Transcripts For CNNW World Business Today 20120309

went bankrupt. opposition activists said 62,000 people were killed in the country. this video posted on youtube appears to show members of the free syrian army in the back of a pickup truck engaged in a heavy gun fight with government forces in homs. cnn cannot independently confirm the authenticity of this video. special ensloi, kofi annan, called for an immediate end to the violence. he warned against external military intervention. iran's ambassador said his country is ready to re-engage with the nuclear watchdog agency. his comment comes as western powers say they are ready to resume talks on iran's nuclear program without preconditions, but the ambassador says iran will never give up its nuclear program. those are the headlines from cnn. i'm juanita rajpal. "world business today" starts right now. good morning. from cnn london, i'm charles hodson. and a very good afternoon from cnn hong kong. i'm andrew stevens. welcome to "world business today." the top stories this friday, greece completes the biggest sovereign debt restructuring in history. but some investors still have to be leaned on to take part. >> we focus on fukushima. a local worker tells us about the radiation risks workers face. >> as we wait for the latest job figures we visit a bustling office in new york where apps for the ipad have boosted employment. it's a deal that's been months, if not years in the making, but they seem to have finally done it. greece has persuaded nearly 86% of its private creditors to accept a costly debt swap paving the way for a second sovereign bailout. more than $201 billion of debt have been tendered with bond holders expecting to lose about 3/4 of the value of their investments. there's even more to come as athens can apply newly established so-called collective action clauses. cacs. this will force the hand of the minority of the investors who didn't sign up to the deal. that will guarantee the greek government a further $26.5 billion. that takes bond holders' total participation to nearly 96%. the remainder of creditors must hold their bonds under the jurisdiction of other legal systems. they can't be forced to agree to the deal. here's what matters. the international swaps and derivatives association will meet a few hours from now here in london to determine whether the deal constitutes a so-called credit event. if they rule that it does, it will trigger payouts to holders of greek default swaps on greek debt. the failure to do that would have worried people. the prospect of a credit event might have scared investors a few months ago but most have since priced it in. the fact that a disorderly default has for now been avoided, phew, is what they're saying. this news was coming out so to some extent it was starting to the price mice last night. here's how they're looking now with athens leading the pack up by .5%. paris cac and ftse basically hanging in there. they're on the flat line. the other news, the u.s. job numbers are quite rosie. we'll have to wait to see for a few hours. anyway, in terms of greece, things have certainly turned sunnier in the global equity markets. monday and tuesday were negative sessions. can this new positive move be sustained? let's get some perspective from will heddin, a sales trader. will, presumably a sigh of relief all around there? >> yes. good morning. a sigh of relief. we did mention we had some rough days. we still are negative for the week for most european indices. i think as what happens from the isde happens as we expect it to, they do call this an orderly default, i think we've avoided a bigger catastrophe for the short term and worries that this would have caused overall for the debt market. >> what do you think is the broader market view of this? is this something that had to happen that was regarded as an inevitability? at least the eu could pull the rabbit out of the hat when it comes down to it? >> i think the view, we haven't had this deadline being put further back, which we would have expected based on all the problems we've had in the past. that's at least seen as one kind of positive from all of this. obviously credit default swaps if they do go ahead as planned. that i think is the main key that we can take from this. that system is working and that breathes a sigh of relief for many for the markets going forward. >> one of the things that i must say impresses me anyway, i'm just me, i wonder if the markets are also impressed, is the fact that the private bond holders have agreed to this in effect to a 75% haircut. >> exactly. there was a lot of na sayers, a lot of people kind of opposed to this we've had from various camps saying they wouldn't participate. there were some stories late last night that some bond holders had found some kind of legal loophole to find this from being forced on them. we've seen from the market perspective, greece in the position it's in, it's the realization that the bond holders have come to that they know they're not going to bet back what they've put in. this is kind of the best of a bad bunch of options. >> again, let's look at the broader picture in terms of the european sovereign debt crisis. is the market view now that we may be out of the woods in greece provided everything can be made to stick and now the big issue is portugal or are people perhaps relatively relaxed on portugal now that greece has been resolved? >> i think you've got to say when you say you use the terms out of the woods, you have to be careful of what we're talking about. greece has a whole load of issues it has to get through to get the economy back on track. in terms of the debt crisis we may have moved the next sticking point on. regards to portugal, i think by avoiding a disorderly default we may have staved portugal from further problems. the market would focus there but perhaps with what we have from america coming out later, we may see a few days' rest and hopefully that will keep things positive. >> we'll be watching those spreads on the eurozone debt. thank you very much, indeed. will hedden joining us live from ig in london. andrew? charles, stock markets in asia ending higher. that was what it looked like at the end of the day. as you see, some pretty strong numbers. green arrows across the board. it was lively due to investor optimism about the greek debt swap going through. in australia, a $470 million trade deficit in january. economists have been expecting a surplus of $1.5 billion. exports fell 8.2% in january mainly due to weaker european and the chinese economy. imports were down but only by 1.1%. a bit of corporate news coming to us from australia. quantus closing the day down more than 2.4% after it was revealed that they had broken off talks. the market up by .8% in shanghai. there's a lot of economic news coming out in china. in january accelerating consumer prices gave analysts and the beijing government a bit of a surprise. hope was it was a blip which appears to have been borne out by february's figure. the consumer price index last month actually rose less than predicted. here 3.2% over the same period last year down from 4.5% in january, an upswing that backed a long downward trend advanced by beijing. the administration's stabilizing measure's aimed to keep it within 4%. if the country's producer price index is any indication, china may be looking at even lower inflation going forward. the ppi, that measures the price of goods leaving the factory gate, has been falling since last july. for february it stood at precisely 0%, totally flat, charles. >> now live from london and hong kong, you're watching "world business today." still to come, thousands of workers toil over japan's stricken nuclear plant. its owner, tepco says they're working under safe conditions. they tell cnn there's more to the job than meets the eye. and the tablet that sparked a spinoff economy. how the ipad has become a symbol of u.s. job creation and not just at apple itself. stay with us. dard in anti-aging. roc® retinol. found in roc® retinol correxion deep wrinkle night cream. it's clinically proven to give 10 years back to the look of skin. now for maximum results, the power of roc® retinol is intensified with a serum to create retinol correxion® max. it's clinically shown to be 4x better at smoothing lines and deep wrinkles than professional treatments. new roc® retinol correxion® max. nothing's better than gold. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, buit doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... 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disaster also left hundreds of thousands homeless and sparked a nuclear crisis with radiation leaking from the damaged few can you shi ma plant. it sparked fears over the general safety of nuclear energy so much so that today only two of japan's 53 nuclear plants are still operating. they're due to shut down by the end of april. the director general of the international atomic agency told cnn the crisis at fukushima had many lessons for the other plants. >> major cause of the accident, of course, huge tsunami and earthquake. there are human elements and managerial elements and just for example, in one of the nuclear power plants a tsunami wall of 80 meters is now being constructed. another power plant was not ready for the prolonged power blackout, but now in many nuclear power plants an emergency power supply is prepared. >> a catastrophe on the sale of fukushima means a massive cleanup operation and thousands of workers are still laboring to end what was the worst nuclear disaster in 25 years. tepco which owns the plant says its employees are protected from radiation but one local author is telling a different story. kim lau reports. >> reporter: inside a nuclear disaster. they are the nameless men cleaning up the crippled fukushima plant. this author decided to tell their stories by disguising himself as a fellow contract laborer. he's looking into a small video camera. >> this is the lens. >> reporter: disguised as a wristwatch. for six weeks he captured images of daily life as a day hire. the blown nuclear reactors. driving past tanks holding contaminated water. documenting what he saw and the workers he met in a book. >> reporter: what is the primary message of your book? stop lying he says. what is this lie you're talking about. >> translator: there's no way you won't be radioactively contaminated despite dispostable protective gear, daily decontamination and controls to detect radiation, he says workers will be exposed. >> reporter: tepco tells cnn it has nothing to say about his book. the company maintains worker safety is a high priority and protection from radiation exposure has improved since the early days of the disaster. s suzuki disagrees and says there's a reason why these people are average people and not nuclear people. >> translator: the world is survival of the fittest. there are only weak people. there are no rich or politically powerful people working there. >> reporter: tepco says 3,000 people are at the plant on average every day. 75% of the workers are contracted hires. >> reporter: we know little else about the workers trying to clean up the plant. many say they're worried they'll lose their jobs if they talk. he says he's heard that again and again. a fear that if the workers tell the public what it's like to work inside the plant, they'll be fired. >> reporter: cnn was part of a recent media tour of the plant. tepco hand selected workers to interview. this is a contracted worker. >> reporter: you're a young man, 33 years old. >> translator: this accident happened at my plant, he says. it's my mission to keep working here. >> reporter: that sort of hero narrative is what tepco wants the public to hear, says suzuki, not the real story. >> reporter: why are people working there? >> translator: for the money, he says. they're not worried about the health risks decades down the line. today's bread, tomorrow's meal, rent for next month. that's what they're worried about. they, he says, are the ones cleaning up the world's worst nuclear disaster in 25 years. rebuilding japan coverage continues here on cnn this weekend. we'll take you to live events in japan marking the one year anniversary of the wert quake and tsunami disaster. you can see that on sunday starting at 1:00 in the afternoon in hong kong, 2:00 in tokyo, and 9:00 in the morning in abu dhabi right here on cnn. coming up on "world business today," the skies over sydney have cleared a little today, but for many in new south whales the flood threat is not over. we'll tell you what's in store for the rain drenched state just ahead on cnn. ® essentials™ no calorie sweetener with b vitamins, the first and only one to help support a healthy metabolism. three smart ways to sweeten. same great taste. splenda® essentials™. sksksk me. 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tax. they say it's air bus that's paying the price. >> it's concerning 35 at three thirty and 10 at three eighty. we are very concerned with that. we are worrying that the conflict on the emission tax could be -- could become commercial war and we could be the victim of this commercial war and we are seeing that very clearly through the european union. >> media reports put the value of those suspended orders for those 45 aircraft at around $12 billion. heavy rains have caused widespread flash flooding in eastern australia crippling transport infrastructure. the downpour is affecting parts of sydney as well. some estimates put the total cause of the floods to the australian economy at a billion. let's go to our meteorologist at the international weather center. >> the tremendous rainfall that you talked about there, it's not just forbes, wagawaga, folks out there in sydney, a population of 4.6 million people. take alike at the video coming out of sydney. i believe this was supposed to be video coming out of sydney. there it is. that's the flooding concerns. some of the rivers within the community, we do know the damage left in place. some reports of even a possible tornado just south of sydney on thursday morning in a town of ranwick as winds were gusting upwards of 135 kilometers per hour. let's show you the graphics. i want to show you what's happening and the economical impact based on what's transpired. this region across new south wales, the rainfall over the past seven days. the areas over the north and southern reej gongs. it picked up 200 millimeters. wool and the northern tier, on the minimal end. 2500 meters. large scale cotton industry in the heavier hit areas, about 150 millimeters of rain. the wine industry really in the bull's eye of some of the strongest rains that we've seen since the 1970s says the bureau of meterology in australia. new south wales incredibly strong economy. the economy greater than each of the economies of thailand, the philippines or south africa. these are areas much larger in size and population but when you counter in that sydney is within the state you see where all the numbers come from. even 50% of the film and tv production in australia comes out of new south waes. 40% of finance and insurance and some 39% of their property and business comes in this region where we know some large scale areas have been flooded but fortunately, andrew, that storm system exiting the region. clear skies in the forecast for this weekend across portions of new south wales. >> okay. pedron, thank you very much at the international weather center. you're watching "world business today" live on cnn. still to come, the ipad and the economy. apple's tablet has generated record sales. now it's generating u.s. jobs and small businesses in the united states are riding the wave. plus, thinking of boosting your property portfolio? how about buying your own village? well, there's one for sale in central france and it's going for less than you might think. that and more up next. in hong kong i'm andrew stevens. and i'm charles hodson in london. a warm welcome back to "world business today." let's tell you about our top story on "world business today." it's been confirmed, greece will accept its second international bailout after a clear majority of private creditors accepted a massive writedown on their debt. it has been officially announced that almost 86% of investors signed up to a plan that entails losses of almost 75% on their holdings. now if i'm sounding a bit upbeat it's because the alternative an outright greek default, a disorderly default as it's been being called, could have been far more costly. most of those creditors who did not accept the deal will be forced to accept its terms under collective action clauses, cacs, recently written into greek law. and that will take the total number of participants to nearly 96%. the move saves the government about 100 billion euros but does it constitute a credit event? that has been a big issue over the past few days. the organization in charge of deciding, the isda, will convene in london later on friday. if as is expected the answer is yes, holders on greek debt could be in for the payouts that they've been expecting, estimated to be north of $3 billion. let's see how the european stock markets are digesting that now. trading's been underway for just over 90 minutes. last time i looked we're looking at some good gains for the athens index, but actually it's been a bit of a disappointment in a way. some of this news was out already. it had been rather expected. there had been leaks of information, i suspect, so this is up by .25% hanging in for the ftse and the paris cac karant. all of these markets, andrew, are waiting to see what the u.s. job numbers are, the non-farm payrolls will look like when they come out in five hours' times. >> i think you're right, charles. here in asia the markets did end higher playing a little bit of catchup after they finished off while the rest of the world was moving higher. they are the numbers right there. charles? >> okay. let's have a look at wall street leading american stock indices. they all ended the session higher on thursday. i mentioned there was a bit of information and optimistic noise is emanating from athens. i think there might be an inquiry into the implications of that because it was clearly a little bit naughty, but anyway, investor optimism that greece would finish its debt deal. the dow was .50% higher. the nasdaq was 1.18%, the s&p 500 up by 1%, however, that was then and this is now and the markets look set to open lower when trading gets underway on wall street in just under five hours from now so i suspect that not only was the good news on greece anticipated and put into the price, i suspect that we may be looking at the same sort of thing on the job sector. what do you think, annual drew? andrew? >> yes, there is only one thing keeping investors busy on friday. non-farm payroll figures out in about five hours from now. the number of new jobs added is expected to dip slightly from a month ago. still pretty healthy. survey of economists suggested that 210,000 americans found employment in february. that is 33,000 fewer than january but, still, obviously over 200,000. if that's right the jobless rate will have held steady at 8.3%. you can see from this graph of the jobless rate that would be the first time it's remained steady since last summer. it's still at its lowest level in three years. president obama will be hoping it doesn't head south again as the election season heats up, but the number of americans seeking first-time unemployment benefits did rise slightly last week. well, it is known as the ipad economy. the invention of the world's best selling tablet hasn't just created jobs for apple. an ever increasing demand for apps means they're ramping up the number of staff on their payrolls. as maggie reports, business is booming. >> reporter: everybody in this room is building apps. they're designing apps. >> reporter: when squirrel motion co-founder josh kopel walks through his firm's office in mid town manhattan. >> this is our product group. >> reporter: even he is astounded by his firm's group. >> one year ago we were 30 people, today we are 130 people. i know that about 130 people out there wouldn't be employed were it not for an ipad. >> reporter: call it the company the ipad built. squirrel motion was built four years ago to help publishers build flashy apps for their books and magazines. today it's enjoying wider growth. other new york companies are also adding staff as the ipad and other tablets gain in popularity. downtown at the offices of comicsology, 20 somethings are busy formatting the latest comics for the ipad and other devices. >> when the ipad came out i guess we were probably about six to seven people. now we're about 50. >> reporter: apple, which has been criticized for using cheap overseas labor to manufacture its products, is pointing to these success stories as proof they do contribute to the u.s. economy, a lot. a study commissioned by the company says ipads and its other products have, quote, created or supported more than 500,000 u.s. jobs, far more than the 47,000 people officially on apple's payroll. critics cry foul saying the numbers are impossible to verify. they say some hired in the apple ecosystem would simply have found work elsewhere. and they say the study doesn't change the fact that nearly 3/4 of a million jobs have been created outside of the u.s. how we count the jobs may be up for debate, but tech watchers insist apple is creating some kind of positive chain reaction in the economy. >> the amount of commerce that is being driven by the ipad -- by idevices in general but by the ipad and iphone specifically is probably immeasurably large because it's a tool that empowers innovation and it inspires innovation. you can imagine hundreds of companies that could not have existed before the idea of an app. >> back at scroll motion josh is convinced this will expand. >> we are at the beginning of this moment. this is a moment that is as big to business as the internet, as the microchip, as the personal computer. >> reporter: maggie leak, cnn, new york. in these uncertain times, selling off assets is nothing unusual. france has taken on an unusual approach to solve its economic burden by putting this entire village up for sale. jim visited the hamlet that could be yours for around the same price as a studio apartment in paris. >> reporter: in the cattle country in the heart of france there is the miraculous fountain in the village of corbathy where the catholic faithful have come to take the waters and pray for divine intervention. the local mayor says the miracle they're praying for these days is someone who will buy the place. not so many decades ago corbathy was a bustling community of 200. as in other parts of france, people gradually moved out of such isolated villages attracted by the lure of the big city. left behind left behind is 18th century houses, barns, the village's 13 century chapel which now all have been abandoned. >> reporter: the very last person to live in corbathy was the woman who lived in the cafe here. getting up in years she moved out in the early '70s. since then the property has gone from one even another to another. >> reporter: the last owners finally went bust and abandoned the place in 2008 leaving behind an unpaid mortgage at a local bank which put corbathy up for sale, 19 buildings in all, 22 acres of land, including several large reception areas, a restaurant, horse stalls, tennis courts, and a swimming pool. true, all of it needs some work, but mayor bernard galam was stunned when corbathy went up for a land auction in february and no one would bid the starting price, 4:000. >> it's a catastrophe. when you see useful land like this decaying and left to rot. we have to find someone to develop this. >> reporter: in particular the mayor who can remember going for a swim in the pool would love to see someone come in with enough money to actually make a go of the place as some kind of resort, but he'd be happy if it were just sold to someone who would restore it properly. a local historian shares the mayor's view. >> translator: when you lose your locality, you lose your history and you lose your identity. there is a direct link between your land and who you are. >> reporter: the lawyer for the bank says corbatmy will once again go on the auction block in april or may. he's hopeful this time the village will be sold. the place has gotten so much publicity that more than 100 people have written to inquire about the property. indeed, back in the village even as the mayor was showing us around, a perspective buyer came. not perhaps the kind of owner the locals were hoping for, but still someone who might be able to stop the little orphan village from going further downhill. jim bitterman, corbathy, france. >> fascinating stuff, andrew. i must say as somebody who has been through the process of buying a property which needed a certain amount of work in the countryside, i'm very interested and if i had the money, i would get stuck in there. it's a great part of france. beautiful part of the world. lovely local cattle and nice countryside and very kind of lost and forgotten. you would need to spend quite a lot of money. i would think off the top of my head, i think you'd be looking at 2 million u.s. dollars and to turn all of the potential accommodations into something comfortable. >> even so, $2 million isn't in this day and age a huge amount of money. i think it could be fantastic there. i just wonder how many places there are in europe where you can buy extraordinary barring gains like that basically because people don't have any money anymore. we're going to follow this story because as jim was pointing out, there's a lot of interest now in that village. we'll tell you if it actually does get a new loving owner. don't forget, if you want to comment on any of the stories you see on the show, all you have to do is get in touch with the whole team on our facebook page on facebook.com cnn. i'll start that again. facebook.com/cnn wbt. let us know what you think. and you can also send us your thoughts on twitter. follow us at cnn wbt and check out the tweets from us on the "world business today" team. that is it for this edition of "world business today." i'm charles hodson in london. >> i'm andrew stevens in hong kong. you're watching cnn, the world's news leader. charles and i will be back later this day. we'll be joined by ali velshi. we have the big, big jobs number coming out in less than five hours from now, i think. we'll join you then. meanwhile, ""marketplace middle east"" is up next. [ male announcer ] let's level the playing field. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. this week on "marketplace middle east", back to the negotiating table. iran and the west resume talks while israel signals a warning. and diversifying oil supplies away from iran. south korea signs a multi-billion dollar deal with the uae. returning to the negotiating table, iran and the international community are now taking a step in the diplomatic direction. during the u.n. nuclear watchdog, u.s., russia, china, all agreed to meet with iran over its nuclear program. matthew has the details from vienna. >> reporter: as discussions here at the nuclear watchdog's agency focus on iran, it seems the pressure to curb that country's nuclear program is finally starting to yield results. diplomats say hi level talks between iran and the five permanent members plus germany, the p 5 plus one, are expected to resume shortly, possibly as early as next month after a gap of more than a year. kathryn ashton is the european commission foreign chief and the coordinator of the talks. >> today i have replied to dr. jalili's letter of the 14th of february. on behalf of china, france, germany, the russian federation, the united kingdom and the united states of america i have offered to resume talks with iran. buy hope that we will be able to now pursue with iran constructive engagement with the purpose of addressing the international community's concerns about the nuclear program. we will in the course of the next few days decide the dates and the venue. >> reporter: crucially iran appears to have dropped its conditions for nuclear talks. it also appears to have been softening its handling of nuclear inspectors. iran now says it will allow u.n. teams to visit parchin, a suspected nuclear research facility that had been prevented from inspecting in earlier weeks. they're welcoming the iranian moves which come amid growing economic pressure. they caution the onus will very much be on iran to convince the international community of these talks that their nuclear program is for exclusively peaceful purposes. matthew chance, cnn at the iaea in vienna. iran's announcement follows a stark warning from israel's prime minister who visited the united states this week with strong words over iran's nuclear ambitions. prime minister netanyahu warned the world that it would be far more dangerous not to stop iran. iran says they want nuclear technology only for peaceful purposes. mr. netanyahu said anyone who believes that is denying reality. >> ladies and gentlemen, if it looks like a duck, if it walks like a duck, if it quacks like a duck, then what is it? what is it? that's right. it's a duck, but this duck is a nuclear duck and it's time the world started calling a duck a duck. >> the prime minister also addressed a conference of the american israel public affairs committee in washington. he said he appreciated the support of u.s. president barack obama and tougher sanctions but he said they're not working and they must be the masters of their own fate. >> we're determined to prevent iran from developing nuclear weapons. we leave all options on the table and containment is definitely not an option. the jewish state will not allow those who seek our destruction to possess the means to achieve that goal. a nuclear armed iran must be stopped. >> growing international pressure on iran and doubts on the future supply of oil have led many people to look for alternative sources of energy. china, japan, india are iran's biggest customers. the u.s. has been encouraging them to cut their ties with iran. that pressure is beginning to have an impact. the rush to replace iranian oil is on, and the energy hungry economies in countries of asia are in more of a hurry than most. u.s. and european sanctions on iran aimed at stopping what the u.s. suspects as a nuclear weapons program are hampering tehran's ability to stop selling their key resource. buyers of iranian crude like china and south korea face increasing pressure to diversify their oil imports. it's that pressure that has oil rich nations like the uae offering greater access to their supplies. worth about $2 billion, the state run korean oil corporation, have signed a strategic oil deal with the gulf nation. the project which starts this month includes the development of three oil fields expected to output around 40,000 barrels per day by 2014. new oil deals are being inked all the time. china is iran's number one customer importing around 20% of iran's total exporlts, but in january it signed a new joint venture with saudi arabian giant saudi aramco. locking in another 400,000 barrels a day by 2014. >> there is a thirst for energy and the most cost effective and convenient way to again much that thirst is to provide them with energy and that interdependen interdependence. we need china as much as they need us. >> reporter: iranian sanctions are speeding up a new reality and partnerships. the oil rich nations are looking east to countries eager to secure their oil supplies in the 21st century. india also seems to be yielding to pressure. the refinery and petro chemicals limited says it plans to cut purchases of iranian oil by 44% in the new fiscal year starting april 1st. after years of uncertainty and slumping stocks, the reasonable gone is having a silent rally. this week saw some major gains in the region. let's start off by looking at saudi arabia where the benchmark index jumped to its highest level rising 15% so far in 2012. dubai's main market jumped as much as 30% since the start of the year hitting its highest level in 15 months, in fact, before selling off as you can see at the end there late in the week. finally, kuwait, it gained almost 7% so far in 2012. up next from middle east and well beyond with operations in 11 countries, saudi telecom is broadening its reach. we asked the ceo of its international operations about its future ambition. [ male announcer ] why not talk to one of the 6 million people who've switched to the most highly recommended bed in america? it's not a sealy, a simmons, or a serta. ask me about my tempur-pedic. [ male announcer ] did you know there's a tempur-pedic for everybody? tempur-pedic beds now come in soft, firm, and everything in between. ask me how i can finally sleep all night. [ male announcer ] it's the perfect time to save up to $300 on select mattress sets. tempur-pedic. the most highly recommended bed in america. at meineke i have options... like oil changes starting at $19.95. my money. my choice. my meineke. with 160 million customers worldwide, saudi telecom is a key player in the global telecommunications industry. the company has taken 60% market share in saudi arabia operated in 38 cities throughout the kingdom. in 2011 saudi telecom generated $15 billion in revenue. that places it in the top ten most profitable operators. with a strong hold in 11 countries including lebanon, turkey, india, south africa, the ceo for international operations says the company is looking to expand its reach. >> the saudi telecom started back in 1998 as a corp pra advertised entity. it was privatized in 2002. it went on a journey of growth in the local market, invested an immense amount of capacity in the local market and then expanded globally to be a flag carrier for saudi telecom in asia and the rest of the region and the middle east. it continues also to invest in saudi telecom although 30 million subscribers out of 160 are in saudi arabia, however, these 30 million subscribers still account for the majority of revenues and profit. the portfolio under be the international umbrella is still growing, but the core of the operation and the main attention has been in saudi arabia. but it has been a phenomenal growth story in the past four years as saudi telecom started going internationally. >> it's an emerging market story. you've been in southeast asia and south africa. you're not going west. >> well, if you look at the global gdp growth today, it's growing at a few percentage points here and there. you look at the markets where we operate in asia, everywhere else in the middle east, turkey as well, south africa, they're growing at more than 5%. so this is where the real growth is coming in the global economy. for us and the tell low coe for us and the tell low cocoms industry, we reflect that growth in terms of investing in these economies and helping the economies grow further at the same time growing ourselves into that space. >> in this region most people think of erascon, zane, but you kind of quietly have moved into a very top driving position to go internationally. >> we have had a very low profile, let's put it this way, because our investments were focused on delivering value in the local markets where we operate. so we focus a lot on communicating our brand inside those local markets and dealing with our local partners, etc. and the growth has only happened in the past four years. we focused on large, high growth markets rather than smaller, multiple transactions. so we've done very few transactions but quite large ones and those transactions have enabled us to create this huge leap in the subscriber base and this significant growth over a period of four years. >> the final question, gossen, is what's next would you say? would you do more acquisitions? do you have the capital to move into more high growth markets? >> today the market is effectively a buyer's market. if we were to expand and conduct another transaction this year or next year, it would be a place that compliments our current portfolio, that creates further synergies, brings us more scale, and allows us to use the current capabilities that we have developed with the portfolio today to be able to add further value to the markets we invest in. it could be investing further in the existing portfolio to strengthen our position or it could be investing in new complimentary markets that will allow us to further so he lid did i phi our position in our existing markets. >> gasson of saudi telecom. that's it for this edition of cnn "marketplace middle east." i'm john deftarius. i'm john deftarius. we'll see you next week end. -- captions by vitac -- www.vitac.com

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