07/07/2011 World News Today


07/07/2011

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

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contaminated title - News International says this week's News

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:00:22.:00:23.

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

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

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personally and for the paper. dramatic decision was made as

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detectives think more than 4000 people were potentially phone

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hacked. Reports too that relatives of soldiers killed in Afghanistan

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

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

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

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:01:01.:01:13.

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

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

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

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

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

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chairman James Murdoch says the newspaper had become sullied by

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

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

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

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

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

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afternoon the chairman of News International, James Murdoch,

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

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

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revelations that Journalism when bad that means it will no longer

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

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

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

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

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

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happened and they were feeling disgruntled. Rupert Murdoch,

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

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

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

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

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

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

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

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

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this case nobody in senior management, Rebekah Brooks a clear

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

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

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

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

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

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newspapers, but in those who were responsible being brought to

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justice and those who had responsibility for the running of

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that newspaper taking their responsibility and they do not

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

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continued existence provided ammunition to those campaigning

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

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

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Murdochs have been ruthless in killing of a newspaper that was

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

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

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

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

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

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

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successful adaptation of the contaminated toxic title? --

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

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

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

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realise the peril area and be drastic steps that might be

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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also about the future of Rebekah Clearly the practices of certain

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

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

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

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

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

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

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

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clear in a comment made yesterday that these allegations are shocking

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

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

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

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

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

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

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

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

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

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

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

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operating and working fully with the police investigations into

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

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

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

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

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

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

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

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

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

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transparently and practically working with the police have recall

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it is the process of information discovery proactive in voluntary

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that started these investigations to be opened again by police

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earlier this year. It is the proactive and transparent handing

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

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

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right thing and we are committed to doing that.

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:10:13.:10:13.

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

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

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

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

:10:34.:10:44.
:10:44.:10:48.

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

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

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International want to buy the remaining stake in British Sky

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

:10:59.:11:09.
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done enough to do that now? I think there are two things at work here.

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

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

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

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

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

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

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

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

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

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

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

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:12:26.:12:27.

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

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

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

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

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

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

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:13:09.:13:09.

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

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

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

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

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

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

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

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

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

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

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

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

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:14:21.:14:23.

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

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

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

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:14:43.:14:44.

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

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

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

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

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

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

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

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

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

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

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

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

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:16:04.:16:11.

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

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

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

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:16:36.:16:41.

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

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

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I have never knowingly met a private investigator either. Most

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

:18:15.:18:19.

them as the lucky ones. Rebels in Libya have advanced

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against Government forces on a strategically important road south

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

:18:26.:18:29.

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

:18:29.:18:34.

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

:18:34.:18:37.

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

:18:37.:18:40.

compensation claims, the European Court of Human Rights has ordered

:18:40.:18:43.

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

:18:43.:18:47.

killed by British troops during the occupation. Correspondents say the

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ruling will be watched closely by other countries whose soldiers

:18:49.:18:52.

served in Iraq. A man wanted by the Spanish

:18:52.:18:55.

authorities in connection with an attempt to assassinate King Juan

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

:18:58.:19:01.

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

:19:01.:19:06.

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

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was remanded in custody. The European Central Bank has

:19:12.:19:16.

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

:19:16.:19:20.

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

:19:20.:19:22.

because the countries already struggling with government debt

:19:22.:19:25.

crises - particularly Greece, Ireland and Portugal - will now

:19:25.:19:28.

face higher borrowing costs. At a press conference in Frankfurt

:19:28.:19:30.

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

:19:30.:19:40.

the reasons for the rise. decision will contribute to keeping

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

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

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term. Such anchoring is a prerequisite for monetary policy to

:19:56.:20:02.

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

:20:02.:20:08.

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

:20:08.:20:16.

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

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

:20:23.:20:28.

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

:20:28.:20:34.

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

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

:20:39.:20:44.

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

:20:44.:20:48.

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

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

:20:52.:20:56.

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

:20:56.:21:02.

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

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

:21:06.:21:12.

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

:21:12.:21:15.

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

:21:15.:21:21.

would stall growth in the crisis economies of the peripheries.

:21:21.:21:24.

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

:21:24.:21:27.

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

:21:27.:21:35.

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

:21:35.:21:38.

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

:21:38.:21:43.

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

:21:43.:21:48.

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

:21:48.:21:54.

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

:21:54.:21:59.

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

:21:59.:22:05.

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

:22:05.:22:10.

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

:22:10.:22:15.

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

:22:15.:22:19.

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

:22:19.:22:24.

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

:22:24.:22:30.

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

:22:30.:22:36.

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

:22:36.:22:40.

Ferdinand Fichtner, thank you for joining us.

:22:40.:22:46.

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

:22:46.:22:53.

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

:22:53.:22:57.

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

:22:57.:23:02.

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

:23:02.:23:08.

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

:23:08.:23:14.

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

:23:14.:23:17.

Beat southern side of the stadium is currently being renovated to

:23:17.:23:21.

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

:23:21.:23:24.

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

:23:24.:23:29.

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

:23:30.:23:35.

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

:23:35.:23:43.

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

:23:43.:23:47.

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

:23:47.:23:51.

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

:23:51.:23:56.

have rushed to the scene. The stadium was undergoing renovations

:23:56.:24:00.

to expand its seating capacity to accommodate the many fans that

:24:00.:24:10.
:24:10.:24:11.

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

:24:11.:24:14.

Let's return briefly to that dramatic decision by News

:24:14.:24:20.

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

:24:20.:24:25.

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

:24:25.:24:30.

and grieving families and soldiers serving in Iraq and Afghanistan.

:24:30.:24:34.

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

:24:34.:24:39.

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

:24:39.:24:43.

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

:24:43.:24:47.

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

:24:47.:24:54.

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

:24:54.:24:57.

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

:24:57.:25:02.

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

:25:02.:25:07.

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

:25:07.:25:11.

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

:25:11.:25:14.

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

:25:14.:25:19.

because of the questions about corporate ethics. Just speaking off

:25:19.:25:22.

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

:25:22.:25:27.

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

:25:27.:25:31.

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

:25:31.:25:40.

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

:25:40.:25:45.

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

:25:45.:25:50.

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

:25:50.:25:56.

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

:25:56.:26:01.

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

:26:01.:26:05.

today that News International has taken the dramatic decision, after

:26:05.:26:10.

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

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

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

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

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

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

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

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