>> welcome to the "journal" on dw. >> here's a look at what is coming up in the next half hour -- the german chancellor heaps praise on italy's reforms, but differences remain over euro bailout money. and calls for a safe zone for refugees as thousands continue to flee violence. and the republicans officially choose mitt romney as their candidate for the right house, making big economic promises -- candidate for the white house, making big economic promises.

impressive and full of hope -- that is how angela merkel described italy's reform efforts. the german chancellor even went as far as to say that she is personally convinced that the italian government's austerity drive will bear fruit, but then she went on to dash the hopes of italy's prime minister on at least one important front -- she said no to handing them a basting -- a banking licence to help boost firepower. >> german chancellor angela merkel and italian prime minister mario monti had a wide- ranging agenda for their meeting. in a press conference afterward, the two stressed their points of agreement. merkel praised monti's leadership and said that italy's reforms were improving europe's competitiveness. >> italy's comprehensive budget tightening and reform agenda is impressive. it is moving forward, step-by- step, and being implemented.

>> the two differ over the role of the european stability mechanism. merkel said the fund should not be allowed to borrow directly from the european central bank, but that is an option that monti supports, and he praised the virtue of flexibility. >> a few things can be achieved under certain conditions, but perhaps these can be done in the future if the conditions change -- a few things cannot be achieved under certain conditions. >> for now, the two appeared friendly. a show of unity was the message for the day with specifics left for the future. >> dw's political correspondent has been following these developments and joins us now from our parliamentary studios. thanks for being with us. there was a definite show of unity, but our land and wrong closer to finding a common strategy when it comes to

solving the eurozone debt crisis -- are berlin and rome closer to finding a common strategy? >> italy is buried under a mountain of debt. it is struggling to keep its head above water, as it were. germany is flush in relative terms, looking financially very strong compared to italy. italy is having to pay huge premiums in the bond markets in order to borrow money. germany is having money practically thrown at it by investors. again, these countries have very different positions. it is not surprising italy would want the european central bank to open itself up to lend more willingly. germany trying to contain itself, trying to limit its exposure to any further losses. >> you were at the press conference with merkel and monti. did chancellor merkel give any sign she is more inclined to let the ecb play a bigger role in

the eurozone debt crisis? >> germany and italy have very different views on what role the european central bank should be playing in this crisis. italy, like other debt-strapped countries, is looking to the european central bank to really open up its coffers and have unlimited firepower, as it were. chancellor merkel wants the european central bank to keep itself limited to its role of fighting inflation and playing the banker with only limited terms. >> thank you very much for joining us. as we just heard, what role the ecb should play in tackling the debt crisis remains a divisive issue in europe. many say the bank is exceeding its authority to -- by intervening in bond markets to support troubled eurozone countries. >> critics say the intervention endangers the bureau. ecb president mario draghi says the bank will do whatever is necessary to keep inflation in

check, but he added that in the long term, eurozone countries will need to shoulder some responsibility to keep the common currency stable. >> should the ecb help debt- ridden countries like italy, spain, and greece by buying up their bonds? the ecb head is feeding speculation that it could be moving in this direction. in an op-ed in a german newspaper, draghi said the bank might have to resort to exceptional measures. his comments countered criticism from the bankhead who said this week, "we should not underestimate the danger that central financing can be as addictive as a drug." germany fears a return of a bond-buying program would not only risk a return of inflation but also decrease the pressure on debtor countries to reform. >> eurozone countries were also the topic of conversation for traders in frankfurt on wednesday.

our market correspondent has more from the frankfurt stock exchange. >> italy is playing a big role on the sovereign debt market this week. this wednesday again, the italian ministry of finance auctioned off new government bills, and these carried a lower interest rate than previous editions of such bills. on the stock market this wednesday, some turnaround happened in afternoon trading thanks to positive growth data from the united states, but the overall move on the trading floor remained hesitant. also because the economics resurgence into -- the economic resurgence to to -- institutes. >> across the atlantic, the dow jones is currently going up also just a tad -- 13,118, the number

there. the euro trading for $1.2527. >> in a rare television interview, the syrian president has brushed off a proposal to set up safe zones along his country's borders for refugees. >> he says government troops are making progress in their fight against what he calls terrorists. it has been a year-and-a-half since demonstrations interrupted -- erupted against assad's rule. >> the united nations says at least 18,000 people have been killed so far. >> assad's message was clear -- he is in control and he is not going anywhere. he appeared on a tv station in a defiant mood, dismissing suggestions by turkey the safe zones for refugees should be set up inside syria. >> i think talk of a buffer zone is not realistic, even for countries that are hostile to syria.

despite the many mistakes that have been made, there is still a strong bond between this government and its people. >> but a growing number of syrians are fleeing the country. more than 80,000 are already in turkey in refugee camps set up alongside the border. the turkish foreign minister says his country will not be able to cope much longer. >> we have increased the number of refugee camps. we have set up new camps for refugees, but no matter how many camps get billed, so long as the air strikes continued and the shelling of cities from a distance like in bosnia, the more people are likely to flee and seek refuge in turkey. >> some of the syrian cities left behind are practically ghost towns. this was one of the centers of the uprising in aleppo province, but after shelling and air strikes by the government, most of the town's 20,000 residents have fled.

>> iran is currently hosting the summit of non-aligned nations and is trying to use the event to exert its influence on the global stage. >> the united nations secretary- general has arrived in tehran, despite pressure from israel and the united states not to attend. he told reporters he would be using his trip to address the situation in syria with iranian leaders, saying they have a crucial regional role to play in the conflict. well, it is official -- the republican party in the united states has nominated mitt romney as their candidate for president. >> there was not much doubt that he was the republican pick for the presidential race in november, and polls show it will be a close race. >> an overwhelming number of americans think their economy is on the wrong track, but the republicans think that romney can do something about that. [applause] >> republicans cheered as their candidate formally received the party nomination.

the convention is a show of unity behind mitt romney after the bruising primary fight. the 65-year-old multimillionaire businessman and former governor and the party now have their sights set on unseating the white house incumbent in november. the candidate's wife gave a speech in a bid to soften his image. many consider him out of touch. his wife highlighted his qualities as a family man. >> this is the man america needs. this is the man who will wake up every day with the determination to solve the problems that others say cannot be solved, to fix what others say is beyond repair. this is the man who will work harder than anyone so that we can work a little less hard. this man will not fail. >> delegates also gave their backing to a conservative platform. republicans renewed their commitment to strong national defense and dismissed attempts to restrict gun ownership.

party has embraced a staunch anti-abortion stance. >> i thank god that america still has one party that reaches out their hands in love to lift up all of god's children, born and unborn. >> president obama's vision of america is a divided one, often pitting us against each other based on income level, gender, and social status. his policies have failed us. we are not better off than we were four years ago. >> mitt romney is due to accept the nomination with a highly awaited speech on thursday evening. >> staying in the u.s., hurricane is it is dumping a ton of rain along the louisiana coast line, causing some levees to overflow -- hurricane isaac is dumping a ton of grain. roads are impassable in some parts. >> total could reach -- the

damage total could reach $2.5 billion. it is the first hurricane to make landfall in the united states this season, and it is still causing havoc. >> hurricane isaac slammed into louisiana coast with winds up to 130 kilometers an hour. the storm has weakened since making landfall but is still wreaking havoc. 500,000 homes are without power, and storm surges have breached flood defenses in some cases. authorities have declared states of emergency in louisiana and neighboring mississippi. they have also issued evacuation orders in a low-lying areas. the eye of the storm is close to new orleans. when heavy rain are already causing damage in the city. weather forecasters warned that could last up to 24 hours, raising the risk of major flooding. many new orleans homes have already lost power.

it is exactly seven years since hurricane katrina devastated the same area. isaac is a much weaker storm system, and many local residents seem relaxed. >> my sister ran away, but my brother and my mother and i are staying put. around my neighborhood, people are considering it time to have a party. >> we have been through it before, so we are not really strict at this time. obviously, hopefully, the levees are a lot better and will hold up more. we are well prepared. >> after katrina, flood defenses were strengthened. ahead of is it, engineers closed the floodgates -- ahead of isaac. >> yulia tymoshenko is staying behind bars. a court has rejected her appeal. >> her supporters say the

charges against the 51-year-old are politically motivated, a view supported by the european union. the venice film festival has kicked off, marking the start to the next season of our house cinema. the festival is the oldest of its kind in the world -- 18 films are vying for the top prize. the golden lion. it will be handed out on september 8. dozens of hollywood stars were there for the opening screening of "the reluctant fundamentalist, according to a political thriller dealing with extremism in the clash of east and west in post-9/11 america and pakistan -- "the reluctant fundamentalist," political thriller. >> we have a lot more coming up after a short break. >> stick around. we will be right back.

>> welcome back. german relations with china will be in the spotlight in the coming days. chancellor merkel is on her way to the country for a two-day visit. she is traveling a large delegation of more the 100 people. >> the chancellor says germany's relationship with china is special and extends far beyond just economic ties. many topics will be on the agenda ranging from security issues in syria and iran to trade and, of course, the eurozone debt crisis. >> chancellor merkel is taking nine of her ministers with her to china for the first bilateral cabinet talks being held in beijing, following last year's debut in berlin.

china is set to choose new leaders soon, but the bilateral cabinet consultations are to continue. merkel's allies say the exchange shows how much china values its partnership with germany. >> the chancellor has scored a lot of points in china in the past few years. her relationship with the prime minister is excellent, as it is with the president, but our contacts have to go further, since there will be a new leadership. china remains important to us. >> topics on the agenda include how china could help stabilize the euro and trading between beijing and the eu. china's domestic economy is cooling, but germany remains its biggest biggest -- its biggest business partner in europe. exports in both directions have flourished in spite of the crises in recent years. figures for the first half of 2012 show the trend continuing. chancellor merkel is also expected to bring up the touchy subjects of human rights and

free speech. german reporters in china say they are subject to growing restrictions. merkel's advisers say the right tactics are key. >> the chancellor addresses problems directly by openly criticizing issues when necessary and where there is room to maneuver, but she does not believe in banging her head against the wall. >> germany's opposition say rights issues are being pushed aside for economic interests. >> we believe people live better in countries that have the rule of law. we believe arbitrary rules should not be the order of the day. that has to be the chancellor's message, no matter how big or economically powerful a country is. >> the fact that merkel is becoming something of a regular visitor to china underscores how important the country has become for germany and the eu. >> german exports helped keep this country's economic engine going, and it is no secret that german products and technology are desired all over the world. >> aside from china, germany has

also set its sights on increasing exports to other emerging economies. >> german companies are increasingly looking to the so- called bric countries to sell their project -- products -- brazil, russia, india, and china have economies with large populations and high growth rates. their share of the german export market has increased sevenfold over the last 15 years. german exports to these countries jumped from 7.5 billion euros to over 1 points 22 billion euros today. -- 1.22 billion euros today. china is leading the pack of germany's new trading partners. it has become a popular destination for german industrial technology and cars. and germans have gotten a taste for chinese textiles and electronics.

>> solar power is a potential source bought between germany and china. >> germany is one of the solar pioneers, but in the past few years, the competition in the sector has grown fierce in china. >> some european countries complained of too much price competition and dumping strategy to make sure that the chinese solar industry stays on top. >> it is another trade dispute between two economic giants -- chinese solar companies have reacted angrily to the allegations of price dumping coming from the european union. they have gone on a media offensive to get their message across. they say the accusations are baseless and damaging to their business. >> our company is publicly traded in the u.s. our accounts are open to the public. our raw materials purchasing, employment, and property acquisition records are transparent. we have never received subsidies, as european

manufacturers are alleging. >> chinese solar panel nichols -- makers dominate the market. european rivals complain the chinese government gives them cheap loans and grants for land, allowing them to keep production prices down, but it is not all one way traffic. >> on the one hand, we have companies in germany which have been hurt by the price competition from china. on the other hand, we have a whole group of german vendors which supply everything from plant equipment to silicon. then a german mechanical engineering companies in particular are profiting from the booming solar industry in asia -- >> the german mechanical engineering companies. an estimated 300,000 jobs in europe are dependent on the chinese solar industry, and it is german companies that supply the chinese solar industry with

polycrystalline silicon -- silicon, the raw material for solar cells. >> we import 2/3 of our polycrystalline silicon from germany, the u.s., and south korea. it is a global industry supply chain. if you only look at one segment, it looks like chinese manufacturers have unfair advantages, but you have to look at the division of labor in worldwide production. each country contributes to the global marketplace with its expertise and technology. >> in addition, the chinese economics ministry is considering anti-dumping complaints against european raw material suppliers. the european commission has until mid-september to decide if it will initiate formal anti-dumping procedures. it is one important topic for german chancellor angela merkel on her visit to china. >> staying on the subject, the bankrupt german solar company has been given a life line with

a little help from south korea. the former market leader is being taken over by a south korean conglomerate. >> creditors' meeting on wednesday voted with a large majority to approve the sale. a plan to invest 250 million euros in the german company, and most of the work force will be kept on. the company declared bankruptcy in april amid stiff competition from china. one of northeastern germany's biggest ship-building companies has filed for bankruptcy. pns yards is based in the baltic sea ports, and it employs 2000 people. >> the sector has steadily said jobs in germany. in 1990, more than 6000 people worked in the industry. pns was recently granted a 150 million eurozone from federal and state governments, but further help was ruled out. >> these two ferries in the

dockyard should have ended service months ago. it is unclear now where -- whether there will ever be finished. one reason for its failure is that the company spent too long concentrating on container ships, which asian shipbuilders can make more cheaply. they should have turned their sights to specialized vessels sooner. they have learned their lesson the hard way. in 1996, germany's biggest shipbuilding company went out of business. in 2004, the call for bankruptcy. in 2011, germany's oldest ship builder also declared insolvency. many of those companies managed to pull through after making thousands of employees redundant. >> it is not assembly line work,

he says. for each ship, the remodeling has to be individually plan, involving a lot of time and effort. if we need to link in the ship by 20 or 30 meters, the preliminary work in construction is almost as much work as building a new one. we do all of that for just one ship. it is a job asian shipbuilders have not taken notice of yet. >> one thing is clear -- if asian firms do 10 their sights here, german shipbuilders will have trouble staying afloat. >> german energy giant eon plans to expand into south america have received a setback. a court in germany denied them permission to build a coal-fired power plant. the court upheld an appeal by local residents who fear that the plan would be a health hazard. the company is seeking to expand abroad to make up for the shutdown of its nuclear power plants in germany.

the southern german city of munich is still reeling from a bomb explosion on tuesday that smashed windows and set buildings on fire. >> a disposal unit was called in when an unexploded world war ii bomb was discovered during construction near an airport. >> the controlled explosion went horribly wrong, and the mayor of the city is trying to do his own damage control. >> the destination of a bomb left some parts of the district looking like a war zone. >> i am from israel, so i am familiar with images of bomb attacks. it is like something from the streets of tullibee. >> residents were stunned by the extent of the damage. the controlled explosion shook houses and shattered windows, unleashing a column of flames and set the rules of several buildings on fire. -- the ruth's -- -- the roofs of

several buildings on fire. authorities fear some buildings could collapse, so residents are only allowed to enter with help from crews. the mayor has tried to calm nerves, also promising compensation for property damage. said the demolition went according to plan, but the neighborhoods appearance suggests otherwise. >> pretty serious stuff. with that, we wrap up the "journal" at this hour. you are up-to-date. >> do not forget, you can find more at our web site, www.dw.de -- at our website, www.dw.de. we will see you soon. captioned by the national captioning institute --www.ncicap.org--