07/07/2011 World News Today


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The This is BBC World News Today with me Tim Willcox. Closing down a


contaminated title - News International says this week's News


of the World will be its last. Clearly certain activities did not


live up to their standards, a matter of great regret for me


personally and for the paper. dramatic decision was made as


detectives think more than 4000 people were potentially phone


hacked. Reports too that relatives of soldiers killed in Afghanistan


and Iraq were targeted. In these actions are proved to be have -- to


be verified I am appalled. I find it disgusting. Fighting inflation


and rising wage demands - the ECB raises interest rates - good news


Hello and welcome. After 168 years Britain's biggest selling tabloid


newspaper the News of the World is shutting down and publishing its


final edition on Sunday. The newspaper at the centre of a phone


hacking scandal is part of Rupert Murdoch's News Corporation media


empire and the UK's most read newspaper. News International


chairman James Murdoch says the newspaper had become sullied by


behaviour that was wrong and had failed to hold itself to account.


Our Business Editor Robert Peston looks now at the paper's demise.


For years it has been perhaps the most famous Sunday newspaper in


Britain but the 168 year-old News of the World is being shot because


recently it became more famous for all the wrong reasons. This


afternoon the chairman of News International, James Murdoch,


announced that this Sunday's edition will be the last and all


revenues from that edition will go to good causes. It is the


revelations that Journalism when bad that means it will no longer


roll off the presses. The alleged hacking of the mobile phones of


Milly Dowler, and the phone of a parent of one of the so when


victims, and the privacy of soldiers killed in actions. -


Madeleine action. These are why the News of the World had no future.


spoke to a journalist on the paper this afternoon about our before it


happened and they were feeling disgruntled. Rupert Murdoch,


pursued by journalists in Idaho earlier today... I am not making


any comments. He bought the paper in 1969 and four years it was a


huge money-spinner so its closure represents a huge humiliation. So


what prospects for the News of the World's: staff? They are being


invited to apply for other jobs within a media empire that owns the


Times, Sunday Times and the sun. In fact, some believe the News of the


World may be reborn in days as perhaps the sun on Sunday. It is a


typical management stunt of Mr Murdoch, he get rid of problems. In


this case nobody in senior management, Rebekah Brooks a clear


example, none of those go but the workers at the News of the World


going and there is no doubt it will become the Sunday sun. I have to


say I think the kind of culture that has driven all these kind of


circumstances is as much evidence of the same editor of the Sun as


the News of the World. I am interested not in closing down


newspapers, but in those who were responsible being brought to


justice and those who had responsibility for the running of


that newspaper taking their responsibility and they do not


think those things have happened today. The News of the World's


continued existence provided ammunition to those campaigning


against the attempt by a parent company to buy full control of


British Sky Broadcasting, and that prize is another clue to why the


Murdochs have been ruthless in killing of a newspaper that was


their golden goose for years. In a moment we'll hear more of that


interview with James Murdoch. Let's just discuss these dramatic events


now. With me is the veteran British news correspondent Dame Ann Leslie.


In our New York studio is the journalist and author of The Man


Who Owns the News, a biography of Rupert Murdoch, the chairman and


CEO of News Corp. A brutal decision, classic Murdoch perhaps. The


successful adaptation of the contaminated toxic title? --


amputation. I doubt it. For as we Cillian scandals, this is too


little, too late. I think the interesting thing is that it is in


the last 48 hours where it seems the Murdoch family have awakened to


realise the peril area and be drastic steps that might be


required to keep them safe. But again, too little too late. A quick


response from you about this. Is it too little too late? I agree. I


always think Murdoch is the most brilliant gambler. We have to


remember that he gambled on satellite news, all of those things.


We must also remember the gambler is now 80. But I think this


gamble... He had to close News of the World. What he did not do,


which you should have done, was sacked the beautiful auburn-haired


temptress, Rebekah Wade, for soon you -- for whom he seems to have a


great tenderness. It is amazing. I know that they journalists, most of


whom were not involved, are furious because they feel they and the


paper have been sacrificed for the flame-haired temptress. They say he


treats her like a daughter, although it does seem the sun on


Sunday will emerge from all of this. Let's hear more from James Murdoch.


He gave a detailed interview about why he has taken this decision and


also about the future of Rebekah Clearly the practices of certain


individuals did not live up to the standards and quality of Journalism


we believe in, I believe in and that this company believes in. This


company has been a great investor in Journalism, in media in general


and do something we believe very strongly in. And clearly certain


activities did not live up to those standards. It is a matter of great


regret for me personally and for the company. Have you spoken to


your father about this? Is he personally ashamed? He was very


clear in a comment made yesterday that these allegations are shocking


and usually regrettable. This is the way we all feel in the company,


not least the many journalists around the world to work and News


Corporation, who really believe and what they do and work very hard to


do a good job for readers. When they started I had heard rumours


that phone hacking was rife. Rebekah Brooks was a journalist who


came through your organisation, she was the editor of the News of the


World when this was going on, she was paying out large amounts of


money to people conducting some of these activities, is it really even


vaguely conceivable that she and many others did not know what was


going on at this -- what was going on? Rebekah Brooks and are I are


committed to doing the right thing, as is this company. It is about co-


operating and working fully with the police investigations into


there is alleged practices and activities. It is also about making


sure we are putting in place the processes, that we understand what


happened and we have processes in place to make sure these things do


not have an again. But my question was is it conceivable? You were


looking people in the eye and saying she did not know you're


paying out enormous sums of money to these people. Is that really


conceivable? I am satisfied that her leadership of this business and


her standard of ethics and conduct throughout her career are very good.


I think what she and we have shown with our actions around


transparently and practically working with the police have recall


it is the process of information discovery proactive in voluntary


that started these investigations to be opened again by police


earlier this year. It is the proactive and transparent handing


over of information to police to help them in their inquiries. We


have led that and I am confident those actions show we are doing the


right thing and we are committed to doing that.


Picking up on that, the future of the company and the defence of


Rebekah Brooks, how much... Sorry, go on. It is extraordinary what we


have just heard. A classic non denial denial. Effectively, if you


listen to this he was asked twice, did she know? In neither instance


did he say she did not know. These There is just no credibility left


here. In terms of the bigger picture and the fat that News


International want to buy the remaining stake in British Sky


Broadcasting, all been decided on plurality, do you think they have


done enough to do that now? I think there are two things at work here.


There is the screaming for blood in the streets, then areas -- then


there are the regulatory issues of buying BSkyB. Those are handled in


two different ways and the News Corp and the Murdochs have always


been good at behind the scenes manoeuvring. They know how to use


influence, the power of their organisation and I think they have


done it in such a way that has cleared a path for the BSkyB deal.


Now the question is whether the baying for blood in the streets


will derail this. I do not know. It is suddenly a possibility.


comment about the parameters of the debate of that is plurality,


nothing to do with whether somebody is fit to run the organisation.


It is significant that the decision on it has been delayed until


Whether it was to me documents, or they are waiting for the fuss to


die down, I do not know. In a funny way, I have never met him, never


met James, I have only met Rebekah Brooks a couple of times, I think


there is a bloodlust against Murdoch and his cohorts. The fact


is, actually, in his own way, like most businesses he obviously tried


to corner a market, he is a businessman, but he did introduce a


certain plurality. We had a very stagnant media world which was


ruled by the unions. But this is very clearly not the issue any more.


The issue is they broke the law again and again and again. And then


they covered it up. Not whether he did something good in the past!


is not just news International. A lot of politicians are saying this


is a problem which has infected a lot of Fleet Street. Especially the


tabloid end. All we know is that News International did it, they


said they did not do it, they were proved to have done it. I am not


arguing with you on the illegality. If you prosecute this down the


middle, which I trust will happen, they have to take responsibility.


If they do that, they must lose their positions within the company


and actually quite possibly go to jail. I do not think that will


happen. I challenge you... No. are both shouting at each other. We


do know Scotland Yard are expected to make five more arrests. One of


them will not be Rebekah Brooks. Maybe not this week but in weeks to


come. Really? What did they know, when did they know it? The form of


this scandal is very clear. The outcome I would say is not so hard


to imagine. How high art in your view, does this go? -- high art.


Directly to the Murdoch family which is why they closed the paper


and why they are so scared. Is it not also because the News of the


World has always been considered to be the cash cow, it was not doing


so well recently. It was causing problems. That is not true but the


way. The sum was or is a greater cash cow than use of the world.


They it was always regarded as that and it was not that successful and


it was expensive. So it was a business decision parley. -- party.


The final 4 - we now hear the sun on Sunday and -- there have been


some registered domain names. Is this a sleight of hand? Everything


will carry on as normal. It will be This is about credibility. They


have lost that over the four year cause of this scandal. If they do


that, if this is just a slight of hand... There is little future for


It's a halt and and a final thought, is the whole industry in the dock?


I have never have to phone, and I have been in the industry 50 years.


I have never knowingly met a private investigator either. Most


journalists to do not do what the News of the world were doing it, I


am not interested in the sex lives of the starlets -- News Of The


World. But there are some newspapers who are rare -- riveted


by that because their readers are. I think that their readers, and


this is a real danger to the Murdoch empire, they are moving off


into things like magazines and, on lined stuff, I think in a way the


celebs market, which was confined to the News Of The World and the


sun, is now so dispersed that I am sure that it really doesn't matter


that much any more. I am sure -- sorry for any newspaper to close,


because a lot of journalists will lose their jobs. But for millions


of people, it is an institution. We will be coming back to this story a


bit later on, but we are out of time. Then did to both of you. --


thank you to both of you. That catch up on some of the day's


other news. Details are emerging of the devastating impact of the


drought in the Horn of Africa on people fleeing from Somalia to


Ethiopia. The World Food Programme says more than 110,000 have now


arrived at remote camps in South- Eastern Ethiopia. It's described


them as the lucky ones. Rebels in Libya have advanced


against Government forces on a strategically important road south


of the capital Tripoli. A BBC correspondent says the rebels have


moved between ten and 15 kilometres in the last 24 hours towards the


town of Gharyan, which is held by Colonel Gaddafi's forces.


In a landmark judgement that could pave the way for a flood of


compensation claims, the European Court of Human Rights has ordered


Britain to pay tens of thousands of dollars to relatives of Iraqis


killed by British troops during the occupation. Correspondents say the


ruling will be watched closely by other countries whose soldiers


served in Iraq. A man wanted by the Spanish


authorities in connection with an attempt to assassinate King Juan


Carlos in 1997 has said he will fight moves to extradite him to


Spain. The 44-year-old - who's suspected of being a member of the


Basque separatist group ETA - appeared in court in London. And


was remanded in custody. The European Central Bank has


raised its main interest rate by a quarter of one percent. The rate is


now 1.5 percent. It's a controversial decision by the bank,


because the countries already struggling with government debt


crises - particularly Greece, Ireland and Portugal - will now


face higher borrowing costs. At a press conference in Frankfurt


earlier today, the President of the ECB, Jean-Claude Trichet, explained


the reasons for the rise. decision will contribute to keeping


inflation expectations in the Euro- zone firmly anchored in line with


our aim of keeping inflation rate below but close to 2% in the medium


term. Such anchoring is a prerequisite for monetary policy to


contribute to economy Growth -- growth. At the same time, interest


rates remain low, thus the monetary policy stays cumulative, lending


support to economic creativity and job creation. Let's go to Berlin,


we can talk to Dr Ferdinand Fichtner. Trying to curb inflation


and further price rises, good news for Germany, but not for many other


peripheral countries in Europe. That is probably true. This is


obvious be the big problem BCB currently faces, that we have solid


growth -- this is obviously the problem the ECB currently faces.


But we had huge differences between the member states. We have solid


growth in Germany, we are looking at another year of above 3% growth,


but on the other hand we have stagnation in southern Europe, like


Spain, Italy and Greece. Clearly it is a difficult situation, but the


ECB has to make policy for the whole euro area, and in this sense,


I guess it is fair that the EC be increased -- increased rates today,


and it is very sensible not to do this have to strongly because this


would stall growth in the crisis economies of the peripheries.


Listening to Jean-Claude Trichet, it did seem that further interest


rises are on the way and that will push those countries further into


the economic mire. I actually don't think that it makes such a big


difference in Greece, for example. It is not the interest rate which


posed the problem, it is the levels of debt of the Government, it is


the levels of debt of households in Spain, for example. So it is not


really about interest rates, which increase by a weak demand. The


European Central Bank has to make policy for the whole area. In


Germany, we are facing the inflation rate of 2.5%. In the euro


area, it is an average of 2.7%. We have strong growth, so in the next


year, we can expect strong wages which will feed into higher prices.


So there could be the second-round effect in Germany, in the


Netherlands and possibly France. So the ECB has to react, just have to


signal to the people that it has looked at prices, that prices are


its main priority, and that other tasks have to stay behind.


Ferdinand Fichtner, thank you for joining us.


At least one person has been killed after part of the roof of a Dutch


football stadium collapsed. The stadium is home to FC Twente.


One of those injured but the key to escape with his life. Lucky as well


that it is off season, preventing what could have been an even larger


tragedy. The male of the home city says they are using sniffer dogs


and cameras to find anyone who is trapped -- the mayor. TRANSLATION:


Beat southern side of the stadium is currently being renovated to


increase the number of seats. A large part of the roof collapsed


and that number of people were trapped and as far as we know, one


person has died. The mayor says it is to rally to know why the brute K


been, but eyewitnesses say a crime -- it is too early to know why the


roof caved in, but eyewitnesses said the crane may have collapsed.


Eyewitnesses said it felt like a pack of cards. Another said he


thought it was an earthquake. 25 ambulances from around the region


have rushed to the scene. The stadium was undergoing renovations


to expand its seating capacity to accommodate the many fans that


Bashir's national champions FC Twente gather. And -- last year's.


Let's return briefly to that dramatic decision by News


International to make this week's News Of The World its last edition,


following be deepening scandal of the packing of fire -- celebrities


and grieving families and soldiers serving in Iraq and Afghanistan.


Let's go to Naomi grimly. Something of a problem still for the


Government. What has the reaction been? The Government has made it


very clear that they put no pressure on News Of The World to


close, but there is still all these big questions. For a start,


questions about David Cameron's judgment in befriending too fat --


former editors of the News of the world, Andy Coulson and Rebekah


Brooks, who is still in place as the most senior executive. And also


the question about what happens to the takeover bid for BSkyB. It is


clear the Murdoch family are still very keen on that prize, but there


is more and more pressure on ministers to park the whole thing


because of the questions about corporate ethics. Just speaking off


the record to those marketing people who have had close links to


News International, this idea of a seven day Sun newspaper has been


discussed for a long time and some interesting domain names have been


registered. That is correct, at the Sun on Sunday has been registered.


There is a lot of speculation that that he might happen and most MPs


are very cynical and think it will be a rebranding exercise, or old


wine in new bottles. They may at Westminster, thank you very much. -


- may omit. Let's just remind you of that news


today that News International has taken the dramatic decision, after


168 years of being in control of Britain's biggest selling tabloid


newspaper and has decided to shut it down. News Of The World will


publish its final edition on Sunday. The paper has been at the centre of


a phone hacking scandal, it is part of Rupert Murdoch's empire. Shares


in News Corporation yesterday dropped by three. % -- 3.6%. We


have heard by James Murdoch, saying the newspaper had become sullied by


eight behaviour that was wrong and had failed to hold itself to


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