>> this is the "journal" on dw in berlin. >> thanks for joining us. the headlines -- egypt's new interim leader holds out an olive branch to the party of ousted president mohamed morsi. we will take you live to cairo for the latest. >> ecb chief mario draghi promises interest rates will stay low for a long time yet, sparking a rally for european equities. >> and victory within reach -- the first german woman to book a place in the wimbledon finals

since steffi graf in 1999. well, after more than two years of unrest in egypt and to fallen presidents, thousands of people have again taken to the streets of cairo tonight. >> but they are celebrating. on wednesday, the military ousted the country's first democratically elected head of state. >> there is resentment among egyptians who oppose military intervention, and that parked street clashes since the overthrow. 16 people have been killed and hundreds wounded. >> a new interim leader has used his inauguration to reach out to morsi's muslim brotherhood, but party officials have rejected any engagement. >> there has been no end to the celebration from tahrir square.

many women were among the crowd. they welcome the overthrow of mohamed morsi and his muslim brotherhood. >> i feel safety and peace. my country has come back to me. my country was was kidnapped, egypt, has come back to me. thank out. >> we have been treated unjustly. i'm here despite my illness for the sake of egypt. we did all this with the people and police. we are muslims and we believe in god. >> the head of the constitutional court has been sworn in as interim president. it he is tasked with managing the country's affairs during the transition. >> i look forward to holding presidential and parliamentary elections with the real public will, elections that are not fraudulent, because it is the only way to ensure our future.

>> meanwhile, the muslim brotherhood is facing an uncertain political future in egypt. the group's leader is said to be under arrest. morsi's defenders have announced the ouster as a military coup. >> despite everything, we reject the rule of the military. we will confront it, but not with molotov cocktails like they did. >> reconciliation could prove difficult as the military takes the reins in egypt for the second time in less than three years. >> we are still seeing mass turnout in central cairo. will it remain peaceful? >> for tomorrow, there is an even bigger celebration announced.

it might become a very big crowd. we have also seen smaller demonstrations, but it looks like it is going to calm down. about 300 people are on the list for arrest, so they want to make sure there is no movement on the side of the muslim brotherhood. i think it will be very difficult for them to mobilize. >> tell us more about the interim president and what he had to say. >> basically, what they want to hear from him now is who is going to sit in this interim government, and that it should be a democratic government, but also, when there would be an

election. most people are really curious to hear from him. >> what about the muslim brotherhood?pyou mentioned them. there are reports that its leaders are being rounded up, but it says it will not accept what happened. >> it says it will not accept it, but right now, they really have problems to mobilize. i think we will have a problem in the long run. the democratically elected president was removed forcefully from the office. the fear is that this might radicalize especially the younger silent rank of the muslim brotherhood. maybe in a few months in the years to come. >> thank you very much.

sounds like a lot going on in the background. >> well, leaders around the world have been digesting the day's indents in egypt. the united nations general secretary called or a return to civilian rule as soon as possible. >> in germany, the foreign minister was more outspoken, calling morsi's outing a major setback for democracy. of course, indents are being watched most closely in the region. here is more. >> international opinion is divided over president mohamed morsi's ouster. numerous countries have expressed alarm over the forced removal of a democratically elected leader. >> it is a basic right and a democracy for opposition members to voice their concerns and stage peaceful protests, but it is unacceptable for a government which has come to power through democratic elections to be toppled by the army. this is extremely alarming.

>> neighboring israel had been keeping a wary eye on rising religious extremism in egypt. >> we would like to see the new people in egypt restoring law and order in egypt, trying to bring back stability. >> palestinian opinion is divided. some sympathize with the opposition, while others saw an ally in morsi. >> i'm very upset for him. i'm truly sad because he stood with the palestinians. he stood firm with us, for the sick haitians, the products, the diesel and gas moving across borders. >> a government is not the place for islamists. islamist roots have always been isolated or independent. to rule a country and deal with politics is too difficult for them. >> most middle eastern governments are withholding official comment on the latest

developments in egypt. >> for some analysis, we have a representative from the institute of international security affairs with us. egypt has just lost a democratically elected prime minister or president to a popular military coup. is this a step forward or a step backward? >> it might be both. on the one hand, morsi has been democratically elected and the muslim brotherhood has won the parliamentary elections. on the other hand, it has tried to take over the authoritarian institutions of the mubarak state, so it all depends on the outcome, whether we will have elections right now, and elections in which the muslim brotherhood can take part effectively. >> what about the international reaction? there has been none from some players. serious has welcomed the ouster wholeheartedly -- serious --

syria has welcomed the ouster wholeheartedly. >> there has been a split. tunisia is governed by islamists and the prime minister of turkey is a former islamist as well. the saudi's are the traditional opponents of the brotherhood, and that is why we see this relatively wide range of opinions. >> israel is another regional power strongly backed by the u.s.. how does the ouster affect things there? >> just like the u.s., israel has become increasingly wary of the situation in egypt. it is mainly interested in stability, and it trusts the military more than it trusts the brotherhood and all other political players in the country. >> as far as stability goes, could this create a state for reform? >> it depends how they treat the brotherhood. if they now leave it on the fingers of the political process, the brotherhood will protest, and of course, it has

support among the egyptians, so it all depends on whether this political process that is being started now is truly inclusive. i hope it will be so. >> thank you very much for the analysis. >> let's turn now to some business news. shares have been rallying strongly after the european central bank promised to keep interest rates low for a very long time, but the bank's chief would not be drawn on exactly how long that will be. >> let's first have a look at what mario draghi had to say. >> is only one thing on the minds of journalists as european central bank head mario draghi addressed a news conference -- interest rates. he got straight to the point. >> looking ahead, our monetary policy stance will remain accommodative or as long as necessary. the governing council expects

the key ecb interest rates to remain at present or lower levels for an extended time. >> he was quick to clarify that the ecb's low interest rates are not going anywhere soon. >> i said an extended period of time is an extended period of time. it is not six-month. it is not 12 months. it is an extended period of time. >> europe's central bank is keeping their interest rate at 0.5%, a clear sign they feel the end to the crisis is not inside. despite the doubts, draghi praised portugal and greece. >> with the european central bank leaving interest rates at a record low, markets soared. our correspondents send us the summary from the frankfurt stock exchange. >> an extended period of time of

low interest rates. if this is what the european central bank expects, this must also mean that the ecb reckons only with a very slow recovery of the economy in the eurozone. the announcement of the ecb president was not only good news . on the stock market in frankfurt, stop rices moved upwards anyway. investors were happy that their business model remains intact. their investment strategy, which until recently had pushed the dax on to record highs. this investment strategy is mainly based on cheap money by the reserve banks. shares of comics bancfirst lost nearly five percent this thursday just to jump seven percent to the upside -- shares of commerzbank. >> let's take a closer look at the figures. today, markets surge. and frankfurt, the dax was up over two percent -- numeral two

percent. the euro is currently trading at $1.2918. >> german engineering is one of the main stays of the country's economy, but this year, the industry has got off to an unexpectedly slow start, which has forced the engineering federation to sharply lower its forecast. it is the first predicted drop in output since 2009. >> instead of the previously forecast increase of two percent, the industry is now expecting a one percent drop in machinery output. many german companies have been holding back on investment. orders from abroad, however, have increased. >> to another mainstay of the german economy -- small and medium-sized companies. many of them are finding it difficult for the moment to balance their books. >> weak demand for german exports from the eurozone and bad weather are two of the factors to blame. for the first time in four

years, the overall numbers of business bankruptcies has climbed in germany. >> the floodwaters in southern and central germany have caused billions in damages, not only for private households, but also for german businesses. the costs have worst some companies to file for insolvency and contributed to the rising number of bankruptcies in germany. before the flood struck, many german firms were already struggling in a week local economy. for the first time since 2009, there's been an increase in the number of bankruptcies registered in germany. experts predict the figure could hit 31,000 by the end of the year. that's an eight percent rise on 2012. worst-hit is the german manufacturing sector. it is suffering from weak demand for its goods abroad, making it harder for many companies to stay afloat. >> still ahead, we will be talking to our chief political correspondent about the german

reaction to the events unfolding in egypt. >> and we will have the latest from wimbledon. that and more after this short break. >> a not extended period of time for you -- just one minute.

>> returning to our top story now -- around the world, there's been a cautious and mixed response to the events in egypt. china says it respects what it calls the choice of the egyptian people. us were, there's unease about the ousting of a democratically elected leader. >> germany's foreign minister has voiced some of the strongest concerns, saying morsi's ouster was a setback for democracy. >> the german foreign minister compared egypt's democratic revolution to egypt's reunification. he promised egypt germany

possible support. >> this is a very emotional moment, he said. something very special. two years later, president morsi arrived in berlin for a state visit. back home, egypt was in the grip of renewed violent protest. under his presidency, the constitution had been revised, and members of foreign ngo's, including germans, arrested. the moves hurt relations with berlin. chancellor merkel made clear demands. >> to defend human rights in egypt, she said, and above all else, to protect people's freedom to practice their religion. germany is watching the latest developments with great concern. >> this is a major setback for democracy in egypt, and it is all the more important that egyptians quickly find their way back to a constitutional democracy.

germany's social democrats called on the eu to put more pressure on cairo to set a timeline for new elections. europe must be clear -- an army has moved against a democratic president. if it is true that members of parliament has been arrested -- have been arrested, the army has to answer for that. >> after morsi's ousting, germany is hoping to welcome his democratically elected successor in the near future. >> the international reaction to the events in egypt ranged from congratulations to condemnation. we spoke earlier to our chief political correspondent and put it to her, that germany's response has caused a bit of a dilemma for western powers. >> indeed it does. in fact, there is a strong sense here in berlin and i think in most other western capitals that people wish the conflicts and problems could have been solved at the ballot box rather than on the streets, but best of ella -- wester well -- westerwelle

urged people to show restraint and respect for freedom of assembly as well as freedom of the press and warned against potential violence, and those with similar words we heard from other german leaders, spokesman for nearly all of the political parties saying that while they regretted the fact that this conflict had not been solved through democratic processes, still, they could understand that this probably was an alternative to civil war and therefore, something that one would have to accept. but many questions being raised about where the process goes from here. very strong concern that the military step that quickly dash step back quickly and that there be a clear move toward a transitional government that can bring the country back to democracy, so essentially here and, i think, elsewhere as well, wait and see attitude, but perhaps on the basis of greater

pragmatism and a greater sense of caution than we might have seen in the original movement two years ago. >> let's turn to sports news now because we could be in for a german wonder in the world of tennis this weekend. one woman is very close to becoming germany's first champion at a major since 1999. >> the 23-year-old had already managed to defeat the defending champion from the u.s.. now she has knocked out poland's player with ones that. >> she said she just fought with all her heart. >> tears of joy and relief. sabine lisicki has won in a nailbiter of match, making her the first german to reach the semifinal since steffi graf 14 years ago. the german took the first set 6- 4, but her opponent started to

gain the momentum as her concentration slipped. lisicki rallied and once again showed she is at home among the world's best, finally reclaiming the lead. after two hours and 18 minutes, her second match point and the dual and secured her a place in the wimbledon final. considering her current form, many will fancy her chances in her next match against france. >> it will be a special fourth of july for fans on the u.s. west coast. -- sailing fans on the u.s. west coast. the opening match of the america's cup will be taking place in san francisco. the marks a return of the contest to the u.s. >> this year, the race is seeing a number of changes to the rules, some of them controversial. organizers say the new rules are designed to improve safety. >> some say the america's cup has become too bold. others say they love the way it

is changing sailing. >> these highly sophisticated racing machines seem to almost fly over the water. they have little in common with most people's idea of a sailboat . their crews look different as well. with their helmets and other protective equipment, they are making a splash. that is designed to attract fans. after years of legal battles, the owner of team oracle finally brought the america's cup home, and that is where he wants to keep it. the rules have been changed. what was always an expensive endeavor now requires even more money. 10 million euros on average for one of the catamarans. many countries have dropped out. only new zealand, italy, and sweden are still competing against the americans. germany remains on the sidelines. >> it is a catastrophe that there are so few participants. it's because of the format and a

new class of boat that has been introduced. >> the new class has not been tested under racing conditions, and it seems difficult to control. these kinds of spills were considered to be just part of racing until may when the swedish boat artemis broke apart during training, trapping british olympian andrew simpson underwater. the 36-year-old never had a chance. his death was a shock for the america's cup. the sailing world is now hoping for a change this year in san francisco. >> the best case would be for a team like new zealand to win the america's cup. it would allow a return to the classic values. new zealanders are a bit more conservative in that regard. >> that would mean less show and fewer spills and a more balanced racing field, but not everyone is convinced that would be progress. many younger sailors like the

thrills the new rules have brought. the german youth team surprisingly made the cup for youth america's cup. they see sailing differently. >> we have to get -- with the current american cup in san francisco is definitely a step forward. it allows for a lot of action. i think it is exactly what sailing needs. so that people see that it is not just sitting in a boat and getting a tan. >> without a doubt, this year's regatta will produce some spectacular images, but many are hoping the race will return to calm her traditions from its 162 --year-old legacy. >> the territory of crumb a a on the northern coast of the black sea was conquered and controlled many times throughout the centuries. today, countless valuable artifact of their testimony to region's rich history. >> and exhibition opened in germany today. it is the first time these unique artifacts have gone on

display outside the ukraine. >> the exhibition includes extremely rare chinese caskets dating back to the first century. experts in japan have spent years restoring them. now they are on display for the first time to a wider audience. experts were intrigued to find the chinese treasures engraved as far west as the black sea. the artifacts were discovered by archaeologists. they had partly disintegrated and were barely identifiable but have since been restored to their former glory. it is thanks to this professor that they have now been brought together for the display in bond -- bonn. the objects were drawn from six different museums. >> we did it by working with the curators in ukraine. they were also here to help set it up. it would not have been possible otherwise. many of the curators actually only met here.

they live in crimea but they do not have much contact with each other, so that makes it quite special. >> the ukrainians say they would like to see the collection go on display in crimea, too, but at the moment, there is no suitable venue available. in the meantime, the treasures will be on display until january of next year. >> we now go front row at berlin fashion week, which is in full swing down at the capital's landmark brandenburg eight. >> one closely watched name is the man the press has dubbed the german valentino. he turned out a sophisticated collection dominated by neutral colors, including geometrical patterns. dresses included elaborately embellished floorlength downs for night and easy choices for day. the designer said he took his cue from the sensual designs of 1930's french fashion.

>> now to a remarkable saves in the u.s. city of toledo in the state of ohio. one woman is counting herself lucky after she and her car disappeared into a sinkhole. pamela was driving through an intersection in the midwestern city when the road opened beneath her. >> the 60-year-old managed to get out after authorities lowered a ladder into the hole. her car, though, is still there. city authorities say a broken water main beneath the road created the sinkhole. lucky woman. lucky to get out alive. >> that is just incredible. we will be back with a live update of the headlines.