tv BBC World News America PBS July 8, 2015 2:30pm-3:01pm PDT
>> this is "bbc world news america." >> funding of this presentation is made possible by -- the freeman foundation, newman's own foundation -- giving all profits from newman's own to charity and pursuing the common good, kovler foundation -- pursuing solutions for america's neglected needs, and mufg. >> it is a global truth. we can do more when we work together. at mufg, our banking relationships span cultures and support almost every institute across the globe, because
success takes partnership, and only through discipline and trust can we create something greater than ourselves. mufg, we build relationships that build the world. >> and now, "bbc world news america." >> this is "bbc world news america"." reporting from washington i am katty kay. chinese shares are down 30% in three weeks and the selloff is rattling markets. in the u.s. computer glitches stopped trading on the new york stock exchange and wreaked havoc on a major airline. 40 years after the brazilian football star pele signed to play in america, we hear from the man who made it happen. >> i knew they were after him and i said ok.
if you go there, you can win a championship. if you come with us, you can win a country. ♪ katty: welcome to our viewers on public television in america and around the globe. today the theme of financial uncertainty stretched hemispheres. in a moment we will get to the problem in the u.s. and greece, but we start in china were stock markets continue following. in the last three weeks the country's main indices have lost one third of their values. >> on the shanghai stock exchange, green is the color of despair. a bubble bursting. nearly half of the companies listed have suspended trading altogether to stop their share price from falling further.
whatever the board says, this is no longer a working market. >> the crash will come, the question is when. if it comes later with the billable gl -- with a bigger bubble it can be devastating. the fear is now if it is a systemic financial crisis. >> this is a full-scale emergency. the government is forcing take players to hold onto shares and even to buy. they call it a patriotic duty. that patriotism is at war with the survival instinct, and the market is plunging. four out of five investors ordinary people. when the stocks soared she gambled her life savings of 20,000 pounds. now, her shares are half of the
value. she wants to believe that politicians can turn the disaster around. >> of course it is very painful but there is nothing i can do. we still hope the government will be able to help. >> the government controlled tv news mentioned the stock market problem without mentioning the rescue was failing. their top story was the president at a regional story in russia. that facade of normality will be hard to maintain if the damage spreads to the rest of the world's second-largest economy. china could make the problems of greece feel small by comparison. katty: for more on this crash i'm joined by the former world bank country director for china. he is now at the carnegie
endowment for national peace. >> you have to be discouraged. it began with the objective of developing the equity market. it now sees a tremendous crash and is caught in how to handle the big problem. katty: it doesn't look like much of a free market when you start imposing controls because there have been falls. >> the difference from what we have seen globally is that this was a government driven market. they encouraged firms to list their stocks and encouraged investors to come in. they encouraged margin trading for small shareholders. they accelerated the rise, and it accelerates the decline. katty: behind this is the housing market bubble? >> they began thinking that the market had peaked. what can the chinese do with their money?
they encouraged them to put it into equity markets. people were making 10% a month. they didn't realize it wouldn't continue forever. katty: most of the investors are chinese. you don't have a huge amount of foreign investors. how does this ripple out around the world? why are we seeing markets get nervous and other countries? >> you are correct. only 4% of chinese markets come from overseas. they are the second largest economy. it is slowing down. it's financial markets are linked with global markets. capital used to be hard to get out and end, now it is easier with narrowing interest rates. what is happening in china today, 10 years ago it when you made a difference. now that the markets are linked it is having a ripple effect. the question is do let the market shrank back to be a free market?
that level is much lower than normal levels, so they try to soften the decline. you cannot make it stay at the level that is unsustainable. a year ago the shanghai composite index was 2000. it went up to 5000. it is down to 3500. a stable number could be 2800. katty: do you think the market should continue propping up? >> they have to realize they cannot keep it at an unsustainable level. they have to let it slide in a controlled fashion. they have not come to that realization. katty: thank you for coming in. if the chinese wells weren't enough, the greek prime minister has promised european editors proposals tomorrow. that is the deadline.
the head of the imf said greece is in a situation of crisis and the eventual institution cannot bend its rules. heaven hewitt has --gavin hewitt has more. gavin: they need funding or face exit from the euro. it is a country slowly unraveling. greece imports large amounts of meat, but it's suppliers are demanding cash. >> if the banks close, no foreign supply will sell us meat. we will be out in 10 days. gavin:there is no panic buying here, but customers are stocking up. >> we have experienced dramatic differences in demand in certain products like pasta rice,
baby food. >> the greek government reassured people there was adequate food supplies. in the cafes, they watched the prime minister, alexis tsipras take his case to the european parliament. there was some booing as he called for a fair deal. >> we are fighting for an agreement. we want an agreement that means a viable way out of the crisis. we see a light at the end of the tunnel. gavin:in greece there were large queues at the atm machines with the banks remaining closed for the rest of the week. greece has requested a three-year loan, and has to deliver detailed reform proposals tomorrow. with a few days left for the headline alexis tsipras will have to sell painful reforms to
the greek people. but he helps for in return is a commitment to discuss debt relief in the future. france described the latest proposals as balanced and positive. other countries are more cautious. abc news at -- bbc news, athens. katty: there was a shutdown of trading on the new york stock exchange for three hours after a computer glitch. united airline's and the wall street journal also experienced difficulties. i spoke with michelle fleury who was outside the stock exchange. we have the wall street journal, united airlines, and the stock exchange shutting down because of technical glitches, people automatically look at cyber terrorism. what are people saying?
michelle: people are drawing patterns. we are learning these events are separate. united airlines says it was due to a technical fault at a router. they now had -- they had a similar problem earlier this year. the stock exchange spent most of the day with the traders trying to figure out what was happening. that was down to an internal technical glitch. we do not know any more details. katty: what happens to people who were trying to make trades during the course of the day when the market reopens? will a flood of trades suddenly go through? michelle: that was part of the concern. when you have had a technical glitch with software, and you suddenly open it back up to everything, is there a danger it could crash again and be overwhelmed?
we are seeing the trading opening slowly stock buy stock. you can see the prices refreshing. you have to remember that 20% of all u.s. stocks go through this building. the stock market is diverse, but you have other places where the stocks can be traded. if this place gets overwhelmed they can go to other places like the nasdaq. where they did do was they canceled all orders that had been placed. those, the question is whether those were automatic orders, and what will happen to those. you don't know if they came back into play when the market went back online. katty: michelle fleury in new york. and a lot of worry and financial like dignity. the former italian prime minister is guilty of bribing a senator to bring down the
government. the court and naples sentenced him to three years in prison for the latest offense. the statute of limitations will take and before his appeal can be heard. pakistan has confirmed they hosted the first official pierced talks between the afghan government and the taliban. chinese and american officials were present. both sides agreed to meet again after ramadan. a short time ago i spoke with the former american ambassador to afghanistan. how significant are these meetings between the taliban and the afghan government? we have had meetings before. why are these more important? >> meetings have happened in the past but this one is the first time that it has been convened by pakistan where the taliban headquarters are based. they have been face to face.
a meeting involving the government if ever i -- the government of afghanistan. we do know how authoritative they were. the fact that the americans and the chinese were present as observers. it is a potentially significant step. katty: why were the chinese there? the americans i can understand. >> the afghan government,,the new administration has tried to engage the chinese on the issue with the belief the chinese have influence over pakistan. that they could encourage pakistan into helping with the reconciliation process. they also pushed for the afghan government for a chinese-american-afghan meeting
for a couple of the meetings. a couple of them have taken place in the uae for example. the afghans are pushing for chinese engagement because of the potential influence. katty: doing know who is therefore representative for the tally ban, and how high it went in the taliban? >> the names of the taliban participants have not been released, yet. we will see how the powers react to the pakistani press statement issued today. it said that those who participated in the meeting were authorized by the leadership of the taliban. they said the same things about the afghan. we will see how the taliban reacts. if they do not react negatively that would be a positive indicator. katty: we would assume that he
was giving acceptance of the meeting. >> that would be the implication. katty: they had meeting, they will meet again after ramadan. how far do you think the talks will go? >> the negotiations will be highly complicated. the devil in these negotiations are always in the details. the afghan side would have to keep the broad coalition that is composing the government together. they would have to develop a consensus on how to respond to demands by the taliban. there will be fighting, as well as talking, if not at the same time. it will be very complex, very difficult, and there may be ups and downs. i think, as a first step especially if it is accepted by the tally ban as authoritative
-- by the taliban as authoritative, is a positive sign. katty: still to come on the program, putting a life on ice. with a warning of another mass extinction the race is on to collect dna from all of the plants on the planet. in thailand the trial of two burmese migrant workers accused of murdering 2 british tourists have began. the bodies were found on the beach on the holiday island in september last year. investigation by the thai police has been criticized with confessions retracted and doubts over dna testing. >> migrant workers from neighboring myanmar, if found guilty, could face the death penalty. a short boat ride away is a
place where they once served tourists. there is a small shrine near where the hotties were found. one note next to david miller talks about treasuring 24 years of memories. his body and 23-year-old heather led to a much criticized police investigation. these were the bizarre scenes. a reconstruction of the murder was held after the burmese men confessed. later, the confessions were retracted amid claims that they had been tortured. or in sick evidence and the quality of the thai police investigation -- forensic evidence and the quality of the type police admit -- police investigation will be central. people are still asking if these 2 poor migrant workers have been made scapegoats for crime the
authorities were under intense pressure to solve. they want to see justice done. a small group of the backpackers' relatives have come. they have released statements calling for a fair process and for david and hannah's dignity to be respected. thailand, bbc news. ♪ katty: today, an ambitious project is underway to collect the genomes of the planet planets major plant groups and put them into deep freeze. it is part of the global genome initiative to preserve the dna of all life on earth. it is a race against time as scientists warn of a sixth mass extinction.
>> we will collect this route. this route sprout. it will not hurt the main trunk of the tree. >> scientists are taking samples from the chocolate tree. >> will put the material into the vial. >> it is the first to genome from the u.s. botanical gardens to be included in a project to preserve all life on ice. the goal is to collect genomes from thousands of different plants and it is becoming urgent. the planet has now entered its sixth massive extinction. the last one killed the dinosaurs. >> the genome project is to preserve the genomic history of these plants. in the future it might be possible to take parts of these genomes to put them back into plants but our goal is to preserve the genomes so we can understand how life works on the planet. >> half of the world plant families are in the u.s. botanic
garden. >> we are in the hawaii gardens. an environment that is under threat? >> that is true. this plant right here is a perfect example of hawaii under threat. it is a plant that is extinct in the wild. today it is only in the botanic gardens. >> the plant samples are taken to this enormous cryopreservation center in maryland. it is operated by the smithsonian, which is overseeing the global initiative. >> we have space for 4 million to 5 million samples. there are only 2 million samples of species on earth. we want a dense enough sample to allow us to understand and enormous amount of what makes
life. >> dna degrades within three minutes of death. it is essential to freeze the samples in nitrogen. it is not only plants. eventually this center, and others around the world, will have captured genomes are presenting all life on earth, deep frozen forever, and waiting for the science to come. bbc news, washington. katty: let's hope the science comes in time for all of us. extraordinary experiments on the world's plant. -- worlds plants. the u.s. is basking in the victory of the u.s. women's world cup. 40 years ago it was the signing of pele that gave soccer it's first boost. the former general manager spoke to bbc witness about how he did it.
>> the only soccer player and the entire universe that americans had heard of was in southern brazil. the state of soccer in the night of states and the 1960's and 1970's was pathetic. no one was interested. only what it was. we talked about what it was to build a game. the signing of pele. when i first met pele the first time i talked to him on the subject, was in january of 1971. i went to see him. he was sitting by the pool. i want to talk to him about what he could do for soccer in the united states. he listened. i left. i heard later he said, it was
very nice, but why was that man talking to me about new york? over the coming months and years, i met him in scores of places. my strategy was simple. it was we are building the game in the united states, and you can do it. i knew they were after him in rome. i said, if you go there you can win a championship. if you come with us, you can win a country. finally outside of brussels airport he said ok, i will play in new york. i got a piece of paper and said write it down. he did, and he signed it. >> the easiest way i can tell you the news that we have to impart is to say, here today, we
have a shirt, and tomorrow we should have the man. pele has told us that he will return to soccer and play for the new york cosmos. >> it was incredible. the noise and reception. it was wonderful. >> the biggest impact that pele had was not so much on the field, but off the field with the crowds and attention. in fact, it changed the whole thing. from oh yeah soccer? two i'm going to go see that game. katty: whether you call it soccer or football, pele was the greatest.
that brings the program to a close. you can find out more on our website. you can find us on twitter. i am @kattykaybbc. thank you for watching. we will see you tomorrow. >> make sense of international news at bbc.com/news. >> funding of this presentation is made possible by -- the freeman foundation, newman's own foundation -- giving all profits from newman's own to charity and pursuing the common good, kovler foundation -- pursuing solutions for america's neglected needs, and mufg. >> they say the oldest trees bear the sweetest fruit. at mufg, we have believed in nurturing banking relationships
captioning sponsored by newshour productions, llc >> ifill: grounded flights, a stock market halted. it was a bad day for computer glitches, travelers and investors across the country. good evening. i'm gwen ifill. >> woodruff: and i'm judy woodruff. also ahead this wednesday: debating the limits of privacy-- disputes over government power to access encrypted data. >> ifill: plus, protecting pristine waters of the great lakes. growing safety concerns over aging pipelines at risk of rupture. >> oil is very hard to clean up so i guess i'm worried that a leak would be close to an