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 primary goal is to reach a hundred percent sert kags by 2020. to encourage industry commitments. we have launched one of the largest and most comprehensive cocoa sustainability initiatives to reach this ambitious goal. we are working with rainforest alliance, fair trade international and utz good inside as part of this effort. we are the only chocolate manufacturer to buy cocoa from all three major certifiers. as for cadbury, it simply said kraft foods is working with others in the industry supporting the protocol to work towards elimination of the worst forms of child labor in the growing of cocoa beans. . if it's fair trade, does it have less calories? >> i'm afraid it's still going to make you fat. but you'll be ethically fat. >> we talked about this one. >> richard quest there reporting on the cocoa industry and endeavors to try to stop the practice of child labor. coming up next on "world business today," we return to italy for the capsized costa concordia. those stories next. brad, where we going? just a second. just, just one second. ♪ what are you looking at? don't look up there. why are you looking up? ♪ get outta the car. get outta the car. ♪ are you ok? the... get in the car. get in the car! [ male announcer ] the epa estimated 42 mpg highway chevy cruze eco. from spending time together, to spending your lives together, chevy runs deep. take a look at this dramatic new amateur video showing rushing water going down the stairs of the costa condordia. there's a certain degree of confusion because a lot of them don't speak english. these pictures give a sense of the panic and chaos during that evacuation. and startling new details have been emerging about what captain schettino may have been up until the hour leading to the evacuation. according to one witness interviewed, captain schettino was seen ordering dinner for himself and a female companion in the ship's restaurant. >> translator: the captain insisted on having a meal at around 10:30. he arrived with a woman who i didn't recognize. at that time, i was with a colleague. and we wondered what was going on. at that time, we really felt something was wrong. the stuff in the kitchen was falling off shefls and we realized how grave the situation was. i have had 12 years experience as a cook on a cruise ship. but i did wonder, though, what the captain was doing. why was he still there? anyway, we gave him his drink. after that, he was also still waiting for the desert to be served to the woman he was with. >> it's now weeks since the costa condordia capsized. in italy, news agency is reporting that divers have had to abandon their search for survivors after the ship started moving again. hopes of finding anyone alive are fading fast. passengers who did make it off the costa condordia are describing their harrowing end to the holidays. >> we managed to get to a lifeboat that was not being overrun and the crew tried to keep us back, but we felt all of this pressure coming from behind. >> pushing, you mean? >> yes, stampeding, trying desperately to save their lives. the siren was unbelievable. it was so piercing that the children and babies were screaming at the top of their lungs while everybody else was screaming to try to be heard. it was -- it was so chaotic. it was like the disaster movies. >> knowing that the staff -- i mean, they seemed younger to me. they did not know what to do. they got on the lifeboats and they could not even drive the lifeboat. it was someone who jumped into the water, climbed on to the lifeboat and began to maneuver it to drive off that saved us. he was a hero. >> well, authorities have begun whether to continue or wind up the search for survivors. and that's because the next phase, the salvage operation to remove the 2,000 tons of fuel from the ship can't actually begin until the rescue operation has eventually been called off. as the costa condordia, all eyes are on the skies as a powerful storm system gathers in the region. the cnn international weather center is tracking those conditions. hi, there, pedro? how is it looking? what is the forecast like? >> yeah, this is the day. we've spoken friday all week. and now the day is upon us. the storm system knocking on the doorstep there on portions of the western mediterranean. take a look, very broad feature in place. the cold front associated with the storm system. that's the concern right there. not just the cold temperatures or even the rain showers. the main concern the winds are going to be increasing. right now, only about 9 kilometers per hour in the closest observation point. we think that has the potential to get up to about 50 kilometers per hour. that's the ship location. we do think the winds will get up in excess of 50. but it is the winds and the waves associated with these winds. two plus meters that are the most concern. there is the vessel right there courtesy of google earth flying just on the sand bar there just offshore. and, again, you take a look at the photographs to show you the position in place. we know it's sitting in an area that's about 10-20 meters on a slope. but just wond thbeyond that, th and the depth of the ocean increases significantly. officials saying the vessel is on the move. and if the winds do pick up, if the seas pick up, as we think they might, this, again, is going to shift this vessel right into the deepest portions of the surrounding waters. and that fuel tank that you were just talking about, that could rupture, that could cause an entirely new environmental disaster in place. and that's the concern for the next couple of days. and, you know, i want to leave you here with us, some new video we're getting on the other side of the world, taking you out to japan. this is tokyo picking up some snow showers just in the past few hours. you know folks in tokyo, on average, get about ten snowy days a year. here comes the first one. act 1600 meters high, it's a popular hiking place. they're going to see some large accumulations associated. but in the city, just a nice scene that kids are going to enjoy as they head on into the weekend. >> okay, many thanks for that update there. let's take a look at what's going on in the european stock markets 90 minutes into the day's trading session. a lot of concerns about when eventually those talks between greek creditors and the greek government they will are have to take will eventually finish. they've been going on since wednesday. so far, we've had no reports of an agreement. we should also remember that we've got euro finance ministers and european finance ministers, broadly speaking, because, of course, there's 27 members of the eu. those finance ministers will be gathering on monday. so the euro zone is coming right back to the forefront. there's some caution as we head towards the weekend. >> let's also see if we can have a look at asian's top markets. we should also point out that we had manufacturing data out of china. this economy is continuing to slow, but it is still going at breakneck speed. as you can see there, the market is shrugging off that kind of thing. we had some gain with the financial stocks there over in asia. those markets are shut now. they did manage to post gains to the tune of about 1 to 1.6 of one percent across the board. now, beer is essential for watching the football world cup, at least that's the official world coming from fefa. it's facing a position from the host of the 2014 tournament, brazil, which banned alcohol back in 2003 in a move to try and reduce violence there. however, fifa says that the issue is just nonnegotiable. >> reporter: let there be beer. that is the clear message from the world's highest football authority, fifa, to the host of the 2014 world cup, brazil. beer has been banned here since 2003, an attempt to reduce violence. >> it's part of the fifa world cup. so there will be, i'm sorry to say. maybe i look a bit arrogant. but that's something we'll not negotiate. i mean, there will be, and there must be, a spot of the lure. the fact that we have the right to sell beer. >> he spoke to reporters after touring stadiums across the country with former football star and brazil sports minister. the minister has repeatedly said brazil would meet its commitments. but he needs congress to come through for him. >> translator: the government sent them a general law based on its 12 commitments. >> reporter: brazil is battling fifa to offer cheap tickets for indigenous groups. during his visit, brazil simply isn't working fast enough on stadiums, roads and airports. in fact, he said the stadium and the northern city was officially behind schedule and suggested brazil might have fewer than its proposed 12 stadiums. but they would soldier on. >> to organize a world cup, we can organize a world cup with stadiums. >> security is another challenge. in rio, police have stormed dozens of shantytowns to eliminate violent drug lords ahead oft event. but many more are controlled by violent gangs. while plans for a high speed train from san palo to rio haven't even left the drawing board. shasta, cnn, san palo. >> well, the tournament means big, big business for fifa's sponsor, budweiser. this is because this group sold about 1.5 million bottles of beer at the 2010 world cup. that's nearly equivalent to about 800 thousand leeters. fifa could be facing further problems in the future with both currently having restrictions on alcohol sales as well. however, those two countries, we should say, have hinted the special arrangements could be made for the event. finally, your suspicions have been right all along. your boss is really a psycho. or there's a chance that they might be. kevin voigt is explaining why online. as one psychologist has been telling him, quote not all psychopaths are in prison, but some are in the board room. don't miss it. there's even a quiz. you can access that really interesting article at cnn.com and click the business tab at the top of the screen. and that's it for this edition of "world business today." thanks ever so much for joining me. i'll be back in about four and a half hours time with the opening bell. ♪ you want to save money on 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[ female announcer ] travelocity. get great deals on all kinds of beach vacations. this week on "marketplace," pressure increases to loosen ties with iran. plus, filling the void. saudi arabia's oil minister on how the kingdom can fill any shortfall in oil supplies. chinese premier visited the gull gulf this week to saudi arabia. the premier's first port of call was to oil-rich saudi arabia where the delegation signed a number of new energy deals. despite building on the region, analysts believe that as tensions continue to rise, beijing is looking for alternative sources of oil and gas in the region. >> reporter: on is this week's tour of the gulf arab nations, aim to bolster ties and forge new relationships. but observers say he was also shopping for oil and gas resources. premier gas visit took him to the united arab and saudi arabia, home of the largest crude reserves. >> they're my number one priority right now for the chinese is to ensure that they will have a long term, secure supply of energy plus investments in long term energy supplies. >> reporter: china ships about a half million bottles of oil from iran each day, making it the republic's largest crude buyer. now as tensions ratchet up and teheran threatens to block the street, the oil exports could be tightened. beijing is believed to be widening its options and nurturing its relationships. on the visit to saudi arabia, the two sides signed a series of economic agreements, including a deal to jointly build an oil refinery worth as much as $10 billion. the gulf arab countries are clearly caught in china's vast wealth and economic power. >> saudi arab wa went all the way to china. we can give you the same and even better. as western powers drum up support for further sanctions, china will have to tread carefully. beijing opposes sanctions and aims to maintain its relationship. but as tensions rise, it will also have to nurture ties with the arab countries in the region. in the end, it's a friendship that will serve both their interests. cnn. >> saudi arabia in particular is benefitting. the deal signed this week, a $10 billion refinery deal. the kingdom will own a 62.5% stake in the venture and is expected to produce 4.5 barrels a day. this is what they had to say about the partnership. >> it is a thirst for energy. and the most cost-effective and convenient way to quench that thirst is to provide them with the energy and that interdependence. we need china as much as china needs us. >> this is the first refinery project outside of china which is expected to begin production 2014. and the company's chairman is thinking ahead. >> we're looking for long term management to secure our sustainable growth around the world. and, secondly, and because of the largest energy supplier is here and larger markets is there in china. so this is naturally linking us together. >> as saudi arabia bolsters its relationship, it is keeping a close eye on the on going tensions with iran. if new sanctions are imposed over its nuclear program. i sat down with the saudi oil minister and asked him if the kingdom can make up if sanctions are placed on iran. >> if we were asked to provide additional 200 or 300, that's not a big deal. because you know we have the capacity to produce 12.5. and we're idling now between 9.4 and 9.8. so we have substantial spare capacity. >> reporter: how long would it take for you to get to that level if the world needed that oil? >> okay, that's stages. i believe we can easily get up to 11.4, 11.8. almost immediately in a few days. because all we need is stand valves. now, to get to the next 700 or so, we'll probably need about 90 days. and the 90 days is for one thing, to mobilize additional grids. >> so this is concern that iran exports 2.2 barrels a day could not be filled. the reality is that the kingdom can fill those exports almost straight away, sir? >> right. i like to think of it this way. this spare capacity is to respond to emergencies worldwide. to respond to our customer demand. >> reporter: in fact, south korea and japan had concerns of cutting off iranian crude because they didn't think anybody else could fill the void. they're customers of yours, you could step up to the plate, could you not, sir? >> absolutely. and as long as they're our customers, we will honor their requests. >> reporter: we're at a case right now where we're at $110 a barrel. what should the world be prepared for in 2012 with the tensions that we see in the gulf right now, in particular with iran? >> if we were able, as producers and consumers, to average a hundred dollars, i think the world economy would be in better shape rather than these gyrations implies, one day it's here, one day it's very high. unpredictability is not good for the market. >> reporter: there is some concern that iran would actually shut the straits. how much of your daily production of 9.8, 9.4 million barrels a day goes through the strait? how concerned are you about this? >> well, one has to be aware. we don't need to be too concerned. but, of course, we have many alternatives. and i, personally, do not believe that the strait, if it were shut, will be shut for any length of time. the world cannot stand for that. >> reporter: and are you concerned with the sort of provocations that are being made by iran today? and the language being shared by the u.s., france and iran in the gulf at this juncture. >> let me put it this way. i don't think all of these pronouncements are helpful to the international oil market or to the price of oil. it's really disturbing. >> iran has reacted to this interview with the foreign minister advising saudi officials to report remarks. also, saudi officials should respond more thoughtfully and sensibly to regional issues because all of these stances will impact bilateral relations. as oil supplies continue to be a cause for concern, some are looking towards alternative energy sources. up next, we go green in the desert as the world future energy summit. uh-oh. [ male announcer ] when diarrhea hits, kaopectate stops it fast. powerful liquid relief speeds to the source. fast. [ male announcer ] stop the uh-oh fast with kaopectate. the middle east sits on half of the world's oil reserve. while the region is flushed with black gold, many are looking at alternative sources of energy. find out what steps they are taking to turn green. >> reporter: concerns over oil in iran has many in the region uncertain over future energy resources, putting alternative energy sources high on the agenda. at this year's world energy summit, international dignitaries, business leaders and industry specialists converge to drive invasion, boost investment opportunities and support an agenda in sustainable green energy. >> we have an ambitious target by 2030 to double the renewable energy and global energy mix. a lot of countries have already been investing in renewable energy and solar, wind power, hydro. >> the united arab is just one example. by 2020, the uae's capital is hoping that 7% of its total energy mix will come from renewable sources. >> we're very modern can be merged by highly efficient power plants. and we're very keen to be at the forefront of technology in every dimension of power supply. >> reporter: fast emerging as a hub for renewable energy, dedicating resources to the project, an initiative to create a city that's carbon neutral. it's also the headquarters for the international renewable energy agency, or irena. but despite sitting on vast oil reserves, many in the gulf region are looking to diversify their energy base. and companies are starting to tap into that market. >> we started four years ago because there is a fantastic solar resource in the middle east, north africa. a solar panel put on the ground here produces twice as much energy as one in germany, which is the largest solar market in the world. >> reporter: international companies see huge potential and want to capitalize on the region. >> if you think about the world's power markets today, it's going to be require 50% more power by 2035. that is a lot of power. it's been estimated that $17 trillion will be spent to build out the power infrastructure in the world in the next 30 years. so that's a tremendous amount of spending, tremendous amount of growth that's required. so the middle east is going to continue to be one of the bigger areas of investment. the other two biggest areas in the world, they're going to invest in the next 30 years are india and china. >> this summit made with the region's alternative energy ambitions on the global map. with the continued demand for oil and the high cost associated with going green, can renewable resources truly power the region? cnn, marketplace middle east. >> and that's it for this edition of cnn marketplace middle east. i'm john. thanks for watching. we'll see you next week. -- captions by vitac -- www.vitac.com

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