12/09/2011 GMT with George Alagiah


Zeinab Badawi presents international news and intelligent analysis going live to the heart of the day's top global story. Plus up-to-the-minute global business news.

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The question that just won't go away - is Greece strong enough to


repay its debts? Banking shares continue to drop across Europe as


investors fear some may have too Good afternoon, I'm Zeinab Badawi.


In GMT today: More than 100 people are killed in Kenya after a Fire


breaks out in a pipeline in the capital Nairobi. Britain's David


Cameron in Russia five years after the two fell out over the murder of


a Kremlin critic in London. Is he putting commercial interests above


all else? And, as one of Colonel Gaddafi's


sons is found in neighbouring Niger, we talk to NATO's Secretary-General


about its continuing role in the Libya conflict.


Welcome. It's 12.30 here in London. It's 7.30am in Washington and


1.30pm in Europe's major financial centres where mounting concerns


that Greece will be unable to repay its debts have sent shares tumbling.


Banking stocks have been hit particularly hard, despite repeated


assurances from politicians that the eurozone is doing all it can to


avoid any country defaulting on its debt.


In London, shares in banks dropped sharply at one point as investors


digested the impact of new recommendations on banking reform.


Our World Affairs Correspondent, Humphrey Hawksley, has more.


This week's run on the markets began in Asia. A familiar drop now


as Europe searches for political leadership in its financial crisis.


Investors sought sanctuary too in Asian currencies, the yen hitting a


ten year high against the flailing euro.


Europe cannot tackle the Greek sovereign debt crisis. This means


Greece will go down the way of ordinary default and bankruptcy.


That is the unthinkable. Protests continue in Greece as


fears spread that a default on its debt might become inevitable.


How to match the anger of its citizens against the demands to


have its lenders. If it were only Greece, there might


be a straighter way out, but Portugal, Spain and Ireland and


others are vulnerable. Europe's markets opened and Asia's


gloom spread there. Divisions within the European


Central Bank, no clear signal from G7 Finance Ministers at the weekend,


too much uncertainty for too long. Let's talk some more about this, we


are joined from Central London by Charlie Parker, Investment Editor


of City Wire. Let's look at the worries for the markets. First of


all, the banks, this concern that a lot of them, particularly French


banks, are just too exposed to Greek debt? That's it. I think


Greek debt is seen as the thin end of the wedge. There are all the


deliberations around Greece and it causes investors to say, if they


can't resolve the crisis in Greece, how will they cope if it really


does come to a serious crisis in one of the bigger markets like


Italy and Spain. Those markets are only being held away from crisis.


The cost of their borrowing is only being held away from crisis levels


because the European Central Bank's gobbling up the debt and keeping


the market away from that scenario. Diviss in the European Central Bank,


a lack of leadership politically all causes uncertainty and worry --


divisions in the European Central Bank. The banking business is a


global one. We have seen major recommendations for reform in


British banking and so how do they fit in in all these pictures? Is


that creating more uncertainty or providing reassurance?


proposals we have seen today were well leaked. The commission hasn't


shocked markets sothere was a bit of a movement as it was digested


but nothing too radical. It fit into a global framework which is


trying to sure up banks to a level of confidence in the financial


system more Jonly. Of course, the events in Europe are so serious


that we worry about the sort of financial equivalent of a nuclear


event, something like the Italian bun market hitting a crisis. Could


a crisis like that be avoided? Maybe but not necessarily. Banks


around the world need to have enough capital to keep going.


Thank you very much. Now a look at the other stories making headlines:


Many people are reported to have been killed in Kenya after an


explosion in a fuel pipeline in the capital nay owe by. Local police


say more than 100 people have died and some are being treated for


burns -- Nairobi. The pipeline runs between the


centre of Nairobi and the airport. A short time ago, we got this


update. We have been able to establish that fuel leaked into the


open sewers from the nearby oil depot. As residents were trying to


siphon the fuel out of the sewer, somebody lit a cigarette and this


spread across the slum, residents' homes were burnt, people were said


to be scattering all over to save them.


Now, the Australian Prime Minister, Julia Gillard, says she'll revive


her plan to send asylum seekers to Malaysia, despite the Australian


High Court ruling it illegal. She says she will amend the legislation


to meet the court's objections. Under the scheme, up to 800 asylum


seekers would be processed in Malaysia.


In India, more than a million people have been displaced and at


least 16 killed by flooding in Orissa. Heavy rains submerged more


than 2,500 villages. Several rivers overflowed, blocking access to key


road links. A court in South Africa has ruled


that a song calling for white farmers to be shot constitutes what


it termed hate speech. The song was performed by the youth leader of


the African National Congress Julius Malema who said it was a


legacy against the fight of apartheid. The only hockey player


who initially survived last week's Russian plane crash has died of his


injuries in hospital. Alexander Galimov was one of those not killed


instantly in the crash but suffered severe burns to 90% of his body.


Let's stay in Russia. That's where the British Prime Minister, David


Cameron, is visiting. He's been having talks in Moscow with


President Dmitry Medvedev on the first such visit by a British Prime


Minister since 2006. Mr Cameron is trying to mend relations after a


rift oaf the murder of a Russian dissident in London in 2006.


Speaking at a joint press conference earlier, Mr Cameron says


the UK and Russia share many interests and challenges.


If we can build a stronger relationship, I believe both our


countries will gain. Of course, it's no secret that there are


difficult issues where we differ. We can't protend these don't exist.


We must continue to have frank discussions about them, as we have


had today. At the same time, without wishing these issues away,


it's right to rebuild a more effective relationship on those


things that are vital to the safety and well-being of people in Russia


and in Britain. I'm pleased the President and I


have agreed to strengthen our cooperation in a number of areas.


First on our commercial relationship, we 'greeed on the


need to increase trade and investment between Britain and


Russia and on the partnership we signed to support modernisation,


it's good for Britain to grow our economy to other parts of the world


like Russia. Britain is strong in the financial and business services


and sectoral expertise that a diverse economy needs. We are


announcing �2 15 million worth of new commercial deals, creating 500


jobs back home and safeguarding thousands more. From engineering


companies working on the new Moscow companies providing cutting edge


technology for the Moscow planetarium. David Cameron talking


in the past hour. Joining us now is Konstantin Eggert, the


International Affairs commentator for The local radio station. When


we look at relations, do bilateral relations between these two


countries matter very much? I think they do. First of all, because the


Russian political tradition is very much focused on bilateral, rather


than multi-lateral ties even with Europe Russia prefers to deal on a


case by case basis with favourite countries or not so much favourite


countries. Britain's one of the top investors in Russia. It's not for


nothing that the President, the CEO of BP was in Moscow together with


Prime Minister Cameron, so it's also important. I think there are


still big respects for the UK for its role in global politics, its


ability to punch above its weight in global affairs. That is


important too. We shouldn't felt that anything between 300 and


400,000 people are coming from the former Soviet Union, mostly


actually from Russia, residing in the UK now. That also creates a web


of connections. How aware are the Russians that, as


David Cameron arrives in Moscow, ringing in his ears are the


criticisms here that he is sacrificing human interest concerns


and putting commercial and economic links ahead of those?


Well, that's how the specially state-controlled television here


will spin it, that is interests prevail over values, that's going


to be the main thing. I think that there is more nuance of the British


position. I've had a lack of speaking to William Hague this


morning and he said emphatically in his view the relationship or the


relation link between human rights and investors' rights is pretty


strong so I don't think it goes away that much. But let's face it,


it's nothing that new. There was a desire to mend fences between


Moscow and London for quite some time and it was just really


resolutely approached by the current government now. When you


look at the body language between David Cameron and Dmitry Medvedev,


very warm, they joked about the fact that David Cameron was


approached to become a member of the KGB some years ago. Does this


matter? Vladimir Putin is the man that David Cameron might have to do


business with if he elected President next year? That is a


possibility. I do think that, especially in view of the British


business interests, that is one of the sort of very clear aspects of


this visit. With regard to the body language, I would be interested to


see what would be the body language between David Cameron and Vladimir


Putin. Their meeting should start any minute now, as far as I


understand. I think Medvedev and Cameron have a good link. They've


met each other a few times before, so it wasn't really a meeting of


strangers. Konstantin Eggert, on a clear sunny


day there in Moscow, thank you very much.


Still to come here on GMT: With an ageing population, the Chinese


government faces growing call fos change its controversial one child


policy. Calls for a change to its


controversial one child policy. Lots happening on the markets in


reaction to all the banking news. Let's talk more about that with


Aaron Heslehurst. Let's break this down a bit and look at the British


banking are forms, John Vickers reforms. I'll show you the markets


in a second, but what we and the markets are looking at are probably


one of the most radical shake-ups of British banking probably


certainly in a generation. This is all about getting the taxpayer off


the hook and safeguarding the system against another financial


crisis. A lot of recommendations in this 363-page report, things like


making more competition, but the number one main recommendation was


splitting these banks, splitting the investment, risky side of the


bank away from the retail side that we all use. John Vickers, the Head


of the report highlights why that is so important, ringfencing the UK


banking system. Let's have a listen. It would help insulate vital UK


retail banking services from global financial shocks. That's


particularly important for us in the UK, given the way that major UK


banks combine retail banking, high street banking, with global


wholesale and investment banking. There you go. It's all about trying


to safeguard against another crisis, but even if this goes into law,


it's still not going to come into effect until 2019, it's a long time


down the line. I was putting the cart before the horse a moment ago.


Shall we pull it around now?! Let me show you about the banking


stocks. Now you have told us about the cause, let's see the markets.


They've been teetering back and fofrpblt some experts -- back-and-


forth. Some experts have been saying this is not a bad thing


because it makes it more transparent. As an investor, you


want to know where the risks lie. That's what this will do. But you


can't have tough regulations in one country without being a global


regulation, so it's a global business. So will that happen -


this is what one expert had to say. If it does go into law, make it


will spark off similar conversations amongst other


regulators around the world. One reason why maybe we are not seeing


a overreaction, maybe there might be a bit of short-term pain if the


banks have to implement these things, ultimately the hope is they


can look at it and it's a lot more transparent and they can see where


the risks are, rather than everything all being piled into the


one bank. Investors like this for We want to hear from you and know


what do you think about our programme. Go to our website.


This is GMT from BBC World news. The headlines: Concerns over


spreading eurozone debt have strip good falls on stock markets across


Europe. Scores of people have been killed


after a fire broke out in a fuel pipeline in the Kenyan capital of


Nairobi. Turkey has become an increasingly


assertive play in the Middle East. Its Prime Minister, Recep Tayyip


Erdogan, is beginning a tour of the three Arab countries that have


overthrown their leaders this year, Egypt, Tunisia and Libya. There was


speculation he would travel to Gaza but that plan has been shelved.


Let's talk about the implications of this visit. Let's go to


Washington and talk to a Turkish affairs analyst. His turkey trying


to play an increasingly assertive role in the Middle East and people


are talking about reviving its old Ottoman ambitions? I don't think it


has got anything to do with an Ottoman ambition. Turkey has found


itself at a unique conjunctiva. And it is awareness it makes some


engagements in its neighbourhood it will lose out. But Recep Tayyip


Erdogan arrives at an unsettled time in Egypt, where you have seen


the mood against Israel hardening with the attacks on the Israeli


embassy in Cairo. Recep Tayyip Erdogan has expelled the Israeli


ambassador from Ankara over his refusal to apologise over the raid


on Gaza last year in which nine activists were killed. Do you see


that mood hardening towards Israel and what would be the impact of VAT


by Turkey? If you look at the reaction Turkey has given to Israel


since 2080 when the relationship between two countries started been


strained. It has been measured, even though public statements can


come across as irrational or emotive. Recep Tayyip Erdogan's


decision not to go to Gaza reflects the fact that what turkey wants is


not an out of control tension with Israel, Turkey has a genuine


grievance against Israel in the sense that it still demands an


apology from Israel over the murder of nine Turkish students. One of


the reasons the Prime Minister did not push through with the cars idea


is the domestic context in Egypt. This visit is not necessarily a


reaction against Israel but it is a long-term plans initiative by the


Prime Minister's office. They want Tonga strikers with Egypt, Tunisia


and Libya and this demonstrates the primary focus on Turkish foreign


policy engagements in Africa and the Middle East is about strategic


relationships, not necessarily seeking to create conflict in the


region. His turkey quite content it with the Arab spring and the


toppling of dictators? Is it concerned this may bring in some


instability and if so, does it have any role to play in trying to


maintain stability in the region? Turkey has been quite positive


about their allotments in North Africa. It has opened a lot of new


possibilities for Turkey to engage with the emerging actors and


improve its power in the region. I think the question of what will


happen next in Syria has been the most precarious and concerning one


for Turkey. It shares a border with the country and everything that


happens in Syria house domestic implications for Turkey. But Turkey


has followed a democracy promoting and optimistic engagement towards


the social changes in the region. It won it a lot of brownie points


in the crowds in the region. One of Colonel Gaddafi's songs is


being escorted to the couple of Niger, Niamey at the crossing the


border from Libya. One of the authorities say a convoy carrying


Saadi and other Libyans was intercepted by troops. In Libya,


rebels are closing in on two Colonel Gaddafi's strongholds at


Bani Walid and Sirte were pockets of resistance are continuing. For


more on those developments and the role NATO is claimed, let's go to


our central London studio and talk to the NATO Secretary-General,


Anders Fogh Rasmussen. You said the mission wouldn't be


accomplished well there was still a threat to Libyan civilians by Pro


Gaddafi forces. Therefore, what is the role you are playing in these


battles for control of Bani Walid and Sirte? Are you giving cover for


the forces of the National Transitional Council?


We are playing exactly the same role as we have done throughout


this operations. And that is to protect civilians against any


attacks and we have seen that it remnants of the Gaddafi regime


still constitute a threat to civilians, and this is the reason


why we still conduct operation. effective are those operations?


When you look at the town of Bani Walid where there have been street


to street battles, lots of civilians in that area. It is


limited, what NATO can do to help the anti-EC forces, isn't it?


are there to protect civilians and during the last 72 hours we have


carried out quite a number of operations, including air strikes


and we have hit quite a number of military targets. So, we have done


a lot and we will continue these operations as long as necessary.


you feel the Libyan operation is in its final stages and pretty soon we


will see a victory? I think we are in the final phase now. It is our


intention to terminate the operation as soon as the situation


allows. But, we have also clearly stated we are prepared to continue


as long as a threat still exists. What constitutes a victory in


NATO's definition? The catcher, surrender or killing of Colonel


Gaddafi himself? How would you define it? -- capture. I have


distressed neither Gaddafi, his family or any individuals who are


targets of the NATO operation. -- to stress. We have to decide on a


possible termination of operation and a number of factors would be


including, primarily of course the capacity of the National


Transitional Council to protect the civilian popularity. -- population.


That is key in the mandate we have got from the United Nations.


have now seen Saadi Gaddafi crossing into Niger. To what extent


can NATO carry out surveillance operations of these convoys


crossing borders to try to ensure Colonel Gaddafi himself does not


slip in like that. Because he is wanted by the International


Criminal Court. Although you are not targeting him, can you help


find him? It is not part of our mandate, it is not part of our


operation. We will continue operation on exactly the same basis


as previously, to protect the civilian population against attack.


Sono surveillance information about the convoys moving out of the


country? We are continuing surveillance operations with the


aim to support our operations to protect civilians. Anders Fogh


Rasmussen, thanks for joining us. It has been more than 30 years


since China first introduced its one-child policy. That has kept


population growth checked, but there have been serious


consequences that of putting pressure on the authorities to


relax that policy. As we report from the southern China city of


Guangzhou. Guangzhou is the capital of China's


manufacturing heartlands. It is the engine of the country's remarkable


growth. There are fears the economy could stalled because of a shortage


of workers. They have been public calls for changes to be made to the


country's one-child policy. Officials want to reconfigure


Chinese society so it runs more smoothly in the future.


The one-child policy began a generation ago. It was designed to


prevent overcrowding. Most children born in the city's have not got


siblings, but they do have more opportunities. This child get her


mother's for attention, but she says she would benefit from having


a brother or sister. TRANSLATION: She is on her own so


she is lonely and selfish. I think it would be good for her to have a


playmate. It would be good for her to develop and socialise with other


people. She worries about her daughter's future. As an only child


she will have to care for her parents and grandparents when she


grows up. It is a problem facing the entire country. Chinese society


is rapidly ageing. The growing costs of social care are being met


by a shrinking number of workers. But for now, China's one-child


generation are enjoying personal freedoms and prosperity denied to


their parents. Tan Li Ying has just got married and wants to start a


family. But she says one child will be enough.


TRANSLATION: There are already too many people in China and if you


have more than one child, you cannot guarantee they will get the


best opportunities. But her friend believes the policy


must change. TRANSLATION: People want more


choice. China may be a country where the


authorities have the final say, but they have created a generation that


is less willing to follow the party line.


And that's all from this edition, but before we go, let's bring you a


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