:00:08. > :00:11.The government orders an investigation into how banks set
:00:11. > :00:16.key interest rates. But, after numerous scandals, the coalition
:00:16. > :00:20.and Labour can't agree on how the banking sector should be reformed.
:00:20. > :00:22.David Cameron opens the door for a referendum on Europe, saying the
:00:23. > :00:27.majority of people want a change in Britain's relationship with
:00:27. > :00:33.Brussels. World powers agree a plan for a
:00:33. > :00:36.transitional government in Syria, to try to end the fighting.
:00:36. > :00:46.Thousands across the country pay tribute to Britain's fighting men
:00:46. > :00:48.
:00:48. > :00:51.and women, on Armed Forces Day. And Murray's late-night marathon.
:00:51. > :01:01.Britain's number one battles through to the quarter finals at
:01:01. > :01:08.
:01:08. > :01:11.Good evening. The government has ordered an
:01:11. > :01:15.independent review into the setting of key interbank lending rates, at
:01:15. > :01:19.the heart of a scandal involving staff at Barclays and other major
:01:19. > :01:22.banks. The investigation will report back within weeks. Meanwhile,
:01:22. > :01:24.the chief executive of Barclays, Bob Diamond, has been summoned to
:01:24. > :01:34.appear before MPs on Wednesday. Our political correspondent Carole
:01:34. > :01:35.
:01:35. > :01:38.Walker reports. What is to be done about the
:01:38. > :01:40.conduct of some bankers who have lied and cheated for personal gain?
:01:41. > :01:48.The politicians have rather different views of the right
:01:48. > :01:52.response. Barclays was fined �290 million. Some staff had adjusted
:01:52. > :01:55.the rate at which banks lend to each other, the LIBOR, which
:01:55. > :01:59.affects mortgage rates. None of those responsible has been
:01:59. > :02:03.subjected to penalties so far. Today, the Prime Minister has said
:02:03. > :02:05.a review would look at what has gone wrong. It is very important
:02:05. > :02:08.the government takes all the actions necessary, holding bankers
:02:08. > :02:16.accountable, making sure they pay their taxes, there is transparency,
:02:16. > :02:21.the criminal law should go where it needs to uncover wrongdoing.
:02:21. > :02:24.government will hold an independent review to be set up next week. It
:02:25. > :02:29.will propose new regulations on the way the interbank lending rate
:02:29. > :02:32.works. These could be included in the Financial Services Bill going
:02:32. > :02:40.through Parliament, and make criminal prosecutions easier in
:02:40. > :02:44.future. Labour wants a wider inquiry led by a judge, to look at
:02:44. > :02:47.the behaviour and ethics of the banks, along the lines of the Lord
:02:47. > :02:51.Leveson inquiry. Ed Miliband warned the public will not tolerate the
:02:51. > :02:58.establishment closing ranks. David Cameron says he's not really sure
:02:58. > :03:01.we need an inquiry. I've got a message for David Cameron. The
:03:01. > :03:11.British people will not tolerate anything less than a full and open
:03:11. > :03:21.and independent inquiry. Next week, Barclays' chief executive Bob
:03:21. > :03:24.
:03:24. > :03:27.Diamond will be questioned by the Treasury Select Committee. He said
:03:27. > :03:30.inappropriate conduct at the bank was limited to a small number of
:03:30. > :03:32.people. That's unlikely to impress MPs. This latest scandal has
:03:32. > :03:35.already damaged the reputation of Britain's financial services
:03:35. > :03:39.industry. The politicians know they have to agree the right response,
:03:39. > :03:42.if they are to restore public trust. Carole is in Westminster now. We
:03:43. > :03:49.heard the Prime Minister's comments on the banks today. He's also had
:03:49. > :03:53.some new things to say on the issue of a referendum on Europe?
:03:53. > :04:00.The Prime Minister riding for tomorrow's Sunday Telegraph has
:04:00. > :04:04.taken a step closer to offering a referendum on Europe, which his MPs
:04:04. > :04:11.have been pushing him on. He says it isn't right to have a referendum
:04:11. > :04:17.yet. Europe is changing very fast, so it is our relationship with it.
:04:17. > :04:22.He wants to get more powers back, legislation on home affairs, social
:04:22. > :04:27.affairs, the Working Time Directive. He thinks that could in future be
:04:27. > :04:31.put to the British people at the next election or in a referendum.
:04:31. > :04:37.No firm commitment yet but a step closer.
:04:37. > :04:42.This comes after renewed pressure from within his own party.
:04:42. > :04:46.The 100 MPs this week have been writing on this issue. Liam Fox
:04:46. > :04:51.will deliver a speech on Monday in which he will say that not only
:04:51. > :04:57.should Britain begin now a renegotiation of our relationship
:04:57. > :05:03.with Europe, to have a much looser economic relationship. But
:05:03. > :05:07.furthermore, if Britain doesn't have what -- doesn't get what it
:05:07. > :05:11.wants, the government should be prepared to hold a referendum and
:05:11. > :05:16.recommend we pull out altogether. That is much further than David
:05:16. > :05:21.Cameron will go, but it will be seen as a rallying cry for many
:05:21. > :05:24.Conservative MPs. A international meeting on the crisis
:05:24. > :05:27.in Syria has called for a transitional government to be set
:05:27. > :05:30.up, to end the fighting. But the summit of Foreign Ministers ended
:05:30. > :05:34.without an explicit demand for President Assad to step down, as
:05:34. > :05:36.Britain and the United States had hoped. The meeting took place in
:05:36. > :05:43.Geneva, from where our correspondent Paul Wood sent this
:05:43. > :05:48.report. Without a viable peace plan, this
:05:48. > :05:50.is a catastrophe. A civil war, perhaps a regional conflict. That
:05:50. > :05:59.was the United Nations envoy's warning. His solution, a
:05:59. > :06:02.transitional government of national unity. A transitional governing
:06:02. > :06:05.body could include members of the present government, and the
:06:05. > :06:09.opposition, and other groups, should be formed on the basis of a
:06:09. > :06:19.mutual consent. To the United States, that can only mean that
:06:19. > :06:24.
:06:24. > :06:28.President Assad would step down. What we have done here is to strip
:06:28. > :06:35.away the fiction that he, and those with blood on their hands, can stay
:06:35. > :06:38.in power. We and our partners made clear to Russia and China that it
:06:38. > :06:41.is now incumbent upon them to show President Assad the writing on the
:06:41. > :06:45.wall. Russia disagrees. They don't want another Western-led regime
:06:45. > :06:55.change in the Middle East. They continue to support President Assad.
:06:55. > :06:59.
:06:59. > :07:02.Britain would have liked today's agreement to go much further.
:07:02. > :07:05.is a compromise between the countries which differ in
:07:05. > :07:10.perspective on the Syrian crisis. Meanwhile, it's believed some 700
:07:10. > :07:14.people were killed in Syria this week alone. The opposition says
:07:14. > :07:16.1600 have died in total in the uprising, almost one-third of those,
:07:16. > :07:21.5,000, since a United Nations ceasefire was announced two months
:07:21. > :07:27.ago. The opposition have always made clear they will not consent to
:07:27. > :07:30.join in any government of which Assad remains a part. He has never
:07:30. > :07:35.given any sign he would contemplate stepping down. The same stalemate
:07:35. > :07:42.exists now as before this meeting convened. Every day, the absence of
:07:42. > :07:45.a political statement means the violence is steadily worsening.
:07:45. > :07:50.The Foreign Secretary will be speaking to Andrew Marr tomorrow
:07:50. > :07:54.morning, here on BBC One at 9.30am. Egypt's new president, Mohammed
:07:54. > :07:57.Morsi has been formally sworn in. Backed by the Muslim Brotherhood,
:07:57. > :08:00.he's promised his rule will signal "a shining new page in his
:08:00. > :08:02.country's history." Mr Morsi is Egypt's first civilian leader, and
:08:02. > :08:04.has vowed to reclaim powers recently stripped from the
:08:04. > :08:14.presidency, by the country's powerful military. Our
:08:14. > :08:20.
:08:20. > :08:23.correspondent Jon Leyne reports from Cairo.
:08:23. > :08:25.In the presidential limousine, surrounded by police motorcycle
:08:25. > :08:32.outriders, is Mohamed Morsi, the once banned Muslim Brotherhood
:08:32. > :08:36.member. Egypt can't quite believe it, or the fact he did not demand
:08:36. > :08:39.that all streets should be cleared of traffic for him, as they always
:08:39. > :08:43.used to be for Hosni Mubarak. It wouldn't be Cairo without traffic
:08:43. > :08:51.chaos. First, the oath of office at the constitutional court. Then, to
:08:51. > :09:01.Cairo University. He pledged to revive the country, after years of
:09:01. > :09:06.
:09:06. > :09:10.decline. An ambitious address which will give him much to live up to.
:09:10. > :09:14.TRANSLATION: Today, together, we start a new phase in the history of
:09:14. > :09:16.Egypt, and we turn over a hideous page, and open a new shining page,
:09:17. > :09:20.God willing. Among the crowd outside, hopes were running sky-
:09:20. > :09:25.high. I hope it will be a more democratic country. All Egyptians
:09:25. > :09:35.are equal. I hope the constitution will be carried out. That
:09:35. > :09:38.
:09:38. > :09:42.everything in Egypt will be better. Everything Mohamed Morsi has done
:09:42. > :09:46.today has has been designed to show Egypt is entering a new era. He
:09:46. > :09:50.wants to say he is a man of the people who will work for the
:09:50. > :09:53.Egyptian people to whom he owes his power and authority. But who has
:09:53. > :09:56.the real power? Today, the military leaders saluted their new President.
:09:56. > :10:02.But, even as the military formally handed over control, the question
:10:02. > :10:05.remains unresolved. Engineers working on the East Coast
:10:05. > :10:08.Mainline, which was damaged during the storms on Thursday, say
:10:08. > :10:11.services should be back to normal tomorrow. The Environment Secretary
:10:11. > :10:21.Caroline Spelman has been in the north east, seeing for herself some
:10:21. > :10:21.
:10:21. > :10:25.of the flood damage. Judith Moritz reports from Gateshead.
:10:25. > :10:29.This torrent pouring done the Gateshead Road was filmed on a
:10:29. > :10:34.mobile phone on Thursday. The rain came down so quickly, the trains
:10:34. > :10:37.were overwhelmed and this area was suddenly submerged. Residents
:10:37. > :10:42.looking out of their windows couldn't believe what they were
:10:42. > :10:46.seeing, as gardens disappeared underwater. Kitchens flight this
:10:46. > :10:51.one belonging to andrew macro were destroyed, his sitting room was
:10:51. > :10:59.ruined. Today, with what have gone, Andrew was trying to make the best
:10:59. > :11:05.of a bad situation. Set a date is gone. All of the flooring has come
:11:05. > :11:10.up. A what about the cost, are you insured? No insurance. It is going
:11:10. > :11:15.to take a while to get back on my feet. A few doors away, the
:11:15. > :11:17.Environment Secretary came to see the flood damage for herself.
:11:17. > :11:22.the unpredictability of the increasing frequency of extreme
:11:22. > :11:26.weather events we are seeing, our part as a government is to build
:11:26. > :11:32.strong flood defences and make sure insurance remains universal and
:11:32. > :11:37.affordable. This area experienced one month's rainfall in two hours.
:11:37. > :11:41.Houses but this one which aren't on riverbanks or in known flood areas
:11:41. > :11:46.were simply caught out by a few hours of rain which will now lead
:11:46. > :11:51.to months of disruption. After some terrible delays on the rail network,
:11:51. > :11:55.sections of track but this one in Northumberland are being rebuilt.
:11:55. > :12:00.Tons of rubble had slid onto the line. Trains between London and
:12:00. > :12:04.Leeds are now running. There are delays between Newcastle and
:12:04. > :12:07.Edinburgh but that is expected to return to normal tomorrow.
:12:08. > :12:11.The Members of the Army, Navy and Royal Air Force have been taking
:12:11. > :12:14.part in events across the country, to mark Armed Forces Day. In
:12:14. > :12:17.Plymouth, thousands lined the streets as men and women from all
:12:17. > :12:21.three services marched through the city. And in Afghanistan, the Chief
:12:21. > :12:31.of the Defence Staff has paid tribute to all those who serve. Our
:12:31. > :12:33.
:12:33. > :12:36.defence correspondent Caroline Wyatt reports.
:12:36. > :12:41.A band of the Royal Marines marched through Plymouth to celebrate Armed
:12:41. > :12:49.Forces Day. Reservists and cadets joined those serving as thousands
:12:49. > :12:53.of well-wishers came to show their support. The Prime Minister was
:12:53. > :12:59.there to meet veterans of previous wars. A hero of a more recent
:12:59. > :13:03.conflict, Lance Corporal Johnson Beharry, held the Olympic torch.
:13:03. > :13:07.He earned the highest commendation for his bravery in Iraq, the
:13:07. > :13:15.Victoria Cross. The saving the lives of his colleagues. Across
:13:15. > :13:23.Scotland, thousands took part in a series of events. The country's
:13:23. > :13:26.four largest cities held parades. In Helmand, the chief of the
:13:26. > :13:31.defence staff came to meet and thanked the men and women serving
:13:31. > :13:37.on operations in the sweltering Afghan summer heat. My overriding
:13:37. > :13:42.message is a very big thank you to the -- and the people in Britain
:13:42. > :13:45.are taking this as an opportunity to thank the troops. It is an
:13:45. > :13:51.opportunity for the armed forces to say Big Ben due to people who
:13:51. > :13:58.support us so well. The British forces here had a normal working
:13:58. > :14:08.day. On patrol or training Afghan forces, as the handover of security
:14:08. > :14:09.
:14:09. > :14:13.gathered so -- gathers pace. This brigade says this market has not
:14:13. > :14:17.seen a single shot fired in the months they have been here. They
:14:17. > :14:23.point to it as proof that all the hard work and many sacrifices in
:14:23. > :14:27.Helmand are finally bearing fruit. Sport now. And for a full round up
:14:27. > :14:37.of all the day's action, here's Katy Gornall at the BBC Sport
:14:37. > :14:40.
:14:40. > :14:42.Centre. Tennis first. Andy Murray was deep
:14:42. > :14:45.into a dramatic match on centre court against Marcos Bhagdatis,
:14:45. > :14:48.after a break to close the roof on centre court.
:14:48. > :14:51.Centre court in the evening has proved a difficult place for the
:14:51. > :14:56.favourite. How would Andy Murray find it against Marcos Baghdatis?
:14:56. > :15:03.Tight, was the answer, at least in the first set, until he broke in
:15:03. > :15:08.the 11th game. Even when it won, might Andy Murray come up short?
:15:08. > :15:17.The answer in the second set was yes. Marcos Baghdatis began to look
:15:17. > :15:22.at home. And who would soon break Andy Murray. The British No. 1
:15:23. > :15:27.could only watch the second set slip away. One set all and it felt
:15:27. > :15:32.like a relief when the match was suspended for the roof to be closed.
:15:32. > :15:37.Initially, Andy Murray could take advantage. While he failed to
:15:37. > :15:45.convert break points, Marcos Baghdatis did. It was he who began
:15:45. > :15:54.to play with aplomb. Andy Murray, in contrast, looked disconsolate.
:15:54. > :15:59.But then he began to haul himself back. Whether furious with himself
:15:59. > :16:06.for the ball for life, he broke free, and broke Marcos Baghdatis
:16:06. > :16:11.for the set. That was 2-One, Andy Murray had
:16:11. > :16:17.only 28 minutes before play was going to be suspended at 11pm, sure
:16:17. > :16:22.you can finish the match? How wrong we were, 6-1 he took the 4th set.
:16:22. > :16:27.Going through to the second week. As he said, I was very nervous
:16:27. > :16:37.today, a tricky first week and I will need to play better in the
:16:37. > :16:43.
:16:43. > :16:53.second week. At least he will have a chance.
:16:53. > :16:55.
:16:55. > :16:58.A poor start left Usain Bolt trailing here. But he still
:16:59. > :17:02.qualifies for the London Olympics. A Britain will not be represented
:17:02. > :17:04.in the women's 4x100m relay at the Olympics, after the team were
:17:04. > :17:11.disqualified from their semi-final at the European Championships in
:17:11. > :17:13.Helsinki. One runner, Haley Jones, was adjudged to have run out of her
:17:13. > :17:17.lane. The disqualification has wider implications as well. It
:17:17. > :17:20.means Team GB drop to 17th in the women's sprint relay rankings, with
:17:21. > :17:23.no events remaining, and therefore will not be able to compete at the
:17:23. > :17:26.London Olympics. Bradley Wiggins said he'd had a
:17:26. > :17:29."perfect start", after his second placed finish in the Tour de France
:17:30. > :17:33.prologue in Liege today. Team Sky's Wiggins, who is bidding to become