captioned by the national captioning institute --www.ncicap.org-- >> welcome to the journal. >> thank you for joining us. >> our headlines this hour, a baathist group declares a permanent cease-fire. president obama issues a moment of silence for those killed in the saturday shooting in arizona. and flood watch. melding -- melting snow in in germany sends water flooding over the riverbanks. could the spain and france as soon see the end of decades of a violent attacks by the creating of an independent basque state on the border of those two countries? that is the prospect being held out by the separatist group that

has declared a permanent cease- fire. but can it be countedn, and st how serious is it? the group has done this before, only to again take up arms. >> three members read an announcement on in their video on a website. they claim that this cease-fire will be permanent and verifiable. they have not carried out a deadly attack on spanish soil since july, 2009, when a bomb killed two police officers on the island of my york hub. the government and many spent -- island of miorca. the government and many spaniards are skeptical. >> it is totally in their own interest. you cannot trust them. >> it would be great if it was true, but we do not trust them.

not at all. i do not, that is for sure. >> they have renounced violence in the past, only to resume violence aer ahort interlude. more than 850 people have been killed since they started fighting for independence. >> to the shootings now in the state of arizona that left six people dead including a federal judge. a congresswoman is fighting for her life. the shooter has been charged with several counts, including the attempted assassination of a member of congress. earlier today, a member of silence was held across the country to honorhe vtims of the attack. [bell ringing] >> a bell tolled for the victims of the shooting in the city of tucson, arizona. in front of the white house,

president obama led a minute of silence in honor of the six people killed. as the nation mourned, the shooter was preparing to appear before a judge to face charges. they believe he acted alone. they found political messages he hadwritten on the internet as well as notes in his house that indicated he was planning an assassination attempt. people who went to college with him say he was troubled. >> he did not try to talk to anyone. he did not try to be friend anyone. no one tried to be friend him. he had a side the people were apprehensive of. >> gabrielle defgiffords remains in critical nditn. her doctors say that she is in a, most of the time, but remains free -- in a coma most of the

time, but remains responsive. the shooting has fueled debate about acrimonious political rhetoric. the latest congress, with a newly reshuffled balance of power, began its session just one week ago. >> voting is continuing in sudan on an historic referendum that is expected to see the south split off from the north. thousands of people are flocking to polls on day two of the week- long referendum. it is the centerpiece of a peace plan that ended decades of civil war. the independents voted expected to focus on final borders and how to divide oil wealth. the government of indonesia has ordered the indefinite closure of all of the country's schools and universities in the wake of recent unrest that has left 14 ople dead. the president has called the

rioting at terrorist act, but he is also pledging to create 300,000 new jobs. the north african country has been rocked by protests over high unemployment and a lack of jobs, especially for young people. clashes over the weekend between protesters and police were the deadliest yet. i ran has launched an investigation into the crash of a passenger plane that killed 77 people on sunday. 26 people survived, eht are in critical condition. the pilot made two attempts at landing before the boeing 727 went down near the northwestern city during a snowstorm. iran has suffered a number of air accidents in recent decades. sanctions mean that the country cannot buy spare parts for the american-made boeing's. residents of the third largest city in the australia have been

putting sdbags buy their homes after the threat of a large third largest city threat of mo. >> the daily news came without warning, inundating scan -- deluge came without warning, inundating streets and was wiping away cars. now the government is offering compensation for those who have lost income. >> this nation will assist people who are not able to do their normal income earning work and get their normal income because of flood and disaster circumstances. >> and some two hundred thousand

people across queensland have already been affected by the worst flooding in decades. another city has also been hit hard, but it is just one of t 40 townsin state of emergency. the forecasts say more rain is on the web. >> flooding that has inundated cities and towns in germany could be it subsiding in the coming hours. it reached a peak level by tuesday morning. extensive preventative measures kept floodwaters from hitting the city because the historic center. residents are hoping for some relief. >> thehine riverlows past bonn. city officials are expecting the river to crest in coming hours and are hoping the damage will be limited. while another river has started

to recede, the situation further downstream on the rhine river remains critical. the rivers have peaked at 7.5 meters. some 5000 residents are affected and itouldake dayto return to normal. >> we are just trying to make it possible for people to leave their houses by building walkways. where we cannot do that, we are using special trucks to help them do their shopping or get medical attention. >> in the columnacologne, offict the river to reach its peak sometime saturday morning. despite the threat, some people were venturing down to the river's edge for a closer look. sandbags are expected to keep most of the city drive.

>> automakers in the united states are very upbeat about car sales this year. >> things are on the rise in that sector as well. new cars are being built and new jobs are part of it. after years of boom, it looks like the sun is returning to detroit -- years of gloom it looks like the sunshine is returning to dedetroit. car sales were up 10% over the previous year. the german car makers are benefiting from the rise in demand, with premium brands like mercedes and bmws setting the pace. what will make sure this recovery is going to continue? that is the question we put to our correspondent. >> car sales in the united states have really gone up in 2010, espeally in the seco half.

the mood here in detroit is much better with expectations of a further, steady recovery. german manufacturers also want to profit. they will be trying to cater more to the special needs of the u.s. market, which tends to like bigger cars. audi has presented its new sedan, and bmw has shown a big convertible that will be going on sale in the united states. >> it looks like there is also room for improvement as far as germany's top companies go on the stock exchange in frankfurt. >> traders said that it was the first real trading day of the new year because in the united

states, e earnings season artsff. this will help shares to rise as many people are hoping, because the numbers should be better than expected. nevertheless, the dax went down sharply on the first trading day of this week. it was mainly driven down by concerns that portugal might need help from the european union. the yield on the portuguese bond went up about 7% for a 10-year bond. this shows how worried investors really are. >> staying at the frankfurt stock exchange for a clos[r look at some of the market indices, the dax lost more ground, falling over 1.3%. we will have a look at what the dow is doing now. is at 116 fortuno -- 11642, down

almost one-third of a percent sign. if you were traveling through europe recently, you might have been one of the thousands of travelers stranded by the christmas chaos. all of that snow took a toll on the reputation of the audubon. chief executives have met to discuss the future of the enterprise. they had a lot to answer to. >> the ice and snow may have begun to melt away, but the problems remain, after a particularly cold winter. transport ministers from germany's federal states have pointed the finger at deutsche bank, saying the company cut back on resources. now they are piling the pressure

on the company and central government. >> we need more money, more investment in rolling stock, add extra capacity for the thing that always arrives, winter. these capacities have not been there. >> that is something the bond boss would agree wh. he has then it is engaged in damage limitation. >> it will be my main personal goal for 2011 to commit all of our resources. what happened here in december and the weeks before frustrates us too. >> but several key issues remain to be clarified. these include whether the state which comes deutsche bank should take a dividend of 500 million the year re fr the company. the finance minister had already worked that some -- 500 million

euros from the company. the finance minister had already worked that sum into this austerity program. >> protesters have been complaining of price manipulation. share values nearly doubled in 2010, encouraging a new stream of investors into the market in bangladesh. prices have crumbled since early last month. >> about 3000 german farms have been given in the all clear to reopen following the dioxin contamination scandal. almost 150,000 tons of animal feed where tainted with the cancer causing chemical. an investigation into the source of the dioxin continues. >> this companies sold tons of

dayaks and, contaminated oils -- dioxin-contaminated oils that were mixed in to) feed which was sold to farmers. now the farmers are calling for consequences. >> we want our suppliers to carry out better controls and investigations. we want to know whether the deliveries we receive have toxins or not. >> that is what the german consumer production minister is plotting, tighter regulation and stricter observation of all animal feed. but a general ban on german food imports by some countries is excessive. >> at no point was there a danger presented by german products. >> the financial damage has not yet been estimated, but it is already clear that many consumers are losing faith in the safety of their food.

>> and germany's opposition social democrats are laying out their strategy this week on how they can win elections this year. the party chairs as candidates will produce a platform that includes a lighter tax burden for low income earners, and that they will focus on justice, which they claim the current administration has neglected. the player of the year, designated by fifa has accepted an award. he won the same award last year. is a motown and getting its mojo bac

>> welcome back. the most significant arrival at this year's detroit auto show was something that had a heyday in the 1990's, optimism. the sector ended a fr yes sales decle i 2010, and most analysts expected double-digit growth this year. the german auto makers in particular are already revving their engines. >> german car manufacturers can hardly keep up with demand. orders are flooding in. many production facilities are running extra ships. it has only been one year since many employees were put on half time because of a lack of ders. now ey a running afull producon. production levels dropped dramatically in 2009. paul in 2010, 5.5 million cars

were produced. that is expected to rise to 5.8 million in 2011. german companies are profiting from the fast-growing chinese markets. as the economy grows, more people can afford to become car owners. in an ostentatious environment, german cars are in high demand. the u.s. trade a lot with china, the biggest export market for german car makers. german cars have a good image, especially luxury models. sales of pickups, vans, and suvs, are rising fast. the sharp drop in exports in 2009 has been recouped. more than four 0.2 million cars were sold -- 4.2 million german cars were sold abroad in 2010. that is expected to grow in 2011. but in germany, it is a different story. during the economic crisis, the

government set up a cash for clunkers scheme to boost sales. now the government bonus is gone, and domestic demand has dropped. it is the same story across europe, but industry analysts say demand will rise again in 2011. car companies have come up with new and improved models to stimulate interest. for instance come levin new audi -- for instance, the new audi a6. the industry expects record profits again. the question is, how long will that continue? german firms are investing in new technology, but their main focus is on standard engines. at the moment, the money is to be made in high-powered, bay doors power, a luxury cars. >> german and u.s. carmakers

e counting on traditional markets, but emerging markets are producing plenty of car buyers. we have this report from india. >> the capital of india is tom to many different modes of transport. as the middle-class or grows, so does the demand for cars. up until now, indians have preferred small cars, but german models are fast catching up. one volkswagen dealership says it sells 10 cars a day. it costs around 12,000 euros, which is a lot in a country where anyone earning over one calcined euros per month is considered a good learner. -- 1000 euros per month is

considered a good earner. >> indians do look forward to the german brand. >> some 2 million cars are sold in india every year. that number is set to increase. the german cars make up only a small percent of the market, the sales figures are increasing annually. >> across the board, a car is the biggest item after your house th showcases your status. therefore, it is very important to have a car that reflects your position in society. the buying a good may, en though it is slightly more expensive, makes a statement about -- by being a good make, even though it is slightly more expensive, it makea statement about you.

>> less than 1% of the population is affluent, with some prepared to pay up to 200,000 euros for a card. >> their wealthy, well-informed, loyal. this is exactly the group of people we are targeting in india. >> meanwhile, a hindu priest is waiting in the showroom to bless e new customers new vehicles. it is all part of life in india. >> the city of detroit has become a dreary metaphor for the urban malaise that has become the exporting average u.s. manufacturing jobs to low-wage countries. you can buy a house in detroit forbout $100 a. me aondeng if, like the u.s. auto industry, detroit can turn itself around. >> the economic crisis was

another blow to a city already in decline. the big three auto makers based in detroit, general motors, ford and chrysler, all had to lay off workers. one of them was this man. >> i could not find anything. nobody was tiring. everybody was in the same position. -- nobody was hiring. everybody was then the same position. they did not need any help. >> the unemployment rate remains above average for the country as a whole. but many businesses are hiring again. >> the good news is that a lot of companies are hiring again. we are hiring in manufacturing as well as engineering and in the technology fields. >> but with the decline, many people have left in detroit. houses are abandoned.

now politicians and local companies have made it their goal to bring new life back to the deserted areas. the leader companying -- leer company is sponsoring in the playground. >> it really set well with our responsibility to the community. >> of around 2 million people lived in detroit during the 1950's. that number has dwindled to less than half. many streets and parks are in neglect. buthe reetcity wants to change that. >> our mayor is working very hard to create centers of excellence within the city. >> community organizations have been set up across detroit to improve conditions in rundown neighborhoods with gardens, trees, flowers, and even works of art. >> it is not necessarily a

negative. i like to consider this a blank canvas. it is a new city. there might not be 1 million or two million people, but it is still a city full of rich people paul and history -- full of rich history and people. >> this man has found a new job. he was rehired by his former employer, chrysler. >> i feel like the company is much stronger, more positive, and i think a lot of people are going to gravitate back to cars. > after years of bad news, people are optimistic that the city and the american car industry are on the rise again. >> that is our in-depth. the detroit auto show is underway. thank you for joining us.