tv BBC World News America PBS October 4, 2011 4:00pm-4:30pm PDT
the debt crisis. and hours away from getting back to america. and now they're or five. unveiling the new iphone, but how much longer can apple keep competitors at bay? welcome to our viewers on pbs in america and also around the globe. beware the bears, at least on wall street. today, one of america's major share index is was off the spigot, the kind of fall usually associated with the beginning of a bear market. there are signs the euros and debt crisis is becoming a banking crisis. remember lehmans? now think dexia. the european bank is in talks
amid fears it will crash. >> it started as a sovereign debt crisis. because of fears of whether banks are strong enough to withstand losses, it is now the banking crisis. >> all in all, the financial sector is getting beaten. the only solution is to go into default. >> they have serious confirm mentality. -- bunke mentalityr . >> there's a lot of talk about what is at stake, but not a lot of fixing. >> everyone understands it time is running now for the year rose zone to resolve the crisis. we did make -- for the euro zone to resolve the crisis. we did make progress. it confirms my view we are doing
damage to the british economy. indeed it is doing damage now. >> the first bank in crisis is the french and belgian bank dexia. what has made it so vulnerable is it is heavily dependent on borrowing to the tune of 250 -- 240 billion pounds. in times of high anxiety, those sorts of creditors will not lend and often want their money back. if a bank cannot borrow, it is curtains. and that is why dexia is talking about a rescue plan. painful memories from 2008 when banks were too frightened to lend to each other. and now the attention is on italian and french banks. >> banks are putting more and
more money into the ecb. that is not working any longer. we're back in the situation after the default of lehman. >> in markets around the world, the word of everyone, including the head of america's powerful central bank, it is contagion. >> the markets are concerned about a resolution of the greek situation. there is broader concern about sovereign debt issues and european banking issues. one of the reasons that our recovery has been slower this year than last year is a we have faced a lot of financial volatility, and some of that is coming from the european situation. >> the recognition by european governments that europe's banks must be strengthened. what is unclear is whether they will do that fast enough to prevent the financial crisis from becoming economic recession. >> as you just heard, the problems in the year rose on are
they staying in the year rose on -- in the euro zone are hardly staying in the euro zone. for more, i spoke with robert reich. it is still not like what we've seen in the scale of madrid and even paris. >> americans are very frustrated. the degree of economic stress in america right now has not been as high as since the great depression, but it is not nearly as high as it was during the great depression. young people are out of work. it is not terribly surprising that some have taken to the streets. there does not seem to be a very clear and precise agenda for this movement, if you want to call it a movement, except there is great distrust and anger directed to wall street and
corporations. we may see more. it is hard to tell. >> some seem to be blaming what is happening in europe, and the white house has woken up to the fact that if the market collapses in europe, there is very little they can do, is there? >> the united states economy is still large, we're not that depended on europe right now. the domestic demand is the critical thing. the fact that consumers in the united states whose spending comprises 70% of the u.s. economy are so scared -- not only about losing their jobs, but their wages are falling. a new report showed that family incomes are down, and that is very surprising when you consider that most families up two way -- the top wage earners, and unemployment is a strong and debt burden on most families. put all that together and
americans are not eager to go shopping these days, which means american companies are not eager to expand. >> let's look at the policy options that are available. you advocate spending more and worrying about deficits later. critics would say we have already tried that and we'd still have unemployment above 9%. >> in de. most studies show -- indeed. most studies show the first in u.s. bill saved about 3 million jobs, but that is very difficult to prove. in the politically-charged environment, katty, it becomes harder for democrats in the white house to say we need more stimulus because it worked the first time. even though it did. consumers are not going to spend and businesses are not going to expand and hire because consumers are not spending. then you ought to look at the
center of last resort, and that is the government. >> thank you so much for joining us. >> thank you. >> among the major consequences of the defaulting economy is the spiralling rate of youth unemployment. nowhere is that more dramatically displayed than spain. >> it is the young who could lead spain out of the crisis. but they were in the jobs center this morning. >> it is very worrying. >> this is europe's fifth largest economy, and it is running on nt. spanish drug centers happen bustling since the crisis began, and -- job centers have been puzzling since the process began. spain has shelled out lots of money in unemployment benefits. then there are the increasing fears of a growing lost generation. and you find it that madrid's
largest university -- and you find it at madrid's largest university. how many of you think you will get a job? how many are confident? any job. >> any job? >> anything at all. about four or five people in your out of 28. how many think you'll have to leave spain to get a job to live the lives you want to live? yes, there go most of the hands. meet the latest recruit to the brain drain of spain. he is leaving for the netherlands. an economics graduate, she worries about her country. >> i do not think the preparinges are people and students are taking all the opportunities they have. >> so, spain needs to change? >> yes. >> but the labor minister tells
me that use immigration is not a problem. >> it is important, but i do not see it as-if young people who opt for a future in europe pursue that. it is quite normal to go abroad for work. i do not see it as a problem, but actually a big advantage. >> spain is caught up in the debt crisis that is hitting europe. the government insists things will improve, but many fear without the young it will take longer. >> for the country to visit this group of people who helped raise the productivity of spain, which is quite low, it is a tragedy. >> in the university canteen, many feel that. across europe, youth unemployment is rising, and it is just like the continent's economic crisis. there is no end in sight. matthew price. >> 24 hours after we brought you
the trauma of the -- drama of amanda knox o's conviction being overturned. in seattle, they are planning a big homecoming party. from there, david willis reports. >> leaving italy after almost four years in prison. amanda knox grinned broadly, knowing she was finally going home. back to the trend will charm of this remote corner of america's pacific northwest, where a simple sign hangs on the porch of her father's home. amanda knox enjoy considerable support here, despite all the unanswered questions. >> there is no doubt in your mind that she was not? >> never at all. from day one, we thought it was
impossible. we know her. we know her character. she grew up your. we knew that would be impossible. it would just be the outrageousness of the prosecution's language tells you all you need to know. >> meanwhile the family of meredith kercher, the british student who was found with her throat cut, but are back to square one. her sister was asked the question, could they now forgive amanda knox? >> unsold the truth comes out come up -- until the truth comes out, we cannot forget anyone because no one admitted to a. until that happens, we have to wait and see what happens. >> who one person -- one person remains in prison for meredith's murder. prosecutors say he acted with
others. if not amanda knox and her former boyfriend, who was it? the italian prosecutor plans to take the case to the highest court in milan's. but by then, amanda knox, whose sensational acquittal led to were being escorted sobbing from the court, will be back home. so, too, her ex-boyfriend. amanda knox was taken from prison in a carefully-planned operation to avoid waiting and photographers. she even enjoyed vip treatment as she changed planes in london. avoiding the spotlight may be more difficult when she reaches america. >> david willis reporting their. in other news from around the world, the islamic militant islamical-shabab carried out a suicide bombing in mogadishu.
-- it is the deadliest single attack in the group's five-year history. it is the worst such attack in 20 years of civil war. 20 have been killed after the helicopter they were traveling in crashed into new york's east river. 3 passengers were pulled from the water with the pilot. a woman died. of the passengers are believed to be british. today in delhi, the league leaders of india and afghanistan signed the leadership agreement. the forces that were at ousted by the nato invasion 10 years ago are trying to pull the agreement backwards. just a short time ago, i spoke with a former senior adviser in the usaid department. it looks like they are poking a
finger in the eye of pakistan. a diplomatic solution looks further away than ever, does it not? >> i never thought they looked close to begin with. but i do not argue your point. they will promote. the government has essentially concluded that pakistan is not going to be a partner in the conflict, that pakistan is going to continue to provide a sanctuary for the taliban, so you are beginning to see the afghan government reposition, basically look for partners where it can find them, in this case delhi. >> earlier this summer, you wrote that democracy promotion, counter-terrorism have come up short in american foreign policy. they were behind the initial invasion of a canister and 10 years ago. if those will not -- the invasion of afghanistan 10 years ago. if those will not be behind
american foreign policy, what will? >> i believe that we need to return our emphasis back home to restore our infrastructure, our homes, our schools, and we should not be trying to remake the society in places like afghanistan. it is not going to succeed. is certainly not worth what we are spending in terms of blood and treasure. essentially, and give up on the ambitious policy that has proven, i think, extremely costly and is not going to pay off. >> is that the same as isolation? you talk about the doctrine of restoration. >> it is not isolationism. isolationism is when you turn your back on your vital interest. i am not saying that. we should worry about north korea. the united states should maintain a balance in asia.
we can go on and on. but we should not take the discretionary undertakings like in iraq, afghanistan, where our interests are less than vital, the costs are enormous, and the prospects are for. instead we should put our marginal dollars were we have some options. this is not isolationism. this is to preserve the strength of the united states so we can act, so we can lead in the world if and when our vital interests are challenged. >> your in new york watching what is happening in the white house. do you think american policy leaders are listening? >> that would be a change. i do think it is in the ether, whether they're listening to me or not. over the last decade or two, the united states has lost its way. we have gotten too ambitious in this nation building overseas. we do not need to become isolationist, but we need to become more discriminating. you see this in what the
president is talking about about nation-building and home. with the republican debates. you are not hearing a lot about foreign policy. you are hearing about growing the economy. i think the next phase of american public policy will be more dust -- more domestic than international. >> thank you. we could go on forever. >> thank you. >> still to come on tonight's program -- rolling up apple's latest offering. as the new iphone is released, and steve jobs' successor keep customers coming back for more? >> archbishop desmond tutu has compared it be tibetan government to apartheid because of the treatment of the dalai lama. from capetwon, we have this --
capetown, we have this. >> just hours before the dalai lama said he was canceling his visit. he had been invited to celebrate archbishop desmond tutu's 80th birthday, but the possibility of him being issued with a visa looked increasingly in doubt. >> 20 years ago, the dalai lama -- my organization would have been outraged. i am outraged now for the same reason. >> this has become a hugely emotive issue, not least because of the support he gave during the fight against white-minority rule. it is our relationship with china they are keen not to put in peril. teh dalai lama's office said
that a broader reason the south african government finds it inconvenient to issue a visa to his holiness the dalai lama, so the dalai lama called off the his visit. the south african government has insisted it is not been influenced by china. the foreign affairs ministry has refused to comment. bbc news, capetown. >> it has been months since the june eruption which sent residents in chile scrambling, but still the ash rains down on patagonia.
plant near hernandez has the story. -- vladimir hernandez has the story. >> from here, the green has turned to gray. today it looks more like a construction site. when the volcano erupted, a cosh soared -- ash soared miles into the skies. it is still falling. in the months since the eruption, an enormous amounts of ash of fallen. you can feel it in your clothes, your hair, even in your teeth. it looks like ordinary sand, but in some locations rocks of this size have fallen. this area depends on tourism.
yet with the volcano still erupting, few visitors are prepared to risk it be a long journey here. >> in the first month, hardly anyone managed. today businesses are getting 20% of their usual trade. >> we were taken to a small community on an island close to the call came up. on our way, we encountered a remarkable scene. a small deer covered in ash tried to climb back up the cliff. blinded by the volcanic ash, it will struggle to survive much longer. there is no worse a to go. -- there is no where it safe to go. >> back on shore, the refusal to surrender to the volcano's awesome power. one had lived here all his life. >> this has totally changed our
lives as we are accustomed to living in a beautiful green area. we are determined to stay here. we're going no where. >> they have to cling to hoe because scientists cannot predict what the volcano will do next. it has erupted on nearly at a daily basis. officials are preparing for future evacuation's. the majority of the town -- the spirit of resilience will be needed in the coming months. the pocono slept for 50 years before this direction and no one knows -- the volcano slept for 50 years before this direction and no one knows when it will go silent again. >> it looks like snow. and now to the highly anticipated release of, yes, the latest in. the latest generation of the device is unveiled, but will be the key to fighting off
competition? >> a regular cell phones are not so smart, not so easy to use. >> he was a charismatic boss in the technology business, but now he steps down. steve jobs has handed over the reins of apple to tim cook. the new boss may have been looking forward to today's entry on his calendar with a measure of dread. >> i would like to invite him go, our chief operating officer, up. >> good morning, everyone. >> now he is in charge of a business whose previous leader was uniquely successful. one young technology boston's not envy him. >> steve jobs was masterful at the unveiling, making technology sexy. i think he almost invented that. be on boxing of new gadgets. they became knots -- not geek, but chic.
>> and that is a tough act to follow? but that is a tough act to follow. >> rivals in the phone business. for all the buzz in the business, apple does not take the lead. android it has claimed 40% of the market. the iphone is back in third place with 18% of smart fund sales, but that keeps on rising, and here is the key thing. it is out making the but acrostic. >> blackberry. >> he says apple has to keep moving ahead. >> there is no room for complacency for apple right now. this will be the most important iphone launched today. there are products like samsung galaxy s 2, and they are
knocking on at apple's door. >> steve jobs told people they were holding their phone the the wrong way. does the new leader have the arrogance to keep apple at the head of the pack? >> that brings us to the end of today's broadcast. do not forget to use those new iphones to check our web site. to check in with us tomorrow. -- do check in. >> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new
york, stowe, vermont, and honolulu. newman's own foundation. union bank. and shell. >> this is kim - about to feel one of his favorite sensations. at shell, we're developing more efficient fuels in countries like malaysia that can help us get the most from our energy resources. let's use energy more efficiently. let's go. >> "bbc world news" was presented by kcet los angeles.
>> ♪ i'm a whirlibird. >> pbs kids, where a kid can be a kid. for over 90 years, stride rite's been there, from the first wobbly walk to the first day of school, helping you choose the right shoes. stride rite is a proud sponsor of curious george. rainforest cafe, proud sponsor of curious george, reminding you that anyone can make the world a brighter place by conserving our natural resources. when you're saving one can... both: you're saving toucans! (toucan squawks) funding for curious george is provided by contributions to your pbs station... ooh. ...and from: (lively drum intro) ♪ you never do know what's around the bend ♪ ♪ big adventure or a brand-new friend ♪ ♪ when you're curious like curious george ♪ ♪ swing! ♪ ♪ well, every day ♪ every day ♪
♪ is so glorious ♪ glorious ♪ george! ♪ and everything ♪ everything ♪ ♪ is so wondrous ♪ wondrous ♪ ♪ there's more to explore when you open the door ♪ ♪ and meet friends like this, you just can't miss ♪ ♪ i know you're curious ♪ curious ♪ ♪ and that's marvelous ♪ marvelous ♪ ♪ and that's your reward ♪ you'll never be bored ♪ if you ask yourself, "what is this?" ♪ ♪ like curious... ♪ like curious... curious george. ♪ oh... captioning sponsored by nbc/universal narrator: some important events happen just once a year. (clock chimes) new year's eve... (loud squeaking) ...the first day of school... (chatters "bye-bye!") ...and, of course, the annual corn roast and attic auction at endless park elementary. mmm! this is really good!