>> hello and welcome to the journal on dw. >> here is a look at what coming up. the russian president puts forward a seven-point plan for peace in ukraine. >> obama calls russia a threat to peace in europe and promises to defend the baltic states. >> and a dawn raid in bosnia, part of the efforts stop islamist militants joining the fighting in iraq in syria. intense fighting has been reported in eastern ukraine despite talk of a cease-fire. pro-russian separatists and ukrainian government forces have continued to clash with heavy

artillery fire reported in the city. >> vladimir putin has proposed a seven-point plan for a truce. we'll get the latest from our correspondent in key of than just a moment but first, this report. >> a battle slept through this area. ukrainian soldiers were fighting pro-russian rebels here until recently. now the rebels are back in control. they are advancing on a new front and forcing ukrainian troops to retreat. >> the situation remains tense, especially in the east of the region. our troops are regrouping. we are changing tactics and moving toward a defensive strategy. >> political leaders are projecting an air of calm.

the ukrainian president spoke on the phone with his russian counterpart vladimir putin. the two reportedly discussed possible solutions to the crisis. later in mongolia, putin told reporters that he had worked out a seven step roadmap on his flight there. he said it was handwritten and proceeded to read out hearts of it. -- arts of parts of it. >> the military units must stop. second, ukrainian military units must pull back far enough that they cannot fire shells and artillery on residential areas. >> residents are skeptical about the possibility of a truce as fresh reports emerge of artillery attacks on the city outskirts. >> we are getting conflicting

reports about the possibility of a cease-fire. what can you tell us? >> i spoke to the spokesperson for the ukrainian military, action towards paving the way towards potential cease-fire. whether this is seen as a concrete for step is also something that was probably deliberately not pinned down so we will have to wait and see whether this is a changing situation on the ground and if fighting eases slightly. we also heard from a separatist leader that sees the withdrawal of the ukrainian troops as a

precondition for any subsidy. we are simply hearing there is regrouping taking place, they are in defensive mode. this could translate to them not seeking any further battle with separatist and staying put where they are. once again, we have to wait how things unfold. >> there is disagreement even within the ukrainian government between the president and the prime minister specifically on the issue of cease-fire. are they on the same page? >> it sounds like a disagreement and hopes that progress will be made in minsk due to take place on friday at the same time. the prime minister today basically slammed russia for

being the aggressor state saying that this talk of cease-fire was just a trick to basically all the west on the even of this key nato summit. let's not get this mixed up. both of them have very little trust if none left for vladimir putin. it appears that the president wants to try everything within his powers to achieve such a cease-fire deal. >> thank you for bringing us up-to-date there in kiev. france says it is suspending the delivery of a warship to russia amid concerns. >> dave is -- receives deep criticism from european countries but president hollande said the delivery of the first vessel will not go ahead for now.

whether or not there is a cease-fire in the ukraine, they cause alarm in the baltic states. >> they join nato in 2004 and president barack obama has assured the former soviet states he is committed to their security and their future is safe with support of the military alliance. >> obama was speaking in estonia where he sharply criticized moscow saying the aggression was a threat to peace in europe. he promised to station more u.s. soldiers there for training purposes.

>> as nato allies, we may have article five duties. it is unwavering and eternal. estonia will never stand alone. >> the u.s. president called for clear signals. >> the ukrainian sovereignty and right to defend its territory. ukraine needs more than words. nato needs to make concrete equipment -- commitments to strengthen security forces. >> the baltic nations have responded well to those words. other nato members have voiced strong misgivings about involvement in the ukraine.

the stage is set for a boisterous summit in wales. >> did the address live up to expectations? thomas wright, and next bird on strategy and international order at the brookings institution. >> this is a hugely important speech for obama. >> i thought it was an excellent speech and he accomplished what he needed to. it was important to go to estonia, make the speech there, reiterate the commitment to the defense of estonia. the baltic states given the russian challenge. i thought it was very clear he placed the whole issue in context about the importance of the alliance and what estonia has accomplished. i think it should be very happy and i think he went some way to telling couldn't that if he were to even think about messing

around in the baltics, the united states will respond. >> it is very much on article five of the nato treaty, this attack on one country is an attack on all members of nato. he said that guarantee is crystal clear but does that really stand up in the face of this sort of little green men that western observers see the russians having meddled in eastern ukraine? >> and the challenge they will have to work out over the weeks and. it is this gray zone warfare. there really isn't a proven sort of strategy to deal with that. i think parts of it will include stationing u.s. and nato troops there so that if estonians or latvians have to engage with russian separatists have allied

troops there as well but they will try to work out those details at the summit in wales and afterword. >> can nato stay united in the face of this? a sense that the americans are taking the lead here but the early elements of putting an increased nato force in these countries that might be nervous about that? >> i think it is a big culture shock for everyone. a year ago the summit would be about afghanistan or even six months ago and now there is a serious security challenge on europe's doorstep. i think it will take a lot of convincing to show that this new mission is important. i think the president was trying to start doing that today and we will see leaders do that at the summit in wales. and afterword. this prevention is to signal

that there would be a unified response if he did move against nato or eu members. >> most european leaders will hopefully go along with that and make the case for our own public. >> the baltic states have been watching the ukraine crisis with mounting concern. >> the former soviet states would have a hard time defending themselves from a possible russian incursion without nato help. latvia has 5000 soldiers, three old text of the soviet era and not a single fighter plane. -- three old tanks from the soviet era and not a single fighter plane. >> this is a training exercise at an army base not far from the russian border.

soldiers are aware of the overwhelming russian presence nearby. he is a professional soldier and says he is ready to do battle for his country if need be. russia isn't increasingly feared . ewald and tear to serve since there is no conscription. >> i have been in the army for nine months. i had the opportunity to advance. i could become the commander of a small army unit. i'm going to stick with this and see what comes of it. >> the infantrymen have the same modern assault rifle as germany's armed forces. but the rest of their equipment please -- leaves a lot to be desired. they deploy soldiers in case of an emergency.

they would have to depend on nato to perform that vital function. the commander says he would count on the north atlantic alliance to come to the aid of lot via. -- thalatvia. >> it is important for us. it is important for security and defense. we are not fully capable of facing big threats which could appear in our territory and we realize we need cooperation. >> it could include a rapid reaction force as several nato members have proposed. nato leaders are expected to agree to set up such a force. it's a plan that commanding general of the latvian army supports.

>> an important task for nato, they support any plans which should increase the speed of moving around troops. >> it is up to the politicians to make a decision. the infantry unit might be merged into the new multinational force and the recruit is proving up to the task. he scored a perfect 10 out of 10 a target practice. >> we will take a short break and when we come back, we will be taking a closer look at how islamist militants from europe are joining the fighting in iraq and syria. >> and we will be telling you about a french pharmaceutical company that says it has a vaccine against genji fever spread by mosquitoes. we will the details after the break.

>> the white house has confirmed that showing -- a video of the beheading of steven sotloff appears to be authentic. exit comes on the heels -- >> it comes on the heels of another american journalist being killed. >> the american freelance journalist steven sotloff was reported in syria when he went missing a year ago and has now been executed by islamic state militants.

he was killed because of air strack ice's positions on a rack. he said the u.s. would not be intimidated. >> killing innocent americans like steven, they have already failed. they failed because people a call around the world, americans are repulsed. we will not be intimidated. their horrific acts only unite us and stiffen the resolve to take the fight against these terrorists. >> ias is holding hundreds of people prisoner. the attempt failed.

>> the man who appears to kill him speaks with a british accent and that is fueling concerns that they are training the next generation of international terrorist. >> be islamic state is actively recruiting foreign fighters with social media campaigns and their tactics are working. recruits from across europe including countries like germany and bosnia have gone to fight in syria and iraq. >> european citizens that leave could bring back what they've learned when they return home. >> an early-morning raid in northern bosnia, authorities arrest exchange suspected islamic militants. bosnia has grappled with homegrown jihad is for years after an influx of foreign fighters, and hundreds are heading back to the middle east. >> the suspects are believed to be involved in financing

organizing and recruiting bosnian citizens to head for war in syria and iraq. ask many more have made their way out. 2500 are from europe, another 400 from germany. some say the remedies are at hand. >> if we have evidence someone wants to engage in jihad, we can limit his travel to within germany so he can't leave the country.

>> it may be easier said than done as 22 countries have abolished border controls. the security council is set to have a meeting on the threat posed by forein fighters. >> the president has visited berlin to meet with chancellor angela merkel. he is the first to visit in three decades. >> germany would increase support if myanmar holds free elections and is more to protect minorities. the country needs more time. >> they have presided over myanmar's modernization and the liberalization of its politics. the government has freed political prisoners and lifted media restrictions but detractors say they have stalled on much-needed changes to the constitution. in berlin, he was testy when asked about the timeframe for

reform with an election looming next year. >> we will try to change the constitution. >> deleter has collected 5 million signatures to amend the constitution. it currently reserves a quarter parliamentary seats for the armed forces which have effective veto power over constitutional changes. it also forbids anyone who has been married to a former -- to a foreigner to run for election. berlin hopes that the law may change in time. >> we have expressed our hope that the elections will be free, fair, and transparent. we hope that everyone has the opportunity to become a candidate and compete for their party. >> the election will take place at the end of next year and it is still unclear if there is momentum for constitutional

change to actually happen. angela merkel can do little to help except encourage democratic development. >> chinese leaders have celebrated the anniversary to the surrender at the end of the second world war. >> a ceremony to honor the soldiers killed in japan and china in 1937. is the first such event since china officially designated september 3 is victory day earlier this year. relations have come under strain recently fueled by japan's wartime legacy and territorial disputes between the two countries. >> french pharmaceutical company says it has developed a vaccine that has proven effective against genji fever in clinical trials. it could be on the market next year if it's approed by regulators. >> authorities are spraying

insecticide at a park in tokyo. as they battle the first local outbreak in almost 70 years. the mosquito borne disease can be fatal but with proper treatment, most patients survive. submitting regulatory act locations for the vaccine in the first quarter of 2015 and if all goes well, the french drugmaker could start selling the first at the end of the year. pharmaceuticals are a huge industry so let's turn the conrad and see how investors in frankfurt took that news. >> one billion euros a year is the forecast for how much money they might be able to make due to this new vaccine against inky dinkgengy fever. and other infectious diseases as well such as leprosy or sleeping sickness. this is the possibility to arise in countries like asia and africa. diseases which used to be local

and easily become a global threat these days. the stock market here and frank was up this wednesday, hope for peace in ukraine fueled demand. >> let stand frank for and take a closer look at the market numbers. euro stoxx ended the day up by nearly the same amount. the dow is currently in positive territory and the euro is trading at $1.31 daimler subsidiary says it is acquiring to transportation apps. one is the hamburg-based my taxi and the other is right scout from austin, texas. >> they hope to create an all-in-one mobility app for smart phones and says the acquisition will speed up global expansion. unlike the popular but controversial rival uber onl,

mytaxi only a less book with registered taxi users. no word on how much the deal cost. the european commission has hit three big chipmakers with hefty fines for alleged price fixing. they announced penalties of 138 million euros against philips and samsung. >> they bear the lion's share with $8 82 million. most of us love a good list. we rank soccer teams and pop music hits. even the fbi ranks their most wanted. economists are no different. every year the world economic forum issues a ranking of global competitiveness. >> it ranks 144 countries on various pillars like education, institutions, and infrastructure.

germany came fifth and the u.s. jumped ahead to claim third. >> the most important question is who is at the top. this year, for the sixth time -- [indiscernible] >> cheese, banks, and watches are the typical images of switzerland. despite the stereotypes, the country's economy is highly developed. universities were hand in hand with the business world and help train skilled workers and have many cooperation agreements for research and development so it shouldn't come as a surprise that switzerland the most patents per capita in the world. the infrastructure and internet network are also considered excellent. all that makes switzerland the most competitive country in the world economic forum's global rankings. it is followed by singapore, the usa, finland, and germany.

the u.s. moved ahead of germany after trailing its ally the last two years. they believe the minimum wage could adversely affect the economy after it is introduced next year. they also say germany has to create better job opportunities for women and foreigners. many germans will be retiring in the coming years and highly qualified candidates will have to replace them. >> stay with us. >> thanks for watching.

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