afghan plans to attack libyan forces. libya's new leaders have given gadhafi loyalists to surrender on saturday or face more force. this is the third time mubarak is in court. he faces charges as well as his two sons faces charges on corruption. the storm swept across the country in japan with record rainfall causing land slides and flooding. 56 others are still unaccounted for. a shark killed a body border on the west coast on sunday. the beach has been closed since the attack in australia. it is the first fatal shark attack in australia since february. those are the top stories from cnn. world business today starts now. good morning from london. i'm charles hartson. >> give from hong kong. i'm andrew stevens. the top stories today this monday, the 5th of september. >> markets tumble as the jobs report is released. dominique strauss-kahn is back on french soil. what does the public make of his return? and it's been a bumpy ride for the u.s. economy, but coney island hopes the fortunes are turning a corner. markets in europe are not off to a great start. the indices opened sharply. here is where they stand right now with heavy losses. clearly, we have a number of factors here. we have not only the u.s. jobs report, which showed jobs growth stagnating in august and markets playing catch up with the slide on the dow on friday, but the election setback for angela merkel in her home state. the euro is being hit by that. we also have the u.s. authority's suing several major u.s. banks. that takes us to the european banks which are taking a hit. let's take a look an at those, please. they are being sued by the fhfa on behalf of freddie mac and fannie mae. 17 banks are named in the lawsuits. they are accused of misrepresenting the sub mortgage loans. too slow there. never mind. there were big losses. let's move on to currency. as i said, the yen is at a three-week high against the euro with the euro taking a pounding. 1.4135 following the setback from merkel. the yen/dollar is 76.82. andrew. >> absolutely, charles. that was playing into the big selloff in asia. the selloff is just as grim on the back of the disappointing jobs numbers in the u.s. on friday. now overall financial stocks fell across the major markets. it wasn't just finance, but export. take a look at the nikkei, down by 1.8%. exporters being hit on renewed concerns about the strength of the u.s. consumer. the strong yen that you are mentioning only making things worse. energy stocks getting a hit as oil prices fell. one stock i want to point out in hong kong. there is another reason for this falling down. it has been leaking about 3,000 barrels a week. chinese authorities have had to shut that down. hang seng down 8%. a chinese consortium is down after the construction bank was sold. the financial times said the state administration of foreign exchange is the group that manages the foreign reserves was among the buyers. beijing's involvement comes as chinese bank shares is under pressure. it was three days ago at $8.3 billion which was raised to buy ccb. going back to the chinese by the looks of it. >> let's take a step backwards because the pessimism started on friday. zero u.s. jobs growth. that is causing fear of a u.s. recession. the markets erased last week's gains. all of the indices had all of their gains lost in the last two weeks. the world's largest economy promoted zero job growth. >> charles, how could we forget that. i wasn't around at the time. take a look at this. this chart is revealing. it gives you what is happening. the u.s. says there are 14 million americans without jobs. the jobless rate held steady at 9.1%. that is an appalling number. go back to 2008. you will see how far the jobless number has climbed. this is before the financial crisis. the rate at 5.5%. it spiked pretty much ever since. it spiked in 2009 when the financial crisis had really hit the real economy. that is where we have the big spike. the worry for the obama administration is it is not going down. it has been improving, but the rate is stuck at 9% overthe past few months. there is no clear trend that the number is in any way about to come down. charles. u.s. markets are closed on monday for the holiday. that may be a thankful occasion because it will set for a lower open on tuesday. these are the futures. this is to be taken with a pinch of salt. it does look like the selling at least in terms of u.s. stocks may slow down. it is not just u.s. recession fierce causing concern on the markets, but the ongoing european debt crisis. market analyst maurice cooper joins us from the trading floor with more. good morning. this is actually a tough one for the euro. mrs. merkel's election defeat adds to the whole line of defeat in the region state election this year. >> reporter: fifth successive defeat this year. germany is helping out with the debt crisis. political disarray at home. not great news for germany. >> meanwhile, we have the head of the european central bank who will speak in paris. markets will be watching him closely. >> reporter: absolutely. you have the european central bank deciding on interest rates. everybody is expecting rates to go up. in the u.k., there is talk of quantative easing, too. the economy is so dire. in europe, remember the ecb raised rates twice this year. a lot of people said that is inappropriate given what the u.k. bank of england has done. euro rates are higher than the u.k. and in the states. we have seen a tightening bias. slowly moving to a neutral bias. rates on hold in the euro zone. some are looking for potential easing bias. whatever will be examined closely. >> let's look at the banking story with the fhfa on behalf of freddie mac and fannie mae. suing 17 lenders. $30.4 billion. this is really a shocker for the markets, isn't it? >> reporter: how much worse can it get for the banking industry in we have reiteration that the banks have not been able to borrow money on the bond markets. in september, they need to come back and start borrowing. we have the euro zone crisis. it could go horribly wrong. that will have huge impacts on the european banks. we have litigation with huge numbers bandied about. next week, we have the vicker's report suggesting the retail banking from the investment banking arm. i'm looking for good news and i can't seem too find it. >> louise cooper, thank you for joining us. tough week ahead. thanks very much. andrew. >> those banks where the government is trying to get $196 billion back from them. huge numbers. with his new york legal battle over, dominique strauss-kahn has now returned to france. for a look at what is ahead for him, we are going live to paris in a moment. anyone wh high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol, stop. along with 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[ female announcer ] new from neutrogena naturals. as if japan has not had enough to deal with this year, tropical storm talas is one of the deadliest in quite a while. record rainfall causing land slides and flooding. more than 50 people are unaccounted for. as rescue teams search for the missing on are dead, authorities are warning of more mud slides. we spoke about the damage in japan. >> bodies have been found under a collapsed roof and from inside a collettage. those images reminded us here in japan of the horrible pictures from the march quake and tsunami. homes have been submerged under water. this time, again, local officials are saying the level of the damage turned out to be beyond expectation. which is an express repeatedly used by officials after the march disaster. these remarks are being criticized. >> for the latest on talas and the aftermath, we have an update from the world weather center. i'm surprised at the extent at the damage and destruction brought on by the storm. >> this can happen, charles, with a tropical storm. a lot of people see a tropical storm or hear a tropical storm is coming and they don't expect the calamity we have been seeing in western japan. you expect that from a typhoon or hurricane. you do not need the winds to create problems across japan. we had an incredible amount of rainfall in 48 to 72 hours. three feet of water. of course, you have to remember the topography in japan. de descimated by the water and heavy rainfall. you cannot have three feet of water and not have issues here in japan. the good news here is that our tropical storm that never became a typhoon is not that. it is extra tropical. it has opened up to the north now. look at all of the clear skies here. that is what we need in japan. recovery efforts are going on. the death toll has climbed. unfortunately the missing has climbed as well as far as those numbers. the rescue efforts will be under way with clear skies at this point. look at the winds. respectable tropical storm. not quite a typhoon. it is the flooding and mud slides that caused a problem here. with this tropical storm, we are talking about another tropical storm causing problems across the atlantic into the eastern u.s. i'll see you in a few minutes. >> okay, thank you very much. ivan joining us from the international weather center. charles, we will stay in japan for a moment. it has been nearly six months since an earthquake and tsunami hit japan causing the crisis at the fukushima plant. the fallout continues in more ways than one. >> reporter: a radiation meter is the static as this mother and her two children stay. six months after the fukushima plant. osaka has more hesitation about the air and water. she lives 2 hundreds kilometers away from the crippled plant. if the family lived outdoors a full year, the radiation would be ten times higher than the crisis began, but at a level the government calls safe. she will not take any chances. her children live indoors. if she goes outside, she wears a mask. eating and drinking is a fear. i don't believe the government. there is nothing to make me feel at he's. from the mother here to the streets of tokyo, it is a sentiment that has grown in the last six months. suspicion and distrust of japan and tepco. the owner of the crippled plant. >> i say sometimes we did not know what was happening there. it may have frustrated so many people. >> reporter: the biggest frustration? tepco's slow release of information. they took months that the nuclear core suffered a meltdown. the temporary cooling systems are in place, but fukushima remains a crisis. a full shutdown is not expected until next year. 20 kilometers around the plant is a hazardous zone. 88,000 residents are not sure if they will ever return to their homes. >> we have never hidden information. >> reporter: it took you months longer to admit it was a full meltdown. >> we tried to disclose every information we had as soon as possible. such an effort may be in a sense below people's expectation. >> reporter: and most of the international community's expectation. >> i guess so. >> reporter: as for how long the fukushima plant will be a contaminated zone? >> it will take a long time. >> reporter: many years? >> many years. >> reporter: she is not waiting around for that. she is moving with her children to the southern islands. her husband will stay behind to work. she simply is fed up. i want to go back to the life we had before the quake, she says. i want to go grocery shopping without worrying and have my children play outside. i want it back. it will only come, she says, by moving far, far away. kuhang lah, cnn news. >> it will take years to shut that plant down. we are looking at how japan is coping six months after the quake and tsunami. we will focus on the state of the japanese economy and how the businesses are coping since the disaster and coping with less energy. i'll be live in tokyo on thursday and friday. stay with us for that. world business today returning in a few moments. from cnn london, i'm charles hartson. >> welcome back. >> it is an early monday morning. an hour and a half into the trading day and we are looking at losses of 2% or more. for the dax and the paris and zuri zurich. jobs growth stagnated in august. we are looking at a setback for angela merkel in the elections over the weekend of the she has had a fifth state election defeat. it is looking bad for the euro. that is being hit. the third thing is banking stocks hit. european banks, among the 17 financial companies being sued by the u.s. federal agency. they are accused of misrepresenting the quality of the loans sold. we are looking at losses of more than 6% for rbs which is being sued for $40 billion. by the way, credit suisse is being sued as well. societe general is being sued as well. dreadful morning, andrew. >> you will think bankers will be happy to see stocks not trading today since it is a u.s. holiday. here in asia, banks were being hit slightly indirectly. hsbc was down. heavy losses down across the region because of what was going on with the exporters and big resources companies. not surprising there given the exporters rely on key markets in the u.s. and europe. that is how the numbers ended up. the nikkei is down 1.8%. sony off by 4%. hong kong down by 3%. cnk is down 8% of the close after closing a production rig because of leaks. that dragged the broader market down. speaking of resources, in australia, the biggest mining house in the world is down substantially by 2%. that dragged the broader s&p down as well. all in all, a gloomy day here, charles. >> the u.s. futures, for what it's worth, hardly encouraging. it was worth noting the u.s. markets are closed for the labor day holiday today. we are looking at losses. clearly moderate ones after friday, andrew. let's take a look at the other business stories making headlines today. israel's prime minister is promising to act quickly to ease the cost of living. hundreds of thousands of people filled the streets across the country in record-setting protests over high prices. the benjamin netenyahu says it could boost the crisis. the world's largest car market says it will manufacture the prius will make components in china. it is the first time they will make key parts outside of japan. several major web sites have been hacked. the site for package carrier u.p.s. and the register and the daily telegraph are targets of dns hacking. the hackers were able to take control of the web addresses than the sites. now for a time, the u.p.s. web site showed what appeared to be a hacker's message written in turkish. it had the date september 4th saying it was world hackers day. many people in the northeastern united states have hardly had fun. they are still cleaning up the mess left by hurricane irene. on sunday, president obama toured some of the places hardest hit. susan candiotti reports. >> reporter: cheers for the president as he visited wayne and paterson, new jersey, ravaged by hurricane irene. the president heard from residents who lost their homes and businesses due to record floods here in new jersey. he promised federal help to