>> hello, everyone, and welcome to "the journal" in berlin. >> and i have the business news. >> the headlines at this hour, flood victims and the slow pace of a distribution in pakistan. china overtakes japan as the world's second-biggest economy, and can ship cards help educate children of low-income families? captioned by the national captioning institute --www.ncicap.org-- in pakistan, flood victims have

blocked a highway to protest the slow pace of government help. in the meantime, aid agencies are warning that relief is arriving too slowly for the millions of people still without clean water, food, and shelter. at least 20 million people have been affected in the two weeks of flooding. >> amid the desperation in pakistan, the anger is growing. about 100 flood survivors blocked a road on monday. this man shouted that they would not leave until the chief minister kaine. others simply cried, "we want food!" >> we have lost their children and our livestock. we can hardly save ourselves. what are we to do? where are we to go? >> further north in print job province, the army is trying to help. -- in punjab province.

the soldiers drop supplies while vdotghhe rotors cause havoc. >> most of the children coming to us have dire korea and are vomiting. we have treated 100 to to enter patients. >> and the outlook is bleak. heavy rain drenched the country's north on monday. that raised fears of more flooding, more displacement, more disease, the end is a blow to relief efforts that are already stretched. which and more disease, and is a blow. >> we will have more -- wro more

disease, and it is a blow to relief efforts that are already stretched. >> we will have more later. one-third of one town is still under water, with troops using heavy machinery to clear debris with more than 1200 people killed when mudslides triggered by heavy rain it struck that down in china. iran says it will continue with its expansion of its nuclear program. this despite the threat of international sanctions. tehran has announced it will start building a third uranium enrichment plant next year. one man says a korea was considering building 10 new facilities and was in the final stages of searching for final locations. iran is already enriching uranium in a central city. u.s. defense secretary robert gates says there will be no change to plans to start a

withdrawal of troops from afghanistan next year, as ordered by president barack obama. now, the comment by gates seem to contradict what was said by commander general petraeus. he said the date was not set in stone. >> in july, forces in afghanistan experienced the highest casualty levels since the war started. however, general petraeus says the current strategy is working and suggested the withdrawal could be flexible. >> general petraeus remains fully committed to president obama not's desire to begin withdrawal. >> the goal was to subdue the taliban and their allies, with the government trying to establish its authority and take over responsibility for the securities.

>> we always maintained that setting a date for withdrawal is going to put the mission itself in jeopardy. >> the apparent disagreements on strategy will not be welcome by the obama administration, which seeking to shore up support at home with the increasingly controversial afghan mission. >> there have been fresh classes in indian-administered kashmir. security forces fired rubber bullets and tear gas at stone- korean protesters opposed to indian role. many have died -- stone-throwing protesters opposed to indian rolule. and a decree remains effective in bangkok and in six other

provinces. it was introduced during anti- government protests earlier this year. meanwhile, leaders of the opposition redshirt movement has been indicted on terrorism charges. protest leaders deny the charges. they are accused of the violence and leading the demonstration. the crackdown ended their 10- week-long protest in may, leaving 90 people dead. let's check in with monica for our top business stories. japan is losing ground as an economic superpower. >> it has lost its place as number two in the world, and the japanese economy grew at its slowest pace in nearly one year, and exports began to cool. real gdp edged up just one-tenth of 1% from the free use quarter, and this weakness means that china -- from the previous quarter, and this weakness means that china is overtaking them.

bu>> china's economy outstrip to japan's in the april-june quarter, pushing japan's gdp behind china on a nominal dollar business. china is growing at a pace of about 10% per year, while japan is forecast to grow only 3% in 2010. >> we have had the recent financial crisis, and china's growth has been fairly robust, and i think that is giving people confidence. it is giving firms confidence to continue investing. it is giving people confidence to continue consuming. >> in contrast, the japanese economy has stagnated. in the second quarter of this year, gdp growth slowed to just one-tenth of 1% compared to the previous quarter. consumer spending remains weak, and the yen reached a 15-year high against the u.s. dollar

last week. exports are now less competitive overseas. >> the sluggish japanese economy weighed on the market's monday. we have this report from the day's trading at the frankfurt stock exchange. >> weaker than expected japanese economy and also a rise in prices in the euro area soured the mood on the frankfurt floor on the beginning of this week. euro zone inflation went up by 1.7%, which has been the highest rate in two years, so the discussion started off that the ecb has got to do something. the european central bank will keep interest rates low just to keep the european economy running. on the other hand, the u.s. economy showed some signs of relief. the empire state index was better than expected.

>> and that was a reporter at the frankfurt stock exchange. and let's take a look at some market indexes, and we stay in frankfurt, where the dax finished the session nearly unchanged. across the atlantic in the u.s., the dow industrials still in negative territory, 10,302. the euro is trading at $1.20. the world trade organization said the european union broke trade laws by imposing limits on goods such as flat-panel displays and multi-function but computers. there was an information technology agreement, abolishing tariffs on high-tech goods among so the members. but the eu says that now are -- that some of these are now consumer goods as opposed to

technology goods. four german energy providers of threaten to pull out of nuclear power generation in protest over a proposed tax. the four say that 2.4 per year wrote tax would make nuclear power production and profit will. -- 2.4 your attacks. -- eruo tax. >> they have threatened to shut down due to a proposed tax on fuel rods. they see in light of the new tax, producing nuclear energy would no longer be profitable. nuclear power makes up about 60% of their production, and it constitutes about one-quarter of energy production at another company. a third company has nuclear power not playing such a large role, but they are all making billions in profits from nuclear

energy production. the nuclear attacks would allow the government to claim a portion of that, about 2.3 billion euros per year. the energy companies have asked the government to drop the plan and extend this for another 15 years. they say halting nuclear production too quickly will drive up electricity prices and threaten the security of the current energy supply. nuclear energy opponents, like greenpeace, disagree, and they say that shutting down the eight oldest nuclear reactors would not lead to an energy shortage. >> for more on this story, we are joined by an independent energy sector analyst. is this an empty threat, or do you think utilities are actually serious about shutting down the reactors if the fuel rod tax is implemented? >> i do not believe that. also, they have an obligation to

deliver and electricity to the consumers. i do not think they could do so. what is clear is that we have a situation with a bargaining process on many, many millions, billions of euros, so i am not surprised that they are arguing .. >> how would it affect them? until now, the companies have posted robust profits with their nuclear reactors. would this tax really made them unprofitable? >> no, i do not think so. they may have some difficulties, perhaps, but they have made a lot of money in the last years, and they have, let's say, a serious space for investments. i sometimes think they should not have begun this discussion about a lifetime " extension, so

i really do not think they will lose too much money. >> and how will this affect energy prices? they are already rising. >> it is not that big that this would not be possible to accept. >> thank you very much for joining us. >> thank you. >> and back to the controversial pilot project that is underway in germany. >> that is right, monica. the government is looking to ways to improve the chances of children of long-term unemployed parents, and this would be a car that would allow them to pay for music lessons, or a visit to a museum without the need for cash. the project is in response to a ruling earlier this year by germany's highest court rallies need to be changed. -- highest court that support

schemes need to be changed. >> i just saved a lot. for a single mother like me, it is a lot of money. >> as of next year, the german government wants to introduce the card nationwide to spend on their children. germany's social minister says it will also offer underprivileged children a better education. >> it is for extra learning support in school for people see need it. it is for a cooked meal in schools and kindergartens. it is for school supplies, from paints to atlases. after-school sports clubs the other children of the same age attend. -- that other children of the same age attend. >> some lobby groups say it

strengthens the social divide. >> this card system is stigmatizing and discriminatory, and we object it. >> the cards have divided opinion within the coalition, too, and whether they are introduced now hinges on a vote of the parliament upper house. >> firefighters and portugal are battling a number of major wildfires, mainly in the country's north. it has been raging for six days in a natural preserve. the park contains more than 70,000 hectares of bushland, which sprawls across the border shared with spain. over 15,000 fighters seven registered in portugal since january, about as many as the last three years put together. -- have been registered in portugal. and a german soccer champ. they have labored their way to the first round of the german cup.

they did not score until the 43rd minute. then it was 2-0. in the second half, the final score was 4-0. now, when you think about motorsports, you do not really think environmentally friendly, but there is one race that is actually promoting cleanability. electric vehicles from australia, germany, and switzerland has set off from in geneva. they will be passing from -- through many cities before arriving back in january. they run on renewable energy, but they will also be recharging with regular energy, which is often produced by burning coal. but she -- >> which seems to defeat the purpose. >> and it seems like an awfully long trip. >> and they cannot travel that fast. >> well, we will see how they do. in "in depth," we will be taking

a look at pakistan and the efforts to help the victims. do not go away.

>> welcome back. many areas in pakistan are still in accessible due to flooding, and the only way to get to some areas is by helicopter. international relief agencies are looking into other ways of reaching those still in need, including the so-called arab rage. in our report, we will take -- called air ridge. the german red cross is working in that area, with local staff helping in the distribution of aid. >> a convoy makes its way through the disaster zone in

northwestern pakistan, hating to one area. the situation in the town is unclear, but 25,000 people were thought to be trapped by the floods. .the aid workers are quickly surrounded when they arrive at the mosque. people are desperate for clean drinking water, food, and medical care. >> medical care is important, especially in areas like this which have been cut off from the outside world. we have to treat acute diarrhea immediately. and we provide medical care to the injured. >> the pakistani red crescent have set up in a private house. hear, a doctor and several helpers have been handing things out and treating wounds. he said supplies are running low, and this is the only medical camp in the area.

for him, this is only one small part of the enormous suffering across pakistan. >> the short-term cost of a year is expected to run into millions of dollars. the long term aid would cost billions. this country is not able cover that by itself. that means there has to be a huge effort from the international community. >> major aid organizations in pakistan are also affected by the floods, like this united nations 10 depot in the country's northwest. the water has rendered most of the thousands of shelters here unusable at a time when they are desperately needed. the flood caused widespread devastation in the valley korean houses have been ripped apart from their foundations. -- in the valley. houses have been ripped apart from their foundations. some have been linked to islamic

extremist groups. they are setting up relief camps across the region, giving basic aid to the needy. >> so far, we have given a tour around 5000 families in the region, things like food, tents, and everything they need to survive from day to day -- we have given aid to around 5000 families. >> volunteers have been disturbing vouchers for relief supplies. people here are grateful to receive any help at all. >> they have always helped us in times of need. we have not seen any help from the government. that is why we put our trust in that group. >> islam organizations are winning sympathy among the flood victims as tens of thousands wait for government aid to arrive. >> so in light of this

situation, what are the greatest dangers facing the flood victims at this time? well, i put that question earlier to someone with the german relief coalition, adh. he also works closely with pakistan. >> they are mainly facing health-related problems, especially cholera, because the water boain a variety of regents contaminated, so if we cannot get the situation under control, it is getting worse -- in a variety of regions is contaminated. >> what about on the ground right now? >> in our case, we face no problems, because we have established structures. we have worked in the regions for many years, so we mainly work with local staff, so they

usually come from the region where the flooding's are at the moment, so they have a personal interest in delivering aid. >> and what are you hearing about local staff? are they affected in getting aid right now? >> i hear they are pretty much effective korea at the same time, they are pretty much frustrated because they would like to do more, but it is very problematic -- i hear they are pretty much affected. at the same time, they are frustrated. >> there are con nepotism. what are you hearing about corruption? >> we have anti-corruption systems in place. so far, we had no problems, especially because we buy our eight items in pakistan, so we have short distances -- we buy our eighaid items in pakistan.

>> what is the threat to foreign workers on the ground? >> there is a threat level, which you cannot neglect, but at the same time, as i said before, we work with local staff. that is exactly the reason why we do it, because we have to do it with a low profile, and it is easier if we work with staff, which knows the area and knows the surroundings. >> and that was a representative from the german relief coalition, adh, speaking with me earlier this area. the floods have caused what united nations is calling the worst humanitarian situation to date. charities say the response has been sluggish. many in pakistan are accusing them of not following orders. they are afraid that their

valuables will be lost to the flood or even to looters. >> floodwaters are still rising across the plains as people struggle to save their villages. residents dug through and earth and in brinkman, hoping to divert the water to the fields -- through an earthen embankment. authorities seven urged the residents to evacuate, but not everyone is leaving. >> women, children, and the elderly have been evacuated, but many young men had stayed behind to guard their homes because of a lot of robberies are taking place here at night. many of the thieves are armed. >> we have our businesses, a properties, our belongings here. at least 25% or 35% of the residences are staying on.

they are hoping that nothing will happen to them. >> it is still possible that many people are underestimating the danger. that is because rent -- residents are used to the river overflowing its banks each year during monsoons. but the current floods are the worst in the pakistan history. many residents had no time to prepare. >> my son was murdered in floods. we lost everything. and i am worried for the children. they have nothing to eat and nothing to wear. >> the only hope among the people here is to somehow survive the disastrous floods. nobody can really think yet about how life will go on after that. >> and that was our "in depth" report on the humanitarian situation in pakistan after

three weeks of devastating floods. thanks for joining us. stay with dw-tv, if you can.

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