27/10/2011 GMT with George Alagiah

A done deal. Yuers leaders agree to a plan to fix the region's debt

crisis. The markets breathe a sigh of relief for now, but when will we

Welcome to GMT. Also in the programme. Thousands of people flee

the Thai capital Bangkok as floodwaters don't wreak havoc. --

continue to wreak havoc. Two of Africa's biggest music stars lead a

campaign on the silent killer, the growing market in fake medicines.

It is 12.30 here in London. 7.30am in Washington and 1.30 in Brussels

where a sense of leaf has replaced one of anxiety that was felt 24-

hours ago. European leaders have reached an agreement to tackle the

eurozone's debt crisis. First of all, private banks holding Greek

debt are to accept a loss of 50% and that would help to reduce the

country jeevers A-level all debt. The eurozone's main bail out fund

will be increased, to 1 trillion euro, a significant increase boost

to its firepower and banks will be forced to raise more capital. Our

correspondent Andrew Walker is following events and the fall out

in Brussels. So they have finally done it. It was a painful

experience, but the deal was done. Now, the agree was rubber-stamped

here in Brussels but it is always worth remembering that the real

muscle behind the eurozone, s its existence and any prospect of

clambering its way out of this crisis is in Germany. It is the

financial muscle of the German economy. That is why we report from

Berlin. It was billed as a make or break summit. The leaders of Europe

negotiating over who picks up bills of billions of euros. Late in the

night, agreement on how to ease the burden on Greece, and boost the

rescue fund. The world wanted to see we could stand the test of this

deep economic crisis and I think that tonight we Europeans have

shown that we have made the right decisions. I believe the result

will be greeted with satisfaction by the world. Today I think we can

close a chapter. I think we can now start with all our strength to

start working on a new future for our country. In all the dams

involved there is a feeling that the agreement has prevented a

potential serious collapse of economies. We moved a big step

ahead to stabilise the euro and solve the problems in Greece. Not

just in the short-term, but it opened the door for threatty

changes. These good measures, and this is our demand, must lead to

their fixation in the Lisbon Treatys. Here at the German

Parliament the common view is it was a triumph for America. She got

what she wanted in her negotiations with France for example ifrplt has

been perceived as strengthening her in German politics and in European

politics. The rescue fund for the euro, the European Financial

Stability Facility, will be beefed- up by complicated financial device,

so it acts more like an insurance fund, but details remain to be

decided. We have identified two approaches for the ESFF. It aims at

Griffing credit enhancement to bonds issued by member states, and

the second approach, the fund could set up one or several special

purpose vehicles to finance its operations. Each option could lead

to leverage of up to four or five times. And the banks have agreed to

write off half of what they lent to Greece, but some are conceding that

this won't break them. The second biggest bank in Germany will lose

750 million euros. Half the profit it made last year. Whether the

agreement works will depend on economic growth. If recession

returns in Europe, and North America, then the finances of all

countries get worse. But if economies pick up, then the

measures agreed by leaders have a fighting chance of success. And of

course, there is this great sense of relief that a deal has been done,

but there are plenty of uncertainties about it. Not least

the amount of detail that still needs to be filled in. And of

course all these eurozone leaders were determined to make their voice

heard during these talks, but also they had to convince the

international community, the rest of the world that they know what

they are doing. Christian Frazer tweeted that President Sarkozy has

spoken to the Chinese premier in the last hour. The message now I

suppose is we need help, we need support, but we are on top of this.

They need to send a message to financial marks to generate

confidence there, but yes, they are also seeking financial help from

some of the big emerging economies, the likes of China and President

Sarkozy has been speaking, and in addition, the head of the European

Financial Stability Facility, the bail out agency is planning to go

to China, to try and persuade them to invest in some new fund. There

will be more of that kind of initiative to try and beef up the

resources that are available for putting a backstop behind

struggling European Governments. will see how it pans out. Thank you.

With me here is David Buik from BGC Partners. The deal is done, but of

course, we have heard from Sally, we were looking at the business new,

we heard from Andrew the devil is in the detail, they need to

convince the world it will work. Absolutely. To pick up the point

about Hu Jintao phone call from Nicolas Sarkozy. China has its own

problems. That is pes Mick tick. they are going to step up to the

plate they are hard bargainer, one of the things we were talking about

in the detail is where does this 1.4 billion dollars or euros come

from. How it is going to work? How much of it is insurance policy? How

much will be segregated to sov win wealth fund, hopefully if things

are sorted out properly they will come up to the plate and deal with

it. This is a big ask. Sounded woundful the way President Sarkozy

said 1.4 million dollar, I repeat dollars, because this is a global

situation. He is dead right. But I wouldn't count too much on the

Chinese. Don't take a job in impert naiting French Presidents in the

future. Of course! No longer can it be seen, the eurozone can't be seen

as France and Germany driving the economy, it is a whole area, that

that is in trouble and it need to grow. How is the world economy

going to be affected? It will be affected really by what the banks

can do to help for growth, and if they are going to have to increase

the level of dam, which will mean almost certainly selling off asset,

their ability to lend money to deserving causes is going to be

much more restricted. Therefore it will be very important not only as

the European Union got to drive for growth which is incredibly

important, u otherwise we will fall into a vortex of recession, which

we don't want to see. More important is they have to cut the

debt. People like Silvio Berlusconi of Italy who has a very difficult

job, running the most difficult coalition Government in Italy

imaginable. He will have to sell off five billion euros worth of

debt every year, in probably the next ten years. It is a huge ask

when you think if you draw a line under the Po valley all the wealth

is above that and be loit they have serious problems ch? We talk about

how the world looks tat eurozone economy and the impact of that.

What about me? What about our viewers? How will it affect our

purses our wallets? Where will we feel the pinch? Is it going to

improve? A start has been made. That is why markets rally. Banks

are up 9%. From a serious trash level. That is a relief rally. No

more, no less. The rest of the companies are mean and lean and

they will drive decent profit, to you and I, my grandchildren and my

great-grandchildrem are going to pay for this. It will be very tough

going in the next five to ten years. It is going to require an absolute

global approach to balancing out the imbalances of the world's

economy. It will need China in a big way, it will need the United

States to stop taking political stances, and help deliver what can

be the recovery of the world's economy. It will need it very badly.

So December -- despite the few for owe you have been -- euphoria, you

have been a reality check. It will have to take fantastic resolution

from everyone. Thank you. Let us look at some of the other stories

round the world. Thousands of people are fleeing the Thai capital

Bangkok after the Government warped larged parts of the city could be

inundated by floodwater. There is an expected flow with one front

headed for central Bangkok. A five day holiday has been declared in

the worst affected regions to allow people time to pack up and move.

Our correspondent is following developments from the capital. I

think it is fair to say anxiety has been rising over the past few days,

in line with the floods. The water keeps rising and creeping deeping

and as it does people look on nervously, those who can are in

large numbers now heeding the authorities advice to get out of

the city, at least for the next few days. This special holiday has been

declared for flood after fens effected province, but that is 27

including Bangkok. Those who can are trying to get out-of-town.

There are plenty of others who are choosing to stay or have nowhere

else they feel they can gox and they have been stock up on

provision, so we have seen a decline in basic food stuffs like

canned food, but crucially bottled water. The Government says it is

trying to import more supplies but there are distribution problems as

well as trying to source them in the first place. Severe flooding

has hit several parts of Italy killing at least five people with

eight more missing. Buildings and roads have been damaged and a huge

clear up operation is under way. The worst affected areas are

Tuscany and Liguria. A former Argentine naval intelligence

officer known as the Blonde Angel of Death has been given a life

sentence for torture and murder. Alfredo Astiz's victims included

Human Rights activists and two French nuns. Others have being

sentenced. Israel has agreed to another prisoner exchange, this

time with Egypt. It is swapping 25 Egyptian prisoners for Israeli-

American grap, he was arrested in June accused of spying. The deal

comes days after houference Palestinian prisoners were

exchanged for Gilad Shalit. The death toll from major earthquake

that hit eastern Turkey on Sunday has climbed to 534. Rescuers

continue to search through the rubble though hope is fading of

finding many more alive. Many survives have complained about the

slow distribution of aid. Queen Elizabeth is continuing her tour of

Australia, she landed in Perth to continue her ten day tour of the

country, there she visited a cookery class at a Aboriginal high

school where kangaroo stew was on the menu. It included a display of

dancing, before Her Majesty was presented with an Australian rules

football. The Queen will depart for London on Saturday after hoping the

Commonwealth Heads of Government Meeting. On the agenda of that

meeting is the question of succession in the Royal Family. We

will hear from Canada and Jamaica in a moment but first Nicholas

Changes to both the British monarchy and the Commonwealth

itself will be discussed at the meeting. Leaders of the 16

countries which have the British monarch as head of state will

consider a proposal from the British government that in future

the eldest child of the heir to the throne should succeed to the throne,

irrespective of whether they are male or female. Gender equality in

the line of succession, a fundamental change in prospect.

Then the leaders of all 53 countries will consider

recommendations for what is known as the eminent Persons Group to try

to make the Commonwealth more relevant. They are suggesting a

commissioner for human rights and good governance, more power to the

Commonwealth Secretary General and a Commonwealth charter. This does

have the potential for disagreement, not least because one of the

recommendations is that homosexuality should be legalised

throughout the Commonwealth. When you consider that in around 40 of

the 53 Commonwealth countries, sexuality is at the moment illegal,

you see the potential for disagreement. Here in Canada, prime

minister Stephen Harper says he supports what he recalled -- calls

reasonable modernisation when it comes to the Commonwealth

succession laws but says it is not a priority for Canadians and does

not want to open up the debate in Parliament. In fact he says he has

to concentrate on creating jobs and the economy. The royal family in

Canada is very popular and this was evident in the summer when the Duke

and Duchess of Cambridge came here and celebrated after their wedding

and drew huge crowds in a media frenzy. Let's hear what other

Canadians have to say about the possible change. I think it is a

positive change. And I think it is something that would help keep the

institution relevant, because otherwise they are alienating a

huge group of people, young women. I think it is a potential change

that should have been done a long time ago. I think that is just a

sign of the Times that we are maybe growing a little bit more instead

of being Neanderthal men. I don't think Canadians care one way or

another, whether it is a male or female successor. Most people see

their role as a figurehead role. For for many people in Jamaica they

do not care about the Commonwealth they mean nothing. The idea that a

woman should not be a monarch even if she is born first or has a

brother later seems ridiculous. In this country some 45 % of

households have a female at the head. The reigning king or queen

doesn't make a difference to me or any way. It wouldn't make a

difference in society, male or female, anyway. I think Jamaicans

are more immersed in their own social and economic problems to be

looking at the monarchy as any sort of panacea for their current ills.

What bothers many Jamaicans here about the Commonwealth heads of

government meeting is the fact that there is going to be a motion put

forward that homosexuality's banner here the reverse. In this Christian

country people do not want see things changed. Groups fighting for

gay rights see things have to move forward, but for Jamaican see if

they want things to stay as they are. Still to come: we have a big

problem. It is time for you to kick bad habits about medicine as deadly

weapons. A powerful warning about the deadly threat of fake medicines.

We will be live in Nairobi to learn Time for the business news, and

there is some euphoria in the market. The Yes, the markets have

reacted favourably to the Eurozone deal. Investors now feel something

definite has been done. However, as the day goes on there will be lots

of questions. They want to recapitalise the banks, meaning

they have to hold more money. If the banks have to hold more money,

where will they get it from a what does that mean for us? Will the

banks be able to lead the same amount of money they have been able

to? And the bail-out fund as well, where again is the money coming

from to strengthen that? Some say that although the markets are

acting favourably at the moment, reality will probably soon sink in.

The markets we have seen today with spreads tightening and the equity

rebounding, that is likely to be a short-lived phenomenon. Once the

questions are not answered, the uncertainty will come back in the

financial markets. OK, a reality check. I suppose the deal marks the

start of a very long process. have been talking about a marathon

not a sprint. It has taken 14 summits to get here, so you can

imagine how much more we will have in terms of talking and thrashing

out the deal. But everybody is pleased that there is something

definite in place, and also what is more pleasing to a lot of people is

that there is a definite road map. We have got other milestones in the

diary. Nick Fothergill is from the Royal Bank of Canada and he says at

least there is a definite timeline that people can relate to. We have

the G20 summit and then the euro- zone finance meeting, the ESF

framework by November and even dear old Italy has got to come up with

its first reaction to the pram by mid-November. European heads of

state, eight on 9th December, then finally you have the signing of the

treaty at the end of December. Nick Fothergill there. For months,

we have been talking about this and we have been waiting throughout the

14 summits, and the markets are doing well. It is an interesting

point, because usually we have just seen changes are 0.5 %, but

different today. It is very much a euphoric rally and a sigh of relief

in some ways. Looking at the markets you will see the FT-SE 100

is up 2.6 %, but looking at the bottom, the Italian stock exchange,

up 777 points. Italy is a crucial point of the deal going forward. It

has to, with its own austerity measures, but at the moments the

market's reacting favourably and a sigh of relief that something that

looks like a proper road map going forward. But as we keep saying, the

devil is in the detail. D Taylor is the crucial word and also, at the

Mona -- detail is the crucial word. I'm Naga Munchetty.

The headlines: European stock markets have risen after European

leaders worked late into the night to agree a plan to cut the Greek

debt mountain and deal with the wider financial crisis.

Residents of the Thai capital, Bangkok have been warned that parts

of the city could be under water Members of South Africa's main

opposition party, the Democratic Alliance, have elected a new leader

for their party in parliament. They've chosen, Lindiwe Mazibuko,

who becomes the first black leader of the official opposition, in the

National Assembly. The vote's being seen as a big test for the

Democratic Alliance as it tries to throw off its white image. Our

Southern Africa Correspondent Karen The annual opening of Parliament is

a colourful affair in every sense of the word. The ANC, South

Africa's Party of Liberation, in government for the past 17 years,

yet the opposition, historically supported by white voters, has just

elected its first black leader of the National Assembly. This

election is not a referendum on whether there is a place for black

South Africans. Lindiwe Mazibuko. She is the face of the new

Democratic Alliance. We have to crucially capture the disaffection

people are feeling with the ANC at the moment. She was pitted against

this man, a well-respected heavy weight. The Prix are going to be a

party for all South Africans they must be a place for me and others.

Although this is a contest in the main other parliament, it is also

seen as a campaigning tool to woo black voters to a party still

criticised for being far too wide. -- white. But look how things are

Didier is trying to gain a foothold in the South African black

provinces. -- the DEA. Scenes like this in Soweto would have been

unthinkable years back, and critics say promoting the lady appeared to

be window-dressing, but she does appear to have support at the top.

The ANC Youth League has demeaned her as simply a servant. She is a

puppet and per role must remain in the kitchen for making the tea.

ugly racial reference to the bust. But some predict a strong black

figure leading the opposition would help erode the ruling party's

traditional power base. -- and ugly racial reference to the past.

Staying with Africa now. Two of its biggest music stars, South Africa's

Yvonne Chaka Chaka and Senegal's Youssou N'Dour, have put their

names and voices to a campaign to combat a silent killer -

counterfeit medicines. It's been estimated that in Africa, as well

as some parts of Asia and Latin America, more than 30% of medicines

on sale are fake. The World Health Organisation says these counterfeit

have harmful effects and can be deadly. The range of fake drugs on

the global market spans across all manner of medicines including

antibiotics, steroids, anti- depression and anti-cancer pills.

In the largest operation of its kind this year, an Interpol-

supported task force seized drugs worth $6.3 million. They also shut

down almost 13,500 websites that were engaged in illegal activity.

Before we talk to Yvonne Chaka Chaka, let's have a look at the

music video to the new song, which Proud, proud to be... Yvonne Chaka

Chaka is launching the song tonight in Nairobi. She joins me live from

our studio there. I would get the details of how you recorded the

song and what was involved, but what inspired you to take up the

cause? Thank you for having me. We are here in Nairobi today as a

goodwill ambassador, which prompted me to do this, because we cannot be

shouting and telling President to make sure that we want political

will, and we cannot have women walking 40 kilometres to go and get

medication whereas on the other side people are making sure that

these counterfeit drugs... What a shame. Yvonne, can you hear me?

Perhaps we can hear you rather than see you? How unfortunate. I do

apologise for the loss of vision there. There has been a launch of a

music video and a song called Proud to Be. The idea was to create this

song to help highlight the issue of fake medicines on the market which

are killing many, many people. If we can get her back, we will, but

in the meantime we will will look at the fact that population growth

is affecting us all, because in less than a week the Earth will be

home to 7 billion people officially. We are running a series of special

reports on population growth around the globe. Our China Correspondent

finds out how mobile job-hunting is helping migrant workers.

The booming city of changing it was where China's economic thrust first

began. For over 30 years it has been a magnet for migrants in

search of factory jobs. But now it is attracting a new breed of

Chinese worker. I am a born entrepreneur. My father used to be

an air force pilot. What I learned from him was to take calculated

risks and then I started my business. Five years ago this man

sold his house to finance a start- up. It began with just by people.

But now the software firm has over two were hundred employees. He has

designed an application that connects workers with factories. He

was successful because the application was tailored to the