:00:42. > :00:49.We are asking what the day's developments mean for us.
:00:49. > :00:56.Also: Dozens of civilians killed as Syrian tanks turn the city of Hama
:00:56. > :00:59.into a war zone. Famine in Somalia. We have pictures of the un folding
:00:59. > :01:03.disaster in Islamist-controlled areas.
:01:03. > :01:13.And the smartphone revolution, how more and more of us are becoming
:01:13. > :01:38.
:01:38. > :01:43.Good evening. The FTSE took a battering losing
:01:43. > :01:48.�50 billion in value as traders across the world reacted to fears
:01:48. > :01:51.of contagion in the eurozone and fears over the US economy. In a
:01:51. > :01:56.stark warning the EU commissioned President expressed concern over
:01:56. > :01:59.the risk of the debt crisis spreading to Italy and Spain. The
:01:59. > :02:04.eurozone's third and fourth bickest economies. The route on the
:02:04. > :02:10.European markets continued on the US. The Dow Jones closing more than
:02:10. > :02:16.4% down. The biggest one-day drop in almost three years. Here is our
:02:16. > :02:21.Economics Editor, Stephanie Flanders. Two weeks ago today at
:02:21. > :02:25.their umteenth merge summit, the eurozone leaders said that they had
:02:25. > :02:28.finally taken tough decisions, that the future of the eurozone was safe,
:02:28. > :02:35.but someone forgot to tell the financial markets.
:02:35. > :02:40.This is an ABC News special report. The closing bell is ringing now at
:02:40. > :02:44.the New York Stock Exchange where the stocks have plunged... Today,
:02:44. > :02:48.tens of billions of pounds were wiped off British and American
:02:48. > :02:53.stock prices as fears of the Euro fed into worries in America about
:02:53. > :02:59.the strength of their recovery. US stock prices are back to where they
:02:59. > :03:03.were at the end of last year. A couple of weeks ago, the markets
:03:03. > :03:07.anticipated that the ECB and the rest of the European players had
:03:07. > :03:11.found a solution to the problem, but digging into the detail lying
:03:11. > :03:15.behind the statement it is clear there is not a lot of money on the
:03:16. > :03:21.table. No political will to sort out the problems.
:03:21. > :03:27.Once again it is Italy and Spain paying a price for the investors'
:03:27. > :03:32.doubts. A year ago, the Spanish Government paying 4 .4% from the
:03:32. > :03:36.borrowing markets. Much less than Greece, but a few weeks ago it had
:03:37. > :03:40.gone up to 6 .3% and it is back close to that level. Italy is
:03:40. > :03:43.paying nearly as much. The higher the interest rate that they pay,
:03:43. > :03:47.the more difficult it is for the countries to get on top of their
:03:47. > :03:51.debts. That is the fear that is concentrating on the minds in
:03:51. > :03:57.Brussels, but they are running out of ways to respond. The European
:03:57. > :04:01.President sent a stern letter to Euro gfts talking of a growing
:04:01. > :04:06.market scepticism of their capacity to deal with the crisis which he
:04:06. > :04:11.said had extended well beyond the periphery of the eurozone. Saying
:04:11. > :04:16.that they should push ahead with what was agreed and ordered a
:04:16. > :04:19.reassessment of what could be done. The European Central Bank did take
:04:19. > :04:24.action, announcing it would step in to support the governments under
:04:24. > :04:28.pressure by buying their bonds. But the bank's President also had
:04:28. > :04:32.stern words for the national politicians.
:04:32. > :04:37.The key for everything is government ahead of the curve in
:04:37. > :04:45.both of the fiscal policies and the structure of reforms. The structure
:04:45. > :04:49.of the reforms are of the essence. I know that they are here and there
:04:49. > :04:53.difficult, they might be politically difficult in our
:04:53. > :04:57.democracies, but they are paying off.
:04:57. > :05:02.The UK did get ahead of the curve in kurting its deficit, the
:05:02. > :05:07.opposition would say too far ahead, but our banks and fragile recovery
:05:07. > :05:14.could be thrown off course by a crisis across the Channel and a
:05:14. > :05:18.stumbling US recovery. Today's fall, the biggest drop in the main US
:05:18. > :05:25.stock index than a year ago, the details have changed but the mood
:05:25. > :05:30.in the market is familiar. Well, as we have been hearing the
:05:30. > :05:37.markets across the globe have shown dramatic losses. In the last hour
:05:37. > :05:43.the Dow Jones was down 4 .3%. Earlier, Germany's DAX index was
:05:43. > :05:47.down 3 .4% points. Here, the FTSE 100 in London also closed 3 .4%
:05:48. > :05:52.down. Well, our Business Editor Robert
:05:52. > :05:59.Peston is with me now. Robert, what is your take on what has been
:05:59. > :06:05.happening? It's been a dramatic day. It is a truly global phenomena. The
:06:05. > :06:10.Brazilian markets fell more than the German and the US and the UK
:06:10. > :06:15.markets. The recovery in the rich West, especially in America has
:06:15. > :06:20.been running out of steam. We have seen the amounts that Italy, the
:06:20. > :06:26.Italian government, the Spanish governments have to pay to borrow
:06:26. > :06:29.to such levels. What happened that really shocked the investors was
:06:29. > :06:35.the omission by Jose Manuel Durao Barroso, the EU commission
:06:35. > :06:40.President that the solution, that the eurozone thought it had in
:06:40. > :06:43.place is both too complex and incomplete. That really rattled the
:06:43. > :06:47.investors and those who lent to banks.
:06:47. > :06:51.I bet there are many people out there saying that we are facing
:06:51. > :06:56.another credit crunch? It is a fear. There is a link between the
:06:56. > :07:00.confidence in the credit-worthiness of governments and confidence in
:07:00. > :07:04.their banks. So, as the fears have accumulated that Spain and Italy
:07:04. > :07:09.could not repay debts, so it is harder for their banks to borrow.
:07:09. > :07:13.The fear is that the great money men in America in particular who
:07:14. > :07:19.lend to European banks will not discriminate that a whole range of
:07:19. > :07:24.banks, including our own, will find difficult to borrow. That is why
:07:24. > :07:29.Lloyds' shares fell 10%. Barclays shares falling 8%. All of this is
:07:29. > :07:34.built on the fear that we are approaching another credit crunch,
:07:34. > :07:38.when the banks cannot borrow, they cannot lend. You are tipped back
:07:38. > :07:41.into recession. That is why senior members of the Government and
:07:41. > :07:46.bankers are saying that the eurozone has to get a grip of this
:07:46. > :07:49.and soon or we coiled be facing the conditions that we saw in 2008 once
:07:49. > :07:54.again. Robert Peston, thank you very much.
:07:54. > :07:58.The latest reports from Syria say that as many as 45 civilians have
:07:58. > :08:02.been killed as the government launched a tank-led assault on the
:08:02. > :08:08.city of Hama. Human Rights Act visits have sent
:08:08. > :08:13.pictures of the latest stage of the crackdown. Most of them are too
:08:13. > :08:16.shocking to show. These in the report are also disturbing.
:08:16. > :08:22.Syrian military vehicles heading towards Hama today. All of this
:08:22. > :08:27.video is hard to verify, but a troubling picture is emerging.
:08:27. > :08:32.Yesterday it seems that tanks and troops swept into the city centre,
:08:32. > :08:36.part of what seems to be a concerted effort to crush the
:08:36. > :08:40.uprising in Hama. One resident who has since fled the city told us
:08:40. > :08:45.what he witnessed. TRANSLATION: They were using anti-
:08:45. > :08:51.aircraft to shoot the buildings, the cars and the people as well.
:08:51. > :08:53.They were trying to find anyone and kill, you know.
:08:53. > :08:59.The generators are not working anymore.
:08:59. > :09:04.So the hospital is shut down. You know it is completely shut down.
:09:04. > :09:09.There is no electricity, food. People are terrified. It is like a
:09:09. > :09:13.battle scene. Exactly like a battle scene. Like villages in Iraq, that
:09:13. > :09:18.the US army have invaded, that is what it looks like.
:09:18. > :09:22.Evidence from these pictures of what activists say are injured
:09:22. > :09:28.civilians being targeted. And what we are now about to show
:09:28. > :09:32.may be distressing, possible evidence of horrific casualties.
:09:32. > :09:37.The blanket covers what is too awful to show, most of this man's
:09:37. > :09:42.head was blown off by a tank, we are told.
:09:42. > :09:48.The picture in Hama is sketchy, but it seems after weeks of encircling
:09:48. > :09:52.the city tanks and troops began to move in on Sunday. Activists
:09:52. > :09:55.reported that residential areas were targeted along with a hospital.
:09:55. > :10:01.We have seen many pictures too upsetting to show. A second man
:10:01. > :10:05.with his head blown off, a young girl allegedly crushed by a tank. A
:10:05. > :10:10.small boy with gunshot wounds visible on his body and this
:10:10. > :10:15.distressing story of a woman who lost her husband in the first
:10:15. > :10:19.massacre. Now she has also lost her son in this attack.
:10:19. > :10:23.But latest pictures suggest that the rebellion in Hama is far from
:10:23. > :10:28.over. This was apparently last night in the city. Crowds openly
:10:28. > :10:34.defiant. It is not own here that President Bashar al-Assad faces
:10:34. > :10:37.opposition it is hard to know where the crisis is going to end.
:10:37. > :10:40.Human rights groups and lawyers say that they will boycott the
:10:40. > :10:45.independent inquiry into what the British security services knew
:10:45. > :10:49.about the alleged torture and mistreatment of terror suspects.
:10:49. > :10:53.They fear it could become a whitewash. David Cameron announced
:10:53. > :10:56.the inquiry, saying it was important to clear up questions of
:10:56. > :11:00.wrongdoing and restore Britain's moral standing.
:11:00. > :11:04.We have this report. How much did British intelligence
:11:04. > :11:08.know about the alleged mistreatment of those detained abroad in the
:11:08. > :11:12.fight against terrorism? Last year the Prime Minister made clear that
:11:12. > :11:18.he wanted to draw a line under the ongoing controversy.
:11:18. > :11:21.The longer that the questions are unanswered, the bigger the stain on
:11:21. > :11:26.our reputation... He went on to announce an inquiry, but human
:11:26. > :11:30.rights groups and lawyers for those detained have said that they will
:11:30. > :11:32.not participate. One former detainee picked up in Pakistan and
:11:32. > :11:37.held in Guantanamo Bay, explains why.
:11:37. > :11:41.There is information that we think is vital for us to see as former
:11:41. > :11:47.prisoners that will be kept in secret, we will not be able to see
:11:47. > :11:54.it. In a sense, it is just a repeat of history because our detention in
:11:54. > :11:58.Guantanamo Bay was justified through the use of secret tribunals.
:11:58. > :12:03.Supporters of the inquiry into the intelligence service claim it will
:12:03. > :12:07.be as open as it is possible to be, given the nature of that material.
:12:07. > :12:12.This will be a more open inquiry than any before has ever been, but
:12:12. > :12:16.there is still a limit. There will be items of material which are so
:12:16. > :12:21.sensitive it would be against this country's interest to publish them.
:12:21. > :12:24.A series of court cases was making life difficult here at MI5 and for
:12:24. > :12:29.other intelligence agencies. The Government hoped it could limit the
:12:29. > :12:33.damage by agreeing a deal in which the former detainees would end
:12:33. > :12:36.their legal action in return for compensation, believed to amount to
:12:36. > :12:43.millions of pounds as well as an agreement to hold an independent
:12:43. > :12:47.inquiry. A key issue for the inquiry is what
:12:47. > :12:53.guidance was given to intelligence officers interrogating detainees
:12:53. > :12:59.held by other countries? There is no allegations of torture by
:12:59. > :13:03.Britons. Intelligence chiefs denied come police ity in mistreatment of
:13:03. > :13:06.other nations. Although a police investigation is joing ongoing. A
:13:07. > :13:11.spokesperson for the inquiry today said that it would move forward
:13:11. > :13:19.with or without those representing the detainees, the question will be
:13:19. > :13:23.A court in France ruled the new head of the International Monetary
:13:24. > :13:29.Fund, Christine Lagarde should be investigated over accusations sha
:13:29. > :13:33.she abused her her position when she was the French Finance Minister.
:13:33. > :13:39.Christine Lagarde denies a payment in favour of a business tycoon in
:13:40. > :13:47.2008. More than 11 11 million people have
:13:47. > :13:57.been affected by the worst drought in the Horn of Africa. In Mogadishu
:13:57. > :13:57.
:13:57. > :14:01.there are battles between the alsha bad and African Union peacekeepers.
:14:01. > :14:07.Andrew Harding reports. There are distressing images in this report.
:14:07. > :14:11.The first glimpse into the hidden heart of Somalia's famine.
:14:11. > :14:17.Outsiders are not welcome here, we asked a local cameraman to film for
:14:17. > :14:22.us in territory controlled by the militant Islamist group, alsha bad.
:14:22. > :14:28.Families have gathered in huge numbers hoping to find food. Some,
:14:28. > :14:33.are being helped, a frail old man is examined by a local medic. A
:14:33. > :14:38.mother brings her starving child to this mobile clinic. Staffed by
:14:38. > :14:42.local students. But is this just propaganda? The
:14:43. > :14:46.militants claims there is no famine here and now it wants to show the
:14:46. > :14:54.outside world it has things under control. Why else would the sign be
:14:54. > :14:58.in English? In public the militant leaders are maintaining their tough
:14:58. > :15:03.anti-western stance. Trance god is testing us with this
:15:03. > :15:10.drought because of our sense. We pray for relief. We ask Muslims to
:15:10. > :15:15.assist us so that we don't have to depend on help.
:15:15. > :15:22.Some foreign food supplies are being allowed in. Somalia is a land
:15:22. > :15:27.of chaos and sometimes pragmatism. Here in Mogadishu, humanitarian and
:15:27. > :15:33.military officials insist that the militants are blocking desperately
:15:33. > :15:38.needed outside aid and putting tens, if not hundreds of thousands at
:15:38. > :15:43.risk. African Union soldiers are still
:15:43. > :15:49.fighting the militants in the ruins of Mogadishu. This is a dangerous
:15:49. > :15:55.place. But should western aid agencies not be doing a lot more to
:15:55. > :16:01.help the civilian population here? They are not doing enough because
:16:01. > :16:08.the famine came not by surprise, we expected this. We expect this
:16:08. > :16:14.problem. We should have prepared early and we should be good to go.
:16:14. > :16:18.Instead, this woman has buried the fourth of her five children. The
:16:18. > :16:22.city has been declared an official famine zone. Many local
:16:22. > :16:32.organisations battling to reach the hungry say they are not getting
:16:32. > :16:34.
:16:35. > :16:38.Coming up: Are you addicted to your
:16:38. > :16:48.smartphone? We tap into some of the more surprising facts about modern
:16:48. > :16:49.
:16:49. > :16:52.Barack Obama turned 50 today, but as we've been hearing, if he was
:16:52. > :16:56.hoping for a birthday gift from the US economy, he'll be sorely
:16:56. > :16:58.disappointed. The Federal debt crisis may be dealt with, at least
:16:58. > :17:03.for the moment, but a whole series of economic figures suggest that
:17:03. > :17:06.America's recovery is stalling. Tomorrow's unemployment figures are
:17:06. > :17:16.unlikely to lift the gloomy mood as our North America Editor, Mark
:17:16. > :17:26.
:17:26. > :17:29.# Happy birthday # Many worry when they hit the big 50.
:17:29. > :17:32.His birthday speech accepted there was a lot of work to do on the
:17:32. > :17:38.economy. It doesn't matter how tough a week
:17:38. > :17:48.I have in Washington because I know you've got me, you've got my back
:17:48. > :17:48.
:17:49. > :17:53.when I come to Chicago, I know we... Opponents jumped on the President
:17:53. > :18:00.for kaumg last month's bad figures a bump in the road. I'm an American,
:18:00. > :18:05.not a bump in the road. You are only as old as you the feel, but
:18:05. > :18:09.the greying of the witness bears witness to the pressures in the job.
:18:09. > :18:12.Many of the president's plans to share America's cake more evenly
:18:12. > :18:17.depend on growth, but there is nothing to celebrate in the latest
:18:17. > :18:21.round of statistics, there were more job cuts in July than in the
:18:21. > :18:24.previous 16 months. The latest manufacturing figures show the
:18:24. > :18:28.sector hardly grew at all and consumer confidence is low,
:18:28. > :18:34.spending dropped in June for the first time in nearly two years.
:18:34. > :18:38.Unemployment figures out tomorrow are expected to be more bad news.
:18:38. > :18:42.After a terrible two years, this building company based in Maryland
:18:42. > :18:47.has won some new business, but the the boss isn't hiring as many
:18:47. > :18:52.people he would like, the legacy of the recession makes him pessimistic.
:18:52. > :18:59.It made borrowing money so much more difficult right now that there
:18:59. > :19:03.is such a state of unknown and that state of unknown is what's keeping
:19:03. > :19:06.people from moving forward with projects.
:19:07. > :19:11.Frederick is a relaxed sort of place with a prosperous feel, but
:19:11. > :19:15.even here there is gloom. In high streets up and down America, it is
:19:15. > :19:18.felt for a while as though the economy is bumping along the bottom.
:19:18. > :19:22.Now a few economists say the figures point to another recession.
:19:22. > :19:29.They are in a minority, but could things be getting worse? In the
:19:29. > :19:35.shops, there are new worries. Sales are deaf are definitely
:19:35. > :19:40.douchblet my husband is un-- down. My husband is unemployed right now.
:19:40. > :19:42.I'm the only income my family is. We are barely scraping. We can pay
:19:42. > :19:46.our rent and bills, but that's about it.
:19:46. > :19:51.It is down right now. I thought it was coming back. In the summer we
:19:51. > :19:57.had a couple of good months and then this political problem in
:19:57. > :20:02.Washington and the higher gas prices wiped it out. A waxy Obama
:20:02. > :20:07.enjoys his party, but as the Dow plunges, the real President has
:20:07. > :20:14.little room for manoeuvre or room to celebrate.
:20:14. > :20:18.The judge leading the inquiry into the phone hacking inquiry said he
:20:18. > :20:21.will examine wider press ethics. He will look at how newspapers use
:20:21. > :20:27.private investigators. The BBC has learned that a controversial firm
:20:27. > :20:31.of private detectives, Southern Investigations, was employed by the
:20:31. > :20:37.Daily Mirror and Sunday Mirror on over 200 occasions from 1997 to
:20:37. > :20:41.1999. Here is Robert Peston again. The Mirror, no surprise that it
:20:41. > :20:49.published endless stories on the likes of George Michael, Kirsty
:20:49. > :20:54.Young, Peter Mandelson and Will Carling, the Mirror employed a firm
:20:55. > :20:59.of detectives to get get these stories and others. A former Mirror
:20:59. > :21:03.journalist convicted in 2005 for insider trading trains.
:21:03. > :21:06.There are a few journalists competing for the the same stories,
:21:06. > :21:11.if you are competing against The Sun or the News of the World for
:21:11. > :21:15.the same stories or even other newspapers in your group like the
:21:15. > :21:20.Sunday People, you have got to do everything you can to get the story
:21:20. > :21:24.and if the opposition are using those methods, like the News of the
:21:25. > :21:27.World was, then you know, you have to use those same techniques
:21:27. > :21:33.otherwise you won't get the stories and you will lose sales.
:21:33. > :21:37.A BBC investigation discovered that are between October 1997 and
:21:37. > :21:42.September 1999, Southern Investigations was employed on 230
:21:42. > :21:47.occasions by the Daily and Sunday Mirror and billed �67,000 for its
:21:47. > :21:52.services. Many media organisations, including the BBC, have employed
:21:52. > :21:57.private detectives, but on average Southern was doing two pieces of
:21:57. > :22:02.work each week for the Mirror. This is some of what the Mirror bought
:22:02. > :22:12.from Southern Investigations. An invoice dated October 1998 is for
:22:12. > :22:13.
:22:13. > :22:20.following the former news anchor, Kirsty Young. It says, "To our
:22:20. > :22:25.motorcycle operative." The bill was for �262. Hiring a private
:22:25. > :22:29.detective isn't illegal. The Mirror paid for financial information on
:22:29. > :22:34.Peter Mandelson, the size of his mortgage, at Britannia Building
:22:34. > :22:40.Society, the monthly payments and the amount outstanding and how much
:22:40. > :22:43.he had in his current and savings accounts at at Coutts.
:22:43. > :22:47.Many journalists would say there was a powerful public interest in
:22:47. > :22:51.obtaining information about Lord Mandelson's personal finances given
:22:51. > :22:55.that he received a secret loan from a fellow member of the Government
:22:56. > :23:00.which supposedly created a financial tie between the two that
:23:00. > :23:05.should have been disclosed. I want British journalism to return
:23:05. > :23:10.to its vocation, to bring the the truth to light, but with courage,
:23:10. > :23:14.honesty and decency. The Mirror Group told the BBC it
:23:14. > :23:18.last used Southern Investigations in 1999 and its journalists worked
:23:18. > :23:22.within the criminal law and the PCC code of conduct.
:23:22. > :23:26.Another invoice was for a mobile phone number and PIN. This could
:23:26. > :23:31.have been used to hack into the voicemail of a mobile phone, but
:23:32. > :23:37.there is no evidence it was used that way. The Prime Minister asked
:23:37. > :23:43.Lord Justice Leveson to exam the ethics of the press following
:23:43. > :23:50.behaviour at the the News of the World. Lord Justice he have letter
:23:50. > :23:56.son will look at how detectives The Scottish Government denied that
:23:56. > :24:00.exams are getting easier as pupils in Scotland achieved record pass
:24:00. > :24:04.rates. Almost 130,000 pupils got their results today, but an
:24:04. > :24:08.investigation has begun after thousands received theirs yesterday
:24:08. > :24:12.by mistake. Is the smartphone threatening to
:24:12. > :24:16.take over our lives? The latest survey from Ofcom, the media
:24:16. > :24:19.regulator, found a third of adults and a majority of teenagers
:24:19. > :24:23.describe themselves as highly addicted. They use them at meal
:24:23. > :24:33.times, in the bathroom and take them to bed!
:24:33. > :24:37.
:24:37. > :24:41.Meet the Ramsdens, a a smartphone family. Olly never stops texting
:24:41. > :24:44.whilst mum Natasha likes to stay online. This technology has changed
:24:44. > :24:48.the way they live. They are just really addictive. I
:24:48. > :24:50.can sit there playing games which I've never done before. I can sit
:24:50. > :24:55.there looking at Google and Facebook, things you would have to
:24:55. > :24:59.go to a computer for, but now it is by my hand so it is easy to pick up
:24:59. > :25:05.and use. And where this 14-year-old goes,
:25:05. > :25:10.his smartphone goes too, even in here! But Olly isn't alone. Nearly
:25:10. > :25:15.half of all 12 to 15-year-olds who have a smartphone use it in the
:25:16. > :25:21.bathroom. So do more than a fifth of adults. Olly, how much do you
:25:21. > :25:27.use your smartphone in in there? when the shower is warming up. When
:25:27. > :25:33.I'm brurk my teeth m maybe when I'm on the toilet.
:25:33. > :25:38.You're kidding me! And these devices aren't easy to
:25:38. > :25:44.put down. Today's survey showed that 23% of adults with smartphones
:25:44. > :25:48.use them at meal times, but at what cost to our manners? This pocket-
:25:48. > :25:53.sized computer appears to be changing the rules.
:25:53. > :25:59.Technology is starting to drive the way we behave in social situations
:25:59. > :26:03.it seems. The question is how good a thing is it? More than a third of
:26:03. > :26:07.adults think they are highly addicted to their smartphones
:26:08. > :26:12.according to the study and the figure is higher for teenagers.
:26:12. > :26:17.Young people are heavy users of social network sites and media such
:26:17. > :26:23.as text messages. There is no evidence as such that it is
:26:23. > :26:27.detracting from their off-line life, but there is no evidence that it is
:26:27. > :26:36.enhancing it. That maybe, but the smartphone is