27/10/2011 World News Today


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This is BBC World News Today with me, Tanya Beckett.


A positive response to the deal to contain Europe's financial crisis.


Stock markets surge higher and the Euro is bolstered. But do the plans


unite or divide Europe? We are much better today than we were yesterday


and it's very important to keep up the momentum of this work and keep


people's confidence, that is the critical thing.


Thailand's government tells Bangkok residents to prepare for the worst.


Thousands flee crippling floods. Israel approves another prisoner


swap deal. This time to free an American-Israeli student accused of


spying by Egypt. Also coming up in the programme:


A shake up in South African politics.


A traditionally white opposition party elects its first ever black


leader. And learning Chinglish. We look at


the new Broadway comedy that is trying to bridge the language


barrier. Hello and welcome.


There's been a cautious but positive response from stock


markets around the world to news of what eurozone leaders have


described as a vital deal to contain the debt crisis. Emerging


bleary-eyed in the early hours of the morning, they announced the


outlines of a package, which include a boost to the EU's bailout


fund and a 50% write-off of Greek debt held by private banks. There


are still plenty of details that need to be worked as our Europe


Your report the news that against expectations, its leaders had


agreed on a plan to fix the Eurozone crisis. It might not have


been it the basilica that some people had been calling for, but


during a long Brussels night, some were claiming that the Euro had


been saved. We will have to wait for a couple of days just to be


sure. Stock markets around the world and that -- enjoyed abounds.


The Eurozone had been seen as increasing the risk of a global


depression. Euro's leaders had been under enormous pressure to reach an


agreement. At 4 am, Europe at's two most powerful leaders stepped into


the spotlight. TRANSLATION: I am very aware, as we


all are, that the world is watching us closely tonight.


I think that we Europeans proved that we came to the right


conclusion. TRANSLATION: I think the result


will be welcomed by the entire world.


I think these decisions have been taken. Away from the summit, others


were more cautious, seeing progress but seeing the outcome as just


another step. We are much better today than we were yesterday and


it's very important to keep up the momentum of this work and keep


people's confidence, that is the critical thing. So, what was in the


big deal? Banks that would have been destined to be swatted losses


of up to 50%, producing a Greek dead. This will mean that Europe's


banks will have to raise more capital. And the EU's main bail-out


fund will be boosted to one trillion Euros, to protect


countries like Italy. It is wise to be cautious. A lot of the crucial


detail is missing from this plant and will not be known for weeks.


What the markets like is that it signals that Europe are's leaders


have finally tried to take control of our debt crisis that began in


the goodies. In Greece today, at their country's debts were said to


be manageable. Here too, there were -- if they were cautious. Key


details of the bail-out fund will not be Nicola sated until November.


They have stopped their neural from collapsing today, or even perhaps


tomorrow, but they definitely have not saved it. We're not out of the


woods. Last night's most tricky decisions were taken here by the


Eurozone leaders. The UK, not to being in the Euro, was not


represented. It represents -- it raises questions about whether


there will be a two-tier Europe. Europe's early morning debt deal


has received a warm reaction in the markets, seen as a step to shore up


the euro and lift the threat of contagion. The BBC's chief economic


correspondent, Hugh Pym looks at the details and the implications.


There is agreement on tackling the Eurozone crisis after weeks of


debate. What is the detailed? We have been told that 50% of the


Greek debt owed to private inspectors will be written off. --


investors. It still needs approval. Most if not of the banks have


agreed to the 50% write-off. That is one part of the announcement


this morning that from our perspective was quite clear. There


is a lot more details still to come on another key part of the package.


That is the one trillion Euro bail- out fund. The idea is to take


existing funding and encourage other investors to come on board.


It is unclear who will pay for it. An approach will be made to the


Chinese government to seek involvement in the new fund. They


could act as an insurer, covering a portion of losses by future


investors. Perhaps the biggest question of all is well it will


work? We do not know with the size of the bail-out fund is enough or


whether it will provide enough firepower to calm investors. We do


not know whether it will help economic growth, which is key for


future stability. We only will get out of a debt problem if these


economies are still growing and for that, only time will tell. There is


nothing they can deliver it to last over night that could make us say


absolutely that these economies are on a sustainable path. We need to


see that whether a politically this austerity can be delivered and hid


economies react in the face of it. The financial markets have taken an


optimistic view of the agreement. As we have seen all too often,


moods can shift quickly on Eurozone bail-out to deals.


Sony Kapoor is Managing Director of the economic Thinktank Re-Define.


He joins me now from Brussels. A lot of the problem that investors


have a with this agreement is the detail, the lack of detail. Let us


start with the banks. They are supposed to recapitalise to the


tune of 1 billion euros. Where will they get that money from? If you


look at the details below the 106 billion figure, I think three-


quarters of it is expected to be raised by countries that a rider in


programmes, such as Greece, Portugal, Ireland or the two


countries for whom this will packages designed, which is Spain


and Italy. As of today, the he FFS cannot invest in banks directly. It


can only lend directly to Spain, which can then invest in the week


regional banks, which need to be strengthened. The problem is that


at 10 billion increase in the sovereign debt of Spain might wipe


out any benefits that might arise from a 10 million recapitalisation


of the week banks, because those weak banks are heavily exposed to


the Spanish sovereign debt. So we have not found a way of addressing


that problem. The second missing think is the detail on were the


banks will get funding from. Right now, they are only able to raise


money from the European Central Bank, only for one year. One parent


-- long-term funding is being cut across the board. There was no


agreement on that. Is there not a risk that banks will cut their


balance sheets by stopping lending, and then you have an economic


crisis? I think that is already going on. Let us turn out to the


size of the fund. This looks woefully inadequate. Italy and


Spain need to win a trillion Euros just in a refinancing so that the


size of the fund the likes are really quite inadequate at this


point and one wonders if the next plan is to turn to China? That is


part of their discussion. It is not that Spain and Italy cannot access


the market, they can. In fact, every time they have gone to the


markets, they have been able to be finance and sell new bonds. The


problem is they are only able to do this at high interest rates which


are simply not sustainable. The idea behind this partially


guaranteed mechanism is not to borrow from the markets and then


lend as has been done in the case of the smaller economies of


Portugal and Ireland, but to partly ensure that the borrowings that


Spain and the play or try and deceit from the markets from now,


the idea being that this might somehow reassure investors into


getting them to lend to Italy and Spain at war industries than their


currently ready to do so. What needs to be done is that these


interest rates need to be brought down, for example, below the 4.5%


level. It is impossible to say if this will succeed, because the


exact size and how far we can stretch it will only get in on the


ones we know what investors will accept. The test of the market will


determine whether the scales or succeed. The right now, it looks


temporary. And in the longer term, the plan is that euro-zone


countries will integrate further, so that they would look at how the


other countries within the euro- zone are spending. That,


automatically, automatically alienates not only countries in


Europe but outside the euro-zone. It is not a sustainable solution.


If we were talking about a small economy, for example the way that


Sweden was in the early 90s, austerity can and does help


generate growth. We're talking about the second largest economic


region in the world having austerity at the the same time that


the economy is degenerating. There is no magic here. No one is coming


from outside. India and China are simply not big enough. We have a


small problem aware and a confusion has been made between what is


appropriate for a small economy and what is appropriate, for example,


for Germany. That has been applied to all of the 27 members. Even more


aggressively, with in the Euro Octavia, 17 countries. That's what


will increase between the countries within the 17 the Euro Adia member


states which are forced to take tighter instructions from a


centralised authority, compared to those 10 countries which are not


within the Euro ADR. -- area. I think this but is bound to grow.


Now a look at some of the day's other news.


The United Nations Security Council has ended the no-fly zone over


Libya and the mandate authorising military operations. It'll come


into effect just before midnight on Monday. The mandate was passed


unanimously, despite a request by Libya's transitional government for


NATO's mandate to be extended. A 25-year-old man has been pulled


alive from a collapsed building in the Turkish city of Ercis more than


100 hours after the region was hit by a strong earthquake. But relief


workers say the chances of finding more survivors are now rapidly


decreasing. The number of people confirmed dead has risen to 523.


Chinese researchers have discovered how woodpeckers manage to bang


their beaks on wood without damaging their brains. The shock is


absorbed by spongy bones in the skull and the unequal lengths of


the upper and lower beak. Researchers plan to use the


principle to design new protective headgear for humans.


Thousands of people have been trying to leave the Thai capital,


Bangkok, after the government warned that large parts of the city


could soon be hit by floods. As you can see from this satellite image,


the city centre is now completely surrounded by water. Roads out of


the city have been clogged with traffic as a deluge of water


swamped the northern suburbs. It is Thailand's worst floods in decades.


So far, more than 360 people have died. From Bangkok, Rachel Harvey


reports. The water is winning the battle for


control of Bangkok's northern suburbs. Creeping further it greedy.


Torrents of it. A middle-class neighbourhood is a rapidly being


submerged. This woman has just watched her streets disappear under


the deluge. Water is at waist. Inside, it is at my chest.


supporters coming higher all the time? Yes. Most take with them only


what they can carry, valued possessions and treasured pets.


There is no panic here, but the sense of urgency, tinged with


disbelief. The government had originally said that Bancorp would


be protected. There were no such assurances any more. This is just


the latest district of Bangkok which has been told to evacuate.


With each passing day, more areas of the capital city are put on


alert. Now the government says there is no part of Bangkok which


it can guarantee will be safe. TRANSLATION: We are trying her best,


an emotional Prime Minister tells reporters.


Just two months into her job, she has to deal with this. In the


centre, things are normal apart from the sandbags. Warnings from a


Our assessment is not alarmist, just practical. If things get worse


then we will take that into account. The signs are not encouraging.


Market traders in the old quarter of Bangkok kept going as long as


they could. But few customers are prepared to wait to their stores.


Little point in hanging on to watch the water's relentless rise. Those


who can are getting out of town. Confidence has gone. Complacency


25 Egyptian detainees held by Israel have crossed the border into


Egypt as part of a prisoner exchange between Cairo and


Jerusalem. Egyptian television showed them bowing down in prayer


as they arrived at the Israeli border town of Taba shortly before


they were transferred to the Egyptian authorities. The former


prisoners are being exchanged for an American-Israeli man, Ilan


Grapel, who was arrested in June, accused by Egypt of spying. Mr


Grapel is being flown from Egypt Our correspondent Jon Leyne is


watching developments from Cairo. This comes hot on the heels of a


high-profile prisoner exchange involving Gilad Shalit, but does it


carry as much symbolism? Not at all. I think this is just business being


done. 25 ordinary criminals, they have even admitted themselves they


were drug smugglers being released in return for somebody who was held


since June by the Egyptian authorities, Ilan Grapel, accused


of spying but no real strong evidence. There is some scepticism


here about that because he came openly into Egypt, he did not try


to hide his identity. There was even stuff on the internet to show


he was a member of the Israeli army who fought in Lebanon a couple of


years ago. So just everyday business being done by two


countries which still formally have a peace treaty. But relations have


deteriorated somewhat. To some extent. I think the military


leaders here are taking a more pragmatic view of things. They know


the peace treaty is not popular, that they cannot break it off


because they have committed to that alliance and the Americans would be


very disappointed. But I think they are dealing with Israel, perhaps


keeping it at a greater distance, dealing with a pragmatically but


South Africa's main opposition party, the Democratic Alliance, has


for the first time chosen a black leader for the party in parliament.


She's Lindiwe Mazibuko, a 31-year- old woman whose campaign was


supported by the party's national leader Helen Zille. Critics have


described the change in the parliamentary leadership as window


dressing. Our South Africa South Africa's main opposition


party may be dwarfed by the ANC but it is powering ahead in the polls


as it tries to win over black votes. This woman could be the secret


weapon. Lindiwe Mazibuko just secured the most -- second most


powerful place, leader of the DEA She now needs to prove herself to


her party and a majority black electorate. Campaigning here in the


township of Soweto would have been unthinkable just a few years back.


And although this remains staunchly ANC turf the DEA is making modest


inroads. Critics say it promoting Lindiwe Mazibuko... We are building


a democracy, it is not yet consolidated. The DEA is the only


party growing and in the last election got one out of every four


votes so that key position on the most important platform in South


Africa has sparked great interest. They ANC Youth League has demeaned


Lindiwe Mazibuko as simply a servant. She is 80 girl. Her report


-- who ruled must remain in the Some believe that this will


radically transform politics in the next decade.


Gunmen in Kenya have killed four people during an attack close to


the border with Somalia. Those who died were travelling in a vehicle


that was hit by a rocket-propelled grenade. It's the third incident


this week being linked to Al-Shabab, the militant Somali group that has


threatened terrorist attacks inside Kenya. Last week the Kenyan army


crossed into Somalia in pursuit of Al-Shabab after a string of


kidnappings. Our Africa correspondent Andrew Harding


There is a queasy sense of dread on the streets of Nairobi, a city


braced for trouble. Already this week two grenade attacks, a Kenyan


authorities are struggling to reassure the public and foreign


tourists. We have enough men, enough capacity to Secure Kenny and


his visitors. He was why Kenya may be in danger - it army has just


stormed across the border into Somalia. It is chasing Al-Shabab, a


group linked to Al-Qaeda, and blamed for a string of kidnappings


inside Kenya. But nobody seems sure how far the Kenyans will go. Their


offensive could also make Somalia's Fang even worse. -- famine. Al-


Shabab have recently lost territory but vowed to retaliate -- to


retaliate inside Kenny and are still capable of devastating


terrorist attacks and ambitious. The danger is you are being trapped.


I don't think so. If you were in a trap some divinity would have


happened, but as of now I believe we are positive, moving positively


and capturing those hideouts. Kenya, too, the authorities are


claiming progress. An arms cache, allegedly linked to Somali


militants, discovered here. But as the security clampdown continues


there is growing concern about the impact of all of this on the


region's biggest economy. For years Kenya has kept the anarchy in


Somalia or more less at arm's length. But that has just changed


abruptly. By invading its neighbour Kenya has taken a big gamble. In


Nairobi at the doubts are already surfacing. -- the doubts. They are


hard to defeat. So Kenya made a mistake? I think so. But for now,


Kenya's army pushes on deeper into the chaos of Somalia. With no exits


Saturday in -- with no exit strategy in sight. Well, there is


no doubt that the Chinese influence is being felt around the globe and


now that reach extends to Broadway. Alongside Phantom of the Opera and


Les Miserables you will now find Chinglish - a new comedy which uses


cultural tension and the communication gap between the


Chinese and the English language to leave audiences laughing. Damian


Musicals from Porgy and Bess to Mamma Mia! Had long been a Broadway


staple. So it comes as a big surprise to find a new play all


about the language barrier between America and China. Chinglish is


written in English and Mandarin. For the first time at the Chinese


has arrived on Broadway. Cleveland isn't exactly farming, though I


suppose it was at one time. Chinglish tells the story of a


struggling American businessman trying to win a contract to make


signs for public buildings in China. Along the way he falls in love with


a Chinese official. Chinglish is about attempts to communicate


across cultures and the barriers that separate us, the most


superficial of those is language, but then sometimes, even if you're


understanding the words literally you may as well be speaking a


different language because some of the other line cultural assumptions


are so different. Chinglish actually exists in China in the


form of absurdly translated signs in garbled English. But cultural


differences run even deeper than words. To make the play as


authentic as possible the producers of Chinglish tend to Ken Smith and


Joanna Lee, who served as the play's cultural advisers. You now


find American, British businessmen in the middle of nowhere in China,


India, how do they navigate? How do they find their hotel room, be able


to stay there, get what support and help they need on the ground so


they can get their deal? So while Chinglish is played for laughs,


there is no doubt it taps into a deeper cultural anxiety between the


West and China. A reminder of the main news - there has been praised


for a European leaders around the world following the euro-zone debt


agreement. President Obama said the deal was a critical foundation for


a solution to the euro-zone crisis. European leaders worked until the


early hours of the morning to agree a deal, which includes a boost to


the bail-out fund and a 50 per cent write-off of Greek debt held by


private banks. Thousands of people are leaving Bangkok after the


government admitted large part of it could soon be flooded. Roads out


of the City are clogged with traffic as residents take advantage


of an emergency five-day holiday declared by the authorities to deal


with the crisis. Well, that's all from the programme. Next the


weather. But for now from me and The rain today dies out across


south-east England overnight leaving cloud around, keeping the


temperature up. Overnight it will be chilly, a frosty start in places


tomorrow but they will also be a bigger problem with fog. The high


pressure will settle things down for Friday before more frontal


systems come into the north-west over the weekend. For to start the


morning could be dense over parts of south-west England, through the


Severn Valley to East Wales and the West Midlands, some even may linger


into the first part of the afternoon. Any early fog will clear


way in northern England. The cloud stays with us in south-east England,


15 degrees in London, it might not feel like that because of the cloud


that stays across us. They could be patchy drizzle on higher ground.


Sunshine in south-west England but sunspots may stay grey through the


Severn Valley. If you have low cloud or mistiness that will halt


the temperature down compared with elsewhere. A freshening breeze in


Northern Ireland, still bright foremost by the end of the


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