>> hi, everyone. welcome to the "journal" in berlin. >> i'm steve taylor with the business looked. >> we will look at the headlines this hour. another major earthquake hit the devastated coastal northeast japan, but there are no reports of deaths. >> the european central bank raises interest rates for the first time in nearly two years. >> a man opened fire on students and is school in rio de janeiro and killed 11 children before apparently turning the gun on himself.

a major earthquake has hit northeast japan, triggering a temporary tsunami warning and evacuation orders for the area devastated by last month's disaster. the 7.4 earthquake struck late thursday night local time off the coast of miyagi prefecture, one of the hardest-hit by the tsunami march 11. no reports of deaths from this latest earthquake. >> residents along the countries northeast coast were told to immediately evacuate to higher ground. these drivers on their way out of harm's way when officials gave the all clear. the tsunami failed to materialize and the warning was lifted. the quake was the worst aftershocks since the mass of 9.0 earthquake and sonometer to weeks of december to video shows an aquarium as the quake struck in june fukushima province. only seconds later, the tv

program is interrupted with a warning. the question on many people's minds is what might have happened -- at the fukushima nuclear plant. but a spokesman for plant operator tepco said the plan had not suffered any further damage. other japanese reactors also prompted concerns. diesel generators kicked in in this plant after external power supplies were interrupted. any color plants also have the same problems. the government saw to calm fears. >> we were able to pool fuel rods in the nuclear plants without problem, even of the regular electricity supply was interrupted. our top priority is protecting people's lives. watch tv, listen to the radio, and stay calm. >> police reports say the quake injured seven people, two seriously.

>> rebel leaders in lib rejted w calls for negotiations with libyan leader moammar gaddafi. it came in response to an initiative by turkish prime minister erdogan who said he is working on what he called a road map for ending the conflict. he said turkey was talking to representatives from both sides to achieve a ceasefire and a withdrawal of kibaki forces and some cities and establishment of safe immense -- corridors and the country. rebel forces in libya satanic rebels were killed in a nato airstrike. a number of them also wanted an incident which occurred when they were a travelling theyjdabiya and brega. reports indicate nato planes and mistook rebel vehicles for khaddafi forces and follows a similar incident in the same area last week that left 13 rebels dead. france says ivory coast's defeated president gbago as you

were the 1000 soldiers still loyal to him and of the john. 200 are deployed in the provincial palace where he is still holed up in a bunker. he is surrounded by the forcof the esident-elect ouattarra refusing to surrender. last night french troops had to rescue the japanese ambassador after gunmen broke into his residence. >> french forces handed out helmet and bulletproof vest -- but approve best to civilians before they were evacuated from this hotel. they have been unable to leave four days. >> we never thought we would get to this point. all the civilians are caught in a trap. and there is no and -- and in sight. we do not know what will happen tomorrow. >> in another part of the city, troops loyal to the internationally recognized president ouarra prepared on another assault on gbagbo's residents.

>> we have decided to attack mr. gbagbo's residents compared with start of the job and we inflicted a lot of damage on it. the fight goes on and we will finish the job. >> pro-ouatarra fighters already captured many ave gbagbo for system of being held in a close down playstation but more than a thousand are thought to be ready to lay down their lives for the disputed president. >> european union officials voicing released today after portugal said it would ask for a financial rescue from the eu. germany called it a sensible and necessary step and said it would reduce the risk for the entire eurozone. portugal is the third country after greece and ireland to seek lp. critics, howev, save lives than we did far too long. -- say lisbon waited too long. >> they will have to submit to

do you's ideas on slashing spending and boosting revenue. >> we negotiate an economic adjustment program with the portuguese authorities. >> that means portugal faces what greece and ireland already had been prescribed -- major budget cuts. >> perhaps it is a good thing. perhaps not. we will have to wait and see. >> if it helps them for -- they should have done a long ago. >> i'm already affected because i'm one of portugal's many workers. perhaps it is time to emigrate. >> portugal is on the verge of bankruptcy. investors are demanding a risk premium for loans, but lisbon will be able to get loans at a much lower rate from the eu bailout fund. overall, the fund can issue loan guarantees of 440illi euros. and make emergency loans of 60

billion. the imf has a further 250 billion available. as for portugal, economists estimate it will need about 80 billion euros. but cash alone will not do the trick. portugal will have to find ways to revive its struggling economy. >> steve has more on rising interest rates here in the europe. >> all about fighting inflation -- the ecb raised its k rat by 25 basis points on thursday to 1.25%. the move makes it a first of the world's top central banks to begin raising rates as the economic recovery gathers pace. the bank says the move is necessary to put the brakes on inflation, but critics say higher interest rates could stop the recovery dead. >> ecb president jean-claude trichet has to try to strike a balance between very diverse countries. germany, for example, is

prospering and conceal with a risen intere rates portugal, by contrast, is in crisis and will suffer more of the cost of borrowing rises further. the hike represents a compromise. an increase from the historic low of 1% above a very small one. just a quarter of 1%. but is this the first of a series of rate hikes? >> we did not decide today that it was the first of a series of interest-rate increases, and we will contie to do in the fure what we have donin the past, namely to take the appropriate decisions for price stability. >> the ecb said it needed to raise rates in order to counter inflationary pressure. he barely mentioned the state reeling under a huge debt burden, but more people have mortgages and those countries and are set to feel the pinch sooner and harder than the residents of more affluent

countries like germany. >> for some reaction we spoke to the chief economist. we asked him if the rst te hike in arlywo yearcan really tame eurozone inflation. >> well, it is an important signal to market participants that the ecb will try to keep inflation under control. it is not so easy because presently inflation is mainly driven by commodity prices. we don't yet see inflation driven by high wages or by high production -- producer prices in the the eurozone itself. so, it is a pro a con argument. one should not go to strong if prices are still driven by commodity prices and we have yet seen the second round effects. so, my answer would be, this is the right step to be that -- rather careful, a signal to market participants is a first

step. >> germany's leading economic institutes have revised their 2011 growth forecast upwards from 2% to 2.8%, on the heels of numbers showing industrial orders up sharply in february in the labor market looks poised to benefit as well. >> you can see the economic recovery in full swing. the economic crisis is history for the emda company that makes metal parts mainly for the auto industry. the managing director is urgent to deal urgently looking for more staff to meet surging demand. >> it looks like it will never end. late last year i was thinking this is as good as it gets and then it continues to improve. >> that corresponds to the central message of this year's spring report. despite the eurozone crisis, rising interest rates, disaster in japan, conflict in libya, despite all the many serious risks, the economy is growing and unemployment is declining in

germany. the report concludes of the countries economy is in good health. of the recovery is sustaine, both by foreign and domestic demand. industry has been registering robust growth in orders from all regions of the world. >> the report says there will be more jobs and wages are likely to rise as well. >> we are heading for record and on and figures. next year there will be 41 million people working in germany, more than ever before. >> but that could present a problem for companies like emda. skilled workers are increasingly in short supply and commodity prices are rising, some sharply. these two dark cloud on the rise and could grow and threaten to rain on the party. >> let us see how the markets are doing after the rate hike. the blue-chip index closed half a percent lower, lding eurozone blue chips on the euro

stoxx 50 -- the dow jones industrial looks lower, 12,000 four hundred nine, and the euro is trading for 1.4299. >> thank you, steve. brazil is in a state of shock after a 24-year-old gunman opened fire in a school in rio de janeiro killing 11 children before apparently turning a gun on himself. police have not given a motive for the attack. brazilian president broke down when commting on thencidt saying such a crime is not characteristic of the country. >> some of the injured students were given first aid in this football field before helicopters took them to hospital for further treatment. a huge crowd gathered outside the school, mainly parents anxious for news of their loved ones. shouts of murderers, murderers, went up as people mistook a local worker for the assailants. the man was taken away by police

for his own safety. the gunman entered the school soon after classes began. he told school officials he was there to make a speech. he entered the classroom, pulled out two revolvers, and killed 10 girls and one boy. the students were working out of the school covered in blood and i was helping them here. i was also worried about getting my daughter out, but i could not get past the stairs. how was i supposed to walk-in when he was still shooting? >> it is still unclear whether the gunman shot himself or was killed by police. brazilian president received the news at a business conference. visibly shaken, she led the delegates in a minute silence for the victims. >> israel says its new iron dome mobile air defense system successfully intercepted rockets

fired from gaza. also on thursday, israeli warplanes bombed hamas targets in the gaza strip. the strikes in response to missile attacksfrom gaza. one can say-tank missile hit a bus in southern israel injuring two people, one of them a child. palestinian medical sources say the israeli strikes that followed killed one civilian and killed nine other people. here in berlin, is really prime minister benjamin netanyahu has been lobbying the governing coalition to sell his country a sixth naval submarine. talks on the gulf unclad submarine deal stalled last year after germany declined to sign off on it. netanyahuas also been seeking germany by the guarantee it will not back any unilateral palestinian declaration of independence expected to be announced in september. >> there was tight security for netanyahu got to visit to berlin. the israeli prime minister is in

the german capital partly to try to counter palestinian efforts to garner european support for a unilateral declaration of statehood for the west bank, a move that chancellor angela merkel also disagrees with. >> germany's support a two-state solution, a jewish state, israel, and a palestinian state. unilateral recognition would not contribute at all to this objective, which i consider essential. >> a resurgence in violence between israelis and palestinians has worsened the situation in recent weeks. germany has repeatedly called for israel to rethink its settlement policy on the west bank, and in berlin on thursday, netanyahu gave some cause to hope for movement in negotiations. >> the issue of the settlements -- while a component of the final negotiations from a final agreement, it would not be an

obstacle to such a solution. >> that could bode well for the next meeting of the middle east quartet. that is set to take place in berlin next week. >> soccer news -- bundesliga -- they could be planning their next home game without spectators. german football association says it is requesting punishment after a linesman was hit by full cup of beer in st. paul lee's last game against schalke. e referee abandon the game after the incident and the match was later awarded to schalke two-year -- and failed to protect a linesman and now must play behind closed doors. the ruling is affected -- expected friday. thursday's of the completion of the fifth stage of the santa clara from, one of the most challenging sporting events in the world. the 780 runners had to cover a grueling 82 kilometers in the two-day state and the new leader emerged at the end, morocco's rashid marichi, head of the

leader board after completing today's run in just over seven hours. we will be back after a short break with

>> we continued the program with a look at life in berlin. jobs being created of the board in germany right now, according% to the latest government statistics. everywhere, that is, except here in the german capital. with the country experiencing stellar growth rates you would think that would have a trickle- down effect but a number of people out of wk in berlin is mo on p with portugal or greece, an average of 14%. however, one group is expanding at a phenomenal rate, and that is a creative freelancers. berlin has become a magnet for the independently minded and free spirited. affordability, safety, and young population give artists and singers atmosphere they need to develop their talents.

our next report looks at 3 creative types who of come to berlin to live out their dreams. >> berlin -- capital of the creative class. 170,000 people work here in the creative sector, living off of their art for ways to apply it. and they are very much a global community. >> my name is -- i am a singer and i live in berlin. from london. >> i am ricardo, from columbia -- colombia. >> i'm a lebanese artist. >> espen the singer, ricardo the designer, saiid the painter. three artists in berlin. ricardo has found a setting for his offbeat creations. >> berlin is an -- fantastic

city for any kind of art and all forms of artistic expression, and despite the weather. >> record of's specialty is making. ball's in all shapes and sizes -- ricardo's specialty. styrofoam models where he glues the mirrored pieces and each is one-of-a-kind. he has been living and working in berlin for three years. that is after living seven years in spain. barcelona used to be a design mecca. today he says it is berlin. >> almost anyone can be an artist here, without having formal training. there are many forms of art and many places in the city where you can express yourself. there are many opportunities in berlin. >> of germany's the nightlife capital berlin is an ideal habitat for ricardo's products

of a. the mirror balls are in the same venues where the creator spent their free time -- bars, clubs, anywhere where there are party is going on. >> you don't have to speak perfect german to get by here. there are plenty of ways to survive as an artist and express yourself. >> ricardo charges an average of 400 euros a piece for his customized new balls but that is not enough to make ends meet so he moonlights as a deejay, preferably in clubs where his handcraft is inaction. as long as berlin remains a this stimulating, he says he is staying put. 170 museums in one city -- a figure that dazzles saiid balbaki. also the current focus of the

work of the lebanese painter and conceptual artist. >> i have been creating a conceptual art on the subject of museums for four years. museums and their roles as institutions, the credibilitit f archeological finds, and our perceptions as visitors. >> he came to berlin nine years ago to study art. many of his works play with the theme of archaeology. he creates objects that look like ancient artifacts and then and then stories about their past histories. >> for a person like me, who deals with history in/ his art, with the memory of art, and the credibility of archeological finds in museums, berlin is like a treasure trove. it is a city with so much

history in its own right. >> and incidently, a city with plenty of cheap housing. artists find affordable studio space here and cannot concentrate on their art instead of earning rent money. another reason for berlin's attractiveness. that gives him the time to deal with a painful subject -- the lebanese civil war. member berlin helps me to see the route more clearly and distinctly -- >> berlin helps me see the route more clearly and distinly. it helps against immersing myself too deeply in that reality. everyday life in beruit plays no role for me here. i'm not part of that daily life. >> he also paints. his works have been exhibited in london, paris, new york, as well as his homeland, lebanon.

>> ♪ >> aspen is a vocalist who called berlin his home for the past five years. >> ♪ i am a russian rocket i am an empty pocket i am a single life ♪ >> i came to record originally just to play some shows, just the kind of bring the music forward a bit. i really enjoyed berlin. and it seemed like a cool place to be. there was a lot of openings. lots of places to play. there was a nice atmosphere here. quite a creed of atmosphere. >> and he has been making music ever since in berlin with his band "v geco." berlin has long been a magnet for musicians can -- david bowie

and u2 recorded albums here and young bands feel that legacy. creating and placing in berlin has a community feel to it, he says. >> spent some time in dublin and in england and the in san francisco, and there everyone seemed very focused on making sure they get ahead, that they do their thing. with the berlin, it seems so much more relaxed. and it does seem a really positive environment. >> the setting is one thing, but still has to make a living. >> i am missing are in a van, the geco." this is how i came to be berlin -- i pretend to be a tour guide but i just promote my van. [laughter] >> whatever his true identity, he admits it is only concerned were his career he was chosen a different city but he says he would not live anywhere else.

♪ >> don't come to berlin if you are looking to find your fortunes here, but do come to berlin if you want to express yourself artistically or socially, were you want to live and anyway that other people do not allow you to live. >> ♪ >> it is a kind of like they can find elsewhere, say the young creative people -- can not find elsewhere said the young crowd of people of berlin, and a sense of community with their ideas bouncing all these other and influence -- each other that convinces them this is of a place to be. >> as we said, with over 170 museums and galleries in the city, there is certainly enough to keep you busy. that wraps uthe "journal" at

this hour. i'm meggin leigh. thanks for joining us. captioned by the national captioning institute --www.ncicap.org--

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