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"journal." here are the headlines this hour. deadline to use arabia -- a deadline to surrender. exxon mobil finance agreement to search for new oil fields in the arctic. at the world athletic championships in south korea, a first gold for germany. >> the clock is now ticking for troops loyal to muammar gaddafi. rebel forces to now control most of the country have set a saturday deadline for gaddafi soldiers to surrender. rebels are moving closer to gaddafi's hometown. they say if no surrender comes, it will be taken by a massive military attack.

>> underwrote from tripoli to gaddafi's hometown, the rebels have been preparing for battle. talks about a peaceful surrender of the city had failed to yield results. the rebels have now issued an ultimatum. >> by saturday, if there are no peaceful indications for implementing the handover, we will decide the matter by force of arms. we do not wish to do so. but we cannot wait longer. >> nato continues to support the rebels. nato says gaddafi's men are a threat to the civilian population. >> commission will continue in full compliance with the united nations mandate for as long as it is needed. it looks as if we are nearly there, they are not there yet. >> gaddafi has still not yet been cited.

many libyans are angry that members of this family were able to flee the country. his wife, a daughter, and two sons have made across the border to algeria. >> we will consider that as an aggression act. >> many libyans were preparing for the feast marking the end of ramadan. there were crowds outside as people tried to withdraw cash. for many, it will be yet another reason to celebrate. >> with the rebel forces, increasing the pressure on the loyalists, we asked our correspondent what the chances are that we will see a surrender. >> before that, the deputy prime minister has just said that the transitional government has a

very good idea of the whereabouts of colonel gaddafi. they're confident that they will capture. it could preempt any deadline. there is no doubt that the remaining loyalist would surrender. if that does not happen, it is anyone's guess. you would have expected him to collapse a long time ago. they do fight on. there is some suggestion that they think that communications are being cut and they are not aware about the rest of the country. we do not know. we cannot get into this place. we cannot talk to them. all this is speculation. >> briefly, let me ask you about the situation with algeria. algeria giving shelter to part of gaddafi's family. all this does not bode well for

relations between the two countries, does it? >> no. algeria has not recognized the national transitional council. it had very close relations with gaddafi. the rebel leaders have couched their criticism in fairly soft words today. the deputy prime minister has called for cooperation from the algerians and returning people for robbing and oppressing the libyan people for 42 years. it is an issue. it is not with the new government wants. >> martin fletcher, reporting from tripoli. thank you very much. the white house has slapped new sanctions on syria and has banned americans from doing business with the president and

foreign minister. a washington has frozen the assets of the three men. in syria, there are more reports of troops firing on protesters who are against the regime. >> they are singing for a new syria. ramadan and the days of fasting are over. the people here are still hungry for freedom. this internet footage was reportedly shot and a central syrian city. protesters across the country feel emboldened by events in libya. as usual, the government responded with violence. even on this important religious holiday, troops fired on crowds in the south and the central city. several peaceful protesters were killed and several others wounded. the president made his annual

public appearance. he visited the damascus mosque named after his father. he ruled for three decades. another reminder for the demonstrators that it is time to end the family's grip on power. >> a true at megadeal if they can drill through the eyes. exxon mobile has won a highly private -- coveted prize by reaching an agreement to explore for oil in a russian sector of the arctic ocean. the agreement will require investments of up to 350 billion euros. in the hope of discovering vast, new oil fields, exxon be out rival bp and shell. >> american and russian engineers will still to join forces to drill for oil in the arctic. huge reserves are thought to be

hidden under the ice, especially in russian territory. but russia lacks the technology for the sea drilling. that will come from exxon mobile. >> today's events will be welcomed by the world market because new horizons are opening. >> i appreciate the strong expression of support from the russian federation government. to enter into this alliance with exxon mobil. >> the two companies will invest around 2.2 billion euros, exploring pre arctic oil and gas fields. the new partnership will allow russia to export the oil fields in the gulf of mexico and texas. >> the economic center in europe fell more than expected. the european central bank will lower inflation forecast and seized raising interest rates. a monthly european commission

survey showed economic sentiment in the 17 countries using the euro fell to a measure of 98.3 in august from a revised 103 points in july. optimism declining in all sectors. the euro zone will need strong economic growth to put an end to the sovereign debt crisis. economists are expecting the euros on the economy to grow by only a 10th of one%. in an effort to get its debt situation under control, italy held a bond auction tuesday to raise fresh capital. the sale attracted few buyers. traders said the european central bank quickly stepped into the secondary market in order to prevent interest yields from rising to unsustainable levels. >> on the milan stock exchange, it is lower-than-expected. rome is trying hard to read how

the market confidence. the prime minister's government has put forward a 45 billion euros austerity plan, but it is already being watered-down. a tax for high earners has been scrapped. >> unfortunately, there is a global economic crisis going on. we have to compensate for that somehow. " the government wants the measures through parliament by the end of september. and for now, all markets can do is wait and see. >> with great state coffers empty, but art -- they are aiming at tax dodgers. the names will appear on the internet within days. the campaign will initially

target those owing more than 150,000 euros in back taxes. other shows state -- european shares were weighed down tuesday by -89 data from europe and the united states. some shares still manage to shine. >> traders in frankfurt remain nervous, but they can react to good corporate news when it does come in. spoke optimistically about the prospects of his company. higher growth, higher profits for this year and continuous growth in the next years. the other shares, most of them sliding down because of fear of the recession getting bigger again. dow data from the u.s. consumer

in the worst move since april 2009. not so good data from the euro zone, both the consumer climate and the business confidence declining. >> we will stay for a closer look at tuesday's numbers. the benchmark closed at 5643 points. in new york, the dow jones industrial average bounced in late trading after the federal reserve minutes from its most recent meeting indicated that some members favor more stimulus. it closed at bite -- at on currency markets, the euro is trading at $1.44. india's blockbuster economic growth is slowing down slightly. second quarter gdp figures came in at 7.8%.

that is less than the same period last year. with inflation hovering at around 9%, the indian central bank is expected to cool growth even further. other countries undergoing rapid development, such as brazil, are also seeing their economic growth lose momentum as well. go out and spend some money, boost the economy. >> thank you very much. japan's parliament has voted in a new prime minister. he has pledged to revive the country's economy and to pull it out of what he has called a national crisis. he faces a difficult challenge. his party has been wracked by internal dissent. he has said that he will work hard to win back public confidence and the government. he is the sixth prime minister

in five years. south african police have clashed with supporters of the controversial u.s. league leader. it happened in johannesburg. they were protesting against an upcoming party disciplinary hearing. officials could be expelled after they called for the overthrow of the government of botswana. >> protesters chanted as they burnt t-shirts bearing the image of the south african president. police used water cannons to disperse them. the leadership said it would not be intimidated. >> there is no -- what happens outside. whatever brought the crowd here.

>> this is the second time he will face a disciplinary committee. last year, and he was reprimanded. the hearing was prompted by his call for participation in regime change in botswana. he has also worried investors by his call for the nationalization of south africans mining sector. he has been accused of inciting racial hatred by calling for the seizure of land from why farmers. -- white farmers. >> hurricane irene has left a trail of devastation. major flooding in new jersey and vermont. 600,000 homes in the u.s. are still without power. hurricane irene kilduff least 41 people in 11 states. -- killed at least 41 people in 11 states.

>> german athletes have had a successful day, winning three medals, in gold, silver, and a bronze. >> robert was in pain when he entered the ring. he had hurt his knee. one wrong move and a tendon could snap. he threw an impressive 68.9 meters. [cheering] he served as a soldier in the german army. >> i would like to dedicate my gold medal to a comrade who fell in afghanistan in may. i know he is watching. >> six minutes later, there with another metal for germany.

[cheering] she was trumped by brazil. she captured the third german model. in the final 800-meter event, she cocked her fastest personal time. the gold went to russia. >> where did they come from? >> hard work. >> we will be right back with our report on gold. do not go away.

>> since ancient times, gold has had special cigna begins in society.

it was a valuable and highly saw after precious metal. it was used to make the jewelry, ornaments, and coins. old standards have been the most common basis for monetary policy throughout history. we have paper currency, gold has not lost its attraction. many countries still hold a huge gold reserves to help underpin the currency. in times of economic turmoil, investors say the precious metal as a safe haven. india is the biggest consumer of gold. >> brides in india are often decked out in gold jewelry. if their families can afford it. it is not only beautiful, it is considered a secure assets. a woman's wealth remains within her grass. -- grasp. investors and speculators around the world have been turning to gold as a safe alternative to

stocks and bonds. financial crises and debt crises have made many very nervous. strong demand has caused the price of gold to soar. it is almost triple since the global crisis began. in recent weeks, the price of announced reached close to $200 -- $2,000. gold is their resource that has industrial uses and production costs are rising. people in germany are squirreling away their savings in gold, too. but unlike financial assets, gold does not yield any interest. it just sits there in a bank vault or under the mattress. many hope the price will just keep on rising. there is no guarantee that it will. in fact, some analysts say we are witnessing a gold bubble that will eventually burst. they do not know when, of course, but it probably will not

happen as long as investors keep faith than gold. if they stop, who knows what will happen? >> the fascination with gold is as strong as ever. however, production has not grown in relation to the world economy. today's gold mining output is declining. it is becoming more difficult to find new reserves and mining is carried out in difficult and dangerous conditions. we visit a mine on the indonesian island. people there are taking great risk in their search for gold. >> 30 meters below the surface, there is hardly any room to move. and hardly any air to breathe. but they do not seem to care. they just keep hammering and chiseling away. they are looking for a barrel spot -- a very special kind of rock. >> this is the soul of the rock,

where it glitters. it is like a light. if the rock has a soul, there is cold, too. they always go together. >> this narrow shaft is not properly secured. just a few sticks of bamboo lining the entrance. the two men left their villages 1,500 kilometers away breyer's ago. they only get to see their wives and children once a year. >> my dream is to build a house, but i could never afford it. this is my last chance. at home, there was only just enough money to buy a little food. that is all i could afford. >> the gold rush in the southwest of the island has attracted prospectors from all over the country. more than a thousand, some say. they have set up a small tent city.

he was one of the first journalist to report on the gold frenzy. he is not a welcome visitor. the bold -- they did not want to be in the spotlight. their minds are illegal. -- mines are legal. >> the authorities have often tried to close the mines. but they do not stand a chance. >> dozens of uncoordinated and unsecured tunnels wind to the mountains and could collapse at any moment. france -- friends have been killed. the official number-year it is 40. but the true figure is probably in the hundreds. no one really knows. dallas are knocked recorded -- gas -- deaths are not recorded.

>> of course i am frightened. but i do not have at choice. this is the only job i can do. bucks villages nearby -- >> villages nearby provide services for the gold diggers. he is one of the few people we approached it would let us see what he actually does. his job is to separate the gold from me -- the ore. >> want yield just 2 grams of gold encased in a tiny pellet. >> it does not matter if i approve of all this are not. perhaps it would be better if there were not any gold year, but it is here. the river is already poisoned, it would not make any difference

if i were the only one not to be involved in the gold business. >> the neighboring island is marketed as a tropical paradise, an environmental disaster is unfolding. but the lure of gold is irresistible. he found 5 kilograms of gold in two months. he invested the proceeds into this plant. each takes about 200 sacks of gold mercury. the sludge is built fort days to separate out the gold. he charges 400 euros for the service. >> i decided to look to the future. if i did carried on digging, i could have been robbed or not found any more gold. anything can happen. it makes sense to invest profits wisely.

>> his clients come in person to pick up their gold and to find out how much it ways. this man's yield is just a few grams. the quality of his gold does not forget it. it is only worth about 800 euros. he has not hit the jackpot this time. the gold merchants usually fare better. at the same time, the soaring price of gold poses a problem for them. at least, that is what he says. if he sells today, and the price is even higher tomorrow, he has made a loss. the diggers have grown wise to the tricks of the trade. >> they also note -- when it rises, they send each other text messages. we cannot place any tricks on them. even though with the least

amount of brains know what the prices. >> back at camp, he tells us he was already made a lot of money and bought a plot of land back, in his village. he is not ready to give up prospecting and go back to his family. >> i just hope my luck does not run out. who knows? perhaps i will still win the jackpot. >> some have become rich, that others have lost their lives. the great challenge is knowing when to stop before it is too late. >> the search for gold, that has been a report today. thank you for watching.