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tv   Journal  PBS  July 23, 2010 5:00pm-5:30pm PST

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captioned by the national captioning institute >> welcome to "the journal." >> welcome to the show. >> key european banks pass the stress test. german business confidence hits its highest level in two decades. >> in the gulf, the peak evacuates its wellhead as tropical storm bonnie makes landfall in florida.
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we have a better idea of how strong european banks are. results of the banking stress test were released earlier today. >> 91 banks were tested, seven failed including some from germany and spain and greece. >> the failure of hypo real estate was not a surprise. >> as markets closed across the u.s., the committee of european banking supervisors released the results of their test. seven european banks failed. if the worst-case scenario came to pass, they would not have the capital they need to survive. hypo real estate was the only german bank that did not survive.
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five regional banks in spain failed as well. deutsche bank topped the results before the german banks tested. commerzbank also did well. >> the results are surprising because they are along the same lines we have seen for a long time now. there is a rise in the average capital ratio in the german sector from 9% in 2008 to more than 10% in 2010. >> spanish banks would need around 1.8 billion euros to survive another credit crunch. the head of the central bank in spain emphasized that the stress tests were only an exercise and not a forecast. he said that regional banks saturday been restructured. the results have been met with widespread relief. they show european institutions
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are in good shape but it is to be seen how the news will affect the markets. >> we are putting a lot of stress on the stress tests. earlier, i spoke with the banking and credit institute head here in germany and i asked how the german banks had feared. >> some of them have failed but this was not a surprise. there is also the reconstruction bank anyway. there's nothing new. >> what about the german press bank. what will happen to them? >> the point is that they did not need much capital until the crisis. there has not been much trouble until now. >> let's move beyond germany,
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any surprises for the other countries in europe? >> the lead surprises are the savings bank in spain. we did a stress test in europe to help the spanish government make up their mind. >> these were aimed at restoring transparency and confidence. were they tough enough to do that? >> well, the point is that the stress test is looking at one scenario and there are many other that might be possible the problem is that we don't have real alternatives to get transparency in the market. i am sure that they have a great amount of confidence in the banking sector. >> does this say anything between american and european systems?
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>> the american system has been the place where the crisis began. there is much more recapitalization down there was in the european countries. europe still has a strong banking sector. >> thank you for talking with us. timing is very important on this friday, the results of the banking stress tests were released after the stock market had closed. the final numbers for the week do not reflect investor reaction to the stress test. let's take a look at the numbers as we go into the weekend. on wall street, the dow having a late session rally. american express, ford, and mcdonald's topped expectations. the dow ending the day at
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10,425. the business world here in germany has not been this upbeat since 1990. the closely watched business index rose to its highest level in 20 years. the head of the institute went so far as to say that the german business leaders are in a party mood. >> right now, the focus is very much on maximizing workflow and keeping up with orders. this is a common trend among most injuries -- industries. the german business sector has left temporary contracts and short-term programs behind. over the last 12 months, the mood of german management has been on the upswing. an index jump of more than four points like this one has not happened for 20 years. the outlook is good.
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the 7000 managers surveyed for the index say they raise their prospects for the next few months even higher than now. >> germany is not the only country where things are looking up. the numbers show that the british economy grew twice as fast as expected. gdp grew by 1.1%. the best performance came in the construction sector which went up 6.6%. >> watching the situation in the gulf very closely, ships and crews at the site of the oil well in the gulf of mexico are now heading to shore as a tropical storm moves into the area. the storm has already made landfall in florida top winds of about 65 kph.
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a cap that is petroleum has placed on the wellhead will remain there but container ships and drilling vessels are moving to port for safety over the next 48 hours. >> as tropical storm bonnie approaches the gulf of mexico, dozens of vessels have been ordered to leave including a rig that has been drilling a relief well in order to stop the leak permanently. >> if it was not for the storm, we were within 10 days of this happening. this could be anywhere from a few days to 10 weeks. >> bp says that it will be in place. it will be possible to regulate
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pressure during the storm. with bonnie packing winds of up to 65 m.p.h., the governor has declared a state of emergency. >> u.s. senate is preparing to release an energy bill next week that would reform offshore drilling rules. the democrats have postponed plans for broader legislation to combat climate change. that delay further undermines barack obama's pledge to cut greenhouse gas emissions. he proposed to cut u.s. emissions by 17% at the last climate summit. the white house insists they have not given up on an energy tax and the carbon trading program. clean up efforts continue in china's biggest oil catastrophe. the first details are only beginning to emerge. investigators believe that a
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chemical to remove sulfur was pumped into the pipeline by mistake and the leak has been repaired but not before about a million barrels of oil went into the sea. the assessor in coastal communities and wildlife. accord and the netherlands has find an oil trading company 1 million euros for illegally exporting waste to the ivory coast. the shipment was dumped in the open air and in the capital of the ivory coast. thousands of people became ill complaining of abdominal pains, bleeding, and burns. they have denied any wrongdoing and they said it could have caused serious -- and today do not think that it would of caused serious illness. north korea has threatened a
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physical response to measures being taken by the u.s. to punish p'yongyang for its alleged sinking of a warship in march. they announced new sanctions on north korea and they will begin large-scale military exercises with south korea and two days. north korea made the threat on the sidelines of the summit in hanoi. >> final preparations aboard the uss george washington before four days of maneuvers. naval exercises are supposed to show solidarity with south korea. the aircraft carrier has arrived from japan. >> this is an example of a hostile policies against us. we will have an aggressive response.
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>> tensions between washington and p'yongyang whenever likely to be far from the surface at the summit. relations reached a new low in march after the north was blamed for the sinking of a south korean war ship. the behavior of the northwest called provocative. -- the north was called provocative. this week's maneuvers will likely widen the chasm between the two communities. >> there was an attempt to block the blockade of gaza in late may. some activists were killed by israel the commandos in the incident. the u.n. human rights committee intends to investigate whether the attack violated international law. a former u.n. prosecutor will
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lead the inquiry. it is not clear if the u.n. will cooperate. the international aids conference has wrapped up. the conference took european governments to task for allowing the number of infections to rise. it also warned that around the globe, prisons were becoming breeding grounds for hiv. >> scientists, policy makers, and health policy makers attended the conference. they called for expanded attention to hiv prevention and care. eastern european governments came under fire for failing to provide adequate programs for drug users. they say this is causing the virus to spread at an alarming
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rate. >> only something like 10% of all drug injectors have access to needles and syringes. we need a huge scale increased to prevent the problem spreading from drug users. >> funding issues topped agendas. delegates said that more than 40 million people are infected with hiv but only 5 million have access to adequate care. this is despite the promises to achieve universal access by this year. >> we will have to extend our deadline but we have seen that this goal is not an illusion. we can actually achieve it and that is really something. >> delegates are committed to a new goal to insure everyone has access to treatment by 2015. >> france's new national coach
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has dropped all 23 world cup players. france was eliminated in the group's stage at the world cup after failing to win a single game. the players also boycotted a aff the players was sent home for verbally abusing the coach. the tour de france is nearing the conclusion. with only two more stages remaining, this took people north from the pyrenees mountains to bordeaux. >> cavendish has shown he needs no help in sprint finishes. one of his teammates was eliminated for using a head butt on another competitor. in two hundred meters from the
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finish, he accelerated and no one could launch a challenge. this was his fourth stage victory on this tour and his 14th overall. a yellowed jersey holder held on to his aid second lead. the day's other highlights was a photo opportunity with tom cruise and cameron diaz. >> a formula one -- is hoping for a victory. the red bull driver was second- best for friday's practice. there was a bad start to the weekend. the driver smashed into the tire
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wall that managed to set the fastest time. that was quite a crash.
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>> welcome back. this weekend, the formula one circuit comes to germany. this is one of the most demanding raises of the season. a young german is considered the favorite. he has cemented his reputation as the heir to the german f-one thrown with some solid victories this season. he has been in fourth place in the driver's standing. he is looking to stay in the race. >> the head of the german grand
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prix. cheering fans greeted the driver wherever he goes. these promotional stops are a huge motivation before the race. >> i've not achieved this yet but this would be a dream come true. >> far from dream life is the relationship with his team colleague. in istanbul, they collided while one was trying to overtake. that put one of them out of the waste -- out of the race while webber and his third. >> there were plenty of rumors circulating in the press but most were untrue.
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it is important to sit down, discuss it openly, find out who said what, and what was meant by it. we both agreed it was not our finest moment but this can happen. it is important to get on with things now. >> the drivers feud flared again at the british grand prix. he was given webber's car, much to webber's frustration. weber went on to take the checkered flag in another race. >> we are managing two competitive animals. they are fairly intense. >> the energy drinks company red bull as been the driving force between -- for the racing
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career. the team is downplaying any suggestion of favoritism. redpoll is aware of the fierce rivalry provides an element of from on which for many people increases the appeal of the sport. >> it makes it very interesting for all of us to have these things happen because that is what makes formula one exciting. >> formula one fans are sure to be watching the dueling drivers closely to see who wins out this weekend. >> we spoke to an f one- commentator and driver and asked him if the infighting will hurt vettel's chances of winning the world championship.
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>> i don't think so. i don't think that this will lead to vettel losing the world championship. he will be inspired by such the hard fighting wbber. he will push at sebastian to the limits. this will help them to the title. the opposition, these are the key drivers which he eventually have to beat if he would like to win the title. >> we will be going back to this in a moment. before there was vettel, there was schumacher. he has come out of retirement. his comeback has been seen as a letdown. his best result was a fourth place finish. he is determined to make it on to the podium.
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>> the comeback of the year, they persuaded schumacher to return to the formula one circuit. instead of bailing out of the sport, mercedes pulled off the cessation of the season. -- sensation of the season. >> our technology has to be good enough to create a competitive advantage to be contenders for the championship. >> he put in a mediocre performance. his driver bochco driver placed sixth. he managed podium finishes and two races. -- his co-driver finished
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sixth. the world champion has not achieved a podium finished yet this season. the team hierarchy has been put on its head. schumacher enjoyed number 1 status for many years. >> i think that he is still enthusiastic. he is fit any has proven what he is capable of. he has 91 victories. no one has achieved as much as he has. >> formal one has a new star. the mclaren drive-in's have been stacking up -- drivers have been stacking up victories. shoe marketer is trailing behind the leaders that he is out of the run for this year's title. -- schumacher is trailing behind the leaders. he is looking to take a head of
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the pack again next season. >> we spoke to donner and we asked him how long that he thought schumacher would be able to compete and if he had a future in formula one? >> well, he is not known for being a patient presents. he is very determined. he has come back and done quite well. however, the environment which he ended up in had dramatically changed to the days when he was successful in formula one. nowadays, you have a key rebel drivers in a fantastic car and they are all quick enough to beat him. -- you have two red bull drivers.
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michael is up against a lot of other drivers, not just his teammates. >> there has been a lot of changes to for the one recently. have they made the sport more exciting? >> i don't think that the rule changes have made it better. what has made it better compared to last year is the fact that we have so many good drivers and cars. that is why the racing is so good. if you want to overtake each other, you have to do this on the track. that is a very good move and this improves to show a lot. formula one this year has produced the most spectacular races. the second half will be even harder because of the pressure,
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this will not drop. this will increase for all of the participants. >> thank you for joining us. stay with us if you can. >> the weather forecast for germany, heavy showers will clear up later. the eastern areas will continue raining. over the coming days, clouds and rain are expected with cooler temperatures. elsewhere in europe, hot weather along the mediterranean and in russia. the rest of the continent will get some relief from the recent heat wave. here's the forecast for selected cities around the world.
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