>> hello and welcome. >> president barack obama says the u.s. will help the arab world move towards democracy. dominique strauss-kahn is released on bail, but is formally charged with sexual assault. captioned by the national captioning institute --www.ncicap.org-- >> u.s. president barack obama

said that the middle east and north never go have the full support of the u.s.. he praised those who dare to rise up against oppressive regimes and says the u.s. will also help countries were change has yet to come. obama also announced a program of economic incentives to back reform. >> until now, the u.s. president has taken no clear position on the arab upheavals. but his speech thursday was wide-ranging. obama said it marked a new chapter in american diplomacy in the middle east and north africa. he promised to support democracy initiatives. >> our message is simple. if you take the risks that reform entails, you'll have the

full support of the united states. >> but the u.s. president offered more than political support. he pledged economic aid, starting with egypt and tunisia, saying that the u.s. will forgive egypt $1 billion in debt. he also said washington would pass next week's g-8 summit in france to come up with a plan to stabilize the egyptian and to nation economies. he won other regimes in the region to allow reforms in their countries. he had some of us for the syrian leader appeared >> president and sossad now has a choice. he can lead the transition or get out of the way. >> president obama strongly endorsed a two-state solution based on the 1967 borders between israel and palestine. >> barack obama made his first

major speech addressing the arab world two years ago. what is the reaction in egypt this time. >> it was interesting. i was in a coffee shop in cairo watching the whole speech with other people. they were eagerly awaiting this and they were very attentive. somehow, most of them said, yes, it was a nice speech, a very eloquent speech, analyzing the error revolutions and giving money to states like to nietzsche and egypt -- like tunisia and egypt. but there were no new things going on with the palestinian- israeli conflict. bettis and they did already two years ago. -- that is something he already did 2 years ago. of course his speech about how he wants to get president assad

to step aside -- there are no concrete steps. >> but obama did make several concrete proposals for egypt. >> this is something, in the coffee shop, this was the main thing that was seen as a positive thing in his speech. he was talking about the egyptian debt and the money the arab regimes -- having all the arab states bringing it back. there were tangible things in his speech and positive. >> thank you very much. we now go to jerusalem to our correspondent there. obama of's speech came a day after the israeli prime minister is expected in washington. what is your reaction? >> the one thing that raised

eyebrows in israel is that president obama referred to the 1967 peace lines as possible borders for a future palestinian state. this was received very negatively. president netanyahu rejected this in a statement tonight before he left for washington. he also said that the tone for this upcoming visits -- he is supposed to meet president obama on friday speech to congress next week. he pointed out that most of the points raised in a speech or on the israeli point of view. from that perspective, mr. netanyahu will not have much to worry about in his visit to washington. >> what about the palestinians? how did his words go down there? >> president abbas welcomes the president's efforts to renew talks. but there is disappointment by

the clear opposition voice of the u.s. in not wanting palestine to go to the un in september. they want to know what incentive there is to get both parties back to the negotiating table and what actions are the americans prepared to take if both parties will say no. >> was there anything that he said that could give impetus to revive the peace talks? >> he was very general, but clear in his speech on saying that permanent occupation will not solve the issue and he was also very clear on saying that the israelis have to move clearly back to the negotiation table. but the problem is that many people say that he did not give a clear timetable or any incentive basically to get those

parties back to the negotiation table. >> right. thank you very much. turning out to other news -- a judge in new york has set bail for dominique strauss-kahn at $1 million. the former head of the international monetary fund will be under home detention with electronic monitoring. he was back in court on thursday just hours after stepping down from his position at the imf. his attorneys reapplying for bail after a judge had refused it on monday, saying the frenchman may try to flee the u.s.. his wife and daughter from a former marriage came to the court for the big hearing. earlier, he resigned as they head of the imf to fight the charges of sexually assaulting a hotel maid, he said. i am now joined by our correspondent in paris. what has been the reaction to the developments in new york

that he has been given bail? >> it is a huge relief if you are judging from the debate going on on live state television going on right now. this is the first good news in the past five days. it is being received with a great sigh of -- a great side by many of his threesupporters. he will be paying a $1 million bail and he will to be -- he will be confined to an apartment. it is not the apartment of his daughter kim il, as previously thought might happen. instead, his wife has rented an apartment this week. anne sinclair has not been to visit him in prison in the past three days. she said it was too difficult to contemplate. in the next few minutes, they will be able to leave together from that courtroom and go home

to this apartment in manhattan that she has rented. for the french, that is one piece of good news. it comes on the back of news that a grand jury has indicted dominique strauss-kahn on those charges. that dropped in a little earlier than we thought might happen. that is good news that he is released on bail, but he will be facing a trial. >> thank you very much for that update. meanwhile, there are discussions going on over who will take over for dominique strauss-kahn at the imf. >> consensus seems to be emerging that the next fed will be a european, as has been traditionally the case. that is despite calls from leaders from emerging economies who would like to see the panel differently. the front-runner for the top spot is france's christine lagarde. dominique strauss-kahn's

departure could be a golden opportunity for christine lagarde. the 50-year-old lawyer is the favorite to take the head of the imf. she is lauded for the handling of the global financial crisis. jean-claude tree should has also been tapped as a potential candidate -- jean-claude trichet has also been tapped as a potential candidates. the world developing economies also want a shot at the top job. but german chancellor angela merkel says a european would be best for now. >> in the current situation in which we are experiencing significant problems with the euro, in which the imf is very much involved, there is certainly an argument for proposing a european candidates and campaign for that candidate in the international community. >> but it will not be easy-

going. emerging economies like china say it is time for them to play a bigger role on the international stage. >> we have always believed to the imf should continue to reform its structure and choose its senior leadership based on fairness, transparency, and merit. and we believe that emerging and developing countries should be represented at senior levels. >> traditionally, an american holds the top post at the world bank and a european at the imf. but that longstanding agreement could be set to change as pressure to open the race continues to grow. >> the u.s. has the biggest asserting block in the imf. we spoke to the chief constable in washington. what will happen next? >> they will start the application process. we have seen in a report that

christine lagarde, the finance minister franz, is really the front runner. -- the finance minister of france, is really the front runner. the debt problems -- he is now with the brookings institution. >> the emerging economies are also making a big push. what will be the role of china or india? >> of course, europe wants to keep one of their own on this post. i think germany is playing into this discussion a very important role. but developing countries say, you know what? those times should be over when europeans and americans alone decide who will be the director

of the imf. what we might see is a compromise. for example, mrs. lagarde will be the next director and her deputy maybe somebody from china or brazil. >> the march 11 earthquake and tsunami has thrown the japanese economy back into recession. it marks the country's second consecutive course of contraction. the export and tuesday has been hit hard by the quake. -- the export industry has been hit hard by the quake. recovery will begin in the second half of the year. it is time to look at the market's. the daxx is closing 3% higher.

in new york, the dow jones industrial is a 12 dozen 605, up 3.5%. -- 12,605, up 3.5%. >> many portuguese believe measures required by the imf and the eu for 78 billion euro bailout package say the country's internal affairs -- some demonstrators also express their anger at remarks by chancellor angela merkel and she -- angela merkel. she criticized the southern countries extremely low retirement age. >> there were controversial remarks about nazis and and all filler. at a press conference, he spoke of his german heritage and joked

that he sympathized with adolf hitler. it sparked outrage among holocaust survivor groups. he apologized but was asked to leave. i asked our rock correspondent whether or not he vented progress of course, he did not mean it. -- whether not he meant it. >> of course, he did not mean it. this time, he went too far for his own standards. he did not mean it, but he should have known better. even he should know there is a line should not cross. he apologized again. he is sorry that damage was done at the festival and to his reputation. but it is typical of him being named persona non grata, to show

that he is still in rebel. >> why did he make these comments that are highly sensitive and inappropriate? >> i think it is largely to do with the competition here. it is not competitive at all. partly, this had to do with him bringing in a provocative film to cannes, and wanting to be seen as a provocateur. he did it with his public statements. >> thank you very much for that. queen elizabeth ii will continue her historic trip to the republic of ireland. the third day and builds her well-known passion for horses. she visited the home of

thoroughbreds in dublin during up next, we will take a look at -- in dublin. up next, we will take a look at the speech by president obama.

>> it was a wide-ranging and eagerly anticipated speech. u.s. president barack obama talked about the political changes sweeping northeast -- sweeping the middle east and north africa. he said the u.s. would support political and economic reform people in the region. he mentioned countries where change has yet to take place, saying repression would fail, tyrants would fall. he also talked about the israeli-palestinian conflict with a blunt message to both sides, saying concessions had to be made. here is more on with the u.s. president had to say. [applause] >> president obama spoke at the

state department, the headquarters of u.s. diplomacy. the scheduling of his address means that it was prime time in the arab-speaking world. >> thank you. for six months, we have witnessed an external change taking place in the middle east and north africa. square by square, town by town, country by country, the people have risen up to demand their basic human rights. the question before us is what role america will play as the story unfolds. for decades, the united states has pursued a set of core interests in the region, countering terrorism and stopping the spread of nuclear weapons, securing the free flow of commerce and safeguarding the security of the region, standing up for israel's security and pursuing the arab-israeli peace.

>> obama said the u.s. would pursue its interests and stand by its allies. but admitted there must be more. >> the status quo is not sustainable. society's held together by fear and repression may offer the illusion of stability for a time. but they are built along fault lines that will eventually tear asunder. so we face an historic opportunity. we have the chance to show that america values the dignity of the street vendor in tunisia more than the raw power of the dictator. there must be no doubt that the united states of america welcomes change that it vances self-determination and opportunity. >> he said human rights and freedom of speech are essential. he admitted u.s. allies also

needed to respond to demands for change. >> but if america is to be credible we must acknowledge that, at times, our friends in the region have not all reacted to the demands for consistent change -- with a change that is consistent with the principles i outlined today. that is true in yemen. sala needs to follow through on his commitment to transfer power. that is true in bahrain could the only way forward is for the government and opposition to engage in a dialogue. you cannot have a real dialogue and parts of the peaceful opposition are in jail. [applause] >> one of the central messages was that there can be no change of people live in poverty. he pledged debt relief of $1 billion for egypt and another $1 billion in loans. then he broached the sensitive subject of the middle east

conflict. he emphasized that peace can only be achieved by the israelis and palestinians. israel must stop building settlements and he won the palestinians that they will reach nothing by one-sided act and violence. >> the united states believes that negotiations should result in two states with permanent palestinian borders with israel, jordan and egypt, and permanent israeli borders with palestine. we believe the borders of israel and palestine should be based on the 1967 lines with mutually agreed swaps so that secure and recognized borders are established for both state. >> finally, he drew parallels between the arabs spring and the history of the united states. >> there is no straight line to progress. hardship always accompanies a season of hope. the united states of america was founded on the belief that people should govern themselves.

now we can not hesitate to stand squarely on the side of those who are reaching for their rights, knowing that their success will bring about the world that is more peaceful, more stable, and more just. thank you very much, everybody. [applause] thank you. thank you. >> time for some analysis. i am joined by a middle east expert could welcome. what struck you as the significant thing in his speech today? >> i think it was remarkable that president obama was referring to the borders of a future palestinian state, mentioning that these borders should be those of the 1967 war. in other words, he made it clear to both sides, especially the israelis in this case, that all the occupied territories, including east jerusalem, will have to be returned to the palestinians. of course, there may be minor

swaps in territory, but, nevertheless, the message was very clear. >> many in the arab world considered it crucial for peace in the region. >> i think the resolve is lacking. there is a lot of wishful thinking, a lot of desire by the americans to get things moving. but it is difficult to negotiate with stubborn partners in the region. it will be difficult for mr. obama to really overdue his criticism of the israeli side. tomorrow, the israeli prime minister will be in washington. so he has to be of a careful not to estranged his israeli friends and allies. >> looking at the issue of jordan, there has been mixed reaction to the obama speech in the arab world. some say that arab leaders will not like it and air reformers

will not like it much. >> i think people will take notice of the speech, but they will not take care of his remarks. i think that he delivered a speech to years ago that left a much deeper impression on the arabs. of course, the american government failed to deliver. there was a lot of kind words, which will thinking, but not really action on the ground. it is now the arabs themselves that have changed in the middle east and the americans need to react. this is the basic message of the american president tonight saying, yes, we did understand that the middle east will have a new shape. it will never be the same again as it was in the past. and we, in america, understood that we need to change our policies. but to what direction? there is still some reckoning being done in washington care >> but there was support for

democratic change. he mentioned yemen and libya and even bahrain. is that important for the region? >> it was important, but still very vague. when he talked about bahrain, he is calling on the government to open a dialogue with the opposition. no more than that. bahrain has brutally crushed the rebellion in his country with saudi arabian help. it would have been advisable to find stronger wording there could of course, saudi arabia it is a staunch ally and the main provider of oil for this -- provider of oil. for this reason, we tend to be very careful. but this will not be sufficient in the long term pierre >> when did you find disappointing about the speech? >> there was no agenda for action. if there is a healing of the arab revolution, we have to see whether his actions will really follow these remarks tonight. >> it is always a pleasure to

talk with you. thank you very much for being with us. that wraps up our in-depth look on president barack obama's speech. it was great to have you with us.