could be facing its worst ever economic clis sis, even eclipsing the great depression of the 1930s. hits warning came yesterday as that bank decided to pump billions into the economy the in a second round of quaunt theyity easing. take a look at this, look no further than the cost of the country's most expensive street. granted this particular property is up for sale at a cool $15 million euros, about $20 million. six years ago this six-bedroom edwardian house sold for a total of $78 million. i guess perhaps andrew that makes it a bit of a bargain now. i must say we still have some 60 million pound, pairly $80 million houses here in the united kingdom as well, especially in london. they seem to be flying off the shelves like hotcakes. then again, the economic outlook is sourg. >> as you were saying, russian mon any going into london, not so much into ireland. interesting that a lot of people will end up making a lot of money out of this downturn and buying those places like that and will eventually rebound. that's the low price. let's look at the other side of the coin here. here in hong kong there has been stories that the property market, at least the residential property market is slowing down a bit, but certainly it's not the same story in the commercial market. the south china morning post, the newspaper here, is reporting the luxury clothing brand with a particular link to hong kong is being forced out of its prime location in the heart of the city to a set of tents on the nearby ferry pier. they're moving from central hong kong to a bunch of tents. i'm talking about shanghai tang. rent reportedly doubled to nearly $1 million u.s. dollars a month. no price for royalty. they had been at this place for 17 years. the landlord decided they're going to open its space to the top bidder and abercrombie and fitch swooped in and put in a bid double what shanghai tang had been spending, and that's what happens in a nice economy like hong kong. the company actual started in hong kong by david tang, a local brand, even though it's owned by richmond. money does make the world go around. >> they do have a store here in one of the most expensive streets in london. then again, you've got to wonder whether london perhaps isn't raising its rents as much because we're all concerned about the economic outlook. i can say on my way back from the office towards my house, i passed one of the most expensive streets in london every day. there are starting to become vacancies on that street as well. different on this side of the planet, and