:00:04. > :00:14.investigation. Those are the latest headlines from BBC World news. Now
:00:14. > :00:18.
:00:18. > :00:23.for the latest financial news, we Hello and a warm welcome.
:00:23. > :00:30.The headlines: Fear returns to global financial markets as doubts
:00:30. > :00:35.persist about Europe's rescue plans. I'm Rico in Singapore and Asian
:00:35. > :00:40.stocks are mixed as investors weigh up the plans to solve the debt
:00:40. > :00:49.crisis. Plus no cause for optimism on the US economy despite healthier
:00:49. > :00:54.data for the second quarter expected today.
:00:54. > :00:57.Good to have you with us. The German parliament will face a
:00:57. > :01:02.crucial vote later today that could decide the next step in the battle
:01:02. > :01:08.to turn around Europe's debt crisis. It is being asked to approve an
:01:08. > :01:12.expansion of the euro bail-out fund approved in July to EUR440 billion,
:01:12. > :01:17.the equivalent of $600 billion. Finland became the latest member on
:01:17. > :01:23.Wednesday to approve powers for the European stability facility
:01:23. > :01:28.designed to help contain the two- year-old crisis. We have been in
:01:28. > :01:34.Berlin and we have outlined the challenges facing Angela Merkel.
:01:34. > :01:38.All eyes are on the Grand building behind me, where the German
:01:38. > :01:42.parliament will decide whether or not to block those measures to
:01:42. > :01:46.rescue the Greek public finances already agreed on by eurozone
:01:46. > :01:50.leaders. All the indications are that Chancellor Merkel will get the
:01:50. > :01:56.majority she needs. But the question will be whether it will be
:01:56. > :02:02.plain sailing. Will she need the votes of the opposition? If she
:02:02. > :02:06.gets an untidy majority with a lot of dissent in her own party, that
:02:06. > :02:11.may indicate a weakness and that will not bode well for further
:02:11. > :02:15.rescue measures already in the pipeline.
:02:15. > :02:20.It is that concern that has been causing another turbulent session
:02:20. > :02:24.for the markets in Asia. Rico is in Singapore, nice to see you. It was
:02:24. > :02:31.a bad session on Wall Street, it started pretty badly for Asia but
:02:31. > :02:39.now things are quite mixed? Currently volatile, Sally, and next
:02:39. > :02:43.at the moment but a lot of investor anxiety and things are still
:02:43. > :02:47.swirling. People are jittery about whether Europe can come up with
:02:47. > :02:51.this aggressive plan and if it is enough to contain a massive debt
:02:51. > :02:55.crisis. All eyes on Germany's parliament and the vogue today and
:02:55. > :03:05.markets are hoping that politicians will give the thumbs up for this
:03:05. > :03:10.
:03:10. > :03:15.Markets here, like in South Korea, Malaysia, Taiwan, bucking the
:03:15. > :03:21.downward trend at this hour with investors basically buying back
:03:21. > :03:30.oversold stocks. As for Hong Kong, no reaction today. Trading has been
:03:30. > :03:36.suspended due to a major typhoon hitting the territory. In Asian
:03:36. > :03:40.emerging currencies, stocks are limited, some banks have been
:03:40. > :03:47.spotted selling dollars. But looking at the end, it is very
:03:47. > :03:53.steady despite a contraction of the economy -- the yen. Investors
:03:53. > :04:01.remain alert for intervention by a Tokyo authorities. The yen has so
:04:01. > :04:06.far gained about 6% this year. As for the oil markets, a crisis
:04:06. > :04:10.declining Asian trade, weak data in the United States and persistent
:04:10. > :04:14.concerns over the eurozone debt crisis are causing them trouble.
:04:14. > :04:21.All eyes for Asian investors on what is going to happen in Germany.
:04:21. > :04:26.Thank you for joining us. Let's get more of a perspective. Not much to
:04:26. > :04:32.be cheerful about today. We are all hoping that vote will come through
:04:32. > :04:36.in Germany. But also today, Ernst in
:04:36. > :04:40.accountancy, coming out with their latest report saying that we are
:04:40. > :04:45.heading for recession next year unless there is urgent action in
:04:45. > :04:50.the eurozone. They are talking about a 30% chance. Not shocking
:04:50. > :04:55.revelations, the IMF was saying the same thing in Washington. But let's
:04:55. > :04:59.peel it apart, it is getting slower, but as you peel off up the eurozone
:04:59. > :05:03.you can find the eurozone core areas, yes they are slow but they
:05:03. > :05:08.are still doing quite well. Reasonable levels of growth in the
:05:08. > :05:13.next two years but the peripheral as well be so weak. The report is
:05:13. > :05:17.calling for making sure people do more than just rescue the banks and
:05:17. > :05:21.organising the bail-out, they will forget about growth. They are
:05:21. > :05:24.talking about stimulation to get things going. But there are
:05:25. > :05:29.positive signs, positive figures coming out of Ireland last week and
:05:29. > :05:34.that was more encouraging. The others are going to struggle for
:05:34. > :05:43.some time, though. Talking about the German parliament's votes, that
:05:43. > :05:47.was about expanding the European financial stability funds to 4.2
:05:47. > :05:52.EUR5 billion. We will get his vote today but perhaps it will be
:05:52. > :05:59.extended to a maybe two trillion euros. We have got the President of
:05:59. > :06:04.the European parliament speaking about a new tax. We have got the
:06:04. > :06:09.Greeks trying to push through various things. So much is going on.
:06:09. > :06:13.It is a combination of issues, if you put them together, they can be
:06:13. > :06:18.horrific. But pick your way through this you can see what needs to be
:06:18. > :06:24.done. Today's vote is yesterday's news, we hope it goes through, but
:06:24. > :06:30.a bigger package will be necessary. But as well you need the proposals
:06:30. > :06:34.to cause higher ionisation of taxation -- harmonisation.
:06:34. > :06:38.don't you think they are too late on that, that is what they should
:06:38. > :06:42.have done in the first place? the Maastricht treaty was written
:06:42. > :06:47.over by all the members apart from Luxembourg. The rules are there but
:06:47. > :06:51.they decided to break them. It is too late but now we must do
:06:51. > :06:54.something if they want to save the euro. It is worth saving because
:06:54. > :07:01.the structure they have got in place shows it can work but you
:07:01. > :07:07.can't operate it based on 17 different finance minister with
:07:07. > :07:11.different egos. Angela Merkel says we have to take it step by step and
:07:11. > :07:16.the really measured, she is trying to calm the storm. You need to get
:07:16. > :07:21.the bank's strong and then focus on growth and get that harmonisation
:07:21. > :07:24.working. We will talk more in about ten minutes when we look at the
:07:24. > :07:28.newspapers. Thank you for joining us. Looking at some other stories
:07:28. > :07:33.making headlines: Spain's economy ministry is saying its shelving
:07:33. > :07:36.plans for a flotation of the National Lottery because of
:07:36. > :07:40.turbulence from the markets. The initial public offering, which
:07:40. > :07:44.would have been Spain's biggest ever, could have raised it to EUR9
:07:44. > :07:48.billion and could have raised confidence in the public finances.
:07:48. > :07:51.They could resume the plan is conditions improved. Australia's
:07:51. > :07:55.competition regulators have approved a tie-up of Qantas and
:07:55. > :08:04.American Airlines that would see them co-operate on Pacific routes.
:08:04. > :08:08.It will benefit passengers 4,000. Ground staff are going to walk out
:08:08. > :08:12.for the second time in two weeks over restructuring plans, though.
:08:12. > :08:17.On the global and financial agenda the US economy may have fed a bit
:08:17. > :08:23.better between a than previously feared -- may have fared. Growth
:08:23. > :08:33.will be about 1.2% in the second quarter up from last month's at
:08:33. > :08:33.
:08:33. > :08:38.Some of the reason for the expected improvement according to economists
:08:38. > :08:43.is that Americans were able to sell more of their products overseas. At
:08:43. > :08:47.home retailers also did better. But before breaking out the bubbly, it
:08:47. > :08:51.is worth pointing out that many of the same economists think that
:08:51. > :08:56.growth in the world's largest economy will remain a dangerously
:08:56. > :09:02.low thing for the rest of the Year. And with US growth below average,
:09:02. > :09:07.the fear is that it is vulnerable to any nasty shocks that could put
:09:07. > :09:11.it back into recession. It is a fear certainly at play on the stock
:09:11. > :09:16.markets where investors are nervously watching as Europe
:09:16. > :09:20.struggles. And it is increasingly worrying the IMF, which just last
:09:20. > :09:27.week downgraded its outlook for the US and said at the global economy
:09:27. > :09:37.had entered a dangerous phase. -- said that. Let show you the
:09:37. > :09:51.
:09:51. > :10:01.That's all from the for now, I will see you soon for a look at the
:10:01. > :10:05.
:10:05. > :10:10.For some more news from the UK. Former soldiers are being sent to
:10:10. > :10:13.the classroom to help teenagers and act as role models. Instructors
:10:13. > :10:20.work alongside teachers to encourage pupils and help improve
:10:20. > :10:23.their behaviour. Chris Buckler has been given exclusive access to one
:10:23. > :10:27.of the military mentor schemes in East Yorkshire.
:10:27. > :10:33.From combat to the classroom. This marks a very different challenge
:10:33. > :10:40.for former soldiers. My name is Andy butcher, I was in the Army for
:10:40. > :10:45.22 years. Andy will be in charge one day a week for the year trying
:10:45. > :10:49.to help students. The task you have been given is to move an egg ten
:10:49. > :10:53.metres without touching it. Most get involved but this is different
:10:53. > :10:58.to many of their mainstream classes. Keeping the attention of some in
:10:58. > :11:03.the classroom is a tough job. your head off the desk and go and
:11:03. > :11:09.wait outside for me please. After being told off, this pupil doesn't
:11:09. > :11:14.wait outside... he simply leaves. This isn't just about discipline.
:11:14. > :11:20.Some of the former troops identify with children and their problems.
:11:20. > :11:25.have been where these children are. I started off with this type of
:11:25. > :11:30.environment. Over the next year the Coalition government is sponsoring
:11:30. > :11:33.training for 100 former members of the armed services. And they will
:11:33. > :11:38.attempt to make breakthroughs with teenagers who don't normally enjoy
:11:38. > :11:43.being taught. Successfully building something to move an egg, might be
:11:43. > :11:46.a small step, but it is an important one. Feels like a bit of
:11:46. > :11:52.an achievement because I did not think I was going to be able to do
:11:52. > :12:02.it. And the future of this scheme depends on making these pupils
:12:02. > :12:12.
:12:12. > :12:17.You are watching BBC World News, the headlines: The German
:12:17. > :12:21.parliament votes today on whether to back new bail-out plans for
:12:21. > :12:26.European economies. Germany is already the largest
:12:26. > :12:30.contributor, committing EUR120 billion. If the plans are approved,
:12:30. > :12:33.German liability would increase to more than EUR200 billion.
:12:33. > :12:37.On the second day of the manslaughter trial of Michael
:12:37. > :12:42.Jackson's personal doctor, Conrad Murray, the court has been told how
:12:42. > :12:49.the pop star's children watched attempts to resuscitate him. China
:12:49. > :12:53.is set to launch a space and station in a few hours' time. The
:12:53. > :12:57.move is seen as the first step in an ambitious plan to develop a
:12:57. > :13:01.Chinese space programme. China wants to establish a space station
:13:01. > :13:08.by the end of this decade but in order to do that it has to master
:13:08. > :13:12.the procedures in order to put Modules and capsules in space, so
:13:12. > :13:16.that is what it will be practising with this capsule which hopefully
:13:16. > :13:19.will go up in the next few hours. An American citizen has been
:13:19. > :13:24.arrested on charges of planning to fly remote-controlled airplanes
:13:25. > :13:34.into the Pentagon and the Capitol in Washington.
:13:35. > :13:35.
:13:35. > :13:40.It is time for the newspaper Most newspapers are assessing that
:13:40. > :13:43.crucial vote to take place in the German parliament today. The