tv BBC World News PBS October 26, 2011 6:00pm-6:30pm PDT
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the eurozone continues their talk in brussels to try to find a solution to the debt crisis. the stakes are high. if a single currency fails, then europe would be in jeopardy. >> more survivors pulled from the rubble in turkey. hopes are fading for hundreds who are still missing. and the wife of bernie madoff reveals that the couple had tried to commit suicide. it is 9:00 in singapore. >> is 2:00 in london. broadcasting to viewers on pbs in america and around the world, this is newsday. eu leaders are continuing their meeting in brussels to try to thrash out a deal to solve the eurozone crisis.
sources say an agreement had been reached on forcing european banks to raise more capital. other elements of the package are still being debated. as our senior editor explains, hopes are fading that a comprehensive deal can be reached this time. >> 14 times in the past 18 months, europe's leaders have pledged to fix eurozone prices in. never has the pressure been bigger than today. >> we have to make decisions to end the uncertainty, and the crisis, turn the page, and make sure we make a big step forward for the better future and prosperity, security of the people in europe. >> much of the focus was on whether the french and german leaders would settle their differences. the difficult talks lay ahead. >> we are going to have to work very hard. there is a lot of good will.
>> after an initial meeting involving all 27 eu leaders, some progress was announced. europe's banks would be strengthens with fresh capital but without saying by how much. >> good progress tonight pri is in britain's interest that we sort out these problems. the bank recapitalization was not water down. it has been agreed to. >> the leaders of the country's inside the eurozone turn their attention to a much trickier issue, like how to reduce the greek debt and how to increase firepower of the bailout fund. an issue that has proved controversial in germany. before today's summit, the german parliament met. the chancellor said that the world was watching germany and europe. >> the world is watching whether we are ready or able. europe has been in serious
crisis since the end of world war two to take responsibility. >> the parliament voted to boost the european debt of fund, a key factor for the negotiations in brussels. these are the remaining challenges -- 2/greek debt by encouraging banks to take big losses by around 50%. nicolas sarkozy and angela merkel say they are ready to negotiate in person with world bankers. secondly, to increase the fire power of the use's main bailout fund by over one trillion euros. also the center of attention -- the italian prime minister. he had been told to come with a letter setting out radical economic reforms. he brought a document. the big question is whether his plan was convincing. back in rome, there was a scuffle in parliament over his plans to raise the retirement age. the eurozone crisis is exacerbating italy's political
turmoil. what the markets will be watching over night is not so much political statements but details, hard numbers that indicate that this time, a deal is more likely. >> if a deal is not reached, some analysts say could spell the end of the european currency. others say is too big to fail. and a deal much be -- a deal must be reached at any cost. what are the hurdles they are trying to overcome? stephanie takes a look. >> last month, the world give european leaders a challenge -- save the euro in six weeks. we are into week five. there is still plenty of gaps in the plan. we have that agreement to inject capital into european banks and it will probably be around 100 billion euros. the one-half of the value of the greek government debt held by investors. they want to give the rescue fund more part -- more
firepower without putting in any new money. we do not know exactly how they're going to do any of that. officials are suggesting tonight that we may not be a lot wiser when we read the statements this evening. for many, that just will not wash. >> three years ago, we were dealing with a simple banking crisis. today, the situation is much more serious and complex. you are dealing with whole countries. whole economies. it is urgent. that is why the leaders cannot be allowed to leave brussels until they come up with something convincing. >> so says the man who went to plenty of summits when markets were not floating in 2008. he does not need to persuade 16 other countries to sign up for his rescue plan. these very different people and different economies are being told to come together as one or the euro will fall apart. that is the advice of the billionaire investor george
soros when he was interviewed earlier last month. what's everybody recognizes that this situation is not sustainable. you're going to go forward or backward, but you cannot stay here. >> you are a famously shrewd investor. i was listening to what you're saying and wondering about making an investment. i would think it is time to sell the euro or certainly not investing in it because it is pretty bad. >> i am convinced it is here to stay. it just cannot be tolerated. the authorities will do whatever it takes to keep the euro in existence. and you have the rest of the world, china and so on, all want the euro to stay. this is not a time to speculate against the euro. >> so far, financial markets are giving the european leaders the benefit of the doubt. the stock market went up in
america on the statement about putting capital into european banks. as we get more detailed in the coming days and weeks, some economists still question whether all of this austerity in countries like italy is politically feasible or consistent with decent economic growth. >> economic growth is the key. the stronger the economic growth, the debt problems will persist and banking problems will persist. without economic growth, we will continue to have a debt problem, a banking problem, and and the unemployment problem. >> david cameron is right. britain has a massive stake in all of this. deepening the crisis could blow our own fragile recovery of course. if a deal to save the euro does not support growth in countries like italy or spain, that could hurt our recovery as well. european leaders could be facing a lot more make or break summits. >> we will bring you up-to-date
on that story as it progresses. turkey is struggling to cope with sunday's powerful earthquake in which more than 470 people died. the country's prime minister acknowledged there would be failures in the distribution supplies during the first 24 hours after the quake. thousands are facing freezing temperatures. >> hopes are fading in turkey. the rescue teams continued to sift through the rubble, searching for survivors. it has turned to recovering bodies. it is torturous for the waiting families who are holding on to the probability that their loved ones are alive under the ruins of the city several days after the massive earthquake. there has been moments which have been cause for hope. earlier, a 27-year-old teacher was pulled from the concrete. seriously injured but alive.
as the hours passed, more survivors are unlikely. there has been criticism of the emergency response. with thousands made homeless and many frightened to return to their damaged buildings, the pressure on the red crescent and other aid agencies is immense. the night is cold and more blankets and food are urgently needed. >> we are ok right now. we cannot live in these tents or more than 15 days. we hope our conditions will get better and we can get through the winter. >> we are miserable. we have kids and the condition will worsen when it begins to snow. everybody will get sick. >> and the country's prime minister has admitted failing the committee effort, particularly in the distribution tents. the turkish government has accepted its need for international assistance to deal
with the disaster. mainly for accommodations for the homeless, rather than the search for the missing. the rescue teams will continue to work through the night until all chance of finding anyone else alive is gone. the hope is becoming increasingly long. >> severe flooding has devastated part of northern italy. >> at least five people have died and eight more are missing. buildings and roads have been damaged in a huge operation is underway. the most badly affected areas are tuscany. the force of the flood is plain. surging waters have left a trail of wreckage across this part of northern italy. holmes smashed, cars and destroyed, towns filled with mud. from the air, the extent of the
damage is obvious. riverbanks washed away, and valleys choked with debris, roads and bridges on usable. not even basic services are functioning. >> the biggest trouble is we have no water. there is nothing we can do. all of the houses are flooded with mud. >> almost 90 millimeters of rain, over 3 inches, fell in a few hours on tuesday, affecting most of italy. along the coast, valleys created huge torrance which pummeled their way through some of the most beautiful estates in the country. some villages remained cut off by landslides, hampering rescue efforts. with several people still missing, the italian military has been drafted in to help. the task facing clear up teams is enormous and grim.
>> in other news, the brazil sports minister, orlando silva, has resigned after being accused of corruption. he was in charge of operations for the 2014 world cup. he is the fed to resign over corruption allegations since the president took over in january. he took several million dollars from a fund to promote sport for poor children. a former argentine naval officer known as the blonde angel of death has been given a life sentence for torture and murder during military rule in argentina. alfredo astiz killed human rights activists and french nuns. you are watching news day on the bbc live from singapore and london. still to come, extraordinary revelations from the whites of bernie madoff. she and her husband tried to
kill themselves. >> dark clouds ahead for the fisherman of chesapeake bay. a special report on a way of life that is under threat. >> queen elizabeth has landed in western australia at of the summit for leaders there to officially open the meeting on friday as to attend a tour of australia comes to an end. on wednesday, hundreds of people lined the streets of mel bourne to welcome the queen. >> even after nearly 60 years, it was a day to savor. in the center of mel bourne, the queen came across an endless line of people wanting to meet her. so many flowers that the british detectives had to lend a hand to gather them. one little girl had to make sure she did not misspell the queen.
they went to a hospital where the nurses war i-catching pink. -- wore eye-catching pink. he was not quite sure whether she wanted to give the queen her posey of flowers. these former conjoined twins, who were separated two years ago, are now doing well. then it was onto a ride on one of mel bourne signature vehicles, a tram. a good crowd, a warm welcome, a successful visit. the character will change on friday when the queen steps into her role as head of the commonwealth to open the commonwealth heads of government conference. the serious stuff will follow. today, for all the time she has done this, the queen was touched by the warmth of australia's welcome.
>> you can get more on all of our stores by going to our website. backrub and analysis plus video and audio content. just log on and see for yourself. >> this is newsday on the bbc. i am in singapore. >> and i am in london. the headlines. leaders of european countries are continuing their meeting in brussels. growing doubts that they can reach a comprehensive deal to fix the debt crisis. >> rescue workers in turkey are continuing to search for survivors in the earthquake. two more people have been pulled from the rubble. let's take a look at the asian market action. the ongoing action of eu leaders in brussels. markets moving higher as they struggle to come up with
concrete solutions for the debt crisis. plans to boost the power of the region's bailout fund was short in detail. wall street gains giving them a positive boost so far. japan down by about six. at this hour. south korea gaining about eight points. despite this, it was enough to boost u.s. stocks. the dow was up and the nasdaq was up. reports of the eurozone bailout fund will be significantly expanded. oil prices are falling after concerns about inventories at caution about europe's ability to agree with a plan to address the debt crisis and. for more reaction on the ongoing meeting, i am joined live from our city studio by the global head of economics at quarry security. thank you for joining us. are the leaders getting any closer to finding a resolution
to this debt crisis? >> i think they are getting closer. i think there are two outstanding issues -- the recapitalization plan and the extent of the write-down on the greek debt. that is where we see the french and german policymakers at odds at this point in time. if that is resolved, i think we will see the emergence of a much more comprehensive plan. >> what do investors and markets want to hear from the eurozone leaders in terms of addressing the greek debt crisis? how big the bailout fund will be? in the recapitalization of the region's banks? >> it is somewhat of a rerun as to what we saw in the united states. a compulsory recapitalization program. everyone is protected so there are no weaklings. a focus on the systemic risks
that we're dealing with here. this is much more an issue of solvency or insolvency then was the case in 2008 when we were dealing with liquidity. the size of the stabilization fund is not as important at this point in time as a more fundamental policy for recapitalization and stabilization of these financial institutions. that is important if we are to avoid contagion. >> what about china? how important a component are they in helping eurozone leaders and the eurozone bailout fund? >> there are a very important component. chinese policymakers want in on this. for a couple of reasons -- to avoid the risk of global contagion, which could follow from an unwieldy and default in the area. the second reason they want in is to try to broker some
progress on trade liberalization they have already mentioned that, as a possible cost of their assistants. it would be an opportunity for chinese interests to take some very handsome prices -- handsomely priced assets in the region. >> richard gibbs, global head of economics at the core security. thank you so much for your insight. the wife of bernie madoff has revealed that she and her husband and together committed -- attempted to commit suicide as their crimes became public. madoff made the admission of interfirst broadcast interview. in 2009, bernard madoff was sentenced to 150 years in prison for masterminding a scheme that brought investors of an estimated $65 billion. reporting from washington.
>> he masterminded the biggest investment fraud in history to. pawning charities, stars, and big banks, some of them british. when bernard madoff was exposed and arrested in 2008, he saw to end his own life. that is the claim of his wife, ruth madoff. her and her husband attempted to commit suicide together on christmas eve by taking sleeping pills. >> i do not know whose idea it was. but we decided to kill ourselves. it was so horrendous what was happening. we had terrible phone calls, hate mail. beyond anything. i said, i just cannot go on anymore. >> she said that before swallowing the pills, the couple had sent a last package to their son containing jewelry and other sentimental items. >> it was not until three years
later that i had a chance to ask her, what were you thinking when you send me that jewelry. i do not understand. she told me that she and my father planned to kill themselves. they put together the package. and they send it out. >> the attempted suicide failed. this -- the couple simply woke up the following morning, much to her relief. bernard madoff would spend the rest of his life in jail for crimes that the trial judge described as extraordinarily evil. he used the money of new investors to pay existing clients when he claimed were profits. the couple enjoyed a lavish lifestyle of luxury yachts and mobile homes. assets which had been seized. investigators tried to recover the stolen billions. ruth madoff was not charged with a crime. she told investigators she had only learned it was a matter of fraud shortly before her husband's arrest.
>> a traditional way of life is at risk. we have more details. >> tangier island in the chesapeake bay, just a few hours from washington d.c., is home to a thriving fishing community. that way of life is under threat due to fishing restrictions and erosion. how the residents are coping. ♪ >> my name is james. i am the mayor of tangier island, also a commercial watermen. at times, it was really busy out here. now it is about 50 percent operational. the population right now is
around 500. i remember when it was close to 1000. maybe in 1500 or more. we are losing a lot of ground to erosion. the shoreline is receding. it is causing problems. >> the land your protest the harbor. it is eroding away. it is starting to cut through here, the waves are rolling into the harbor and damaging the boats. you are your own boss. you come and go where you want. you do not answer to anyone. you pretty much call the shots. it is a great way of life.
principle of the school. -- >> i am the principal of the school. a lot of the boys are home for two weeks and away for two weeks, those who choose to go to college realize that will probably be gone forever because there is not that much opportunities here on tangier island to. >> my dad wants me to help him while i can because there is going to be no future in the water after i come back. i'm going to miss it. this is my home and where i grew up. i love it here. >> it can be very discouraging. people get discouraged. we are in a heap of trouble with the erosion problem. it is really our way of life and our existence.
>> you have been watching news there from the bbc. i am in singapore. >> and i am in london. a reminder of our main news this hour. leaders of the eurozone countries are continuing their meeting in brussels. growing doubts that they can reach a comprehensive deal to fix the debt crisis. more details on bbc.com/newsday. that is all for us. thank you for watching bbc news.
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