>> dwtv, at the heart of europe. >> hello, welcome to the journal in berlin. i am megan lee. >> i am peter dele with the business news. >> paris arrests the man who brought down one of the biggest banks. hungary declares emergency as multiple people are kileld in a toxic spill. and frankfurt focuesses on storytelling in the digital age.

>> jerome kerviel has been found guilty in one of the biggest trading fraud. he was given three years in prison and a suspended sentence. he was also told to pay 4.9 billion euros in damages. he worked for societe generale, one of the leading banks in france. the bank lost billions because of his trading. >> jerome kerviel i arrived with his lawyer, and the prosecution said that he took a risk on a massive scale without authorization. >> the court knew societe generale had no knowledge of the fraud that he was collaborating. and they were completely unaware of the systems and

falsifications, and everything that was greeted by him for the bank. >> the defense said societe generale turned a blind eye as long as he was earning money. >> this is an absolutely unreasonable verdict, and the bank is responsible for nothing. this is not responsible for the creature that has made, and that only he is responsible for the crisis of the banking system. >> kerviel has denied working without their knowledge and he was angry at the decision of the court. >> and pakistan the american charge of an attempted bombing has been sentenced to life in prison without parole after pleading guilty. fazal shazad attempted to

explode a bomb but it fizzled out. he was arrested trying to fly to dubai. the afgan govermnhan governmentt down numberous security companies, including xe, formerly blackwater, implicated in the killing of civilians. all of these 50 firms operationg are told to disband. the move is part of a plan to take over security in 2014. thousands work guarding convoys, embassies and international organizations. hungary has declared a state of emergency after a toxic mud

spill. four people were killed and six others are still missing. this happened in the village of -- a reservuiroreservoir burst, reg the chemicals. >> they are hosing the streets to stop the damage. this contains metals and toxic substances. the wate haste contaminated the standing water. this flooded fields and washed through villages. the blame is aimed at the parent company. >> we ordered the company to stop reconstruction work. -- start reconstruction work. if they don't they will face

serious consequences. >> a number of people are not accounted for. many people recieved treatment for burns and eye irritation. environmental experts say they can't predict the long-term consequences, but an area twice the size of manhattan may be effected. >> a minority rightist government has been backed with an anti-islam party. the cda faced a no-vote. vilder's freedom party is outside government but will provide support to pass decisions. they will have a say in policy

making. vilder is on trial for inciting hatered to muslims. what is the -- hatred to muslims. >> what is the state from the imf? >> they issued a global stability report, and they said confidence in the financial sector has not completely returned. banks remain to be the achilles heel, and financial institutions have to improve their capital requirements. they have concluded that the global financial crisis was more or less over but this optimistic outlook was given beyond the debt crisis. i spoke with our correspondent in washington, regarding this,

with most of the analysts. they say the global economy is not out of the woods. i was asking him what the final verdict really was on this, and the stability of the global banking system. >> the main message was that we are not out of the woods yet. they have said that the economic recovery that we are witnessing is very fragile. they are asking the government to keep up the stimulus programs, or not be terminating them completely encased bailing out the banks is needed, or putting more money into the economy. they say that debt is a huge problem. in the midterm, you have to do something about this to stabilize economic growth. >> this is a scary scenario. they were undergoing reforms

these days in europe and the united states does not really see i tie. -- eye to eye. >> the united states wants to bring in the emerging power to the international monetary fund, but this would cost europe. there is a new suggestion from the europeans, who want to give up a couple of seats for the international monetary fund, but this is connected with other things. there is a power struggle to move this and not the the only one that will have to move. many people say that we have not seen the end of this and there may not be a solution at this annual meeting in washington just yet. >> thank you very much for that. european leaders are pushing for china to allow their currencies to rise.

at a meeting in brussels, wen jiabao was holding a meeting. european officials believe yu that the operaan -- believe that the yuan is currently undervalued. >> the understanding was that great britain and china need each other, but the issue was the currency. they were trying to say that the undervalued currency was affecting european exporters and should appreciate. >> this is a significant and broadbased appreciation that would promote a more balanced growth for china and the global economy. >> they say that it is in the interest of china to keep the imports and exports and balance,

but the on the economy depends on the demand for european products in china. >> this is a motor for growth right now. china is wanting to play a larger role in the global economy and is very important that it will do this. it is very important to make certain that the currency is valued with the european exchange rate. >> of all china is wanting to make certain that they control the speed of the rise in the currency. with the g-20 summit a few weeks away, the pressure is mounting on beijing. >> european exchanges snapped a six-session losing streak. our correspondent has more on the trading from the frankfurt stock exchange. >> managers in the u.s. service business have been more optimistic than people feel

before. this positive information gave a boost to the shares on both sides of the atlantic's. the german traders know that the european economy may increase some speed again, after losing so much in the last few months. the market in general seems to be on a roller-coaster ride, and there have been heavy losses on monday, the rally began on tuesday. and a few investors think that this will continue, and that they will seek this new direction. >> looking at several market industries in a little bit more detail, in frankfurt we see the index closing about 1.3%. the eurostoxx finished up 2%. across the elected, the u.s. services sector was going to

lift u.s. stocks as the dow jones rose one -- 2.8%. the the euro is at an eight- month high level against the u.s. dollar. this is trading pat.83at .838 u. cents. that are looking into the impact of these trucks, over 28 meters long, and this is longer than currently allowed. the industry is looking port to the lower costs, and this may actually help with traffic congestion. critics say that this is not safe and the transportation of cargo it is going to the road. they believe that rail transport is being neglected. >> soccer fans in germany are looking forward to the major game on friday, the qualifier

for the european cup against turkey, the hottest team in the group. they look back into the summer, as germany came to third place in the world cup. the german president paid tribute. >> they put on suits for the visit to the german president. they honored the team for the football they played in the world cup. the players got a silver laurel, the highest award for sports presonaersonalities. >> we came in third, but we want to be world champions. >> the coach was given the cross of merit. he may have had other things on his mind.

he is preparing for the euro qualifier against turkey. he has not been on form and another player is injured. >> we have to find an alternative solution. >> a victory against turkey in berlin would mean three wins in three matches in the euro qualifiers. >> the president of the olympic committee is in west bank. he expressed concerns over travel restrictions for palestinian athletes. he says they should be given free movement. the ioc chief said he would rase ise the issue in meetings on

wednesday. in volleyball, italy and germany are waiting for their first medal in decades. they are facing brazil to get in the semifinals. ebooks gapsanand multi-media programs are in frankfurt in a display of new ideas from the world of literature. it is no surprise that this year's guest is from south america. >> the guest of honor is argentina, celebrating 200 years of independence. 70 authors give an idea of the literary landscape of south

america's second biggest country. >> what you will see is an argentina that is in motion, an argentina that has never given up hope, even in the darkest moments. >> the fair is focused on new digital literature. >> there are audio books, downloadable e-books. >> the advantage is having an electronic device so you don't have to carry this around. you can also download games. >> printed books aren't likely to die out. classics are still the main money-makers. the retail market was worth 9.6 billion euros. >> i am old fashioned.

>> i like to leaf through things. >> have to have the newspaper. >> stay tuned for "in-depth," coming up next.

>> in a sign of how much cuba is opening up to the west, a top senator has been in the country. chris dodd, a critic of the embargo, was holding talks on improving relations. communist leaders showed that some small businesses the right to operate. they're hoping to correct the economic damage from u.s. sanctions and their own policies. >> the result of five decades of central planning are impossible to overlook. poverty and crumbling facades

are everywhere. there is little money for repairs. the economy is as weak as ever. inefficient enterprises and rising prices. the global economic crisis made things even worse. the president seems to understand that things have to change. the government espy looking into unprecedented reforms. the government of cuba employs about 5 million people and the government is intending to lay off 500,000 people. this is one-fifth of the cuban workforce. people who lose their jobs will be allowed to start their own small businesses under close government supervision. this is not liberalization but this is a major step in

>> the small business owners will have no choice but to put up with constant government intrusion. but if they are forced to compete with subsidized services, the current reforms will fail. we are going to look at some cubans who were trying to make it on their own. >> she works as a seamstress, who and in the past she was only fixing clothing and making alterations. but now she has a small shop where she sells dresses and things that she has designed herself. she is in charge of the bookkeeping. she has applied for a license to set up her own business from the labor and industry. -- labor industry. >> my obligation is to pay taxes and do my work.

>> she has to pay 300 cuban pesos in taxes. she sold one dress, and it is not enough. she is optimistic she will be successful. her mother is skeptical. >> i don't know if we'll have the money, later. even for years. >> ivan molina-diaz wanted to be self-employed but others had no choice. he was an employee in a barber shop, but it was turned private. now luis runs it. >> i could not say no or i

would not have a job and i'd have to see how to cope with the situation. >> when the shop was owned by the state, he got a basic wage and tips from customers. now he has to pay 32 euros for rent. he has to buy hsis supplies. many barbershops are able to ask two or three pesos for a haircut. he has to charge 20 pesos. >> they made a big mistake. it should have applied to everyone. they just picked 10 out of 50 barbershops. i tell customers how much it costs. they'll just move to where it's

cheaper. >> reforms are outside of havana. few farms are doing this well. they will import food from abroad. they are hoping garrido will improve the food supply situation. >> this is all mine now. from back there to next door. this is corn. this, too. and back there is yucca. we are also planning to grow garlic and other things. >> there are still problems. he does not have a bull to work the fields. the state says it will help with the essentials. he says, becoming his own boss

anhas changed how he does his work. >> you work with more passion and motivation. you make more of a neffort with -- an effort with your own profits. it is not like a fixed wage. >> the reforms came from economic necessity to stave off the collapse of the system. >> why did they choose this time for reforms? we asked a cuban specialist from potsdam. >> we are in the middle of an economic crisis and we have to find a way out of this situation. these are stabilizers to stabilize the cumin system.

we have to see what we can change in order to have nothing changed in this system. >> is there going to be some reform inside the cuban economy. what are we going to be looking at over the next few months. >> the most dramatic the mention of this is at the end of the contract, the social contract between the government and the people of cuba. they have to find their own way out so this is a new situation and i would say that the main question is more of a cultural question that an economic issue. >> can we expect for these reforms to have any impact on the economy? >> not really.

if you see the dimensions of this, this is designed for the interior of the society and not so much to bring the people of cuba to a new level and their economy. and i would say that these are only the first ups in trying to see if they would be sufficient to make the situation better. >> and what about concerns in the communist party that this will open the doors for the batista-era families to return. >> this is a scenario wae have known since the 1980's. there will be a trial and error, a way to stabilize the entire system. >> we thank you very much.

>> thank you very much. >> we end the political and economic situation in cuba. i am megan lee. thank you for joining us.