:00:11. > :00:17.Tonight at 10: Rupert Murdoch is forced to drop his bid to take full
:00:17. > :00:24.control of BSkyB. News Corporation scraps his plan after crisis talks
:00:24. > :00:28.with top executives in London. MPs were united today in their
:00:28. > :00:33.opposition and said the decision was the right one for Britain.
:00:33. > :00:39.house, all members, all parties, have given voice to the people and
:00:39. > :00:42.said to Rupert Murdoch, abandon your bid. After days of allegations
:00:42. > :00:47.centred on the News of the World, there will now be an inquiry into
:00:47. > :00:50.the press, police and politicians. We now want to get on with the work
:00:50. > :00:55.of the police investigation and the public inquiry I have set up today.
:00:55. > :01:00.We will be assessing the future of the relationship between political
:01:00. > :01:07.parties and the press. Also tonight: A new counter-attack from
:01:07. > :01:14.Gaddafi forces in western Libya. It thwarts rebel hopes of advancing on
:01:14. > :01:20.Tripoli. They are firing into the air, perhaps you can hear it.
:01:20. > :01:22.years after the RAF's worst peacetime accident, the Mull of
:01:22. > :01:26.Kintyre Chinook pilots are vindicated.
:01:26. > :01:31.And unemployment is down, but some key skills are in short supply. A
:01:31. > :01:35.special report. Later in Sportsday, it was a good
:01:35. > :01:40.day for Mark Cavendish. He's won the 11th stage of Le Tour de France.
:01:40. > :01:50.It was his birth -- third stage win of the tour. He is now wearing the
:01:50. > :02:02.
:02:02. > :02:05.Good evening. In the face of a united house of Commons, Rupert
:02:05. > :02:11.Murdoch bowed to intense pressure and dropped his bid to take full
:02:11. > :02:14.control of BSkyB. With News Corporation are engulfed in hacking
:02:14. > :02:19.and corruption allegations, its top executives decided that the deal,
:02:19. > :02:22.which had appeared a near certainty, could no longer proceed. Today, the
:02:22. > :02:25.Prime Minister announced the details of an inquiry into
:02:25. > :02:30.relations between the press, police and politicians. In a moment we
:02:30. > :02:33.will be looking at the role played by Parliament. First, Robert Peston
:02:33. > :02:38.on the day the bid was dropped. There is flash photography in this
:02:38. > :02:42.report. Rupert Murdoch, the great news
:02:42. > :02:46.mogul, in the news for what he would see as the wrong reasons.
:02:46. > :02:52.Putting on a brave face before one of the great humiliations of his
:02:52. > :03:02.career, the abandonment of his attempt to own all of BSkyB. Here
:03:02. > :03:08.
:03:08. > :03:14.is News Corporation's explosive That adverse climate, protests
:03:14. > :03:18.outside Parliament and inside about the deal. And after the deal was
:03:18. > :03:22.off? I think this is the right decision. I have been saying that
:03:22. > :03:25.this company clearly need to sort out the problems that there are at
:03:25. > :03:29.News International, the News of the World, that must be the priority.
:03:29. > :03:33.Not takeovers. So, the right decision, but also the right
:03:33. > :03:37.decision for the country. It's the second massive setback for Robert
:03:37. > :03:41.Murdoch. Just days ago he closed the News of the World because its
:03:41. > :03:46.reputation had been so tarnished by the allegations. Just 10 days ago,
:03:46. > :03:52.the allegations came out that the News of the World instigated the
:03:52. > :04:02.hacking of the phone of Milly Dowler, the phones of the Soham
:04:02. > :04:05.families, and that the phones of 7/7 victims had been infiltrated.
:04:05. > :04:10.Members of the country have been appalled by the allegations of
:04:10. > :04:15.phone hacking. They think that it is beyond belief that, while this
:04:15. > :04:19.was going on, Rupert Murdoch could increase his hold on British media.
:04:19. > :04:25.Rupert Murdoch was keen to increase his stake to 100% because it would
:04:25. > :04:28.give him access to the huge amounts of cash generated by the UK's
:04:28. > :04:32.biggest television business. In the last year, their profits were about
:04:32. > :04:36.�1 billion. That would be useful to the News Corporation at a time when
:04:36. > :04:39.British newspapers have been struggling to maintain revenues. As
:04:39. > :04:45.for BSkyB's other shareholders, they have paid a big prize for the
:04:45. > :04:49.failure of the takeover. BSkyB's share price has fallen about 20%
:04:49. > :04:54.over the last nine days, wiping nearly �3 billion off the value of
:04:54. > :04:59.the company. So, what has Rupert Murdoch lost? This was a once-in-a-
:04:59. > :05:02.lifetime opportunity to acquire 100% of a business which has
:05:02. > :05:06.extraordinarily good prospects, which has a growth trajectory which
:05:06. > :05:11.is well understood. It would have substantially increased the size of
:05:11. > :05:15.the company by an order of magnitude, 20% increase. We may
:05:15. > :05:19.think that Mr Murdoch is big in the UK, but he's much bigger in the US.
:05:19. > :05:23.The worry for him is that US senators are now on his case
:05:23. > :05:28.following the allegation that 9/11 victims and their families phones
:05:28. > :05:38.were hacked. If that is true, if in fact there was any access to any of
:05:38. > :05:39.
:05:40. > :05:46.the victims' records, it would be, in my mind, probably the most
:05:46. > :05:50.invasive and perverse use of a victim's information in the final
:05:50. > :05:55.moments of their lives. A tremendous invasion for their
:05:55. > :06:01.families as well. February 5th, 1989. The dawn of television's new
:06:01. > :06:06.age. Mr Murdoch would see himself, rightly, many would say, as the
:06:06. > :06:13.fine drop -- founder of BSkyB. So, to be told by politicians that he
:06:13. > :06:18.should not press ahead with his plans to own all of Sky, then to do
:06:18. > :06:22.what they suggested, it's a setback as big as any of those he has
:06:22. > :06:26.experienced. Today's announcement came after MPs
:06:26. > :06:29.lined up in a remarkable cross- party effort against the takeover.
:06:29. > :06:33.David Cameron said the decision to drop the bid was the right one. Ed
:06:33. > :06:38.Miliband said it was a victory for people everywhere who had been
:06:38. > :06:41.appalled by the phone hacking scandal. Nick Robinson has this
:06:41. > :06:45.assessment of today's confrontation between Parliament and Rupert
:06:45. > :06:49.Murdoch. Who is more powerful, the men and
:06:49. > :06:54.women we elect to walk the corridors of Westminster or
:06:54. > :06:59.Britain's leading media mogul? For years it was a question MPs dared
:06:59. > :07:05.not ask. But today in the Commons they gave their ransom. The will of
:07:05. > :07:09.Parliament was clear. -- they gave their answer. The will of the
:07:09. > :07:13.public was clear. Now, Britain's most powerful media owner has had
:07:13. > :07:17.to bend to that wilful stopped the Labour leader persuaded every party,
:07:17. > :07:23.even the Conservatives, to back his call on Rupert Murdoch to withdraw
:07:23. > :07:28.the bid for BSkyB. It the event, that happened before the motion was
:07:28. > :07:32.debated. Above all, this is a victory for people. The good,
:07:32. > :07:37.decent people of Britain. Outraged by the betrayal of trust by parts
:07:37. > :07:41.of our newspaper industry. Earlier, the Prime Minister had met the
:07:41. > :07:46.family whose suffering turned the story of hacking from a little
:07:46. > :07:49.local difficulty for Rupert Murdoch in to a national scandal. He told
:07:49. > :07:54.the Dowler family that he would work to ensure that it could never
:07:54. > :07:59.happen again. There is a firestorm, if you like, that is engulfing
:07:59. > :08:03.parts of the Media, part of the police and, indeed, our political
:08:03. > :08:08.system's ability to respond. What we must do in the coming days and
:08:08. > :08:11.weeks is think, above all, of the victims, like the Dowler family,
:08:11. > :08:14.watching this today, and make doubly sure that we get to the
:08:14. > :08:19.bottom of what happened and prosecute those that are guilty.
:08:19. > :08:23.Getting to the bottom of this will be good job of his senior judge. He
:08:24. > :08:28.said today that his inquiry would focus on one simple question. Who
:08:28. > :08:31.guards the guardians? Starting now he will look into how to clear up
:08:31. > :08:35.the secret of relationships between the press, politicians and the
:08:35. > :08:40.police. Then, once prosecutions have been brought, he will examine
:08:40. > :08:44.why phone hacking took so long to expose. With the bid off and an
:08:44. > :08:49.inquiry on, David Cameron faced another big question. Why had he
:08:49. > :08:53.believed Andy Coulson, his former Director of Communications, he was
:08:53. > :08:57.arrested last week in connection with allegations of hacking?
:08:57. > :09:01.gave those self-same assurances to the police, a select committee of
:09:01. > :09:03.this house and under oath to a court of law. If it turns out he
:09:03. > :09:08.lied, it will not just be that he shouldn't have been in government,
:09:08. > :09:14.it will be that he should be prosecuted. Not good enough,
:09:14. > :09:19.replied the Labour leader. He just doesn't get it. I say this to the
:09:19. > :09:24.Prime Minister. He was warned by the Deputy Prime Minister about
:09:24. > :09:28.hiring Andy Coulson. He was warned by Lord Ashdown about hiring Andy
:09:28. > :09:34.Coulson. He should apologise for the catastrophic error of judgement
:09:34. > :09:40.he made in hiring Andy Coulson. From now on, we are promised, Prime
:09:40. > :09:43.Ministers will be opened in their relationship with the Murdochs, the
:09:43. > :09:48.press barons and their lieutenants. We will be told when they meet.
:09:48. > :09:51.They can expect fewer cases. In a rare appearance in the Commons,
:09:51. > :09:55.Gordon Brown insisted he had nothing to apologise for.
:09:55. > :09:58.relationship between use International and the Labour
:09:58. > :10:02.administration that I lead, in all of these years, from start to
:10:02. > :10:06.finish, was neither cosy or comfortable. He said when he was
:10:06. > :10:10.prime minister he had wanted a public inquiry. But... It was
:10:10. > :10:15.opposed by the police, by the Home Office, by the Civil Service. And
:10:15. > :10:20.it was not supported by the Select Committee of the day. Today, MPs
:10:20. > :10:25.congratulated themselves on standing up to the Murdochs. Soon,
:10:25. > :10:29.a judge may be asking them, on oath, why they did not do it sooner.
:10:29. > :10:33.Nick Robinson, who will have more from Westminster and a moment.
:10:33. > :10:37.Robert Peston is in the studio. It's been such a dramatic day, is
:10:37. > :10:41.this as bad as it gets forward that Murdoch? It's a fair bet it is
:10:41. > :10:46.going to get worse. The police have let it be known that so far they
:10:46. > :10:51.have only contacted a tiny number of the thousands of individuals
:10:51. > :10:55.whose phones may have been hacked on behalf of the News of the World,
:10:55. > :11:00.whose private details may have been illicitly obtained. As those
:11:00. > :11:05.individuals are contacted, bad news as far as News International and
:11:05. > :11:10.the News of the World will seek out. Chances are, it will damage the
:11:10. > :11:14.reputation of their company even more. If it alarms customers, puts
:11:14. > :11:18.of advertisers, it will damage the finances of the business. Not just
:11:18. > :11:24.here, but around the world. Because this is news that is reverberating
:11:24. > :11:29.around the world. It is because of that potential damage to the News
:11:29. > :11:34.Corporation group around the world that all of the talking the media
:11:34. > :11:38.industry is off Rupert Murdoch disposing of his UK newspapers. You
:11:38. > :11:43.would have thought it was completely unthinkable to have the
:11:43. > :11:46.UK without newspapers owned by Rupert Murdoch. But it was
:11:46. > :11:50.unthinkable that he would close the News of the World. Just possibly,
:11:50. > :11:55.the idea that Rupert Murdoch could withdraw from the UK in terms of
:11:55. > :12:02.newspapers is something we should take seriously. Mecca, what is your
:12:02. > :12:05.assessment of what today means? is the third great crisis of trust,
:12:05. > :12:11.after the banks and MP expenses, now we have the crisis of trust in
:12:11. > :12:13.the press. Like them, it has built bit by bit, layer by layer. For a
:12:13. > :12:17.long time, people ignored it because they saw that nothing
:12:17. > :12:22.appeared to be moving. Now, this week, it has become an avalanche
:12:22. > :12:26.that has swept away not just the News of the World, not just that
:12:26. > :12:30.bid for BSkyB, but also David Cameron's relationship with the
:12:30. > :12:34.Murdoch empire, his belief that there was no need for an inquiry,
:12:34. > :12:38.and it is now heading for a whole network of relationships between
:12:38. > :12:48.politicians on all sides, the press, and the police. This avalanche is
:12:48. > :12:51.
:12:51. > :12:54.still moving. No one knows who or Other news, and in Libya five
:12:54. > :12:58.months of civil war sparked by the Arab uprisings have so far failed
:12:58. > :13:02.to topple Colonel Gaddafi. In fact, his forces had begun a counter-
:13:02. > :13:06.attack in Western Lydia Against rebels hoping to advance from there
:13:06. > :13:11.on to the capital, Tripoli. The fighting in the Nafusa Mountains
:13:11. > :13:21.has seen the rebel movement news and then regain ground around the
:13:21. > :13:22.
:13:22. > :13:26.Six in the morning in the Nafusa mountains, spies have warned of a
:13:26. > :13:32.build-up of pro-Gaddafi forces nearby, but these rebels are not
:13:32. > :13:35.trained soldiers, just a bunch of ill-equipped volunteers. Hours have
:13:35. > :13:43.passed and that Gaddafi troops don't attack, the rebels relax
:13:43. > :13:48.hoping it is a false alarm. At 11 o'clock, the frontline in Gualish.
:13:48. > :13:54.By now it is usually too hot for fighting but a lookout has spotted
:13:54. > :14:00.a group of enemy vehicles heading this way. There will be a battle
:14:00. > :14:05.after all. It is firing very close to here, perhaps you can hear it. I
:14:05. > :14:10.am sheltering behind this building. Out there, they Gaddafi people are
:14:10. > :14:15.shooting in our direction. You can hear bullets firing over head from
:14:15. > :14:25.time to time quite low, and this is one of the rebel positions. They
:14:25. > :14:57.
:14:57. > :15:02.That is the sound of a bullet hitting, but no one is hurt.
:15:02. > :15:09.Overhead, rocket-propelled grenades are exploding in the air. Many of
:15:09. > :15:13.the rebels are in full panicky flight now. Soon, shame brings them
:15:13. > :15:18.to a halt. Fierce argument is raging, some one to turn back and
:15:18. > :15:25.carry on fighting, others say they are short of ammunition. In the end,
:15:25. > :15:30.this group heads back in the hope of stemming the pro-Gaddafi advance.
:15:30. > :15:34.It is hard to think that Tripoli is only 60 miles from here. It is
:15:34. > :15:38.another world. Colonel Gaddafi still has his supporters, mostly
:15:38. > :15:44.those who have done well out of the oil business. Most ordinary people
:15:44. > :15:49.have been shut out of Libya's oil wealth. The much feared secret
:15:49. > :15:55.police are everywhere preventing an uprising. Colonel Gaddafi himself
:15:55. > :16:01.has a haunted life and has nowhere to go. When he says he will stay to
:16:01. > :16:05.the bitter end, he seems to mean it. It is 6pm here in the Nafusa
:16:05. > :16:10.mountains. The rebels have stabilised the front line, but you
:16:10. > :16:14.can see why the revolution is taking so long. The rebel
:16:14. > :16:22.commanders are still confident that they will be in Tripoli by early
:16:22. > :16:27.September. Several people have died in what
:16:27. > :16:31.police are describing as a serious incident at an industrial estate in
:16:31. > :16:36.Lincolnshire. There are reports of an explosion at the estate in
:16:36. > :16:41.Boston. The emergency services are there.
:16:41. > :16:50.The families of two RAF pilots whose helicopter crashed into the
:16:50. > :16:55.Mull of Kintyre 17 years ago have finally seemed -- seen them clear
:16:55. > :17:03.of guilt. Today the Defence Secretary Liam Fox apologised to
:17:03. > :17:08.the men's families. It was a flight which lasted little over 17 minutes,
:17:08. > :17:13.but the argument over what really happened that day lasted 17 years.
:17:13. > :17:17.This was the wreckage of the RAF's worst peacetime accidents - 29
:17:17. > :17:22.people died, including some of the brightest and best in counter-
:17:22. > :17:28.terrorism. The pilot, Jonathan Tapper and Richard Cook, were
:17:28. > :17:33.blamed, found grossly negligent by the RAF for flying too low and too
:17:33. > :17:37.fast before the crash. Ever since, Chris Cook has campaigned to clear
:17:38. > :17:44.his brother's name. Today there was simply relieved that after so many
:17:44. > :17:49.years he had finally won through. absolutely delighted, taken aback.
:17:49. > :17:58.I was not expecting we would get quite that much today, to be honest.
:17:58. > :18:04.I just thought we would get an idea of what the report said. Today,
:18:04. > :18:09.Jonathan's father finally heard the words he had waited for for so long.
:18:09. > :18:14.I have written to the widows of the pilots and the family is to express
:18:14. > :18:21.the MoD's apology for the distress caused to them by the findings of
:18:21. > :18:25.negligence. I also wish to express that apology publicly. For Sue
:18:25. > :18:34.Phoenix, watching that statement brought everything back today. She
:18:34. > :18:37.lost her husband Ian in the crash. I am no longer angry, I am very sad.
:18:37. > :18:42.It is the sadness of the unnecessary suffering for all of
:18:42. > :18:47.the family is, but for those two farmers in particular. The fact
:18:47. > :18:54.they lost other loved ones that didn't see their sums names feared.
:18:54. > :18:58.We have questions raised over the helicopter's safety, they may never
:18:58. > :19:02.know what happened in those last desperate minutes over the Mull of
:19:02. > :19:10.Kintyre, but for the families, today's apology marked the end of a
:19:10. > :19:14.long battle to clear their names. Coming up: after decades at the
:19:14. > :19:22.heart of the British media, how will Rupert Murdoch weather the
:19:22. > :19:26.storm of scandal? At least 21 people have been killed
:19:26. > :19:31.in India's financial capital Mumbai in what the authorities are calling
:19:31. > :19:35.a co-ordinated terrorist attack. Three bombs exploded during the
:19:35. > :19:45.evening rush-hour. Apart from the dead, more than 100 others were
:19:45. > :19:47.
:19:47. > :19:51.It was the evening rush-hour when the bombs went off, three of them
:19:52. > :19:56.within a quarter of an hour. They were all targeted at busy locations
:19:56. > :20:02.at a busy time of the day. Many people had been on their way home
:20:02. > :20:08.from work. One eyewitness said he saw two motorbikes explode in
:20:08. > :20:13.flames and the injured screaming for help. Over 100 people were
:20:13. > :20:20.wounded, in what William Hague condemned as deplorable act of
:20:20. > :20:25.terrorism. Many have lost limbs. All injured have been evacuated to
:20:25. > :20:32.hospitals. The blast occurred at about 6:45pm within minutes of each
:20:32. > :20:38.other. Therefore, we infer that this was a Co ordinated attack by
:20:38. > :20:42.terrorists. The first bomb went off at 6:54pm at the Zaveri Bazaar, a
:20:42. > :20:50.jewellery market. One minute later, the upper house district was
:20:50. > :20:58.attacked, and then the crowded neighbourhood of Dadar. It is the
:20:58. > :21:01.first major attack in Mumbai since 2008, more than 160 people were
:21:01. > :21:05.killed after Territt blamed on militants from Pakistan. These
:21:05. > :21:10.latest bombs have been described as relatively crude and possibly the
:21:10. > :21:16.work of local militants. Whoever is behind them, they have shown that
:21:16. > :21:24.India's largest city is still vulnerable. For a unemployment has
:21:24. > :21:27.fallen again with the latest figures for the three months to May
:21:27. > :21:30.at 2.42 5 million, but the number of people claiming jobseeker's
:21:31. > :21:35.allowance rose. Many areas are continuing to face
:21:35. > :21:41.job shortages but there is also evidence of employers struggling to
:21:42. > :21:46.find workers with the right skills. It is a world-beating industry, a
:21:46. > :21:50.cluster of firms in an area of the Midlands known as Motorsport Valley.
:21:50. > :21:56.Growth is accelerating, new staff are being recruited but there is a
:21:56. > :22:02.problem on the road ahead. One of the top names in British motor
:22:02. > :22:07.sport, David Richards, told me what it was. He runs Prodrive, a big
:22:07. > :22:12.name in rallying as well as design and manufacture, he just can't find
:22:12. > :22:17.the right staff. I need 100 engineers, skills experience
:22:17. > :22:22.engineers. He says if he can't find them soon, the company's progress
:22:22. > :22:28.could be held back. It will inhibit our growth, it is doing that today.
:22:28. > :22:31.We are not taking tasks on that we could be if we had the resources to
:22:32. > :22:36.do it. Unemployment may be relatively high but some industries
:22:36. > :22:39.have vacancies and can't find workers with the right
:22:39. > :22:44.qualifications to fill them. This is an employer trying to recruit
:22:44. > :22:47.permanent staff and offering career prospects but for some other
:22:47. > :22:51.employers it is rather different. They are not as confident about
:22:51. > :22:56.future growth in the economy so they are reluctant to commit
:22:56. > :22:59.themselves to taking on full-time workers. This pub and catering
:22:59. > :23:03.business in Oxfordshire is one of them. Right now it is only prepared
:23:03. > :23:09.to take on casual staff and there is another side of the jobs market
:23:09. > :23:14.on display as well. Meet the bosses, Joanna and Anthony, and here are
:23:14. > :23:23.the staff on duty when we paid a visit. Step forward those born in
:23:23. > :23:28.the UK, the rest are not. I started to work as a waiter, and later as a
:23:28. > :23:33.supervisor, then here as an assistant manager. Step after step.
:23:33. > :23:37.Catering is well known for taking on casual workers, and bosses here
:23:37. > :23:42.save it local recruitment is difficult. Foreign people have a
:23:42. > :23:45.very good work ethic. They know that the job needs to be done and
:23:45. > :23:51.they get on with it. They certainly bring more flexibility to the
:23:51. > :23:56.business. What is it about British workers, do you think? Everybody
:23:56. > :24:01.expects a full-time permanent contract, and if they don't get
:24:01. > :24:04.that position they are not prepared to put in the hard graft. There are
:24:04. > :24:08.jobs out there, but matching them with the right people and making
:24:08. > :24:14.sure they have the correct skills and attitude is a big challenge for
:24:14. > :24:18.the economy. More now on the top story, that
:24:18. > :24:22.Rupert Murdoch has dropped his bid to take full control of BSkyB.
:24:22. > :24:29.Until the events of the last nine days, his influence and ambition
:24:30. > :24:35.looked unstoppable. Now, in Britain at least, that picture has changed.
:24:35. > :24:40.This is an assessment of how he might weather the storm.
:24:40. > :24:44.Powerful press barons are nothing new. Throughout the 20th century
:24:44. > :24:48.they sought to use them mass circulation newspapers to persuade
:24:48. > :24:54.governments or influence politicians. But none matched the
:24:54. > :24:58.cloud of Rupert Murdoch, who first came to Britain in 1969 to buy the
:24:58. > :25:03.News of the World. In Australia and Britain he has used his papers to
:25:03. > :25:08.destroy some political careers and endorse others. Politicians in awe
:25:08. > :25:13.of the Sun's circulation figures went to great lengths to court its
:25:13. > :25:16.support. In return the suspicion grew, Murdoch could ask and get
:25:16. > :25:21.favours from government and regulators which were denied to
:25:21. > :25:29.rivals. And individual politicians, fearing exposure of their private
:25:29. > :25:34.lives, were cowed. Two reasons, and let's be blunt - one is that there
:25:34. > :25:41.was an element of threat, and we know that existed. Explicitly and
:25:41. > :25:45.sometimes implicitly. The other is these guys deliver votes unfair for
:25:45. > :25:50.elections. But now the Murdoch stable has been discredited, and
:25:50. > :25:55.politicians have lost their fear and found a voice. So what now for
:25:55. > :25:59.Rupert Murdoch? I would be very surprised if he doesn't think of
:25:59. > :26:04.coming back for BSkyB, and the reason is it is a fantastically
:26:04. > :26:10.effective business. It suits the News Corporation's long-term
:26:10. > :26:14.strategy. They think Sky TV is the best pay TV company in the world.
:26:14. > :26:19.For a business man as determined and successful as Rupert Murdoch,