19/10/2012 BBC World News

Eurozone leaders agree to centralise supervision of their

banks to prevent any more going bust.

Another blow for cycling. A major sponsors as the sport is no longer

keen. Presidential rivals put fun at

themselves and others for charity. I had a lot more energy in the

second debate. I felt really well rested after the long nap I had in

the first debate. Of course I am pleased that the president is here.

We were chatting pleasantly this evening as if Tuesday never

happened. Welcome to World News. Also:

Creating petrol out of fresh air. I will be speaking to the British

scientist behind a ground-breaking technology.

Google's results are released too early, forcing the Shias into a

downward spiral. -- are forcing shares.

First, let's get to the news from Brussels. The President of the

European Council and Jose Manuel Barroso are speaking following the

agreement of universal supervision of a European bank.

TRANSLATION:... I think in the very short-term, the greatest

contribution to growth is to re- establish consumer confidence and

business confidence, and to re- establish confidence...

Establishing that confidence would happen through creating confidence

in the future of the eurozone, and as I said, progress has been made

over the last few weeks and months and this is perhaps an early sign

for greater economic growth in the northern part of the eurozone,

which could then have a positive impact on the southern part of the

eurozone. The competitive position for many countries in the southern

part has increased in many... wanted to devote some time to a

strategic discussion on our external relations and on foreign-

policy. We focus on our relations with China. Taking a step back and

looking long term. I debriefed the European Council on the summit in

September with China, it was very positive. This key partner is

undergoing once in a decade leadership change, we are changing

views on how to engage constructively with the new

leadership. In the long-term perspective, it is in Europe's

interest that China succeeds. We will come back to this issue early

next spring, to best prepare the next summit, which should take

place in China in autumn... We will leave that press conference

there. Just to him now from the German Chancellor, Angela Merkel.

TRANSLATION:... If supervised mechanism up and running, and once

it is functioning, directly capitalisation would be put in

place so the right sequence is important, because that only

ensures reliability to those who obviously are keeping a very close

eye on us and on the changes within the Union. We then discussed

further elements on further developing economic and monetary

union, questions on fiscal discipline, and in the conclusions

we say we need an integrated fiscal framework, which is one part of the

integrated European and monetary... Economic and monetary union, then

consultation with member states will take place, the commission

will explore this in the next few weeks to come, and part and parcel

of that is an appropriate so-called fiscal capacity, if you like, of

solidarity fund that will allow us to boost competitiveness in

individual member countries who want to strengthen economic co-

ordination and in order to be able to do that, binding and reformed

obligations will be agreed between the Commission and the member

states. This needs to be given the necessary democratic legitimacy.

From a German perspective, these points are essential for a

functioning economic and monetary union. We have addressed those. In

December we will discuss this in greater detail and then specify it

and then agree on it. We also spoke about Greece. I had a personal

meeting with the Greek Prime Minister this morning. He gave me a

briefing on progress made in implementing the individual

measures that were agreed, and we explained that once these measures

are implemented and are in place, Greece will have a very good chance

to further develop within the eurozone. Certain things remain to

be done but quite a lot has already been done and they are really

putting everything into making an all out effort, and I am now open

to take questions. TRANSLATION: At Madam Chancellor,

how difficult was it yesterday... Just remind you what we had been

hearing from Brussels. There has been an agreement on how to monitor

the region's banks. The plan is for the European Central Bank to

supervise 6,000 or more commercial banks in eurozone countries. We

will get some reaction now from the banking sector. Let's cross now to

Tobias Blattner, European economist at Daiwa Capital Markets. It is a

framework they have agreed to. Do you think it will make any

difference? Certainly, it will. It was a very important first step at

the leaders have taken because that ultimately paves the way for a

banking union with a common resolution fund, and hopefully one

day a common deposit insurance fund, so that will be important for the

long term survival of the euro. Now I think we need to have more

progress on fiscal union, and this is much slower and has been much

more fragile so far, but that now needs to be complemented, but the

progress made yesterday is definitely to be welcomed because

it puts the eurozone into a much stronger and more stable currency

union in the future. Angela Merkel said they have also spoken about

the ongoing crisis in Greece at potentially Spain as well. -- and

potentially Spain. This agreement does nothing to sort out the debt

crisis today, does it? Unfortunately no. The Germans made

it clear they do not want a legacy asset, and that is causing the

trouble right now in Spain and Ireland. They do not want to assume

liability for those. The deal from yesterday will only be for the

future. But nevertheless, it will maintain the pressure on Spain but

we still have the ECB which showed its willingness to buy Spanish

bonds, and that will hopefully also put a little bit less stress on

these economies right now. Thank you for your time.

The good news for cycling, according to commentators, is that

it is cleaner today than ever before. The bad news is the fall-

out from revelations about past drug-taking continue to damage the

sport. The Dutchman DEC Rabobank, a long-standing back there of a

professional team, has announced it is ending its sponsorship -- the

Dutch bank Rabobank. It says it is no longer convinced that

international cycling is capable of being a clean and honest sport.

This is a sport that seems to go from crisis to crisis. What do we

make of it? Award-winning cycling writer, and

former competitive cyclist, Richard Moore, is here. His Rabobank right

to say it cannot be convinced it is clean? -- is? Yes. The report from

Lance Armstrong's team paints a very vivid picture of just how

dirty the sport has been. But Rabobank are not entirely innocent

in this. They have been a long-time sponsor of the sport through a very

dark period and they have had quite a lot of... They've recently

suspended one of their own cyclists. Yes, this week. Did they do all

they could to ensure they had a clean team? I think Rabobank have

quite a lot to fear at the moment. Are we seeing the fall-out from the

report into Lance Armstrong? Or are we seeing the unravelling of a much

bigger problem? It is a much bigger problem in cycling. Investigations

are going on in Spain and Italy at the moment and revelations there.

There is also an upcoming course -- court case in Hollande. -- in

Netherlands. The theory is there will be some revelations that will

put a bad light on Rabobank in the 2006-2007 season, so the timing of

their exit could be linked to that court case. It is disappointing,

isn't it. Thank you. An update on Malala Yousafzai, a

Pakistani girl shot in the head by the Taliban after campaigning for

women's writes. She is currently being treated in a hospital in

Birmingham -- women's rights. Let's hear the latest update.

She is not out of the woods yet but having said that, she is doing very

well. She was standing with some help for the first time this

morning. She is communicating very freely. She is writing. She has a

trachea Skippy Hugh Pym because her airways were swollen by the passing

of the bullet -- tracheoscopy tube. She is not able to talk but there

is no reason to believe she will not be able to talk once that TB is

out. The bullet went down through the side of a poor -- her jaw. It

went down through her neck. The bullet was removed in Pakistan

fairly swiftly, pretty much straight after the event. Latest

update on Malala Yousafzai. Now we have their details of a costly

mistake for Google! They got it rather wrong! If you

have bad news, the last thing you want to do is be rushed into

telling it! They were getting ready to tell the world way profits were

20% down last quarter, when somebody leaked news 3 hours la.

Shares have fallen 8%. -- A three hours barely. Does that slip make

much difference in the long time? It was not good for them but it

does not change the numbers. What seems to be happening, there is a

seismic shift in the way people access the internet. Everybody is

buying Smartphones and they all have internet browsers so instead

of using a desktop version of a website, which has room for lots of

adverts, they are using a tiny version, which has less room for

adverts, and that produces money all round. The so the total effect

is the amount of money they get him for every click, as it were, is

going down. Yes. Advertisers are paying less to advertise on mobile

phones than on desktops, because the advertising industry tends to

be a year or so behind the wheel trend. There is not room for as

many adverts on the page as well. People are starting gate to use

Google slightly less because on Smartphones, you have apps --

people are starting to use Google slightly less. What about Motorola?

Will this be beneficial? The reason we think Google bought Motorola was

for its patents. There are lots of court cases going on. Apple is

suing Samsung. Many countries are claiming it has copied its designs.

Google bought Motorola to try to get this treasure chest of patents

that Motorola owns. They did not buy it for the phone business but

it is kind of stuck with it. No one is really sure what it is going to

do with it, least of all meat, and not even Motorola. -- least of all

me. They will try to work out whether it was worth investing in

it, I think. Microsoft has released results that

show its first-quarter profit fell, in part due to a dip in computer

sales running its Windows operating system. The world's largest

software company said quarterly profit fell to $4.5 billion, from

$5.7 billion the previous year. Buying a pair of trousers at one in

the morning has never been a problem in Cairo, but now a new

government proposal to slash trading hours could effectively

pull the plug on the city that never sleeps. Proposed legislation

would see shops close at 10pm and restaurants at midnight. However,

tourist establishments with a special licence, such as hotels and

You are watching BBC World use. Toogood To Be True, we will be

hearing from the scientist whose company has been making petrol out

of fresh air. Doctors in the UK are to become the

first in the world to have regular checks to ensure they are safety

practice. The British government has announced a nationwide scheme

will begin in December. Any doctors failing a five-year review will be

in danger of getting struck off the medical register.

For 30 years there have been calls for mandatory checks on doctors, a

kind of medical MOT. Questions have been asked about when airline

pilots are regularly assessed doctors are not. Now for the first

time that the UK's 220,000 doctors will have annual appraisals and

every five years a review will decide whether the licence should

be renewed. Concerns such as poor attitude and read Mr patients could

mean that renewal is deferred, but concerns about safety could mean

they would not have their licence renewed and mean they are struck

off the medical register. The point of the system, we have set it up

very painstakingly after a lot of consultation with the medical

profession and patients' groups, is that we identify problems early,

and give doctors a chance, the very small minority of doctors this

might pick up, the chance to address the deficiencies in their

skills so that they are able to continue practising.

They lessons learnt from scandals of baby deaths at Bristol Royal

Infirmary and serial killer GP Harold Shipman have helped to

create the new checks were doctors. They are designed as a preventative

measure to pick up on the early warning signs of problem doctors

before tragedies occur. The US Garton organisation, the Boy

Scouts of America, has released thousands of documents related to

men suspected of sexually abusing children. They contained Merial --

material on how they hushed up numerous allegations of abuse. The

Boy Scouts of America said it did all they could to protect boys in

his care. An acclaimed Turkish pianist has

gone on trial in Istanbul accused of insulting Islam. The charges

relate to controversial messages including one or mocking a call to

prayer. He has rejected all the accusations.

After two months in the international will do this Kevin

Pietersen is back in the England Test squad for the upcoming tour of

India. -- wilderness. He was dropped in August for sending

provocative text messages to opposing players during the Test

The headlines: European Union leaders agree to phase in eight

single supervisory body for European own bankers.

The Dutch lender Rabobank is withdrawing its sponsorship of

professional cycling saying it cannot trust the sport to be drug-

free. Back to the European Union summit

where David Cameron is giving his reaction to the latest agreement in

Brussels. We are a trading nation, we need

Europe's markets to be open, the European Union accounts for around

50% of our trade, and having those markets opened means widowed just

want to be able to trade with Europe, we want a say over the

rules about how that trade works and that is exactly what our

membership gives us. It is a false choice between saying you can

either accept the status quo or you have got to leave. The whole point

is that is not whether British public is, where I am, what we

should be seeking, as Europe changes, as the Europe -- eurozone

integrates, saying they should be opportunities for a fresh

settlement to get the best possible deal for Britain. What assurances

have you had leaders are willing to negotiate afresh settlement?

You have got the situation today. What have we been here discussing?

We are discussing a fresh settlement for the eurozone. The

banking union, a fresh settlement for the eurozone. They need to have

a big comprehensive banking unit. We have a single currency, we have

Four Nations they use a single currency. We have a banking unit.

If a bank goes bust we have proper resolution regimes, proper deposit

guarantees, they need a banking union. That is part of their fresh

settlement. I don't accept the European Union is fixed and stuck

in one-track. It is changing. You can see how it is changing right

now with the eurozone having to integrate more quickly. The two

things we have been discussing in the last they also -- the last day

also, at the budget for November, but this whole idea that the

eurozone might need to have a separate budget is on the table.

Pat is a massive change, that is a new settlement. A sign of change to

come. This issue of the banking union and how you safeguard

properly the single market if the countries of the eurozone go ahead

in the banking union. This is about the plate of Europe moving and

changing and the right thing for Britain to do is say what is in our

national interest? And would argue it is to be at the heart of the

single market, absolutely key, as a just as the eurozone is changing

and there are fresh settlements so there are fresh opportunities for

Britain. David Cameron giving his reaction

to the European Union leaders agreeing to phase in a single

supervisory body. He says the European Union is changing, this

doesn't affect British banks. With just over two weeks to go

until the presidential election's a month at Mitt Romney came face to

face again on Thursday evening at a white tie event. -- Barack Obama.

Neither could admit the chance to get one over on arrival. Barack

Obama and Mitt Romney agreed to play nice. The aggression of the

campaign was to be left out the door. Lead to scrapping school boys

they were kept apart. The Archbishop of New York was sitting

between them. Mitt Romney started off the decks with self-deprecation.

A campaign can require a lot of ordered changes. Blue jeans in the

morning, a seat of for a lunch fundraiser, spot code for dinner,

but it is nice to finally relax and wear what we wear around the house.

Portrayed by Democrats as a heartless plutocrat Mitt Romney

probably benefited from being able to laugh at his own wealth. The

joke wasn't only on him. Soon he was needling the President. We are

down to the final months of the President's term. As he surveys the

Waldorf room with everybody in white tie and finally you have to

wonder what he's thinking. So little time, so much to

redistribute. Political strategists say candidates likeability matters

because voters don't listen to politicians they don't like. Barack

Obama used his Dexter can do at the criticism he is arrogant and aloof,

while also gently mocking his opponent. After my foreign trip

into doesn't donate a was attacked as a celebrity because there was so

popular with our allies overseas. I have to say, I am impressed with

how well he has avoided that problem. He again got some laughs

but he was also forced to defend his record. Do you feel you have

made a stronger affirmative case or negative case? Four years ago I

said I would end the war in Iraq, would pass healthcare reforms, a

major people don't get bankrupt, I have. Refocus our attention on al-

Qaeda, we have. They will meet for their final debate on Monday. The

questions will all be about foreign policy. The encounter will be far

With fuel prices rising around the world do you ever wished you could

create petrol out of thin air? British scientists say they have.

Researchers have been trying to create this kind of technology for

the past few years and a small British firm says it has become the

first to show it is viable. Let's cross to Fiona trot to has the

evidence. -- Fiona who has the evidence.

It looks like your, smells like fuel, but many affected here at

this tiny unit on an industrial estate in the north-east of England.

Let me show you how it is produced. Inside here there is a tank with

methanol that has been created on site. It is converted into an

alternative to diesel used in countries like Sweden to power

public transport, then it is distilled into this tank here where

the fuel comes out. Their speed to the chief-executive of the company,

Peter Harrison. Scientists are scratching their chins saying it

will very good but how efficient is it? How viable is it?

We have been concentrating on building a demonstration Facility.

Demonstrate all these particular technologies can come together. We

have a design this for efficiency but potentially it can be very

efficient stock you have to evaluate that. How long does it

take to create a litre? The process here come producer later in about a

day, working an eight hour shift. What about the energy it takes to

produce it? We are concentrating on making this from a renewable energy

so concentrating renewable energy and storing it and using carbon

dioxide which we can get from the air to make a carbon neutral

process which will help solve all contribute to solving climate

change issues. Thank you very much. The very early

stages, maybe in 15 years' time it can be produced on a much larger

scale, if the economics worker, in the meantime he could be a wok will