>> this is "journal." here are the headlines at this hour. rabbles keep up the search in libya for muammar gaddafi. the east coast of the u.s. is on high alert as hurricane irene approaches.

the hunt for muammar gaddafi continues and there are speculation that he might be hiding out in the city where he was born. it is located 450 kilometers east of tripoli. it has been the target of overnight bombing raids. rebel forces are reported to be planning a fresh assault on the city. there has been something available in the fighting in tripoli, but the situation there remains tense. >> residents are fleeing the southern province, taking any belongings that they count. battles have been raging between the rebels and pro-gaddafi forces. the rebels have been keeping them stocked with supplies. >> they are on our side. they brought us food and drinks, everything we needed.

>> along the road from tripoli in the west to the east, oil refineries are burning. at a checkpoint, a fighter says everything has been destroyed by pro-gaddafi forces. bthe rebels say it gaddafi loyalists want to stop them profiting from the oil and gas resources. it could take weeks and months for oil production to resume. the rebels the pledge that when it does, their allies will benefit. >> all countries to have helped us will have the right to compensation. we will be very generous towards them in future oil dealings. >> at first comment -- first, they have to capture gaddafi and take complete control of libya. many tripoli residents say they will not feel safe until the rebels clashed pluralist fighters out of their

neighborhood. -- flushed loyalists by trees out of their neighborhood. >> until recently, he worked as a doctor in the southern state. berlin is seeking to unfreeze more than 7 billion euros in libyan assets to be used for reconstruction and the post- gaddafi era. we will have more on libya later on in this half-hour. first, is the united nations becoming a soft target? that is what the secretary- general is afraid of after an attack on the u.n. headquarters in nigeria. at least 18 people were killed in the nigerian capital. no one has claimed responsibility. an islamist sect has been blamed for a series of bombings in recent months.

>> the witnesses say the car slammed to the security gates protecting the compound, crushed into reception, and exploded. it sent vehicles flying and set the building ablaze. the complex houses over 20 u.n. agencies and 400 people normally work there. the u.n. secretary general was unequivocal in his condemnation. >> we condemn this terrible act to. >> it lies in the center of nigeria, where the mostly christian south meets the largely muslim north. the city has been the victim of several bomb attacks. this group has been behind almost daily attacks against the police and the northeast. >> i spoke with -- i began by asking him to tell us about the target of the attack. >> the u.n. compound is located

in an area where there is a lot of embassies. the u.s. embassy is not far from it. it could be considered as one of the most safe areas. it is generally a very safe city. it emphasizes this house talking this attack really was. >> of the attack is being linked with this radical islamist sacked. what can you tell us about that group and its activities? >> this group has been active in the north east. particularly in the last month, there have been daily news about attacks on police stations. they seem to have targeted -- what we seem to know is that a lot of unemployed youths are in support of this group. we face an increasing marsh --

marginal elevation of poverty. >> what sort of impact do you think this attack will have on the overall mood in nigeria? >> we had a string of attacks in the last 11 or 12 months. this was the first attack that was geared toward the international community. i think it shows there is a new quality, a new element to terrorism in general. i think it is important that christians and muslims aren't living peacefully together. -- car of living peacefully together. there is no more between the religions. >> thank you. benernanke has been trying to calm some nerves. >> northrop's -- no fireworks

this time around. all week, markets have been bracing for the speech delivered earlier today. speaking at a meeting of central bankers in jackson hole, wyoming, he hinted that the fed will soon do more to prop up the economy. he clearly avoided announcing any aggressive plans to tackle the ailing u.s. economy. he highlighted the problem of unemployment and called for the government to implement fiscal policies that would promote a stronger recovery. the commerce department revised second quarter growth downward to just 1%. friday has brought fresh worries that a new bailout for greece could unravel after adams warned that it will not proceed with a voluntary bond swap deal if part is a patient falls short of a minimum 90% participation rate. the leaders agreed to a new $109

billion aid program for greece to cover its financing needs. santa to the greek plan is the bond swap deal whereby it -- central to the greek plan is the bond swap deal. so far, participation rates have been less than hoped for. >>, yields on greek bonds have attracted attention from around the world. most investors are european. many of greece is creditors are known. the biggest holder of greek gods -- greek gods. the european central bank is believed to be holding greek bonds worth 40 to 50 billion euros. the they are followed by a french financial institutions and german banks. the voluntary debt swap agreed

to in july was expected to help greece said a 37 billion euros. that will not happen if offense cannot get enough investors to sign up for -- if athens cannot get enough investors to sign up for the swaps. shares in the u.s. did finish higher, at exchangers in europe closed prior to the rebound and did not interview -- prior to the rebound. >> the british economy keeps growing at a very small rates. the spanish government is talking about growing risk for its economy. from greece, new unsettling news came in about the rescue plan. very few investors desire to buy stocks this friday. then this from the denied its

dates -- from the united states, reserve banks still had tools to stimulate the economy, lifted the mood of the trading floor added little, but not very much. >> we can take a look at the closing numbers. the dax closed lower. the dow finished at the top of the hour and it had a nice little rally, finishing the day and week with gains. on currency market, the euro is trading at the value of $1.49. citing economic prospects in europe and north america are dampening expectations in brazil. reports said the government there is set to lower its growth projection for the current year to 3.7%. brazil still expects the economy

to grow by about 4% this year. even that is substantially lower than growth last year. its biggest expansion in 24 years rapid growth also fuelled inflation, which prompted the centl bank to raise interest rates to over 12%. japan is facing the prospect of a seventh prime minister in five years. investors had been expecting that decision and shares ended the day higher in tokyo. in japan, they have been unimpressed by his lack of success in getting the economy going again. >> japan is in the grips of recession. its third in the space of just a decade. this latest a cold and the fourth quarter of 2010, when the economy showed signs of faltering. the deadly earthquake and tsunami hastened the downward spiral. even economic aid for the

country's reconstruction could not reverse the trend. the cycle of recession began 20 years ago when the housing bubble burst. the government injected massive amounts of liquidity. it made japan the world's most indebted industrial nation. japan's leaders have been unable to turn the tide. he is the sixth prime minister to step down in the past five years. consecutive leaders have backed tax hikes. the japanese people have resisted. for years, japan has been battling deflationary as prices continue to fall. japan's export markets is the country's lifeblood. even that is showing signs of faltering. with the yen steadily increasing in value, japanese products are becoming expensive on foreign markets. many here are hoping that the successor will be able to reverse the economic decline.

>> that is your business update. >> in the united states, people on the east coast are bracing for the arrival as -- the arrival of hurricane irene. there is a state of emergency in effect from new york to north carolina. the new york mayor michael bloomberg has ordered the mandatory evacuation of a quarter of a million people in low-lying areas of the city. all along the eastern seaboard, people are boarding up windows and stocking up on essential supplies. >> behind these clouds, irene charges ahead. they point to a star map historic proportions. more than 60 million people living on the densely populated northeast coast are in danger. >> good morning, everybody. >> president obama send a clear warning. >> i cannot stress this timely

enough. if you are in the projected path of this hurricane, you have to take precautions now. do not wait. do not delay. we all hope for the best,;but we have to be prepared for the worst. >> on the coast of north carolina, people are doing what they can to batten down the hatches. many have experienced the threats of an approaching hurricane before. >> i have been in this house for 11 years. this one looks like it'll be the worst. >> it is just going to get bigger. >> forecasters are warning of strong winds, to run trains and widespread flooding. authorities said hundreds of thousands of people many to be evacuated. irene is expected to begin pounding the carolinas on saturday. >> the mexican president has declared free days of national mourning 42 people killed in an

attack on a casino. the raid took place in the northeastern city of monterey. members of an armed gang burst into the casino and threatened customers before setting fire to the building. authorities say a drug cartel is to blame. monterey has recently been hit by a wave of drug-related violence. in italy, the start of the season has been postponed after the footballers union failed to reach an agreement with the club over a new deal over players' rights. the players are injecting clauses -- rejecting clauses. >> it is all lot of garbage. 'we could strike for serious matters. the soccer players are millions. they should not strike, they cannot be serious. >> frustration on the streets of

italy, many italians think the power play between the fans and the club's this is the bigger picture. >> we have problems, they should find another solution. this would punishes the fans. >> others when the club. >> its is the team's fault. they have been paying huge sums of money to the players. they have allowed the market to become that way, not the supporters. >> this story has the whole nation stocking. -- collation talking. some fans believe a deal will eventually be reached. >> it will all work out and the end. we are in italy, they will play. >> for now, fans have the choice but to waitor the start of this seas, whenever that may be. >> i wonder what they will do with all those tickets.

but they will have to pay them back. >> they better. you are watching "journal." we will be taking an in-depth look at libya and the arab revelation.

>> tripoli is largely in rebel hands, but trps loyal to the libyan leader maintain a tenuous grip on it some areas of the country. many exiles who fled from gaddafi are returning home, but they have to travel 300 kilometers south to rebel controlled. >> the green flag of the

revolution, but the town is now in rebel hands before it fell, gaddafi supporters crossing the border were defiant. >> if god wishes, we will be victorious. i will sacrifice everything for muammar gaddafi. all arabs will know that we are fighting for libya. long live gaddafi. >> further south, the rebels are controlling the border. the road leads to tripoli. the rebels -- many exiles are beginning to return home. they have waited weeks to make this journey. >> we left tripoli because we were afraid of gaddafi's troops. now our country is free and we are returning home. >> midway to the border

crossing, the inhabitants have set up stalls to sell products to the passing of libyans. the crossing is the only route into libya. hundreds of cars have crossed the border in both directions. he has cleared passport control. >> the road is under the control of the rebels. even those who do not know the area well can feel safe. no one needs to be afraid. >> it is still ramadan and he might even be home to break the fast this evening. >> we are doing it now by a political scientist and journalist. he is an expert on north africa. as we begin to look at the creation of a post-gaddafi libya, how important is the role played by people who belong to the libyan returning to their

country is going to be? >> they will play a very decisive role. back in the 1990's, 100,000 indians left gaddafi's country. -- with the end of left gaddafi's country. gaddafi was not interested in private enterprise and he did not like intellectuals forming their own ideas. a large proportion of them lived in great britain. their financial support of the new libya will be very decisive in forging this new libya. >> when we talk about this new libya, how will it -- they're constantly calling for western democracy. is that a fair demand? >> it is necessary to talk about human rights.

it is very dangerous to constantly remind people in the arab world of what western democracy looks like. many people do not believe in our values. it would be more advisable should you remain a little bit more cautious, more humble. arabs are able to manage their affairs on their phones. they do have their own traditions. let's give them a chance to really get things going on their own. >> we will get back to you in just a moment. the on going up people in the arab world began in tunisia. the libyan rebels needed six months to reach tripoli, but in neighboring egypt, the street protest only required a few weeks to bring down the regime of mubarak. the arab spring has changed how the people of north africa look at their society.

and all the rest of the world sees the region. >> at the golden had tremendous strides statute of gaddafi has become a symbol of a dictator's downfall. another autograph coupled -- autocrat coupled. and the rebel stronghold, thousand celebrated. >> gaddafi, you needed 42 years to destroy it libya. we will rebuild it in 42 months. >> gaddafi is the third north african leader to fall since the beginning of the year. the arab spring began in tunisia. on december 17, he set himself on fire in a small town and unleashed a wave of protests throughout the country and the region. >> we have taken the path to

freedom. we open our mouths to call for liberty, justice. >> the president promised freedom and reforms, but he had already -- he fled to saudi arabia. the revolution spread to egypt. inspired by events antony's year, tens of thousands of people took to the streets of cairo. >> whenever i see the protest antony's, i think to myself, it is exactly the same for us. we have to do something, too. >> as the largely peaceful demands for the resignation of mubarak and his regime gained momentum, the allies responded with violence. the situation threatened to escalate until the army stepped in.

on february 10, protesters were enraged when mubarak appeared on television. a day later, he resigned and fled the capital. he is now on trial. the opposition in libya cannot yet celebrate the end of muammar gaddafi, but the former leader is on the run. the rebel leadership is internationally recognized. >> we are back. some observers are already talking about the danger of libya becoming another failed state. did you agree with that? >> it is possible that the situation becoming a second somalia. let's look at things in a more positive matter. the way the national transitional council has handled the bears in the past month -- handled affairs and the past month has gone pretty well.

in the west, we have not seen this type of revenge either. i think this transitional council is very skillful in forging new alliances. >> a lot has been made of libya been an artificial state created by reject it is five times the size of germany. do you think it can be turned into a viable state? >> there is one positive thing. one issue is very important in libya. libya is a rich country. there is plenty of money around. this situation is very different from the one we see in tunisia and egypt. libya does stand a good chance of making a big leap forward.

>> thank you very much. that has -- stay tuned.