:00:09. > :00:15.More dramatic claims in the phone hacking trial as the prosecution
:00:16. > :00:18.makes its case. Do his phone, what News of the World editor Andy
:00:19. > :00:22.Coulson is alleged to have told a journalist investigating a
:00:23. > :00:26.celebrity. Allegations are made that a voice mail left by Prince Harry
:00:27. > :00:31.was also hacked by the paper. We will be live at the Old Bailey for
:00:32. > :00:34.all the day's developments. The BBC broadcaster Paul Gambaccini is
:00:35. > :00:41.arrested on suspicion of historical sex offences. The Pakistan Taliban
:00:42. > :00:45.tell the BBC their leader has been killed in a US drone attack. A
:00:46. > :00:50.strike by firefighters on one of the busiest nights of the year in a
:00:51. > :00:54.protest over pensions. And eight years on from one of the defining
:00:55. > :00:57.images of the Iraq War, how the British soldier who escaped a
:00:58. > :01:02.burning vehicle has rebuilt his life.
:01:03. > :01:05.Coming up in Sportsday on BBC News, Joe Hart is dropped that Manchester
:01:06. > :01:08.City, the England goalkeeper has been out of form recently and will
:01:09. > :01:33.not start against Norwich tomorrow. Hello, good evening. Prosecutors at
:01:34. > :01:36.the Old Bailey have said senior journalists at the News of the World
:01:37. > :01:41.must have known the extent of phone hacking by its reporters. Jurors
:01:42. > :01:45.were told that the former editor, Andy Coulson, told a correspondent
:01:46. > :01:50.to do the phone of celebrity Calum Best. It is also alleged that a
:01:51. > :01:55.message left by Prince Harry on a friend's pole was listened to. Mr
:01:56. > :02:01.Coulson and seven other defendants deny all the charges. Tom Symonds is
:02:02. > :02:05.at the Old Bailey for us with more. Yes, Kate, this whole affair came to
:02:06. > :02:09.light in 2006 when it was revealed that the News of the World had used
:02:10. > :02:13.phone hacking to break stories about the private lives of Prince William
:02:14. > :02:17.and Prince Harry, but there was no trial then because the hackers
:02:18. > :02:20.pleaded guilty, and so no details emerged. But they did today on the
:02:21. > :02:26.third day of this highly complex case.
:02:27. > :02:31.The jury was told that one alleged use of phone hacking targeted Prince
:02:32. > :02:34.Harry when he was studying at Sandhurst. The News of the World
:02:35. > :02:35.intercepted a voice mail message she had left for his private secretary,
:02:36. > :02:52.who had served in the SAS. News of the World Royal editor Clive
:02:53. > :02:56.Goodman turned that into a story that the prince was getting his
:02:57. > :03:00.aides to do his homework for him. A key allegation in this trial is that
:03:01. > :03:05.editor Andy Coulson also knew the source of this story and many others
:03:06. > :03:08.was illegal voice mail interception. But the court heard there was a
:03:09. > :03:11.problem with phone hacking. It's stories like this were challenged,
:03:12. > :03:15.the paper could not produce the evidence to back them up because it
:03:16. > :03:19.had been obtained illegally, and if stories were too precise, then the
:03:20. > :03:25.fact they came from voice mails might be spotted. Another story,
:03:26. > :03:30.another allegation - in 2006, the News of the World was planning a big
:03:31. > :03:34.story about Calum Best, the son of footballer George. But the paper's
:03:35. > :03:39.news editor, Ian Edmondson, was worried he might find out.
:03:40. > :03:44.He thought he might give the story to a rival paper to spoil the scoop.
:03:45. > :03:55.In an e-mail read to the jury, Andy Coulson writes...
:03:56. > :04:03.A clear sign, the prosecutor said, that he knew about and ordered
:04:04. > :04:06.hacking. He is also accused of agreeing a payment for two phone
:04:07. > :04:11.directories for the Royal household. The court heard they were stolen
:04:12. > :04:15.from St James's Palace by two unnamed police officers. They wanted
:04:16. > :04:20.?1000 each, and it is claimed Clive Goodman insisted it had to be paid
:04:21. > :04:24.in cash. More evidence to come that MOD sources were leaking stories for
:04:25. > :04:29.money, including, it was claimed in court today, news of the death of
:04:30. > :04:35.active service personnel. Rebekah Brooks is charged with agreeing the
:04:36. > :04:40.payments while editor of the Sun. It is claimed illegal sources were paid
:04:41. > :04:44.by cash transfers to branches of Thomas Cook, which they could then
:04:45. > :04:47.pick up without being traced. Andy Coulson, Rebekah Brooks and the
:04:48. > :04:52.other six defendants have all pleaded not guilty to all the
:04:53. > :04:56.charges. So over the last three days, the
:04:57. > :04:59.prosecutor, Andrew Edis, has set out the case on phone hacking, on
:05:00. > :05:04.illegal payments to public officials, and on Monday he says he
:05:05. > :05:08.will give us the last part of the prosecution case, especially against
:05:09. > :05:15.Rebekah Brooks and three others, and that part, he says, is the cover-up.
:05:16. > :05:18.The BBC broadcaster Paul Gambaccini has been arrested following
:05:19. > :05:24.historical allegations of sexual abuse. It falls as part of Operation
:05:25. > :05:28.Yewtree, a series of police investigations stemming from the
:05:29. > :05:33.Jimmy Savile scandal. He has denied the allegations. June Kelly is here,
:05:34. > :05:37.what do we know? Of course, Paul Gambaccini is one of the most
:05:38. > :05:40.established names in BBC Radio. He was arrested on Tuesday, early in
:05:41. > :05:43.the morning at his home in south London and spent the day in custody
:05:44. > :05:48.being questioned about historical sexual allegations. He comes under
:05:49. > :05:52.the strand of others in the Yewtree investigation, which means that
:05:53. > :05:56.these allegations are not linked to Jimmy Savile. He has been bailed
:05:57. > :06:00.until January, so too was another man who was arrested on the same
:06:01. > :06:05.day, and they bring to 16 the number who have been arrested under
:06:06. > :06:09.Yewtree. Any statement from Mr gamba Jeannie? We have a statement from
:06:10. > :06:12.his spokesman who says he denies all the allegations. He answered all the
:06:13. > :06:16.police questioned and was cooperative. In another statement
:06:17. > :06:19.the BBC said that the present himself had decided that, in the
:06:20. > :06:23.light of the media attention, he did not want to be on air at present. He
:06:24. > :06:28.has a Saturday night show on Radio 2, and tomorrow night's addition
:06:29. > :06:32.have already been recorded, but that will now be bold. He was also due to
:06:33. > :06:37.have a documentary on Radio 4 later this month, which is linked to the
:06:38. > :06:42.50th anniversary of the assassination of President Kennedy,
:06:43. > :06:45.but that will also not be broadcast. The head of the Pakistani Taliban
:06:46. > :06:50.has been killed in a US drone strike. Hakimullah Mehsud's death
:06:51. > :06:54.was confirmed to the BBC by high high wrecking member of the Taliban
:06:55. > :06:57.in Pakistan. -- a high-ranking member. It is believed several
:06:58. > :07:01.people were killed when a missile was fired at a house and vehicle in
:07:02. > :07:05.a tribal area of north Pakistan. James Robbins has more.
:07:06. > :07:09.Hakimullah Mehsud said death could come to him at any time. The head of
:07:10. > :07:13.the Pakistan Taliban justify the killing of many others as jihad in a
:07:14. > :07:21.rare and final interview with the BBC a few weeks ago. TRANSLATION: We
:07:22. > :07:24.have targeted those with the infidels, America, and we will
:07:25. > :07:27.continue to do that, but as for the attacks against the property and
:07:28. > :07:38.lives of Muslims, we deny any link to them. Mehsud made himself one of
:07:39. > :07:42.the most wanted by appearing alongside a suicide bomber who went
:07:43. > :07:50.on to kill seven CIA officers in Afghanistan. Our jihad, in July,
:07:51. > :07:55.will continue... Hakimullah Mehsud became leader of the Pakistani
:07:56. > :07:59.Taliban aged only 30 in 2009 after his predecessor was also killed by a
:08:00. > :08:04.US drone, and his own deputy died in yet another drone attack just a few
:08:05. > :08:08.months ago. Mehsud had a $5 million FBI bounty on his head, and he was
:08:09. > :08:12.widely blamed for the deaths of thousands, the vast majority
:08:13. > :08:18.Pakistanis. He was targeted by a drone missile some three miles north
:08:19. > :08:22.of Miranshah, the capital of North Waziristan, the tribal region of
:08:23. > :08:28.Pakistan which is a stronghold for Taliban and Al-Qaeda linked
:08:29. > :08:32.militants. Many Pakistanis will not mourn Mehsud, despite his denials,
:08:33. > :08:35.he is held responsible for increasingly frequent bomb attacks
:08:36. > :08:40.across the country. That has turned many people, but certainly not all,
:08:41. > :08:44.against him. Recently, the Pakistani government reached out to him
:08:45. > :08:47.offering peace talks. Instead, his death weakens the Taliban, but they
:08:48. > :08:55.also end any prospect of negotiation. The peace talks were a
:08:56. > :09:07.nonstarter, and after his death it will not be possible. Much of
:09:08. > :09:11.Pakistan denounces all America's drone attacks. Coincidentally, there
:09:12. > :09:16.was another series of protests today. They reflect public opinion,
:09:17. > :09:19.and the government in Islamabad has been quick to condemn the use of
:09:20. > :09:22.drones in the killing as a violation of sovereignty, however much it
:09:23. > :09:29.might privately celebrate the result. So it seems there will be no
:09:30. > :09:33.more extraordinary pictures Mehsud and his young Taliban followers at
:09:34. > :09:40.play. But however they may be weakened, the militants will fight
:09:41. > :09:44.on and a new leader. Here, the Royal Bank of Scotland has
:09:45. > :09:48.announced it will not split its business in two as it tries to
:09:49. > :09:53.recover from the financial crisis but instead create an internal
:09:54. > :09:56.so-called bad bank. It will ringfenced ?38 billion worth of bad
:09:57. > :10:03.assets, such as loans it does not ever expect to get repaid. This
:10:04. > :10:06.morning RBS announced a pre-tax loss of ?634 million in the third
:10:07. > :10:11.quarter, and shares in the bank, mainly owned by the taxpayer, today
:10:12. > :10:18.fell by 7.5%, as business editor Robert Peston reports.
:10:19. > :10:24.Royal Bank of Scotland, a bank still in need of mending, unveiling a plan
:10:25. > :10:27.today to quarantine ?38 billion of poisonous radioactive loans with the
:10:28. > :10:35.hope of getting rid of all of them over three years. Given that this
:10:36. > :10:40.?38 billion of toxic debt is absolutely the most poisonous that
:10:41. > :10:45.RBS has, the stuff they cannot shift, wouldn't it have been better
:10:46. > :10:50.to extract it and put it on the taxpayers' balance sheet? The best
:10:51. > :10:53.advice I got was that the best thing for the British taxpayer was the
:10:54. > :10:58.internal bank, splitting it into a good and bad bank, but within the
:10:59. > :11:02.umbrella of the existing bank. A new chief executive at RBS, breaking by
:11:03. > :11:09.tradition by owning up that the bank has not served its many millions of
:11:10. > :11:11.customers properly after the deputy Governor of the Bank of England
:11:12. > :11:15.savaged its performance in small business lending.
:11:16. > :11:19.This report is shocking, I mean it says your people have not got the
:11:20. > :11:23.right skills, that the targets that the bank said were not appropriate,
:11:24. > :11:27.that there has been fragmentation of management at this business. You did
:11:28. > :11:32.nothing right in that area, did you come five years ago we were broke,
:11:33. > :11:37.and that was because we lend money to the wrong people. You tighten the
:11:38. > :11:40.organisation, and that is what we did five years ago. What is showing
:11:41. > :11:44.in that report now is we probably tightened up too much, and we to get
:11:45. > :11:47.this bank back to being a lot more normal and how it works with
:11:48. > :11:53.customers, and that is what we will do. Chums again, Chancellor and bank
:11:54. > :11:57.boss visiting a small business customer, in agreement that RBS
:11:58. > :12:03.should give up its global ambitions in order to become a mainly UK
:12:04. > :12:06.focused retail bank. A peace treaty after the tension that characterise
:12:07. > :12:11.Mr Osborne's relationship with RBS under the previous chief executive.
:12:12. > :12:16.Mending the bank is plainly a big job, is there any chance it will
:12:17. > :12:20.begin to get some of the ?46 billion that we as taxpayers have invested
:12:21. > :12:25.in it before the general election? Frankly, I think it is unlikely we
:12:26. > :12:29.will be able to sell RBS before the general election, just because there
:12:30. > :12:33.is a lot of work to be done to make sure that RBS cleans up the mistakes
:12:34. > :12:40.of the past, get out of its big American operations and focuses on
:12:41. > :12:44.Britain. RBS was the biggest bank in the world and the most dangerous to
:12:45. > :12:52.taxpayers' well. Now, to redeem itself, it's just wants to get back
:12:53. > :12:55.to the basics of British banking. Barclays has suspended six traders
:12:56. > :12:57.as part of an international investigation into suggestions that
:12:58. > :13:03.the foreign currency exchange market could have been rigged. Yesterday it
:13:04. > :13:07.emerged that the role Bank of Scotland had taken similar action
:13:08. > :13:14.against two traders. Hugh Pym, who revealed today's development, has
:13:15. > :13:20.this report. It was a scandal which walked the banking world. It
:13:21. > :13:24.resulted in big fines and struck the industry's name through the mud. The
:13:25. > :13:28.question now, are more skeletons about to be pulled out of the
:13:29. > :13:31.banking cupboard? Investigations this time focusing on foreign
:13:32. > :13:36.currency trading, and whether dealers might have colluded to try
:13:37. > :13:40.to move exchange rates to suit their own interests. One former trader,
:13:41. > :13:44.now a senior academic, says the potential for market rigging is
:13:45. > :14:24.there. The incentives are so large for practices of this kind to occur
:14:25. > :14:26.that I'd be very surprised if they didn't occur. You only have to move
:14:27. > :14:29.the market for small amount of time and a very small amount to make
:14:30. > :14:31.literally millions of dollars of profit. Regulators are looking at
:14:32. > :14:33.the setting of key currency benchmarks, known as the London fix.
:14:34. > :14:36.Each day at 4pm, average currency rates over a one-minute period are
:14:37. > :14:38.calculated. It's possible that banks could secretly agreed to trade at
:14:39. > :14:40.certain levels over that time to manipulate the rates. The ai,
:14:41. > :14:42.executives at three other banks have been sent on leave. Some market
:14:43. > :14:45.experts say it would be surprising if anything out of the ordinary had
:14:46. > :14:47.happened. These investigations are at an early stage, and let's hope
:14:48. > :14:49.there's nothing in them. Anything on this scale is completely unheard-of
:14:50. > :14:52.in the foreign exchange market, executives at three other banks have
:14:53. > :14:54.been sent on leave. The market experts say it would be surprising
:14:55. > :14:57.if anything out of the ordinary had happened. These investigations are
:14:58. > :14:59.at an early stage, and let's hope there's nothing in them. Anything on
:15:00. > :15:01.this scale is completely unheard-of in the foreign exchange would be
:15:02. > :15:03.very sad and new development. Regulators in New York and S cup
:15:04. > :15:06.also contacted banks about foreign exchange dealing, but for London
:15:07. > :15:09.this is a big issue because it is such a big player in the world
:15:10. > :15:11.currency the city will be hoping this investigation does not drag on
:15:12. > :15:15.and cloud the reputation of London as an important financial centre.
:15:16. > :15:19.Certainly there will be hopes it is not a the libel scramble, and the
:15:20. > :15:23.damaging fallout which followed in a dispute with the government over
:15:24. > :15:33.jobs and pensions. Members of the Fire Brigades Union walked out at
:15:34. > :15:35.6:30pm. The strike is due to end at firefighters in England and Wales
:15:36. > :15:37.staged a fresh strike tonight in a dispute with the government over
:15:38. > :15:40.jobs and pensions. Members of the Fire Brigades Union walked out at
:15:41. > :15:43.6:30pm. The strike is due to end at 11pm. This fire station has been,
:15:44. > :15:45.but it has not been crewed by members of the union. We understand
:15:46. > :15:49.they have received a call here. It had been quiet until now, but they
:15:50. > :15:54.had been a huge test in Essex where a major fire broke out the, but it
:15:55. > :15:57.has not been crewed by members of the union. We understand they have
:15:58. > :16:00.received a call here. It had been quiet until now, but there had been
:16:01. > :16:02.a huge test in Essex where a major fire broke out this 120 firefighters
:16:03. > :16:09.were needed to try to bring this blaze at a scrap metal yard in
:16:10. > :16:13.Dagenham. It is one of the busiest weekends of the year for the fire
:16:14. > :16:18.service, as the night sky is lit with bonfires and. And the Fire
:16:19. > :16:26.Brigades Union chose this weekend to highlight its cause. And the Fire
:16:27. > :16:30.Brigades Union chose this weekend to highlight its out in a
:16:31. > :16:34.long-running, bitter dispute over changes to their pensions, including
:16:35. > :16:38.government plans to increase the pensionable age from 55 to at
:16:39. > :16:40.6:30pm, thousands of firefighters across England and Wales walked out
:16:41. > :16:42.in a long-running, bitter dispute over changes to their pensions,
:16:43. > :16:50.including government plans to increase the pensionable age from 55
:16:51. > :16:55.to At this display in Stoke-on-Trent there were strong opinions about the
:16:56. > :17:00.industrial action. I work in the building trade and I can't retire at
:17:01. > :17:03.that age, I do just as physical a job. Naturally you get less fit as
:17:04. > :19:04.you get older. Would you really potential for market rigging is
:19:05. > :19:08.there. The incentives are so So what do those who are going to be the
:19:09. > :19:13.first two sets the new exams make of them? People panic on exams, and if
:19:14. > :19:18.they are not going to mark your coursework, I think you get a better
:19:19. > :19:21.grade with coursework. You build up your whole time in school thinking
:19:22. > :19:28.that you are aiming for these different levels, like A*, A, and
:19:29. > :19:32.now they have changed it. The new exams are designed to be more
:19:33. > :19:34.challenging, and so content will change, too. There will be more
:19:35. > :19:39.emphasis on classic British novelists and poets, so Shakespeare
:19:40. > :19:43.will be studied, but also set texts will include at least one romantic
:19:44. > :19:50.poet and at least one 19th century novel. Changes too to the maths
:19:51. > :19:53.syllabus, more content, probably requiring more teaching time, and we
:19:54. > :19:59.member these? These are currently printed on exam papers but will
:20:00. > :20:04.instead have to be learned by heart. This is from my old GCSE... The year
:20:05. > :20:08.after the new exams are introduced, the plan is for the rest of the core
:20:09. > :20:12.subjects to follow suit, so by 2018, almost all exams will have been
:20:13. > :20:17.changed. It is the timescale that has worried many teachers. Not many
:20:18. > :20:21.people would argue that not having change is good, because change can
:20:22. > :20:24.be effective, but how it is managed and the consultation that takes
:20:25. > :20:29.place with the teaching profession and with the professionals is a
:20:30. > :20:33.concern. GCSEs are not taken -- are taken in Wales and Northern Ireland,
:20:34. > :20:36.but they will not be affected. Scotland has a separate system. But
:20:37. > :21:08.pupils in England will need to prepare for change. David Cameron
:21:09. > :21:11.was in Newport and Cardiff to give the Welsh assembly more control over
:21:12. > :21:15.its finances, including plans to let it control the money it raises in
:21:16. > :21:19.stamp duty. Well, there could even be the chance to raise different
:21:20. > :21:22.rates of income tax, subject to a referendum on the issue. Wales
:21:23. > :21:26.political editor Nick Servini reports.
:21:27. > :21:31.Building a new housing estate in Newport, when these plots are ready
:21:32. > :21:35.to be sold, the buyers will have to pay stamp duty, but rather than
:21:36. > :21:41.being set in Westminster, in future it is down the road in Cardiff. The
:21:42. > :21:45.Deputy Prime Minister, Nick Clegg, today made it one of the taxes that
:21:46. > :21:50.will be controlled by the Welsh government. It is also being given
:21:51. > :21:55.borrowing powers for the first time. A few miles away, David Cameron was
:21:56. > :22:00.shown the area where a new ?1 billion relief road could be built
:22:01. > :22:05.with that money. At a news conference in Cardiff, he said it
:22:06. > :22:09.was all part of developing a strong Wales in a strong United Kingdom. I
:22:10. > :22:13.think it is good for a government to be responsible for raising at least
:22:14. > :22:16.some of the money that it spends, that leads to better conversations
:22:17. > :22:22.about how to raise the money, about how to spend the money, about how to
:22:23. > :22:26.spend it effectively. The First Minister, Carwyn Jones, as been
:22:27. > :22:29.calling for Wales to have parity with Scotland, which already has
:22:30. > :22:34.these powers, and Northern Ireland, which has some powers over borrowing
:22:35. > :22:38.but not over taxes. The announcement today shows that we are being
:22:39. > :22:43.treated as equal partners within the UK, as a government and the people
:22:44. > :22:47.of Wales. The Welsh government is also being given the power in the
:22:48. > :22:50.future to hold a referendum on gaining some control over income
:22:51. > :22:55.tax. Now, at the moment it does not want that control, but if it does in
:22:56. > :22:59.the future, the test it will have is persuading the Welsh public that it
:23:00. > :23:03.can trust the politicians here with a chunk of their earnings. On the
:23:04. > :23:08.streets outside the Welsh assembly, there were mixed thoughts. I would
:23:09. > :23:13.not be happy about it. I feel happy at the way they are. I am not
:23:14. > :23:17.overconfident in the Senate. They should be able to control what the
:23:18. > :23:22.Welsh people do. The income tax as part of that. A significant
:23:23. > :23:25.milestone for devolution in Wales, the challenge now is for the
:23:26. > :23:32.government here to make the best use of it.
:23:33. > :23:37.Now, it is an image that you could forget, a British soldier, his body
:23:38. > :23:43.in flames as he escaped a burning vehicle in Basra in 2005. So what
:23:44. > :23:47.happened to him? After years of rehabilitation, he has taken up a
:23:48. > :23:52.new challenge, learning how to fly. Defence correspondent Caroline Wyatt
:23:53. > :23:56.has been to meet him. Former soldier Karlheinz is learning
:23:57. > :23:59.to fly. Not something he ever thought he would be able to do 80
:24:00. > :24:04.years ago, when he suffered terrible burns to his face and body when
:24:05. > :24:09.serving in Iraq. He was just 17 when he joined the army, 18 when he went
:24:10. > :24:16.on as first operational tour during the Iraq War. Karl was one of those
:24:17. > :24:22.inside the Warrior armoured vehicle when it was petrol bombed during a
:24:23. > :24:26.riot in Basra in September 2005. I did manage to pull myself free, due
:24:27. > :24:30.to the professionalism of my colleagues, they got me to safety
:24:31. > :24:34.and save my life. Soon after that, I was put into an induced coma, I was
:24:35. > :24:40.asleep for ten days while I had operations done. Being only 18 years
:24:41. > :24:44.old, so severely injured, you do think that your life is over and
:24:45. > :24:48.there is nothing more for you. For a time, it did feel like that was it,
:24:49. > :24:53.that was the end. The more I wanted to get better, the more I denied the
:24:54. > :24:55.darkness to take over, the more I found there were other
:24:56. > :25:05.opportunities, I just needed to want them. He has climbed in the
:25:06. > :25:09.Himalayas, Walking With The Wounded and ran 100 marathons in two years
:25:10. > :25:14.to raise money for the hospital that saved his life. After five years of
:25:15. > :25:18.treatment at Selly Oak Hospital in Birmingham and 16 Operation Alice
:25:19. > :25:21.his wounds, his mind is now firmly focused on his future. Here's hoping
:25:22. > :25:26.that the flying training in his doing here it will ultimately follow
:25:27. > :25:31.him -- Fayoum for a pilot 's licence. The 26-year-old was one of
:25:32. > :25:37.a handful of wounded British troops to be chosen for a flying
:25:38. > :25:42.scholarship, sponsored by Boeing. His first aim is to get his private
:25:43. > :25:47.pilot's license, and after that the sky is the limit. With my future, I
:25:48. > :25:51.do hope to see a career in aviation. It will be great to get away
:25:52. > :25:59.commercial pilot level. But as long as it's flying, I'm sure I'm going
:26:00. > :26:01.to be happy. That's all from