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tv   Journal  PBS  July 31, 2012 6:30pm-7:00pm PDT

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>> welcome to the "journal" coming to you from dw in berlin. >> here is what is coming up in the next half hour -- israel and france to show unity in the debt crisis, but what does germany think of their plans? >> day four of fighting in aleppo. still no decisive break in syria's biggest city. >> shut down in india -- life grinds to a halt for millions after another massive power cut. >> it is another day of shuttle diplomacy in the eu debt crisis. today, it was the leaders of france and italy who got
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together. their message -- they will do everything to defend the eurozone. >> that is a turn of phrase we have heard a lot from eu leaders in the past few days from the head of the european central bank, mario draghi, to angela merkel right here in germany. >> what exactly does everything mean and do all those leaders in the same thing? that is by no means certain. >> in particular, the idea of giving a banking license to the eurozone's rescue fund looks like a big sticking point. >> francois hollande and mario monti vowed to do everything to protect the euro, though they did not disclose whether that would mean pressing through the european stability mechanism to have a banking license so that the permanent bailout fund had direct access to the european central bank. hollande and monti stressed they will act in unison. >> our relationship has reached an important point. in order to iron out the issues,
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including future ones, which are our area of responsibility, so that we can strengthen and consolidate the eurozone. >> they said this means implementing the decisions taken at the last eu summit as soon as possible. the new stability mechanism could start helping cash- strapped eurozone countries by buying up government bonds. >> in order to preserve the stability and strength of the eurozone and promote growth, it is very important for us all not to allow our concentration to waver for even a minute. >> the meeting between hollande and monti may well give food for thought to german chancellor angela merkel, who is currently on holiday. germany so far has been firmly opposed to the idea of providing the esm with a banking license. >> let's take a closer look at this idea. >> the whole point would be to
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give more firepower to the fund. with a banking license, it could borrow huge amounts of money from the european central bank and use it to buy more bonds from the likes of italy and spain. >> but as we heard in the report, the idea is very controversial in germany. in madrid, it seems a step that could make a big difference. >> the summer has not eased the eurozone's woes, especially not in spain. last week, spanish bond yields soared to about 7%, a level that many analysts say is unsustainable in the long run, but that is where the european stability mechanism is supposed to come in. some southern european -- some southern european eurozone members are pushing to boost its firepower. they envision the esm as a bank that could buy bonds from dead- ridden governments -- debt- ridden governments.
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the ec would not be directly aiding governments, which violates the institutions treaty -- the ecb. critics say the proposal does just that, and cash would be financed from the ecb -- funneled from the ecb to the governments in a roundabout way. the ecb has as much power to burn as much money as it once but not the reserve to back it up. germany has warned against the option, saying it will lead to inflation and an even more serious crisis. -- the ecb has the power to furnish as much money as it wants. >> tell us a little bit more about the arguments why, and do you think something may reverse course on it? >> this is not a new idea. it was promoted a year ago by france. at the time, there was opposition to it not just from
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the german government, but from most european governments, but, of course, the crisis was not as deep then as it is now. the main opposition to it is threefold -- first, it is not covered by the existing treaties. secondly, it would certainly compromise the independence of the european central bank. thirdly, there are concerns that simply printing money would discourage debtor nations from implementing reform, as happened in 2010, after a major bond purchase of italian bonds. italy simply abandoned its reform measures. >> as we have been seeing, there has been all this subtle diplomacy between european leaders over the past few days. it was initiated by comments by mario draghi last week. there's a lot of hope for some sort of big solution to the crisis. what is the view in berlin? >> the general view is things have to go there course as agreed, but there is also --
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there are grave misgivings about giving more power to the ecb and to the supervisory structures -- until supervisory structures are in place at the very least. those misgivings have been strengthened by recent reports in the last few days that mario draghi himself is under investigation by the eu ombudsman by -- for a possible conflict of interest that he has retained his interest in a powerful banking lobby after taking control of the ecb. >> mario draghi himself seeing some heat their possibly. thanks for that. >> amid all the jockeying over rescue funds and banking licenses, today, another reminder of the human cost of this crisis. >> unemployment in the eurozone has hit another record high at 11.2%. in many countries, it is even worse. in spain, the figure is almost 25%. >> the disparities are huge.
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the unemployment in austria's just over 4%, and in germany, the labor market still looks robust. >> the german labour minister still does not think euro -- german jobs are at risk because of the euro crisis -- the german labor minister. she says the slight increase in unemployment in july is normal. the number of jobless in germany has increased to over 2.8 million, but unemployment remained at 6.8%. in the eurozone as a whole, however, unemployment in june, as in may, was at a record high of 11.2%. this poses a danger to german exports. >> surveys show that overall, companies are skeptical, waiting to see what happens. the german labor market is robust and healthy, but it is not immune to the spillover effects from the eurozone. >> that applies to the 8 million
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germans who work in non-standard jobs. part-time, temping, or jobs with short-term contracts. that is where any economic decline first appears, but it has not happened yet. >> the goal must be clear to everyone -- we must defend the euro. that is our joint task within the eurozone. >> the labor minister said germany is not only strong in europe but also powerful because of europe. >> deutsche bank says it will cut almost 2000 jobs. >> the announcement came after a serious hit to earnings. second quarter profit dropped by 46%. the bank's leadership team blames the steep losses on the investment banking division and the eurozone debt crisis. >> it is the first time dutch bank's new co-heads have had to present results. the sharp drop in profits from
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the investment banking business is particularly embarrassing for jane, who used to run the division. it fell to 61 million euros. investment banking took a nosedive and brought in even less than retail banking. as a result, deutsche bank has announced it will cut 1500 jobs in that division alone, but that is not the only problem facing the bank. market regulators have launched a special probe into the suspected manipulation of the libor interbank lending rate, and deutsche bank could face billions in fines and penalties. >> those weak earnings results had an impact on the broader market in europe as well. the blue-chip dax closed the day just slightly lower and similar story for the year of st -- euro stoxx 50. the dow jones industrial average
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also slightly lower in the day. the euro trading at $1.2306. >> crisis in syria, it is day four of the regime's offensive against rebels in the city of aleppo. both sides have been claiming successes, but it is very hard to verify those claims. >> the district of salahadin looks like a war zone. rebels are using everything they have got to defend against the onslaught from government forces. general who deserted to the opposition dismissed claims that the army had taken control of the area. >> the regime has tried to retake salahuddin for three days, but it has failed and suffered heavy losses in life, weaponry, and tanks. >> it is impossible to verify those claims or those that activists are fighting their way into the city center.
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the regime appears to be relying on combat, aircraft, and artillery attacks, but it is not just the commercial capital that has come under fire. other parts of the region also bear the scars of war. 30 kilometers away, it has been devastated. rebel fighters from the free syrian army say they now control the area, but most residents have fled. those who flee to turkey are safe, but often require urgent medical treatment. >> i came home and family house struck by a missile. my wife and my son were dead. my daughter lost her eye, and my other daughter lost her fingers. >> the united nations refugee agency estimates that last weekend alone, some 2000 people fled the area in and around aleppo. >> while the fighting continues in syria, tens of thousands of people are on the move trying to
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escape the violence. >> meanwhile, journalists are trying to get in still to cover developments. smugglers have to be paid to travel in either direction. we made it to the city closest to the border with turkey, which is now under the control of the rebel free syrian army. >> we received this report on the journey and the conditions. >> smugglers charge 500 euros to take you across the border. there is a fence, but it is relatively porous. the trip involves considerable stretches on foot. one risk is the presence of turkish patrols. this one evidently did not notice us. much of northern syria is controlled by the free syrian army. the unofficial capital of rebel- controlled syria is a town about 30 kilometers northwest of aleppo.
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65,000 people lived here until recently, but as many as 2/3 of them have fled. more than a week ago, the three syrian army drove syrian government troops out of the city after a series of bloody clashes. hundreds of residents died in the fighting. the rebels may be triumphant, but many residents also feel grief over the events. >> no muslim with done what out -- no muscle would do what assad has done -- no muslim would do what assad has done. only an animal. i have lost three members of my family. >> and military council runs the district and distributes food, but not everything runs smoothly. >> we have syria's problems here. people have to wait up to two
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hours to get bread. lots of our food has to be smuggled over the border. >> there is the sectarian tension. the city is almost completely sunni. headquarters had been taken over by the military council. inside, someone has defaced president assad's portrait. the rebels must do more than show defiance. creating a new syria would be a major undertaking. >> we want syria to become a free democratic republic. here in azaz, we are in a land guard compared to the rest of the country. we hope to live up to our responsibilities. >> even the town's marketplace seems to be getting back to normal as residents consider a future without bashar al assad. >> we will take a short break and be back in a few minutes' time with more about the power
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cut affecting over 600 million in india. >> and news from the olympics after the break. >> stay with us.
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>> welcome back. the lights are still out for many people in india. a massive power failure continues across the country's north and east after three regional power grids collapse. >> some 600 million people are affected by the blackout. india's federal energy minister said the outage was caused by the state's soaring power beyond their limits. >> a similar power outage was experienced monday in the country's north. officials were able to restore power than but not for very long. >> the indian capital has come to a grinding halt. the metric system has shut down, and trains are standing still, leaving thousands stranded and very frustrated. >> we have had to wait more than one hour for the metro.
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yesterday, there was a major breakdown, and again today, and there is nobody to give an explanation. >> people who would otherwise use the subway have had to take to the already congested streets, adding to the commuter chaos. cars and trucks can barely move. many store owners in delhi has switched to generators to keep the lights on and their businesses running. hospitals were also forced to turn to emergency generators. the blackout has raised concerns about india's ability to meet the growing demand for energy. >> let's turn to germany now because experts are already planning just how to deal with the country's energy grid as it phases out nuclear power in the next decade. >> all options are on the table in terms of increasing the number of sources to get clean energy. one of them is biofuels, but
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there are snags. when it comes to planting crops, farmers often devote huge areas to a single crop like corn, but green groups say it is not good for the environment, which benefits from more for it. >> that is why researchers outside berlin are experimenting with one way to introduce some diversity into farmers' fields. >> two pioneers on their way to their garden of weeds. he is in his second year of cultivating wild flowers, and he works together with his seed expert. >> we wait two or three weeks for the harvest so plants can soak up the last bit of water and maybe get a final growth spurt. >> the idea is to harvest energy from wild flowers. >> there has been a big increase in public pressure on the farming industry to not
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just plant monocultures, but to bring a bit of diversity into the fields and try to grow different kinds of plants to create mixes like we do here and then convert that into biogas. >> this is the biogas facility. when he started using it 11 years ago, he was the first in the area. since last year, he has also been fermenting his wild flowers and capturing their biogas. for every kilowatt hour of energy producers, he gets 22 cents. he also uses the gas to keep his pigsty -- heat his pigsty. the mix is not yet economically viable, but the idea is innovative. plant a crop of perennials, and they grow on their own for five years. every year, since a new type of
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flower -- he sends a new type of flour. >> not everything you produce can be measured in dollars. sometimes you have to value having fun at work. sometimes there is nothing more beautiful than driving to the fields -- driving through the field after a shower of rain. >> they are also important for the balance of nature. bees love to come to the fields of wild flower. he is still experimenting with varietals, trying to find out which flowers lend themselves best to energy production. every seed matures at a different time. that poses a challenge. >> you have to work the fields all year, depending on when the prime harvesttime falls. we harvest from may to october. it is nice on the one hand because you can spread out the work. on the other hand, you have to watch your fields all year and
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pay attention so you do not miss anything. >> they are watching a video of last year's harvest. they are impressed by the mass of flowers they produced, and those -- and knows they are on the right track. >> the operator of the fukushima nuclear plant in japan is now owned by the government. >> germany's government invested an estimated 1210. -- 12.4 million euros in the firm to keep it from going bankrupt. enormous cost since the catastrophe have nearly ruined the company. united nations teams are heading to it is a flood-hit areas of north korea to assess what the country needs in terms of possible aid. officials estimate -- they put the number of dead from the floods at approximately 88. >> tens of thousands of people
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have been made homeless. as if that was not enough, north korea is already facing a food crisis. >> these families are waiting for any help they can get. heavy rains have submerged villages and rice paddies and forced people onto rooftops since sunday. bridges and roads in the region have been heavily damaged. 2/3 of the population base chronic food shortages, and the severe weather has only made things worse. >> our assessment teams on the ground have reported back that the most serious needs are, of course, shelter and also food security with so many crops having been damaged. drinking water is a critical issue with water systems having been taken out of action. >> north korea's leader has yet to comment on the flooding disaster. friday, he attended celebrations
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marking 59 years since the korean war armistice. the floods, in the wake of a severe drought, adding to the woes of an already suffering people. >> in a couple of minutes, we will get the latest from the olympics. >> first, some other stories making headlines. >> two car bombs have exploded in the iraqi capital, killing at least 19 people and wounding dozens more. six of the dead are reported to be police officers. the attacks took place in russia. >> u.s. presidential hopeful mitt romney has ended his overseas tour in poland, including a trip to a monument. his trip has been marred by a series of gaffes that left some offended during his visits to
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britain and the palestinian territory. >> violence against journalists in mexico has risen dramatically. one newspaper in monterrey has been attacked three times this month already. mexico is considered to be one of the most dangerous countries in the world for journalists. at least 80 to reporters have been killed there since 2000 while doing their job. >> the power struggle continues between romania's top two politicians. the president managed to escape impeachment because of turnout, which was too low. >> his rival, the prime minister, says he should resign. the feud between the two men has raised concerns, but it shows no signs of ending anytime soon. >> there was a sober mood here in central bucharest on the day after the failed referendum, but the few hearty protesters called for removal. he criticized the actions of his political opponent in try to
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have him removed. the fact is, commands a majority in parliament does not give them the right to violate the constitution. the referendum failed because of a lack of interest rather than support for the president. of those who did use their ballots, 87% voted to impeach. he says any politician who ignores the votes of 9 million romanians is not living in the real world. socialists accuse the president of abusing his position and acting unconstitutionally, but he says his opponent attempted to mount a coup. he appears to have won this fight, but battle for supremacy between the two rivals looks set to enter another round. >> in moscow, one of president vladimir putin's faces critics has been charged with embezzlement in what critics say is a targeted at tend to
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stifle him -- one of president vladimir putin's cheers -- fiercest critics. >> he faces up to 10 years in prison if found guilty. time to get to the olympics in london, and germany have enjoyed ptheir most successful day. >> they won a handful of metals including two gold at the olympic equestrian stadium a greenwich park -- a handful of medals including two gold at the olympic equestrian stadium at greenwich park. >> in men's judo, germany was beaten in the final of the 81 kilogram division. south korea finally won gold
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after capturing a silver medal in beijing. and at the lee valley whitewater center, germany held his them to finish second in the final of the canoe slalom. the frenchman added a third olympic gold medal to his trophy cabinet. >> of course, there is a lot more going on at the olympics in the coming hours. >> exactly. check it out on our website, dw.de, for more. >> stay with us here on dw. captioned by the national captioning institute --www.ncicap.org--
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