♪ >> hello, and welcome to the "journal" on dw. >> i am steve chaid. coming up -- >> the greeks socialist leader evangelist venizelos admit defeat in the latest attempt to form a government in athens. >> america's biggest bank jpmorgan chase is under investigation after losing more than $2 billion in six weeks. >> and united nations to adopt new guidelines to defend the land rights of poor farmers and indigenous peoples. ♪

>> looks like in greece, the first to form a government have all but failed after talks collapsed again. >> to the previous coalition and since this would also fell. this time the greek president gave a minute to the center-left pasok the kaman third in sunday's elections. the party head lead negotiations on friday. he appeared before the media to say he would return the mandate to the president on saturday. that opens the way for the president to call a last-ditch meeting between all party leaders, but few expect that to yield any results. and fresh elections loom if reece fails to form and emergency unity government by thursday -- if greece fell to form an emergency unity government. >> let's go to brian williams in athens is following talks. what does this mean? our coalition talks now effectively dead? >> well, there is one of the row

of the guys left. the meeting that you mentioned the president is calling for all of the seven party leaders who have made it into parliament. that will be held probably on monday, and there'll be two days of talks there to see if he can bang their heads together and somehow get some coalition out of them. but i think in the view of most people, that is going to be a step too far again. the most likely scenario is that on june 17, greece will be voting yet again in an election. >> the signal the financial markets are getting from greek voters is that one out of the euro, but polls show that they want to stay in. >> well, i think it is the contradiction everybody is asking about. they want to stay in the euro but they do not want to pay a price for that.

time and time again, it seems that the greeks the first with their hearts and then they start to use their heads. and then maybe they will come to a decision that would be in favor of staying in the euro rather than inventing their anger at the austerity measures that have gone through. >> with elections increasingly likely in june, is a greek exit from the eurozone a matter of time? >> well, if the radical left, which was the second party in the elections, wins those elections on june 17, and opinion polls seem to point to that at the moment, then it will be very, very likely that greece will be heading for the door. the eu and of the troika members have made very clear that this greece that tracks from the austerity measures, then there will be no need for them to stay in the euro.

they will be -- there will be no other choice for them. >> brian williams, as ever, thank you so much. the german finance minister wolfgang bashary blood has suggested that the eurozone could handle a -- wolfgang scheuble has suggested that the years of good handle putting pressure on countries are anti bailout sentiment is strong. spain is one of them. >> to turn things around there, the government has launched a reform program that is tough on banks, but austerity has already led to such damage to the tax revenues in spain are plummeting as thousands continue to lose their jobs, businesses, and homes. >> the european commissioner for economic affairs confirmed that the european economy is a troubled but said he was optimistic about the potential for recovery. >> the european economy is estimated to be currently in a mild but short-lived recession. however, gdp growth will remain,

as i said, soft and uneven across member states. >> he said poland had the highest growth rate in the eu. he said spade at its work cut out, curbing spending for regional governments to meet its targets -- he said spain had its work cut out. france also have to reduce spending. spain is headed for a budget deficit of 6.3% next year. at 4.2 the son, france will be well over the 3% maximum allowed. germany, by contract, will probably see a deficit of 0.7%. the deficit for the eurozone as a whole should come in at under 3%. the commissioner said greece was still the main source of concern for the eu, but said he hoped leaders would soon form a new government and get down to work to rescue its failing economy. >> u.s. banking regulators are investigating possible legal violations in connection with

the huge losses announced by jpmorgan chase, america's biggest bank that confirmed on thursday that it lost $2 billion in the past six weeks as a result of a failed hedging strategy. shares have fallen by about 9% in friday trading. the sec became aware of jpmorgan's activities in april and opened a formal investigation in recent days. the ceo had tried to play down the story prior to thursday's announcement. but he now admits to an egregious mistakes having been made. well, of course, news of the greek coalition talks collapsing came after european markets closed, and equity markets in europe were able to shake off early losses and end the week on a positive note. ad sent us this summary of friday's trading action in frankfurt. >> the news from spain was

positively received on the trading floor here. of course the government in madrid potentially widens the deficit further if it injects money into the banking sector in order to make the capital bases of the bank's more stable. but what counts for the markets is that with these measures, the banks in spain are made fit and strong to survive the crisis. the news about the $2 billion loss at jpmorgan chase was a big topic for traders here, because it was one of the banks which had intensively lobbied against more market regulation, claiming that if a bank has a decent risk management, investment banking can be made safe. >> well, there's some good news for mobile phone users here in europe who travel with their phones. but first, we will be going on to talk about how the markets did wrap up the week here in

europe. the dax finished up by nearly 1%, 6579. the euro stoxx 50 up by 0.3%, 2254. on wall street, the dow at this hour trading slightly lower1lower2,825. on currency markets, the european trading slightly lower, $1.2922. as stated, there is some good news for mobile phone users in europe who travel with their phones. >> european parliament has passed a measure capping roaming costs for calls and internet usage. one stage in a plan to stop the kind of build shocked that roaming users know all too well -- bill shock. >> eu residents to use their mobile phones abroad have a big bills, but now brussels is saying to suit the roaming

charges to the starting in july, phone calls made in other eu countries will be capped at 29 cents a minute. that drops even further to 19 cents in 2014. text message charges will drop to 9 cents this july and 6 cents in 2014. for the first time, there is a cap on mobile internet charges. 70 cents a megabyte. that goes down to 20 cents in 2014. it is very good news for mobile phone users on the the go. but europe's politicians have not stopped yet. >> i hope we get to the stage in europe where we have one uniform rate for phone charges, where there is no difference between calls made in your own country and abroad. >> that might be easier said than done. phone companies are already campaigning hevily against the changes. >> other international news now, official figures from algeria show the ruling party has won yesterday's parliamentary elections. president abdelaziz

bouteflika's national liberation front took 220 out of 462 seats. the national democratic rally took 68 seats. an alliance of three islamic parties placed a distant third. they have complained that the vote was unfair and not balanced. it was algeria's first free parliamentary vote in 20 years. >> in a short moment, we will be looking at syria a day after two explosions killed over 50 people in damascus. >> first, here are some of the other stories making news around the world. pirates had seized a greek-owned tanker off the coast of oman. the vessel is carrying 135 tons of crude oil. there have been several pirate attacks in recent days, but this is the first successful seizure of an oil tanker off the horn of africa in more than a year. >> rescue workers in indonesia have recovered 12 bodies from the site where a russian jet

crashed into the side of a volcano near jakarta. all 45 of the plane's passengers and crew are presumed dead. the super jet went down during a demonstration flight on wednesday. the cause of the accident remains unclear. >> here in germany, workers in metal and electronics industry are continuing their strike in several cities. they are seeking a 6.5% pay raise. guaranteed job offers for trainees and less use of temporary staff. on friday, their union ig metal rejected an offer of a 3% pay rise. this area now, where forces there say they have foiled an attempted suicide car bombing car1200 kilograms of explosives in the northern city of aleppo. the would-be bomber was killed in syria's largest city which has seen clashes between pro and anti-government militias. >> twin bombings in damascus

yesterday left more than 50 people dead. the government blames the foreign-supported opposition groups, in charge denied by the anti-assad coalition. in damascus this friday, people have been taking stock of the attack. >> a day after the carnage, clean up work has begun and people are grappling with what has happened in their midst. around a ton of explosives devastated buildings even hundreds of meters away. people living in the neighborhood have been left bitter and scared. >> look at this. it says it all. our livelihoods, our old lives and a security dog. it is is a tragedy. >> western intelligence agencies are not ruling out the possibility that al qaeda was involved in the attack. but some syrian opposition groups offer a different explanation. >> in an online video, a commander of the free syrian

army blamed president assad and his gangs for thursday's bombings. >> after four years of work and 8 billion euros of investment, south korea's international expo is opening on saturday at a glittering high tech venue. >> a total of 104 countries and 10 international organizations will be staging exhibitions there over the next three months. under the theme, living ocean and coast. organizers hope for about 10 million visitors to the small south coast city. ♪ >> south korea opened the expo with a showcase celebration of modern and ancient korean culture. visitors got a taste of traditional korean music and some of the country's pop tunes. ♪ this giant basin on the southern

coast was built especially for the expo. the so-called big o represents the special theme. >> the theme is the beautiful coexistence of the ocean and humankind. it is about a win-win harmony between nature and civilization. the first time and expo has had this kind of theme. >> more than 100 countries and organizations have planned exhibitions here for the month to come. up to 10 million visitors are expected at the expo grounds to see shows highlighting the country's national traditions and technological achievements. >> that looks pretty good. >> yes. looking forward to the fireworks. >> we will be back after a short break. when we come back, we will be looking at this coalition talks in greece, how they broke down, and what it means not only for greece but for the eurozone. >> looks like it'll be a long and hot weekend in athens. find out more about it in a minute.

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>> the next time you eat out, helping the 850 million people in the world who go hungry. donate the cost of a desert to the world food program. >> thank you so much for staying with us but the greek socialist leader, evangelist venizelos, as in the failure to form a government in athens. the announcement came after a key leftist party ruled out joining a pro-austerity coalition. >> there is now a very real possibility that greece will end up with an anti-austerity coalition and abandon efforts to remain eligible for its international bailout. that reality has prompted a key policy makers in europe to speak in recent days about a greek exit from the eurozone. anyway you look at it, greece's position is dire. the greek economy is caught in a nightmarish traffic. >> this is of the country would

like to be seen, as innovative and investor-friendly. but in reality, there are few start-up companies in greece, and unemployment remains high. many people are impoverished, and a lack of income means a shrinking tax base, generating less revenue for the state. the unemployment rate was 9.4% in 2009. it is expected to reach 19.5% by the end of this year as massive job losses continued in both the public and private sectors. greece is in a protracted recession. in 2011, gdp shrank by about 7% and the international monetary fund expects it to contract by a further 5% this year. yesterday, the eurozone rescue fund disbursed 4.2 billion euros to greece. more than 3 billion will go to paying off a debt to the european central bank next week. 1 billion was withheld and might

be paid out in june. representatives of the so-called troika make up of the ecb, ims, and the eu make regular visits to monitor athens' adherence to austerity measures. further tehran edges of the rescue package are contingent on progress. -- further tranches of the rescue package are contingent on progress. current estimates say interest charges will add another 62 billion euros by 2057. the current rescue package is the only thing keeping greece from sovereignty fall. unless athens manages to install a functioning government before the next troika visit in june, it may find that it's eu and imf funding sibley dries up. >> the chancellor angela merkel is hoping to keep germany's economy growing with a number of tax cuts, but that plan it

setback friday when the second chamber of parliament, the bundestag, blocked legislation that would have lead to billions in tax cuts. greg it is control but is under lip opposition. the measures have already been approved by the bundestag, so that means the entire package must now go back to committee. >> outside, a protest against the government's plan to cut subsidies for the solar power industry. inside, a majority also opposed the cuts, including politicians from angela merkel's: cdu party. the government also failed to have its tax cuts passed. the social democrats and the greens say this is not the time to cut tax revenues by 6 billion euros. >> tax cuts are not the answer. on the contrary, we need more income despite aggressive efforts to cut spending. >> solar subsidies and tax cuts promised to remain contentious issues. the government will have to

listen to what the federal states and the opposition parties have to say. >> in recent years, there has been growing controversy over multinational corporations buying and leasing comments sways of rich farmland in pour rations ranging from ukraine to you got to. what has become to be known as a land grammy, there has been a steady destruction of small farming communities, independent food production, and traditional ways of rural life. >> there is light in the story today. the u.n.'s food and agriculture organization has taken the first step to track down the -- -- crackdown on this problem. they adopted a set of guidelines to safeguard. these are especially helpful for developing countries as they draw up laws to protect small- scale farmers. >> for the time being, the guidelines are only voluntary, but they're still being hailed as a major -- major landmark.

>> roses for europe. soy for the growing demand for biofuel. palm oil for the global market. investors are pouring funds into developing countries to grow crops for exports and in fields that used to be cultivated by small farmers. critics call that land grabbing. >> the problem occurs always when there are poorly defined and unenforceable property rights on agricultural land in developing countries. foreign direct investors can strike deals with the government, and there is a consequence. farmers can be driven off their land without proper compensation for the loss of their property rights. >> at least 45 states are affected by large-scale acquisitions of land. ngo's collect the information that is available. of the total arable land in

uruguay, 27% is formed by outsiders. in paris white, 37%. even more in laos, 41%. in liberia, 67% is under foreign control. in congo, 6%. more has been promised to the investors. theoretically, all of the country's agricultural land. in addition to private investors, more and more for an estate funds are buying land to keep up with demand in their own countries. the contracts are signed with governments. the people affected are seldom compensated. new guidelines put forward by the fao would end such practices. they would give small farmers more input and recognize land ownership rights. the guidelines are non-binding, but they could raise the pressure on investors.

>> if they do not stick to the guidelines for the criticism will increase. this will minimize their chances of additional foreign direct investment in other countries. >> but that could have a negative effect on more than the investors. developing countries need funding and no help from abroad. all participants would benefit from their contracts. >> as we just saw, it is especially parts of africa where prime farm, pastor, and wetlands are very scarce resources. kenya is one example where the small traditional farmer is being put under real pressure. >> local landowners say the weigh let -- the way land is being bought in fenced off is keeping them from accessing water sources and their livelihoods are at risk. >> an american company recently moved into one of these fertile regions with promises to create jobs and prosperity, but the exact opposite is actually what went down.

>> this young bull is sick, and he only has seven head of cattle. together, they make him a small income. things used to be different. he once had a whole barnyard full of animals. >> we used to get a lot of sales. the milk and the fish from the swamp. >> his family has lived for generations here in the swamp near lake victoria, one of kenya's few fertile areas. eight years ago, american investors, the dominion group, least half the fields here. their growing rice. the deal required dominion to invest in the community and create local jobs. the menu's land is fenced off,

threatening -- dominion's land is fenced off, and the farmers pastures and fields are smaller. their traditional usage rights they have looked for help from forngo's. chris is a local lawyer who has taken up the farmers' cause. >> this land is supposed to be managed by the communities. so they must have a say. >> the farmers of to get a hearing with the investors and local authorities. he says land-use rights must be renegotiated. >> the land is the most paramount thing. if you get the land, you can be very productive. but if you do not have land, you have to be employed and underpaid. >> security officers hired by dominion did not allow us to film on their land. a manager explained that they

were worried about bad press. he was not available for an interview. but the farmers have achieved something. the districts have set new conditions for dominion to extend its contract. >> there are certain aspects that will be added -- [unintelligible] we will not do that until we agree on the amount they will pay. >> the farmers say they have nothing against investors, but he says that any deal must be fair so the farmers can get back what they have lost. >> some sports. formula one has arrived in europe for the fifth race of the season. the action gets underway this week and with the spanish grand prix just outside barcelona. jason was in good form, the fastest in sunday's race. he had an advantage over the red bull defending champions.

third for mercedes. >> what just four weeks to go before the european soccer championships kick off, germany's national team is priming itself for the competition. part of coach low's squad left for trading camp on friday. the midfielder met others at frankfurt airport, as did the newcomer from a shotgun. the rest of the players will joint training once they have wrapped up their club commitments. >> stay with us. we will have more news at the top of the hour. ♪ captioned by the national captioning institute --www.ncicap.org-- ♪

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