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tv   Journal  PBS  August 30, 2010 5:00pm-5:30pm PST

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>> welcome to" on dw-tv. coming up this hour, outrage over comments on jews and muslims by a board member of germany's central bank. the german government moves to extend the life span of nuclear reactors by up to 15 years. >> and a german ship chipmaker sells its wireless chip division to u.s. giant intel. >> there are resignation calls for a board member of the
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bundeswehr. it has in several hundred people take to the streets of berlin, condemning his views as racist. >> in his new book, sarrazin claims muslim immigrants are unwilling to immigrate and that they share a negative outlook on education because of culture and genetics. he says this attitude, coupled with high immigrant birthrates, are undermining german society. >> after more than 1000 years of history, the german people are on their way to phasing themselves out. >> sarrazin called on critics to evaluate his forthcoming book based on the facts alone. many feel sarrazin has crossed the line. his remarks are widely perceived as anti-muslim and anti-semitic. government leaders and
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representatives of the turkish and jewish communities have roundly condemned the bank official's statements. >> i'm accusing him of defamation and of inciting cultural racism and reducing people to their background and religion. the arguments are bogus, pseudo arguments, particularly the biologic and genetic ones, and they make it impossible to take this book and this man seriously. >> for now, thilo sarrazin is getting more attention than he has had throughout his political career. >> earlier, we spoke to our political correspondent simon young, and asked how this controversy could affect the long-running debate on the immigration of minorities in germany. >> in the first instance, in the short term, it will hinder the debate because the debate is all on mr. sarrazin and his future, but the process of integration, of making sure that everyone from society is able to join the
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mainstream, that does throw up huge problems. he is not wrong about that, and it is true that people from immigrant backgrounds, immigrants and their children, do worse in the education system, and they are more likely to be unemployed than people whose families have lived in germany for many generations. the question is why, and to answer that, you have to look at a range of issues of social injustice that affect everyone, not just immigrants, so i think the debate goes on. at the moment, it is confused by mr. sarrazin's contribution. >> the german chancellor has come out in favor of extending the life span of the country's nuclear power plant by another 10 or 15 years. this would mean reversing landmark legislation by a previous government to phase out commercial reaction -- reactors by 2020 to. in return, merkel wants nuclear energy companies to contribute billions of euros.
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>> this follows an independent report commissioned by the government that suggested germany's energy needs and commitments would be best met its nuclear plants were allowed to operate for longer. >> technically speaking, 10 to 15 years is reasonable. thus, as head of the government, i will have to see how we can integrate safety as the key principle of nuclear energy. >> but opposition parties accuse the government of selling out to the nuclear industry. the greens are trying to do everything in their power to stop the proposal from being carried out. >> we will use all legal means to prevent this extension. this government does not have a majority in the second chamber, so if they do manage to push the legislation true, we will try to stop it. >> the government plans to present a comprehensive new energy strategy next month. until then, debate is likely to be heeded. >> staying in germany, the
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premier of the state of his and has been given a sendoff before formally leaving office on tuesday. he is a senior member of chancellor merkel's. he is leaving politics after 11 years at the helm. he wants to take a break before moving into the private sector. the interior minister is expected to be confirmed as his successor on tuesday. a review into the united nations climate change panel has called for fundamental reform. the study was ordered by the united nations after the body faced a beverage of criticism over errors in its reporting -- a barrage of criticism over errors in its reporting. the five-month review called for stricter guidelines on source material and checks on conflicts of interest. it also advocated an overhaul of management, shorter terms of office for the chair. victims of pakistan's catastrophic floods are going to
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extremes to find food. a month after the floods hit, hundreds of thousands of people are still out, still cut off, many without shelter. the southern part of the indus river is 40 times its normal volume, and as the torrents of volume -- of water make their way into the sea, levels are receding in some areas, allowing survivors to return to what is left of their homes. >> residents make their way across the submerged countryside in southern pakistan. they are following a sunken railway track, hoping to find food in the neighboring villages, but travel is extremely dangerous. >> there are no votes, no means to cross the water. villages are crossing on foot. there are snakes in the water fighting people. children could drown. anybody carrying weight could drown. the government is doing nothing. >> the floods have broken open
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sewer lines and contaminated wells. experts say only 10% of those displaced have access to clean water. the lack of proper sanitation means diseases are beginning to spread. this girl at a clinic in this district is suffering from diarrhea and fever. she may have malaria. the united nations says 72,000 children are at high risk of death due to severe malnutrition. doctors say they are fighting a vicious cycle of disease. >> the problem here is that the drinking water that they are using or any other source of disease in the community -- it is circulating the disease again and again. >> it has been four weeks since the flooding began, and the scale of this humanitarian crisis is still growing. some 8 million people are in need of emergency relief.
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>> nato has confirmed that seven u.s. soldiers have been killed in two roadside bombings in southern afghanistan. one of the attacks reportedly took place in bala tile city of kandahar. eyewitnesses report there was a large explosion after a u.s. convoy passed by. the assault six the number of u.s. troops killed in the last three days to 14. to business news now, and, steve, i've heard americans have been out on a shopping spree in frankfurt. >> absolutely. big payday, but is it making the right strategic decision? intel corp. of united states has reached a deal to buy the wireless unit of germany's infidium technologies for 1.1 billion euros in cash. the deal would allow intel, the world's largest semiconductor company, to increase its presence in the internet connectivity sector where it has had limited success.
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the decision to desert the highly competitive sector will allow it to focus on core strengths in the automotive, industrial electronics, and smart card technology businesses. >> these chips are destined for smart phone makers like nokia, samsung, and apple. in video sells chips to just about all the world's top makers. sales totalled some 1.2 billion euros in the last quarter. about 1/3 of the income was from chips made for wireless phones. of the total profit of 163 million euros, the wireless chip division generated a mere 24 million. the company has long had difficulty making money with its wireless chips. on top of that, the division will made huge investments to stay competitive over the coming years. now, it has decided to sell the division off to intel.
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>> it might make sense for infineon's short-term liquidity, but intel is the real winner in this deal, especially from a strategic perspective, and i think infineon is losing an important long-term strategic option. >> by selling off its wireless chip division, infineon could be turning its back on a global market. global smart phone sales are soaring, along with demand for wireless chips. >> onto monday's market action. after a strong finish to last week, european shares started the new week on a bit of a negative note. our correspondent send this summary from the frankfurt stock exchange. >> a bit of a gloomy side to the new trading week that was positive in the beginning, but still on the majority of the sub market. fears that the stock market will cool down.
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even intel's takeover of infineon's wireless unit could not fuel demand and has expected a higher price, driving the shares sharply down. >> we can stay for a closer look at monday's numbers. the blue-chip dax index closing about 0.6% lower. the euro stocks 50 ending the date also down by about 0.5%. meanwhile, across the atlantic, the dow closed just a couple of minutes ago, down by nearly 114%, and in our currency markets, the year of trading at about a value of $1.2651. shares in europe's biggest tour operator states their biggest climb on monday, rising by about 5% after the russian billionaire requested regulatory permission to increase his stake in the company from 18% to 25%.
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allow, the purchase would give him a significantly larger stake. the norwegian shipping tycoon has really been at odds with management over strategy at corporate governance issues. he has been a staunch defender of management against attacks from fredericton. german regulators are expected to sign -- decide on the matter by the end of september. russia has threatened to raise tariffs on imported cars. according to the prime minister, it would encourage foreign car makers to build new factories in russia. this year's moscow auto show provided another clear reminder that foreign competition has decimated russia's domestic car industry since the fall of the soviet union. some foreign companies have already begun producing in russia. analysts say the new threat of tariffs could jeopardize russia's bid to join the world trade organization, which has
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demanded the lower import tariffs as a condition. germany's economy grew by 2.2% in the second quarter of this year, reporting the highest quarterly growth rate in two decades. that has now led germany's trade unions to demand higher wages. >> the crisis appears to be over, and german companies are back in profit, so employees are asking for their slice of the highs. for the first round of negotiations following the crisis, steel workers are demanding a 6% wage increase. >> in most places where recovery is under way, employees who help pay for the crisis are now demanding fairer treatment. and if there are not good results, they want their share. >> employers see things differently. they say recovery is uncertain and fraught with risks, and that excessive wage demands could endanger economic recovery. >> we have just come through an
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extraordinarily difficult time with the most difficult and brutal economic collapse in recent history. people should be aware at this point that we are still not out of the woods. >> but the head of germany's trade union federation said in a newspaper interview that the time for moderate wage policies is over. >> it is unacceptable for employees to have to repeatedly pay for the crisis. we will not hold back in recovery. now it is our turn. >> the unions are also demanding a minimum wage for temporary workers who suffered a great deal during the crisis. >> that is your business update. >> thanks. a volcano on the indonesian island of sumatra has erupted for the second day in a row. it spewed out lava and sent another plume of ash and smoke 2,000 meters into the air. officials have issued the
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highest warning level, ordering about 20,000 people to evacuate. it is the first time the volcano has erupted in 400 years. a gunman has killed seven people and wounded 15 in a shooting spree in the suburbs of slovakia's capital. police say the man was armed with a submachine gun and two handguns. he opened fire in an apartment and went out onto the street shooting people at random before killing himself. officials say at least five of the victims were members of the family leaving when the rampage began. the motive of the middle-aged man remains unknown. german authorities are investigating two controllers for alleged fraud. the suspects work for a private firm contract by the national handball association. they are accused of forging results using their own for test samples. >> strip prosecutors are investigating criminal complaints against the two
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officers. they are accused of failing to show up for two handball games in january and submitting samples of their own urine. they allegedly faked the signatures of two players who were shocked when laboratory tests revealed their dna samples were identical. >> my biggest fear was that i could be suspended. that would be disastrous. i was afraid they would not be able to find out what happened and who was responsible. it was very frustrating. the german handball association has called it an isolated incident, but anti- doping officials say it is a huge setback of efforts to expose cheats. >> the corrupt actions of doping control officers could inflict massive damage on the battle against doping. therefore, we are demanding a full investigation by all parties involved. >> questions are being raised over the integrity of doping control procedures and the use of private subcontractors to carry out the tests. >> up next on dw-tv, the growing
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concern about the rising price of wheat.
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>> more education. more culture. your link to germany. dw-world.de -- get more. >> welcome back to our "in depth" look at the markets this week. the price of wheat has skyrocketed in recent months, partially driven by a ban on exports in russia after a record drought and wild fires destroyed almost 1/3 of its harvest. in pakistan, floods have wiped out the crop, especially in punjab province, the breadbasket of the nation. but some assert there is no global shortage. they blame high prices on speculation in the commodity markets. it is a lucrative business for traders but has dire consequences, especially on the world war, and the aid agencies trying to help them. -- on the world's pour and the
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aid agencies trying to help them. >> these people are trying for survival. the disaster has left an estimated 6 million people destitute with floodwaters covering an area the size of britain, but for aid organizations like the united nations world food program, it is becoming increasingly difficult to deliver the help that is so desperately needed. >> we are seeing both a shortage of products on the market but also very rapid price rises, which, obviously, creates issues of accessibility for people who in a part of their country which was already, as we say, food and secure, where people were still struggling to feed themselves properly. >> but basic foodstuffs like we have not only become more costly in pakistan. all over the world, the price of grain has soared amid growing
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market speculation on agricultural products. >> at the world food program, we deliver more than 1/3 of food aid as weak because people need it. when prices shoot up by 60% life in the past few weeks, it is a lot more expensive, and we cannot support nearly as many people. >> children are the most vulnerable. without regular meals, many are weakened, and then more prone to illness. the situation has become critical in recent years. in 2008 and now in 2010, speculation has led to price spikes on the weak market. what is not driving the trend is a lack of supply. a farmer in the united states, the world's largest wheat exporter, the season has had a bumper harvest on his 400- hectare property in kansas. that and the favorable prices
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could see his earnings jumped 15% this year. he says price fluctuations are part of the business. >> obviously, farmers who have their grain still in storage -- they will be able to take advantage of it, but it is a give-and-take thing. we win some years, and we lose some years, and that is the way we live. >> few know the rules better than charles. for the past 30 years, he has been a commodities trader in chicago, home of the world's futures exchange for agricultural products. he says the market is changing. despite ample supplies of wheat, the prices continue to rise, fueled by rampant
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speculation. >> there is no question that speculation played a role in the rally on wheat prices with the virtual doubling of weak prices, but it was not really from a standpoint of people getting long the market, looking for higher prices. it was more from a standpoint of speculative having speculated heavily. >> just seven years ago, total investment in the wheat market was $30 billion. by 2008, it had ballooned to $318 billion, a massive speculation bubble. the financial sector continues to fish for investors in commodities. the royal bank of scotland promises and long-term rise in raw material prices. and deutsche bank says agricultural products offer an attractive risk profile and an attractive profit opportunities.
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their profits that come at a cost to the world's pour, and each of high grain prices led to street riots when ordinary people could no longer afford to buy bread. with half the population living on the poverty line, earning the equivalent of just $2 a day, any rise in the cost of food can have dire consequences. >> when food all of a sudden doubles in price through speculation, then people cannot afford it. we saw the consequences last year. 100 million people were driven to hunger within a year. we have never seen that before, and it was because food became so expensive. >> countries like egypt are unable to produce enough food to feed their people. they are dependent on wheat imports, imports that are becoming more and more expensive. that is using up money that otherwise be spent on
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modernizing their own agriculture industry. it is a vicious circle. entire countries are at the mercy of the commodity speculators, his appetite continues to grow. >> as you heard and saw, the situation has become critical for some. earlier, i spoke to another expert on the subject, a professor of international food economics. i asked him what he thought was behind the recent increase in the price of wheat. >> agricultural markets have always been characterized by volatility. this is a normal phenomenon which is due to surges in demand and supply, but what we have observed over the last three or four years is that the price spikes have become more pronounced, and this is at least partly attributable to excess of speculation because the dollar amount put into agriculture commodity markets over the last few years are enormous, and this
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is due to money being shifted away from the housing market and other financial markets into commodity markets, increasing wheat and for other agricultural commodities. >> how was that affecting the market in general and farmers as well? >> first of all, unpredictable price spikes certainly increase in risk, and this means that investments are lower because farmers decide how stable a market is when they make their decisions about investments. investments into agriculture globally are currently very necessary in order to face the challenges of hunger, poverty, climate change, so that means if you have increased risk today and lower investments, then this can mean disaster tomorrow, but there is another, much more immediate consequence, which is particularly effective for people in developing countries. if you look at for households in asia and africa, many of them
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spend 70% or 80% of their total income on food, and in such a situation, prices go up dramatically, which means these people have no alternative but to reduce consumption, which drives hundred figures up. over the last four years, the number of hungry people in the world has increased by 150 million. >> what can aid organizations do about the prices of supplies to those people? >> aid organizations cannot do much about the prices, but what could be done is to have a certain grade -- grain reserve, which could be managed by a credible international entity, such as the amount needed for crisis situations are available at reasonable prices and that proper action would be possible. this would not require huge grain reserves because the quantities of grain needed on the average for a crisis situation is only a very small fraction of the wheat and grain
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trade that we see internationally. >> thank you very much for joining us. growing concerns over the rising price of wheat -- that was the focus of "in depth." thanks for being with us. captioned by the national captioning institute --www.ncicap.org--
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