27/10/2011 GMT with George Alagiah


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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


International news and intelligent analysis going live to the heart of the day's top global story. George Alagiah shares his experience as one of the BBC's most successful foreign correspondents to communicate why world stories matter to a UK and global audience.

Featuring exclusive reports from BBC World News correspondents based around the world, plus up-to-the-minute global business news.

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