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This is World News Today. Political leaders from the European
Commission to the White House say, stay calm, breathe deeply - so how
did the markets react? Libya's government denies reports that one
of Colonel Gaddafi's sons was killed in a NATO air strike.
Enough is enough. The Senegalese rappers making a stand against
their government. NASA's latest space mission blasts
off from Cape Canaveral - the Juno probe starts a five year journey to
Jupiter. And opening night at the Fringe. We
meet the veterans and the young hopefuls at this year's festival in
It has been another 10 stay -- tense day on the world's stock
market with more losses caused by fears about debt and stagnant
growth. Despite better-than- expected jobs figures from the
United States and an appeal from the EU to stay calm, the share
sell-off continued today. President Obama attempted to reassure the
markets by sounding an optimistic note, promising that things will
get better. Here is our Business 24 hours of turmoil on the market.
Share prices plunged yesterday in Germany and the rest of Europe,
affecting the Americas. The contagion spread to Asia, Japan,
Hong Kong, Singapore, and then back to Europe. Almost three per --
three trillion pounds wiped off shares worldwide. The crisis was
triggered by growing fears that Italy and Spain will be unable to
pay off their debts. The fears were stemmed a little in July, but the
fears of investors have risen again. I would encourage everybody to stay
calm. The economic recovery is under way. It is important to
protect that recovery from the financial turbulence.
It might be tempting to see these falls in share prices as having
little relevance to us but they directly affect the value of our
pensions, and they say a good deal about the confidence of countries
to invest and create jobs. And when bank's shares fall, that tells us
something about their ability to borrow. And when the banks have no
money they cannot lend, weakening of the economy further.
Unemployment figures in the US turned out to be marginally less
than feared. We are going to get through this.
Things will get better and we will get there together.
If the problem is the excessive indebtedness of a number of rich
European countries, is there a solution?
What this amounts to is that people will have to accept that
governments will be smaller, will spend less, so there will be less
public sector employment, less jobs in the public sector, and less
expenditure on things like pensions and education.
Barclays were down 17%, Royal Bank of Scotland down 20% and Lloyds
down 24%. The Royal Bank of Scotland announced it was back in
the red by �1.4 billion in part because of losses on its loans to
Greece. It would be stupid not to be
cautious and alert to the significant risks out there. But I
think the probabilities are that the world does not turn overnight
from a place that is slowly recovering to a place that is a
disaster area. Commodities market falls in the
prices of copper, lead, zinc and 10 say that we all risk being burnt in
these markets. The latest news from Italy is that
an emergency meeting of finance ministers is to be held. Our
correspondent is in Rome. Silvio Berlusconi and his Finance
Minister have just been holding a news conference at the Prime
Minister's office. They announced the measures they plan to take as a
result of this disastrous day on world markets, and a particularly
bad day also for laterly because their bond rate spread has risen to
new heights and there is a serious fear that Italy's ability to pay
its huge mountain of debt, a heavy inheritance from the past,
according to Silvio Berlusconi, and he also said that there had been
international speculation against Italy. What the Government has
decided to do is to make it a requirement of Italy's written
constitution that every government must have a balanced budget. There
was also an announcement about liberalisation. It is not clear
what this will mean. And finally, there will carry out labour market
reforms. There has been an attempt by the government to tackle the
crisis and create greater credibility for the action plan.
The austerity budget which initially gave a date of 2014 for
introducing new taxes and new fiscal reforms has been brought
forward to 2013. If this will placate the markets remains to be
seen. Thank you very much.
Hugo Dixon is the editor of Reuters Breakingviews and he joins me now.
David was saying that the Italian government is trying to restore its
credibility. I think the sort of things they are
saying are good. This is very new news. We have not seen the details.
Accelerating the austerity programme is one thing the markets
have wanted. They had this programme for austerity but not
until the next general election. They have brought this forward idea
than that is positive. But we need to see the numbers and what is the
mechanism they are using. And what about the labour reforms?
I think that is another thing that the markets are not so impressed by
because that will be good for Italy but it will not feed through for
many years. I think they want the meat today. How much is tax going
up, how much is expenditure going down? Will it happen fast enough?
The last time they had an austerity programme, which was not really an
austerity programme, they delayed it. Then they managed to pass it.
I suppose that is why there is this emergency meeting of finance
ministers. There is a real danger that Italy will default.
Yes and No. I think that Italy is a rich country, and ultimately the
Italian people have enough money to bail out their own government. It
is too big to be bailed out by the rest of Europe because, why would
the Germans take deeper into their own pockets? But the Italians are
rich enough if they can be properly taxed. In terms of this finance
ministers' meeting, this is partly to do with Italy but it is much
more a Nicolas Sarkozy initiative, he is head of the G7. He loves to
grandstand on the world stage. They will discuss more than just Italy.
When they have that brought discussion, do you think that there
are chances for radical change now? The idea about a common debt?
I still do not think that you will get there. I personally think that
the Germans will not be willing to do that. I doubt that even the
French would be willing to do that. Themselves, I've they opened their
own pockets, they would be tracked down by it. Their own credit rating,
which is important for them, it is only there by a whisker. They could
be downgraded, even the French. When this comes to shove, I do not
think they would be prepared to have that sort of common European
bond. I think they will put a lot of pressure on the Italians and the
Spanish, which are the two monsters, to tighten their own belts. Looking
at the other side of the Atlantic, the jobs figures are not as bad as
some feared in the US. Is there room for stability there now?
think so. 117,000 new jobs which sounds like a lot in one month. I
think the problem was that all of these shenanigans in Congress over
the last few weeks have rattled the market. Thank you very much.
The Libyan government has denied reports that one of Colonel
Gaddafi's sons has been killed in an overnight NATO air strike. It is
the second time this year that Khamis Gaddafi has been reported
killed. It comes as fierce clashes continue between products -- pro-
Gaddafi forces and rebel fighters. Rebels in the west of the country
say they are running dangerously short of ammunition which could
lead to a stalemate. Despite this, rebels say they have taken new
ground and had advanced from the port city of Misrata to the
outskirts of Zliten. Bahrain a mother and her two young
children, victims of a NATO air strike according to the regime. --
by the end. -- burying. In the town centre, it is quiet. It is still
under government control. But the rebels are battling to change that.
For two months, they have been advancing on Zliten. The furthest
they have got is the suburbs. They have needed plenty of help from
above. This is one of the waiters to airstrikes by the RAF, which has
been pounding targets in and around the time, destroying some of the
regime's concealed weapons. At the front line, we find this rebel
Brigade resting during a lull in the fighting. His source told us
that they cannot advance much further because they are
dangerously low on ammunition. This amateur army is running on empty.
The fighters here say they are still relying on home-made,
improvised weapons. This anti-tank gun, bolted to a Pickup truck. They
have captured some arms from Colonel Gaddafi's forces. They took
this anti- aircraft guns about a week ago. But they sometimes run
short on ammunition. At times they have been down to the last box of
bullets. What can I say? Our ammunition
could run out any time now. What I have is maybe enough for one or two
days. The commander took me to a lookout
post to get away if glimpse of Colonel Gaddafi's men. They were
across the sand dunes about two: utters a way, visible with
binoculars and perhaps watching us as well. -- two: utters. --
kilometres. The fighters say that to get there, they need bullets.
Syrian activists say security forces have shot dead at least
seven people during protests near Damascus. They say another
protester was also killed in the city of Homs. Thousands are
reported to have takena to the streets across the country on
Friday demanding that the President resign. That's despite the
continued crackdown in Hama, where state television says troops have
Another Friday, another protest after prayers. This one in a suburb
of Damascus. In dozens of other places in the country, people are
calling for they these it -- the regime to go. Then panic as
shooting broke out. Activists said the security forces opened fire.
State TV said it was gunmen shooting from rooftops and that
police were among the casualties. Here, government forces appear to
be consolidating their grip. State TV pictures so the City firmly
under the control of government troops. Residents continue to so --
to report shelling and shooting in areas. The authorities insist this
is all the work of arm, terrorist gangs. They repeatedly so put --
footage from last Sunday reportedly showing armed protesters. State to
be said that 20 soldiers were killed, but activists say that
President a sad has lost his legitimacy to governor. We continue
to support the Syrians and their efforts.
The Americans are also what tightening economic sanctions. --
already. Measures to punish the energy sector are also expected
soon. More likely to get attention as a shift in position from or
Russia. President Medvedev said that aside would face a difficult
fate if he failed to carry out reforms. There is in no sign yet
that the regime well heed it outside appeals and abandon the
repression. The opposition have dismissed the proposed reforms as
Some of the day's other news - a Ukrainian a judge has ruled that
the former prime minister be taken into custody. The judge accused her
of the repeated violations of court rules, including impeding
A polar bear has killed a British teenager and endured for others in
the far north of Norway. -- endured four others. The bear was then
killed by another member of the Nasser has launched a billion
dollar mission to Jupiter. -- NASA. It will take a Friday years to
reach the planet but it is hoped that it will bring a wealth of new
information. -- five years. It is by far the largest planet in our
solar system and fight -- scientists also believe it may have
been the first to be formed. Knowing about its structure and
composition could help explain more about other planets. I am now
joined by the head of planetary science at the University College
London. Thank you for coming in. Why is it important to send this
probe? Jupiter or is a huge planet and we
must understand its structure and form. The measurements are very
important. We must understand how it formed. There are implications
for why we are all here. It will put the Elf and other planets into
context. -- air. -- Earth. It has a hydrogen and helium. It has brought
things in from the solar nebula when it allegedly formed.
I was intrigued by the claim that the History of Our planet lies on
Jupiter's. Basically that is because it
informed first. -- formed. If they find it accord -- a core, then that
might be important proof. Getting the composition is just one of the
jewels. Because it is so massive and has a lot of the Solar system's
overall mass, there are implications as regards how other
planets formed. The storms there have been going on
for more than three centuries, they believe.
That is correct. Ever since Galileo was looking. We have seen the
Jupiter or for a while - the Great Red Spot, what is underneath? We do
not know. But this will provide underneath the clouds of Jupiter.
The counter rotating zones and belts. Each moving faster than a
Formula One car. Underneath that, we just do not know what is
happening. As we go towards the centre we may find a liquid, sorry,
a metallic hydrogen core. There is so much to find out and
quite a few years to wait. If yes, five years.
Thank you very much. Tension has been growing in Senegal fuelled by
public anger about the rising cost of living. It has formed a protest
movement against the current administration. The movement is led
by two musicians and a journalist. There are encouraging young people
to register to vote ahead of next year's elections. This report from
the car. -- Dakar. My voting card will be the solution to my
suffering, sank this rap collective. -- sang. Along with a journalist
they have decided to create a social movement demanding change
during the power cuts last January. It is a peaceful moment. A
political and secular. -- apolitical. We want to raise
awareness so that people understand that power ultimately comes back to
them. As a voter registration in meals a
clause activists are encouraging more people to sign up. -- kneels
its close. It seems to be walking. More youngsters are registering to
vote. 200 people everyday here. The movement won its first victory in
June. After a day of unprecedented riots the President with De Roux
and attempted change to the constitution. -- withdrew. The
movement has increasingly attracted the attention of the opposition.
Members complain of police harassment. Some have been beaten,
others are rested then released without charges.
Intimidation is a lost cause because these youngsters are
determined. Officials should be walking to address their concerns
because their expectations are not just those of the movement but of
the entire population. President Abdul I lacked is holding
firm for now. He insists he will win a cup tell me. He denies that
he is attempting a handover to his son. -- he insists he will win a
third term. By February 2012 but the movement could be on a position
to make good on its call that While the rest of the world is
struggling with grow with the Edinburgh Fringe Festival gets a
bigger every year. -- struggling The biggest arts festival in the
world. Bigger than ever. Rather daunting for a new comedian.
Jessica possmac a venue is called at the wheel rim. -- Jessica
possmac a venue is called the we room.
I will lose thousands. You sound like my parents. It is a very hard
to justify. At least not to anybody who is not a comedian. But you
simply have to do it. Even the established comedians will
come here to sell a new show. Especially if it is a departure
from the norm. Ruby Wax is looking at the topic of mental illness.
We are sort of on a platter, here! Back when Paul Daniels was just
starting out the Fringe was really a fringe event. Now, three decades
later, he is a devotee. I am in love with the French. It is
the greatest place to be. I was chatting to Dave Cox -- Dave Gorman
earlier on. Everybody is early -- everybody is here.
The Edinburgh Fringe. A university come trade show come holiday camp
for comedians young and old. How Hello. If you have plans this
weekend the weather is looking very mixed. We are expecting heavy rain
tomorrow in northern England, Northern Ireland, and later on in
Scotland. A fine night in between times with a low pressure waiting
in the wings. It will then turn wet early in the morning. The heaviest
rain will be in northern England in the afternoon. Possibly thunder
also. Most of East Anglia and the South East should remain dry but it
will not be as warm as a today. It will not be quite as nice as today
in many parts. A wet start in Northern Ireland. Some will be
heavy showers. Disappointing temperatures for the time of the
year. Central and southern Scotland will get wetter and wetter during