tv BBC World News WHUT November 22, 2010 7:00am-7:30am EST
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>> ireland to capitulates and asks for a financial bailout from the eu and imf to stave off possible economic collapse. after saying it would not go cap in hand it is expected to get up to $100 billion in loans. anger at the fall of the california tiger. >> people are disgusted. people are afraid because politicians will not come out and tell us the truth. welcome to "gmt." bringing you a world of news and opinion. also coming up, mixed feelings in that new zealand over of the fate of the missing miners --
optimism yet gloom that the men are trapped underground after four days. our children in afghanistan safer than in london and new york? that is the controversial verdict of nato that a top diplomat in kabul. it is 7:00 a.m. in washington, midday in london and in dublin well -- where after weeks of denials after the government there has been some anger at the economic rescue package to help save the irish economy. the deal is expected to include a loan of about 100 billion euro and is being fleshed out as we speak in talks between the irish government, european union and the imf. >> the irish government has finally bowed to pressure to take the begging bowl to europe. a lethal combination of recession and a banking crisis left the countries leaders with no choice but to accept the initial bailout terms.
>> the banks will become significantly smaller than the past of they can gradually be brought to stand on their own two feet. the second tier would be a program to reduce the budget deficit. >> on the streets of dublin, many welcome the rescue, while furious at the government that provided over the fiasco. >> people are disgusted. people are afraid because politicians won't come out and tell us the truth. >> i am delighted that we finally faced the reality. and i think the impact it is going to have is we will finally have a new -- the kind of conditions we need to move forward. >> ireland is one of four european countries on the critical list. greece has taken its medicine. a with financial doctors hovering over spain and portugal. the ira's loan is being guaranteed by the eu and the
international monetary fund tariff is not clear how much will be needed but dublin says less than 100 billion euro. ireland will keep the coveted low corporate tax rate. european union foreign ministers in brussels were visibly relieved as the bailout could steady europe and help the other fragile economies. >> it is good news. it showed the mechanism provided by the european union works. it is good news as it finds european solidarity also works. >> but amidst the smiles there is still not invited a that more bailout could be needed. britain is not part of the eurozone club, but westminster agreed to lend ireland about 11 billion euro. >> britain will be helping. it will be a part of that international rescue effort, a bilateral loan. that is what we are negotiating this week. this is in britain's national interest that we help our
closest economic neighbor. >> the country may have avoided bankruptcy but for irish people the deal will mean several more years of pain, with tax rises and deeper cuts to public spending. emily buchanan, bbc news. >> while european foreign ministers are meeting in brussels. let's talk to our correspondent, matthew price. it still fleshing out the details of this deal. what more do we know from your end? >> very little cleared we know the meetings between the -- very little, actually. we know the meetings between the irish officials -- and the european union and central bank continuing in dublin and it was just reiterated the last hour by a spokesperson at the european commission that they would expect the process to be completed in the coming days, certainly before the end of november. >> matthew, there is talk the
european union will be setting some kind of conditions. and has been concern in ireland as to whether they would have to give up their low corporate tax rates. do we have any idea perhaps what conditions brussels might be putting on dublin? >> again, no, nothing official. again, a commission spokesperson was asked specifically to comment on the corporate tax rate in ireland which, somehow, most notably the germans and french, has been saying is not competitive and therefore perhaps should be raised -- as part of the package to give loans to ireland to help them out. we have been told behind-the- scenes the corporate tax rate is off the agenda, it is not being discussed at the moment. although, the commission's answer about questions but tense -- taxation is ireland is ireland has stood devise a budget that helps them more than just balance the books but to actually make savings and reduce
that deficit in the coming years. and obviously taxation, as the irish minded -- prime minister has been saying, taxation is one of the areas of course they will looking at. >> ok, magdy, thank you so much. magdy price with clearly not a clear picture yet of what is going on in brussels. you can find out more details of the bailout bill when it comes on our website. there is also analysis, including an animated guide explaining how ireland's economy has shrunk and why the government needs outside help to help tackle that huge hole in its finances. now, let's take a look at some of the other stories making headlines around the world. new zealand's prime minister says 29 trapped coal miners have every chance of surviving. of but four days after the explosion authorities say the mine is too dangerous to enter. rescuers are close to
completing the drilling of a bore hole, now 27 meters short of the area where the coal miners are believed to be trapped. our reporter is near the pike river mine. >> we are getting a sense there is a healthy dose of optimism which is what the families, of course, want to hear, but we are also hearing realism. the policeman in charge of the rest operation says, yes, he is optimistic the men could be found alive but the also raised the possibility, too, that things might not go to plan, that people should prepare for the worst also. we do get a sense there is good balance in this which is, of course, and portends for the families to have a balanced approach to this. but in terms of the rescue effort we understand the borehole that engineers are drilling, it is 162 meters from the top and to the body of the mind and it should be completed
the next couple of hours and it will be a significant step forward because that will allow engineers to test the air in the mine to make sure it is safe for the rescuers to go wind. that's why they have not gone in the last three days, because it is being beamed to dangerous because of this potentially combustible mix of methane and other toxic gases and also searing heat as well. >> film mercer where the trapped miners are. meanwhile, good news from china, the 29 miiners track of their since sunday have been rescued. a report from shanghai. >> free, after more than 24 hours trapped underground. state television showed the rescue live as the chinese miners were brought to the surface. we did, apparently uninjured, but they were taking no chances.
>> we will give them very good medical treatment so we ask the families not to were repaired of the government will make every effort to treat them well. we ask the people also not to worry and the public and the media not to worry. we will treat them well. >> the ordeal began sunday morning when water flooded the mine. 13 states, 22 were trapped. a rescue mission began. but soon, seven rescuers were stranded, too. the for those on the surface, there was an anxious wait for many hours as they tried to pump out of the what. they worked through the night. by the middle of the day on monday, conditions were right for a new attempt to rescue the men. it took less than an hour to get them all out. as the last minor are merged, there was relief and some celebration. we are just so happy to see it them all come out alive, this official said.
29, not one left. thank you. china bicycle industry has an appalling safety record. the government is trying to improve it, closing down smaller, illegal mines, checking on others more carefully. this mine was legal but still things went wrong. this was a rare good news story for an industry more used to dealing with death and disaster. >> the youngest son of the burmese opposition leader aung san suu cuba is being granted a visa to burma allowing him to visit his mother. he is expected to arrive tuesday morning. on sunsuit he last saw him december 2010 spend he has been repeatedly denied permission to enter the country. it is light-hearted remarks by a japanese minister and the up costing him his job. the countries justice minister of had to resign after joking
with his supporters that his job was easy. the opposition said it was an insult to the legislature. a delta airlines airplane flying to moscow from new york landed safely at john f. kennedy airport after the pilot reported an engine problem. it is thought the plane had a fire on the wing. more than 100 firefighters were sent to the airport. the trial of a former vice president of the democratic republic of congo it is expected to start at the international criminal court in the hague monday. he faces charges of war crimes related to his forces alleged actions against the billions and in a preferential african republic in 2002 and in 2003 when he was a rebel leader fighting against his own government. in a press conference held a short while ago at the hague, icc registrar detail the charges brought against him.
mainly charges of rape, murder, pillage, constituting war crimes. 142 rulings handed down. a 759 victims were authorized to take part in the trial and the trial chamber is still reviewing more than 500 other applications. >> that was the registrar of the international criminal court. still to come here on "gmt," our children and afghan capital safer than those in london and new york? nato that a top diplomat in afghanistan after those controversial comments.
10 of the somali men are in trial on germany monday, charles -- charged with piracy, the first such case in the port city of hamburg in about 400 years. they are charged with trying to seize a german container ship. if they are convicted they face around 15 years in jail. the the authorities in madagascar have indefinitely postponed municipal elections that were due to be held next month. the announcement follows a failed mutiny by army officers who surrendered after government forces stormed their barracks outside the capital on saturday. the statue of christ the redeemer which towers over rio de janeiro is probably the brazilian cities best known landmarks and a popular tourist attraction. well, if imitation is the sincerest form of flattery they should be pleased about what is happening in poland. catholic priests have concentrated their own huge statue of jesus which they say is even bigger.
>> to the sound of church bells, a new place of pilgrimage on a chilly sunday on poll -- in poland, they came by the thousands to see this -- christ the king, the giant, serene figure towers over a farmer's field. a potent expression of faith in this deeply catholic country. the symbolism, too, in a tight, 33 meters -- one for every year of jesus's life. some of those drawn to say it is powerful but a bit puzzled by the location
life. >> it will be a tourist attraction but they don't seem to have built any infrastructure here. >> soaring over this city in rio de janeiro, the rival is blessed with panoramic views of mountains, beaches, and ocean. at the city's unofficial symbol is also its most visited monument. so why a muddy field in poland -- are obvious tourist appeal? for the faithful, the new statute has an important message. >> let the message flow throughout our homeland and the rest of the world. that the faith of priests and citizens, we wish to present jesus and his spirit into human hearts everywhere. >> some poles criticized the statute as a vulgar and grandiose and not likely to compete with the brazilian statute. but paid for entirely by donations, its stand as a potent reminder of poland prosody the christian faith. bbc news. >> we want to hear what you think about our programs so do get in touch with us. the best way to do that is to go to our website, bbc.com/gmt.
you are watching "gmt" from bbc world news. these are our top headlines been positive market r accept -- ireland's accepting of a bailout. police in new zealand trying to rescue 29 trapped coal miners say they remain optimistic but they are planning for possible loss of life. now, let us catch up with all of the business news and more on the market reaction to that bailout for ireland'. >> because we have not heard the details the markets are not popping open champagne bottles not just yet. thank you very much. like it not, ireland will take the bailout medicine and as we
have been reporting the rescue program is yet to be finalized but this is what we know so far. loans will come from the european union and the international monetary fund for the possibility of tops from individual states. we know the u.k. and sweden already signaled they are willing to help, and the total rescue some will be lost among 100 billion euro, about $137 billion. in other words, it will be smaller than greece's bailout that we sell in may. we also heard, the news from movies, international credit ratings agency saying it may downgrade ireland's ratings by several notches. let's get more on this. i am joined by the head of interest rate strategy at an as global who joins us. welcome to the program. saying the champ -- champagne bottles are not opening in terms of market reaction but the problem i guess what that is you can supply rest in money. it doesn't fix the fundamental problems. >> that's right. it that are two issues. the market has gone along way to
pricing in some sort of bailout and the last week or so. we have seen the year wrote a talented that and 2 irish bonds themselves. as you say quite rightly, the fundamental problem is still very much in there and it will drag on investor perception about reform markets going forward for the next few months. while there might be room for a temporary relief rally, as we have seen, and it has been quite limited in nature, we are by no means out of the woods yet. ireland has got to get a budget together in the next week or so and they've got a lot of fiscal consolidation already in the pipeline. they are aiming to consolidate above 15 billion euro the next three or four years. but the growth assumption still look optimistic. the risk is that they could have to sanction further spending cuts and tax hikes and that could send the economy into a deeper reception. >> -- recession.
>> how tough is it going to be and what about the form of the bank restructure? >> it is going to be extremely tough. the risk is they are going to have to do more because the growth assumptions are very optimistic. if you look at the size of the bailout package that the markets are expected, about $80 billion to $90 billion or so. $60 billion of that will probably be required to fund their bond redemptions which are coming up over the next three years. that means about 20 billion to 30 billion will be directly in the form of bank recapitalization. but there is no doubt about it, particularly with the threat of rural eurozone growth in general of the next couple of years, the pressure will be on ireland to deliver. >> great stuff from you. thank you for joining us. one other story to leave you on, and asia, and that is thailand that the economy fell during the month of july through september. government data showed gdp shrinking by 0.2% over the
quarter. previous from the previous quarter were revised to show a fall. it is manufacturing output that has slowed in recent among -- some say it is linked to their currency rise against the dollar. that would also tie into currency war that we are seeing around the world. this is what marketed in asia. mostly higher, as i was mentioning, around the world. one uncertainty has been removed from this whole eurozone debacle, and that is that ireland will accept a bailout but as we keep saying, no details yet some markets are not rejoicing just yet. >> we will have to wait and see. thank you very much. nato's top diplomat in afghanistan has had to clarify a statement in which he said that children in kabul are as safe as those in london on new york. he was speaking to a bbc children's news program news
round. however, has now said he is trying to explain how and even the insurgency is in afghanistan with most of the violence taking place away from the capital. >> in of the kabul evening sun, is simple java pleasure. as such innocent fun was banned under the taliban but in the nine years since the international innovation, the children have known peace. even in this school, miles from the front line, pupils are warned of the dangers of land miles. but officials from the coalition forces in afghanistan told the bbc's news round program that the lives of young afghans are getting better despite the conflict. >> it is not like the second world war, where people are familiar with, when you fight on the battlefield because the talent that can fight like that. they hide among the people. >> they do sometimes feel unsafe.
>> here in kabul and other big cities -- >> there are actually quite a few -- if children are severe than in new york or glass bowl or any other cities. >> such an upbeat analysis is based on the fact that by afghan standards, kabul is relatively safe. but even here, many youngsters live in constant fear of subside bombers. despite heavy security presence, childhood innocence is a rare thing in afghanistan. >> the chief executive of the charity save the children have dismissed the comments, saying they are misleading. >> i don't think the comparison with new york, london, is very helpful. children and afghanistan are extremely vulnerable. 850 a day die of preventable diseases like diarrhea and pneumonia. we have to listen to the children of afghanistan.
they and the program actually said they were very frightened of all the bombs and attacks. we know in the places we work, not just double but other cities across afghanistan, children are very scared. >> justin forsyth from save the children. the exiled tibetans virgil leader dollar llama -- tibetan spiritual leader dalai llama -- he also said burma blessing military rulers need to go further. >> release is a very positive sign. hopefully she will be able to work without restriction. after all, burma is a buddhist country.
and i am sure the military leaders are also buddhist. so they should, i think, i think they should carry buddhist principles. compassion. >> there is another nobel prize laureate still in prison. do you see any hope of his early release in china? >> again, difficult to say. all the chinese communist hard- liners -- much change and it is still changing. in large number of chinese students now study in foreign country, and also economically with the outside world. that is the new reality. not like 1950's or 1960's.
complete control -- now impossible. importantly the prime minister, wen jiabao, publicly expressing the necessity of some political change. and he also expressed western- style democracy that he mentioned. the voice, you're right year, stronger and stronger. >> that is almost it for this edition of "gmt." that have been some anger in ireland at the bailout of which is expected to include a loan about $100 billion. what is coming up on bbc world news america -- we will take you to one of the world's largest exhibition of military hardware as the defense industry shows off his latest -- its latest weaponry. good bye for now.
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