01/11/2013 BBC News at Ten

More dramatic claims in the phone hacking trial as the prosecution

makes its case. Do his phone, what News of the World editor Andy

Coulson is alleged to have told a journalist investigating a

celebrity. Allegations are made that a voice mail left by Prince Harry

was also hacked by the paper. We will be live at the Old Bailey for

all the day's developments. The BBC broadcaster Paul Gambaccini is

arrested on suspicion of historical sex offences. The Pakistan Taliban

tell the BBC their leader has been killed in a US drone attack. A

strike by firefighters on one of the busiest nights of the year in a

protest over pensions. And eight years on from one of the defining

images of the Iraq War, how the British soldier who escaped a

burning vehicle has rebuilt his life.

Coming up in Sportsday on BBC News, Joe Hart is dropped that Manchester

City, the England goalkeeper has been out of form recently and will

not start against Norwich tomorrow. Hello, good evening. Prosecutors at

the Old Bailey have said senior journalists at the News of the World

must have known the extent of phone hacking by its reporters. Jurors

were told that the former editor, Andy Coulson, told a correspondent

to do the phone of celebrity Calum Best. It is also alleged that a

message left by Prince Harry on a friend's pole was listened to. Mr

Coulson and seven other defendants deny all the charges. Tom Symonds is

at the Old Bailey for us with more. Yes, Kate, this whole affair came to

light in 2006 when it was revealed that the News of the World had used

phone hacking to break stories about the private lives of Prince William

and Prince Harry, but there was no trial then because the hackers

pleaded guilty, and so no details emerged. But they did today on the

third day of this highly complex case.

The jury was told that one alleged use of phone hacking targeted Prince

Harry when he was studying at Sandhurst. The News of the World

intercepted a voice mail message she had left for his private secretary,

who had served in the SAS. News of the World Royal editor Clive

Goodman turned that into a story that the prince was getting his

aides to do his homework for him. A key allegation in this trial is that

editor Andy Coulson also knew the source of this story and many others

was illegal voice mail interception. But the court heard there was a

problem with phone hacking. It's stories like this were challenged,

the paper could not produce the evidence to back them up because it

had been obtained illegally, and if stories were too precise, then the

fact they came from voice mails might be spotted. Another story,

another allegation - in 2006, the News of the World was planning a big

story about Calum Best, the son of footballer George. But the paper's

news editor, Ian Edmondson, was worried he might find out.

He thought he might give the story to a rival paper to spoil the scoop.

In an e-mail read to the jury, Andy Coulson writes...

A clear sign, the prosecutor said, that he knew about and ordered

hacking. He is also accused of agreeing a payment for two phone

directories for the Royal household. The court heard they were stolen

from St James's Palace by two unnamed police officers. They wanted

?1000 each, and it is claimed Clive Goodman insisted it had to be paid

in cash. More evidence to come that MOD sources were leaking stories for

money, including, it was claimed in court today, news of the death of

active service personnel. Rebekah Brooks is charged with agreeing the

payments while editor of the Sun. It is claimed illegal sources were paid

by cash transfers to branches of Thomas Cook, which they could then

pick up without being traced. Andy Coulson, Rebekah Brooks and the

other six defendants have all pleaded not guilty to all the

charges. So over the last three days, the

prosecutor, Andrew Edis, has set out the case on phone hacking, on

illegal payments to public officials, and on Monday he says he

will give us the last part of the prosecution case, especially against

Rebekah Brooks and three others, and that part, he says, is the cover-up.

The BBC broadcaster Paul Gambaccini has been arrested following

historical allegations of sexual abuse. It falls as part of Operation

Yewtree, a series of police investigations stemming from the

Jimmy Savile scandal. He has denied the allegations. June Kelly is here,

what do we know? Of course, Paul Gambaccini is one of the most

established names in BBC Radio. He was arrested on Tuesday, early in

the morning at his home in south London and spent the day in custody

being questioned about historical sexual allegations. He comes under

the strand of others in the Yewtree investigation, which means that

these allegations are not linked to Jimmy Savile. He has been bailed

until January, so too was another man who was arrested on the same

day, and they bring to 16 the number who have been arrested under

Yewtree. Any statement from Mr gamba Jeannie? We have a statement from

his spokesman who says he denies all the allegations. He answered all the

police questioned and was cooperative. In another statement

the BBC said that the present himself had decided that, in the

light of the media attention, he did not want to be on air at present. He

has a Saturday night show on Radio 2, and tomorrow night's addition

have already been recorded, but that will now be bold. He was also due to

have a documentary on Radio 4 later this month, which is linked to the

50th anniversary of the assassination of President Kennedy,

but that will also not be broadcast. The head of the Pakistani Taliban

has been killed in a US drone strike. Hakimullah Mehsud's death

was confirmed to the BBC by high high wrecking member of the Taliban

in Pakistan. -- a high-ranking member. It is believed several

people were killed when a missile was fired at a house and vehicle in

a tribal area of north Pakistan. James Robbins has more.

Hakimullah Mehsud said death could come to him at any time. The head of

the Pakistan Taliban justify the killing of many others as jihad in a

rare and final interview with the BBC a few weeks ago. TRANSLATION: We

have targeted those with the infidels, America, and we will

continue to do that, but as for the attacks against the property and

lives of Muslims, we deny any link to them. Mehsud made himself one of

the most wanted by appearing alongside a suicide bomber who went

on to kill seven CIA officers in Afghanistan. Our jihad, in July,

will continue... Hakimullah Mehsud became leader of the Pakistani

Taliban aged only 30 in 2009 after his predecessor was also killed by a

US drone, and his own deputy died in yet another drone attack just a few

months ago. Mehsud had a $5 million FBI bounty on his head, and he was

widely blamed for the deaths of thousands, the vast majority

Pakistanis. He was targeted by a drone missile some three miles north

of Miranshah, the capital of North Waziristan, the tribal region of

Pakistan which is a stronghold for Taliban and Al-Qaeda linked

militants. Many Pakistanis will not mourn Mehsud, despite his denials,

he is held responsible for increasingly frequent bomb attacks

across the country. That has turned many people, but certainly not all,

against him. Recently, the Pakistani government reached out to him

offering peace talks. Instead, his death weakens the Taliban, but they

also end any prospect of negotiation. The peace talks were a

nonstarter, and after his death it will not be possible. Much of

Pakistan denounces all America's drone attacks. Coincidentally, there

was another series of protests today. They reflect public opinion,

and the government in Islamabad has been quick to condemn the use of

drones in the killing as a violation of sovereignty, however much it

might privately celebrate the result. So it seems there will be no

more extraordinary pictures Mehsud and his young Taliban followers at

play. But however they may be weakened, the militants will fight

on and a new leader. Here, the Royal Bank of Scotland has

announced it will not split its business in two as it tries to

recover from the financial crisis but instead create an internal

so-called bad bank. It will ringfenced ?38 billion worth of bad

assets, such as loans it does not ever expect to get repaid. This

morning RBS announced a pre-tax loss of ?634 million in the third

quarter, and shares in the bank, mainly owned by the taxpayer, today

fell by 7.5%, as business editor Robert Peston reports.

Royal Bank of Scotland, a bank still in need of mending, unveiling a plan

today to quarantine ?38 billion of poisonous radioactive loans with the

hope of getting rid of all of them over three years. Given that this

?38 billion of toxic debt is absolutely the most poisonous that

RBS has, the stuff they cannot shift, wouldn't it have been better

to extract it and put it on the taxpayers' balance sheet? The best

advice I got was that the best thing for the British taxpayer was the

internal bank, splitting it into a good and bad bank, but within the

umbrella of the existing bank. A new chief executive at RBS, breaking by

tradition by owning up that the bank has not served its many millions of

customers properly after the deputy Governor of the Bank of England

savaged its performance in small business lending.

This report is shocking, I mean it says your people have not got the

right skills, that the targets that the bank said were not appropriate,

that there has been fragmentation of management at this business. You did

nothing right in that area, did you come five years ago we were broke,

and that was because we lend money to the wrong people. You tighten the

organisation, and that is what we did five years ago. What is showing

in that report now is we probably tightened up too much, and we to get

this bank back to being a lot more normal and how it works with

customers, and that is what we will do. Chums again, Chancellor and bank

boss visiting a small business customer, in agreement that RBS

should give up its global ambitions in order to become a mainly UK

focused retail bank. A peace treaty after the tension that characterise

Mr Osborne's relationship with RBS under the previous chief executive.

Mending the bank is plainly a big job, is there any chance it will

begin to get some of the ?46 billion that we as taxpayers have invested

in it before the general election? Frankly, I think it is unlikely we

will be able to sell RBS before the general election, just because there

is a lot of work to be done to make sure that RBS cleans up the mistakes

of the past, get out of its big American operations and focuses on

Britain. RBS was the biggest bank in the world and the most dangerous to

taxpayers' well. Now, to redeem itself, it's just wants to get back

to the basics of British banking. Barclays has suspended six traders

as part of an international investigation into suggestions that

the foreign currency exchange market could have been rigged. Yesterday it

emerged that the role Bank of Scotland had taken similar action

against two traders. Hugh Pym, who revealed today's development, has

this report. It was a scandal which walked the banking world. It

resulted in big fines and struck the industry's name through the mud. The

question now, are more skeletons about to be pulled out of the

banking cupboard? Investigations this time focusing on foreign

currency trading, and whether dealers might have colluded to try

to move exchange rates to suit their own interests. One former trader,

now a senior academic, says the potential for market rigging is

there. The incentives are so large for practices of this kind to occur

that I'd be very surprised if they didn't occur. You only have to move

the market for small amount of time and a very small amount to make

literally millions of dollars of profit. Regulators are looking at

the setting of key currency benchmarks, known as the London fix.

Each day at 4pm, average currency rates over a one-minute period are

calculated. It's possible that banks could secretly agreed to trade at

certain levels over that time to manipulate the rates. The ai,

executives at three other banks have been sent on leave. Some market

experts say it would be surprising if anything out of the ordinary had

happened. These investigations are at an early stage, and let's hope

there's nothing in them. Anything on this scale is completely unheard-of

in the foreign exchange market, executives at three other banks have

been sent on leave. The market experts say it would be surprising

if anything out of the ordinary had happened. These investigations are

at an early stage, and let's hope there's nothing in them. Anything on

this scale is completely unheard-of in the foreign exchange would be

very sad and new development. Regulators in New York and S cup

also contacted banks about foreign exchange dealing, but for London

this is a big issue because it is such a big player in the world

currency the city will be hoping this investigation does not drag on

and cloud the reputation of London as an important financial centre.

Certainly there will be hopes it is not a the libel scramble, and the

damaging fallout which followed in a dispute with the government over

jobs and pensions. Members of the Fire Brigades Union walked out at

6:30pm. The strike is due to end at firefighters in England and Wales

staged a fresh strike tonight in a dispute with the government over

jobs and pensions. Members of the Fire Brigades Union walked out at

6:30pm. The strike is due to end at 11pm. This fire station has been,

but it has not been crewed by members of the union. We understand

they have received a call here. It had been quiet until now, but they

had been a huge test in Essex where a major fire broke out the, but it

has not been crewed by members of the union. We understand they have

received a call here. It had been quiet until now, but there had been

a huge test in Essex where a major fire broke out this 120 firefighters

were needed to try to bring this blaze at a scrap metal yard in

Dagenham. It is one of the busiest weekends of the year for the fire

service, as the night sky is lit with bonfires and. And the Fire

Brigades Union chose this weekend to highlight its cause. And the Fire

Brigades Union chose this weekend to highlight its out in a

long-running, bitter dispute over changes to their pensions, including

government plans to increase the pensionable age from 55 to at

6:30pm, thousands of firefighters across England and Wales walked out

in a long-running, bitter dispute over changes to their pensions,

including government plans to increase the pensionable age from 55

to At this display in Stoke-on-Trent there were strong opinions about the

industrial action. I work in the building trade and I can't retire at

that age, I do just as physical a job. Naturally you get less fit as

you get older. Would you really potential for market rigging is

there. The incentives are so So what do those who are going to be the

first two sets the new exams make of them? People panic on exams, and if

they are not going to mark your coursework, I think you get a better

grade with coursework. You build up your whole time in school thinking

that you are aiming for these different levels, like A*, A, and

now they have changed it. The new exams are designed to be more

challenging, and so content will change, too. There will be more

emphasis on classic British novelists and poets, so Shakespeare

will be studied, but also set texts will include at least one romantic

poet and at least one 19th century novel. Changes too to the maths

syllabus, more content, probably requiring more teaching time, and we

member these? These are currently printed on exam papers but will

instead have to be learned by heart. This is from my old GCSE... The year

after the new exams are introduced, the plan is for the rest of the core

subjects to follow suit, so by 2018, almost all exams will have been

changed. It is the timescale that has worried many teachers. Not many

people would argue that not having change is good, because change can

be effective, but how it is managed and the consultation that takes

place with the teaching profession and with the professionals is a

concern. GCSEs are not taken -- are taken in Wales and Northern Ireland,

but they will not be affected. Scotland has a separate system. But

pupils in England will need to prepare for change. David Cameron

was in Newport and Cardiff to give the Welsh assembly more control over

its finances, including plans to let it control the money it raises in

stamp duty. Well, there could even be the chance to raise different

rates of income tax, subject to a referendum on the issue. Wales

political editor Nick Servini reports.

Building a new housing estate in Newport, when these plots are ready

to be sold, the buyers will have to pay stamp duty, but rather than

being set in Westminster, in future it is down the road in Cardiff. The

Deputy Prime Minister, Nick Clegg, today made it one of the taxes that

will be controlled by the Welsh government. It is also being given

borrowing powers for the first time. A few miles away, David Cameron was

shown the area where a new ?1 billion relief road could be built

with that money. At a news conference in Cardiff, he said it

was all part of developing a strong Wales in a strong United Kingdom. I

think it is good for a government to be responsible for raising at least

some of the money that it spends, that leads to better conversations

about how to raise the money, about how to spend the money, about how to

spend it effectively. The First Minister, Carwyn Jones, as been

calling for Wales to have parity with Scotland, which already has

these powers, and Northern Ireland, which has some powers over borrowing

but not over taxes. The announcement today shows that we are being

treated as equal partners within the UK, as a government and the people

of Wales. The Welsh government is also being given the power in the

future to hold a referendum on gaining some control over income

tax. Now, at the moment it does not want that control, but if it does in

the future, the test it will have is persuading the Welsh public that it

can trust the politicians here with a chunk of their earnings. On the

streets outside the Welsh assembly, there were mixed thoughts. I would

not be happy about it. I feel happy at the way they are. I am not

overconfident in the Senate. They should be able to control what the

Welsh people do. The income tax as part of that. A significant

milestone for devolution in Wales, the challenge now is for the

government here to make the best use of it.

Now, it is an image that you could forget, a British soldier, his body

in flames as he escaped a burning vehicle in Basra in 2005. So what

happened to him? After years of rehabilitation, he has taken up a

new challenge, learning how to fly. Defence correspondent Caroline Wyatt

has been to meet him. Former soldier Karlheinz is learning

to fly. Not something he ever thought he would be able to do 80

years ago, when he suffered terrible burns to his face and body when

serving in Iraq. He was just 17 when he joined the army, 18 when he went

on as first operational tour during the Iraq War. Karl was one of those

inside the Warrior armoured vehicle when it was petrol bombed during a

riot in Basra in September 2005. I did manage to pull myself free, due

to the professionalism of my colleagues, they got me to safety

and save my life. Soon after that, I was put into an induced coma, I was

asleep for ten days while I had operations done. Being only 18 years

old, so severely injured, you do think that your life is over and

there is nothing more for you. For a time, it did feel like that was it,

that was the end. The more I wanted to get better, the more I denied the

darkness to take over, the more I found there were other

opportunities, I just needed to want them. He has climbed in the

Himalayas, Walking With The Wounded and ran 100 marathons in two years

to raise money for the hospital that saved his life. After five years of

treatment at Selly Oak Hospital in Birmingham and 16 Operation Alice

his wounds, his mind is now firmly focused on his future. Here's hoping

that the flying training in his doing here it will ultimately follow

him -- Fayoum for a pilot 's licence. The 26-year-old was one of

a handful of wounded British troops to be chosen for a flying

scholarship, sponsored by Boeing. His first aim is to get his private

pilot's license, and after that the sky is the limit. With my future, I

do hope to see a career in aviation. It will be great to get away

commercial pilot level. But as long as it's flying, I'm sure I'm going

to be happy. That's all from