05/08/2011 World News Today

This is World News Today. Political leaders from the European

Commission to the White House say, stay calm, breathe deeply - so how

did the markets react? Libya's government denies reports that one

of Colonel Gaddafi's sons was killed in a NATO air strike.

Enough is enough. The Senegalese rappers making a stand against

their government. NASA's latest space mission blasts

off from Cape Canaveral - the Juno probe starts a five year journey to

Jupiter. And opening night at the Fringe. We

meet the veterans and the young hopefuls at this year's festival in

It has been another 10 stay -- tense day on the world's stock

market with more losses caused by fears about debt and stagnant

growth. Despite better-than- expected jobs figures from the

United States and an appeal from the EU to stay calm, the share

sell-off continued today. President Obama attempted to reassure the

markets by sounding an optimistic note, promising that things will

get better. Here is our Business 24 hours of turmoil on the market.

Share prices plunged yesterday in Germany and the rest of Europe,

affecting the Americas. The contagion spread to Asia, Japan,

Hong Kong, Singapore, and then back to Europe. Almost three per --

three trillion pounds wiped off shares worldwide. The crisis was

triggered by growing fears that Italy and Spain will be unable to

pay off their debts. The fears were stemmed a little in July, but the

fears of investors have risen again. I would encourage everybody to stay

calm. The economic recovery is under way. It is important to

protect that recovery from the financial turbulence.

It might be tempting to see these falls in share prices as having

little relevance to us but they directly affect the value of our

pensions, and they say a good deal about the confidence of countries

to invest and create jobs. And when bank's shares fall, that tells us

something about their ability to borrow. And when the banks have no

money they cannot lend, weakening of the economy further.

Unemployment figures in the US turned out to be marginally less

than feared. We are going to get through this.

Things will get better and we will get there together.

If the problem is the excessive indebtedness of a number of rich

European countries, is there a solution?

What this amounts to is that people will have to accept that

governments will be smaller, will spend less, so there will be less

public sector employment, less jobs in the public sector, and less

expenditure on things like pensions and education.

Barclays were down 17%, Royal Bank of Scotland down 20% and Lloyds

down 24%. The Royal Bank of Scotland announced it was back in

the red by �1.4 billion in part because of losses on its loans to

Greece. It would be stupid not to be

cautious and alert to the significant risks out there. But I

think the probabilities are that the world does not turn overnight

from a place that is slowly recovering to a place that is a

disaster area. Commodities market falls in the

prices of copper, lead, zinc and 10 say that we all risk being burnt in

these markets. The latest news from Italy is that

an emergency meeting of finance ministers is to be held. Our

correspondent is in Rome. Silvio Berlusconi and his Finance

Minister have just been holding a news conference at the Prime

Minister's office. They announced the measures they plan to take as a

result of this disastrous day on world markets, and a particularly

bad day also for laterly because their bond rate spread has risen to

new heights and there is a serious fear that Italy's ability to pay

its huge mountain of debt, a heavy inheritance from the past,

according to Silvio Berlusconi, and he also said that there had been

international speculation against Italy. What the Government has

decided to do is to make it a requirement of Italy's written

constitution that every government must have a balanced budget. There

was also an announcement about liberalisation. It is not clear

what this will mean. And finally, there will carry out labour market

reforms. There has been an attempt by the government to tackle the

crisis and create greater credibility for the action plan.

The austerity budget which initially gave a date of 2014 for

introducing new taxes and new fiscal reforms has been brought

forward to 2013. If this will placate the markets remains to be

seen. Thank you very much.

Hugo Dixon is the editor of Reuters Breakingviews and he joins me now.

David was saying that the Italian government is trying to restore its

credibility. I think the sort of things they are

saying are good. This is very new news. We have not seen the details.

Accelerating the austerity programme is one thing the markets

have wanted. They had this programme for austerity but not

until the next general election. They have brought this forward idea

than that is positive. But we need to see the numbers and what is the

mechanism they are using. And what about the labour reforms?

I think that is another thing that the markets are not so impressed by

because that will be good for Italy but it will not feed through for

many years. I think they want the meat today. How much is tax going

up, how much is expenditure going down? Will it happen fast enough?

The last time they had an austerity programme, which was not really an

austerity programme, they delayed it. Then they managed to pass it.

I suppose that is why there is this emergency meeting of finance

ministers. There is a real danger that Italy will default.

Yes and No. I think that Italy is a rich country, and ultimately the

Italian people have enough money to bail out their own government. It

is too big to be bailed out by the rest of Europe because, why would

the Germans take deeper into their own pockets? But the Italians are

rich enough if they can be properly taxed. In terms of this finance

ministers' meeting, this is partly to do with Italy but it is much

more a Nicolas Sarkozy initiative, he is head of the G7. He loves to

grandstand on the world stage. They will discuss more than just Italy.

When they have that brought discussion, do you think that there

are chances for radical change now? The idea about a common debt?

I still do not think that you will get there. I personally think that

the Germans will not be willing to do that. I doubt that even the

French would be willing to do that. Themselves, I've they opened their

own pockets, they would be tracked down by it. Their own credit rating,

which is important for them, it is only there by a whisker. They could

be downgraded, even the French. When this comes to shove, I do not

think they would be prepared to have that sort of common European

bond. I think they will put a lot of pressure on the Italians and the

Spanish, which are the two monsters, to tighten their own belts. Looking

at the other side of the Atlantic, the jobs figures are not as bad as

some feared in the US. Is there room for stability there now?

think so. 117,000 new jobs which sounds like a lot in one month. I

think the problem was that all of these shenanigans in Congress over

the last few weeks have rattled the market. Thank you very much.

The Libyan government has denied reports that one of Colonel

Gaddafi's sons has been killed in an overnight NATO air strike. It is

the second time this year that Khamis Gaddafi has been reported

killed. It comes as fierce clashes continue between products -- pro-

Gaddafi forces and rebel fighters. Rebels in the west of the country

say they are running dangerously short of ammunition which could

lead to a stalemate. Despite this, rebels say they have taken new

ground and had advanced from the port city of Misrata to the

outskirts of Zliten. Bahrain a mother and her two young

children, victims of a NATO air strike according to the regime. --

by the end. -- burying. In the town centre, it is quiet. It is still

under government control. But the rebels are battling to change that.

For two months, they have been advancing on Zliten. The furthest

they have got is the suburbs. They have needed plenty of help from

above. This is one of the waiters to airstrikes by the RAF, which has

been pounding targets in and around the time, destroying some of the

regime's concealed weapons. At the front line, we find this rebel

Brigade resting during a lull in the fighting. His source told us

that they cannot advance much further because they are

dangerously low on ammunition. This amateur army is running on empty.

The fighters here say they are still relying on home-made,

improvised weapons. This anti-tank gun, bolted to a Pickup truck. They

have captured some arms from Colonel Gaddafi's forces. They took

this anti- aircraft guns about a week ago. But they sometimes run

short on ammunition. At times they have been down to the last box of

bullets. What can I say? Our ammunition

could run out any time now. What I have is maybe enough for one or two

days. The commander took me to a lookout

post to get away if glimpse of Colonel Gaddafi's men. They were

across the sand dunes about two: utters a way, visible with

binoculars and perhaps watching us as well. -- two: utters. --

kilometres. The fighters say that to get there, they need bullets.

Syrian activists say security forces have shot dead at least

seven people during protests near Damascus. They say another

protester was also killed in the city of Homs. Thousands are

reported to have takena to the streets across the country on

Friday demanding that the President resign. That's despite the

continued crackdown in Hama, where state television says troops have

Another Friday, another protest after prayers. This one in a suburb

of Damascus. In dozens of other places in the country, people are

calling for they these it -- the regime to go. Then panic as

shooting broke out. Activists said the security forces opened fire.

State TV said it was gunmen shooting from rooftops and that

police were among the casualties. Here, government forces appear to

be consolidating their grip. State TV pictures so the City firmly

under the control of government troops. Residents continue to so --

to report shelling and shooting in areas. The authorities insist this

is all the work of arm, terrorist gangs. They repeatedly so put --

footage from last Sunday reportedly showing armed protesters. State to

be said that 20 soldiers were killed, but activists say that

President a sad has lost his legitimacy to governor. We continue

to support the Syrians and their efforts.

The Americans are also what tightening economic sanctions. --

already. Measures to punish the energy sector are also expected

soon. More likely to get attention as a shift in position from or

Russia. President Medvedev said that aside would face a difficult

fate if he failed to carry out reforms. There is in no sign yet

that the regime well heed it outside appeals and abandon the

repression. The opposition have dismissed the proposed reforms as

Some of the day's other news - a Ukrainian a judge has ruled that

the former prime minister be taken into custody. The judge accused her

of the repeated violations of court rules, including impeding

A polar bear has killed a British teenager and endured for others in

the far north of Norway. -- endured four others. The bear was then

killed by another member of the Nasser has launched a billion

dollar mission to Jupiter. -- NASA. It will take a Friday years to

reach the planet but it is hoped that it will bring a wealth of new

information. -- five years. It is by far the largest planet in our

solar system and fight -- scientists also believe it may have

been the first to be formed. Knowing about its structure and

composition could help explain more about other planets. I am now

joined by the head of planetary science at the University College

London. Thank you for coming in. Why is it important to send this

probe? Jupiter or is a huge planet and we

must understand its structure and form. The measurements are very

important. We must understand how it formed. There are implications

for why we are all here. It will put the Elf and other planets into

context. -- air. -- Earth. It has a hydrogen and helium. It has brought

things in from the solar nebula when it allegedly formed.

I was intrigued by the claim that the History of Our planet lies on

Jupiter's. Basically that is because it

informed first. -- formed. If they find it accord -- a core, then that

might be important proof. Getting the composition is just one of the

jewels. Because it is so massive and has a lot of the Solar system's

overall mass, there are implications as regards how other

planets formed. The storms there have been going on

for more than three centuries, they believe.

That is correct. Ever since Galileo was looking. We have seen the

Jupiter or for a while - the Great Red Spot, what is underneath? We do

not know. But this will provide underneath the clouds of Jupiter.

The counter rotating zones and belts. Each moving faster than a

Formula One car. Underneath that, we just do not know what is

happening. As we go towards the centre we may find a liquid, sorry,

a metallic hydrogen core. There is so much to find out and

quite a few years to wait. If yes, five years.

Thank you very much. Tension has been growing in Senegal fuelled by

public anger about the rising cost of living. It has formed a protest

movement against the current administration. The movement is led

by two musicians and a journalist. There are encouraging young people

to register to vote ahead of next year's elections. This report from

the car. -- Dakar. My voting card will be the solution to my

suffering, sank this rap collective. -- sang. Along with a journalist

they have decided to create a social movement demanding change

during the power cuts last January. It is a peaceful moment. A

political and secular. -- apolitical. We want to raise

awareness so that people understand that power ultimately comes back to

them. As a voter registration in meals a

clause activists are encouraging more people to sign up. -- kneels

its close. It seems to be walking. More youngsters are registering to

vote. 200 people everyday here. The movement won its first victory in

June. After a day of unprecedented riots the President with De Roux

and attempted change to the constitution. -- withdrew. The

movement has increasingly attracted the attention of the opposition.

Members complain of police harassment. Some have been beaten,

others are rested then released without charges.

Intimidation is a lost cause because these youngsters are

determined. Officials should be walking to address their concerns

because their expectations are not just those of the movement but of

the entire population. President Abdul I lacked is holding

firm for now. He insists he will win a cup tell me. He denies that

he is attempting a handover to his son. -- he insists he will win a

third term. By February 2012 but the movement could be on a position

to make good on its call that While the rest of the world is

struggling with grow with the Edinburgh Fringe Festival gets a

bigger every year. -- struggling The biggest arts festival in the

world. Bigger than ever. Rather daunting for a new comedian.

Jessica possmac a venue is called at the wheel rim. -- Jessica

possmac a venue is called the we room.

I will lose thousands. You sound like my parents. It is a very hard

to justify. At least not to anybody who is not a comedian. But you

simply have to do it. Even the established comedians will

come here to sell a new show. Especially if it is a departure

from the norm. Ruby Wax is looking at the topic of mental illness.

We are sort of on a platter, here! Back when Paul Daniels was just

starting out the Fringe was really a fringe event. Now, three decades

later, he is a devotee. I am in love with the French. It is

the greatest place to be. I was chatting to Dave Cox -- Dave Gorman

earlier on. Everybody is early -- everybody is here.

The Edinburgh Fringe. A university come trade show come holiday camp

for comedians young and old. How Hello. If you have plans this

weekend the weather is looking very mixed. We are expecting heavy rain

tomorrow in northern England, Northern Ireland, and later on in

Scotland. A fine night in between times with a low pressure waiting

in the wings. It will then turn wet early in the morning. The heaviest

rain will be in northern England in the afternoon. Possibly thunder

also. Most of East Anglia and the South East should remain dry but it

will not be as warm as a today. It will not be quite as nice as today

in many parts. A wet start in Northern Ireland. Some will be

heavy showers. Disappointing temperatures for the time of the

year. Central and southern Scotland will get wetter and wetter during