captioned by the national captioning institute --www.ncicap.org-- >> growth rates in germany surged to new highs, powered by exports and investment. more humanitarian aid comes to pakistan as disease and hunger pose a threat to flood victims. will germany's defense minister target conscription in his sweeping military reforms? germany has posted its highest growth rate in two decades. figures released todayy show tht europe's biggest economy has accelerated sharply, due to a surge in exports and investment.

>> results exceed analyst expectations. the federal statistics office said sond arter gdp rose at 2.2%. that is the fastest pace of growth since reunification in 1990. analysts had forecast an anemic 1.3% growth. germany's export-driven economy has been profiting from the global recovery as demand soars for products made in germany. >> germany's strong export industry was the driving force behind the recovery. chininwas one of germany's biggest trading partners in the first half of the year. analysts are predicting a return to pre-crisis export levels. it is welcome news for the government. >> this recovery is still not an economic miracle, but it is more than a large epps way. private investment in exports is improving. >> after the recession in 2009,

germany's gdp slowly started picking up in the spring. in the first quarter of 2010, it grew by 0.5%. in the second quarter, it shot up by 2.2%, its fastest pace in 23 years. it was not just exports fueling growth. domestic consumption also rose in the first half of the year. >> it is surprising that nsumer spending also contributed to the growth spurt. we thought consumers felt unsettled because of the euro crisis and political developments in germany. the effect of consumer -- we expected consumer sentiment to remain sluggish. >> the booming export market has boosted the engineering sector in particular. the industry took a battering in 2009. some companies are hiring again to keep up with demand. >> the better than expected german and eurozone of gdp data failed to ignite european

markets. investors chose to focus on regions where economic activity has stalled, like in the u.s. more on the day's trading from the frankfurt stock exchange. >> you can observe a certain continuity in the german equities market, but that was not necessarily od news for investor for the fourth day in a row, the dax went down. there was tremendous economic data from germany. economic growth is strongest it has been for over 20 years. traders say that is backwards pointing. what is more important is the future. they're people are worried about what the u.s. economy will be doing could it fall back into recession. that overshadows everything. the dax was down for the week, losing over 2%. >> uli is in frankfurt, looking at market indexes. the blue-chip dax index finished the trading day down 0.4% to

6110. the era stocks 50 index was down about the same percentage. in the york, we see the dow industrials finished the trading day on friday down just a bit, to 10,303. on the currency markets, at the euro was trading for $1.2750. the french economy rose. french gdp aged -- edged up 0.6%. the economy in the netherlands is also picking up speed. preliminary estimates pegged the country's second quarter gdp growth at 0.9%. the spanish economy is still struggling, growing only 0.2% between april and june. >> thank you, peter. more flooding is expected in pakistan as monsoon rains continue and dams threaten to burst.

authitiesa the ollen river will continue to rise as it passes through punta of province. more than 400,000 people have been evacuated from a town ahead of expected flooding. many residents refuse to leave their homes, concerned about abandoning their possessions. normally, pakistan would be getting ready to celebrate its independence day tomorrow. the government has cancelled celebrations in deference to the suffering of 14 million flood victims. aid agencies in pakistan say many are in grave danger of contracting waterborne diseases such as cholera and malaria. under is also a drastic. the price of food has soared. >> doctors have their hands full, but few means at their disposal. many victims are being cared for in improvised places because hospitals have been destroyed. the lack of medical supplies and drinking water is making the

situation even more difficult. >> access to clean drinking water thereisno can water at all. if we do not manage this, there will be more people dying. children are dying now. >> the un has registered 36,000 cases of severe diarrhea. >> there is no clean water. this place is dirty and the mosquito's keep us awake. there is no power for hours on end. the children cannot sleep and we cannot celebrate ramadan. we begin our fast with drinking water and we break it with water. >> at least one case of cholera has been reported in the northwest. the u.n. fears that could be just the beginning. the cholera epidemic would intensify the plight of an already suffering people.

>> iran is set to launch its first nuclear power reactor next week, despite ongoing international controversy over the nuclear program. russia says it will begin losing fuel into the reactor on august 21. german companies began the project in the 1970's, but tehran handed it over to russia in 1995. the plants -- the plants launch has been repeatedly delayed. they fear that it could be reprocessed into weapons-grade plutonium. burma has set a date for the first elections in 20 years. state television said elections will be held on november 7. -- but pro-democracy groups say this will not bring significant change to burma. the opposition leader and thousands of followers are banned from standing. syung-chi is still under

house arrest. the berlin wall separated family members from one another overnight. the mayor of berlin and other officials attended an official ceremony remembering those who died while trying to escape communist east germany, which instructed borderuardto shoot to kill. here is what one berliner had to say about those years of hostility and division. >> since late 1989, the berlin wall has been little more than a tourist attraction and historical artifact. but 49 years ago, they woke up in east berlin to hear of the wall's construction. he later fled to the west. >> it was like being in prison. we could not leave. this is where our world came to an end. >> on august 13, 1961, the east german communist government shut

down the border in a bid to keep citizens from fleeing. 1.6 million people had already left, seeking a better life. an animated graphic depicts the death strip. there is the 4 meter high ball that split a city and an entire country. >> it is important not to idealize life in east germanyny they say it was not so bad and you had a decent life. >> today, he guides tour groups on walks along the wall. he hopes to remind people what life in east germany was really like. >> let us go back to peter for more business news. >> the economic recovery in the u.s. -- the u.s. markets open to a slow start. there are more signs that the economic recovery in america is slowing down. consumer sentiment inched up ightly by 0.4% in july, but

fell short of predictions. analysts attribute poor sales numbers to the high unemployment rate still plaguing the country. consumer spending makes up 70% of the u.s. economy. experts believe that economic growth in the u.s. could continue to suffer through the end of this year. german automobile maker volkswagen is also showing strong signs of recovery after tough times in the automobile industry. vw sold more than 4 million cars in the first seven months of this year. that is a record for the company. volkswagen reported a 13% jump in sales compared to last year. that is thanks to large business in china. the automaker sold more than 1 million cars there alone this year. vw is looking to capitalize on the growing market in southeast asia. the company will work in cooperation with a malaysian autumn a group.

as germany's economy picks up speed, the country's largest [unintelligie] is following suit. the company has posted profits of over 410 million euros. that is its best result in seven quarters. it benefited from a rise in demand from the auto industry. the company has raised its outlook for the fiscal year ending in september. it expects earnings to be markedly higher compared with last year. in the shipping and logistics industries, there were hard hit by the global recession. now the international business is picking up again. container transport is growing again. the company that operates the port of hamburg said it handles 9% more containers of this year than in the same time last year. hhla has forecast higher volumes for the next quarter, as well as strong full-year growth.

>> thanks. germany's defense minister is thinking about eliminating compulsory military service, according to media reports. in the face of cost-cutting pressure, the ministry has put together different proposals for ovhauling tharmeforces. he reportedly favors one that would reduce the size of the army by about one-third and large the end conscription. the minister is due to present the options next week to chancellor angela merkle. officer cadets for the german navy taking their oath may represent the future of the armed forces, but that our volunteer professionals, not conscripts. the president did not address the issue, even though it is unpopular with the conservatives. >> the forces ha to be able to rely on having what they need to successfully do their job. >> to do that, the army needs money -- money that the defense

minister does not have. in fact, he needs to save 8.3 billion year rose by 2014. according to preliminary figures, the number of short- term and career soldiers would be cut from 195,000 to 156,000. on top of that, there would be 7500 conscripts. >> these are the figures i have been privy to. it would mean a significant reduction in the size of the forces. >> compulsory national service would practically ceased to exist, but wouou stay within the constitution. the opposition social democrats are not happy about the proposed measures. >> 7.5000 are too few. it is not worth the effort to make a voluntary force attractive. >> the denseinister wi lay out pls toarliament next week. a german diver has won her second gold medal in as many

days at the european swimming championships in budapest. after a surprise win in the 10 meter platform, she teamed up to take the 10-meter center platform event. silver went to ukraine and great britain. another diving medal -- bold in the 3 meter springboard. a silver medalaln the men's 100 meter freestyle. a frehman outpacehim in the final stretch to win gold. italy came third. german soccer news -- a future in international football may be less than bright if the former german coaches and the thing to say. he said the team needs a captain committed to staying with the team for at least three years, something that balloch has ruled out. he was forced to step aside ahead of the world cup. he is competing to regain the post. klutzy has had a tough year.

once the undisputed captain of the german team, he faces an uncertain future on the squad. an ankle injury sidelined him during this summer's world cup. but the german team powered through to third place, despite the captain's absence. philip lam says he wants to keep the arm band. germany's coach has yet to announce a decision on the captain question. it is a subject that has sparked heated debate. meanwhile, the sporting director of the team is adding fuel to the fire. when someone states that they only want to play for two more years, and the coach of the national team has a three or four year plan, it is legitimate to consider whether it really makes sense for both parties. could his days on the national squad the number? other questions played his

private life. comments made by former teammate have sparked rumors that he may have been involved with lum's girlfriend. his normally savvy consulting team has yet to address speculation. with his image its stake, he has a tough road ahead to get his reputation back on track. >> the berlin zoo that brought you knut the polar bear now has black panther cubs. they are both the male. there were born last month at the zoo in the german capital. unlike in the wild, where the big male catholic child-care to the females, the cubs faeras been ting anctivole looking after them. >> become's father? >> very liberated. very berlin. >> a hockey dead, taking care of the cubs. >> stay with us.

>> welcome back. 10 years ago, a group of berlin- based classical music fans decided that talented youth orchestras deserved a larger here. defended eight festival to give them a platform. hask ge on to success. it attracts talents from across the world. young musicians have delighted audiences with their fresh and partitions of classics and exciting interpretations of contemporary music that is not often heard. the focus this year is on the countries of the itself causes. three use orchestras with a unique tradition will be giving a -- three youth orchestras with a unique tradition will be giving performances at the festival. we accompanied the orchestra up from georgia. >> it has been a long flight. it is a relief to arrive in berlin.

have their instruments survived unscathed? , performing at the young hero classic means they have joined an exclusive circle. -- the young euro classic. >> i think they are one of the best posts in the world. >> the young musicians have a full day to prepare for their performance. they are excited to be in berlin. he plays below, while she is a violinist. ahead of their rehearsal, they set off with a conductor to see the sights. their first stop is the state opera house. back home in georgia, the musicians played at the opera house there. [laughter] >> i play music to serve my

family. >> there are many good conductors who came to us. >> berlin's philharmonic concert hall is a stone's throw away from the boulevard. as the finally stand on the stage of the legendary berlin institution, the musicians are beside themselves with emotion. >> i think it is unbelievable that we are standing in the me place where they conducted beautiful pieces. >> we will also perform here. >> achieving dreams like that one means working here. -- means working hard. the have hours of rehearsal.

this is a difficult piece that requires intense concentration. it is a world premiere by a georgian composer. the young musicians are particularly keen to try their hand at contemporary compositions. >> for every musician it is important to know all kinds of types of vegetation -- of education. you do not have a narrow education. you can see and hear and realize what you like more. >> finally, it is on to the concert house for the final rehearsal. they will play georgia works along with crowd favorites like mozart. the orchestra hopes it will win

over the audience with a mix of old and new. >> it is very important for us. many musicians and may be many new friends. >> they are going places, and the young euro classic festival is a major step. >> musicians from other big john are also playing. there is a newly created orchestra of southeastern europe, made up of musicians from germany and the former yugoslav republics. the worked closely in rehearsals to harmonize their talent. the effort was put to the tes at the opening concert. it was billed as the first in a series of performances celebrating togetherness and tolerance. we caught up with two members who embarked on the musical journey.

>> this is genta. this is marina. they are on their way to play in one of the most promising ensembles, the festival orchestra of southeastern europe. the to have just met on their way to rehearsals. not long ago, their parents' generation was a war. but th are here to make music together. 22-year-d genta is from cause a vote. she plays below. -- is from cosovo. she plays viola. there were children during the war. >> we were young. we do not know what was in our country. we are all together here. it isreat. you can say we are a little bit of ambassadors of our countries.

we get to know each other here and we will probably stay in contact afterward. >> he is my boyfriend. >> the young women are getting to know each other in the old- fashioned way, by looking at photos of their friends and family back home. >> this is my graduation concert. >> there is a commentary on being with certain people. >> genta is a muslim who belongs to the majority of kosovo. she is proud of her flag. she celebrated when her country declared herself independent two years ago. kosovo was a battleground in the late 1990's, when serbian armies

fought against the kla. belgrade claimed kosovo. many lost their lives or had to flee. nato troops intervened and forced belgrade to retreat, laying the groundwork for kosovo's independence. serbia still refuses to recognize its sovereignty. beethoven's seventh, played by musicians from two sides of the ethnic divide, together in one symphony orchestra. >> the political situation is affecting us at some point. somehow, it has a bad impact in a sometimes. but i am looking forward to being free and not having any boundaries, like every western country to move freely everywhere we want.

[music] >> now is better because we do not he things we do not need for many countries. i think everything will be better soon. >> for thehe the conflicts of their parents' generation belong to the past. [laughter] [music] young euro classic has brought these physicians together, playing their part in bringing harmony to the balkans. [music] [laughter] [applause] >> that has been our in-depth report. thanks for watching.

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