tv BBC World News WHUT June 28, 2012 7:00am-7:30am EDT
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what can we do for you? >> and now, "bbc world news." >> barclays, the spotlight has shifted to other banks with scandal in the interest rate markets. there's a call for barclays' because bob diamond to to resign. the share price takes a battering. -- barclays's boss bob diamond t, calls for him to resign. welcome, i am george alagiah. european union leaders still
divided as they tried to crack the euro zone crisis, meeting at a summit. a massive police presence in china after protests by migrant workers in one province. >> it is near certain that riot police would stop us if they could see us filming. >> 7:00 in the evening in beijing. midday in london. barclays bosses facing calls for their resignation after they tried to rig the rates at which banks lend to each other. bob diamond and his colleagues have serious questions to answer. the share prices down 8%. the authorities are now turning their attention to other institutions such as citigroup, j.p. morgan, and deutsche bank.
i'm joined by our business correspondent jamie robinson. when was this happening? >> between 2007 > 2009. -- and 2009. we were watching watchinghow willing banks were to lend to one another. they were not willing because there was a credit crunch. libel became the indicator. -- libor became the indicator. so much of bank lending to customers for transactions and the deals was not aligned properly with libor. senior executives at barclays in
the hot seat. we don't know how far this went at other banks. >> british prime minister david cameron says that bob diamond and his colleagues have serious questions to answer. he was in charge of barclays capital. >> he is stuck in a situation where if he did not know what was going on, why did he not know? that would be an indication of poor leadership. he is dealing with an interest rate being set with the help of barclays, which determines the price at which trillions of dollars worth of deals were being done on a day-to-day basis. if he did not understand or did not know what was going on, on its trading floor and on the instruction of chief executives, perhaps he should be asked why. if he did know, perhaps he
should share some of the blame. libor going down and everybody is sitting there with poker faces a, of course. manipulating the price. that is the question that he has to answer, what he knew about those years and when. >> who knew what, when. >> thanks very much. we expect the british finance minister to make a statement on that very shortly in the house of commons and we will bring you the statement live. in brussels, european leaders are gathering to address the latest plea for action coming from spain and italy. angela merkel will be center stage as all possible crisis solutions will need german support. topping the agenda is a proposal for a monetary union whereby the
european central bank would supervise the banking of the 17- nation euro zone. many leaders support the idea of approving debt into a bailout bonds leading to euro that would drop borrowing costs for indebted countries. but angela merkel opposes this idea as germany hais not prepared for that idea. now to brussels with john. >> thank you. another day, another summit. the situation is urgent. another occasion where you feel the can will be kicked down the road. difficult decisions will not be made at this summit. we are joined by the leader of the green group in the european parliament. i want to start with what angela merkel said yesterday.
she said the lowering expectations, talking about instant solutions going to happen. >> i was shocked to learn her position. , "over my deads body," she said. germany is also responsible for the mistakes made during the management of the euro zone crisis. spain and italy at and big european union countries in crisis. we have to decide long-term measures and medium-term measures. >> we can have a european
treasury, but that is 10 years away, she says. >> a european treasury without to the euro existing, what sense does that makes? >> if you don't take urgent action now, in 10 years the euro will have disintegrated? >> if we are not able to decide measures right now which will help the italians and the spanish to fulfill their obligations, to be able to afford to their interest rates, we will fail. so this is really the signal we need from this council. behind this we need clear decisions that the europeans are together on taking responsibility for the countries in crisis. >> do you think angela merkel could sell this to the german
people? >> she has already prepared one of two or three we need to go forward with the redemption fund. she has prepared with a fiscal compaq the grounds for clear, sustainable budget strategies in the european union. but if this remains the only common tool, the fiscal compact, the and the euro will not survive -- then the euro will not survive. >> what will happen at the summit? >> beyond a decision on the need to give them a banking license, i see this as a minimum to help the countries in crisis. we need a better decision on the
growth part we have decided already. we are missing the money and we don't see that it will be sustainable. >> thanks very much for being with us. the summit is due to start in the next hour or so. people here have a huge amount of optimism. back to new. -- to you. >> let's look get some headlines. 12 people have been killed in a series of bomb attacks in and around baghdad. dozens more wounded when a car bomb exploded at a market ina shia area -- in a shia area and another in another shia area and in the town of taji. there are wildfires still in colorado springs, colorado in
the u.s. troops have been deployed to help firefighters contain the blaze and protect houses and the air force academy. australian senators voted down a bill which would have allowed asylum seekers to be processed offshore. the debate began after more asylum seekers died on wednesday when their boat sank off christmas island. another 90 people died off christmas island last week in a separate incidents. there's been a large explosion in the center of the syrian capital damascus. syrian state television reports the blast happened in the parking lot of the palace of justice. they're blaming terrorists for the bombing. jim joins us from beirut. what is the latest information? >> on state television and they showed pictures of this, saying three people were wounded in these explosions and that 20
cars were destroyed. it seems to have been more of a kind of psychological attack than a very military one in the sense that nearby buildings including the justice ministry main courthouse were not struck badly. one can see from the pictures they are showing of the car bomb fire and so on. only three people hurt. there's speculation on some arabic tv stations that explosions were caused explosions sticky bombs, explosive devices that you can stick on the underside of a vehicle and then explodes. they are used a lot in baghdad. they don't cause big casualty is. they may kill one person in the car, but usually people are wounded. there are not huge explosions. that seemed to be consistent
with the pictures on syrian state tv which show a lot of flames and smoke and cars on fire, but not the kind of huge damage that you get from really big bombs. >> thanks very much. russia is denying comments by a u.s. official that it has endorsed the syrian transition plan that includes a call for president assad to give up power in favor of a national unity government. the russian for ministers said they will not support any of external meddling in syria. for more on russia oppose position on the syrian prices i'm joined by a commentator on russian politics. thanks for being here. i have just been speaking to our correspondent in beirut. another bomb has gone off in damascus. this kind of escalating violence must make it so much more difficult for the diplomats who are meeting on saturday to find a solution. >> it depends how you see it.
these explosions were not made by the syrian government. they are made by radical elements inside syria. recent attacks against pro- government television syria. the government and the minority that bans on the government is fighting for their survival, not fighting for money, which makes the situation much more complicated. >> on saturday diplomats are looking at a transition plan put forth by the international envoy kofi annan. the key question is who would be in the transitional government. what is russia's position? >> we support the idea of a coalition government. the russian foreign ministry has been talking about the need for syrians to agree with each other and to achieve a negotiated settlement from the very. very
western countries wanted an immediate and total victory for their position. obviously, it is a step forward when mr. kofi annan says that he accept the idea over a transitional -- coalitions transitional government. >> with all due respect to mr. annan, you are saying it's great that he has accepted the idea of a transitional government, but opposition forces say that any transitional government that includes president assad is not something they can support. it seems there's very little to talk about on saturday. >> obviously, is a good idea that already we have the conference. some countries that are behind
the warring sides, including qatar our president the conference. it is a pity that iran and saudi arabia ar denied participation. at least there is a dialogue. >> we will have to wait to see it if you are right about that. thanks very much. still to come, reconciliation in rwanda. the african nation looks to a future of hope as it casts off the shadow of genocide. islamist forces linked to all, are reportedly seized a key town in northern mali. residents say islamist fighters have taken up a building occupied by tora bora rebels, including their headquarters, and raised a flag. 20 people killed.
heavy rain causing multiple landslides over the past three days and have killed more than 80 people in southeast bangladesh. exports city is badly affected and tens of thousands of people have been forced to leave their homes. now more. >> this is bangladesh's second- largest city, what you can see of it. it has become a victim of relentless monsoon rain. people cannot work. they can barely walk. umbrellas provide little shelter. bridges have collapsed. it is an alarming sight. perhaps more alarming is this -- flash floods and triggered mudslides, burying homes belonging to the poor people. rescuers facing an immense task. with bare feet and basic tools, they search for the living. more often they find bodies.
under this blanketed the body of a woman. they also found the body of a baby. people love lost so much. they are homeless, stranded. more rain is expected over the next few days, putting more lives a risk and making a desperate situation worse. bbc news reporting. >> the u.s. house for the first time in 13 years has approved a new drug to tackle obesity. it control the appetite by working on. receptors in the on -- the u.s. has approved it. people lost an average of 3 pounds. this is gmt. the headlines, a call for bob diamond of our list to quit. other banks are being investigated for allegedly
trying to fix interest rates. european union leaders prepared to meet for a summit on the fate of the euro with heads of state divided about the best path forward. riot police are guarding government buildings in a town in southern china after rioting by migrant workers. 30 people were injured in the troubled in a manufacturing town in guangdong province. >> it is a force of numbers that has brought order back. hundreds of police forces calling a simmering tense town with a large population of migrant workers -- quelling the town. allegations of police brutality. 100 people may have been injured
in the trouble. this is one example of the dozens of daily cases of civil unrest and protests that china does not want the world to see. journalists are rarely allowed access. internet search terms are blocked. t people are. oo nervous to speak out -- people are often too nervous to speak out. this man says he is not sure what happened. many people are staying inside for fear of violence. almost every shop has closed for business all day it. we are having to stick to the back streets, only filming the riot police from a distance. if it is near certain that they would stop us if they could see us. cheap migrant labor has fuelled shine oppose the economic boom, but tougher times are putting pressure on wages. calm has been restored, but it's not likely to be long before
this country's restless factory heartlands feel the force of law again. >> let me bring you some breaking news we are getting from the hague in the netherlands. the yugoslav war crimes tribunal has acquitted by the gun carri -- acquitted radovan karovich of tone of two genocide counts that he faces. as rwanda prepares to celebrate independence, is open to rebuild confidence in the country's future. the tiny african nation wants to strengthen its economy and close a chapter on the painful memories of genocide. kevin has this report. >> images from the genocide.
the memorial museum is one of many sites across the country that honors the memories of the nearly 1 million killed in 1994. these people are example of the reconciliation efforts. his family was killed. now it is in the past but not forgotten. >> the people who live with me, we live in harmony. we have forgiven each other. there's reconciliation. some of them killed members of my family and now they have become my family. >> the events of 1994 will be a permanent scar on rwanda, but now the country is eager to show the world that there's peace, development, and technology and dreams can be reborn. that is evident in the capital.
>> rwanda and its people are reinventing themselves. this nation is free from tribal warfare. >> we will have to leave it there and go straight to the house of commons with the british prime minister george osborn talking about the barkley's situation. >> by far the most prevalent benchmark record rates used in the eurocom u.s. dollar, and sterling interest-rate derivative contracts. the outstanding interest rate contracts are estimated to be worth $564 trillion u.s. yesterday they published notice that barkley's had on numerous occasions acted inappropriately and that breached principles of business. as a result, they have imposed a financial penalty of 59.5 million pounds on barclays.
it reports that the bank on numerous occasions did not conduct its business with skilled care and diligence. the bank did not take reasonable care to organize its affairs responsibly and effectively with adequate risk-management systems and this bank did not observe proper standards of market conduct. barclays' misconduct created the risk that the libel would be called into question and the confidence in or the stability of the u.k. financial system would be threatened. barclays is not alone in this. they are continuing to investigate the conduct of a number of other banks immolation to libor. it is continuing to commit significant resources to investigations into potential attempt to manipulate libor. it is continuing to work with counterparts overseas and with other arab parties in the u.k. and
the investigation concerns a number of institutions both based in the u.k. and overseas, but it is already clear that the investigation demonstrates systemic failures at the heart of the financial system at the time. i want to thank turner and the team for a thorough piece of work. it big three questions. first, how woods -- how were such failures allowed to continue undetected particularly in the two years before the financial crisis when the most serious breaches occurred and the only motive was agreed? second, what changes are needed to our regulatory system in the future to prevent such abuse occurring again and make sure the authorities have every power they need to hold those responsible fully to account? third, what further investigations are required at barclays and what sanctions are
available and what questions must the chief executive answer? the report is a shocking indictment of the culture at banks like barclays in the run- up to the financial crisis. the e-mail exchanges between derivatives traders and the libor submitters shows an age of irresponsibility. 2005, 2006, and early 2007, we have evidence of systematic agreed to the expense of integrity. keep it a secret, one trader tells another in a separate 2007. "if you breathe a word of this, i am not telling you anything else." no one at barkley's did anything about this. the government of the day is clueless about what is going on. it's clear that the most serious breaches of principles -- >> we will be the finance
minister talking about the report, a watchdog report, saying that it shows a shocking indictment of the culture at some of the banks, including broccoli is a, saying it was systematic agreed. stay with us. -- including barclays bank. >> makes 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. >> at union bank, we work hard to understand the industry you operate in, working to nurture new ventures and provide capital for key strategic decisions.