13/07/2011 World News Today

This is BBC World News Today with me Tim Willcox, live at Westminster.

Bowing to public and political pressure, Rupert Murdoch's News

Corporation dramatically pulls out of its bid for BSkyB. This a

company needs to sort out the problems at News International and

News of the World. One inquiry, in two parts. David

Cameron announces who will lead the investigation into the phone

hacking scandal amid ferocious criticism of News International in

Parliament. Not be missed conduct, but law-breaking and its links with

the criminal underworld. Also in this programme:

A co-ordinated terrorist attack in Mumbai. Three explosions have

killed at least 17 people. With fish numbers running low, The

EU presents a policy to stop fishermen from throwing their catch

Hello and welcome to Westminster on what has been another day that has

seen a seismic and humiliating reversal for Rupert Murdoch and his

media empire. Bowing to public pressure, and faced with rare

political unity behind an opposition debate here at

Westminster, he has withdrawn News Corporation's bid to take full

control of BSkyB. The man who for decades was courted by the

political establishment, and viewed by many as a kingmaker, now reaping

the whirlwind of public and political opprobrium. On a dramatic,

fast-moving day at Westminster, David Cameron also announced

details about a far-reaching inquiry into recent events,

regulation of the press, and the relationship between politicians

and the Fourth Estate. More on that and the debate in a minute, but

first, this report on a multi- billion pound deal now in tatters

from our business editor. Rupert Murdoch, the news mogul, in

the news for the wrong reasons. Putting on a brave face before one

of the great humiliations of his career, his abandonment to own all

of British broadcasting. Here is Minutes before, this was the

climate. When such a serious cloud hangs over News Corporation, a does

he agree with me that it would be wrong for them to expand their

stake in the British media? And this was the Prime Minister a

little bit later. This is the right decision. This company needs to

sort out the problems at News International, at the News of the

World. That must be the priority pulls up it is the second setback

for Mr Murdoch. Days ago, he closed the News of the

World. 10 days ago, there are allegations that the News of the

World hacked into the phone of Milly Dowler, and that the privacy

of the families of soldiers had been invaded along with other

shocking revelations. This is a victory for people up and down this

country, who had been appalled by the revelations, who have thought

it is beyond belief that Mr Murdoch could expand his stake in the

British media. Rupert Murdoch was keen to increase

his ownership, because it would have given him access to the vast

amounts of cash generated by the UK's television industry. BSkyB's

profits were around �1 billion, which would have been very useful

to News Corporation, at a time when his newspapers had been struggling

to maintain their revenues. As for the other shareholders, they have

also paid a big prize. BSkyB's share price has fallen by 20%,

wiping almost �3 billion from the value of the company. So what has

Rupert Murdoch lost? This was a once-in-a-lifetime opportunity to

acquire 100% of a business which has a very good prospects, a growth

Tribbeck Cherie, it would have increased the company by 25%. --

Mr Murdoch would see himself as the founder of BSkyB. To be told by

politicians who were seen as some as his creatures, that he should

not press ahead, and them to do as they insisted, it is a very

embarrassing setback. It is extremely rare to have an

opposition day motion being supported by all political parties.

That debate has just broken up. There was no vote. There were

stinging criticisms of News International and the tactics it

used in getting stories, in particular from the former Prime

Minister, at Gordon Brown. Quite a rise in this debate not to speak

about myself, but for those who cannot defend themselves. For the

grieving families have a lot more dead, for survivors of the July

seventh bombings, the many victims of crime, and most recently, the

victims of the violation of the rides of a missing and murdered

child. Many innocent men, women and children, who at their darkest hour,

the most abominable moment in their lives, with no one and nowhere to

turn, found their private lives treated as the public property of

News International. That curious intervention by Gordon

Brown. He believes that the medical records of his son, who has cystic

fibrosis, were accessed by News International. That denies the

report. I have been run -- talking to Alastair Campbell about the

relationship of the press and the political establishment. I began by

asking him how important he thought this development was today, the

fact that News Corporation had pulled out of the bed.

opposition, the Labour Party has always had a rough ride. Successive

leaders have been battered by the right-wing press. Going out and

doing this speech to a very influential audience of editors and

executives, I can give them why we did that, and it did help us a

level that playing field. We won the election in 1997. We did not

win the election because the summer backed us. What I do accept, as we

got into government, the relations between parts of government and

News International did get too close. If we had been beholden to

Murdoch, we would have had a very anti-European policy. I think that

what I would accept, in my own defence, I have been arguing about

this for some time. The relationship between politics and

the media isn't a very bad place. We should have done more to change

it. So much amber -- anger, by Gordon Brown. Is there a risk the

result of this is that it would not be good for deep state of the press

or democracy if tighter press regulations come in? There is a

risk. It is important that parliamentarians and the media have

a reasonable, or rational debate about this. I think Gordon made a

very powerful speech. I was with him during the election campaign,

and I know how angry he was by how News International treated him. It

was hate, hate, hate. I hope we can get back to a more reasonable

debate. I do think, however, I can remember as a journalist in the

'80s, most members of the public will think they have been drinking

in the last chance saloon and getting drunk for a very long time.

The idea that the sort of self regulation that the press are one,

where they run it, they have the its senior jobs, I think that will

have to go. However, I accept we have got to be very careful that we

do not then go so far as to have a press there were not be able to do

what decent press can do. The question is, do we have that decent

press? The other thing we will see, once this inquiry gets underway, it

does not stop at the doors of News International.

Alastair Campbell speaking to me a little earlier. Let us speak to the

What did you make of today's development? Is this the biggest

humiliation of Rupert Murdoch's Korea? It probably is. All

political careers end in failure. Mr Murdoch is 80, and is looking

like a tea. He seems to have lost it. -- like a to. A tiny corner of

my brain says, he will be back. There are reports, in some

newspapers, that News International might look to jettison some of

these titles. That would be disastrous, wanted? There is a

paradox in all of this. The Guardian exposed Ron Dearing. --

wrongdoing. The News of the World closes. Our industry is in trouble.

We hope that will not happen. They may be bluffing. Murdoch is a big

card player. What about the inquiry and future of press regulation.

Should be independent? Is there another risk that this country

might end up with a much more controlled, less three press?

is the fear this country. Free press, we just want them to behave.

David Cameron worked in television, and knows the difficulty of Bury

had feared he regulated media. My feeling is that the law should be

enforced. We saw it enforced the other day would be Johanna Yates

murder case. Regulation should be better, with them a souped-up Press

Complaints Commission, it is to follow up editors. We contribute

the money and control the money. In is to be handled by a third party.

In that way, you can have a more believable and falls for industry

regulation. It is not impossible. The world has to be there, maybe it

Michael White of the Guardian. Let us get an idea of the sort of

financial impact. We can go to New York. What have the effects been in

terms of share price and sentiment there? The share price reaction

suggests to us that investors are starting to look beyond this BSkyB

bid. This company has 50 billion US dollars in cash. This has to be

deployed. While this scandal overhang is likely to linger, the

reality is that the company's fundamentals have been driven by

the television networks which are nothing to do with the newspapers.

There is a rumour that News Corporation would jettison the

English newspapers. What do you make of those reports, of class

actions, about the handling and control of News Corporation, so

heavily influenced by the Murdoch family? I do not think investors

are losing sleep about those kinds of losses. The bigger question here

is what does a company to, given the sell-off we have seen in the

past week, and that is why I think the spin-off of the newspaper

business becomes increasingly plausible. Now I think the options

are on the table, and the danger is the company does not react

decisively to prevent the scandal from having collateral consequences

in other business. This is the situation in at

Westminster this evening. The debate has finished. There was no

vote on that. Extremely angry words, in particular from the former Prime

Minister Gordon Brown. Gordon Brown's son who had cystic fibrosis

and was convinced the medical records were access by part of the

News International empire. They deny that. The Sun newspaper

produced the source who they say was behind that story. News

Corporation withdrawing their bid At least 21 people have been killed

and 80 wounded in three separate but simultaneous explosions in the

heart of Mumbai's business district. India's home minister com are P

Chidambaram, has called it a coordinated terrorist attack. The

blasts were several kilometres apart. The first was at the

celebrated jewellery market, Zaveri Bazaar. The second at the Opera

House district and the third in its Dadar. 166 people were killed when

6 -- 10 militants attacked two major hotels, the main railway

stations and the main Jewish centre several years ago. Our

correspondent has been to the location of one of the explosions.

This site of Dadar North is one of three situations where explosions

have gone off in Mumbai. A vehicle reportedly part with explosives was

located here and decorated. This, along with two other blasts, took

place at 7pm local time in highly densely populated areas. Lots of

traffic around peak time. We are hearing of many injuries across the

three blast site. The injured have been taken to local hospitals.

Priority, according to the police and those leaders who have been

coming to these areas saying that the priority is for those to make

sure that the injured are taking care of. It is yet unclear as to

who is behind these attacks, as to what has taken place and whether

there is any correlation to those attacks in 2008 indoor my and those

five years ago in this city. The Afghan President has led

thousands of mourners at the funeral of his half-brother at the

family's home village. Hamid Karzai wept openly during the ceremony and

appealed to his countrymen to stop the violence. Ahmad Wali Karzai was

one of the most powerful figures in the southern Afghanistan. He was

shot dead by his own head of security. From Kabul, Sanjoy

Majumder reports. It was an emotional moment for

President Hamid Karzai. Burying his half-brother a day after a shocking

killing. How Ahmad Wali Karzai was laid to rest here, at his ancestral

village in Kandahar. Afterwards, a plea from the President to those

behind his death. My message for them is, my

countrymen, my brothers. Stop killing your own people. It is easy

to kill and everyone can do it but the real man is the one who can

save people's lives. The funeral drew many. Top members

of the Afghan government, tribesmen and ordinary citizens. All here for

a last glimpse at one of Afghanistan's most powerful men.

Even as the funeral was taking place, a bomb targets at the

governor of Helmand. He escaped unhurt but four policemen were

injured. It is a grim reminder of the tense situation unfolding in

the aftermath of Ahmad Wali Karzai's death. Questions have been

raised on the manner he was killed and you could have carried it out.

Ahmad Wali Karzai was seen as somebody who could come to the

Taliban, especially in this part of the country where they are greatly

influential. He was chosen as a close ally, overlooking serious

allegations against him. Thousands of NATO troops would have left

Afghanistan by the end of the yeah. His killing leaves a power vacuum

it -- a power vacuum in the south and comes at a sensitive time.

Now a look at some of the days other news:

The next head of the European Central Bank has criticised the way

politicians have handled the Eurozone debt crisis, saying

partial and temporary solutions have only increased uncertainty. It

comes as concerns are growing about the danger of the crisis spreading

to Italy. The police in Northern Ireland say

16 officers were injured during last night's violence. There were

26 arrests following trouble in Belfast, Londonderry, Armagh and

County Antrim. Nationalist youths attacked the police at the end of

the busiest day in the Orange Order marching season.

British judges have deferred a decision on whether to allow

WikiLeaks' founder Julian Assange to be extradited to Sweden. He is

wanted there to face allegations of sexual misconduct. The decision

will now be made at a later date. It is one of the most controversial

areas of European policy but now the rules governing fishing in

Europe are set to change. The EU has proposed radical changes

proposing to stop over fishing in European waters.

The mysterious movements of fish remain an enigma...

Back in 1967, it all seemed so simple. Fishermen bringing in their

catch and selling it all at the local market. By the 1970s, this

was history. Today it is clear that the common fisheries policy,

brought in to promote sustainable fishing, is a failure. Its rules

are a major reason why there is so much of this. They call it discard,

hundreds of thousands of perfectly good fish are being thrown back

into the sea, dead. Rick Smith can look back at a 35 year career as a

skipper. For him, discards are a direct result of EU rules.

When there is a ban or a quota on court, for instance, you are still

catching all the other species, and you catch cod. You have no

alternative but to throw it away, dead.

That must be heartbreaking? Yes. That is what the law states.

Discards are the most obvious problem with the common fisheries

policy but there are many other issues as well. The EU commissioner

is today proposing a radical programme of reform, including

banning discards. Our proposal is to change the

system so that all catches are landed and counted against quotas.

A third element is giving an alternative to overfishing.

UK ministers describe the regulations as fundamentally broken,

it is welcome news to them. They know the hard bargain is just

beginning. We have now got a very busy year to

make sure that the commissioner's proposals, many of which we have

been pushing for, will see the light of day. We also need to

reverse the hugely damaging effects of the common fishing policy.

The debate in Europe will be protected, potentially better, with

so much vested national interest, there is no guarantee that any of

the proposed reforms will come into force.

Many conservationists say the basic problem is there are too many

fishing boats going after too few fish. Their logic is there should

be slimmed down European fishing fleet. That is a difficult message

for any politician to deliver to a community like Brixham, so

dependent on the fishing industry. Welcome back to Westminster, where

the the bed -- where the debate which was tabled by the opposition

leader Ed Miliband, saying there was no public confidence in the

News Corporation taking over steep -- BSkyB, had ended. It didn't go

to a vote because News Corp decided to pull out of that bid for BSkyB.

Some very strong, passionate language in the chamber today.

Yes. We heard Gordon Brown talking about how News International had

descended from the gutters into the sewers. That is the problem for

Rupert Murdoch. There is no end in sight to MPs piling into damage the

reps is eight -- the reputation of News International.

What a change in nine days. A lot of party leaders were falling over

themselves to court Rupert Murdoch after those of his emotions --

before those revelations. Yes. David Cameron was saying just

a few days ago that MPs shouldn't confuse the issue of the BSkyB bid

with the issue of phone hacking. And yet, this morning, in the House

of Commons, he was saying they should do that. A massive U-turn.

It hasn't been a good nine days for No. 10, has it?

It hasn't. They look like they have been at the back foot for most of

this crisis since those allegations about Milly Dowler first arose. On

the one hand they point out that David Cameron was outside the

country when they first broke but even so, it has been Ed Miliband

who has made the running on this one.

Thank you. It has been a dramatic day at Westminster. It has also

been a day of a humiliation for Rupert Murdoch. Forced by public

opinion to withdraw that bid for BSkyB. He wanted that takeover

because it is a huge potential money spinner for the company. It

could be resurrected, perhaps, in the next few months, but who knows

quite what will happen? That is it Hello. Most of the United Kingdom

will be dry on Thursday. The cloud will be broken and sunshine will

come through but this isn't the whole story because there is a

notable wet exception and that is in eastern most parts of England,

courtesy of an area of low pressure on the Continent, pushing rain into

coastal Norfolk and Suffolk. It will be an unpleasant day here. The

brain are starting to hack. A cool feel to the weather. Elsewhere, you

can see some of that sunshine on offer. Good sunny spells across the

North of England but Lincolnshire south, you are in the cloudy and

wet zone in parts of Essex and East Kent. The windy his own and cool

where the rain is heavy. Maybe just 12 degrees. In stark contrast we

have the south-west of England and Wales, dry with good sunny spells.

Feeling warmer than it did today. That is the case in north-west

England as well. Northern Ireland will get increasing clout through

the afternoon. Some of that cloud pushing into Scotland. Elsewhere in

Scotland, one or two showers developing but few and far between.