tv BBC World News PBS October 13, 2011 6:00pm-6:30pm PDT
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>> and now, "bbc world news." >> welcome to "newsday" on the bbc. >> the headlines. billionaire raj rajaratnam is sentenced to 11 years in prison for insider dealing. a new plan to shore european banks, but will it be enough? >> kidnapped at gunpoint, at two workers taken from a canyon refugee camp. >> 33 billion miners' give thanks for their survival. -- 33 chilean miners give thanks for their survival. >> welcome to our viewers on pbs in america and around the world, this is "newsday."
he was once a high-flying finance here, now the fund manager raj rajaratnam has been sentenced to 11 years in prison for his role in one of the biggest insider-trading cases in american history. prosecutors had pushed for 25 years. the judge issued a clear warning if anyone was tempted to follow the same path. we have this report from new york. >> it is hard to believe that raj rajaratnam was little known outside of the world of wall street hedge funds. that is before he became the poster board for what the judge describes as crimes the need to be eradicated. raj rajaratnam said very little as he was read his fate.
down the road on wall street, they have been watching closely. he was accused of making more than $50 million on an inciting trading ring, buying and selling shares of 19 companies based on confidential information. his lawyer says this is a wake- up call for the financial industry. >> the government is watching, they're watching very closely and insider trading is breaking the rules and the government will be there looking for people that break the rules. >> the founder of the galleon was heard in court. they used to secretly recorded conversations to get a convention. now the wiretaps are the subject of his appeal. >> this is an unprecedented
case for this type of crime. they are usually used for white -- for blue-collar crime. the defense will appeal whether this was permissible. >> the district judge denied a request that he stay free pending his appeal. the judge did show leniency by not handing out a longer sentence. from a life of privilege to prison inmate, as the mastermind behind the biggest insider- trading ring in a generation, raj rajaratnam is paying the price. the judge hopes it will deter others from following in his footsteps. >> more bad news for the eurozone. spain's credit rating has been downgraded. standard and poor's cited high unemployment and large numbers of public sector debt. there are details of a 200
billion euro plan to rescue the weak banks. this will be put before eu leaders and the g-20 in the coming weeks. our business editor reports. >> the eurozone on red alert. even in paris, where big investors have become nervous about lending. the fear is that many of europe's biggest banks don't have the reserves or the capital to absorber losses in highly indebted countries like greece if they don't keep up the payments. the european top regulator is asking that banks keep capital from 9%-10% of their lending. taking account for a fall in markets, loans to highly indebted countries like greece, italy, spain, portugal, and ireland. that should give the banks and
of capital to absorb losses in the event that they cannot pay back what they owe. it would mean that banks across the eurozone will probably have to raise 200 billion euros from investors and from taxpayers. about time, says a former chancellor, who funneled lots of british pounds in two u.k. banks. >> we recapitalize them and now they are in a stronger position than some of their counterparts. we did was necessary and we did it decisively. that is what europe should have done long before now. >> banks are resisting the plan to force them to build their reserves and there is a warning that raising capital, they might hit the targets by lending less. >> the preference for banks
right now is not to go raise capital. doing this is expensive. we should have earnings in the real economy. >> slovakia became the last country to sanction more resources for a bailout fund which is not seen as having enough firepower to reassure creditors. the wait before the european summit will be nerve wracking. they will need additional money from taxpayers. the eurozone is in turmoil. >> the credit rating agency fitch has downgraded the swiss bank ubs. the agency has put 12 other major banks in a negative ratings watch. this included credit suisse,
deutsche bank, and morgan stanley. they are worried about how the fangs are dealing with the worsening crisis and how much the banks would do to support them. -- they word about how the banks are dealing with the crisis. there has been another violent kidnapping in kenya. >> two doctors were abducted near the border with somalia. the driver was shot and wounded. this is the second incident like this in just over a month. >> the vulnerability workers face in the most challenging humanitarian emergencies. they are fact sitting children in this sprawling complex. it was a vehicle that was seized by armed men today. the driver were shot, the two international staff are missing.
in 1991, refugees began to flee violence. it is the continued violence that has turned this into the largest refugee camp. if the border 100 kilometers is the notoriously porous, so is this area. it will be near impossible to have infiltration. they have said that it has been deteriorating. this is a particularly critical time for the efforts to contain the famine on the border. the abductions are considered to have been done by extremists. if that turns out to be correct, it will be deeply warring for the aid community dealing with the crisis which one official said that the human need remains immense.
>> china and india are set to replace their latest inflation figures on friday. -- released their latest inflation figures on friday. across asia, the imf has said that inflation has increased in hong kong, indonesia, malaysia, and thailand. we have been getting a feel how high food prices are affecting ordinary people in beijing and mumbai. >> this is in beijing. inflation has been more than 6%. the people are really feeling the pinch. that is because food prices have gone up by almost 10%. if there is one item that is responsible for inflation here, it is time to consume half of
the meets here. in the last 12 months, they cannot have more than half. >> the prices have all gone up. how are you going to do that? i will have to make more money. >> we are at a time when festivals' should be cheaper but they are more expensive. >> authorities have said that curbing inflation is one of their top parties and with millions of households spending more than half of the income on food, inflation is becoming an issue here. >> the cost of food has been a big concern right across india for a year and a half but this is affected many millions of indians.
fruits, vegetables of all kind have gone up substantially in price. tell me, how has your shopping experience changed? >> it has changed quite a bit. this year, they are short 40-50 rupees. >> to help people like her and many millions across the country, the reserve bank of india has been lifting interest rates. it seems that it's still might be some time before people who are coming back to the market is enjoying the experience. >> you are watching newsday live from singapore. the fight to save the beaches and wildlife following an oil spill.
>> why hilary swank has apologized for attending a birthday celebrations for chechnya's president. prosecutors in france have dropped their investigation into an allegation of attempted rape by the former head of the imf, dominique strauss-kahn. the french writer accused him of trying to rape her 8 years ago. >> tristane banon told a disturbing story how she'd arrange the interview with dominique strauss-kahn and had to fight off an attempt to rape her. she filed a report in july. now the french prosecutors have decided to drop the case because the charge of sexual assault, which is all the could substantiate, has a three-year
statute of limitations. tristane banon's says the decision was not entirely disappointing. -- lawyer says the decision is not entirely disappointing. >> we remember it quite well. the prosecution confesses that dumb and trust, is a sexual predator. >> many people side with the journalist against the former presidential hopeful. -- the prosecution confesses that dominique strauss khan is a sexual predator. >> he is someone who is very protected. >> i guess it is because of the results of the face-to-face meeting and because of the evidence that was submitted to the investigators that she still loves the possibility of launching a civil action to keep a complete going. >> dominique strauss con who returned to france last week,
the news will be welcome. he is keeping a very low profile. >> you are watching "newsday" on the bbc. >> these are the headlines. raj rajaratnam has been sentenced to 11 years in prison for insider dealing. the bbc has obtained details of a new plan designed to shore up the weakest banks in europe. >> salvage experts are trying to determine if they can remove the remaining oil on a cargo ship that sunk after striking a reef off the coast of new zealand. this shows a large crack in the
hall. >> i am presently about 25 commerce se and i am at the mouth of the estuary which is one of the most sensitive parts of the coast. i'm sorry to say that the oil has gone as far south as here and we have beach crews busily taking it off. >> you said that this is potentially a him -- huge crime scene. how bad is this for wildlife? >> well, we have recovered on the order of 500 and birds. there are thousands along the coast near the petrels and waters. this is an excellent paradise out here. the biggest risk lies with the
birds. they're only about 30 and a very important colony. the risk if we lost these colonies is very significant. the department of conservation is preemptively capturing a dozen of these. >> many are criticizing the government for perhaps not acting quickly enough. is this warranted? >> i have not been involved with the sow the operation so i cannot comment on that. i have been closely involved in this recovery. yesterday, i was part of a small team. within minutes, they were collected and off to a facility for them to be rehabilitated. >> president obama and south
korea's president have had more talks after the u.s. congress except at a trade deal. this would increase exports by $11 billion. we go live to seoul. they are embarking on a road trip. this is fairly unprecedented. >> this has really been a big public honor for the president of south korea. he has been asked to address congress. now, they are going on a road trip together to detroit. this is apt or ironic. this was a major sticking point. american carmakers and korean
car makers really want very different things from that deal. the compromises reached back in december which really moved the whole process forward. now that this has been passed by congress, they are hammering home the message about the kind of things that both presidents hope next they would do for their country. >> the trade deal was very controversial. many said it would not create any jobs. how was this impact in south korea? >> well, it has been passed by congress. the lawmakers say they will fight against this in the korean parliament. they are worried about guarantees for farmers, the banking sector. the ruling party is much more
keen to get it passed quickly, especially now that the u.s. congress has passed it. he says he would like it passed by the end of this month. he also has the mayoral elections to contend with, this is the precursor to the national elections. that could get in the way of pushing through something controversial like this. >> we will leave it there. the arabs spring has come with a price tag. >> new research puts the economic cost of the turmoil in the arab world this year at more than $50 billion. libya, syria, and egypt will pay the highest price. our world affairs correspondent has more. >> after months of conflict,
libya is suffering the most in the short term. the disruption of the oil and gas sector has devastated the economy. colonel gaddafi is still at large and the country's fate is said to hang in the balance. accurate costing is impossible but from the data available, the estimated cost is reckoned to be more than $40 billion. for syria, it is in excess of $27 billion. the cost to gdp of public financing in each of total nearly $10 billion. the region as a whole is benefiting economically from the arabs spring. saudi arabia and some gulf states have seen significant increases in revenues. oil-rich countries that have suppressed or avoided a uprisings are set to gain the most.
nonetheless, this report says that the arab world has been thrown into the greatest turbulence since the 1950's. the outcome of the of presence could be regressive. >> chile is marking the first anniversary of the spectacular rescue of 33 miners who were freed. a billion people around the world watched pictures of the operation in which the men were brought to safety. a year on, many are still suffering and many are unemployed. >> one year on and a chance to reflect on their extraordinary escape from death. the mood here was a
celebratory, a stark contrast from last year due to this will be the foundation stone of a giant monument, a lasting tribute to. it was here that role to spend more than two months waiting for the men to be rescued. for the first 70 days, they were not even sure if the miners would survive. then this extraordinary moment, a message confirming that all 33 were alive. a camera was dropped down to them. this was the first image that it captured. now, iconic image is that in thrall the world. one man famously had a wife and girlfriend waiting for him. a year on, he celebrated the anniversary with his family last
year marking the beginning, a second life. >> i have had to have a lot of medical checkups. i have suffered a lot of mood swings when i remember what happened to to us. it has been really difficult. >> when the miners came out, they were greeted as heroes but many suffer from trauma. about half are unemployed. with every brought together by what happened here a year ago? >> the oscar-winning american actress hillary swank says she is now deeply regretful for attending a birthday celebration for the chechen leader. he's been accused of torture and other human rights violations. >> it was a glittering affair.
these were the celebrations last week. they just happen to coincide with the 35th part day of this man, the politician who seems to love a party. he is the leader often accused of turning this area into his own personal fiefdom. along with him on the stage, a sprinkling of international stars. >> also the two-time oscar winner, hilary swank. >> this is the first time, i love to travel, i love to see the world, i love to see different cultures. this is a great honor to learn more about you and your country and what your building. >> he faces accusations of human rights abuses. rights groups have criticized the celebrities who went to the party. now in a statement, hilary
swank says that she regretted going to the event. he's a controversial figure. he's turned it russian ally. the kremlin relies on him to keep control. despite the makeover, questions remain. this is one indication that mrs. swank wishes she would have turned down. >> this is "newsday" from the bbc. >> a court in united states has sentenced a fine answer to 11 ier foror -- of finance insider trading. that is all for us from london
and singapore. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and shell. >> this is kim - about to feel one of his favorite sensations. moreell, we're developing 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.