Transcripts For CNNW World Business Today 20120120 : vimarsa

Transcripts For CNNW World Business Today 20120120



considering calling off the exploration so salvage work can start. face-off in the debates in south carolinament they talked about jobs, tax returns, health care and who's best qualified to take on president barack obama in november. newt gingrich lashed out at the media when asked to comment on his ex-wife's claims about their marriage. six nato troops are dead. their nationalities haven't been released. nato says there was no hostile activity in the area when the chopper went down. but the taliban are claiming responsibility. those are the headlines from cnn. i'm zain verjee, "world business today" starts now. >> hello. and a very happy friday too you. welcome to "world business today." activists strike back after celebrity-ebb endorse web site megaup load to shut down over privacy claims. google pulls back on the stock market. and why the captain of a wrecked cruise liner was ordering dinner and desert when he should have been evacuating the ship. all of that and more to come later on this hour. first up, though, let's take a look at how the european stock markets are doing. stocks posting some mile games today. but as you can see, things have soured, let's say, in the last 20 minutes or so of trading. all of these markets now down and the one that is down the most is probably the cac 40 closely followed in germany stock markets. and let's say at one point, seemed to be getting a bit of optimism, though we must point out that on the other hand, we still have to reach an agreement there between the private creditors that own the greek bonds and the government there and that is one of the things that is sucking confidence on the market. also, remember that the european units will be meeting on monday to discuss the future of europe's rescue fund. and in light of that, what we've had now is a second down day on the markets that we have three positive days of momentum. let's have a look at how things ended in asia. this is how the week faired leading indices managed to post healthy gains on friday largely to exporters and banking stocks getting a lift with increased optimism over europe. we had china contracting there for a third straight month in january as the world's second largest economy continues to show more signs of slowing. but that didn't stop investor confidence on the final day of the week. one of the world's biggest file sharing web sites has been shut down by the united states government over claims of piracy, money laundering and even racketeering. 7 executives have now been indicted in relation to charges that they defrauded copyright holders to the tune of $500 million. four arrests have been made where officials are working with the f.b.i. on extradition proceedings. law enforcement officials have not yet detained the other three people accused. for more on this developing story, let's cross live to hong kong where this company is based. >> reporter: yeah, thanks. this indictment is pretty surprising, mostly on the account of how main streen megaupload is. that's often before the material has been officially released. it's also far from being an underground operation. it claims 180 million subscribers. and unlike other alleged piracy pushers, well, it's been endorsed by a string of famous names in the past. take a look. >> i use megaupload. >> i like megaupload. >> i love megaupload. >> i love megaupload because it's fast just like i am. >> reporter: and one of the individuals indicted is the man persuaded all of these stars to take part. that is megaupload cofound er kn schmidts. it's about $175 million. he was one of three men arrested on thursday at his new zealand mansion. >> i've been arrested on warrants relating to breech of copyright offenses in the united states, money laundering and racketeering. we have seized an excess of $6 million worth of top end motor vehicles. and over ten million in cash from several new zealand finance companies. >> and there's another twist to the story. a lot of those celebrities you saw just now, including kanye west, belong to universal music group, which objected to that megaupload promotional video. and shortly after the inindictment was made public, universal's web site was one of a number targeted by the hacking group anonymous after this video was released last year. the u.s. department of justice, the f.b.i. as well as the recording industry association of america also saw their sites go down temporary. if he's found to be on the wrong side of the u.s. law, well, he could face 50 years behind bars and that could be most of the rest of his life. >> okay, so many thanks for that. u.s. law is certainly getting tough on piracy these days. the megaupload indictment comes in the same week that protest erupted online over new legislation possible before congress. this includes sites like wikipedia. the stop online piracy acts, that is what's being known as sopa. and also the senate's protect intellectual property act abbreviated to pipa. the widespread blackout on wednesday was intended to try to highlight just how some of these new laws could amount to censorship. the protest even extended to search giant google which blacked out its famed logo for a while, as well. speaking of google, disappointing may be an understatement when it comes to that company's fourth quarter earnings as soon as investors got wind of the results on wall street's close on thursday, google's stop plunge, get a look at that, 10%. the search giant reported a fourth quarter profit which was still up about 7% from last year. but it still fell short of analysts' expectations. google's ceo says that a surge in hiring and increased spending on infrastructure managed to offset a strong performance at the google social network and also strong sales with android phone operating system. google may have taken quite a hit, but the stock is still pretty hot. anyone who got in on the ground floor it seems will be laughing all the way to the bank. if you bought google stock when the company originally listed back in 2004, you would have paid a price of $85 a share. however, those shares are now worth just under $640. that represents a gain of 650%. so if you'd originally bought into google's i.p.o., your investment would be worth more than 7 times as much as you originally shelled out for it. now, staying in the technology sector, apple is trying to take a bite out of the textbook market with a push to products in the classroom. maggie lake has a look at apple's digital dreams in new york. >> reporter: apple hit the big apple to unvail its plans to revolutionize the way kids learn. >> i think you can see immediately, these are gorgeous, gorgeous books. they're really in a class by themselves in terms of rich, engaging layouts. >> reporter: with a batch of new initiatives including ibook author, itunes university app, apple is trying to get schools and educators to shift from using heavy, expensive, out dated textbooks loike the one yu see on that wall with new, digital interactive versions made especially for the ipad that you see right now. >> what apple has provided is a very simple tool, a powerful tool that looks very good and works well. they've gotten together with some very important and powerful partners who are already delivering textbooks into the education marketplace. and they put it in a price point where the education system can get excited about it. all of those things together comprise a game changer. >> textbooks are a massive 10 billion dollar industry. but there are big challenges that apple faces. school budgets are very tight right now and some people are worried about the durability of an ipad in the hands of grade children. and a lot of these initiatives are aimed at kindergarten through high school. still, apple's track record speaks for itself and the company says it is committed to reforming education. >> all of us at apple know you realitily can empower people through learning. technology has a role to help in doing that. it's one of the best things that's built into the culture at apple. to care about learning and to want to do our bit to help and to prove that process. >> education is deep in our dna. if apple succeeds, it may turn out that future generations of students have a little bit of apple in their dna. >> coming up next on "world business today" a slow down in pc sales wasn't enough to keep intel down. we'll take a look at the chip making better-than-expected earnings and take a look at what's next in europe, middle east and africa. you know when i grow up, i'm going to own my own restaurant. i want to be a volunteer firefighter. when i grow up, i want to write a novel. i want to go on a road trip. when i grow up, i'm going to go there. i want to fix up old houses. 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[ male announcer ] osteo bi-flex. the #1 doctor and pharmacist recommended brand. welcome back. you're watching world business today. as we mentioned before the break, google's fourth quarter earnings may have been disappointing, but other results were really quite strong. microsoft, ibm and intel all beat analysts' estimates. to a total of nearly $3.4 billion. joining me now to discuss those results is christian morales for europe, africa and the middle east. thank you so much for coming on "world business today." now, i remember last time we were speaking, about six months ago, you were in this very seat. we're talking back how pc sales are sliding and how intel is managing to try and hold up the momentum. these figures show a similar trend. how are you managing to do it? >> yeah, the pc division improved 17% in revenues. our server division grew 17% in revenues. and also businesses like communication infrastructure, like embedded designs intelligence systems grew 60%. so we had a fabulous year from a revenue standpoint. >> so where is this growth coming from? if you take a look at the prognosis, it is a little bit bleak. how is intel going to be able to maintain that momentum. >> in general, at this stage last year, we introduced a second generation core technologies and architectures. we shipped more than 150 million units during the year. so the demand is very, very strong. our factories could meet the demand and we had a fabulous year. and, now, what we are doing is reuniting the pc with a breakthrough in terms of user which is a book working with the industry as a whole. and we think this will keep increasing the growth. and on top of this, we have the emerging markets growing very strongly. there's a preferred device to accessing the internet is the notebooks. >> so you've mentioned the ultra book. i suppose there a pc's competitive product to tablets. but how worried are you realistically about the boom in tablets and hand held devices? >> so what it's entrusting is that the notebook industry is hundreds of millions of units. it keeps them going. and this ultra book is really bringing an uncompromised experience to the users, which is a performance of the notebooks and the mobility of the tablets. add to this the security, the connectivity, the fact that you can really produce rich content with your ultra books and the tablet is more for consuming rich content. so we think this content which is the uncompromised experience of both worlds is going to be very unsuccessful. >> we just had the consumer electronics show. and you, also, showcased some new technologies. tell us about them. and, also, why they could help intel weather the storm, let's say, in the pc market as that market becomes ever smaller. >> yeah, this consumer was very great because most of the headlines we saw in the world were about the ultra books. so this was really great. on top of this, we talked about tablets that are great. tablets on intel. and we also showed breakthrough products, smart phones based on the code name product platform from intel. and this is a product which we asked for the feedback is very, very competitive from a performance standpoint and very competitive from a battery life and energy efficient standpoint. so we have a great product there. and, as a matter of fact, the first nanometer technology that will be sold in china this year will come from those products. >> now, back to things that you really can't control, such as for instance changes in consumer taste and the shrinking of the pc market. the other thing is natural disasters affecting the supply chains. how have you been affected by the effects of the hard drive problems because of the floods in thailand. >> so the hard drive problems during the fourth quarter did impact supply management of those products. it didn't impact too much the pcs. it impacted them a little bit in the first quarter. but we think it's going to come back to normal in the course of the second quarter. so we're looking for a normal environment towards the middle of the second quarter on -- you know, when it comes to supplies. >> okay, christian morales, many thanks for coming in to explain this. coming up next on world business today, we'll have the latest from cnn's freedom project. a new start and we also explain where your chocolate comes from and how you pay the difference. stay with us here on cnn. i'm not crazy about these light fixtures. kitchen's too small. what's next? 607 franklin st. ♪ sea bass... ♪ ooohhh! ♪ i like it. yeah, i love the kitchen. 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[ female announcer ] travelocity. get great deals on all kinds of beach vacations. we have some good news from the cnn freedom project about a young woman we're calling isabell. you may remember we told you about her story of slavery and abuse. she was given up by her mother at the age of 7. her story attracted international attention. and, now, 20 years after, isabell is finally reunited with her mother and family back in taiwan. >> i know everybody is doing their job, and, indeed, you get something for it. i really appreciate it. you know, i'm here and thank you for everything. >> isabell has a lot of time to make up for here. but she says she'll be spending the holiday with her family and attending her younger sister's wedding. there's no return to our other freedom project story this week. the cocoa industry in ivory coast. this is the world's biggest ivory producer. industry reforms are a top priority including a pledge to end child labor. later this friday, david mcke mckensie takes us deep inside. here's a preview. ♪ >> reporter: another day of visiting the bush, we find a farmer. he says he's heard the government promises before. like many cocoa farmers, he survives just above the poverty line. he says he doesn't use child labor. his alternative? he relies only on himself. and at 70, he's a bitter man. >> translator: i've already been here for 26 years. i've already been here for 26. you see there? my roof? if it rains, we will get water inside. you can go inside and you'll see the water. if you have five acre, you want something for your child's future. i don't have anything. i'm telling you, i have nothing. >> reporter: the government sets the price for his cocoa. until reforms are put in place, many farmers will use children to cut costs and increase profits. >> translator: this syndrome of child labor is the result of the production costs that the farmer must bear. he tries to minimize the production cost of his harvest by using, unfortunately, child labor, which our law now condemns. as long as he will benefit from it, he will do it. >> translator: if i die right now, what have i done for my children. zero. zero. they say they want to help us. but help doesn't get to us. >> so that's a preview of our cnn freedom project special presentation. chocolates: child slaves. you can watch it on friday night, 8:00 p.m. in london. if you're in berlin, you can watch it at 9:00 p.m. so, ivory coast government can go someway towards making the chocolate industry child labor free. but responsibility lies with all of us, the consumers. richard quest caught up with the founder of the campaign group stop the traffic who shows us how to make the right choices and also how to make a difference. >> see, chocolate and the tasty stuff. but what am i looking for besides a good bargain? what am i looking for when i'm buying it? >> you should be looking for chocolate that's a good bargain for you that's delicious for you and actually is good news for those who took part in the production. >> right, but as i look at this range of chocolate, what are the signs? >> well, the sign is quite clear. here is cadbury's dairy milk. it's got a fair trade symbol on it because it's been fairly produced. >> now, there's a lot of chocolate here. >> lots of brands. lots of manufacturers. but here's a kit-kat. fairly traded. >> i don't understand. you've got four bars fairly traded, four bars not. four bars not. >> but one is enough. >> so why would any company not do both? >> the truth is this. in order to produce fairly traded cocoa, you've got to invest in the lives of those who are producing that cocoa. you've got to treat them fairly. you see here's galaxy. and galaxy says on it rainforest alliance. rainforest alliance and fairly traded are two different systems. but they both tell you that there was no slavery involved in the production of this bar. >> reporter: cnn asked nestle, mars and cadbury, why they certify some, but not all of their products. frankly, most of them didn't answer the question. nestle refers us to a statement saying the company believes child labor has no place in our supply chain. we are firmly committed to eradicate unacceptable practices. nestle noted they've partnered with the fair labor association to investigate in west africa and said, quote, where they find evidence of child labor, the fla will identify the root causes and advise nestle how to address them in ways that are sustainable and lasting. mars, which is the maker of galaxy came the closest saying while we will label some products, our

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