tv BBC World News PBS October 27, 2011 12:30am-1:00am PDT
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to end the debt crisis. -- a $1 trillion euro fond to try to end the debt crisis. >> we must further include our economic governance. >> the banks agree to write off half of the grease's debt. debt.greece's >> i think we can claim a new day has come for greece. >> how will the world stock markets react to the news? we will have the figures. it is 11:00 a.m. here in singapore. ou>> and it is 4:00 a.m. here in london. this is newsday.
>> it took until 4:00 a.m. in brussels for your role leaders to hammer out a deal on the debt crisis -- for euro leaders to hammer out a deal on the debt crisis. they will accept a loss of 50%. they also announced a major expansion of the bureau's own bailout fund -- of the eurozone bailout fund. banks will be forced to raise more capital. after almost 10 hours of talks, the french president said the results would relieve the whole world. >> i think we consider these positions extremely important. they have been taken by 17
countries. the complexity of the files, the necessity to get everybody to agree means that we have a long night of negotiations. but i'll believe -- but i believe the results will be greeted with satisfaction by the whole world who are expecting strong decisions. i think these decisions are fair. >> angela merkel said that the leaders have done the right thing for the year rose zone -- for the eurozone. >> we have made clear the causes of the crisis. we have talked about short term and medium term reforms. they are to improve the
cooperation within the eurozone. yesterday, in the german parliament, i wish to that europe would come out of the crisis. also, today, this is the message that we all believe -- we all agreed to a package consisting of five elements. the members will make commitments. and also the strengthening of the stability mechanism in the eurozone. >> chris morris and joins me now from brussels.
is this the comprehensive solution we were promised? if so, do you think that the european markets, when they open surely, will respond as well as asians seem to be doing? >> is a comprehensive? it is ambitious. that is what they're calling it. all of the details are not there. it was impossible to expect that they would be. for example, angela merkel lead melted that it was impossible to know -- angela merkel admitted that it was impossible to know the complex mechanisms that would be used to leverage the bailout fund. the details have been ironed out. for that, it really remains slightly up in the air. the 50% figure for the write- down of greed that, that does not necessarily mean -- of agree debt, that does not
necessarily mean all of it. there could be about 100 billion euros of debt. that means that each bank that holds public debt, as ever, a lot of the devil will be in the details. i think that the good news for the markets is that it did not end in failure. europe is facing its most difficult situation since the second world war. we're talking about a massive amount of money, huge amounts of money. consequently, a huge political risks. that's why it is havso difficul. i think it will be several weeks to tell. back in july, we had a similar deal, not nearly as ambitious as this. but at the time, we had heard similar words from leaders.
then it began to unravel. this one is bigger. we will have to see it it really is better. >> that is chris morris live from brussels. the markets will open in a couple hours time. any reaction on the markets on your side? >> so far so good. when markets open two hours ago, there was a lackluster movement. night has turned the corner. investors are feeling bold enough right now after european leaders reached an agreement on a plan to reduce greece possible that -- greece's dect. greece's debt.
south korea cosby was earlier by just a fraction. was uph korean's kospi earlier register for action. we see a lot of movement in the currency markets. the euro is extending its gains and hitting a seven-week high against the dollar on the news. is khalid trading at 1.3975. -- it is currently trading at 1.3975. along with appreciation of the euro, we see strength in asian currencies today. in the oil market, we see some of a prices also moving higher as a result of eurozone leaders coming up with a potential solution for the ongoing
eurozone crisis. so far, a very positive day as we head into the midday break. turkey is struggling to cope with the aftermath of sunday's powerful earthquake in which more than 470 people died. the country's prime minister acknowledged that there have been failures in the distribution of supplies within the first 24 hours after the earthquake. thousands are facing another night without shelters in freezing temperatures. >> hopes are fading in turkey. the rescue teams continued to sift through the rubble searching for survivors. it is torturous for the waiting families who are holding on to the possibility that their loved ones are alive under the ruins of the city several days after sunday's earthquake. there have been moments which
have been cause for hope. earlier, a 27-year-old teacher was pulled from the concrete seriously injured but alive. as the hours passed, more moments like these are only thing. meanwhile, there has been criticism about the emergency response with thousands made homeless and to many too frightened to return to their homes. the knights are bitterly cold, more tense -- are better -- the cold.s are bitterly >> we cannot live in these tents within 15 days. we hope these things will get better and we can live through the winter. >> we are miserable. we have kids. conditions will worsen when it begins to snow. everyone will get sick. >> the country's prime minister
has admitted failings with the relief effort, especially in the distribution of tense. the turkish garment has admitted now that it needs international -- the turkish government has admitted now that it needs international assistance. the christie teams will continue to work through the night. all -- the rescue teams continue to work through the night. their hopes are already becoming increasingly for llorn. >> at least five people have died and a people are missing. a huge operation is currently underway. the badly affected areas are the northern areas of tuscany and liguria. o-- >> homes smashed, cars destroyed, towns filled with mud.
from the air, the extent of the damage is obvious. riverbanks washed away. ballets are choked with debris. roads and bridges -- valleys are choked with debris. roads and bridges are unusable. >> the biggest trouble is that we have no water. there's nothing we can do. all the houses are flooded with mud. >> almost 90 millimeters of rain over 3 inches fell in just a few hours on tuesday affecting most of italy from the outset of sicily. steep valleys pommel bowater it into his torrance that, some of the most before -- tunnel the entsr into a huge torran that pommel some of the most beautiful areas of the country.
>> you are watching newsday on the bbc. live from singapore and london. a $1 trillion euro package -- leaders finally agreed on a deal in brussels. as the world's population approaches 7 billion, we have a special report on how china is coping. an inquest into the death of amy winehouse shows that she died after drinking a very large quantity of alcohol. but was found dead in her home in london and had only just started drinking again after three weeks of abstinence. questor have family -- >> her family arrived at the coroner's court. they knew it would be painful to
hear the details of how their daughter came to dine. ♪ she was a star whose well- publicized troubles drew attention away from her talent. over the last three months, there had been speculation that her death was linked to problems with drugs. but the court heard that it was drink not drugs that killed her. when her body was discovered at her home, there were two large and one small empty vodka bottles nearby. she had a blood alcohol level of 350 milligrams. it could kill you. was 416.ouse's her vocal style turned her into global star. and she won five grammys and sold millions of copies. but it was always apparent that her addictions have the power to overcome her musical abilities. after working with her at the
grammy awards, addiction expert sarah graeme understands better than most of the battles that she faced. >> it is very common, unfortunately, when people put down one substance to then crossed to another substance. ♪ >> after some many weeks of speculation, today is a welcome step toward closure for her fans, but especially for her family. >> this is newsday on the bbc. >> a reminder of our top stories -- eurozone leaders have agreed on a $1 trillion euro fund to
fight to the crisis. >> let's have more reaction to the deal in brussels. the president of the european commission said that dealing with the crisis could not be a quick project. >> the package we have agreed to tonight confirms that europe will do what it takes to safeguard financial stability. i have said it before and i will say again. the technical work needed to finalize this package will be completed by sources in the coming weeks. the commission will make for their proposals for a community way out of this crisis. >> the greek prime minister praised the deal, saying it will help his country recover. >> i think that we can claim
that a new day has come for greece and let's hope that to this new day -- not only for greece, but also for europe -- that the worst is back. i would like to thank all of the greek people for this crisis as it for all the sacrifices they have made so far. and thanks to these sacrifices, we have managed to negotiate with a strong argument -- i mean, we have established our credibility -- and to get a decrease of the debt burden of this over indebtedness of our country. >> we are joined now by the coordinator of the center for economic and policy research. he joins me live from washington. thank you so much for joining us.
this three-pronged approach announced by nicolas sarkozy and angela merkel, do think they go far enough in solving the euros on debt crisis? >> not yet. what has happened over the past two years as they keep pushing this thing to the brink. you have a crisis and then they take another step in order to calm the markets. that is all they have done so far here. the have not come close to a deal on restructuring the preak debt. most importantly, -- the greek dect. -- the greek debt. most importantly, this is a restructuring problem. they have trouble because of the austerity policies they have done. >> what do you think is the
right policy direction? >> they have to do something to stabilize the markets, obviously. they have to guarantee the italian debt. but they also have to have macroeconomic policies in the year is on instead of trying to shrink their way out of this mess. -- in the eurozone instead of trying to shrink their way out of this mess. they are worried that they will due to italy with a bid to greece. if that happens to mentally with $2.60 trillion in debt, which is already beginning to happen -- a >> but if this three-pronged approach is not implemented properly, will the eurozone have a relapse? could the economic situation be worse from what it is today? >> it is very likely that there
will be further crises before it is ribaulresolved. i do not think it will lead to a break above the year of. but it does not -- break up of the bureeuro. but it does not mean that it is enough. and >> devore, a traditional way of life is -- >> deborah, a traditional way of life is at risk in the american east coast. >> we continue our series of special reports on population growth. our china correspondent has been to shenzhen to find out
how it is working. >> this booming city is where china's economic reforms first began. for over 30 years, it has been a magnet for migrants in search of factory jobs. now it is attracting a new breed of chinese worker. >> i am an entrepreneur. my father was a pilot. what i learned from him was to take a risk to start my own business. >> five years ago, he sold his house to finance a start. it began with just five people. but now of this software firm has over 200 employees. he has designed and applications that can -- that the next workers with factors. it was successful because the application was tailored to the domestic market. >> we tried to accommodate a model from the u.s..
it helps them find a better job. for the user -- >> with over 800 million users, china's mobile phone market is the largest in the world. improved technology means that even those with the cheapest and sets, such as migrant workers, can access the application. >> the best part of the service is that it allows you to compare salaries. if i am in a low paying job and i see better one, then i can take it. >> it is not always easy to find a job. in the past, i did not know if a factory was looking for a welder and the factories did not know how to find a welder. but now it is easier. >> he joins -- he enjoys the comforts of his success.
outside of work, his passion is for fine wines. is a man who believes that everything is within reach. >> -- he is a man who believes that everything is within reach. >> for millions of chinese people, they want better lives. >> after 30 years of unbroken growth, people here expect things to only get better. from a factory workers to entrepreneurs, everyone wants to benefit from the bonom. >> so how is china dealing with its growing population? we spoke with dan wang, a member of the world economic global agenda council on population and one of the world's leading experts of democratic change in china. thank you for joining us. should we be celebrating the
birth of the seven billionth baby? >> we celebrate it with mixed feelings. on the one hand, the world has added 3.5 billion people in the last 60 years. that is the same amount of argument population to grow from its very beginning to roughly 1950. so the world population bubble in the last 60 years or so. so the burden on planet earth is tremendous. so we are deeply concerned. at the same time, we have some sense of where the population grows. it comes from the rapid -- in the last century alone, the
average life span in the world doubled. this has never happened before. it is unlikely to happen again. so we are celebrating this with mixed feelings. >> china has been continuing the one-child policy. what are the implications of that? >> the one-child policy came out as an emergency policy 30 years ago to put a brake on china's rapid growth. over the last 30 years, because of the rapid economic growth and people changing their attitude toward childbearing, it has dropped to really low levels. they have stayed at the level in the last 20 years.
policy has outlived its life. china now has 70 million people aged 50 and above. and 10 years, there will have 350 million people. >> i am sorry to end it there. you have been watching newsday from the bbc in london and in singapore. the leaders of the eurozone have finished their meeting in brussels. >> funding was made possible by the freeman foundation of new york, stowe, vt., and honolulu. newman's own foundation, union
bank, and shell. ♪ >> this is kim. he is about to fill one of his favorite sensations. ♪ at shell we are developing more efficient fuels in countries like malaysia to help us get the most out of our resources. let's use it more efficiently. let's go. ♪ >> union bank has put its financial strength to work for a wide range of companies, from