04/10/2011 BBC News at Ten

The eurozone debt crisis claims its first bank. France and Belgium move

to rescue the bank amid fear it is about to run out of cash. The

European market falls sharply. The FTSE 100 drops to its lowest for 15

months. I think what is going on in Europe and the European banking

system confirms my view that this is going to do damage to the

British economy. Here in Manchester, on the eve of

David Cameron's main speech to the conference, a spat between two of

his ministers. The Home Secretary, under fire. She wants to change

immigration policy, partly because of one man's pet cat. The illegal

immigrant who cannot be deported because, and I am not making this

up, because he had a pet cat. surprised me. I can't believe

anybody was refused deportation just because they owned a cat. If

it featured in the case, I should be interested to see.

Also, the smile says it all as Amanda Knox flies home from Italy.

She is due to arrive in Seattle in the small hours. For the family of

the murdered British student, Meredith Kercher, the anguish

remains. Every parent's nightmare, to have something so terrible

happened, when basically, she was in the safest place, her bedroom.

And a tale of David and Goliath, a landlady wins the latest round in

her battle against the Premier League over TV rights.

And coming up in sports day at 1030 on the BBC News Channel, how the

cost of changing a manager is on the rise. Football clubs in England

spent �99 million on replacing the The eurozone debt crisis is turning

into a banking crisis. It has claimed its first victim. A large

European Bank, Dexia, is in charge -- talks with France and Belgium

about a rescue amid fears it will run out of cash. Markets around

Europe have fallen sharply with the FTSE 100 closing below 5,000, its

lowest point for 15 months. The Chancellor says the problems in the

eurozone are damaging the British economy.

It started as a sovereign debt crisis, worries that eurozone

crisis -- countries like Greece won't be able to repay debts, and

because of fears about whether banks are strong enough to

wristband losses on loans to the likes of Greece, it is now eight

banking crisis -- withstand losses. The financial sector is getting

thumped. The only solution is to go into default for Greece. The euro

authorities are so shell-shocked, they have serious bunker mentality.

Today, European finance ministers meeting in Luxembourg did a lot of

talking about what is at stake, but not a lot of fixing. Everyone here

today, in what were long discussions, realised time is

running out for the eurozone to resolve the crisis, and we did make

some progress. I think what is going on in Europe and the European

banking system confirms my view that this is going to do damage to

the British economy, it is doing damage at the moment.

The first victim of this renewed banking crisis is a big French and

Belgian bank, Dexia. Its loans are not that enormous, �3.3 billion,

but what has made it so vulnerable is that just like Northern Rock

when it collapsed four years ago, it is heavily dependent on

borrowing from backs -- banks and investors, to the tune of �240

billion. At times of high anxiety in markets, those sorts of

creditors won't lend, and they often want their money bank -- back.

When banks can't borrow, it is curtains. That is why Dexia is

talking to the French and Belgian governments about a rescue package.

In 2008, banks were too frightened to lend to each other. This time,

anxieties are focused on Italian and French banks. In Europe, banks

are putting more and more money overnight back to the ECB. That

means that the rich banks lend to each other. That is not working any

longer, so we are back to the situation we had after the default

of Lehman Brothers. In markets around the world, the word on

everyone's lips, including the powerful head of America's central

bank, is contagion. Market uncertainty about resolution of the

Greek situation, about the broader resolution of the sovereign debt

issues and the European banking issues, has created an enormous

amount of uncertainty and volatility in financial markets.

One of the reasons our recovery has been slower is that we have faced a

lot of financial volatility, and some of that is coming from the

European situation. There is, it seems, a recognition from European

governments that Europe's banks must be strengthened. What is

unclear is whether they will do that fast enough to prevent

financial crisis becoming economic recession.

There are more developments tonight. Rather worrying developments. I

have a straight think -- a statement from credit ratings

agency Moody's. Is significantly downgraded his the Cray rating of

Italy. -- the credit rating. It will make it even harder for Italy

to borrow. That is not the worst of it. The significant impact will be

on Italy's banks. When creditors lend to banks, they also look at

the credit worthiness of the Government behind those banks,

because in a crisis, the governments have to bail out the

banks. If Italy is looking like a more risky place to land, its banks

will also be perceived to be riskier, those banks will find it

harder and more expensive to borrow, and this banking crisis will be

exacerbated. We heard George Osborne saying eurozone finance

ministers recognise there's a big crisis that has to be solved. The

question is now, whether they can move fast enough, because my

heavens, they will have to move fast to put in place a credible

solution. If they don't, we will be back in the kind of appalling

banking conditions that we saw in 2008, that led to that shocking

recession. Thank you.

David Cameron has added his voice to those warning about the state of

the world economy. He will address his party conference in Manchester

tomorrow. The Prime Minister has been talking of a moment of danger?

That is right. When David Cameron speaks here tomorrow, he is

expected to stress once again that he does understand the pressures

around, the intense pressure on household finances in a difficult

economic climate. He is also expected to underline the

importance of strong leadership at such a turbulent time. Earlier, Mr

Cameron was asked to justify some of his spending priorities,

especially that commitment to spend more on international aid. He spoke

to Nick Robinson. The Prime Minister is worried, but

not because of anything happening here at the Tory conference. What

is on his mind is the economic storm brewing in Europe. I put it

to David Cameron as some fear a crisis as bad, if not worse than

the crisis which struck three years ago. I think it is a moment of

danger, I think there are some very serious clouds on the horizon.

Dealing with the eurozone is vital. Then we have to look at the British

economy and say, we have a deficit plant but we need more on the

growth front, and the announcement the Chancellor made yesterday about

getting money directly into small businesses, and helping with the

situations, that will make a big difference but I think there is

more to come. Is your message to voters, consumers, the squeeze,

this is going to go on, year in, year out? This is going to get

tougher. The message is, there has been a squeeze on household income,

I know that. I know what has been happening to the food prices. We

will help you by freezing the council tax and cutting petrol duty.

The government is on your side and wants to help. Tomorrow's Tory

party broadcasts will focus not on help for people at home, but people

abroad. Every six minutes, a child dies of starvation. Yet the primary

-- the priority being given to overseas aid is one which many in

David Cameron's party are now questioning. You will increase

spending by �3 billion on international aid. That could

reverse the cuts in the police budget, it could end the need to

deal with tuition fees. It might have been a proud To Want But isn't

a day the day to say, it isn't now. -- might have been a priority once.

Britain has made some pick priorities, we said we would help

the world's poorest. -- made some big promises. I think you have made

promises, you ought to keep it. Some people in your party worry

that you are the nasty party. Wasn't the problem with the

reputation of your party that you simply didn't get the pressure on

people's lives, when it came to cuts in the 1980s. And what they

are saying to you is, you don't get it now. We do get it. That is why

we cut the petrol duty. A lot of people thought that was something

governments did not do any more. We taxed North Sea oil companies

because oil prices were high. We have frozen the council tax for

another year, because we know that is the key bill that under Labour,

caring labour, went up, doubled over a decade. We have phrased it

since the government came in, we promise we have made and kept.

Prime Minister insists the government's numbers do add up,

that he can help people, and cut the deficit and stimulate growth.

As the economic storm clouds gather, it is a claim that will come under

greater and greater scrutiny. Divisions were exposed between two

cabinet ministers on a key part of the government's immigration policy.

Theresa May promised to get a grip on immigration and change the rules

so that more foreign criminals could be deported. She drew

criticism from a colleague, Kenneth Clarke, the Justice Secretary, for

claiming one man's deportation had been blocked because he owned a pet

cat. Tuesday at conference, and the Tory

faithful are bars, gathering for a big moment in their wick, the Home

Secretary's speech. They know the handbag of her as well contain

words that will make her purr with delight. -- will contain words.

remain of the view that the Human Rights Act will need to go.

wants to change the rules so that illegal immigrants will find it

harder to use their rights to avoid deportation. Mrs May was put in her

kitten heels down. We all know the stories about the Human Rights Act.

The robber who cannot be removed because he has a girlfriend, the

illegal immigrant who cannot be deported because, and I am not

making this up, because he had a pet cat.

This surprised the Justice Secretary. He supports the Human

Rights Act and was ready to bed the Home Secretary had got her facts

wrong. And it was a good bet. Court officials said the immigrant

avoided deportation not because of a cat but because the Home Office

had not followed its rules. That surprised me, I can't believe

anybody avoided deportation just because they owned a cat. Mrs May's

officials suggested a moggy called Maya had been bought by the

immigrant and his girlfriend and the judge said it was evidence of

family life, but the lawyers said it was nothing to do with the

Not allowed to remain in the United Kingdom on the basis he had a cat.

Do you regret using the cat? Ken Clarke and Theresa May are at

the same dinner in there, but behind the smiles and jokes about

cat flaps, there is real division about the government's review of

human rights laws. It doesn't matter much now but it will when

We can talk to Nick Robinson, our political editor. Given the news

tonight, worrying and dramatic, this speech tomorrow is on a high-

level still. This is precisely the news that ministers have feared for

so long in private. They have been talking about their anxiety that

the inability of the eurozone to get ahead of the markets would lead

to this sort of crisis. Now, officially, at the top of

government, they have kept saying, we think the deadline will be met,

we think the eurozone countries will recapitalise their bags and

sought out Greece. But now they are worried, ministers are saying that

they do not think the euro zone can survive in its current form. Some

are talking up the possibility of a double-dip recession in the UK. It

is against that backdrop that the Prime Minister has to come onto the

stage and try, because that is what we are told he will try to do, do

not be too pessimistic, do not think that Britain's best days are

behind us. The rhetoric we are being told about has a kind of

wartime spirit, we can turn the ship around, he will say, talking

about the spirit of Britain, going back to what made Britain great. He

talks about the need to be energised, not paralysed by gloom

and fear. Much harder now, because words here in Manchester matter so

much less than events in the eurozone. We will talk again

tomorrow. Thank you very much. Fiona, that is it from Manchester

tonight, back to you. The American student Amanda Knox

will touch down on American-style within the next few hours after a

dramatic release from an Italian prison last night. She was cleared

along with her former boyfriend of murdering her British flatmate,

Meredith Kercher. Today the Kercher family said they would support an

appeal by Italian prosecutors against the acquittal. David Willis

is in Seattle, where Amanda Knox will arrive shortly. Is there a

sense of anticipation? There certainly is, a large group

of photographers and reporters have gathered here. Amanda Knox enjoys

considerable support in Seattle. Over the years, a loyal band of

supporters and friends have campaigned fairly tirelessly for

her release. It would now seen their efforts have paid off, and

Amanda Knox is due back here, home in Seattle, just over 24 hours

after she was freed by an Italian judge. A quick warning, this report

contains some flash photography. Leaving Italy after almost four

years in prison, Amanda Knox grinned broadly, knowing that she

Back to the tranquil charm of this remote corner of America's Pacific

north-west, where a simple sign hangs in the porch of her father's

home. Amanda Knox enjoys considerable support here, despite

all the unanswered questions. There is no doubt in your mind that

she was not... There never was, never was at all. She... From day

one, when we heard about it, we thought, this is impossible, we

know how a character. She will appear, and we knew it would have

been an impossibility for any of the things, the outrageous language

of the prosecution tells you everything you need to know.

family of Meredith Kercher, the British student who was found with

her throat cut, say they are now back to square one in their attempt

to find out who killed her. Today, a small OK was tied to a railing

outside the house in which Meredith diet, and his sister was asked the

question, could they now forgive Amanda Knox? Until the truth comes

out, we cannot forgive anyone, because no-one has admitted to its,

so until that happens, we still have to wait and see what happens.

One person, Rudy Guede, remains in prison for murder's murder. Italian

prosecutors have said he acted with others. If it was not Amanda Knox

and her former boyfriend, the question is, who was it? The

Italian prosecutor plans to appeal yesterday's verdict and take the

case to the highest court in a land. But by then, Amanda Knox, whose

sensational acquittal led to her being escorted sobbing from the

court, will be back home. So, too, her ex-boyfriend, Raffaele

Amanda Knox was taken from prison in a carefully planned operation to

avoid waiting photographers. She even enjoyed VIP treatment and she

changed planes in London. She avoided the spotlight, maybe

slightly more difficult when she reaches America.

Well, those supporters and friends are determined to do all they can

to ensure Amanda Knox privacy. Apparently, despite the Hollywood

deals and the talk of book deals and so on, Amanda Knox Valley is

nothing more than a return to normality, to rebuild her life, and

there are plans to hold a party for her, but the organisers say it will

be a private affair, no members of the media will be invited.

David Willis in Seattle, thank you. It is 10 years this week since

British forces first became involved in Afghanistan, and more

than five years since they assumed responsibility for Helmand province.

So what has been achieved in that time? Will they plan to withdraw

combat troops by the end of 2014 succeed? For the second of our

reports on 10 years in Afghanistan, Stabilising Afghanistan has cost

Britain 382 lives and billions of The campaign in Helmand is finally

But for years, British troops were Development follows security. This

is a new road in Nahr-e Saraj district. Perhaps it will turn

people against the Taliban. They are still here, though, still able

to intimidate the locals. If the Taliban see us talking to

you, they will be higher this, he says. -- the head us. The Afghan

security forces know that NATO is going, and they are worried.

I cannot ensure security here with a few AK-47s, he says. We should

not live, without NATO we cannot do this. -- my.

Most of the Taliban have now been pushed back from this area, but the

intelligence suggests there are a few dozen insurgents still active,

and that requires a combined force of NATO and Afghan troops numbering

some 2000. That alone tells you why there is such an intense effort now

to get a political solution to this conflict.

Meanwhile, Nahr-e Saraj could transfer from NATO control in 2012,

a sign of success, also of reduced ambitions. It is not about creating

a new democracy, it is not about creating new shopping marls and

knew everything else. It is actually about restoring what the

people had before, and that is where we're at now. What, then, as

the British Army's engaged and in Helmand been for? Yes, there has

been considerable sacrifice, by many, many courageous people, but

actually I would say, you know, look at what we are trying to

achieve, and it is to enhance our own national security. And that is

a price worth paying. NATO accepts that parts of Afghanistan will

remain violent for years to come. The British will maintain a

presence here, although more and A helicopter thought to be carrying

British tourists has crashed into New York's East River. A rescue

operation is under way, and a number of people have been pulled

from the water. The NYPD says three people have been taken to hospital

and one person is reported to have died.

The Welsh government has set out its draft budget with the aim of

stimulating the economy and creating jobs, but both the health

and education departments get cash rises next year. All other

departments will see their budgets cut. Wales political editor Betsan

Tough choices for a Labour government with a shrinking pot of

cash. Yet Labour fought May's election with a pledge to cushion

Wales from cuts. Now they have to deliver. The spending plans I

published today set the tone for this assembly's term for a

responsible government with a credible budget. Public money spent

per head he wears is higher than in England, but what the Welsh

government has to spend is falling sharply. This family in Merthyr

Tydfil are clear what services they want prioritised. Childcare would

be good, I work in the NHS, so I would like a commitment to that.

The Conservatives say Labour has chosen to protect free

prescriptions before more vital services. Well, sadly, in Wales,

people do not have a ring fence health budget. Without a majority

inside the chamber, Labour now have to find support for their spending

plans. They must either strike a deal with former coalition partners

Plaid Cymru or start bargaining with one of the parties they accuse

of imposing cuts from Westminster that are too deep, too fast and too

savage. Within weeks, the coalition government was set up a commission

to consider whether Wales should have more power over its own

funding. It is a process that could mean big changes on the horizon.

It has been a struggle of David and Goliath proportions, a pub landlady

from Portsmouth versus the Premier League. Karen Murphy has won the

latest round in a six-year legal battle to screen live Premier

League matches using a cheaper foreign provider, rather than the

authorised broadcaster, Sky. Sports editor David Bond reports.

They are the poster boys who have helped make the Premier League the

richest in the world, but with the competition's lucrative TV deals

with broadcasters like Sky now be under threat? Unlikely as it might

seem, it is all because of his pub in Portsmouth. Five years ago,

landlady Karen Murphy bought a decoder to access a cheaper Greek

broadcaster. She was fined but Tucker case to the European Court

of Justice, which today finally made its decision. So what did the

ruling say? On buying live matches from abroad, it was clear. National

legislation which prevents the import, sale or use of foreign

decoder cards cannot be justified. On selling rights to individual

countries, it added, a system of exclusive licences is also contrary

to EU competition law. They think they are above the law and can

dictate what I do. I should be able to go out, as with any other

commodity, and choose to buy from where I like. Why should they

dictate that? It is just not right. So what does it mean for the

Premier League's TV deals? Today's ruling is likely to force the

Premier League to review the way it sells its television rights, but

the judgment is far from clear cat, and whatever happens, the League is

confident it can avoid a major drop in its TV income. The Leeds said

the judgment was complicated, adding that it needed time to

consider its implications. -- league. Industry experts agreed it

will not lead to financial disaster for English football. It is by no

means arm again for the Premier League. In my view, it is no more

than a minor inconvenience for the next two years. At the end of this

broadcast deal, I'm sure the Premier League will be able to

structure their rights so that this does not have a financial impact on

them at all. But what does it mean for the creative industry beyond

sport? Programmes like Spokes are sold to countries across Europe to

help recoup production costs. Today's ruling could dramatically

change that market, squeezing smaller film-makers. The big rights

holders, like the English Premier League and the Hollywood studios,

will do European-wide auctions, which will mean that the big guys

were who will be the only ones who can bid for those rights. The final

decision on Karen Nye the's case now rests with the High Court. The