>> this is "bbc world news." >> funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation and union bank. [captions copyright national cable satellite corp. 2011] >> union bank has put its financial strength to work if a wide range of companies, from small businesses to major corporations.

what can we do for you? >> and now, "bbc world news." >> hello and welcome to news day on the become. >> the headlines. >> fears for the future of the euro zone as credit rating is downgraded. cussing the u.s. deficit. president obama says america's rich must pay their share. >> they are prepared to take their booed for statehood for the united nations, israel calls for direct talks. deadly clashes in yemen's capital. a fresh government crack down on protestors. >> it is 11:00 in the morning here in sync pour, 4:00 in the morning here in london, broadcasting to viewers around the world. this is news day.

>> the financial ratings agency standard and poor's has downgraded the rating for italy down a new hampshire. it based its decision on italy's weak economic growth as well as its assessment of the govern's coalition will face its issues. the country follows other nations, spain, ireland, greece, portugal and cypress in having its credit rating downgraded. the greek government has set it has held productive and substantive talks with international creditors as it becomes under further pressure for keep from defaulting on debt repayment. they had calls with auditors

from the eurozone and the international monetary fund. >> everyone in greece knows new painful austerity measures are on the way. protests against recent tax rises have begun. today greece has been in loan lorkses with e.u. and i.m.f. officials. this in a country where people are already hurting from previous rounds of cuts. the athens bike fair was a draw for many middle-class families. mock them was joanna, a public sector worker. she has seen her salary cut by 20%. she said she is scared. >> we are very careful of what we buy now. every time we go to the supermarket, we are very careful. we go with a list, and it has been a shorter and shorter list. we can't buy anything for the children anymore. >> when school started this

autumn, this family found a shortage of books in the classroom. just a week ago the government announced a property tax. the aim to raise two billion euros. >> for the scale of this area, it works out to 700 euros for this flat for a year in two installments. >> how do people feel about that? that is quite a lot of money for people. >> it is. the middle-class and property owners are getting outrageded. >> some have seen their salaries cut by 200 and 600 euros a month. >> due to the cuts, nearly 50% of all greek police vehicles and bikes can't be used. >> this is the man negotiating

for greece to receive further bailout fund to avoid defaulting. the i.m.f. criticized greece for falling behind. >> the ball is in the greek court. implementation is of the essence. >> yes, there have already been tax rises and pay cuts, but they haven't done the job. tax collection is a shambles, and the economy is shrinking. more cuts are on the way, but this time increasingly, the depreeks are re-- greeks are resisting. there were reports that the greeks are close to a deal to receive bailout fund. there is wide suppress speculation that thousands of public sector workers will be sacked as part of the plan. >> president obama has outlined a plan for cutting america's huge budget deficit, saying

corporations and the wealthiest citizens will have to pay higher tacts. he did not raise taxes for the rich. his opponents have described the president's approach as class warfare. here are the details. >> the gap between america's spending and income will be a staggering $1.3 trillion by the end of this year. amid growing fears about the unsustainability of this budget, president obama outlined his vision for curbing it. >> if we are not willing to ask those who have done extraordinarily well to help america close the deficit, then the logic, the math says everybody else has to do a whole lot more. we have to put the entire burden on the middle-class and the poor. that is unacceptable to me. that is unacceptable to the american people, and it will not happen on my watch. >> the president called for $1.5 trillion in new taxes,

including a minimum tax for those earning more than $1 million. believe it or not, this banker is one of a group calling themselves patriotic millionaires who want to pay more taxes. >> i have the use of more deductions and more credits than the people who have less. i have the use of more accountants and more sophisticated techniques. so on average, millionaires pay a lot less taxes, and we should be paying our fair share. >> president obama wants to be releablinged in just over a year's time. right now economic growth is anemic and unemployment is high. by coming out so strongly in favor of taxing the wealthy, the president is hoping to reenergize democrats and appeal to independent voters too. the democrats hope to rally the voters with their fairness slogan. the are not retort is class

warfare. the campaign is well underway. >> class warfare will divide this country more, divide people and it doesn't grow the economy. >> republicans are "g.m.a." nl -- gambling that the americans want spending cuts, not more attaches. >> president obama intends to. now he must wait and see if his tax policies are as populist as he thinks they are. "bbc news," barbt. >> a development between israel and the palestinians. >> the israeli prime minister, benjamin netanyahu has offered to hold direct peace taxi with the president of the palestinian peace authority, mahmoud abbas in new york this week. the proposal is being seen as an teapt to prevent mr. abbas of playing to the unsecurity council as a state. here is barbara.

>> the middle east is very much dominating the agenda this year. the main issue is this palestinian bid for u.n. membership which they say they are going to submit on friday. israel and the americans oppose this move. so that sets the scene for confrontation. there is a lot of diplomatic activity to neutralize this move to come up with a formula to get piece talks going again. mahmoud abbas is in a series of high-level meetings. he is going to see the british foreign minister wednesday morning. the palestinians are saying they are pretty murphy determined to go ahead with their decision on friday. that is in fact what they have told the secretary-general. most of this is going on behind the scenes. what is happening officially is a meeting on libya, which builds on decisions that were taken at the uniformity last week. -- the u.n. voted to give the

security council a seat here. they voted to start easing the sanctions that were imposed during the conflict and to set up aircraft to help the libyans in the political transition. we are not expecting a major decoration from the libyan meeting, but it is going to be a show of international support for the political process. >> from the united nations in new york. now there are fresh reports of an outbreak of violence in yemen, with two people killed in a reported rocket attack. in this news comes amid escalating violence between pro democracy opponents of the president and forces still loyal to him. activists say at least 50 people have been killed in the past few days. sheer more. >> they came to protest, to call once again for the president to step down after more than 30 years in power. this was the result. security forces opened fire.

people running for their lives. for many, there was no place to hide. ambulances rushed the casualties to hospitals. these are some of the worst days of violence since the andy pettitte government demonstrations began eight months ago. a major escalation of the crisis after months of political stalemate. as the ambulances arrive at hospital, crowds rush out to meet them. the wounded are carried inside. the hospitals appear to be overwhelmed by the numbers of casualties. many are treated just where they lie. and staff are struggling to copy. >> the main problem is we don't have enough hospitals. the five hospitals that we have are full of patients. operating rooms are also full. the second problem is a lack of medical supplies. >> and it is not just there. the violence and fighting has

spread to many parts of the country. this was taz in the south. he is still in sowed rain, where he is recovering from an attack in june. he is facing several challenges from demonstrators, tribes and militants. the international community is trying to organize a peaceful transition. a united nations envoy is there, but so far there has been no break through. months after the uprising against the president began, there is still no sign of how this cry ends. daniel griffith, "bbc news." >> we have a political analyst joining me on the line. thank you for joining us. tell us what you have seen over past few days? >> well, i was at the protest site when the violence broke out yesterday.

there was shooting into the crowd, which was an incredible scene. i learned later that an r.p.g. was fired into the crowd. >> there has been months of very little activity in terms of violence in the capital. what do you think has sparked these latest things that have been unfolded there? >> we were sad to -- trying to conclude the transfer of power. the signing was to be concluded in the next few days. there are those who find the political agreement against their interests on both sides, and they are responsible for this violence. >> what would you say who the government ministers?

it was said yesterday that the hard line is in opposition, that it is perhaps al qaeda and terrorist organizations that are call the trouble on the streets of yemen? >> that is completely baseless. the protest movement is broad-based with literally hundreds of thoses participating and millions supporting it. the government tries to discredit that. >> how do you see this situation being resolved? do you believe that political discussions may be under way, or that there could be a prospect of that? >> i think that the politicians can put and end to the violence by signing the agreement. however, there is a problem with the military situation as the army has taken over positions that are stiegally

important to both sides. i am hoping this well happen in the next couple of days. >> we are grateful for your time. thank you for joining. do stay safe. >> you are watching news day on the bbc, live from singapore and lyndon. still to come, fierce of casualties slows the advance on the gaddafi stronghold. >> the japan earthquake and tsunami have led many to desert their high-rise home. in the u.k., six men and a woman have been arrested as part of a major counterterrorism operation. they were did he taped in a series of raids in the city. the woman is being questioned on suspicion of with holding information. claire marshall reports. >> the operation to disrupt an

al qaeda-inspired terrorist plot involved counterterrorism police and mi-5. they say the threat was real and they acted in the interests of public safety. there were predawn raids across birmingham. officers weren't armed when they made the arrests, an indication they didn't plan to find firearms or explosives. >> this is an investigation that has been running for some time in the forensics unit. >> teams took great care to protect any potential evidence, wrapping this car. teams went to this house. they are conducting an extremely thorough search. they have been here all day. it is going to take a long time to examine everything they have found. >> he grew up with two of the men arrested. he didn't want to show his face. >> they are not terrorists.

all they did was to practice their religion. >> they want to foul a plote. >> al qaeda may not be the group it once was, but the threat of something has been is real. they are facing challenges from new groups. >> under the prevention of terrific act, police now have 14 days to question the suspect. claire marshall, "bbc news," birmingham. >> keep up to date with all the stories that we are covering on news day. visit the "bbc news" website and click on the link for full analysis and background. >> this is news day on bbc. i am in singapore. >> and in lyndon. fears are dwroge for the future of the eurozone. italy's credit rating has been

downgraded by one agency. >> president obama has outlined plans for cutting america's huge budget deficit, saying america rich much pay their share. >> the national transitional council of libya say their forces have captured the airport in a city of saba. they have captured his home town. well armed forces loyal to the former libyan leader have been fighting back. richard reports from the western side of the city. >> the new libyan air force coming in to land not far from the front lines, flying low to avoid being targeted by gaddafi's men. the mission here, not combat, but taking the wounded from the battlefield to hospitals. the pretty is sam, who was once

part of colonel gaddafi's armed forces. today he told me of his determination to help those fighting the gaddafi loyalists. it is an increasingly bloody battle. besides the many wounded, dozens of fighters loyal to the interim government have already been killed, and still no sign they are gaining much ground inside the city. >> well, right here we are still about 12 kilometers from the center of the city. yesterday this was safe. today it is no locker so. gaddafi's forces have moved out from the city, placing this whole area under threat once again. >> pinned down in territory in territory they once controlled, these fighters of the interim government now forced into a desperate defense. they are facing an enemy

prepared to fight to the bitter end. so, more and more families are fleeing the city. he left this morning. >> our neighborhood came under fire. people were killed, he said. so we decided to leave. it was dangerous. thank god we survived. >> the forces of the interim government have heavy weapons at the ready. but, a reluctance to use them, because causing civilians casualties would make them no better than colonel gaddafi. >> we are completely different. that is why we war against him, because he uses those weapons against us. we cannot be like him. we must be differ different. >> if you did use them, how long would it take you to gain control of the city? >> i think within 24 hours.

>> without using these weapons, the battle here could be long and difficult. "bbc news," on the outskirts. >> we have news of an important new report on disability in east timor. >> that is right. the united nations' integrate the mission is launching the first report by a peacekeeping mission on the rights of persons with disabilities. they want to create policies that respect the rights of persons with disabilities for education and retab pation. we are joined by a representative of the high commissioner of human rights for east timor. thank you for joining us. first of all, what are some of the key findings of this report? >> well, i am sitting and talking to you from a country that 12 years ago lay in ruins.

one of the key findings is that in a number of areas, the government has already begun to take important measures to see that the rights of the disabled are realized in education, health care, accessible at district level in terms of public buildings being more accessible to persons with disabilities. but there is still a lot to be done. this is a country on the fast track to develop with one of the highest growth rates in the world and no public date. it is an auspicious plan for them to invest in something that is going in the right direction because requires more attention and resources to fully realize the rights of the disabled. >> was there indeed a pressing need to commission this report? timor is one of the countries that has not ratified the convention of rights for persons with disabilities.

>> this is one of the objectives of the report as well. it is poised to be a leader in the area of human rights. one of the criteria or benchmarks in terms of human rights leadership will be ratification of core conventions. they have ratified most of the human rights conventions, but the convention on disabilities is one yet to be ratified. we lopez with this report we will show there are reasonable measures that can be taken not only to encourage ratification, but also improve the lives of the more than 48,000 disabled people here who are people with great potential if they have the opportunity to realize that potential. >> thank you so much for joining us. meanwhile, one of japan's richest men, a property

developer, has called for the country to stop building skyscrapers after the earthquake and tsunami in march. sales of high rise apartments have plummeted. our report from tokyo. >> on a clear day, she can see mount fuji from her window. it is the kind of view people from tokyo prize. but being 30 floors up wasn't so good in march. as furniture crashed around her, she thought she would die, and she can't wait to leave. >> when the next big one hits, i am worried this building would collapse. i want to move closer to the ground. >> during the earthquake in march, offices and homes were shaken violently. people rushed out to street level where they tried to comfort each other. looking at tokyo now, it is as if nothing happened.

not a single tower here fell her nor in the north, closer to the epicenter. but people who were inside can't forget the fear they felt. some of japan's biggest buildings were developed by mori, making him a billionaire. but he says the era of ever taller skyscrapers is over. >> electricity, water, gas, they will lose them. people have to buy food, but the elevator won't work. even if you are safe, the infrastructure to live will have gone. before, five floors -- high floors were popular, but now it has changed. >> others say more technology is the answer. this test facility is running a precise simulation of how the march quake felt. they are confident special foundations and bracings can

make their buildings to withstand anything. the challenge is to make them feel that way. >> there were no problems with building safety. but as you saw and experienced, swaying made people living high up afraid. there were cases of furniture falling down. we must reduce the swaying as well as improve safety. >> the great earthquake of 2011 left tokyo's skyline unscathed, but they ma change in the years to come. the japanese have been reminded of the vulnerability of their capital, perched on top of fault lines, and a great view now has much less appeal. "bbc news," tokyo. >> you have been watching news days here on the bbc. thanks for watching. we will see you again soon.

>> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation and union bank. >> union bank offers unique

insight and expertise in a range of industries. what can we do for you? >> "bbc world news" was presented by kcet, los angeles.