11/06/2012 BBC World News

Markets around the world soar in response to the bail out of Spain's

beleaguered banks. These are live pictures of the former Prime

Minister, Gordon Brown, who has told the inquiry into press ethics

that changes have to be made to the standards of British journalism.

Somalia strives for peace. We're inside the war-torn country to see

whether any progress has been made. Welcome to BBC World News. Also in

this programme; day 34 in the trail of Anders Breivik. Norway's top

psychiatrist appears as a witness. And the musical Once scopes not one,

but eight of the theatre world's Stock Markets in Europe have

responded positively to the bail out of Spain's beleaguered banks

which was agreed at the weekend. The leading Asian markets were up

after Spain become the fourth eurozone country to be offered a

rescue deal. Mariano Rajoy said the loan package, which could be worth

up to 100 billion euro will secure the future of the single currency.

After the long downward slide, Spanish stocks rose, when a new

week of trading began. A leap of 5%. Shares in Bankia, which requested

19 billion in loans rose by 16%. Increasing confidence by investors

was reflected elsewhere in Europe. Frankfurt's DAX index rallying by

around 2% in the opening dealing. The sort of rise seen on other

European Stock Markets. The trend had been heralded in Asia, where

the markets had been anxious about Spain's financial position and the

impact on the wider eurozone. The euro was rising on the global

markets. So, the weekend deal under which eurozone ministers agreed to

lend Spain up to 100 billion euros, bringing relief for now. How far

are these rescues addressing the underlying problems? Greece had two

bail outs of 110 billion and 130 This doesn't solve the underlying

problem rather than the symptom of the euro itself. Still back to the

euro issue. How do you get that currency to operate properly? That

means a better road map for better control. All of this remaining then

a huge challenge for policy makers. The stability of individual

economies crucial. Global markets please that Spain has been thrown a

lifeline, but still a question market over whether Greece stays

within the euro, with fresh elections there. The crisis is by

no means over. Jamie is here. Market reaction -

predictable? Predictable. Very positive. The IMF was talking last

week about 40 billion euros being needed to recapitalise the banks.

That number is enormously reassuring for markets.

A shock. However, the way in which the money will be used, whether

there'll be any conditions attached. For instance the Irish who have got

a similar bail out, not long ago, in order to, well not recapitalise

their banks, but put it into Governments, they had huge numbers

of strings attached. Now there is a good chance they will turn around

and say, well, Spain seems to have managed with to get this money

without any conditions and may start to renegotiate that. That's

all to find out in the future. Olly Burrows is an list with Rabobank.

He explained how this bail out differs. What you have to remember

is, as the Spanish Government are keen to stress, is this is a bail

out of the Spanish banking system, not a bail out of Spain. This is

why it's taken so long to reach this agreement, that the funds will

be channelled directly to a fund which will provide the - will lend

to the Spanish banks. It's not to prop up the Spanish Government

itself. Now, yes, the situation in Ireland, Greece and Portugal is

different. They will no doubt want to be treated equally. We don't

have any further details of that yet. As to the sort of concessions,

there are many problems potentially there as to who will have to

effectively pay for this. Will it be private holders of bonds, for

example? Even depositors or the taxpayers? Your view, how much of a

solution have we reached with this 100 billion. Bearing in mind the

crisis is over we heard that Italian GDP has taken a dive

downwards. We are cautiously optimistic. This is a step in the

right direction. It's as though the patient has started taking medicine.

This is just a treatment for the moment, certainly not the cure. The

sovereign crisis is very much a systemic crisis, not a fundamental

one. Fixing parts, ie the solvency of the Spanish banks will not solve

the sovereign debt crisis, so contagion may spread or infect

other areas and continue to weigh on the whole periphery states in

the eurozone. Europe's airlines will make a combined loss of $1.1

billion this year. This is from the International Air Transport

Association. It is double the scale it forecast, only back in March.

IATA says the passenger numbers are likely to be hit hard by the

developing crisis in the eurozone. Carriers elsewhere in the world

could see profits picking up. For the past year, with the price of

Brent crude tick --, many of the airlines have spun into loss.

Spanish was forced out of business. Although the price of crude has

fallen 20% since spring, IATA predicts the loss will top $1

billion this year. Recession in Spain and Britain hits passenger

numbers. There still remains over capacity in the short-haul market.

A number of bigger players are losing money. Air France is

undergoing restructuring at the moment. Until the European

economies pick up, obviously the airlines exposed will continue to

find that business is tough. Airlines like Ryanair have put

dozens of their planes out of service to match the supply in

Europe to the demand. There is cut- throat competition for passengers.

That means airlines will be under pressure to bring down fares.

Despite what people might say about being slow to reduce prices and so

on it will work its way through. People are desperate for finding

ways to keep the cabins full. If the fuel price goes down, there is

a degree to which they will pass that on straight away.

Airlines tend to buy their fuel in advance to hedge against rising

prices. That means that most will have all they need for the rest of

this year. Cheaper fuel that they are buying now is for delivery at

the start of next year. That means it could be several months before

the lower costs and the lower fares start to leak through. There is

always the strong possibility that crude oil briess will soar again.

-- prices will soar again. That's the business news. More later.

Thank you very much. The former British Prime Minister, Gordon

Brown, has been giving evidence today at the on going Leveson

Inquiry into press standards. Some big names in British politics are

appearing today. In a few hours we will hear from George Osborne, the

current Prime Minister, David Cameron and his deputy Nick Clegg,

are due to appear in the next few days. This morning, Gordon Brown

has told the inquiry that neither he nor his wife gave implicit or

explicit permission for the Sun to publish a stoish about their son

having cystic fibrosis. The Sun said the Browns indicated their

consent to the story, which was published in 2006. Manufacture

Brown said -- Mr Brown said that was not true. There was no question

of implicit or expolice tick permission. I ask you if any mother

or father was presented with a choice as to whether a four-month-

old son's medical condition, your child's medical condition should be

broadcast on the front-page of a tabloid newspaper and you video a

choice in this matter, I don't think -- and you have a choice in

this matter, I don't think there's any parent that would make the

choice to give permission for that to happen. There was no question of

permission. Gordon Brown, the former British Prime Minister, of

course. Let's go to central London and our correspondent has been

listening in this morning. He looked quite pained there talking

about his family, quite understandably, quite emotional.

Yet still quite a lot to say about the whole Murdoch empire and how it

operated? That is right. He's been denying, for example, that he ever

got upset when Rupert Murdoch's Sun switched allegiance from the Labour

Party to the Conservative Party. He's denied a story that Rupert

Murdoch recounted during his evidence, that Mr Brown rang him up,

ranting down the phone in an unbalanced state of mind. Gordon

Brown has been saying that was not true. He would never have

complained directly to them and indeed he said he didn't really

care about Rupert Murdoch's support. He says, if I'd really cared about

what Rupert Murdoch had thought on policy issues, well we would have

ended up leaving the European Union and he joked we would have probably

ended up at war with France and Germany. Of course his wife

famously hosted a pyjama party at Chequers as a matter of discussion.

Also he has been talking about Afghanistan policy and about

general media policy in this country. That's right. He's annoyed

about Afghanistan. He believes that the Sun's coverage of the war in

Afghanistan basically became very personalised and it was all

directed against him and the suggestion in the main news

coverage of the newspaper that was he didn't care. He gave the pam

approximate of how, at a service of remembrance, he bowed his head in

prayer. He said he was very angry the next day when he woke up to

discover that the Sun newspaper had suggested he had fallen asleep

during that service of remembrance. So, clearly Mr Brown is still very

angry about some of the coverage he got. Though, it is worth pointing

out that both he and Rupert Murdoch did actually initially get on. They

are both from Scottish families. Originally they seemed to respect

each other. OK, thank you very much. You are watching BBC World News.

Still to come: Inside one of the world's most dangerous countries as

Somalia strives for peace, with a special report on how it's

fathering now. And nap poll -- how it's faring now. And Napoleon in

his own words. Police in chilli have used water

can -- in Chile have used a water General Pinochet's supporters have

kept a low profile in recent years. This was the time they came out to

make their voices heard. More than 1,000 of them, at the screening of

a new documentary, which strives to show the former dictator in a

positive light. Among the lights, the general's grandson.

TRANSLATION: This is not just a homage to my grandfather. It is to

the military junta. It was the labour of many people. My

grandfather was the leader of this Government. I insist it wasn't just

his work. For some people the very name

"Pinochet" is enough to turn their stomachs. His forces killed more

than 3,000 of his political opponents. Many more were tortured

and driven into exile. Thousands of people turned up to

protest against the homage. The police kept them well away from the

theatre. That was when tempers frayed. Some

of these scenes were reminiscent of Chile in the 1980s, when the

general was still very much in charge. They are violaters of human

rights. Today, this is the only response they have, to suppress us,

to use violence against us, to mistreat us and betray their

country. They, those who committed genocide are inside the theatre.

Arrests, injuries and extensive damage. The Mayor of Santiago

described this as a nightmare day for the city. Nearly 40 years have

passed since the general came to power and five years since he died.

These protests and the strength of feeling here show how a divisive

figure he still is in Chile. The new President of Serbia will be

inaugurated today. Most of the regional leaders are boycotting the

They are protesting against the remarks about the conflict in the

Balkans. This is BBC World News.

The headlines: Markets around the world rise

sharply in response to the bail out of Spain's beleaguered banks.

These are the live pictures of the former Prime Minister, Gordon Brown,

being questioned there by Robert Jay into the inquiry into press

ethics that changes be made into the standards of journalism. Gordon

Brown, giving evidence today. Now, a number of opposition

activists in Russia have had their homes searched by the police on the

eve of a antigovernment rally to be held. Detectives said that the

raids were part of an investigation into violence into street protests.

Our correspondent in Moscow is Steve Rosenberg. How many people

are being raided there? The police say that they are searching ten

locations around Moscow today. Some of the country's most prominent

antigovernment activists have had their homes searched.

We went to one of their homes today. There were armed guards outside

with Kalashnikovs and pist oils, not letting the journalists in,

certainly, and checking the passports of residents going into

the building. What are they looking for? Well, we know that the police

have taken computer equipment and other items from the flat and the

search there continues. The authorities say this is part of an

investigation that has been continuing into the issue of

violence which broke out into an antigovernment protest in the last

month, but opposition say it is an attempt to stifle freedom of speech

and to crack down on Vladimir Putin's opponents before tomorrow's

antigovernment protest, that is expected to be large in Moscow.

In Norway, the country's most senior forensic psychiatrists have

been appeared at the trial of Anders Behring Breivik.

He 4 changed his mind with regards to the well-being of Anders Behring

Breivik. Per Anders Johansen is a journalist

in Norway's biggest newspaper. He is at the trial in Oslo.

Here in Oslo, everything is about the psyche strist. The big --

psychiatrist, the big question is that Anders Behring Breivik is fit

to go to jail or he has a personal disorder. Today we heard the

witnesses from the people who had been following him inside prison,

where they have been studying him, to find out if there are signs of

schizophrenia or paranoia or whether it is a personal disorder.

Have you heard why this eminent psychiatrist has changed his view

on the question as to whether Anders Behring Breivik is insane or

not Each time there is is a new psychiatrist in the court, there is

a new explanation. Einar Kringlen was saying early saying that he was

sure that the first report was true. That Anders Behring Breivik was a

schizophrenic, but after following the days in court he has changed

his mind. He based it on what he saw in the way that Anders Behring

Breivik was behaving in court. Now he says there is no doubt that he

is not psychotic. That he is a person with a personal disorder.

And if the court is forming instruction, he should be sentenced

to jail, but everything is still upside down in the case. It is the

police all the time asking questions which seem to reflect

that the police and the prosecutors are convinced that Anders Behring

Breivik is insane and cannot be sentenced to prison.

The latest from the Anders Behring Breivik trial.

The new President of Syria's opposition National Council is

urging people in the country to defect from the current regime.

There have been clashes with the rebels and the government troops

with up to 35 people being reported to have been killed in Homs. Our

correspondent is in Homs. He told me more of what is going on there.

I have been standings on the roof of the UN headquarters in Homs,

watching the mortars landing on the city at the rate of one every

couple of minutes. There is much smoke hanging over the town. The

blasts are concentrated on one area. It has been going on regularly.

Before then there was a sound of gunfire and the occasional mortar

round, but in the last half an hour it has been intense. Paul,

listening to your reports from the recent days it is clear that the

situation is becoming increase liing complex and difficult in

Syria? Yes, it is. I think what is happening in Homs

is a military operation. I have been told by someone that the

Syrians are using unmanned drones. You can hear the buzz in the air to

search for targets and then they are firing mortar rounds in. This

is very much a military style operation. It tends to be largely

where the military has withdrawn to put down other flare-ups, that the

militias, that the Government are accused of creating of taking the

law into their hands, that is where we have seen the sectarian murders

to emerge. After more than two decades of

lawlessness and turmoil, Somalia is close to forming a new government.

African Union troops have fought hard to restore normality to the

country. We have been speaking to the Somali

Prime Minister, Abdiweli Mohamed Ali.

We must be vigilant that those involved in the instability of

Somalia should be apprehended. We have had 20 years of lawlessness,

chaos, instability, it is enough for Somalia, the people have

decided no more to this violence, no to more instability and no more

to lawlessness. Some of these warlords, are now

engaged in the political process. Are you confident that they have

finished with with their own ways? No. But if we have a transparent

and fair system, I am sure that they will not come back. They have

had their time. They have squandered it.

In Somalia, it is where it is today because of people like that, so

people know it. What is your planning if Al-Shabab

is pushed out of all of the major cities in Somalia, and the momentum

is with the African Union forces and your troops, if they are indeed

pushed out, what will they do? sure that what they will do in the

short-term is to engage in some kind of warfare such as suicide

bombings, hi-jacking, killing innocent people, that will show

their true colours and their character.

The true character of Al-Shabab. In the long-term I am sure that they

will wither away. They are a spent force now.

You are preparing for a period of ace met kal fighting? Of course.

-- asymmetric fighting? Of course. We have to take care there.

Two earthquakes have hit the north- east of Afghanistan. There are

reports that a number of people are missing, at least 20 houses have

been destroyed in a remote village in the Baglan province.

I have been speaking to a member of the council in the province of

Baglan. According to him at least 22 houses have been buried. He says

that the village is located at the end of a mountainous valley, it is

very remote. It is also an area where the

Taliban are active, so a rescue team is on its way from the capital

to the village to see what can they do to help.

What we know from the tribal elders and from the council members that

are number of people including women and children are missing.

According to a tribal elder, they need bulldozers and heavy machinery

to help with the rescue. Part of the mountain has collapsed,

destroying all of the mud houses which were located right beneath

the mountain. Now, a rare letter wrirn in English

by Napoleon Bonaparte has been sold at auction in France. It fetched

$400,000. More that five times the expected price. The letter was

written to the emperor's English teacher while Napoleon Bonaparte

was p exile more than 190 years ago. Sold at $405,000. Far higher than

expected. Perhaps a measure of the letter's importance.

It is one of three examples of homework exercises, completed by

Napoleon Bonaparte while in exile on the South Atlantic island of St

Helena, where he was held captive by the English.

TRANSLATION: This is like an English exercise. Written in the

vernacular English. Very ordinary, if you like. Here it is written,

"4.00Am in the morning so he wrote it that in two hours and took time

to write it, but maybe he was thinking of everything he had done

in his life it was an emotional memory.

Napoleon Bonaparte once dismissed England as the nation of

shopkeepers, but in this letter written in 1816, he shows a rare

degree of human illity, pleading with his teacher to correct the

mistakes. TRANSLATION: I don't think that

Napoleon Bonaparte despised England but had an admiration for the

history, the traditions, its regulations and rules. Napoleon

Bonaparte had a fervent admiration for England, but at that moment in

history, French interests were different to English ones.

The document is the property of the Museum of Letters And Manuscripts,

preserving the possibility that it will one day be put on display.