21/07/2016 Outside Source


21/07/2016

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With just two weeks to go until the Olympics in Rio,

:00:08.:00:16.

Brazilian police say they have broken up a terror cell,

:00:17.:00:19.

which was planning to attack the Rio Olympics.

:00:20.:00:25.

Theresa May Hazmat Francois Hollande in Paris. He's made it clear he

:00:26.:00:31.

wants negotiations over Brexit to start as soon as possible.

:00:32.:00:36.

TRANSLATION: The sooner the better in the common interest. There cannot

:00:37.:00:40.

be discussions or pre-negotiations before the negotiation. We are live

:00:41.:00:45.

at the Republican National Convention where one-time candidate

:00:46.:00:51.

Ted Cruz ended up being booed. We look ahead to Donald Trump's

:00:52.:00:52.

headline speech later tonight. First, just two weeks to the start

:00:53.:01:17.

of the real Olympics and Brazilian authorities say they've broken up a

:01:18.:01:20.

terror cell suspected of planning attacks during the games. The

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arrests happened in the border state of Parana. A further two have been

:01:33.:01:40.

arrested in the southern state of Parana, significant, it is got an

:01:41.:01:45.

open border with Paraguay. One of the allegations against members of

:01:46.:01:50.

this group is they looked into the possibility of getting weapons,

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specifically AK-47 assault rifles, from Paraguay into Brazil. The

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group, which has been communicating with each other across WhatsApp and

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telegram messaging services, had also expressed support for so-called

:02:04.:02:07.

Islamic State. It celebrated in the words of police recent attacks in

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Neath and other parts of France. There was enough information

:02:13.:02:14.

according to federal police in Brazil to suspect these men of being

:02:15.:02:19.

in the planning stages of a possible attack. It's important to point out

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there is no specific information about an attack, a target. But

:02:23.:02:28.

because of the heightened security situation now in Rio and wider in

:02:29.:02:33.

Brazil. With two weeks to go and all the Olympic Games, authorities are

:02:34.:02:38.

on an increased alert level. That level was increased again after the

:02:39.:02:44.

recent attacks in Nice. There is lots of information can allegations

:02:45.:02:48.

on the web, that some sort of attack is imminent. Authorities are clear

:02:49.:02:52.

to point out they have no specific evidence of an attack but this group

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of men, some known to each other personally, others who just met over

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the Internet, were in the preparatory stages of planning an

:03:01.:03:04.

attack. We've heard so much about the focus on the threat of the Zika

:03:05.:03:09.

Virus to the Olympic Games in Rio. There has busy being a great deal of

:03:10.:03:13.

concern among authorities about the threat of terrorism. Yeah, look,

:03:14.:03:20.

violence, security and terror are big issues in Brazil, specifically

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violence on the streets and crime, the levels of which are very high in

:03:26.:03:31.

Rio itself. An interview we did with the head of security in Rio, he told

:03:32.:03:36.

us unequivocally that terrorism as he put it is his major concern. Not

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a cause Brazil is traditionally a target. The last big terror attack

:03:41.:03:44.

on mainland South America was 1994 when the Jewish cultural centre in

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Buenos Aires was bombed, 85 people were killed. Brazil is never seen as

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a target traditionally, it's not part of the international coalition

:03:55.:03:57.

involved in attacks against Isis in Syria. As there are large numbers of

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foreign visitors, half a million people at least do in Brazil over

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the next few weeks to the Olympic Games, there are possible targets.

:04:07.:04:09.

This is a country with 16,000 kilometres of pretty open land

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borders. In that sense it would be a soft target. There are concerns

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here. Foreign delegations have their own security teams during the games

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and security in Brazil itself has been significantly stepped up as

:04:24.:04:24.

well. Theresa May is meeting French

:04:25.:04:28.

president Francois Hollande in her first trip to Paris

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as Britain's prime minister. They've just had a working dinner,

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let's show you pictures of her arriving earlier at the police a

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palace. Speaking to the media both leaders showed a united front after

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last week's attacks in Nice. There seems to be some disagreement over a

:04:46.:04:50.

timetable for a British exit from the European Union. As the UK leads

:04:51.:04:54.

the EU will have to determine how to maintain the closest possible

:04:55.:04:57.

economic relationship between our countries. And it will take time to

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prepare for those negotiations. I understand the need for certainty

:05:02.:05:05.

and confidence in the markets and that's why I've already been clear

:05:06.:05:10.

that the UK will not invoke article 50 until before the end of this

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year. In the meantime I want to reiterate that Britain remains open

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for business, that French citizens and their EU counterparts can

:05:20.:05:22.

continue to work in Britain and they are very welcome in the UK.

:05:23.:05:27.

TRANSLATION: There cannot be discussions or pre-negotiations

:05:28.:05:31.

before the negotiation. But we can of course prepare this negotiation,

:05:32.:05:34.

we can understand that your government, that has just been

:05:35.:05:40.

formed, needs this time. Let me repeat, the sooner the better. There

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cannot be freedom of movement of goods, free movement of capital,

:05:48.:05:52.

free movement of services, if there isn't a free movement of people.

:05:53.:05:57.

Hugh Schofield was there at the police a palace listening into the

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news conference. He had this analysis. I take three things out of

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that conference. The first income in their opening addresses neither

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leader really spoke very much about Brexit. They spent ten minutes

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talking about Franco British relations, the history, the

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importance, how they stand shoulder to shoulder, how Britain had been

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right behind France after the terrible attack a week ago. Both

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countries clearly, both leaders clearly at pains to emphasise

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whatever has happened in Europe the relationship, the historic

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relationship, which predated the EU, will postdate Brexit. That is the

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first thing. The second thing is on this key issue of the speed with

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which Britain will invoke article 50, it's quite clear France has

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backed down, France is not going to push this issue, it wanted it to

:06:48.:06:51.

happen very quickly. Angela Merkel said, let the British have time. The

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French have clearly decided that is the necessary way to go forward,

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there is not going to be under you for -- undue pressure from France.

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There will be a period of preparation and it won't happen

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until early next year. The third thing that got me is where Francois

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Hollande put his foot down, when there was a question about this

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trade-off between free movement of people and access to the single

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market. Francois Hollande was quite clear, disc he said, is what the

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negotiations will be all about. In other words, the can't expect that

:07:27.:07:32.

these freedoms are separable, a bit of one and a bit of the other, as

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far as the French are concerned, they all come together as a package.

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It's a tough line but it's his opening gambit, what else would he

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say at this stage? A point about body language and the relationship,

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clearly, it's always problematic, relations between French and British

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leaders, they don't instinctively get on together, but there was a

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kind of affability. Helped by Francois Hollande's character, which

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is very genial, we saw him smiling away, joking and various questions.

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And praising her. Because he, of course, has known of her, at least,

:08:05.:08:08.

from her work with the Interior Ministry, over Calais, they know

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Theresa May here and they rate her, they value her, that's a good sign.

:08:14.:08:20.

To US politics, the latest on the Republican National Convention in

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Cleveland, Ohio. An eventful week, not short on drama.

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On Wednesday night Ted Cruz was one of the key speakers -

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remember him - he ran against Donald Trump in the primaries.

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Well perhaps unsurprisingly, he didn't endorse Mr Trump

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during his speech - this is how that went down.

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God bless the United States of America. BOOING.

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Anthony Zurcher is at the convention for us in Cleveland.

:08:55.:09:12.

Katty Kay is that the Republican convention. Donald

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Ted Cruz got his revenge after all that Donald Trump said about him in

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the primaries. He gave a mini press conference to delegates from taxes

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in which he made it clear the reason he hasn't endorsed Donald Trump,

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apart from policy differences between them, is because Donald

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Trump had criticised his wife, Heidi, suggesting she wasn't very

:09:35.:09:38.

good looking, and somehow accused Ted Cruz's father in being involved

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in the assassination of JFK. As Ted Cruz said, this is personal, then

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things get personal and somebody attacks your wife and your father

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it's hard to see how you can support them. I have to say I've never heard

:09:51.:09:54.

anything like I heard last night, I've never been to a convention and

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this is my seventh, where somebody speaking on that stage behind me was

:09:59.:10:02.

booed by members of the audience in the way Ted Cruz was. There is a

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counter theory going round that this is a diss unified party and

:10:10.:10:12.

convention and that Ted Cruz may have done more to rally this

:10:13.:10:15.

audience in this convention behind Donald Trump than anything Mr Trump

:10:16.:10:21.

could have done himself. That man Donald Trump will make his big

:10:22.:10:24.

speech tonight, any clues on what to expect from that? What Republican

:10:25.:10:32.

strategists are saying today is that the key for him is to unify the

:10:33.:10:36.

Republican party, that it's going to make it even harder for him to win

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in November in what is already a tough contest for him, if the party

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is fractured and the people who travelled here to Cleveland aren't

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committed to working for him as hard as they can, committed to

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fundraising, getting out the vote, manning the phone banks, doing what

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they can to get friends, neighbours, employees to vote for Donald Trump.

:10:55.:10:58.

He really needs that come he needs the party infrastructure. The

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overriding challenge after this slightly chaotic diss unified

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convention, much more so than I've ever seen, is for him to stand up

:11:07.:11:12.

there ran the presidential and persuade them he can be

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presidential, reach out to members of the party who aren't in favour of

:11:16.:11:20.

him at the moment. Every day something happens to make things,

:11:21.:11:23.

this is going to be the most bad-tempered campaign anyone can

:11:24.:11:26.

remember. Once again we can that today. You know what, we haven't

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really talked about the mood around the convention hall and on the

:11:31.:11:35.

floor, particularly the mood against Hillary Clinton. To the extent

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Republicans are unified. They seem to be unified in what I can only

:11:40.:11:45.

describe as a real visceral hatred of Hillary Clinton the Democratic

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nominee, they have signs on the floor when I've been down, lock her

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up. Chanting lock her up, she's a liar. One delegate from Rhode

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Island, when I asked her why she didn't like her, she said, she's a

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liar and evil. That's the extent of their dislike. There is a nastier

:12:04.:12:07.

mood amongst some people outside the convention hall, some of the things

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they are selling and saying about Hillary Clinton, it'll be

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interesting to see how she handles that next week when it's the turn of

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Democrats. One thing causing a stir, Donald Trump in the New York Times

:12:21.:12:25.

saying America wouldn't necessarily defend a Nato Baltic state against

:12:26.:12:31.

Russian aggression. In any other convention time that would have been

:12:32.:12:35.

the headline of the day, quite a grin, I don't think any presidential

:12:36.:12:39.

candidate from either party has ever suggested that they would overrule

:12:40.:12:44.

Article five of Nato, which says any Nato member must come to the defence

:12:45.:12:48.

of another Nato member. Specifically when pushed on the Baltic states,

:12:49.:12:51.

Donald Trump didn't say, of course the United states would defend the

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Baltic state against Russian aggression, instead he would say, we

:12:57.:12:59.

have to look at whether they met their commitments. Not reassuring to

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countries like Estonia. Katty Kay in Cleveland, Ohio. More later on this.

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The Russian athletics team won't be allowed to compete at the Olympic

:13:12.:13:15.

Games. Russia says it deeply regret the decision.

:13:16.:13:25.

In manhunt under way for two men who attempted to abduct a service man in

:13:26.:13:34.

Norfolk. He was approached by the pair, one of whom tried to grab him,

:13:35.:13:37.

but he was able to fight them off and run away. While the motive

:13:38.:13:41.

remains unclear they can't rule out terrorism. The joint investigation

:13:42.:13:47.

team is taking the lead with Norfolk Constabulary, that is the level of

:13:48.:13:49.

seriousness we are treating this incident with. Norfolk police are

:13:50.:13:54.

taking the lead on this, our anti-terrorist officers involved?

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Clearly we are working closely with colleagues from the region and new

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Scotland Yard. We are the prime ones holding the investigation, we are

:14:06.:14:08.

liaising closely with military personnel outside a military base.

:14:09.:14:14.

You're saying this is still a criminal investigation. This is a

:14:15.:14:19.

criminal investigation with the main line of enquiry being treated as a

:14:20.:14:22.

attempted abduction at this time. You're with Outside Source. Our top

:14:23.:14:36.

story, the federal police in Brazil have arrested ten members of a

:14:37.:14:40.

terrorist cell just over two weeks before the start of the Rio

:14:41.:14:46.

Olympics. Other stories being reported around the BBC right now, a

:14:47.:14:50.

French prosecutor has given more details about the investigation into

:14:51.:14:51.

the Nice truck attack. He says the attacker had help

:14:52.:14:54.

organising the mass killing, Political pressure is mounting

:14:55.:14:56.

on the Malaysian Prime Minister, Najib Razak, after a US lawsuit

:14:57.:15:05.

appeared to link him to a multi-billion-dollar fraud

:15:06.:15:07.

investigation related He has consistently

:15:08.:15:08.

denied wrongdoing - and is not named in

:15:09.:15:15.

the US legal action. BBC World Service radio

:15:16.:15:18.

has that story. And people in the UK are being urged

:15:19.:15:22.

to take Vitamin D supplements by the government during winter

:15:23.:15:26.

months, because there is not enough sunlight at that

:15:27.:15:28.

time of year to produce More about that story

:15:29.:15:30.

on the BBC News App. Russia's track and field

:15:31.:15:45.

team will not compete That decision was upheld

:15:46.:15:47.

by the Court of Arbitration It's all because of this

:15:48.:15:51.

report from the World Anti Doping Agency -

:15:52.:15:57.

the dry sounding 'independent Commission report number One',

:15:58.:15:59.

which details what it called widespread, state-sponsored doping

:16:00.:16:01.

in Russian athletics. There has been a lot

:16:02.:16:02.

of reaction already. Lord Coe is the head of the body

:16:03.:16:05.

which runs world athletics. He said 'This is not a day

:16:06.:16:07.

for triumphant statements. I didn't come into this sport

:16:08.:16:10.

to stop athletes from competing. The champion Russian

:16:11.:16:18.

pole-vaulter Yelena Isinbayeva called the decision

:16:19.:16:20.

the 'funeral for Athletics'. Steve Rosenberg has

:16:21.:16:23.

more from Moscow. Near Moscow today they were

:16:24.:16:27.

battling for medals. This event was supposed to be final

:16:28.:16:29.

preparation for the summer Olympics. But Russian track and field

:16:30.:16:39.

is banned from international competition because of doping

:16:40.:16:41.

allegations. Today, more than 60 athletes

:16:42.:16:45.

lost their appeal in sport's highest Because the great aim

:16:46.:16:47.

for all professional athletes is to be part of the Olympic Games

:16:48.:17:00.

and to get medals. For Maria Kuchina, Rio would have

:17:01.:17:12.

been her first Olympic Games. "It's not fair, clean

:17:13.:17:17.

sportsmen should be allowed Russian officials say today's court

:17:18.:17:19.

decision has robbed Russian track and field athletes of their Olympic

:17:20.:17:29.

dream but the nightmare scenario for Moscow would be a ban

:17:30.:17:38.

on all Russian sportsmen in Rio, the entire team and that will be

:17:39.:17:41.

for the International Olympic That's because this week

:17:42.:17:43.

the World Anti-Doping Agency presented evidence of cheating

:17:44.:17:47.

by Russia in 30 sports, with the help of a secret doping

:17:48.:17:50.

programme. When I spoke to the Head

:17:51.:17:53.

of the Russian Athletics Federation, state-sponsored doping and he called

:17:54.:17:55.

today's court ruling Six time Olympic champion,

:17:56.:17:59.

Usain Bolt, in London today. of people and send a strong message

:18:00.:18:17.

and let them know the sport is clean, we want to

:18:18.:18:21.

clean the sport up. But if Rio does go ahead

:18:22.:18:24.

without Russia, it'll be humiliating for Moscow and this

:18:25.:18:28.

could mark a new low in relations between Russia

:18:29.:18:31.

and the West. Time for business with a political

:18:32.:18:44.

tinge. I've already been talking to Katty Kay. We'll hear from Donald

:18:45.:18:48.

Trump later denied but let's turn our attention to what the Donald

:18:49.:18:50.

Trump effect will have, is likely to have, on business. Michelle is in

:18:51.:18:57.

New York. Is there a unity in the business world on what they think of

:18:58.:19:03.

a potential resident trump? Not even close, if you just look at one of

:19:04.:19:08.

the speakers from yesterday evening, Peter Teal who made his fortune on

:19:09.:19:12.

PayPal. Many were surprised because if you look, traditionally, many

:19:13.:19:19.

members of silicon Valley have embraced President Obama so the idea

:19:20.:19:22.

someone was speaking at the Republican convention was a

:19:23.:19:26.

surprise. Often this party is seen as pro-big business, and yet this

:19:27.:19:34.

year some of the stances Donald Trump has taken has robbed many

:19:35.:19:38.

people in business the wrong way. Specifically, comments on

:19:39.:19:43.

globalisation and free trade. For those big American corporations who

:19:44.:19:47.

have interests overseas, who do business with China, some of the

:19:48.:19:50.

rhetoric has been worrying. That's interesting because Donald Trump is

:19:51.:19:57.

100% from the business world. That's right, I can't say there is a united

:19:58.:20:01.

front when it comes to the view of corporate America. They seem pretty

:20:02.:20:05.

split, there were many small businesses, billionaires in the

:20:06.:20:08.

cloud at the convention in Cleveland, but there are many who

:20:09.:20:14.

stayed away. -- in the cloud. Wall Street often have a big presence.

:20:15.:20:23.

Comments by Donald Trump a week ago talking about reintroducing

:20:24.:20:25.

legislation that would essentially split up some of the big banks from

:20:26.:20:30.

their riskier businesses, from the traditional banking business. That

:20:31.:20:35.

wasn't too well received. Many of them saying they were staying away

:20:36.:20:38.

because they thought their customers would be absurd. That being said,

:20:39.:20:42.

many are planning to stay away from the Democratic convention as well.

:20:43.:20:46.

Are any of them seeking solace in the likely Democratic nominee

:20:47.:20:53.

Hillary Clinton? That's what's been so fascinating this campaign, one

:20:54.:20:57.

hand Donald Trump talking about anti trade rhetoric, Bernie Sanders on

:20:58.:21:00.

the Democratic side taking a anti-war street position, and

:21:01.:21:06.

forcing Hillary to move her position on trade. She was supported of some

:21:07.:21:13.

of President Obama's trade deals, but as a result of some of the

:21:14.:21:17.

campaigning, the language from Bernie Sanders, she was forced to

:21:18.:21:21.

walk that back. Particularly hard image: campaigning in the primaries,

:21:22.:21:29.

in part over the anger because of the trade deals done under the Obama

:21:30.:21:33.

Administration. -- particularly hard hit in Michigan.

:21:34.:21:39.

It's been one month since Britain voted to leave the European Union.

:21:40.:21:44.

The ECB said it expected rates to remain at record lows for an

:21:45.:21:53.

extended period. Here is Mario druggie. Following the EU referendum

:21:54.:22:00.

on EU membership, howitzers and is that financial markets have

:22:01.:22:04.

weathered a spike in uncertainty. -- Mario Draghi. EasyJet hasn't been as

:22:05.:22:11.

resilient, warning its profits have been damaged by the decline in the

:22:12.:22:14.

value of the pound after the Brexit wrote. Passenger numbers are up but

:22:15.:22:18.

the airline is earning less per head. Here is one analyst on my

:22:19.:22:24.

EasyJet is struggling. EasyJet clearly have a problem, they

:22:25.:22:27.

announced their fuel costs have gone up 40 million in the four weeks

:22:28.:22:30.

since the Brexit Road because of the collapse of the pound against the

:22:31.:22:37.

dollar. EasyJet is reliant on France as a destination and departure

:22:38.:22:41.

point. They are the largest airline into Nice airport. The events in

:22:42.:22:45.

Nice have ensured numbers will probably fall substantially in

:22:46.:22:49.

future. All airlines will face the fact fuel has gone up in pound

:22:50.:22:53.

terms. An Eastern European airline has announced it will reduce growth

:22:54.:23:00.

to the UK because the number of Eastern Europeans will probably

:23:01.:23:05.

fall. Americans and people from the far east are deciding Europe is not

:23:06.:23:10.

the place to go this summer. One last Brexit related story. The bank

:23:11.:23:16.

has been hit by libel borrowing claims, now it is the shock of

:23:17.:23:22.

Britain leaving the European Union. Here is Simon Gompertz. Eight years

:23:23.:23:28.

ago the panicked queues as Northern Rock and other banks had to be

:23:29.:23:34.

rescued. The UK's financial crisis was one of the worst. Today, British

:23:35.:23:41.

banks are still struggling. RBS lost over $1 billion in the first three

:23:42.:23:45.

months of this year. Barclays was blamed in the libel scandal, and

:23:46.:23:51.

tainted by it to the rigging of the foreign market. -- bivvy libor

:23:52.:24:00.

scandal. Lloyd's crippled by a $21 billion bill for mis-selling loan

:24:01.:24:06.

insurance. Now they all face Britain leaving the European Union. The

:24:07.:24:11.

seriousness of Brexit for the banking community can't be

:24:12.:24:15.

understated. I don't want to be overly pessimistic. But it's

:24:16.:24:19.

actually a question that keeps coming back to uncertainty. Now

:24:20.:24:26.

there is a new threat for the traditional players, ultra-low-cost

:24:27.:24:30.

bank like atom bank, which operate only, or mainly, from apps, and bank

:24:31.:24:39.

as well. And Starling bank just got its licence, promising to steal

:24:40.:24:46.

millions of customers. ITunes has transformed music, Amazon has

:24:47.:24:50.

transformed shopping, nobody has yet transformed banking and I hope we'll

:24:51.:24:54.

be the bank that does that. One of the biggest transformations,

:24:55.:25:01.

contactless payment... Is that it? Is something the big banks claim as

:25:02.:25:06.

their success story, which needed massive reach to be managed

:25:07.:25:11.

effectively. They savour the moment their control of payment systems

:25:12.:25:14.

make them hard for Challenger banks to beat. The battle for customers

:25:15.:25:18.

will now have to be fought against the background of Brexit. Economists

:25:19.:25:23.

say interest rates will have to be lower for longer and that will hit

:25:24.:25:27.

the profits of banks. And then there's the question of how much

:25:28.:25:32.

banks based in the City of London, for instance, will be allowed to

:25:33.:25:38.

trade across the European Union. As competition from new players hots

:25:39.:25:42.

up, the uncertainty over Brexit couldn't have come at a worse time

:25:43.:25:50.

for banks. Stay with us on Outside Source. One story we'll cover after

:25:51.:25:52.

the weather, Florida police officer who shot and wounded an unarmed

:25:53.:25:56.

black man while he was trying to help a patient with autism. That

:25:57.:25:58.

story coming up soon.

:25:59.:26:02.

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