CNN CNN


 

Return to Transcripts main page

CONNECT THE WORLD

Financial Fears Mess with World Markets; Syria Protests; Champions League Competition; Italy Calls For Emergency G7 Meeting; Where Are the Leaders? Chile's Heroes One Year Later; China Braces For Muifa; Week on the Web; Parting Shots of Killer Plant

Aired August 5, 2011 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BECKY ANDERSON, HOST: Great relief on Wall Street, maybe, but with $2.5 trillion wiped off global markets in a week, is the world facing a financial abyss?

In Italy, Silvio Berlusconi responds to concerns about his country's accounts, calling for an emergency meeting of the world's biggest economies.

Plus, one year on from the disaster which changed their lives forever, we'll find out what's become of the Chilean miners and why this player has got the world of football in a twirl over Twitter.

These stories and more tonight as we connect the world.

Well, the big focus right now, the financial fears messing with world markets and Wall Street's wild ride. A better than expected U.S. jobs report sparked what was an early rally on Friday, but that did not last very long. Stocks took a dive, only to rise once again. Trading finished just moments ago, the Dow ending up with eight days of adjustment.

The S&P, that up .06 -- sorry, down .06 percent. And the NASDAQ -- these markets settling out, of course -- down nearly 1 percent.

French and German stocks, though, fell on Friday. And the FTSE toppled another 2.5 percent. Its weekly decline almost 10 percent, wiping some $250 billion off its market cap, making this its worst performance since October 2008.

And Asian markets also wrapping up deep in the red. The Shanghai Composite plunging more than 2 percent Friday. The other main indices hit even harder, as you can see there.

Well, a lot of us are pretty confused about the cause of the latest market turmoil. There are reports that it was related to unsubstantiated worries that credit agency, Standard & Poor's, would lower the United States' AAA rating after today's Wall Street close. We may still get that. We'll bring it to you if we -- if we do.

But those worries may have contributed to the volatility that we've been seeing and pushed down stocks.

CNN has reached out to S&P asking for comment.

So far, no response.

As I say, if we get one, we'll bring it right to you.

The U.S. president, meantime, says he is confident the U.S. and global economies will snap out of this slump.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: But what I want the American people and our partners around the world to know is this -- we are going to get through this. Things will get better and we're going to get there together.

(END VIDEO CLIP)

ANDERSON: All right. That's the U.S. president.

Here's a stark fact for you, though. All the gains that the Dow has made this year have been lost.

I want to show you how.

Take a look at this graph, if you will. And this is the performance of the Dow since 2008. But I want you to just concentrate on -- let's see if I can bring this up once again -- concentrating on -- let's bring this up again, this thing -- right.

Let's concentrate on here. Yes. This is what's been happening today. This is the beginning of the year.

But if you take a look at what happened in 2009, you can pretty much see that the beginning of the year to today, things have been lost, but the market, of course, is much, much higher than it was in 2009.

This thing isn't working particularly well for me at this point.

Let me bring in Jim Boulden, who is with me tonight, to give you a real sense of what is going on.

We've also got our guest in the wall tonight, Julia, joining us from the markets for you, from BNP, BNP Paribas.

And, Julia, you know, we've seen what the Dow has been up to, closing just higher. The S&P and the NASDAQ falling off just slightly.

What's your sense of what is going on at this point?

JULIA CORONADO, FORMER SENIOR ECONOMIST FOR BARCLAY'S CAPITAL: Wow! What a day we've had -- up 200, down 200 and everywhere in between. I -- I think, first of all, the employment report here in the U.S. didn't answer any questions. It was sort of confirming the slow growth we've been seeing, but it didn't give us much guidance as to where we go from here.

So, you know, I don't think -- you know, there was some relief, initially, that we didn't get a worse reading, since we've had so many negative surprises lately. But then I think some of the focus turned back to the European developments and, you know, the lack of progress there and the -- and the lack of action from the ECB.

ANDERSON: Julia, let me put this to you --

CORONADO: And then, of course --

ANDERSON: Let me put this to you --

CORONADO: -- we've got the developments.

ANDERSON: What's the message here --

CORONADO: Uh-huh?

ANDERSON: -- is this a short-term volatility in what are, let's face it, fairly thin markets?

Or is this a reflection of a real long-term correction, do you think?

CORONADO: Well, you know, I think it's -- it's hard to say definitively. I do think it's more than just summer volatility. I mean you don't get 500 point moves in the Dow Jones Industrial Index very often. In fact, it's -- it's a handful of times in history outside of the financial crisis.

So, you know, I think we do have to take notice. And certainly, I would say, also, a point worth making on the Treasury side, in terms of the bond markets, the volumes have not been thin. The volumes have been very, very active.

So, you know, that is a reflection of views. And I think what people are feeling is there's so many uncertainties out there. The global economy is slowing. It's not just a U.S. story. It's in Europe, U.S., the emerging market story.

So I think there are some concerns and some desire for safety.

ANDERSON: Good luck if you are working in the markets at the moment. If, like the rest of us, you are watching them, well, it's a pretty confusing situation.

Julia, thank you for that.

Spasms in the stock markets and lots of investors trying to figure out what all these signals mean and how they will affect the go -- global economy.

Jim Boulden is with me here for more on what's been a bizarre week --

(LAUGHTER)

ANDERSON: -- that has seen billions, if not -- actually, $2.5 trillion --

JIM BOULDEN, CNN CORRESPONDENT: Yes.

ANDERSON: Stocks off (INAUDIBLE).

BOULDEN: Worldwide now.

ANDERSON: Right. Worldwide.

A number of theories and I want to go through some of these with you.

BOULDEN: OK.

ANDERSON: Let's kick off with the idea, for example, that European sovereign debt is worrying the hell out of investors at the moment.

BOULDEN: Absolutely, because you have two things. You have, number one, is that you need the governments themselves to actually take serious decisions to cut their budget deficits. Italy has a huge debt. They promised to do the things. They promised more things tonight. We have to see the action.

The second is, is that we don't have yet confirmation that you're going to see very big intervenes by the European Central Bank to buy bonds from Italy. And once we get the -- that's happened or happening, then I think we might see some normality back in the market.

ANDERSON: All right.

What about the theory that Wall Street absolutely hates the debt deal that was closed out on Tuesday this week?

BOULDEN: The debt deal created by politicians?

They created the problem. Then they created the solution. And then you have the markets reacting to that. Look, we have to see what this bipartisan committee does. We've seen bipartisan commissions before decide how to cut the budget deficit in the US. Sometimes they suggest raising taxes. And these things just go by the by.

So we have to see what will happen there.

I also think they may not be able to avoid a downgrade in the U.S. in spite of this decision, this -- you know, that they've made.

ANDERSON: And that's something we are watching this hour, of course.

BOULDEN: Yes.

ANDERSON: Because there was talk -- a rumor in the markets --

BOULDEN: Yes.

ANDERSON: -- suggesting that S&P may, in fact, downgrade U.S. debt.

Let's have a listen to what one of the EC commissioners, Olli Rehn, had to say about the roller coaster ride on the global markets this week.

Have a listen to this.

(BEGIN VIDEO CLIP)

OLLI REHN, EU ECONOMIC & MONETARY AFFAIRS COMMISSIONER: I think it's just a general remark, or, rather, an eternal truth that in the markets and especially in the financial markets, people are there to -- to make money. And it's fear and greed that are driving the markets. That's -- that's the logical Minot (ph) (INAUDIBLE) case and Hyman Minsky and many other great economists. And I think they are -- they are right.

In this context, it is very important that we can restore confidence into the markets. And I would encourage everybody now to stay calm and breathe deeply and really look at the economic fundamentals of the countries that have been under pressure recently.

(END VIDEO CLIP)

ANDERSON: Fine. Let's look at the economic fundamentals of the countries that have been under pressure recently. None of them are looking very good.

BOULDEN: No. And it's because there's not a lot of growth in these countries. There's not a lot of growth in the U.S. either. So the worry is a double dip recession there.

But you have to get Italy and Spain growing again and you have to get them to stick to these measures, just like Greece, stick to the measures that they promised to do to -- with these austerity packages, which are going to be extremely painful for people.

ANDERSON: Let's have a listen to what Berlusconi, just in the last hour, said about his country's accounts.

Have a listen to this.

(BEGIN VIDEO CLIP)

SILVIO BERLUSCONI, ITALIAN PRIME MINISTER (through translator): We made a decision with the French president, Sarkozy, to have an early G-7 meeting in a few days, with all the finance ministers.

(END VIDEO CLIP)

ANDERSON: Starting earlier than, perhaps, what they wanted.

BOULDEN: Yes.

ANDERSON: But what Berlusconi is saying at this point is, listen, this isn't just a European problem, this is --

BOULDEN: Yes.

ANDERSON: -- this is a G-8 world economy problem and we need to talk.

Now, many people will put the theory to you and I at this point that the media is fueling this panic on the market.

When Berlusconi says we need an emergency G-8 meeting, then things are pretty -- pretty bad, aren't they?

BOULDEN: Yes. And I would say, you know, just a couple of hours ago, Reuters put a flash on the wires, this idea the ECB might buy bonds from Italy. And the markets went up in the US.

So feeding, fueling, I'm not sure. You know, the -- the markets are canaries like in the coal mine. The markets are telling the politicians that they have to do something. And it's the markets, the electronic trading, the thin volumes, the volatility, it's all out there. It was an extraordinary week.

But we finally got someone to say something, Berlusconi, late on Friday night.

ANDERSON: Basically talking about a G-7 meeting of world leaders, as opposed to G-8, which, of course, includes Russia these days.

We want to have our viewers just listen to the last word tonight, as we talk, from Mohamed El-Erian, who, of course, runs PIMCO, which is the biggest bond trading house in the world. When this man speaks, markets move.

BOULDEN: Yes.

ANDERSON: This is what he said after the sort of volatility during this week's market trading.

Have a listen to this.

(BEGIN VIDEO CLIP)

MOHAMED EL-ERIAN, CEO, PIMCO: The hope is that they've learned that words aren't enough. The markets now are saying we've heard it all before, we want to see action. So if words aren't followed up by action quickly next week -- and also over the weekend, then this brief market respite is not going to last.

(END VIDEO CLIP)

ANDERSON: And he, of course, is alluding to what is going on in the European space, really.

BOULDEN: Yes. I mean if the ECB will buy Italian bonds, they become the backstop. And then I think people might feel a bit more confident about things. But we've said this before and every couple of months we come back to this same problem again.

ANDERSON: $2.5 trillion wiped off the value of global stock markets. Not everybody is buying stocks, of course. There will be some people who are, as it's known, shorting the market, who will be making a lot of money at the moment.

But, you know, I mean, the money doesn't disappear --

BOULDEN: No.

ANDERSON: -- at the end of the day, it's going into somebody's pockets. But let's be frank, things aren't looking good when you consider that investors are running shy of global companies at the present --

BOULDEN: Yes. And it --

ANDERSON: -- shares in global companies.

BOULDEN: And it's the volatility that worries that people, because markets go up and down, as you say, and people make money both ways. People make money when oil goes down, when oil goes up. But the volatility is what's scary. In this day, it's just like Thursday. We were watching the markets and you just had no idea where they were going. And it was so quick, these sort of flash increases and decreases. That's not healthy for anybody.

ANDERSON: Have a good weekend.

BOULDEN: Yes.

ANDERSON: Take a breath.

BOULDEN: Take a holiday.

ANDERSON: Draw a breath.

BOULDEN: A holiday.

ANDERSON: Draw a breath and maybe we'll be back on Monday. I think both you and I have got a holiday or two in the next week.

BOULDEN: Yes.

ANDERSON: My goodness.

All right, Jim Boulden for you this evening with some expert analysis.

Our top story this hour, Wall Street bounces all over the place. World markets take a dive.

And we all wonder what will happen next?

Well, in about 15 minutes, we're going to take a closer look at Europe's debt crisis and how much it is contributing to what is this global financial anxiety.

Other stories also coming up this hour, just ahead, violence rages across the Syrian city of Hama. We're bringing you the very latest since the government's military offensive continues.

Then, in around six minutes time, the football player at the center of the Twitter row -- just one of the biggest stories in the world of sports that's getting a lot of there -- of attention.

Plus, one year ago today, an explosion occurred at a mine in Chile. It did, of course, lead to one of the biggest news stories of the year. But after their ordeal, life for the miners isn't what many of you might have imagined. We're going to fill you in after this.

(COMMERCIAL BREAK)

ANDERSON: Sixteen minutes past 9:00 in London on a Friday evening.

You're watching CONNECT THE WORLD with me, Becky Anderson.

A look at the other stories that we are following for you at this hour.

Thousands of Syrians praise -- braved a government crackdown to rally in the streets on the first day of Ramadan, the first Friday, at least. Human rights activists say at least 15 people were killed, many in the suburbs of Damascus.

As Jonathan Mann now reports, protesters were showing solidarity with city of Hama, where residents are under siege.

(BEGIN VIDEOTAPE)

JONATHAN MANN, CNN CORRESPONDENT (voice-over): Under a steady stream of bombing and shelling from Syrian ground forces, Hama remains a city under siege. More deaths were reported Friday, as more than 100 people were killed just a day earlier, according to human rights groups. And with no power and little food, one resident describes an increasingly desperate situation.

Listen and you can hear the gunfire in the background.

UNIDENTIFIED MALE: Shooting and shelling haven't stopped. Tanks -- tanks are invading. Tanks are now invading the city, the city of Hama. We can't go now. None of us

(INAUDIBLE). I think you can hear the -- the shooting.

MANN: Syrian TV broadcast video Friday of deserted streets in Hama. The government says it's protecting the city from armed gangs.

But the U.S. and many in the international community say the regime is to blame for the mounting death toll.

HILLARY RODHAM CLINTON, SECRETARY OF STATE: We think, to date, the government is responsible for the deaths of more than 2,000 people of all ages.

MANN: Elsewhere, protesters took to the streets in other cities across Syria, on this, the first Friday of the Muslim holy month of Ramadan. Activists say security forces opened fire on demonstrators in the city of Hama, and the capital, Damascus. And despite increasing international pressure, Syria's president, Bashar al-Assad, has given no sign he plans to end the crackdown.

Jonathan Mann reporting.

(END VIDEO TAPE)

ANDERSON: Well, chaos at a food distribution center in Somalia turns deadly. Gunmen opened fire on victims of famine cued up in Mogadishu, killing at least five people. Some witnesses blamed armed gangs, others government soldiers who reportedly tried to steal their food.

Well, the United Nations says famine in the Horn of Africa is the most severe humanitarian crisis in the world today, putting some 12 million lives at risk.

Well, a guilty verdict for five police officers in the violence that took place following Hurricane Katrina. Fatal shootings broke out in Danziger Bridge in New Orleans in September, 2005. And today, a jury convicted the New Orleans officers of opening fire on an unarmed family, killing one member and wounding four others. Another New Orleans man was also shot to death moments after the bridge incident. The five men are to be sentenced in December and could face potential multiple life sentences.

Well, the head of India's ruling party is recovering after surgery. It was successful. And Congress Party president, Sonia Gandhi, is now in intensive care, we're told, according to a party spokesman, at least. The spokesman declined to say what the surgery was for, saying the family had requested privacy.

NASA has launched Mission Juno on a five year journey to Jupiter. Juno will circle the inner ring of the solar system for two years then use the Earth's gravitational pull to fling itself toward the planet. Scientists say Jupiter is key to understanding the solar system because it's believed to be the first planet to come into existence after the formation of the sun.

You are watching CONNECT THE WORLD here on CNN.

Coming up in 60 seconds, the Gunners are handed a tough test -- find out who London team Arsenal drew in the UEFA playoff draw. Pedro Pinto in the house with me after this.

And from battles on the pitch to battles on trading floor -- in around 10 minutes, we'll get you an update on a roller coaster day -- a roller coaster week, in fact, in the world's stock markets.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Well, it's the most lucrative and prestigious club football competition in the world. And earlier today, some of Europe's biggest clubs found out what they need to do to reach the group stages of the UEFA Champion's League.

Pedro Pinto joins me in the studio.

You're looking as if you don't know the answer.

PEDRO PINTO, CNN "WORLD SPORT" ANCHOR: Well, you know, I couldn't find --

(LAUGHTER)

ANDERSON: I hope you do.

PINTO: -- my notes on the way to the studio. I lost them somewhere. So I really have nothing to say.

ANDERSON: Basket.

(LAUGHTER)

ANDERSON: Winners, losers?

PINTO: I'm joking.

Look, today was the draw for the final qualifying round of the Champions League. And this is where some of the big guns join the competition before the group stage. And let me run through the pick of the matches that were drawn earlier today.

And they feature four time winners Bayern Munich. They're taking FC Zurich of Switzerland. That's who they're playing.

Arsenal, they've made the group base 13 straight years. They're going to try to make it 14 by eliminating Udinese. That won't be easy, though. Olympique Lyonnais will face Rubin Kazan of Russia. And Benefica, from my hometown, Becky, of Lisbon, Benefica take on FC Twente of the Netherlands.

Now, these are the top matches of the final qualifying phase before the group round of the Champions League.

ANDERSON: Now, the incentive for getting into the Champions League group stages has never been stronger, has it?

PINTO: It hasn't. And it's -- it's two big reasons.

First of all, it's the prestige. And then you'd be surprised to hear it's all about the cash, as well. Teams, if they make the group phase of the Championships, they will automatically get prize money in the region of $5.6 million. And for a lot of the smaller clubs, that really makes a world of difference.

Then in the group stage, you can get $1 million for every victory. So it really shows you that in order to compete with the top clubs, to get some of the top players, you have to make money from somewhere. You wait for the Champions League as one of those places. And that's not even counting the TV revenue, the gate receipts and the sponsorship.

ANDERSON: Apologies for those of you who aren't football fans, but the season is beginning again and we will do a lot of it in the weeks to come.

Sticking with football, Newcastle's fairly errant player, Joey Barton, has been getting quite a lot of attention online recently. Give us the low down over that.

PINTO: All right. What happened was the following. As you know, more and more sports athletes, sports stars, are joining social networking sites like Twitter. And Joey Barton, earlier this week, was busted, basically, for -- for criticizing club management --

ANDERSON: For grammar mostly.

PINTO: Yes. Toward -- he was -- he criticized club management on Twitter.

ANDERSON: Yes.

PINTO: And as a result, he was placed on the transfer list by Newcastle and he was basically told you can leave on a free transfer.

ANDERSON: He's not the first, is he?

PINTO: He's not the first. And what I -- what I can tell you before I get into examples, because there's a lot of players who have gotten in trouble for using Twitter, is that the club have come out -- Newcastle have come out --

ANDERSON: Yes.

PINTO: -- and said that players can be sued for branching their contract if they criticize Newcastle on Twitter.

ANDERSON: On Twitter.

PINTO: Let me give you some of those other examples --

ANDERSON: All right.

PINTO: -- because they do feature various high profile names, like none other than Wayne Rooney. Of course he's been in trouble before. And Wayne Rooney argued with a fan at one point on Twitter and said, I can put you to sleep in 10 seconds. That we are a threat, I think, Becky.

Ryan Babel was fined around $16,000 by the football association here in England in January, after he posted mockup picture of referee Howard Webb in a Manchester United shirt.

West Ham's Carlton Cole was fined $32,000 by the football association for comments he made on Twitter during England's friendly with Ghana in April.

And Danny Gabbidon, the defender, was charged with improper conduct by the FA for comments he made about fans on Twitter in April.

It's at issue right now because a lot of times players would speak through their official Web sites --

ANDERSON: Sure.

PINTO: -- but they would have to go through a handler or an agent. They're doing it now directly to fans on Twitter, something which the clubs are desperately trying to stop.

ANDERSON: In the words of sort of one syllable and four letters, generally.

PINTO: Exactly. They do have a limit.

(LAUGHTER)

PINTO: But within that limit, there's still --

ANDERSON: With it 140 times.

PINTO: -- saying enough --

ANDERSON: In short words.

PINTO: -- to get in trouble. So that -- that's no good.

ANDERSON: Good stuff.

All right. And your sports headlines, of course, coming up in about an hour's time on "WORLD SPORT" this evening.

Pedro, thank you for that.

This is CONNECT THE WORLD with me, Becky Anderson.

Coming up on the show, getting a grip -- Italy calls for an emergency G-7 meeting to get a handle on the Eurozone's debt crisis and the market turmoil roiling the markets. We're going to bring you expert analysis in five minutes.

And in about 15 minutes from now, they beat the odds and lived. But have the Chilean miners survived in the spotlight?

Chile's heroes one year on.

And about 20 minutes from now, fear and trembling, as China braces for what could be its worst typhoon in years. We're with you at the World Weather Center coming up.

(COMMERCIAL BREAK)

ANDERSON: You're back with CONNECT THE WORLD here on CNN, the world's news leader. Let's get you a check of the headlines this hour.

A dramatic day on Wall Street, where the Dow closed about 60 points higher, but the NASDAQ and the S&P posted losses. World markets fell pretty much across the board from Europe to Asia. The FTSE declined ten percent this week, making London's market its worst performance since October 2008.

An activist group says at least 15 people have been killed across Syria during anti-regime demonstrations on Friday. This video is from YouTube, and while CNN can't confirm what is going on here, it purportedly shows heavy gunfire and a tank moving through a dust cloud in Hama.

A guilty verdict in New Orleans in the violence that took place following Hurricane Katrina. Five police officers have been convicted of the fatal shootings that broke out on the Danziger Bridge in September 2005. Now, the men could face multiple life sentences.

And Typhoon Muifa raked across Okinawa in Japan, and now the storm is taking aim at China. It's weakened a little bit and lost its super typhoon status, but it's still supposed to smack China with fierce winds and heavy rain. Much more on this on this show in about 20 minutes time.

Those are your headlines this hour.

Well, Italy is trying to get on top of what is an escalating European debt crisis. A short time ago, Prime Minister Silvio Berlusconi announced that an emergency G7 meeting will be held within days.

He also stressed that the euro zone's third-biggest economy will make a balanced budget mandatory and will speed up its welfare reforms.

Now, this is part of the reported quid pro quo solution with the European Central Bank. Fast track your reforms and we'll buy your bonds.

Well, the EU has been piling the pressure on Mr. Berlusconi to get Italy's fiscal house in order. Will this be enough to calm the euro zone debt crisis? After all, we've been here before. A quick reminder of recent bailouts that sent shockwaves through the euro zone for you, just in case you'd forgotten the effect of the global markets, of course.

Greece in May of last year, it became the first euro zone member to go cap in hand to the European Union and to the IMF asking for a rescue package. It's been given two. The first one totaled more than $150 billion, the second came in at a whopping $170 billion.

Ireland was next in November of last year. Its rescue package came in at more than $120 billion. There is worry that Dublin may need more support.

In April, Portugal became the third euro zone country to admit it needed aid from the European Union after being unable to fund its debts.

And so it goes on. The executive in charge of the EU's monetary policy is begging the markets to give the euro zone some breathing space.

Olli Rehn rushed back to Brussels from his summer holiday earlier to try to keep the contagion from spreading. He took time out to speak to CNN and declared that Italy and Spain do not, at present at least, need a bailout. This is what he said.

(BEGIN VIDEO CLIP)

OLLI REHN, EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER: Both Italy and Spain have -- they've taken very important decisions on fiscal consolidation and they are on the path to also take very significant decisions in structure reforms.

For instance, in reforming the labor market and opening the economy, which is necessary in order to boost growth and job creation in these countries.

(END VIDEO CLIP)

ANDERSON: Well, our next guest says the current turmoil could be as bad as in 2008, when the financial crisis hit the fan, of course. Greek financial journalist Matina Stevis is with me, now, in our studios in London.

And the last time we met was in Athens, of course, during what was a pretty tumultuous time, just ahead of the second bailout there. Greece almost seems like history, now, when we consider what's going on elsewhere.

MATINA STEVIS, FINANCIAL JOURNALIST: Exactly. We're now seeing the real color -- the true colors of this problem. We've been saying for quite a while now that Greece is the smallest, really -- the first, but the smallest of euro zone's troubles right now.

Really because when we have gotten to the point that we're talking about Italy, having to intervene in Italy through the European Central Bank or through some other means, then that is real trouble.

ANDERSON: Yes, you're talking about the third-biggest economy in Europe, of course. You heard what Berlusconi said tonight.

They are accelerating their austerity program. They are begging the European politicians and monetary leaders to buy what they're doing in order to, effectively, buy their government bonds and prop up their economy at the moment.

Do you think what you're hearing out of the Italian administration is credible at the moment?

STEVIS: I don't think what we're hearing out of any administration across the euro zone is credible at the moment. Greece put to paper -- voted through Parliament an incredibly harsh austerity program. It's fallen behind targets for the last 18 months that we've been following it.

And I'm afraid that Italians and other leaders tried to convince the markets, the ECB or anyone else that they are credible will just have to put their money where their mouth is.

ANDERSON: Italy, Spain, I've even heard talk of Cypress and, now, France getting caught up in the maelstrom, as it were, of contagion. I just want to give our viewers a sense o f what is going on through these Italian bond yields.

And do remember that we -- these yields are, effectively, what governments have to spend as far as the interest rate is concerned, to borrow money in the market.

Spanish and Italian bonds rallied amid hope the European leaders will be able to take the heat out of the debt crisis Friday. Ten-year yields dropped 19 basis points. About 6.3 percent in Spain, four basis points down to 6.16 percent in Italy.

The yield on German bonds touching 2.23 percent and, of course, in Europe, German bonds act a bit like US Treasuries do across the world, they are a sort of measure of where things stand at present.

Checking the bigger picture, German bonds have handed investors an almost four percent return this year, while Italian bonds have lost four and a half percent.

So, I guess the big question is this. What happens next on these financial markets? I mean, my sense is that there is very little volume in the markets, and there's a bit of panic selling going on at the moment.

STEVIS: Absolutely.

ANDERSON: But I'm wondering whether the macro picture is actually, perhaps, slightly worse than I had thought it was.

STEVIS: Right, well, I mean, the symptoms we've been seeing have partly been market corrections. The markets had misjudged the risk to lending to euro zone member states. And some of what we're seeing is correction of that.

Some is certainly panic, and the volatility that we've been observing over the last few days, over the last week, which has been quite dramatic, is a sign of that kind of uncertainty. They don't like uncertainty, and they are now looking to politicians and policy-makers to be reassured.

ANDERSON: And the problem with that, of course -- and let's just remind our viewers, $2.5 trillion wiped off the market capitalization of global stock markets this week. That is nothing to be sniffed at. People will be going home this weekend, certainly those who work in the markets, and saying what happens next week?

You alluded to politicians. And I've been saying this for a very long time, that I don't think they're good enough. I don't think the politicians in Europe are good enough, nor do I think those who've been running the US economy on both sides of the fence are good enough at the moment.

STEVIS: Right.

ANDERSON: I think we deserve more, don't you?

STEVIS: I completely agree. But the problem is, we're seeing this remarkable lack of leadership right at the time when we need it most.

ANDERSON: Yes.

STEVIS: Really, I think we should remind viewers that this problem in the euro zone emerged first in October 2009, when Greece, a new Greek government at the time, revealed that its true deficit size was twice what it had been previously reported.

It's now August 2011. The European leaders had an opportunity to ring sense Greece. Instead, they kicked the can down the road, and I'm getting tired of using that expression, and I apologize to viewers who've been hearing it so much.

But really, it is exactly what they were doing. It got to Ireland, Portugal, and we're now worrying about some of the largest economies in the world. Really, that is a failure on the policy-makers' side, and the markets are not going to put up with it.

ANDERSON: I'll tell you what, viewers. Watch this space. I mean, I hate to say it, but I'm thinking Cypress, the possibility of France, and the double- or the triple-A rated UK debt market is by no means safe, even if it's not in the euro zone -- at present.

I thank you for that.

STEVIS: Thank you.

ANDERSON: Quite wild. Oh, there's my BlackBerry, let's pick that one up.

Let's give you a sense, now, of just where these European leaders are? Where is everybody? Well, the dog days of summer, and world leaders, of course, need to take a break like everybody else.

So, where's Cameron? He's in Tuscany. Or what the UK likes to call Chiantishire.

Nicolas Sarkozy is spending three weeks on the Cote d'Azur. He's on his bike, apparently.

The president, we're told, does plan to discuss the debt crisis and the global market turmoil before the night is out with Germany's chancellor who, I'm told, is walking in the Tyrolean Mountains at the moment. She is certainly in the Alps. Angela Merkel's press office say she is on a hiking holiday.

What about those who are not running country, perhaps trying to do the whole thing? This is Olli Rehn. He's actually cut short his vacation. He's the EU Commissioner for Economic and Monetary Affairs and, as we mentioned, he has rushed back to Brussels.

And just in case you thought everybody was kicking back, this man, Spain's prime minister, Jose Luis Zapatero is actually back in the office in Madrid.

Where in the world are these European politicians? Well, now you know.

Coming up, it was a rare moment when the entire world celebrated an astonishing engineering feat and triumph of the human spirit, but what happened to those rescued Chilean miners once the glare of the spotlight went away? We're going to get an update a year after the accident that trapped them way underground. Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Trapped deep under the earth more than two months, unsure if they'd ever see the light of day or their loved ones ever again.

It's been a year since the mining accident in Chile that left the world riveted by the fate of 33 men. Well, they beat all the odds, battling fear, depression, and mental anguish until their rescuers arrived.

Every single one of them earned a second chance at life. Their families, their country and, indeed, the world considered them heroes.

Yet, once the media spotlight faded, things didn't exactly turn out the way most of those miners expected. For more on that and commemorations today in Italy (sic), let's bring in our Senior Latin American Affairs Editor, Rafael Romo. Rafael?

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: Becky, most of the miners attended a mass in their honor today in Copiapo, the Chilean town located near the mine that collapsed exactly one year ago.

The mass was attended by Chilean president Sebastian Pinera and his wife. After the mass, President Pinera was expected to officially open an exhibit at a regional museum titled "The Rescue that Touched the World."

As part of the ceremony, the president is returning the famous piece of paper where one of the miners scribbled the message, "All 33 of us are OK."

It's been a year of travel, interviews, and some unexpected excitement for the miners, but when it comes to the question of whether they're better off, well, that's a different story.

(BEGIN VIDEOTAPE)

ROMO (voice-over): They spent 69 days in the bowels of the earth, not knowing if they would survive. The story of the 33 Chilean miners who were trapped at a depth of 700 meters and their miraculous rescue made headlines around the world.

This week, four of the miners traveled to Washington, DC, to commemorate the first anniversary of the mine collapse by opening an exhibit in their honor at the Smithsonian Museum.

MARIO SEPULVEDA, RESCUED CHILEAN MINER (through translator): In spite of our painful experience, it is very important to us that what is being exhibited will show the world what happened.

ROMO: Since all 33 of the miners were rescued alive and well last October, they have traveled the world and appeared on multiple TV shows.

They were all invited to Disney World for a week, during which they served as honorary grand marshals of the Main Street, USA Parade.

At home in Chile, one of them says celebrity has not been what he expected.

JORGE GALLEGUILLOS, RESCUED CHILEAN MINER (through translator): They love us more abroad. They congratulate us. They want to touch us and get a blessing from us. That is not the case in Chile. Only a few greet us with affection. Many more say "hi" with envy.

ROMO: Edison Pena, the miner who worked out underground in the darkness, ran the New York Marathon. The Elvis fan was also a guest of honor at Graceland in January.

EDISON PENA, RESCUED CHILEAN MINER: Do that Elvis. Do Elvis.

ROMO: A movie and a book about their story are in the works but, at home, relations with the Chilean government are strained. Thirty-one of the 33 miners filed a lawsuit accusing the agency that oversees mining of failing to ensure safety measures.

CARLOS BARRIOS, RESCUED CHILEAN MINER (through translator): We're not suing the current president. This has been happening for a long time. This happened during the administrations of other presidents. Why didn't they take a closer look?

ROMO: Chilean government officials say they respect the miners' right to sue.

HERNAN DE SOLMINIHAC, CHILEAN MINING MINISTER (through translator): As an Chilean citizen, the miners have the freedom and the right to file any lawsuit they wish. They have chosen to do so, and our judicial authorities are evaluating the suit.

(END VIDEOTAPE)

ROMO: And the miners are seeking the equivalent of US $16 million in damages for the collapse of the mine where they got trapped last year in the Chilean Atacama Desert.

They say their lawsuit isn't about the money, but about raising awareness about the working conditions for miners in their country, which they say have been neglected for a long, long time. Becky?

ANDERSON: Thanks, Rafael.

Well, our next guest was the only print journalist granted special access to the rescue mission as it unfolded last year in Chile. Jonathan Franklin has written the definitive book on the miners called "33 Men," and he joins us, now, from Santiago. Do you think they've got a case?

JONATHAN FRANKLIN, AUTHOR, "33 MEN": I don't know. I think that really the miners have a mixture here of wanting to get some cash, and they also want to improve mining conditions. There is a mixture of both of what they say.

ANDERSON: Yes, and the problem is, that wanting to get some cash was one of the narratives that came up during the rescue, of course. It was what will happen to these guys once the spotlight fades, and will they be taken advantage of or exploited or, indeed, will they exploit the situation? How do you read it?

FRANKLIN: I think it's been extremely difficult for them. It's almost a schizophrenic existence. One day they're in a five-star hotel, then they're back in very basic shantytowns where they grew up.

I think they feel abandoned. They don't feel appreciated. And, as the miners said, they're heroes outside of Chile, but when they're in Chile, they're taking a lot of heat and a lot of criticism for that lawsuit.

ANDERSON: What's their health and mental -- well-being like, Jonathan?

FRANKLIN: Excuse me?

ANDERSON: What -- how are they? What's their health and mental well- being like?

FRANKLIN: I think it's still very difficult for them to understand where they are when I talk to them. And for my book, I interviewed just about all 33.

You get the sense that they're lost, that they don't understand the whole process of tragedy and of grief that they're going through, and they're taking lots of pills, they're heavily medicated.

I think they really need better psychological counseling, and they feel best when they're together as a group. They might have differences, they fight over money sometimes. But when they're together, they're like a band of brothers.

ANDERSON: What's the attitude of the government? After all, we saw the Chilean president, who had a -- certainly had his moment in the sun, let's face it, as he welcomed these men back. And absolutely rightly so, and I interviewed him just after that. I mean, he was absolutely thrilled that these miners had been brought out alive.

But it was -- it was good news for Chile around the world, as well. How do you think the government is treating them? And perhaps should they be doing more?

FRANKLIN: I think it's very difficult for the government, because the government did save them, but they -- the men didn't always go to their psychological sessions, the men have traveled, there's been criticism that when they travel, they don't go to the doctor.

But what's really hurting is they don't have a job. These guys wake up in the morning, they're too scared to be miners, they might be afraid of the dark. They need something to do.

They need something to fill their life. They have these trips, but they spend a lot of time at home. They need somebody to come in and give them some sort of job, maybe motivational speakers, or something symbolic. You really get the sense that they're adrift.

A few of them have gotten jobs selling vegetables on the street. Another one is a boxing promoter. And just a handful are actually making a living off their fame. Most of them say to me, "We got all the fame but none of the fortune."

ANDERSON: What's the legacy of all of this?

FRANKLIN: Excuse me?

ANDERSON: What is the legacy of all of this? Or perhaps what's the - - what's the message in all of this?

FRANKLIN: I think that the message is that every time a miner goes underground, it's just much more dangerous than any of us can imagine. I think we all need to be grateful for miners worldwide, because pretty much everything we use is a result of mining.

And these guys were in the worst of the worst. This mine was notably unsafe, and people knew that for years, so there is some justification to their lawsuit.

But really, mining, even in good conditions, is a pretty horrific experience, and what they went through really should be kind of an ode to worker safety. There should be much more done, not just in Chile, but in other parts. And I think, for a brief moment, the world appreciated the sacrifices of miners.

ANDERSON: Jonathan Franklin, who has written the definitive book on the miners called "33 Men," joining us out of Chile this evening. Jonathan, thank you.

Still to come at 10 to 10:00 in London, hundreds of thousands of people are scrambling to get out of the way of a powerful storm threatening China. We're going to have a live update on the typhoon there and tell you when it is expected to make landfall. That up next.

(COMMERCIAL BREAK)

ANDERSON: Welcome back. This is CONNECT THE WORLD, I'm Becky Anderson. China bracing for what could be the worst typhoon to hit the country in years.

Japan has already felt the wrath of Typhoon Muifa. Now the storm is taking aim at China's east coast. Hundreds of thousands of people there have been evacuated. Millions more are being warned to stay indoors.

For the very latest, let's go to Karen Maginnis, who is at the CNN International Weather Center. Do update us, if you will. What's going on?

KAREN MAGINNIS, CNN METEOROLOGIST: Well, we haven't seen a lot of change take place here over the last few hours, anyway. We got an update regarding what's happening with Muifa.

And here you can see in the forecast, its track is still fairly slowly moving towards the northwest. The warm water temperatures here, nothing to really interfere with its development, so we think there may be a little flourish as far as its development is concerned.

Right now, the wind associated with it at 148 kilometers per hour, with some higher gusts than that. But we think that that could increase over the next 24 hours, and then it begins to enter these cooler waters into the Yellow Sea, the East China Sea.

And as it continues to make its way towards the north, it's going to interact with the landmass, so that tends to shred these apart. There's going to be some interference that takes place here and, as a result, we're going to see it lose a lot of its steam.

But until then, for Shanghai, we're not completely out of the clear, at least the computer models are suggesting that by 48 hours or going into Sunday Shanghai time, we could see this system at least peripherally on that western edge could affect Shanghai.

Now, I'll show you something else in just one second as far as the computer models are concerned. Take a look at this.

Kadena, more than 500 millimeters of rainfall. We had a peak wind gust in the last 36 hours of 156 kilometers per hour. So that lets you know just how powerful and what lies in store for anything in its way.

All right, here's a view. There's Shanghai. And where you see this kind of turquoise color, that is the latest Beijing prediction or prognostication as to where we think this is going to go.

And then, as we look a little bit further towards the east, where you see this purple line, this is the Joint Typhoon Warning Center. Kind of split the difference and yes, it looks like at least some buffeting of Shanghai as far as the wind and the rain is concerned.

Will it make a direct hit? We're not anticipating that, at least for now, but its course has been slow and steady, still in warm water, and we think further north, we'll see that interference as far as the cooler water's concerned.

And along the northern edge, Becky, we've seen a little bit of erosion take place here, but it's going to move out over open water, so it could re-intensify just a little bit. Back to you.

ANDERSON: All right, we'll watch for that. Thank you for that.

Well, it's Friday, so it's time for us just to bring you everything that you might have missed that has gone viral this week, from a whale concert to a post-it note marathon. Yes, Phil Han with the Week that was on the Web.

(BEGIN VIDEOTAPE)

PHIL HAN, CNN DIGITAL PRODUCER: Welcome to another edition of Week on the Web. This is the place where we want to bring you all the best trending topics and social media videos from across the online world over the past seven days.

First up, though, these videos are getting lots of attention around the world, mainly because of their inspirational nature.

(PIANO MUSIC)

HAN (voice-over): Three filmmakers traveled 38,000 miles through 11 countries to create these stunning short films.

The 44-day adventure saw director Rick Mereki, producer Tim White, and actor Andrew Lees take two cameras to the four corners of the world.

The trio captured more than a terabyte of footage for their project, essentially hours upon hours of film.

The three movies are titled "Move," "Learn," and finally, "Eat." The director told me that he had been inundated with thousands and thousands of e-mails over the last 24 hours, and that it's been completely overwhelming.

For the last three days, the videos have been viewed more than a million times.

(MARIACHI MUSIC)

HAN: Another video getting lots of attention this week is of this whale. The Mariachi band happened to be at the aquarium performing at a wedding when they decided that they would give the impromptu concert for the beluga whale. By all accounts, he enjoyed it.

(METAL MUSIC)

HAN: Now, traveling around New York City is never a fun job, but imagine if you could see it from the viewpoint of under a skateboard.

Josh Maready a footage GoPro camera under his board and, after four hours of filming around the city, he came up with an hour and a half of musical footage.

Now, many of us have heard the expression "addicted to technology," but imagine if technology became part of who you are. That's what this woman did, who was dubbed the iPad Head Girl online. That video has almost a million hits.

Ever wonder what 300,000 sheets of post-it notes looks like? Well, now you do, with this amazing creation from Sao Paulo. It took a team of 25 animators five months to create what you see before your eyes.

I'm Phil Han, CNN, London.

(END VIDEOTAPE)

ANDERSON: All right. In tonight's Parting Shots, what a way to go. A bird has paid the ultimate price for its curiosity and has been, well, eaten by a killer plant. Let me explain.

Here it is, poor little thing. A British gardening expert was inspecting his tropical garden in a place called Somerset, which is in southwestern England, when he saw one of his plants had trapped this blue tit.

Now, this is what's known as a pitcher plant, a rather greedy one, it seems. It normally traps insects in a pool of liquid which it then digests.

Well, the larger ones, apparently, do kill small mammals in the wild, but to find a bird inside is pretty unusual. Isn't that remarkable?

I'm going to leave you with that for the weekend. I'm Becky Anderson, your world is connected. Thank you for watching. The world news headlines and "BACKSTORY" after this.

(COMMERCIAL BREAK)

END