>> this is the journal. >> thank you for joining us. >> president hu jintao appeals from mutual respect in relations between washington and beijing. tunisia releases political prisoners detained under the rule of zine al-abdine ben ali. questions about german treatment of troops put the defense minister under pressure. captioned by the national captioning institute --www.ncicap.org-- >> chinese president hu jintao had a difficult time on the second day of his state visit to the u.s. his agenda was filled with meetings with critical u.s.

lawmakers, who pressed him on human rights. the house speaker welcome the closer economic cooperation, but voicedtron conrns about ongoing human rights violations in china. hu also spoke with harry reid in what was probably an awkward meeting. >> hu and harry reid smile for the cameras, but the talks were overshadowed by comments made recently about the chinese leader, labeling him a dictator. many u.s. lawmakers vowed to bring up human rights in their talks with theremier, talks that were held behind closed doors. a number of leading u.s. politicians had snubbed the chinese leader in the evening before by declining an invitation to the dollar dinner held in his honor by the first couple. -- the gala dinner held in his honor by the first couple. [applause]

he received an enthusiastic welcome when he spoke to members of the u.s.-china business council on thursday. billions of dollars of deals will be struck during the visit. he told his hosts at least some of what they wanted to hear. >> we will continue to intensify policies on reforms and openness in the areas of business, politics, and society. china will improve its social market economy and create a socialist system -- socialist economy based on the rule of law. >> a respected elder statesman introduced him -- former secretary of state henry kissinger. >> if our country's work ttether, most of the problems that are before rest will find a creative solution -- that are before us will find a creative solution. if they do not, then there is no possibility for one side or the

other achieving a success over the other. >> there is still much that divides the economies. they need each other to prosper. that is the message of this ate visit. >> i spoke to our washington correspondent, and began by asking for more about what was talked about at the meeting. >> president who is on a very tight schedule, but congressional leaders managed to ask questions concerning human rights. they asked a lot about intellectual property protection, which is very important for american software companies. at least the house members were running out of time. but the senate members in the meeting after that managed to ask some questions about currency issues as well. all the hairy issues for president hu.

you can say this was a less enjoyable meeting and the state dinner on wednesday. >> he is now leaving washington. what would you say his reception has been like in the u.s.? >> president obama got really good grades from most analysts, how he handled everything. he did the tightrope walk between raising all the issues and not embarrassing his guest. this is especially true forhe human rightsssue obama even mentioned it to bat, and -- tibet, and hu responded by saying they need to do more for human rights in china, which is a surprise. usually, you cannot expect big surprises. it is about appearances and symbols, which are important to the chinese. it is about doing big business. regarding these aspects, you could say the state visit was a success. but the underlying problems, the big differences with human

righ or the currency iue, do remain. >> thank you. tunisia's interim government has declared three days of mourning after the unrest that toppled the previous government and claimed at least 78 lives. ministers also agreed to grant recognition to all band of political groups and to create an amnesty for political prisoners. >> anxious family members wait to take their husbands and sons into their arms. at this checkpoint near the tunisian capital, newly released political prisonons are united with their families. this mother has not found her son yet. >> they can to the house and took him. they give him a five-year sentence. they tortured him until he was nearly dead. he has not come out. he served three years and five months. who is being released?

>> the interim government still says it has released all political prisoners. meanwhile, protests continued in tunis. thousands gathered at the headquarters of the rcd. ere were cheers when protesters tore down a sign and threw it off the roof. the former ruling party of the ousted president zine al-abdine ben ali has now dissolved its political secretariat. the caretaker administration has attempted to distance itself from the previous regime, but protesters are not impressed. the continue for their call of a new government free of any allies of ben a. >> the russian president has accused germany and poland of plotting to overthrow him and organizing protests following his reelection. both countries have rejected the allegations as groundless. protesters gathered at the

secret police headquarters in minsk to demonstrate against the arrest of opposition candidates after the december ballot. e.u. representatives will not attend the swearing-in in protest at the goverqment crackdown. asked our political correspondent what the reaction has been here in germany to yukashenko's allegations. >> berlin is playing its cards close to its chest. i think germany's leaders will be conferring with other members of the european union to formulate a reaction. but in this case the statement by president alexander yukashenko is pointed. he has accused germany of being tive involved inrying undermine his country's sovereignty. he says that germany had helped to organize and finance a campaign that was aimed at doing just that and undermining the

sovereignty of belarus. germany obviously is goioi to respond in clear diplomatic language on this. in concert with the european union foreign ministers, including the german foreign minister -- it will be meeting later this month to decide whether to pursue econom sanctis ains belarus for what it believes were falsified election results from december. lukashenko was confirmed in those elections last month. there were accompanied by a great deal of violence, a government crackdown on protesters who took issue with the way the government handled those elections. we can expect to hear a clear response from germany because the acquisitions are so appointed. we will hehe their response being coordinated with germany's european partners. >> that was harry martin, speaking to us earlier.

new elections will be held on ireland on march 11. the government is on fire since it accepted a massive bailout from the european union and the imf. prime minister brian cowen has struggled to hold his government together. six cabinet members resigned this week alone. the political situation is described as the last days of the worst government in the history of the state. earlier on, we wer talki aboupresident hu jintao's visit to the u.s. and chinese currency was a big topic. >> i have been talking business, but also economics. the currency issue remains. manipulation by chinese authorities was a prickly topic. i do not think there will get far with it. as the yuan goes, markets do not expect it will l se significantly against the dollar this year because the chinese are worried about inflation.

the smallerurrey would reduce the trade advantage and attract huge amounts of investor cash into china, forcing the government to raise interest rates to counter inflation. meanwhile, china's economy is sizzling. it picked up speed at the end of 2010. >> the construction industry is booming in china, with lots of money in circulation. people are keen to invest in bricks and mortar. economic growth has been bullish over the past few years. it appears set to stay that way this year. the imf forasts that chin' gdp will rise by 9.5%. beijing up interest rates twice in late 2010 in a bid to stop the economy from overheating. >> on the one hand, our economic growth is very stable. on the other hand, a lot still needs to be done to improve the quality of this growth.

we need to improve the structures of our economic development and reduce energy consumption in production. >> china's consumers have also been feeling the downside of their country's economic success for months, as prices continue to rise. beijing's moves to rein in inflation may be beginning to pay off. the pace of inflation appears to have slowed last month, coming in at 4.6%, compared to 5.1% in november. >> the chinese economy cast a shadow over european markets on thursday. we have this report from the frankfurt stock exchange >> the speculation that china is putting the brakes on its economy and price inflation caused some profit-taking on stock markets in europe, especially shares of countries -- of companies that have close ties with china, such as automakers and luxury goods

producers like hugo boss or puma. earnings reports also came in. the small numbers and the optimistic outlook caused demand of shas amongst investors. the ock price of the french technology conglomerate rose significantly this thursday. >> you can see the dax taking a bit of a dip. it fell and closed almost 1% lower at 7024. stoxx 50 ended slightly up. on wall street, the dow industrial is lending some what to 11,819. the euro is trading for $1.34. the spanish government is working on a second round of

recapitalization for its regional savings banks. private investors may provide some money. an injection of 30 billion euros is on the cards. >> spain's savings banks have traditionally played a major role in the country's mortgage business. but debt defaults have hit them hard since the financial crisis broke. this year alone, outstanding mortgages worth a total of 80 billion euros could fail. the spanish construction boom lasted a decade, but the sector was financed with borrowed money, from commercial projects to private consumers building their own homes. the 2008 financial crisis brought the mortgage merry go round to a halt. the government has already helped out with a capital injection of 11 billion year rose. madrid says opening them to fresh private and public capital is partof aaft of reforms aimed at restoring international

confidence in the sector. >> swiss police are still holding a former banker for questioning about potential breaches of swiss banking laws. the have 24 hours to decide whether they have grounds to continue to hold him. he appeared on monday with julian assange. he handed over details of tax evaders. the swiss court convicted him of breach of secrecy laws for publishing data about his former employer. a 6000 but you're a fine was suspended for two years. -- a 6000 euro fall and was suspended for two years. >> incidents in germany's armed forces after a revolt in a naval vessel and an accidental killing in afghanistan. there are allegations that soldiers' letters to their families have been tampered with, a breach of germany's

strict laws on social secrecy. >> the defense minister rejected opposition claims of a cover-up, pointing out that one of the incidents has been under investigation for some time. it is the case of a young soldier who died in afghanistan before christmas. it appears a colleagues gun went off and the bullet hit him in the head. >> for months now, we have received inaccurate information from the ministry. that means the ministry does not have things under control. > in suc cases, the state prosecutors are responsible for the investigation. it is not for the minister to intervene. an investigation is underway. we will wait for the results. >> in a separate matter, the german training ship gorch fock had to return to port in argentina after training officers refused an order to climb a rigging.

it led to the death of a sailor back in november. lawmakers are also demanding information on allegations that messages sent home from troops in afghanistan were opened. they want to know how systematic this intrusion was. gutenberg says this question will be fully investigated. >> in sports, germany have avoided an early exit from the world handball championship by beating tunisia in their last game of the first stage. the 2007 champions defeated the two nations 36-26. germany will face a iceland, hungary, and norway in the next matches. those start on saturday. that was a close call, a little bit of egg and everybody's faces if they had not made it through the tournament. we will be back after a short break.

>> is fashion week in berlin. for the next few days, the german capital will be the international stage fo faion and lifestyle as the show gets under way. it is one of the world's biggest trade fairs for street and urban where. we start with a designer making her first appearance at the show. kate ellis is a british woman living in germany. >> this is the place where kate ellis gets her inspiration. she works as a designer from her munich apartment. her label is relatively young. she is working on her third collection. for her, it is the fabric that makes all the difference. she chooses the cloth for each

design personally. she creates her designs on a computer. her style is simple. that is the trademark of the british-born designer. >> everybody has a favorite teacher. that is what this should be, for everyone to wear your favorite piece that you take out of your doors everyday -- drawers every day. >> the look is vintage. rose bowl is a famous flea market in california. this woman is responsible for getting kate's designs into the shops. -- this man is responsible for getting cates designs into the shop. the designer does not have a shot of her own yet. the garments are manufactured in turkey. the two are making their final preparations for bread and butter. they hope an appearance at the

show will give the lel added exposure. >> we have a feing that word is spreading. we hope they will have presence throughout germany in one or two seasons. >> the sleeves are a little tight for current trends. kate wants to make the dress more loose fitting for the next collection. kate ellis troubles a lot, always on the lookout for fresh ideas. she finds inspiration in germany. she keeps an eye on the fashion scene and says she has noticed a trend toward more diversity. >> it has been appearing in the last few years. more designers, new designers. i think there is a larger acceptance. >> that means more companies like her. but kate ellis also wants to grow. that is why she is also planning a men's wear collection for next year. >> one of the most striking features of the berlin event is its use of unusual settings.

the historic airport is where the main event of bread and butter takes place. the prestigious hotel avalon provid a w take on ecological fashion. green showroom allows designers to showcase clothes that are innovative, but trendy, including a designer who has been using video cassettes to make hand bags and purses. many in exhibitors are from berlin and get their inspiration from this multi-cultural and vibrant metropolis. what are the latest fashion trends for the year born to be? we want to ask some of the people who should know. >> preparations for a photo shoot for an online fashion boutique. the owner spends a lot of her time at fashion exhibitions, transporting. she has identified two big innovations for the spring season.

>> we have a military look going away. that has been there for the past two years now. it is going toward the biker look. it has been reinterpreted, with shoulder pads and fine leather in accentuating its sheen to make it appear more feminine, along with extreme narrowing at the waist. the trend for spring-summer is a lot of colors and patterns. >> but many of last season's fashions will be back on the catwalks this year. large tote bags are still all the rage, as our great scars. as far as blacks are concerned, mid-calf is the thing. >> this is the new trend in trousers, chinos. these mid-calf pants, pedal pushers. they differ from last year's models in that they are looser

at the top, and have diagonal cut pockets. and the legs are a little tighter. >> big fashion chains are going with a retro 80's look in spring. at mango, shoulder pads are back. bold colors are seeing a revival. why cut loose garments are back in after the muted palette of the last couple of years. >> we are going for a lighter, looser look with very fine fabrics, to reflect the freedom -- the feeling of freedom. >> bold colors along with long dresses and retro are also in a&m -- a&m -- h &m's new collection. anything goesin the upcoming season.

>> now you know. many of the world's leading designers are german. the country is said to have the biggest number of fashion schools in the world. does that mean ordinary germans are fashion conscious? if so, what do they like to wear? we went to find out. >> winter may notk be the best time of year for high fashion, but berliners know how to brighten up the gloom with sturdy footwear and trendy accessories. the berlin look has caught on with the international fashion world. it does not pass tourists by either. >> it is definitely wackier them in austria. >> it is very modern and fashionable. the girls always look good in the streets. >> it is very trendy. they dress very well. >> it is the verse, not always

the same. everyone tries to get their own style together. >> the cliche that german fashion tags are an adventuress is passe -- are unadventurous is passe. >> i come from the south of france, where the fashion is very bling-bling. in germany, the focus is on high-quality fabrics and materials. >> german fashion designers are setting global trends, and the industry has become a global player the german fashion association says it is the world's second-largest exporter of fashion after italy. the main thing for german fashion enthusiasts is individuality. >> i hate it when everyone looks

the same. i find something i like, and a year later everyone is wearing it, like this for hat. >> it is an expression of my life situation, my emotions. >> copying other people is not my thing. >> when itk comes to fashion, germans are confident and independent. more than 80% say it is more important for them to like their own clothes than for others to like them. that is the kind of confidence the german fashion industry has often lacked. many established labels hide their origins behind non-german band names. here in germany, fashion remains largely the domain of women's magazines. the next up for germany on its way to becoming a style mecca is to take fashion seriously, as a genuine expression of culture. >> beauty and the best, fashion

and germany. that was the subject of our in- depth this hour. thanks for watching.

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