02/07/2012 BBC News at Ten

Tonight at Ten: David Cameron orders a parliamentary inquiry into

Britain's banks. Prompted by the latest scandal at Barclays, the

inquiry will be able examine witnesses under oath but it's not

independent enough for Labour. will be able to start immediately.

It will be accountable to this House. It will get to the truth

quickly so we can make sure this never happens again. However able

or distinguished politicians investigating bankers will not

command the consent of the British people.

We'll be asking what the inquiry is meant to achieve.

Also tonight: An Afghan policeman has shot dead three British

soldiers at a checkpoint in Helmand. The constable accused of the

manslaughter of a newspaper seller starts to give evidence at his

trial. Last month was the wettest June

since records began and there's no sign of a rapid improvement.

And, the women's world number one and top seed, Maria Sharapova, is

out of Wimbledon. In Sportsday: Britain's Mark

Cavendish sprints to victory in today's stage of the Tour de France.

It's the 21st stage win of his Good evening. David Cameron has

ordered a parliamentary inquiry into the banking industry. He said

he wanted to get to the truth of the unfolding banking scandal in

the UK. It's been prompted by the rigging of a key interest rate by

Barclays. The inquiry will have the power to question witnesses under

oath but it won't amount to the public inquiry demanded by Labour.

Our business editor, Robert Peston, has the latest.

After the cloud of scandal descended on the steut with the

interest rate rigging scandal it's the Government trying to lift it by

toughening relevant laws and forcing higher standards on banks.

These will be based on reforms to be proposed by a new parliamentary

committee. This is the right approach because it will be able to

start immediately T will be accountable to this House. And it

will get to the truth quickly so we can make sure this never happens

again. The banking reform committee will consist of MPs and peers who

will take evidence under oath and report by January. It will

investigate the broken culture and declining standards of banks and it

will decide if there needs to be new and greater punishments for

criminal conduct. Labour wants a more independent inquiry along the

lines of Lord Justice Leveson's into media standards. We will

continue to argue for a full and open inquiry, independent of

bankers and independent of politicians. And in a BBC interview

the chairman of the committee said that its remit would be narrow,

much narrower than what Labour wants and narrower even than the

Prime Minister implied. If I may use the phrase a ring fenced job,

not trying to work out how to reform the whole banking industry,

but looking specifically at this one question which is what does the

LIBOR scandal, what does this scandal in the markets where people

have made money by rigging a market say about standards and the

corporate culture of banks? bruised chairman of Royal Bank of

Scotland agrees reforms may be necessary. The public's anger at

some of the things that have happened in the industry is very

obvious. And I think some process and more formal process to address

that anger and address some of the evident failures in the industry is

very sensible. When people talk about the rotten culture of banking,

when they say that standards have declined they're not talking about

the tens of thousands of frontline staff who work in branches like

this one. They're talking about senior executives and highly paid

investment bankers. But it is the frontline staff who in most banks

have been losing their jobs and it's the frontline staff who have

to encounter the public's anger on a daily basis. In recent days that

anger has been directed most at Barclays and its chief executive,

Bob Diamond, following the bank's admission it tried to rig important

interest rates but Barclays board doesn't want to lose Mr Diamond, so

the chairman, Marcus Agius, is taking responsibility by resigning.

Mr Agius said that last week's events have dealt a devastating

blow to Barclays reputation and he added that the buck stops with me

and I must acknowledge responsibility by standing aside.

Many say we are too soft on bankers who break the rules. In Singapore

they weren't soft on this rogue trader. As somebody who went to

prison, how big a deterrent do you think for people in banking the

prospect of serious punishment would be? Anybody working in a

financial institution expects to spend a day in prison, it's not

what it's about. For those people prepared to breach them and breach

them repeatedly, which appears to be what happened at Barclays over a

period, then I think there has to be a serious deterrent. As for Mr

Diamond, Barclays shareholders tell me his survival will depend on what

he says about the interest rate fixing scandal when interrogated by

MPs on Wednesday. At stake will be his reputation, Barclays reputation,

and arguably, confidence in the honesty and integrity of the City

of London. Robert is here, but first we go to

Nick Robinson at Westminster. Nick, just to talk first of all about the

notion of this cross-party inquiry. How likely is that cross-party

going to be achieved? There's a lot of cross but not a lot of party

agreement. In other words, Labour and the Government agree there is a

scandal, they agree there should be an inquiry, they agree on pretty

much nothing else. They don't agree who should chair it, Labour says it

should be a judge. The coalition says it should be an MP who

currently chairs the Treasury Select Committee. They don't agree

on what it should be about. Labour talks of it being like a truth and

reconciliation committee, looking at the problem of banking for

several decades. The Government talks about it, the chairman of the

inquiry talk about it being as we heard, a ring fenced inquiry into

the lessons from the recent LIBOR scandal and then they don't agree

on the timetable either. Labour says says as long as it takes, the

Government says as soon as possible. Now the reason this matters is that

Labour are now determined to defeat the parliamentary motions that

would set up this inquiry. There will be a vote in the House of

Lords tomorrow. There could be another vote in the Lords and a

vote in the Commons, too. Were they to take it to the full extent and

vote against the actual creation of this inquiry, as against merely

proposing a judicial inquiry instead, there is a chance that

Andrew Tyrie, the Conservative MP who is meant to chair this would

refuse to do so. He's told friends that he is determined to lead a

non-part is son inquiry and simply couldn't do that if the House of

Commons couldn't agree on the right way ahead.

Robert, important to underline that this isn't just the only inquiry

that we are talking about, there are other inquiries. What can they

achieve do you think at the end of the day? Yes, it's review day for

banks, because apart from the review that is causing so much

controversy in parliament, the the one Nick has been talking about.

There are two others, Barclays directors are launching an

independent review of where their bank went wrong, how its culture

became so rotten. Now they have launched that to show shareholders

that they're getting to grips with the problem and to protect Bob

Diamond in his job as chief executive. However, if the

independent person who leads this review finds that Bob Diamond is

actually partly responsible for this allegedly rotten culture at

Barclays, well then actually it may have the reverse effect of what

they want, he might be out on his ear. Then for me there is the most

interesting review of all, which has been set up by the Treasury,

led by an FSA official and that is into whether the LIBOR market and

other unregulated London markets should now be much more tightly

regulated. This is hugely significant to the City of London.

Billions and billions of transactions hinge on these markets.

In fact, trillions hinge on them. Huge profits are generated from

them by British banks and some say these markets are a wild west that

have allowed the banks to make too great profits. So here is the

interesting thing, actually maintaining or restoring the

credibility of the City of London by more tightly regulating these

markets could lead to a massive attack on the profits of some of

our biggest institutions. Thank you. An Afghan policeman has shot dead

three British soldiers at a checkpoint in Helmand Province. It

brings to 26 the number of NATO troops who've been killed by their

Afghan colleagues this year. The latest attack happened at a

checkpoint in Nahr-e Saraj. Our defence correspondent Caroline

Wyatt is in Helmand and she sent this report from Lashkar Gar.

This was the scene just a few hours after the killings. The Afghan

police checkpoint where three British soldiers were shot dead on

Sunday. For reasons that still aren't clear,

an Afghan policeman here turned his weapon on the two soldiers from the

Welsh Guards and one from the Royal corps of signals who were there to

help and advise his unit. One Afghan source said there had been

an argument just before the shooting.

For those serving here there was shock and sadness today, but also a

determination to continue their task. The taskforce care deeply

about all our soldiers but we are determined to complete this mission.

We believe in advising and we take all measures to protect our

soldiers. On Sunday, the soldiers were at a

local meeting, similar to one we filmed that same afternoon some 40

kilometres away. It's clear how British forces are having to work

with Afghans and trust them, even though all are armed.

This is the latest in a long line of similar, so-called green on blue

attacks. Of the 28 British troops killed in Afghanistan this year,

seven have died at the hands of members of the Afghan security

forces. In all, 26 NATO military personnel

have been killed by Afghan soldiers or police this year alone.

These latest deaths come despite the extra measures taken this year

to protect British forces from just such attacks. But those working

here say they still have to work side by side with their Afghan

colleagues to help and advise them as NATO begins its gradual

withdrawal. Commanders say such attacks can be

a deliberate Taliban strategy to undermine confidence in the Afghan

security forces and erode the trust that's central to NATO strategy.

They can't derail our strategy. Our strategy is to gradually hand over

full responsibility for the security to the Afghans and that

process will continue and be completed by the end of 2014.

Today, three more names will be added to the memorials here in

Helmand. British soldiers trust in the Afghans they're helping will

again have been shaken and there will be an impact on morale, but

above all, there is sadness at these three deaths, but little time

to mourn. A report by the Inspectorate of

Constabulary says there'll be around 6,000 fewer police officers

on the frontline in three years. The report also says that the

Metropolitan, Lincolnshire, and Devon and Cornwall forces may not

be able to provide an effective service in the future because of

budget cuts. A man is in a serious condition in

hospital after he was shot by a gunman who walked into a

solicitor's office. The incident happened in Devizes in Wiltshire.

Police say armed officers arrested a man and recovered a weapon.

David Cameron has rejected calls for a quick referendum on Britain's

membership of the European Union. The Prime Minister was reporting

back to MPs on last week's European summit in Brussels. But Mr Cameron

said he wasn't opposed to voters having a say in the future. The

former minister Liam Fox has argued that Britain should be prepared to

leave the EU if the terms of membership can't be renegotiated.

James Landale reports. Will he, won't he, what's he going to do?

David Cameron's opened the door to a possible referendum on Britain's

relationship with Europe but many in his party want him to go further

and faster. One of those is his former Defence

Secretary, Liam Fox. He became the most senior Conservative to say

what he himself admitted he could never have said in Government,

Britain should try to bring powers home from Brussels, but if it fails

then the people should have a say on leaving the EU. For my own part,

life outside the EU holds no terrors. There are millions of our

fellow citizens who feel that their view is not listened to. That

changes have been made in our relationship with the European

Union that they've never given David Cameron believes that Britain

should stay a part of the EU club and he ruled out new laws to force

a referendum in the next Parliament. I tonight believe that leaving the

EU would be best for Britain, nor do I believe that voting to

preserve the status quo would be right either. Far from ruling out a

referendum for the future, as a fresh deal in Europe becomes clear,

we should consider how best to get the fresh consent of the British

people. Raib Labour is not ruling out a referendum, but the leader

mocked what it called the Government's yes-no-maybe policy.

A nudge-nudge, wink-wink policy is neither good for the country, nor

will it keep his party quiet. A veto that never was, a referendum

he cannot explain, a party talking to itself.

While the politicians hesitate, others are already making the case.

These campaigners for a referendum out this morning believe that the

pressure is mounting. And not just on the streets of

Manchester. The British people are not stupid,

they understand the position. Give them renegotiation, give them a

referendum. In our referendum it is now inevitable in this country at

some stage, it will be his advantage to be ahead of that kerb

r curve, rather than being dragged into it later on. David Cameron is

walking a fine line worried about backbenchers and UK Independence

Party, the danger is that he is raising expectations he will

struggle to satisfy. Now the Prime Minister is asking

for patience before deciding on a referendum, the question is whether

his party will give him the time. A police constable accused of the

manslaughter of a newspaper seller during the G20 process in London in

2009, has told the jury that he never meant to push the man to the

ground. PC Simon Harwood said he never meant to push Ian Tomlinson

away. We report from Southwark Crown

Court. For two weeks, the prosecution has been putting its

case against PC Simon Harwood. Today the police officer went into

the witness box at the start of the defence. He stands accused of

manslaughter, a charge he denies. This afternoon he relived events

three years ago during the G20 protests. It was in the City of

London he encountered Ian Tomlinson, who was not a protestor, he was

trying to get home. PC Simon Harwood said it appeared to him

that Ian Tomlinson was deliberately obstructing the police lines. He

struck him with the baton. From the side you can see the baton going in.

Then this... He told the jury he pushed him firmly. Ian Tomlinson

suffered internal bleed ngt fall. The officers' barrister, -- the

officer's barrister, asked him about this. He asked did you mean

to push Ian Tomlinson? He said no, he was asked why he did push him

away, he said it was to encourage him to move away. Ian Tomlinson was

helped to his feet, but collapsed a short distance up the road and died.

In the public gallery, listening to the evidence, Ian Tomlinson's widow

and his children. In this case a number of police officers have

testified for the prosecution, the jury was told that the defence was

planning to call other officers close to PC Simon Harwood when he

encountered Ian Tomlinson. PC Simon Harwood, who has served in the Met

Police and the Surrey force had due back in the witness box tomorrow as

the defence case continues. Coming up:

Andy Murray's bid to reach Wimbledon's quarter-finals were

brought it a halt by the weather. -- were brought to a bit of a halt

by the weather. Last month was the wettest June since records began in

1910, according to the Met Office with double the average rainfall.

This year saw the rainiest April on record. The period from April to

June was also the wettest recorded. June was dull with just 119 hours

of sunshine. The unsettled weather is looking set to continue.

It started with the Jubilee, the June weather showing scant respect

for royaltyy or the big occasion. -- royalty. The rain kept coming,

widespread floods from Wales to Sussex, while the Olympic torch

battled stay alight, the humour remained in tact.

When the end of the month it looked scary. This was not a hurricane,

this was Leicester, last week. Hard to believe that drought was the

worry a few months ago. Two dry winters, meant that water shortages

were here with hosepipe bans. Back in February, the Draycott

Reservoir in Warwickshire was only half full. Now k though, all of the

rain means that the water levels are getting back to normal. The

river that feeds the reservoir is back in full flow. You May not be

enjoying the summer wash-out, but for the water industry it is great

news. We are loving it. It is fantastic

all of this rain. We have had a council of years of very, very dry

weather that has created difficulties for us and the water

companies. Although there have been no customer restrictions, the

reservoirs have been very low. Now they are almost full.

Even for the professionals this is extraordinary weather.

Yes, we are breaking rainfall records in many places. We have had

a wet June a lot of wet weather before, all of the signs are that

the unsettled theme is set to continue for a few more weeks.

So why so wet? It is the jetstream that has slipped to the south,

dragging with it the rain, the lightening, even a tornado and

making this June officially the wettest on record.

Unemployment in the eurozone has reached a new high of more than 11%.

The number of people without work rose above 17 .5 million in May.

The highest job lest rate was in Spain and Greece where one in four

people are out of work. The man who looks certain to lead Mexico over

the next five years say he is going to prioritise labour, and tax

reforms. Enrique Pena Nieto is aneed -- ahead with almost all

voting. In Libya, four officials from the

International Criminal Court have been released after being held for

almost a month. Militia had accused them of spying after they visited

Saif al-Islam Gaddafi, the son of the former leader, Colonel Muammar

Gaddafi. The news came as the BBC gathered first - hand evidence of

torture and illegal detention as tribes clashed in the region.

Something in the new Libya have a depressingly familiar feel. In the

western town of Zintan, tribal elders mourn the death of Abdul

Salam Aghuz. Tortured, not by Colonel Muammar Gaddafi's henchmen,

but by a rival tribe. This man says to look, that the

autopsy says he was beaten. His hands and his feet were tied before

they killed him. In this deeply conservative society, some people

want revenge. Where tribal aLiegances are more

powerful than loyalty to the state, more than 100 people have been

killed in the recent fighting here. Some disputes date back over

generations, but negotiators say it will not undermine the stability.

Libyans are united. Libyans will be one government, they will be one

nation, they will be one people. Libya is due to hold its first

nationwide elections at the end of the week, but outside of the main

cities, it is pretty clear who is ruling the streets. This is the

Wild West. Here in Zintan and across Libya, there is a real lack

of central government control. Real authority a-- appears to lie with

the armed militias, the men with guns. You could argue with the

removal of Colonel Muammar Gaddafi, new divisions have emerged and old

rivalries have resumed. In the eastern city of Benghazi,

the interim government is battling on several fronts. There have been

attacks by Islamist extremists and there is a vocal campaign for

political autonomy. The election authorities' offices

were ransacked at the week by protestors demanding greater

representation for Benghazi. They want the vote postponed. Others say

that Libya is ready. A country that has not held

elections for 47 years and in a post conflict situation will not be

ready in a matter of months by some absolute standard, but there is

also a strong desire on the part of Libyan people to have this election.

In the big cities there is indeed a palpable sense of freedom and

openness. Libya has changed since Colonel Muammar Gaddafi's doubtful,

much. There is much uncertainty about the country's future, but no-

one here talks seriously of a return to the past.

The cost to the taxpayer of supporting the Royal Family rose by

0.6% in the past financial year. Buckingham Palace account show the

Queen's official expenditure rose by �200,000 to �33 .3 million and

that the Duke of York's travel costs amounted to �358,000 for

seven business trips. Spain has been welcoming home their

victorious Euro 2012 footballers with a very big party in Madrid

today. The city's residents poured on to

the streets to pay tributes to the heroes who have become the first

team in international footballing history to win three successful

major titles, two European Championships and a World Cup. It

follows the 4-0 victory in last night's Euro 2012 final.

Now the tennis and Maria Sharapova has been knocked out in straight

sets by the German player, Sabine Lisicki. A rain-stop play for Andy

Murray, who is hoping to win a place in the quarter-finals, but

better news for Novak Djokovic. July at Wimbledon, as the rain

swirled asmall tear in the social fabric, the Wimbledon crowd restive

at the delays, not -- not oohing but booing. Andy Murray conceded he

spent much of the last match drenched in nerves. Today against

Marin Cilic, there were flashes of confidence.

COMMENTATOR: God, love that! answer to the charge that he is

always on the defensive... He took the first set 7-5. He swiftly

gained a break in the second. The point made delicately but

emphatically. Andy Murray was on top as the rain

sent both players inside. Before Andy Murray on court number

one, the tournament's biggest upset since the Rafael Nadal exit, the

women's top seed and top grunter, Maria Sharapova, silenced.

Sabine Lisicki, last year's semi- finalist, through in two.

Were the rest of the tournament going so smoothly, around Wimbledon