[ gunfire ] as fighting continues in yemen, the warring parties exchange hundreds of prisoners, during u.n.-backed peace talks. ♪ i'm lauren taylor, this is al jazeera, live from london. also coming up, global concern over vulnerable oil fields in libya, as it's estimated ills is making $40 million a month in selling stolen oil. the u.s. could see its first interest rate rise in ten years. and returning home, the japanese who are trying to coax an abandoned nuclear fall-out

town back to life. ♪ hello, yemen's warring parties are exchanging hundreds of prisoners in a gesture of goodwill, during under-backed peace talks. sources are told al jazeera, 375 houthi prisoners are being swapped for more than 250 pro-government fighters. it happened during a seven-day truce which is coming to place while peace talks continue in switzerland. there are reports of fighting in yemen's third largest city, ta'izz, suggesting both sides have failed to honor the ceasefire. zana how are those talks progressing? >> reporter: well, those talks are progressing slowly. at the end of the day, this is going to be a very difficult negotiating process, because both sides, the warring sides,

really, there is a very big gap between them. the prisoner swap is a positive development. it involves hundreds of fighters. so that prisoner swap, however, is not what the yemeni government delegation has been demanding from the houthi rebels and their allies. what they have been demanding is for the houthi rebels and their allies to release high-ranking officials including the defense minister. like you mentioned, incidents of violence on the ground, violations of the ceasefire. what we understand is that eight people were killed, 19 others injured, civilians. that happened in the province of ta'izz, which has been a battleground for several months now, and a humanitarian crisis, really in that area, so the ceasefire, it's fragile, but at the end of the day, neither side has if i recally declared the ceasefire dade. and i put that question to the

wrem yemeni ambassador to the united nations. >> if we are also declaring all of these violations of the ceasefire, but we will stick to the ceasefire. we think this is the only option for us to go down the path of peace and -- and -- and -- and achieve peaceful resolution to the conflict in yemen. >> what are the biggest strumabling blocks? >> reporter: well, the houthi delegation -- this is what we understand -- is insisting to discuss a ceasefire first. a permanent ceasefire. for the yemeni government delegation that is unacceptable, they want confidence-building measures first, like lifting the siege of population centers and the release of prisoners, like i mentioned earlier. they believe the houthi rebels are pushing for a ceasefire to consolidate their positions on the ground, resupply their forces, really try to take advantage of the situation on the ground. why are these talks difficult?

it's very simple. neither side can dictate their own terms for a political settlement. because neither side holds the upper hand on the battleground. the united nations exerting a lot of pressure. we also understand from the delegates that the international community exerting a lot of pressure on both sides. the international community is worried about the vacuum and the chaos, and groups like isil and al-qaeda are exploiting the situation in yemen. but the very fact that humanitarian aid has started to reach people in need. in that is one of the reasons why both delegates are sitting teth, because of the pressure they are facing from the yemeni people who want their situation to improve, and ease the suffering. this is going to be a difficult process, but like i mentioned, there seems to be a will from both sides. this is the first time they are sitting together in one room, and they haven't left the room

since the conflict began nine months ago. >> thank you very much indeed for that live update on those talks. ♪ islamic state of iraq and the levant has launched a series of attacks in anbar province, a key battle grown between the group and the iraqi army. the attacks happened in villages in this the north of ramadi where soldiers are based. 23 iraq eye soldiers and tribal fighters were killed and 35 others were injured. ash carter is in iraq, it's part of his mission to gather more regional support for the u.s.-lead coalition against isil. earlier this month, the u.s. announced plans to send elite forces to iraq to carry out raids against the group. the u.s. is said to be keeping a closer eye on oil assets in libya and elsewhere. washington and its allies want to make sure that more oil

fields don't sell into the group's hands. the u.s.-lead coalition and russia are both targeting oil structures with air strikes. and the government in the kurdish autonomous region in northern iraq is a cracking down on the group. >> reporter: this is a road that has been used to transport illegal oil for isil. the armed group had been able to sneak its trucks in among other legitimate oil transporters. thousands of barrels of crude oil a day can pass through up to the city of kirkuk. >> translator: tankers carrying isil oil sneak in among those legitimate trucks carrying oil. isil is now forced to send their oil to mosul. >> reporter: crude oil is mayor source of money for the armed

group. in the past it has used businessmen to sell its oil nationally. the provincial government formed a committee to investigate. >> translator: about a year ago we learned that huge amounts of oil were being smuggled in. later we found that influential figures were involved. but the investigation ended and the government didn't release the outcomes to the public. >> reporter: isil also used a ro road. but the troops have made that harder, which means not only is it harder for isil to get oil revenue, but it's more difficult for the armed group to transport weapons and fighters too. up to 26 qatari nations have been kidnapped while on a

hunting mission in iraq. they were in a desert area. the ministry says the group had an official permit from the iraqi government, and it is working to secure its release. two food agencies are started getting food to syrian city of homs. aid was unable to get through in the past because syrian forces besieged the city. this changed last yeek when the u.n. brokered a rare rebel truce. 40 government soldiers have been killed in an attack by al-nusra front and other allied groups. the attack is said to have happened in southern aleppo. elsewhere a russian air strike on a popular market is believed to have killed at least 23 people. the u.s. and russia say they are reaching some common ground on syria. john kerry said the two sides

view the future of syria in the same way. the comments came ahead of a meeting in new york own friday. the main sticking point has been the future role of president bashar al-assad. just a few hour's time the u.s. federal reserve is expected to raise interest rates for the first time in a decade. a move that many fear could have wide-spread impacts on global markets. interest rates have hovered around 0 to a quarter of a percent. low interest rating make borrowing money more attractive and can help stimulate growth. but with signs of the economy recovering, the federal reserve chair has given strong indications a rake -- rate-hike could happen. it raises fears that a hike could trigger market disrup shun. just when china's economy is

slowing. we have this report from rob mcbride from hong kong about the potential effects there. >> reporter: in the city of notoriously high property prices, an interest rake hike has viewed with intrepidation. home prices have seen a three-fold rise in the last few years. now here and across the border in mainland china, they have seen the market cool, an interest rate rise could see things go into reverse. that could be good news for some of the many people here who still desperately want to own their own home. it's one of the factors that needs into the general level of social discontent. but you have to balance that with the increased distress that will be felt by all of those people who have managed to get on to the property ladder only

now to face higher mortgage payments. back in 2008, at the start of the global economic crisis, world banks decided to introduce emergency measures. but the question is, is the emergency now over? in the united states the feeling is that, yes, things are under better control than they were at least a few years ago. out put is higher now than it was before the recession, and unemployment is on the decline too. here in the u.k. the situation is somewhat similar, the feeling is that the worst is now over. but the bank of england is more reluctant here to introduce higher interest rates. for now at least. the deputy governor said she wants to make sure wages are stabilized and other factors were under control also. the situation in europe though, is somewhat different. on thursday the european central

bank is expected to meet to decide what to do neck. they are expected to reduce interest rates even further, and decide to pump more money into some of europe's struggling economies. the euro zone is still feeling the after shocks of the global financial crisis, especially the recession seen in the likes of portugal, spain, and more recently greece. and the emerging economies rely heavily on borrowing dollars could be negatively effected by raising u.s. interest rates. some people some change is necessary to reflect the changes in the likes of the united states and the u.k. there is the belief that if interest rates don't move at all, that could spark another financial disaster, and that's something the world just doesn't want. still ahead, we'll speak to the children determined to carry on with their education despite the legacy of fear from a

taliban attack. plus the growing appetite for india's fledgling art market.

>> we have people who are desperately in need of jobs. >> hear from citizens caught in the crossfire... >> we want freedom, freedom! >>...and what america can learn from chicago's ongoing gun violence. ♪ hello, again, a reminder of the top stories here on al jazeera, hundreds of prisoners are being released in yemen as part of a deal between government forces and houthi rebels. 23 iraqi soldiers and tribal fighters have been killed after isil launched a series of attacks in anbar province nchlts the u.s. federal reserve is expected to raise interest rates for the first time in a decade, in a move that could impact

global markets. u.s. republican presidential hopefuls have again put isil in their sites. and they turned on donald trump over his highly chris sited plan to ban muslims from the u.s. >> this is the final republican debate before the election year begins. >> reporter: jeb bush decided to attack donald trump. >> you are never going to president of the united states -- >> let's see i'm at 43, and you are at 2, so, so far i'm doing better. >> doesn't matter. >> reporter: isil dominates the conversation. >> you would carpet bomb where isil is, not a city, but the location of the troops. you use air power directed, but the object isn't to level a city, the object is to kill the isis terrorists.

>> reporter: marco rubio said this. >> we must lead. we are the most powerful nation in the world. we need to begin to act like it again. >> reporter: this was a significant and substantial debate, the candidates all touched on the same themes. but all seem to have different ideas on the best way forward. they were determined, though, to suggest that republicans would take a much different approach from barack obama and the democratic white house. after the debate ben sarson rejected the idea he had a bad night. >> there are some commentators if i am walking down the street and breathing they are going to say i'm struggling. >> i'm leading by a lot. and i have learned to greatly respect a lot of the people in the republican party. we have a great relationship so there won't be any necessity for that. >> reporter: in just over 40 days the voters in iowa will

start the process that will take one of the candidates closer to the white house. alan fisher, al jazeera. thousands of people have marched in cities across south africa, calling on the president to leave office. the demonstrations follow a scandal inside the government's finance ministry. tania page has more. >> reporter: the beat of the zuma must fall march in johannesberg. >> he is too associated with corruption, with corrupt individuals. the actions that he took last week in sacking a respected finance minister are considered to be very, very reckless, have done great damage to our economy. >> reporter: the president shocked the nation and the markets when hefired his finance minister last week, replacing him with an unknown mp who held office for only three days. on sunday he was moved to

another ministry, in favor of yet another finance minister. the financial instability prompted moody to downgrade south africa's credit score. this is a statement that it's a global icon style of leadership, and intend to [ inaudible ] this country needs. like most south africans this man supports the anc, the party of nelson mandela is a political powerhouse, but he feels it has lost its way. >> it stands for the [ inaudible ] of our people, it stands for bettering -- it stands for the youth development. it stands for a better society. >> reporter: in the face of unprecedented protests against the president the anc leadership has voiced its support for zuma,

but many say he has been weakened by the fiasco of changing finance ministers as one group described as if they were underwear. the economy ways on this man's mind. he didn't march, because he didn't think it would work. but he is worried he won't get a job. >> ever since he stepped up as president, the economy has fallen on a low. there hasn't been a lot of job creation, and a lot of houses that were promised haven't been built. >> reporter: it's reconciliation day in south africa, it's supposed to foster national unity. the president does have the support of many other south africans, and more significantly, he also enjoys the support of his party's leadership. it has been one year since taliban fighters broke into a pakistani military-run school killing 140 people, most were

children. the attack lead to the creation of military courts and the reberduction of the death penalty >> reporter: it's another day of lessons for these students at the army public school. but look around and everything looks different. there have been extensive renovations including the addition of a brand new auditorium, perhaps to help erase the memory of what happened here a year ago. on december 16th several taliban fighters broke into this school through a back door. they opened fire indiscriminately killing 134 students and 6 teachers. the attack was one of the worst in pakistan's recent history. >> translator: it was heart breaking that my brother and his friends were killed. we're determined not to lose hope. i wanted to come back to school

the day after the attack. >> reporter: parents send -- patients wouldn't send their children back to school for months, but it appears these people are determined to carry on with their education. and that's the kind of spirit that many here say got them through the traumatic experience. [ inaudible ] have brn set up along with fortified walls, and military guards keep a close watch. the attack forced the government to set up military courts to quickly try people suspected of carrying out attacks like these. but human rights groups worry there is not enough oversight over the measures. >> the third article is about right to life, everybody has a right to life, whether he's a

cup -- culprit or victim or something else. >> reporter: this man says there is better cooperation at all levels now. >> the point about this [ inaudible ] that the public and the government in all walks of life, i think there was [ inaudible ] that now we have to fight back, and for this fighting back, the federal government along with the [ inaudible ]. >> reporter: the government has faced criticism over its decision to bring back the death penalty, but many here say it is a necessary deterrence against attacks like the one against this school. kamal hyder, al jazeera. japan's highest court has ruled on marriage laws that activists say were sexist and outdated.

the requirement that women should wait six months after a divorce before remarrying, was successive and should be reduced. the law dated back before dna testing allowed identification of a child's father. people are starting to slowly move back to a town near the fush shee ma power plant. >> reporter: for more than four years nature has been slowly reclaiming this area. its residents were prevented from returning while decontamination work was done. but in september that order was lifted, and about 400, mainly elderly people have returned. >> translator: i came back because i want to help the

reconstruction effort. >> reporter: the chief monk of an 830-year-old buddhist temple has also decided to return out of a sense of duty. but he has done so on his own, seeing his wife and two children only at weekends. >> translator: the village is kwie etd and so is my home. it feels busy during the day with all of the work trucks. but what we really need is the smile and laughter of children. >> reporter: even this man isn't sure whether this is the right place to bring up his own children. there's a huge amount of energy, of money being poured into this recovery process. it's very much a test of japan's ability to reclaim at least one town from the grips of the fukushima disaster, but they need to convince people who spent years away that it is

worth coming back. it's a message not helped by the 600,000 bags of decontamination waste sitting on the edge of town. >> translator: it has been four years and eight months. the people who evacuated already built the foundation of their lives outside. they will need to reorganize their lives before returning, and that will take time. >> reporter: four years ago we met a champion fisherman. now an $11 million project is underway to expand the salmon fishery. where for the first time since the 2011 earthquake they have been able to harvest the eggs of the returns fish. >> translator: hatching the eggs has been our biggest goal. i'm so happy that this coming spring we're going to be able to release them.

>> reporter: the work at the river is being replicated around the town. but this is all a big gamble, a long-term bet on coaxing an abandoned town back to life. harry fawcett, al jazeera, japan. china's president has called for companies to be able to set their own rules when it comes to online communication. the chinese leader says his country has the right to govern the internet any way it sees fit. >> translator: we should respect each other's rights to choose our own internet development paths and internet governance models, internet public policies, and the equal right to

participate in international activities. oil painting by an indian artist has sold for $4.4 million at christy's auction house in mumbai. it fetched a world record sum for a work by the artist, and for its artistic category. our correspondent has more on the rising popularity of indian art. >> reporter: the record-breaking auction of the indian artist's work has drawn attention to the popularity of indian, art once again. but it's not just international collectors who are driving up demand and prices. they say they are putting it down to a new diverse pool of art enthusiasts. >> the unavailable of the work

is playing a role, and also the younger generation that is wanting to collect art. there is an interest to collect as of now what they can collect, maybe it's not available later. so all of these things play a role, and also a rising international demand. >> reporter: people in the art business say that it's important to remember that indian artists have been well-known and sought after for generations, particularly in the international market, but when it comes to art as home as the affluent middle class grows, art is becoming a more important investment. but nonetheless across the board, any record-breaking sale is good news. china is hoping to unlock the secrets of the universe by launching a rocket into orbit. it will look for elements hope to give a better understanding of dark matter. the dark matter particle

explorer is said to give scientists a view they have never had before. and you can always keep up to date with all of the stories we're covering, by clicking on aljazeera.com. aljazeera.com. this is one of the biggest steps towards a rewrite of our tax code we have made in many years. >> avoiding a shutdown, lawmakers are working to finalize a deal to keep the government up and running. global markets are bracing for the first possible federal reserve interest rate hike in nearly a decade. while baltimore waits for a jury to decide the faith of the first officer charged in this the death of freddy gray. all nine of the people here