>> hello and welcome to the "journal." >> welcome. >> top stories now -- christians from ronald begin gathering in bethlehem to celebrate christmas. -- christians from our from the world -- christians from around the world. icy weather causes transport shutdown spirit and the russian and then-president hailed the bork -- hailed u.s. president barack obama for ratification of the new start treaty. hello and welcome.

in bethlehem, record numbers of pilgrims and touristhave congregated to celebrate christmas. israel issued permits for 7000 palestinian christians from the west bank to visit bethlehem and also allowed several hundred of the tiny christian community to attend the festivities. them at christmas festivities began in bethlehem with the arrival of the latin patriarch of jerusalem, who led the traditional procession. he will later celebrate midnighh mass. >> we are for the same things as last year -- peace and love -- and this year, we also asked for rain. >> drought is once again an acute problem in the region, but the biggest region remains the division of the holy land. the procession also passed by barbwire and concrete walls. this strict room clock security of the church of the nativity, but let him residents -- bethlehem residents have not

given up hope of change. >> we hope that next year, peace will prevail not only in bethlehem, but all over the world. this is the ssag of bethlehem. this is the message of the prince of peace, our lord, jesus christ. >> tens of thousands of visitors are expected in bethlehem in the coming days. this year has seen record numbers. >> i think it is a great thing to be here in bethlehem. everybody seems to be so happy. >> they are happy to be so close to this special place where the scriptures say jesus christ was bo more than 2000 years ago. >> the vatican is preparing for a traditional christmas midnight mass. pope benedict xvi will provide -- preside over the ceremony. the radio message was delivered to the british people on the bbc

on wednesday, on the importance of christmas. he said the birth of christ has brought liberation, though not by military or political means. the first ever message of its kind on the bbc. pope benedict's visit -- visit to september in december. a brief window of whether opportunity in europe seems to be shutting down again, just as international hubs clear the backlog of stranded passengers, on came the next big storm. this time, it is a paris airport that has been worst hit. one terminal had to be evacuated because of snow accumulation. in germany, some roads and rail routes are nearly impossible. >> freezing rain loaded motorways with eyes, causing numerous accidents across german in the eastern state of saxony, several trucks collided, and cars created a pile up as their cars lost hold on the slippery

surface. at least one person died. another died in the central state where his car slid off the road and crashed into a tree. nine other vehicles were involved in the accident. travelers who took to the rails faired a little better, but there were delays. before dawn, for as an overhead power cables meant hundreds of passengers were stuck on the route from hannover to berlin. travelers put a brave face on the situation. >> nothing more can be done in this weather. i will be happy to arrive at all. >> at some point, i will be sitting by the christmas tree. >> a shortage of deicers kept many planes grounded in paris. thousands of people are stopped, and passengers are frustrated as they wait for information about when they will be able to fly. >> i'm very angry.

there are several reasons for this. i booked my flight with air france because i thoht i would get quality service, given the price. >> the situation of brussels' main airport is much the same. passengers wait for hours in queues, but with only one runway up and running, most are getting nowhere fast. >> hungarian prime minister viktor or banned is standing by a controversial new media law and has vowed not to amend it. he brushed off widespread international criticism, which takes effect next week, and creeds and authority to regulate media content. the move has sparked condemnation from the european movement. hungary takes over from the six- month presidency in germany -- in january. russia's lower house of parliament has approved the new

start nuclear arms reduction treaty in a first reading, but wmakers made clear that the treaty would need to be voted in two additional meetings last year -- next year before ratification. the russian president praised his u.s. counterpart for achieving ratification of the treaty. >> russian state television has been advertising president medvedev's end of year round up for days. it was a question and answer session with the heads of three major broadcasters. medvedev spoke of his achievement. >> we are about to sign a highly imrtant treaty with the americans. the strategic nuclear weapons reduction treaty. this document is the cornerstone for insuring security in the coming decades, both in the world and in europe. >> key events of 2010 that medvedev did mention include the terrorist attacks on the moscow

subway in march. more than 40 died. hundreds were injured. chechen militants claimed responsibility, but the security forces did not bring peace to the region. medvedev also spoke about security reforms to the region. >> the modernization of our country is progressing. towards the end of the year faster than at the start, but we are still at the beginning. >> dmitry medvedev has been in office for over two years now. as y y, he has not achieved much in the way of domestic reform, but he has changed the course of moscow's foreign policy. that a new treaty will level the playing field between russia and the u.s. at a time when his own reform plan for russia is faltering. >> the united nations general assembly has recognized the

winner of ivory coast presidential election and called for the incumbent president to step down. bagbow has so far refused to give up power, claiming the poll was rigged. united nations also accuses forces of harassing u.s. peacekeepers. the u.s., france, and regional powers are considering moves to reinforce the troops. some of the retailers in germany are not exactly sad at the moment. >> that is absolutely true. retailers in germany are so happy because sales are strong as customers are spending more money than they have in the last five years. the buying frenzy is not ending early, either. until last minute, shoppers are hitting stores. just like every year, quite a few procrastinators were looking for last-minute gifts on christmas eve, and the icy sidewalks did not make things easier, but this year's robust

holiday turnover is good news for the retail sector. >> retailers are very satisfied wiwi christmas sales. the season began very strong, and there were some weather- related declines in between. as a whole, we are expecting the 2.5% rise in christmas sales this year, compared to the same time last year. >> the early arrival of winter led to an upsurge in demand for warm clothing. after this year's recovery, the increase in christmas turnover is the icing on the cake for retailers. last year's sales declined 2%, and this year, they are forecast to rise 115%, and the sector expects the buying mood to continue in the new year. >> germany is expected to remain the motor of economic growth in europe going into 2011. that is e prognosis of the eagle institute, which says the

german economy will expand 2.4% next year. the pace of growth will also create some 300,000 new jobs. the institute believes the number of unemployed will fall to 2.9 million. it is also forecasting an increase in wages. german wage growth has been stagnant for several years. the germans might soon have to ration their coffee. traditional coffee and cake parties. coffee prices are at record highs this christmas time. coffee lovers may end up paying 50 cents more per pound in the new year. a similar spike in prices is expected for raw sugar as extreme weather takes its toll on harvests around the world. >> colombian plantations usually provide the world's third largest coffee harvest, but that is unlikely this year. yields there have been hit hard by some of the strongest brainstorms in three decades, and that has caused prices to surge. unrest stemming from the disputed ivory coast

presidential vote has also boosted prices. this month, the price of high quality arabica coffee beans on world markets has climbed 15% to $2.40 a pound. sugar prices are also soaring and have now more than doubled since may. at $820 a metric ton, sugar is now as expensive as one it last spike in the early 1980's. in brazil, heat waves have ruined sugar harvests there, leaving the reigning market leader struggling to meet delivery targets. with global stocks of coffee and sugar still very low, alysts say prices will remain high well into the first quarter of next year. >> soccer's world governing party fears it could be hit hard by the collapse of its licensing brand group. the singapore company was appointed fifa's exclusive

licensing agents through 2014. fifa said it was still assessing the bankruptcy in trying to contact company's the seal contcts with global brands. >> rum is on high alert today after two bomb attacks at the swiss and chilean embassies on thursday -- rome is on high alert. the crime bears similarititi to the parcel bomb sent last month to embassies in athens. >> christmas shoppers in rome showed signs of nervousness following the attacks on two embassies. newspapers reported extensively on the explosion, but many people are focusing on more pleasant things. >> at christmas time, we italians normally think about dinner. we are content and mary, but now, we are all a little wary. >> it is all a question of stability. if the government is stable, everything will be all right. >> police in rome found a letter

in the chilean embassy claiming responsibility for the attack. it was signed by an anarchist group called fai, which has been implicated in several attacks on italian and european institutions since 2003. >> are around two months ago, some small gasoline bottles were deposited here near the embassy -- around two months ago. as we know, a month later, there were similar events in athens. >> the anarchist group's statement contained a reference to a greek activist killed in a firefight with police in march 2010. that has led investigators to believe there may be links to groups in greece and spain. security has now been stepped up in embassies across rome as well as in the area around the vatican. there are worries that more explosives may turn up after being held up in the christmas

mail. >> a huge fire has destroyed three medieval buildings in the southern german town of constance. firefighters were on the scene within minutes. there were fears the fire could spread to other buildings in the picturesque town center constructed in the 15th century. the fire was so intense -- you can see this building coming down -- that in fact several buildings that collapsed. police believe the blaze could have possibly been caused by a candle. now, christmas traditions are very strong here in germany. many germans may no longer be churchgoers, but they do all the christmas eve things such as going to christmas markets and caroling services with religious fervor. you might think that would pose a few challenges for the country's large turkish community, but as the proved during the soccer world cup when many german turks double flag

their houses and cars, this community is adept at cultural compromise. business picks up at christmas time. christians and muslims come into the store to buy suites for the holiday season. the window is festively decorated. this turkish retailer sees no conflict between christmas traditions and islamic beliefs. >> we also celebrate together. we have a good meal. we also buy presents and send cards. >> nearly 1/3 of residents are immigrants. most o9 them from muslim countries. still, the symbols of christmas are widespread here. most people decide for themselves just how much they want to get into the holiday spirit. >> i was born in berlin, and i know the german mentality. i have been enjoying christmas for 30 years. >> little kids get presents, but

the big ones feel it. >> we market with german colleagues, and we do not celebrate it. >> but t e most important thing is that the customers like his goods. whether or not they celebrate christmas. >> with our german troops deployed in afghanistan, they may be missing family get- togethers at home, but that is not dampening christmas cheer at the military base. as a way of reducing homesickness, soldiers have created a traditional german -- here is -- christmas market. there they all are celebrating the holiday with yummy brought worst, mulled wine, and best of all, they waffles' -- yummy bratwurst. the one thing they will definitely have to do without is the snow. that is something that area and

i have trudged through the past couple of weeks. >> yes, that's no problem. i'm canadian. i challenge you to a snowball fight after this.

>> welcome back to business. german retailers say the season is shaping up to be the best in five years. despite the snow and freezing temperatures, consumers are eager to part with their money. tt retail association expects turnover to rise 2% to 77 billion euros. that of christmas time is shopping time. welcome to munich civic center for the last presence on her list. one of her main thing gets its books. over the past few weeks, she has ordered a few good ones over the internet. but for her, that is not a real alternative to browsing a well- stocked bookstore. >> i do buy some things over the

internet, including books. but at christmas in particular, i prefer to look around a shop for my ideas. with toys, it is much easier to see what is on offer. >> she only needs one more present to round off her list. a wooden train set for her young daughter. when it comes to traditional toys like this, germans are prepared to dig deeper into their pockets. that is good news for retailers. >> at the moment, consumers are really in a buying mood. we noticed that as far back as september. i cannot tell you which articles are proving particularly popular. spending is up across the board. >> clothing sales are up, and electronic goods are also proving very popular, but gift vouchers remain among top sellers. they are the third most popular christmas presents after books and money.

german retailers expect total sales this christmas to top 77 billion euros. most people are reluctant to cut back, especially on gifts for children. >> i would rather save on christmas dinner. christmas only comes once a year, and the kids should get something nice. maybe we can cut back with the adults, just exchange token presence or not go out for a fancy meal, cook something at home instead. >> this year, hoover has been about 300 euros on christmas gifts. that is pretty much the average in germany. people here are buying without going on an extravagant spending spree. and when the shopping is done, it is time to enjoy one of the more relaxing things the christmas season has to offer.

>> for more, we spoke to the high director of the hamburg institute of international economics. since the german economy has been on solid ground throughout the global financial crisis, we asked what his current assessment of the economy was. >> actually, we are very optimistic with regard to the next few years development for the german economy. we think that the german economy itself is on stable ground. it is the domestic demand for the first time since the decade that is a driving force behind the german economy, and also the export-led growth of the last 10 years is less stimulant and even if it has become weaker, it is still positive for the economy as a whole, so we think that for the first time since the decade, the german economy relies on two killers. one is the domestic demand. the other is the export. but together makes us optimistic

for the forecast of next year. we think that it is realistic to think about german gdp gross domestic product growth of out 2.5% from next year, but left front -- it is less than this year, but still much more than it has been over the decade, over the last 10, 15 years. it is much more than the potential growth past actually is. >> germany is known for export strength, but what is driving current domestic demand? >> it is private consumption. the reason behind this positive development of the private consumption plays in the labor market. what we actually see is a german mirae. years ago, nobody had expected that we will think about full employment in germany, but nowadays, we are close to it. we have only 3 million unemployed people for the moment.

that is less than we ever had since the beginning of the 1990's. second, we have more people with jobs than we ever had. that is about 28 million in fullmployed positions, and another 10 million in part time or in jobs that are not so well paid, but still, 41 million people have a job, and that means that they are going to spend the money that they have earned, and this is the driving force behind private consumption, and private consumption is the driving force behind the german economy these days. >> thanks so much for that update. switzerland is now struggling with the soaring value of its currency, the franc. has appreciated 15% this year and a full 25% since 2007.

a swiss central bank survey says one in two companies are suffering from the stronger franc, especially companies in the export sector. only a few days ago, the chief executive of the trendy watch grand swatch called the current swiss franc exchange rate in natural and unjustified. -- i natural and unjustified. hristmas is considered the most stressful but most lucrative season of the year for hotels in germany. families are increasingly looking rooms and banquet halls this time of year, shifting the burden of the christmas spirit to the hotel staff. guests spend a lot of money to get pampered. >> afternoon tea is served in the lounge of the hamburg hotel. it is an experience which does not come on the cheap. these guests have traveled from the city for one night in a hotel. they have paid 350 euros per person.

as a christmas gift. >> it is something different. we are weighted on hand and foot, and we have turned it -- we are waited on. >> we have done our share of globetrotting. now, we prefer these short trips. we make gifts of them. we do not need anything. >> but evenenhe man or woman who has everything would enjoy this today manual -- this filet mignon. \ 1,000 kilos are being served up this december. christmas is the most stressful but also the most profitable time of year for the hotel. >> christmas is our busiest period. where would have the most guests. that drops off the end of the year and gradually picks up again.

>> meanwhile, the concierge shows up one of the few sweets that really is not ok. this is suite 500. and that you will set you back 600 euros. but lack of reservations is not something the hotel needs to worry about. years ago, the hotel was india christmas. now, it is packed. why? people learn to enjoy a meal. the special atmosphere, the welcoming surrounding. they are waited on, treated like someone special. we do everything for our guests. >> back in the kitchen, final preparations are under way for the highlight of the day, the evening meal. christmas is a nerve racking time for the personnel here. expectations are particularly high, and the team do their best to deliver.

>> that is dead -- that is it for business from berlin. the weather is next. we will see you soon.