"journal." >> here's what's coming up on the show -- after grueling marathon negotiations, the eu agrees on a budget bill that for the first time sees a cut in spending. >> street battles in tunisia following the funeral of the slain opposition leader chokri belaid. >> millions are in asia heading home to celebrate the year of the snake. for the first time in the history of the european union, the long-term budget will be cut. 27 eu leaders meeting in brussels have agreed to a final budget during a second summit arranged especially to do so. we will go live to brussels for the latest in just a moment. >> that's right -- the drastically reduced seven-year budget is worth 959 billion euros and was hammered out after two days of nearly round-the- clock negotiations and is far
less than the just over $1 trillion euros -- and the one trillion euros the commission chancellor angela merkel went into the talks saying she was confident the agreement would be reached. in the end, the 27 member states came up with a compromise that even british prime minister david cameron welcomed as a good deal for britain >> it is perhaps nobody's perfect budget, but there is a lot in it for everybody. obviously, you can look at the end result through many, many prisons. from the overall european perspective, i want to emphasize that the budget is future- oriented. it is realistic. it is driven by pressing concerns. >> the total budget ceiling over the next seven years has been tapped at about 960 billion
euros. it is the first-ever net reduction. reaching a unanimous agreement between all of the eu's member countries was a difficult task. >> it is not easy reach an agreement between 27 different countries, but we've managed it, so we are now confident and positive going into negotiations with the european parliament. we know it will not be easy, but we are all agreed that what is important is that we have taken a great stride toward gaining some clarity in the eu budget. for 2014 to 2020. >> but as the leaders go home in triumph, the budget faces another hurdle that has to be approved by the european parliament. >> our brussels correspondent has been covering the summit for us. let's bring her in now. this is a real first, this cut.
where will we see budget reductions being made? >> spending in areas such as infrastructure, energy, transport, but also scientific research will be reduced. also, eu officials will see pay slightly reduced, which means that a key demand by great britain's prime minister david cameron has been met. agriculture subsidies are also taking a slight head, but overall, they are still the biggest chunk of eu spending. >> some analysts already say this budget means less europe. what are you hearing at the summit? >> it became clear from the start that eu leaders to come here to these tough negotiations in brussels defending their own national interests, and, of course, the european parliament is not happy with the proposal on the table now. they are saying that the brunt of the cut is happening in areas that are future oriented. much disagreeing with what the
european council president has said. they said we would be more spending in areas that could potentially boost the economy or create jobs and foster european integration, so the european parliament has already said that the real negotiations will start now, and that means that we are still very far from an idea. >> thanks very much for the site of the summit in brussels. tunisia has been rocked by a level of violence not seen since the revolution that toppled the government there two weeks ago. street battles erupted following the funeral of murdered opposition leader chokri belaid. >> tens of thousands of people joined the procession. his supporters accused the opposition party of being involved in the killing. >> tens of thousands joined the funeral march of chokri belaid calling for a new resolution -- revolution and promised to carry on the fight. the slogans have been heard
since the opposition was gunned down outside his home on wednesday. many here blame the country's ruling party for the killing. they are calling the party leader a murderer. nearby, opponents of the regime clashed with police. cars were set on fire. the police responded by firing tear gas at the rioters. there is feeling of anger and desperation. but some of the protesters say it is hoped that is driving them on. >> there is a big opposition here, democratic opposition, and i think that this horrible crime has managed to bring together all two nations in unity around one idea, a round democracy. i hope things will get better. we can only be optimistic. >> in the center of tunis, shops
and businesses were boarded up. the general strike has brought the city to a standstill. >> for more on this, we are joined now live by our correspondent who is standing by in tunis. the clashes we have been seeing look especially fierce. what is the situation right now? >> clashes erupted earlier this afternoon. the situation is anxious. the situation is still unclear. it is not clear how it will evolve on the political end either. at the moment, tunisia is really not knowing what will happen in the next few days. >> what do you think? how is the crisis likely to play out given the tensions between ultra-conservative moslem
groups on the one hand and secularists on the other in tunisia? >> it seems it might actually lead to not a second revolution, but it might lead to a reconstruction of the political landscape in tunisia, especially as democratic forces have been divided for the last couple of years are finally working together. there's a chance that the democratic process might find a good way to come together. >> thanks so very much. as tunisian deals with the fallout of that assassination, tensions are on the rise in egypt. hardline muslim clerics are calling for opposition figures in egypt to be killed. >> thousands of demonstrators took to tahrir square in cairo after friday prayers to protest against the islamist government.
they carried banners in support of the tunisian opposition and the murdered secular leader, chokri belaid. efforts to secure peace in mali have suffered a number of setbacks during a course of the day. a suicide bomber has blown himself up at a government checkpoint. it is the first suicide attacks since french troops intervened to halt the advance of islamist rebels. a group with links to al qaeda has claimed responsibility and says it will carry out more attacks. further south in the capital, coke, troops loyal to the former president are said to have you need, causing panic among local residents. for more on the situation, we go to our correspondent who is in the capital, bamako. we are getting reports of a mutiny in the capital. is the situation now under control? >> the situation began when troops loyal to the ousted president decided that they did
not want to join government forces and were going to hold the barracks where they are living now, the government that was led by the coup leader decided to take this building back, and in in the end, rocks were thrown by the forces at the barracks, and the government military ended up killing one person and injuring others according to reports. now they currently hold the barracks, and the situation is calm. >> what about the north where it looks like there was an attack by a suicide bomber? how stable is mali? >> some have seen the suicide bombing as a confirmation that the war is changing from conventional fighting to now where insurgents are able to blend in with civilian populations and use weapons like improvised explosive
devices and suicide bombs for more targeted attacks. >> thank you very much. gunmen in nigeria have shot dead nine people in two separate attacks at polyclinics. the killings, after a local muslim cleric denounced polio vaccinations as campaigns in a western plot. >> eyewitnesses say the gunmen stormed into the clinic, opened fire, and then set it ablaze. police declined to say who they think is responsible. >> to some business news now -- there's been good and bad news for german exporters. figures just released show exports for the whole of last year hitting a record high. they rose 3.4% in 2012 compared to the year before. the demand came mainly outside the european union. >> results for the month of december last year were disappointing. they rose just 0.3% compared with a forecast rise of 1.3%.
while many countries around the continent continue the struggle of massive economic problems, germany is powering ahead. demand for german goods seems insatiable, and that includes in the fashion sector. >> it is not just their models that looks spectacular. the new number -- numbers from fashion house hugo boss are the best today. double-digit turnover. the company expects the growth to continue. consumers in europe might be watching their spending, but demand from customers in the u.s. and china is more than making up for it. and it is not just hugo boss. 2012 saw german exporters selling almost 1.1 billion euros worth of goods to international customers. that is 3.4% up from the year before.
the value of imports rose as well, but at a more moderate pace. 2012 saw germany's second highest trade surplus since the recession began. >> for a look now on how the german trade numbers move the markets, here is a report from frankfurt. >> not many people here at the exchange dare to give a forecast where -- as to if german exports this year will be as strong as last year's. one factor which supported exports last year was the relatively low euro/dollar exchange rate, and nobody can tell what it will do this year. on the stock trading floor in frankfurt this friday, the dax managed to climb slightly towards the end of the trading day. also thanks to a positive development of the u.s. trade deficit. but still, traders are not heading into the weekend in a positive mood. outlooks that companies have
been giving, and of course on the trading week, were not convincing, and that is why the dax lost more than 2% in the course of this trading week. >> a quick look at the market numbers now -- the dax closed up 5.81%. the euro stoxx 50 gain more. in new york, the dow is going up by about 0.3%. the bureau is now trading at one -- $1.3358, slightly down. >> talk about going against the mainstream -- the ceo of volkswagen says he wants to take a pay cut even though under the company's rules, his salary should be going up by millions. >> he told the german magazine that it is not possible to justify a pay package of 20 million euros to ordinary people. vw is about to enter into wage talks with production staff. in 2011, he was the highest paid ceo in germany.
>> china is continuing to expand its role as the workshop of the world with, according to its own figures, exports growing 25% in january compared to the same time last year. that far exceeds expectations. >> and is healthy demand in the domestic market, too. imports rose 28% last month. analysts say some of the increase was because factories were quickly fulfilling orders before the lunar new year. we will have more on china and that lunar new year when we come back. >> not only that, we will go live to the berlinale talking to our man out the red carpet, so do not go away.
now head of the lunar new year celebrations which began this weekend. >> travelers had better be ready for traffic. today is expected to be the biggest -- the busiest on the roads today in china. >> across asia, people are on the move. they are returning home to bring in the new year with their families. in china alone, some 200 million people are expected to travel for the holiday. it is goodbye to the dragon and hello to the snake. while some fear the traditionally despised reptile will bring bad luck, others are more positive, like this fortune teller in burma. >> snake means stable and thinker and a very strong. he works with a strong mind. >> new year brings a lot of business as crowds flock to markets to stock up on traditional food for the holiday. in some cases, food is even connected to look for the coming year.
-- to luck for the coming year. >> people say that eating rice noodle soup can keep them healthy, age one more year and have no unfortunate events for the family throughout the coming year. >> if that is not for you, you can always hang up your new year's resolutions instead. as sunday celebrations slither ever closer, families across asia are looking for to the most important gathering of the year. >> and many chinese will no doubt be hoping the new year brings some relief to the problems resulting from their country's rapid industrialization. as problems continue to mount, we have seen the toxic smog that poses a health threat to tens of millions in beijing in northern china. ammonal hong kong is experiencing an overcrowding so severe that authorities are warning of these sets the stage for the rapid spread of infectious diseases. the government says it is taking steps to turn things around. >> 12 men shed this apartment in
hong kong. when night falls, they each have a two-square decimeter cage to sleep in. there are no mattresses, just two square meters of private space. a few streets away lives the ho family. they can count themselves lucky to at least have a bed, but the four family members have to share one room. it is not easy. >> the room is too crowded. also, there is only one bed. i have to sleep with another person. i want to sleep by myself and i want to have my own bedroom. >> hong kong has 200,000 people packed into each square kilometer. living space is at an absolute premium. rich chinese speculated have sent housing prices soaring. since 2008, they have almost doubled. food prices have risen, too. one in six people here is living
in poverty. hong kong's new chief executive has made some big promises. he wants to build more affordable housing, but with more than 200,000 people needing new homes, it will be almost impossible to meet everyone's needs. >> in berlin, friday was the first full day of the berlinale, the berlin film festival and start of the competition. 19 films are vying for the coveted golden bear for best movie. today, jury members and film fans saw hollywood star matt damon in the country -- controversial entry "promised land" environmental thriller about the practice of fracking. >> he stars as a salesman persuading inhabitants of a small town to opt for natural gas. the gritty drama "para us hope" is about women and their search for love -- "paradise hope."
for more, we are joined by our entertainment correspondent. we talked about china yesterday, but we were talking about matt damon today. it was a bit more hollywood flavor, was it not? >> most definitely. today, we got both sides of the berlinale. the hollywood side with gus van zant, big hollywood director, and that damon, with a very politically charged film about fracking. not my favorite, i must say. it was a bit too conventional, and i think they played it to say, and the other side, about as extreme our house as you can get with a very controversial director. at least today you had something for everyone. >> another one of those big movies with big hollywood names is "don john's addiction."
what can you tell us about it? >> this is my favorite so far. it is an update about the don juan story about a man addicted to internet pornography who falls in love a woman addicted to hollywood romance movies. it is a bit odd but very funny, quite compelling and very impressive directorial debut by joseph gordon levitt, one of hollywood's biggest stars taking a chance at directing and really hitting it out of the park. >> thanks for the update. >> talk about a new type of export. this year's carnival in rio de janeiro is said to have a bit of a german touch. it turns out that one of their leading some schools has chosen german culture as the theme for their performance. >> if you have ever seen these schools perform, you know that it is an elaborate and expensive
production with only one school taking home the top prize. >> a chocolate themed carnival made of cloth. 80 colossal pieces of black forest cake. one of rio's most successful summer schools is making this year's carnival a very german affair. the slices of cake are almost ready, but they are still missing the cherry on top. that will get added just before the parade. >> we will put something read over our heads. >> you cannot take this all that seriously. this is all about having fun. >> we are transforming ourselves in a truly delicious way. >> magical germany -- that is the motto in 2013 and when they are confident will help them defend the championship. it is german culture all the way
from its and fairy tales to dwarves and valkyries. preparations began right after last year's carnival. the price tag -- some 4.5 million euros. part of the funding comes from the city. the rest from commercial sponsors. the creative spark driving the parade is a household name in brazil. >> a samba school parade is art, are you can touch. it is supposed to dazzle you, so there's no point in getting lost in the details if the parade is not visually arresting. for me, what is important is what you can see, that it is a feast for your eyes. >> he oversees every aspect of production until the last minute. his team is a mix of old-timers who work year-round and seasonal employees.
most of them are from what was until recently one of the most dangerous slums in the city. it is a tradition that makes them proud. the school will send 4000 participants to the parade, and they are already making themselves heard. brazilian rhythms and a passion for germany is how they plan to wowed the crowd this year. >> we want to show what germany is capable of. i've heard we are all getting dressed up as miffy so in our wing -- mephisto, goethe with a samba beat.
>> they're not the only ones who cannot wait for carnival to begin. >> well, i am to go. if you want to see more, a full- length feature on the german elements, you can do that on monday. >> i would like to see that chocolate cake, chocolate without the calories. to find the broadcast for your region, check out our website, dw.de/infocus. change of mood right now, it is one of the highlights of the european social calendar -- the vienna opera ball took place last night attracting austrian high society, the literati, and of course, true fans of the waltz. >> it is a characteristically refined affair. >> and dazzling occasion like this calls for which dramatic interest. this german fashion designer made his in a horse-drawn carriage.
international showbiz heavyweights pulled up the most extravagant suits and downs for the annual event. this year, guests included oscar winner hilary swank. the president of austria and his wife looked on as 144 debutantes open the ball with an elaborately choreographed dance. performers from the national ballet made an appearance. as did stars from vienna's famous opera. and then, the cuwe -- cue everyone was waiting for. "the blue danube waltz" by johann strauss, a signal that it was time for anyone brave enough to take the floor. >> to sports now, british cyclist mark cavendish has won the tour de qatar.