>> welcome to "the journal." >> thank you for joining us. >> coming up on the program. and the winner is pyeongchang, south korea will host the 2018 winter olympics. 200 german tanks were sold to saudi arabia. the government has remained silent about this deal but the opposition has blasted. >> another downgrade for portugal, now the rating agencies come under fire.

>> jubilation in one city, broken hearts in another, the international olympic committee has chosen pyeongchang in south korea as host of the 2018 olympics. this was made in the first round of voting. munich was among the front runners. in the end, it was the south koreans that proved most convincing. >> african children in traditional dress deliver the envelope that contained the results of the secret ballot of the host of the 2018 winter olympics. it was opened slowly, which raised the suspense. >> pyeongchang. [applause] >> south korea was a clear winner. they secured an absolute

majority with 63 votes in one round. munich got 25 and france, just 7. pyeongchang narrowly lost two earlier bids. >> we are absolutely delighted that pyeongchang has been awarded to host the 2018 olympic winter games. over the course of 10 years of bidding, we have been listening and learning from the olympic family. >> the south koreans when in this and their perseverance might have played a role in their victory. -- of the south koreans winning this. >> there is the new horizon. making investments in a country where winter sports are not yet popular.

>> they touted the public enthusiasm about the games. it was a major disappointment for the munich delegation, but in the end of that could be done was to except the result gracefully. >> we did our best. you cannot win every competition that you enter. >> the high counts for pyeongchang suggest that many members of the committee had made up their minds long before the vote. >> pyeongchang has twice before unsuccessfully bid to the winter olympics, sue can imagine the south korean -- so you can imagine the south korean reaction. >> the decision came shortly after midnight in pyeongchang. a final moment of anxious hope. and then --

>> pyeongchang. >> they have finally won the right to host the games. >> i am very honored and impressed. we did erything possible to host the winter olympics. >> i am so pleased. we failed twice and succeeded the third time. i am very excited because this is a difficult task. >> thousands of people in munich or watching the announcement live on television screens. -- were watching the announcement live on television screens. it was not to be. there was disbelief. there was a few tears. >> this is disappointing after all of the effort. everyone would have been delighted, but that does not

help now. >> they have one on their third try. this is fair enough. >> many bulgarians hope that unit will try again for the 20202 games. -- many botbavarians hope that munich will try again for the 2022. >> and is the international is requesting reports of people in custody and claims of torture in syria. -- amnesty international is requesting reports on people in custody and claims of torture and syria. >> this shows video that was reportedly taken in mid-may. this one reads "we don't love you bashar."

you can hear the sounds of guns as the tanks entered the city. amnesty international is concer about those who have been tortured in prison. >> they had to stand on tiptoe to remain upright. they have had electric shocks applied to their genitals and elsewhere on their body. they have been beaten. they have been detained. one example of the brutality was soldiers arresting people and putting out lit cigarettes on their necks to mark them having been arrested. >> footage has prompted fears of similar cases. the army has surroded the city four days. thousands of people have reportedly been abducted. hear, the banners read, "we just want to be treated like human beings, that is why they are killing us." >> the german government is remaining tight-lipped on the sale of 200 tanks to saudi

arabia. they defended overall arms sales but they refused to confirm or deny the latest deal. this is drawing condemnation. the heads of the catholic and protestant churches have joined opposition parties and have called for a to be canceled. >> the tank can be used on the battlefield or against dissidents in cities. it is that aspect which worries critics of the reported deal with saudi arabia. >> look at the border conflict with yemen, the various uprisings. these are all aspects that show saudi arabia is not a dependable partner in a much-needed process, democratization in the arab region. >> saudi arabia recently sent troops and armored vehicles to bahrain to support a violence crackdown on anti-government protests. in germany, coalition lawmakers point out the concerns for human

rights cannot be the only consideration when it comes to arms sales. >> everyone in this parliament knows that saudi arabia is also a regional military power in relationship to iran. so, we will have to carefully weigh 8 different security interest -- a different security interests. >> sources say the u.s. and israel have approved the deal but the german government is not making official comments, invoking a commitment of confidentiality on such matters. >> the europeans are becoming quite fed up with rating agencies lately. >> up an arms. fitch, moody's, s&p, have become bad words. they are coming under increasing scrutiny in europe. the european commission president has condemned a decision by moody's to downgrade portugal's credit rating.

the german finance minister has said that he would like to "break the power of rating agencies and limit their influence." recent ratings have put a lien european countries like portugal under pressure. portuguese treasuries went on sale and they reached their highest yields ever. >> the government is outraged by the downgrading. the portuguese bonds have jumped started even though the government recently introduced drastic austerity measures. moody's is concerned that portugal will need a second bailout despite spending cuts and this has angered the finance minister. >> the reasoning behind this assessment is very hard to understand and even more so that it has come at this particular time. >> portugal's government says they are just getting to grips with the crisis. some economists support that view. >> things are progressing relatively well with the national budget. the deficit is falling.

the measure between the eu and imf cannot be assessed properly. the rating agencies' comments are somewhat inappropriate. >> lisbon has received a 78 billion euro rescue package from the eu and imf. in return, they must cut their annual deficit from 9.1% of gdp to 3% by 2013. the european commission believes that the portuguese plan will be successful. >> with all due respect to that specific rating agency, our institutions know the situation a little bit better. our analysis is more refined and complete. there is no reason to be distracted if we stick to the considerations. growth will return. >> rating agencies to not reveal how they reach their conclusions. markets around the world listen carefully to what they say.

>> onto wednesday's market action in european shares struggled as investors reacted to mixed messages on credit ratings and the validity of fresh downgrades. our correspondent gave us this summary of the trading in frankfurt. critics here on the floor say that rating agencies have been wrong too many times to have such power. >> on the other hand, the market's fear that there might be a default of portugal because this would be a new story and would have a new equality in this debt crisis because of spain. spanish bank's own portuguese bonds in the amount of 80 billion euros and this would hit the spanish economy very hard. so, the markets in spain and portugal went down and all of the european banking shares have been hit because of this downgrade. >> let's look at the closing

numbers. the dax finished the session just down by 8 tenths of 1%. euro stoxx 50 ended the day at 2832. the dow has enjoyed a bit of a push. it finished up by nearly half of 1%. the currency markets, the euro is trading at $1.43. the new managing director of the international monetary fund, christine lagarde, says that's all the debt problem in both industrialized and developing nations will be one of her top priorities. she said that a fast-growing emerging markets needed to have a greater say in how the imf is run. >> christine lagarde had only one chance to make a good first impression in her first press conference as managing director. the next installment of bailout

funding for greece was one of the top subjects. >> that there is an imf meeting which is scheduled for friday at which we shall consider the -- >> she supported the bailout for greece in her former role as french finance minister. now, as head of the imf, she must maintain a sense of neutrality. she pleaded for evenhandedness and stressed that there would be no favoritism at the imf. >> you can rely on me but the imf in its judgment will remain independent and will conduct its analysis in such independence. >> christine lagarde said she would press ahead with reforming the international monetary fund, following in the footsteps of her predecessor. she said that developing

countries would play an increasing role under her leadership. >> people traveling within the eu can look forward to lower roaming cost when they go online with their mobile phones. the commission has already mandated lower charges for phone calls but there is also a proposal to lower the data charters by opening up the european market. >> summer vacation for a break. for the phone users, the shock comes week later when the phone rights. the commission has already in some -- instituted price controls over the phone use. they have imposed a cap on charges for data roaming services. for anyone wanting to use their smart phone, those charges are still extremely high. >> our latest evidence shows that operators are still pricing close to the maximum safeguard levels and that consumers are not getting the benefit of lower wholesale prices. >> the commission would likey

that to change and it plans to do so by introducing competition to the market. future users will be able to choose between different service providers when they cross the border. the commission believes that will encourage mobile providers to offer better deals. customers will have to be patient though. the new system will not come into place until 2014 at the earliest. until then, using data services on vacation will continue to be a costly business. >> thanks. a tsunami warning is in effect for new zealand, the outline -- islands and tonka after an earthquake measuring 7.8. a tsunami has been generated and waves of up to 1 meter might reach east cape within two hours and capital within three. the epicenter was near the chromatic archipelago.

australia is through to the quarterfinals after a victory over norway. it was a comeback for the team down under. >> the austraan striker made all the difference. things looked different at the outset. norway almost struck first blood in the 15th minute. a defensive move all-out mary ann peterson a chance. she failed to connect cleanly. early in the second half, the australian defence was caught off guard. the ball went into the empty net. 1-0, norway. less than a minute later, the score was leveled. norway went on the offensive in search of a second goal and they almost got it. then, three minutes before time,

simon struck again, putting australia ahead 2-1 and putting australia into the quarterfinals. >> we will be back in a moment for "in

>> game over for muammar gaddafi. that is how nato is describing the situation and libya. russian officials have been sounding out -- russian officials say that gaddafi has been sounding out the possibility of exile. rebels have been pushing close to the capital. for many people in the east of the country, the gaddafi era already belongs to the past. the main rebel stronghold in the city of benghazi. our reporter was there to see how life changed under rebel control. > it is unusual to hear the

words human-rights and equality repeated with such fervor in a classroom in libya. until recently, the children here just for allegiance to gaddafi. there were no english lessons. this volunteer teacher would like to change that. officially, schools here are still closed. a private organization has started teaching the children again. >> english was concocted in the glia. -- was neglected in libya. gaddafi removed it from the curriculum. he burned all of the books in the school. >> here, in eastern libya, where gaddafi no longer wields power, people attached great importance to islam and tradition.

since the resolution -- since the revolution, they have been fighting for democracy. they are now trying to build a new future. they are pinning their hopes on the younger generation. >> it is for the children to develop their own free opinion and political consciousness. they have to have the proper education. >> what i learned here is that we need freedom and democracy. gaddafi, go away. >> these are the grounds of a former school for the elite. this is an oasis in the middle of benghazi. this man is on his way to the youth radio station which he said up with some friends. he is called part of the facebook generation. he was on the streets at the beginning of the revolution.

course we think there is a rift between us and the older generation. the voice of our generation needs to be heard. 60%-70% of the libyan people are young people. >> for young people, it has been easier to adapt to life without the gaddafi regime. the radius station is like a laboratory with a free society starting to take shape. in their meetings, they plan upcoming shows. many focus on a single subject, the new libya. >> sometimes, the revolution will be over. we have to prepare for the time afterwards. we have to explain to our listeners what democracy and a constitution and the rights of free speech really mean. >> for 42 years, we have not had that. it was all suppressed by gaddafi. >> this is an event for local

media organizations in the rebel stronghold. they would like to check out the competition. it is normal given just a hundred kilometers away, battles are raging. many different media organizations have opened in benghazi in recent months. small newspapers, magazines, websites, radio, television stations. most are financed by private donations. many of the journalists have to work without pay. the main thing is that they can express their opinions. >> a long-held dream has been fulfilled. this is a fantastic feeling. we are working for our countries in shifts -- we're working for our country in shifts, 24- hours a day. we're learning things every day. we feel this incredible energy. >> officially, those in charge of creating the new libya are meant like this man, the

spokesman of the national transitional council. they are the parents of the facebook generation. >> what are you talking about? >> he has organized a press conference by a high-ranking member of the council. it looks professional off. they are still working out how best to deal with the media. >> this is completely unique. before, it was one man giving a speech. usually giving a speech that is very long. the first time the people could ask questions and gives responses. this is the beginning of transparency. >> this is a member of the media can them -- media committee on the council. he makes sure that the latest decisions by the council are made public so that people can be informed about what is coming on. he says that many of those in the transitional council are formal -- former supporters of gaddafi. that is why it is important to

keep educating people. >> this is an imperfect system that we're trying to implement all of the time. we don't want to have a gap between the council and the people to widen. >> three generations and a new libya. the people here have a lot to learn on the way to a free society. >> joining me now in the studio is my colleague from our arabic department. thank you for being with us. as we saw in that last report in benghazi, people are adapting to new life with that gaddafi in control. you were recently in benghazi or in libya, what are the challenges that people still face there? >> different challenges. people are not getting their salaries. there are not job opportunities. people are not able to get back to normal life. that is the big challenge for

the national transitional council. in west libya, the fighting is going on. there is a gap and a difference between the east and west libya. >> us talk about the facebook generation. how much of a difference is it making in libya? >> it is interesting to me, the rebels. they are the generation of facebook. the people fighting now are those who used to chat on facebook. this helps indication between them. even to get international attention by spreading videos and photos. the proof of that was that gaddafi shut down the internet. in the gaza, they are getting access again. >>hat can the international community to to support the rebels? >> the most important thing is that they recognize the national transitional council as the

traditional -- legitimate representative of the libyan people. that is the most important thing. they will meet in is a symbol. they will work to support the libyans financially. -- they will meet in istanbul. >> what can germany due to support the rebels? >> germany's part is important in building up the civil society. this has started already in benghazi. we have already seen this in the report. they have to learn what is the meaning of democracy, what is the meaning of being able to have the human rights and that is an important role for germany to have in benghazi. >> thank you for joining us. >> your welcome. >> thank you for joining us this hour on "the journal."

u forget it. yourself, so don't fall.

u forget it. now he tells us. how far am i off the floor? about twelve inches. twelve whole inches?