he's also ordering lawmakers not to try to undue budget cuts that come as a result of the committee's failure. western powers are stepping up sanctions against iran after fears the country may be working on a nuclear weapons program. canada is banning all financial transactions. britain has ordered all financial institutions to stop doing business with iranian banks. the moderate father of a murdered british teen testified monday. they testified of phone hacking by the news of the world gave false hope she was alive. outrage over the scandal forced the closure of the tabloid in july. those are the headlines from cnn. "world business today" starts now. it's 9:00 a.m. here in london. i'm nina dos santos. >> and it's 5:00 p.m. in hong kong. i'm andrew stevens. you're watching "world business today". these are our top stories today tuesday, november 22nd. no deal on debt reduction. the super committee proves it's anything but. tear gases and tensions in south korea. a free trade agreement is finally approved. and at a time with the global economy could do something, we visit a workplace with plenty of bounce. first up though, so much for super to the surprise of few. the 12 politicians tasked with striking a deal on the debt reduction has come up short. a super committee may have been bipartisan, but members couldn't sort out the politics. as a result, automatic budget cuts will be triggered, shaving $1.2 trillion off federal spending off the next ten years. details in a moment. but first, here's the reaction of the u.s. president, barack obama. >> there's still too many republicans in congress who have refused to listen to the voices of reason and compromise coming from outside of washington. they continue to insist on protecting $100 million worth of tax cuts for the wealthiest 2% of americans. even if it means reducing the deficit with deep cuts. even if it means deep cuts in medicare. so at this point at least, they will not budge from that negotiating position. so far, that refusal continues to be the stumbling block that has presented congress from reaching that agreement to reduce the deficit. >> that tone of resentment, they offered a tone of resignation. in a statement they said, after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee's deadline. andrew. they may have waited until after that closing bell to announce the death of the deficit deal, but wall street had already heard the funeral bell. stocks sank due to that ongoing uncertainty. add to that warning from china that the world is facing a chronic recession for certain. now the dow was down more than 2% at the close. the s&p and naz weren't much better either. just shy of that figure. futures currently pointing to a slightly higher open. lots can change in the next five hours. it's interesting. nobody really expected the deal to be done. what it does mean though is another year of uncertainty about spending cuts and taxes. we don't know where the u.s. economy goes from here. >> yeah. in a few moments, we'll be looking at whether life can fall because of this inpass. if you take a look at stock markets in europe, we're seeing for the first time indicating some rises. this is a market that lost about seven days in a row. as you can see, that went up by .74%. as you can see, these markets ended down about 2%. we'll have to go further in today's session before they manage to recoup some of the losses we have seen in the last few days. the so-called super committee's failure to reach a deal may not have shocked people, but it hasn't impressed people either. that's the worst form since august. it was down 1%. but it got into positive territory. hong kong banks suffering once again. not helped by a warning on france's aaa credit rating as borrowing costs continue to rise. in japan, exporters making up for lost ground. they were down yesterday making a bit of that today. not enough to avoid a new low for the year. the nikkei down by a fraction by about -- at the numbers at 83. that weighed on stocks in the australia market. the s&p down .72%. nina. while asia's markets take a hit, the blame game is in full force in washington after the super committee's inaction. republicans say democrats were unwilling to consider overhauling key entitlement programs without tax increases. democrats on their part say they doomed negotiations from the start by refusing to raise taxes for the wealthiest of americans. >> there's one big, big hurdle to get over. the republicans have been insisting that we make permanent and extend the tax cut to the wealthiest americans. we cannot, in good conscious, extend the bush tax cuts at the higher end when we're at a 60-year low in terms of the revenue coming into the government. >> our democratic friends say we won't cut one dollar more without raising taxes. that tells you a lot about washington. we went into this exercise in order to try to reduce federal government spending. when we get from the other side, we're not going to make anymore cuts unless you raise taxes. >> the question is, what happens next to reign in the ballooning $15 trillion worth of debt? the short answer is not too much. battle lines are forming here. the backup triggered to the super committee's inaction won't kick off until january 2013 after the presidential election. au automatic budget cuts will slash $1.2 trillion worth of spending. that's 2.6% of the u.s.'s total budget. $600 billion will be coming from the likes of cuts to defense spending. some coming from education and welfare and transportation. some budgets would be exempt from these cuts though such as social security and also medicaid. you heard barack obama talking about the fall. both democrats and republicans talking about modifying where the particular cuts will be coming from. all of this is just setting the scene for potential veto battle with the u.s. president, barack obama, later down the road. >> certainly see inging a lot o fighting and partisan squabbling going on in washington. but it's got nothing on what's been going on in south korea. look at the pictures from the south korean parliament. if you're wondering what they are doing there, they are waving away fumes after an opposition legislator exploded a tear gas canister inside the chamber there. he was protesting a free trade agreement with the u.s. he was wrestled to the ground and taken out of the chamber after that stunt of his. the trade deal being approved by an overwhelming majority. 151 in favor and just 7 against. many in south korea feel the benefits are one-sided. especially for those who run small businesses. we take a look at what they stand to lose with this agreement. >> reporter: this is a business he inherited from his father. and now runs with his wife. on his typical of the small farmer in south korea that fears the impending u.s.-korea free trade agreement will put him out of business. these pears are destined for the united states. they have to be grown and transported in these bags according to u.s. specifications. but only 2% of the national harvest makes it to the united states. it is a very difficult market for korean farm irs to break into. not so the other way, he fears. >> translator: i'm worried about the orange bomb. there's a 40% tar i have. i'm worried it will take over the need for apples and pears. >> reporter: the crucial different in farming is expensive small scale in korea versus cheaper mass production in the u.s. not surprising when you consider korea only has $4.2 million acres. the u.s. has 400 million acres. farmers have been protesting for years. this summer, they even managed to close off one of the main roads in seoul. the government will invest $20 billion over the next ten years to help soften the blow of the fda for korean farmers. in compensation and investment to boost competitiveness. but no one has been in contact with him. >> translator: there is no direct investment come iing to the farmers, to help us. the money they are talking about is to help people learn a new skill so they can change their profession. >> reporter: many already phased out over ten years. after that, he and his wife are convinced their family orchard will be out of business. paula hancock, cnn, south korea. >> still ahead on "world business today," high demand, high prices and high expectations. china's market has been a foundation of its emergence on the world stage. could it come tumbling down? 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what's vanishing deductible all about ? guys, it's demonstration time. let's blow carl's mind. okay, let's say i'm your insurance deductible. every year you don't have an accident, $100 vanishes. the next year, another $100. where am i going, carl ? the next year... that was weird. but awesome ! ♪ nationwide is on your side at one of the ferries servicing the outlying islands around hong kong making its way into. the center of the city. it's just gone 20 minutes past 5:00 in the afternoon here. welcome back. you're watching "world business today" live on cnn. blanketed fog destructed flights in europe on monday. here in london, the airport was forced to cancel dozens of flights. now things should be running smoothly and back to normal. let's see how conditions are fairing right now. jennifer joins us live from the cnn world weather center. >> good morning. i know you've been dealing with foggy conditions in england and amsterdam. as i show you now, we're still looking at some problems out there. but these images are coming to you from yesterday. we had some cancellations after the fog. that was out of amsterdam. here's another one as well. so conditions are improving, but the problem is, we're still seeing some fog out there. look at amsterdam. visibility about a third of a kilometer. that's not very good. we'll see improvement as we go later into the morning. we'll get the mixing in the lower atmosphere. the problem is we're still seeing some reports of visibility issues coming out of eastern and south erin parts of england. 2.4 kilometers out of london. the problem is, you get this marine layer out there. this is what happens this time of year. autumn and early winter, you see fog popping up. we'll continue to see the problems through the next couple weeks ahead. things don't look so bad on the satellite. the area i'm watching is down towards the northwestern part of the caribbean. for areas including spain, this system is going to be moving pretty slowly. expect delays through tuesday as well as wednesday. through areas including parts of italy and east of the a dree yatic sea. temperatures cool over towards the east. you can see 3 for a high in kiev. other areas, we're talking about temperatures in the single digits as well. meanwhile out of the east, we have a hurricane. that hurricane is actually unusual for this time of year. we have only seen three others since 1949 to form this late. i leave you with video out of the u.s. state of california. this video showing you a part of the highway actually collapsing. you can see some of the coastal region and the roadway now in the ocean. this all started back in june. of course, the problem is this really can't be repaired. they will have to come up with a new route and build a new replacement for this busy stretch of the road. we're going to send it back to nina. but california doesn't have any money to be making any new roadways. >> that's an impressive picture. we're all amazed here. jennifer, thank you for that update. one of asia's most luxurious hotel chains has banned a popular and expensive dish from its menus. shark's fin soup. the owner of the peninsula hotel group says the dish will no longer be available beginning on january 1st in recognition of the threat facing the global shark population. shark's fin is seen as a delicacy in asia, especially here in hong kong. the demand is putting pressure on the species. 73 million sharks are killed for their fins every year. and around half of those fins pass through hong kong. just to give you an idea. one kilogram of shark's fin can cost up to $1,200 u.s. dollars. so far, the peninsula is the only hotel to adopt a full ban on the the dish. but it's a big move because the peninsula is seen as the top of the top hotel here in hong kong. one of the big businesses in hotels is weddings and shark's fin is seen as a staple for the menu. so that's quite a big move for the peninsula to ban it. it will be interesting to see if the other hotels follow suit. certainly, the pressure is growing. >> it's quite a lucrative dish to be serving. you wonder if people have already booked their banquet, if going forward, they are going to be able to get their hands on that delicacy. as the super employee fails to reach a deal, what what's next? from cnn lon don london, i'm nina dos santos. >> and i'm andrew stevens. welcome to "world business today." >> we're 19 minutes into the trading day. things aren't looking too bad. we're covering some of the lost ground we have seen over the last few trading sessions. some of the losses were pronounced. some of the markets already shedding gains. particularly, the last time we looked we were up. also some weakness entering the noneuros here. we're talking about the smi. britain, its markets recovering a bit. but andrew, we have plenty of way to go to make up for losses seen of late. >> absolutely. some of the markets, like the u.s., down six-week lows. the nikkei down more than a two-year low. a lot of ground to recover. hardly surprising though given what's been going on in europe and the u.s. interesting though. one quote i saw today was that at these sort of levels, the markets are pricing in pretty much a global recession. here in asia, the hang seng took its time to get into positive territory. it started off by going down 1%. crawled up towards the end of the day. helped, in part, by positive numbers coming out of the euro. if that's coming back, hong kong may be retracing steps by tomorrow. the s&p down the furthest by .72%. this follows a down street day on wall street. all of the three major indexes lost 2% on concerns over the debt problems in u.s. allison cost sick tells us what we can expect. >> a steep selloff to begin the week on wall street. major averages fell and never recovered with a combination of negative u.s. and european headlines dragging on sentiment. investors are concerned about the failure of the united states debt super committee to come to a deal with just the deadline two days away. the fact that it's a shortened trading week with the market closed thursday and opened half a day on friday is only adding pressure to the situation. at the close, the dow tumbled 238 points. it had been down more than 340 points earlier. some troubling news out of europe factored into the losses as well. moody's issued a warning about france's credit outlook and european banks may be forced to cut funding if the crisis worsens. coming up tuesday, investors will be looking for increased signs of life in the u.s. economy. a second revision of third quarter gdp is due before the open. the federal reserve will release the minutes from its most recent policy meeting shortly before the close. that's a wrap of the day on wall street. i'm allison ko sick in new york. they have pinned the blame on the anticrew sayser. he got people to sign a pledge not to raise taxes. joh