road to democracy. she spoke to reporters after holding a second round of talks with hillary clinton. the u.s. secretary of state has called myanmar's reforms a positive step. she warned they need to make more changes before the u.s. will consider restoring diplomatic relations. jipgs wi s -- the militarys of egypt say they won't be ready until does he or sunday. democrats and republicans say an extension of the payroll tax cut will help the economy but can't agree on how to pay for it. the senate shot down proposals brought by both parties forcing more negotiations. those are the top stories from cnn, the world's news leader, i'm zain vergee and "world business today" starts now. happy friday and welcome to "wbt" i'm andrew stevens in hong kong. these are the top stories. time to make a change. germany and france champion a major eu overhaul but differ on the details. it's all about jobs this friday. the big monthly nonfarm payroll number is out in a few hours from now. investors wait nervously. and mario monti nearly gets the wrong man. he's offered an italian cabinet position after a mix-up over names. s athese two european power players begin to see eye to eye, a plan to solve the european debt crisis appears to be starting to take shape. the french president nicolas sarkozy and the german chancellor, angela merkel will hold a crisis meeting on monday. details are unclear but they are expected to finalize proposals for stricter budget discipline. just a short while ago, ms. merkel explained some of the proposals she's making to members of her own parliament in berlin. she laid out her vision of a much more tightly integrated euro zone and said europe was on the verge of a fiscal union. she ruled out the idea of issuing so-called eurobonds to spread risk more evenly among member states of the euro area and said there's no quick fix for the debt crisis. she said it's a process and that process will take years. the leaders of germany and france have frequently seemed to have been at odds over how to resolve the euro zone debt crisis. differences remain between the kind of integration they want to see europe pursue. when the french president nicolas sarkozy took the podium, his message was one of unity and determination. >> translator: at the heart of the european economy there must be a zone of stability and confidence, which is the engine of european competitiveness. i will do everything and nothing less, to keep france and germany united together, wrapped in the fabric of stability and confidence so that this can safeguard europe. >> despite the united front presented by mr. sarkozy and ms. america, investors around the world are keeping an eye on developments in the euro zone as the urgency of resolving the debt crisis continues to grow. they'll also be looking across the atlantic to the u.s. where job numbers are due out later this day. we have more on that in just a moment. first let's take a look at what the markets in europe have been doing so far this day. and as you see, green arrows across the board once again for the euro markets. it's been a big week. if you look at the stocks 600 index we're on course to have the biggest weekly gain in the euro zone for about three years. up around 9% for that stock 600 index at the moment. you see the four big indices clearly over the 1% gains barrier. paris leading the way with 1.75%. if investors in europe seem less rattled by events in the euro zone than they have been in recent week, this man isn't leaving anything to chance. he's mervyn king, governor of the bank of england. he was asked on thursday if the uk has plans to handle a breakup of the euro zone. king would not be drawn on specifics but he did say the british government is bracing for all kinds of scenarios. >> the government together with the fsa and the bank of england are making contingency plans against my range of contingencies. i'm not going into detail as to what those are. we are making contingency plans. >> markets here in the asia-pacific region are closed for the week. most managed to lock in major gains from thursday after the world's biggest central bank said they would be cutting the cost of borrowing u.s. dollars. investors taking a breather after the big rally on thursday. there is a little bit of profit-taking going on in shanghai, i see down a fraction. markets mostly up ahead, as i say, of that key jobless numbers. looking at the numbers now, the nikkei is up, up for two reasons, nikkei up about 0.5%. first reason, goldman sachs and ubs says tokyo's measures to recover from last year's earthquake and tsunami will push the nikkei higher next year. next, tokyo to unveil a fourth budget to keep the economy going. it's going to be at least $26 billion. the hang seng just a fraction in positive territory and the east in the green zone a few moments ago. shanghai as i said also down by more than 1%. that's the second day it's been underperforming. it comes despite the news from beijing that they're going to loosen restrictions on bank lending. finally, the asx up 1.4%, despite s&p's downgrade one notch to aa minus. s&p changing criteria to better bank exposure to risk. now, on friday, the week in review, we've had great gains. let's take a look at some of these numbers here. great gains since that central bank action we saw on wednesday night. that was the u.s. time, starting here in australia. the asx 200 is the big winner, look at that, up 7.6 for the week. its best performance in three years. hong kong, strength up by 7.6%. japan, the nikkei up by virtually 6%. that's the best week it's had in two weeks. shanghai continues to underperform. it was down for week. that's its fourth weekly loss in a row. looking ahead, we have the u.s. jobs number and we've also got that major eu summit one week from today. that is going to define what happens obviously in the markets in the short term. closing bell on wall street on thursday. after that stellar surge we saw on wednesday, u.s. stocks finishing virtually flat. concerns about the european debt crisis continue to dog the markets. they're never far away despite that central bank action to unblock the credit markets. we have positive u.s. economic data coming through yesterday showing retail sales and auto sales up in november. and by the close, that's what it looked like, not too bad considering the big, big gains from the day before. the dow and s&p both down just a fraction and the nasdaq up by around about the same amount. this is where the u.s. stock futures stand in the premarket action at the moment. right now they look set for a stronger open. when trading begins later today. you'll see around about 1% gains. remember, the jobless numbers will play a spushl roll in what happens today in the u.s. of course, u.s. investors are looking ahead to that all-important monthly u.s. jobs number. comes out later today. a cnn money survey of economists forecast 110,000 jobs were added for the month of november. the u.s. unemployment rate is also expected to hold steady at around about 9%. that compares to the preliminary 80,000 jobs added the previous month. we'll break down there of the past six months. it's been a choppy ride as you can see there. it's very important to remember, you have to see jobless or jobs being created at a rate of north of 200,000 a month to start making a meaningful dent on that 9% unemployment rate. if you're a part of that 9% of unemployment in america, we may have some -- i mean some -- good news for you. there's one industry with plenty of jobs to fill. they're looking to hire right now. we'll tell you where to apply a little later in the program. quite a few people in southern california didn't get into work on thursday after the infamous santa ana winds toppled trees and power lines. let's go to jen delgado at the cnn weather center. yesterday was officially the end of hurricane season yet we're getting hurricane-force winds. >> that's right. we're talking about those winds being excessively strong along that western coastline of the u.s. california. even over the last couple hours i've seen wind gusts up to 97 miles per hour. we're talking about 150 kph. as i show you, the area since yesterday has shrunk. we're talking about the advisory area. we have a high wind advisory in place for parts of california. you can still see areas. this is the area we're watching because of the santa ana winds as you were saying. let's go to video. this is amazing video, just showing you the power of the winds. look how large those trees are. it actually snapped on a woman's home. we're talking about trees coming down, power lines have been coming down and flights have been diverted into and away from lax because of the bad weather conditions. we talk about these santa ana winds, the winds come down the mountains, they speed up and warm. as i take you back over, it also drops the relative humidity. that leads to an elevated fire danger. we're looking at this danger as we go into friday, the afternoon, we'll see the winds coming back onshore. that's going to bring an improvement. even as we go into the weekend we're looking at periods possibly of gusty conditions. i want to point out to you some of the winds, 156, 122. as you said, hurricane force. when you break that down, that's roughly 95 miles per hour in some areas, 97. we look at a little bit rain. you can see the snow coming down through some areas but we're not expecting anything too significant right now to cause any travel delays. meanwhile across parts of europe they would like to see snow. this is a view of the alps. there's no snow there, andrew. and because we're dealing with really a severe drought through central as well as eastern parts of europe. that has led to the cancellation of many ski championships. and, of course, that has an economic effect. you can't see me. you can see me now. >> there you are. that has a huge economic effect. >> absolutely. >> i was talking to charles about this last week. he said usually the snow kicks off about the middle of december. >> right. >> i'm not going to put charles in the same league as you as a meteorologist. >> there should be snow up there. >> we shouldn't be expecting too much. >> there should be more snow out there, absolutely. >> i'll pass that on to charles. >> i'll pass it on to him. i'll do your dirty work. >> thanks, jen. >> welcome. >> appreciate it. still ahead on "world business today," pressure builds on iran as the nation proceeds with its nuclear program. it's not just tehran that is set to suffer if the u.s. gets its way either. find out how a new congressional measure could hit cash-strapped european nations and make things pricier at the pump. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. the waterfront there. welcome back. you're watching "world business today." doing business with iran has long been a tricky business, sanctions restrict trade and other economic activity. it may be about to get even more difficult if a plan to punish foreign institutions that deal with iran's central bank passes in the u.s. house of representatives. it passed the senate unanimously on thursday. the proposal is designed to put pressure on iran to curb its nuclear power program which the u.s. suspects is a front for weapons development. the plan has already won the unanimous backing of the u.s. senate but the obama administration remains firmly opposed to it. barbara starr has more. >> reporter: the u.s. has long used sanctions to try to stop iran's cash flow for financing its nuclear efforts and support for terrorism. but now the administration is saying, not so fast. to a tough new bipartisan sanctions proposal from congress. the idea, target iran's central bank by cutting off u.s. banking with any foreign banks that bank with the iranians. much of the banking with iran is done to pay for iranian oil. the administration is considering action against iran's central bank but officials warn the congressional proposal could be a bad idea in today's fragile economy. >> it is a very, very powerful threat. it is a threat to essentially for the commercial banks to end their ability to transact in the dollar and their ability really to function as major international financial institutions. >> reporter: according to opec, iran exports about 2.5 million barrels a day of crude oil, earning it more than $70 billion a year. countries around the world buying iranian oil pay for it through transactions conducted by the central bank of iran. for those countries -- >> it would say to them, if they continue to process oil transactions with the central bank of iran, their access to the united states can be terminated. >> reporter: such a sanction could trim world oil supplies and cut iran's ability to sell oil to european allies. but that, too, could backfire. western economies could be hurt by higher oil prices in reaction to less supplies, plus those higher prices. >> which would mean that iran would, in fact, have more money to fuel its income ambitions, not necessary. >> we don't want to create a situation where we spook oil markets, we drive up the price and we inadvertently enriched the regime who would enjoy a massive windfall if that were to happen. >> reporter: administration officials have a dilemma. how badly do they want to hurt iran? and then possibly hurt americans more in the pocketbook in an election year? barbara starr, cnn, pentagon. meanwhile, europe is preparing its own sanctions against iran, possibly including an oil embargo as it tries to get the iranian government to give up its nuclear ambitions. it's hitting back at iran diplomatically following the ransacking of the british embassy in tehran earlier this week. jim spellman has the story. >> reporter: here at the iranian embassy in london, irenian diplomats are packing their things after being ousted by the british government in retaliation for an attack on the british embassy in tehran earlier this week. now word of more sanctions, this time coming from the eu who have targeted 180 iranian companies and individuals for sanctions, they hope to ratchet up the pressure against them to eliminate an alleged nuclear weapons program. >> the council is outraged by the attack on the british embassy in tehran and utterly condemns it. it is a violation of the vienna convention. it deplores the decision to expel the british ambassador from tehran, the council considers these actions against the uk has actions against the european union as a whole. >> reporter: iran avoided a much more stiffer sanction, a complete oil embargo on their exports to the eu. this could potentially have a serious affect on their oil industry. our understanding is that germany, britain, france, pushed for such an embargo but that greece objected. greece relies heavily on iran for oil imports. they say with their economy in such tough shape they couldn't afford such a sanction. the eu has left the door open for further sanctions and next week, heads of state will meet again in brussels where further sanctions could be explored. jim spellman, cnn, london. just ahead here on "world business today," the former italian prime minister silvio berlusconi returns to the spotlight as prosecutors call witnesses in the billionaire's underage sex trial. and find out why berlusconi's successor nearly ended up with a canadian college professor in his cabinet. 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by unitedhealthcare insurance company. call this toll-free number on your screen now... for this free information kit, including this... medicare guide and customized rate quote. leaving court in hong kong on wednesday, a woman who's made a very tidy sum from a very messy situation. you're looking at florence who says she's delighted after walking away from her marriage to a property heir. she's walking away with $154 million. that's amount a judge determined was necessary for her to maintain her lifestyle. that's more than three times what heather mills received after splitting from paul mccartney. anner is still rife at the source of european debt crisis. in a moment we'll examine the steps that need to be taken to resolve a problem that started in greece. first, we're heading to athens, tens of thousands took to the streets on thursday, angry that the most vulnerable greeks are paying the highest price under strict austerity measures. lindayn we have this report. >> reporter: they've joined forces in what is the first general strike under greece's new interim government, a government primarily formed to ensure that greece sticks to the necessary requirements of its lenders to prevent the country from defaulting on its debts. to the thousands marching across greece, this recent change of government has made little difference. the general strike comes only days before the debate for the 2012 budget is to begin in parliament. and although it does show significant improvements that will see the budget deficit cut to about half and a primary surplus for the first time, it is accompanied by severe austerity in a country which will empty taxpayers pockets by billions of euros. they're asking their government and its lenders to do more to promote growth. cnn, athens, greece. it may have all started in greece but the euro zone's financial woes have spread, as we know, across much of the continent now. ali rhen says it all needs to be sorted out by this time next week. in an address to parliament in the past hour, the german chancellor, angela merkel reiterated the need for greater budgetary constraints across the euro zone. with several pieces of puzzle still missing or not yet in place there could still be some way to go. jim moulden looks at how to put the jigsaw together. >> reporter: what are the pieces to the puzzle? what are the pieces to the jigsaw that would have to come together in order for there to be a fiscal union in europe? let's start with the stability pact, this idea that the governments would agree to tighter fiscal union, tighter oversight of their budgets and deficits and there would be penalties for countries that use the euro if they don't follow the rules. those would be strict penalties. that's what germany wants to see. that's what could come out between any meeting between france and germany between now and next week. a lot of analysts would like to see various things. there are hints that they would step in a