tv BBC World News PBS May 17, 2012 6:00pm-6:30pm PDT
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>> welcome to newsday on the bbc. i am in singapore. >> i am in london. our headlines. facebook is set for one of the biggest flotations in history. we have a special report from china and the allegations of torture against the family of a leading activist. >> limited democratic reforms, the arms embargo remains in place. ♪ >> the queen of disco. donna summers dies, at age 63. it is 9:00 a.m. here in singapore. broadcasting to viewers around the world, this is newsday.
>> hello and welcome. trading is expected to be fierce when shares in facebook go on sale in new york in a little over 12 hours. they're being offered at $38 apiece, making the company worth more than $100 billion. all of this despite the fact that nobody knows if facebook can generate a profit. we have more. >> it started as the facebook in 2004. the brainchild of mark zuckerberg has grown and changed year by year into one of the most powerful businesses of the internet age. it now has 9 million active users who upload 3 9 million photos every day. -- 900 million active users who upload 300 million fetas every day. >> we are all here because of the people using facebook.
>> this video has been shown to potential investors. it appears to have done its job. the price has been raised. >> it was almost driven entirely by facebook. >> this man runs the world's biggest advertising business. facebook will be valued at six times the price he sold his company. >> there are a lot of questions. people are looking at the growth of e-commerce, internet, and digital advertising, and coming to the conclusion that the future profitability will be set to justify the $100 billion valuation. >> if facebook is to justify its price, the users are going to be vital. the business depends on them sharing more and more
information. even the company admits, this will be a challenge. as more and more people use their phones to access facebook, it is hard to display adverts on a small screen. >> they tried to sell me stuff on my phone. it is annoying. >> it is targeted to you. they know about your information. >> it is absolutely fine. >> the decision by general motors to pull its advertising adds to th ande uncertainty. -- of the uncertainty. >> we are telling our investors to hold off. there is a big red flag. we want to understand the business before we tell people to invest. >> with small investors keen to get in, the shares could store -- soar. then comes the hard part.
bbc news. >> to get more on this, we can speak to a research director with a technology research company in oakland in california. i understand your company is not qualified to discuss the evaluation. just explain to us where you see the future? >> facebook has had a great run. they have almost 1 billion members. many are active on mobile phones. we see it as a great opportunity. i think the question is, how they going to figure out had to monetize the uses and help them grow socially? >> they need to use the user is to generate money. there is a lot at stake. >> there is. there are all of these issues with privacy and what happens to your data. the you have control over it? are they selling it?
there are different cultures. facebook has to balance the exchange in value between giving up personal data and providing good service. >> is there a question mark over whether it will antagonize its uses, make them leave facebook? >> this is the threat for a lot of technology ventures. there is a lot of competition. facebook is a great way to connect. there are a lot of of the things that people do with their devices. facebook has to look at becoming a bigger consumer platform and engaging with their audience across many different things. >> people enjoy using facebook. people actively give up so much information. is there a suggestion is manipulating its users? >> i do not know.
people have the ability to put whatever they want. this has been around for a long time. i do not think we are in the age where people can assume everything is private. i think people have to take responsibility. facebook has a great responsibility. people accustomed mark zuckerberg to do the right thing. >> -- people are trusting mark zuckerberg to do the right thing. >> the un secretary general says he believes al qaeda was responsible for two suicide car bombs in the libya capital. they with the deadliest in damascus since the uprising began in march. the war crimes trial of the former bosnian military commander has been suspended.
they alleged he orchestrated the massacre of more than 7000 men and boys. the hearing was halted to allow the defense more time to consider evidence from the prosecutors. there are fresh revelations about the family of china's blind activist. >> that is right. have giventives accounts of torture which they say they suffered at the hands of chinese authorities. the bbc has obtained the first interviews. he fled to the american embassy in beijing. the event sparked a diplomatic crisis between the u.s. and china. we have our turn a correspondent with more. >> he is the blind -- we have our china correspondent with more. >> he is the blind human-rights activist. for 15 days, he has been under
guard in a beijing hospital. how he managed to fully, alluding dozens of guards, is becoming clearer. he had to scale the walls of his house. as he did, he fell and broke his foot. he hid in a pigsty. then, he felt his way to the river. he could not swim across. the guards were asleep. villages found him at 5:00 in the morning. they hit him. he was driven to a town where he met activists who took him to beijing. this is the first interview with his brother. when the guards discovered chen had escaped, he was interrogated. >> they set me in a chair and bound my feet. they put my arms behind my back. they yanked my hands of boards.
they slapped my face and stamped my faeet. >> by that time, chen was safely here. the bosses were furious. >> i resisted for a long time. in that end, i cannot hold out. i did not want to name those who helped my brother, i had to. >> officials also attacked their son who tried to defend himself. >> so many people were beating him. his face was bleeding, and his legs. his trousers were torn. he said, i need to escape. >> his son was arrested and charged with attempted murder. his wife, and two children remain confined. he said he still cannot walk. they have been allowed to
acquire passports to go to america. if they are approved, he could be on his way to new york in a fortnight. the issue could be defused. he would have to leave behind relatives at risk of further retribution. bbc news, beijing. >> 16 spanish banks have been downgraded by moody's. growing fears over the countries debt. earlier, shares fell sharply. significant sums were being withdrawn in spain and greece. we report on where the crisis is heading. >> there are uncomfortable signs of a return to a banking crisis. yes today, there were growing fears about the health of greek banks. -- yesterday, there were growing fears about the health of greek banks. today, the fragility of spanish
banks. especially the savings banks, they worried investors. >> spain has a very serious problem. they had a big housing boom and now prices are still falling. the banks are loaded with bad debt. >> the fourth biggest bank fell almost 30% on reports that depositors were pulling their money out. the european commission tried to calm the fears. >> despite all of the difficulties, we are not complacent, we are on the right track. i bring you a message of confidence. >> both spanish banks and the spanish government are finding it more expensive to borrow. there are fears over big debt. the leading ratings agency downgraded spanish banks. it is likely to push up interest costs. it is only a few months since
the whole eurozone banking system was on the brink of catastrophe. >> the conditions were very dangerous. european bonds were facing significant difficulties. we were very close to a collapse in the system in the euro area. it would have led to a collapse in the economy into a deflationary. this is something the ecb would not accept. >> british banks would be at risk because of their loans to eurozone banks, businesses, and people. the bank of england has developed a contingency plan to protect british banks. >> the british banks are very international. the british banking system is a very large portion of our economy. if the guarantees of the government has given were
called, we are the most indebted country in the world. >> however much we may congratulate ourselves, we cannot protect ourselves completely were the worst to happen over there. >> you are lucky newsday on the bbc. still to come, a distant world. the changing face of britain. >> the olympic flame is on its way to the u.k. following the handover in athens. a quick look at what is making front-page news around the world. there are denials there has been a run on deposits. they assured customers things are safe. is thek's fat loot headline. the initial share offering is
just hours away. the advertising industry is skeptical of the $100 billion valuation. the trading losses sustained by jpmorgan chase have surged. they are estimated at $3 billion rather than the initial $2b illion. iran is aiding syrian efforts. saudi arabia has banned all government and private agencies from using the western georgian calendar. the times pays tribute to the queen of disco, donna summer, who died at age 63. >> this is newsday on the bbc. >> headlines. facebook has set the price of its latest offering.
a value of $100 billion on the company. >> relatives of chen have given accounts of the torture they claim they suffered at the hands of chinese authorities. the u.s. has eased some restrictions on investment in the burma because of the political reform process. hillary clinton says american sanctions were only being suspended, not completely lifted, to ensure the momentum on reform was maintained. >> we are doing what others have done. we are suspending sanctions. we believe that is the appropriate step for us to take today. we will be keeping relevant laws on the books. as an insurance policy, our goal and our commitment is to
move as rapidly as we can to expand business and investment opportunities. >> japan and australia have signed an agreement to share intelligence in the region. the deal comes as china's influence grows. until now, japan had only cheered information on security with the u.s., nato, and france. hong we have a doctor from the asia research center at the murdoch university. how much is this an attempt to contain china? >> all involved are denying it. this is not the first agreement. there have been several other agreements. the united states has increased its involvement in the region. having said that, it is pretty clear, this is an attempt to
contain china's military buildup. >> what does this say about australia's ties with north asia? >> this is an interesting question. china is australia's major trading partner. it is also china's major trading partner. the austin economy has changed -- australian economy has changed dramatically. it is very much in here. it is involved in massive changes in the economy and strength of society, shifting of wealth to the west and the north, the rise of the mining economy, and domestic debates about the direction of economic growth and to is to benefit from it. >> as you say, china is australia's biggest trading
partner, could australia look to signed similar pacts with china? >> australia is part of the u.s. system of treaties. so is japan and south korea. australia has been an ally of the net is states for 60 years. -- of the united states for 60 years. these other countries are developing a cooperation. china is not part of that system. the government appears to be somewhat confused. it is in a dilemma. it has to make a choice between its political and economic relations. >> we will leave it there. from murdoch university, thank you. the acclaim has begun its journey to the u.k. -- the olympic flame has begun its tierney to the u.k. -- journey to the u.k.
>> the olympic flame better get used to this. the porch was given a damp sand of in athens. -- damp send off in athens. they insist it will not dampen the impact of the arrival in the u.k. >> the handing over of the olympic flame to her highness. >> this is an amazing moment. it is planned to detonate with the great pyrotechnics of the opening ceremony. >> as the president of the ceremony, the princess has been a central figure. >> i presume you would have loved to have competed in a home olympics. >> i would have found it difficult. much easier to have done it when i did it. it has gotten worse.
>> because of the pressure? >> yes, to everybody. once upon a time, it would have been to one or two of the athletes. >> with the flame in british hands, tomorrow it starts its journey back to the u.k. could this be the moment when the games really take off? >> more than 1000 vessels are to take part in the biggest flotilla this assembled on the tamhames. we report on the northwest of england. >> it has been two days in which the people have come up in the tens of thousands to show their loyalty to the crown. on the current watch, the monarchy has rarely fallen below 70%. pollsters describe it as one of
the most stable they have ever encountered. in austerity britain, where institutional resentment is the norm, inherited power and privilege would have become an accepted -- this week, the flags are out in force. just as they were when the queen last came here. it was 1955. people were wondering why austerity britain continued to embrace the royal family. it represented continuity. among the crowds that day was ray clark back 57 years later. >> 1000 years of a market. there is nothing to equal it anywhere in the world. we have got it. [laughter] >> it is a no-nonsense place.
the excitement has been palpable. >> you have to do your best. >> with belts being tightened. as global power moves from west to east, the british defined witnessed by more than wells. >> -- defines wealth by more than -- >> it is a big thing for us. >> the monica may not make sense to many, from generation to generation, it is invested with a mystical significance. the british love to celebrate their eccentricity. not everything has to be logical or rational. you would not invent the marquee
at now. there is something about its irrationality that plays to us. the british rarely pass up an opportunity for wearing daft hats. there is a slice of britain. the marquis is a survival of a bygone age. -- the monarchy is a survival of a bygone age. it may not make sense, but it does. bbc news. >> tributes have been paid to the singer donna summer who died at 63. we look back at her musical legacy. ♪it's so good >> that sound, donna summer voice, this was in 1977, the
sound of the future. ♪ ♪ >> she started off the finding an era. -- defining an era. she elevated disco. now, it is the daddy of today's modern dance music. she was so influential. >> donna summer had learned to sing in a gospel choir. they did not feature this. ♪i love to love you baby >> she had met a musical director in germany with a sound that she later regretted. ♪ >> i was tired of the whole sex image. it was not me. it was a role. it was not who i was as a person. i've always resented it. >> in the 1980's she found god
and lost many of her fans, especially many of reggae fans. -- her gay fans. another european record producer with a passion for dance music wanted to work with her. >> she was disco. i would not be standing here talking about music if it was not for a girl who sang like that. it made me want to make pop records. >> 29 top-40 hits. the song that changed the world dance floors. the queen ofgeorge zimm, disco. >> remembering donna summer. from singapore and london, thank you for watching newsday.
>> 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. and union bank. >> 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.