>> hello, everyone. welcome to "the journal." coming up, in a special session of parliament, the british prime minister defends his actions in the phone hacking scandal. police arrest the last alleged wartime fugitive accused of atrocities committed during the balkan war. famine hits the horn of africa. 3 million people in somalia could die of starvation.

yesterday, rupert murdoch was in the hot seat and to date it was a british prime minister david cameron. he was called on to explain his links to the defunct news of the world newspaper which is at the center of a hacking scandal. he faced a barrage of questions. there was questions about his decision to hire andy coulson as his media chief. >> the right hon. gentleman. >> a stormy session in parliament. david cameron rallied his party as he deflected criticism. he has announced an inquiry into the phone hacking affair. at the heart of the scandal, there are questions about the cozy relationship between the police come and media, and politicians in britain. >> i am the first prime minister to publish meetings between senior executives, private

tears -- proprietors. this stretches right back to the general election. >> it was his decision to fire the former "news of the world," editor andy coulson that is drawing the most criticism. there are questions about whether andy coulson knew about the illegal activity on his watch. >> he was caught in a tragic conflict of loyalty between the standards and integrity that people should expect of him and his staff and his personal allegiance to andy coulson. he made the wrong choice. >> you don't make decisions in hindsight, you make them in the present. you live and you learn and to believe you me, i have learned. >> the labor leader pointed out that downing street had been warned over andy coulson's past.

the opposition also alleges that cameron has met 26 times with representatives from murdoch's companies since taking office. >> let's get the continuing impact of this whole scandal on rupert murdoch's empire. >> this is a massive empire. amid the fallout before his appearance, the largest public pension fund in the u.s. which also happens to be one of the most influential investors is stepping up the pressure for a drastic overhaul of the way that news corp. is run. the california public employee retirement system which manages hundreds of billions worth of assets with by the changes made that will limit murdoch lost power. it is one of the clear signs that his leadership is under threat. here is a look at his presence here in germany. >> soccer live on the cable

channel, at least for those that are prepared to cough up the cash. this is all that remains of rupert murdoch's empire in germany. it is running at a loss and does not have enough subscribers. in britain, his sky sports holds the rights to most soccer matches. he has not had much success in the economy. he debuted here with a tabloid. it flopped. then he got involved in a television station but they were not profitable and he sold them. his current plight is a new experience. there are calls for him to resign as ceo of news corp., he is holding his ground. >> more business on the way but now back to megan. >> the manhunt for serbia's most

wanted a war criminal is over. the former leader goran hadzic is the last key to this to be caught. he is wanted for atrocities in croatia. -- goran hadzic is the last fugitive to be caught. >> the judge has confirmed his identity in the hague. he will be officially charged before extradition to the u.n. war crimes tribunal. what's this arrest brings to a close of our cooperation with the hague tribunal. -- >> this arrest brings to a close our cooperation with they hague tribunal. we'll continue to live up to our obligations. >> he was a leader in the minority. he was accused of orchestrating a massacre where an estimated

260 croatian prisoners were murdered. it is for this crime that he will face trial. he went into hiding after the indictment was issued in 2004. with his arrest, serbia is garnering praise throughout europe. >> this is a milestone for international justice. this is a step towards strengthening international law. >> and serbia moves forward to do with the problems of the past. a future that i believe that has a strong european perspective. >> the government of serbia hopes they will be considered for eu membership. with goran hadzic soon behind bars, a dark chapter in european history will be at an end. >> 3 million people could soon starve to death in somalia. the u.n. says there is famine in

the south of the country. the u.n. agencies have appealed to the rebels to allow free passage for food shipments. tens of thousands of somalis have fled to a refugee camp in kenya. >> of this woman has walked 3,000 kilometers with her 8 children. in search of food, they have arrived at this refugee camp in kenya. mary robinson, the former irish president, would like the world to see the plight of this woman and the tens of thousands like her. >> i have never been able to get somalia out of my skin, if you like, since i was here in 1992. i look around and see that these

are very resilient people. they just want food and water initially for their families. >> aid organizations said that thing should never have been allowed to get this bad. -- say that this should have never been allowed to get this bad. >> they have done about this for months. we have been working on this since last october. it is only now that it has reached a critical tipping point. >> aid groups say that a billion dollars is needed to avoid a catastrophe. so far, 1/5 has been made available. oxfam calls that willful negligence. this family has survived the arduous trek. many of the refugees that are right are so weakened by the attorneys that they can only watch them die. -- weakened by the journey that the aid workers can only watch them die.

>> there was an attempt to kill adolf hitler and this was the most important act of rebellion. in july 20th, 1944, a group of german officers tried to assassinate hitler. they paid with their lives. >> the block in berlin now houses the german defense ministry. 67 years ago, the officers who planned to kill hitler were executed here. on wednesday, the president laid a wreath at the site where the officers died. on july the 20th, 1944, they planted a bomb in hitler's east plunker. the bomb exploded but t n too dictator surviveit

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population spent less than 10% of their income on foodis reasoe ason cheaperinednt are replacing expensive high- quality bonds. >> a good day for norway in the rtifree. >> that's right,he cli has won the 17th stage. -- a gd yor norway in the tort to france. fish 40 seconds ahead of the second place rider. this is what it loo like near the ine of thursday's 18th leg at the summit. this is the highest stage finish in the history of the store. -- of the tour. theou arin cc

championship is underway in argentina. uruguay s ok a spot in the final after defeating through -- after defeating peru. >> uruguay's of vtory trged cebti ithe capital after the game. suarez was the man of the match. he scoredn the 52nd minute. five minutes later tree s ai peru's fate w sealed when one of their players got a red card. th wl face eitr paragu or venezuela will meet in the other semifinals later today. >> more businessewafr short break. >> a massive order in t

aviation sector. we will have all the details comingp stick around.

>> american airlines has announced the largestiraf order in history. this involves 460 firm orders. the deal is split between boeing anit european art rival, airbus. the last time american airlines ordered these was in the late 1980's. th did to buy exclusively from boeing. >> and longtime loyal boeing customer is turning to their european rivals. amic alis is purchasing 260 short and medium term planes from airbus. the move is part of t

airline's tendency to have the youngest fleet in the u.s. within five years. american airlines and its bsiaesadot fleet of 900 aircraft. they are all boeing and of mcdonnell douglas models. many of them have an ara age of 15 years. if the u.s. company urges -- urgently needs to modernize their fleet. they chose airbus because of the plane makers fuel efficient models. the high fuel consumptionofhe older planes and high jet fuel companies -- high jet fuel costs have weighed on the company' relt they incurred losses of $286 million. >> how are investors reacting? t' join our new york correspondent. a record order by american airlines but it involves airbus je aweas boeing. tell us about market reaction.

>> this seems to be a win, win, n tuio boeing was increasing 3% in early trading. boeing i getting an order for 200 planes, even if airbus gets the bigger piece of the cake. usfrom my own experience, i can say that it is definitely necessary for american airlines toethe fleet updated. also, american airlines trading higher on wednesday. >> they had a chance to react to apple's better than expected earnings. how are they reacting? >> this is one of t bte stocks here in the wednesday session. the numbers were pretty amazing. iphone sales increased by 140% and ipod sales were even better. all of the numbers came in much

higher than expect. apple is not reaching the $400 leve it looked like they had on tuesday night right after the earnings came out. this was one of the better performers on wall street. >> in general, the marketis a bit hesitant. it looks like the market is flat. what is weighing on sentiment? >> they had a strong day on tuesday, the best day of the year. now they will take it a bit easier. actually, they are taking it much easier. there is hardly any volume. there are some signs that an agreement about increasing the debt ceiling might be reached within the next couple of days. the people that i talked to have said that even if a deal is reached in the next couple of days, it might be tough to get everything signed in time for the deadline of august 2nd. maybe it is washington thats keeping traders up the sideline. >> thank you very much.

yahoo! second quarter earnings were a disappointment. this is down by 25%. the losses mainly due to a slump in advertising sales which were once the company's driving force. the company still managed to increase profit by 11 of% partially due to cost-cutting measures. as concern about the contagion from the greek crisis grows, greek has concerns of their own. they have reacted with an austerity measures. critics say it will take a toll on the elderly and pensions will not be increased to stay on par with the cost of living and fees for doctors visits are set to increase. italians are worried about the changes. >> these women are getting used to their new apartment which they got through a church organization. she only gets a pension of

about 500 euros a month as to about 40% of italian retirees. she is worried about the impending cutbacks. >> unfortunately, we're in a very bad situation. the government should think about things better and examine their consciences. >> the government bonds austerity package will mean more hardships for the elderly and the sick. -- the government's austerity package will mean more hardships. >> how my supposed to get by on 500 euros a month? well i have to start paying for medicine? i need the medicine every 20 days. >> many people are expected an increase in their cost of living. taxes and prices are set to rise and times will get tougher for the country's retirees. >> a german energy giant is pushing for a nationwide network of smart farmers.

landholders to diversify in renewable energy. the trouble is that in a base system that controls the sporadic production of electricity from wind, solar, and biogas. we have set up base margaret in the district's of western germany. >> -- we have set up a base in the districts of western germany. >> this pharma is focusing on more lucrative activity, alternative energy. -- this former -- this farmer is focusing on more lucrative activity, alternative energy. he is turning into an energy farmer. >> you have to know what to do if there are variations in the quality of the gas. we have a bit of a learning curve at the beginning and we

have paid for it in economic terms. >> those problems are long behind them now. his corn and manila were based gas plant is being supported by a german energy giant as part of their smart country program. they have even built a storage unit on the farm. for the project supervisor is, this is a useful addition to other green sources of energy such as solar power, which only works during the day. >> we turn the output down to zero during the day so this is not feeding anything into the network. then, during the night, the plant can supply a lot more power to the energy grid. >> even at this at this stage, the book as evidence see the farm as a model that could be implemented. -- the representatives see the farm as a model that could be

replicated across germany. >> the chances are good, especially the sort of plant that mr. hofmann is running here. this is a good example of finding a way to adjust the right to the supply of energy to meet demand. >> electricity generated by wind turbines, solar cells, and other eco friendly sources needs and network called a smart grid. the technology is also being tested. >> we can now check on the voltage of the network in real time. then we can react instantly and either raise or lower the voltage as necessary. >> rwe will be monitoring the project. they hope to be able to see if this system is efficient enough to safely balance out supply and

demand. >> if you are smart, you will stick around for the weather. that is coming up next.