>> hello and welcome to the dw studios here in berlin. this is "the journal." i'm meggin leigh. >> and i'm ben fajzullin. the headlines -- the egypt army cracks down on protesters demanding the president's reinstatement. >> israel and -- israel and palestinians launch a new round of peace talks. >> the longest recession in u.s. history.

the focus of world news today is the middle east and we will be looking at the latest attempt to restart the peace process in a few minutes, but first to egypt which has again become a scene of what shed -- of bloodshed and chaos. military backed forces have cracked down on supporters of ousted president mohamed morsi. >> they have cracked down on settlements where pro morsi supporters have gathered for about a month area -- for about a month. >> the events are sparking global outrage. >> egyptian security forces and supporters of ousted resident mohamed morsi fight running battles in the streets of cairo. authorities say they are "mopping up." but the standoff appears far from over.

>> they are firing at us with live ammunition. the army is firing at us. you hear those shots? >> security forces began clearing protest camps at dawn. one in eastern cairo and the other in the west of the city. they told demonstrators to leave the camps before hand, but most refuse to go. then security forces moved in, backed by armored cars and old users. police initially fired tear gas and rubber.... demonstrators responded with stones and models. the situation escalated. there are many dead and wounded. the european union is exercising all sides to -- is advising all sides to exercise maximum restraint. >> we appeal to all factions to return to dialogue

immediately, to enter into negotiations, and sees violence -- and cease violence. order must be returned to egypt immediately. >> both sides are blaming each other for the violence. the egyptian interior ministry says the demonstrators opened fire first. the police responded. but the muslim brotherhood is calling it a massacre. >> let's go to cairo for more, to our correspondent. bring us up-to-date on what is happening now. >> from the morning, the clashes are still contiuing and also protests are widening. we have protests in other parts of the country, for

instance alexandria. they are in upper egypt. churches were attacked. protesters attacked one of the police stations. protests widening across the country. the problem is not becoming smaller, but bigger by the hour. >> what about casualties? we have the muslim brotherhood saying one thing and the administration saying another thing -- >> [indiscernible] more than 90 bodies. the muslim brotherhood are talking about several hundred people dead. this is also part of the propaganda war between all sides. >> what consequences will this have on each of the's attempts toward -- egypt's attempts

toward stability? >> the problems are being created, not only in the north of the country, but there is the fear that this will spark radicalization and affect the future of the country. it has suffered polarization and today it has become even more so. >> ok, we're going to leave it there. thank you very much for that up to date from cairo. joining us in the studio right now is our middle east analyst to talk more about the situation in cairo. all right, so as we heard from our correspondent there, both sides have whooshed up themselves into a corner. you see a way out? >> it is up to the military to

decide. they could continue the repressive policies and stabilize the country for at least a couple of years. they could opt to release muslim brothers and political prisoners and answer a dialogue. simply releasing these personalities would be a signal to the opposition that they are looking for a political solution. >> what about the international community? it has been fairly inactive until now. >> there is nothing like an international community, as we have realized in recent years. the main response here is the united states. they have tremendous influence, especially on the egyptian military. they have made it clear, especially john kerry, the eight except the coup d'état as a

better alternative than muslim rule and that is why we see the situation escalating. >> there is talk the united nations would intervene. does this make sense to you? >> turkey is one of the last allies of the muslim brotherhood in egypt. all the other allies have allied with the new regime including the united states and russia. there is no reason to believe the united nations would choose another path. >> ok. as always, thank you for your insights. >> the first direct these talks in nearly three years -- he's talks in nearly three years. israelis and palestinians were due to come to the table, but there has been no official word

yet. >> there is no optimism about progress being made. tensions are high again since israel approved of the building of yet settlements on land the palestinians see as there's. >> israel has tried to resolve the situation by releasing palestinian prisoners. >> they have not seen their families in years. 26 palestinian risen or is released i israel. they are treated like heroes. palestinian president mahmoud abbas came personally to greet the men. it is meant to pave the way for the first direct talks and three years. palestinians warned that the talks could collapse at any time because of israel's plan to expand settlement. palestinians launched a rocket attack tuesday near an israeli town.

israeli fighter jets was bonded with a strike on -- responded with a strike on gaza. the palestinian militant group, project did the use talks with israel. they called resident abbas's peace efforts "futile." >> we do not want negotiations with israel. we want palestinian peoples to unite. we want the west bank and gaza to unite. corrects the hope is -- >> the hope is negotiators will sit down together at king david hotel. few expect breakthroughs, at least not in the short term. >> another obstacle to resolving the middle east conflict. >> members of the eu are pushing for is really made products in palestinian territories to be labeled.

>> israel says that this is discrimination. >> and some are even comparing it to the star shaped symbols used in the second world war. >> wine harvest is underway. the farm is on the west bank. he plans to label the settlement -- he believes that plans to label the settlement products differently are discriminatory. >> they always want to label israeli products. it is anti-semitism. it used to be the yellow star. today it is a sticker on a wine bottle. i don't see the difference. >> right now, she exports wine to the united states, hungary, and canada only.

she is proud of her wine and her vineyard. the label reads "wine from the land of israel." with labels like this, dealers cannot tell whether the wine is from israel or palestinian territories. the eu wants greater transparency. the netherlands has recommended that they label roddick from the settlements. >> i do not want to support anything related to that. as a consumer, the only thing i can do is to stop buying it, yes. >> i do not think it will be productive. first you have to find the solution for the problem. perhaps separate labels that there is no solution. >> israel is concerned that the proposed labeling could drop sales of all israeli products. >> because it is singling out

israel, it is discriminatory by nature and because it is discriminatory, it is not just to discriminate, but to boycott. >> the eu rejects that charge. it says that israel is a trading partner and welcome, but the settlements violate international law. >> this is our policy. we have seen very emotional reactions from israel, and that is unfortunate. we regret that. we are not changing our policy. we're simply making life easier for for our member states and consumers. >> the wine grower is continuing undeterred. she plans to expand the vineyard. if she cannot sell the wind to europe, she will select somewhere else. >> seven years since the war between israel and hezbollah in lebanon.

>> the civil war in neighboring syria has worsened the outlook. the influx of refugees is having a profound social repercussion. then there is the economic impact. >> it has hurt trade and scared away tourists. we have this from beirut. >> every morning around 6:00, he opens his taxi business, hoping customers will show up here. two years ago the small business employed 10 drivers. he sometimes dropped customers off in jordan or iraq and took the bull to damascus nearly every day. -- people to damascus nearly every day. >> since the conflict in syria started, we stopped driving there. business has gotten worse and worse. we only make the trip there once or twice per month, if at all. >> fewer trips to lebanon, too.

tourism has been hurt by the war in neighboring syria. rich to risk once flocked to -- rich tourists once flocked to beirut and are now avoiding the city. downtown beirut, a legendary party neighborhood, now looks like a ghost town. >> there is no future here. you work and work and then you end up spending more than you earn just surviving. >> he has leased out his carpark to earn extra money and cover his overheads. c occasionally -- plus, he occasionally ferries journalists . he badly needs the cash. >> all right, we will be back in a moment with more news in music and sports. >> and a new kind of transportation that could

revolutionize travel. it is called hyperloop. >> more on that in a minute. stay tuned.

>> a welcome back. the eurozone has from recession for the first time in 18 months. the economic output of the 17 member states grew by a surprising .3%, signaling a fragile recovery. >> it was led by the two largest economies, france and germany. >> after a poor winter, many german companies say their order books are full up again. business investment rose considerably. the german economy grew 0.7% in the second order, the largest

expansion in over here. france's economic performance also exceeded expectations. the second largest economy in the eurozone grew by .5%, more than twice what analysts were predicting. the growth was driven by consumer spending and industrial output. at the positive developments has pulled the entire block out of recession. the joint economic output shrunk for six consecutive quarters, but last quarter it return to growth, raising hopes the crisis in the eurozone could be coming to an end. perhaps most encouraging the news from portugal which is bounced out of recession for the first time since receiving a bailout in 2011. the portuguese economy grew by a surprising 1.7% in the second quarter.

>> we will speak with our correspondent nina hazen now. nina, not long ago the picture in virtual was quite dim. what are some of the reasons for the turnaround? >> like many other countries, it is mainly exports driving portugal's growth. it is an astonishing figure. despite all the figures, there is considerable doubt portugal will be able to finance itself again anytime soon because there are worrying trends in the country. unemployment remains high, even though it has gone down a little, and there is still too little investment. it is a nice sign, but it is too early to celebrate. >> a few weeks ago we saw protests in greece over anti- austerity measures. is the worst over?

>> i would be very careful. the eu economic commission has said exactly that. it is not time to be complacent now. it is a welcome sign of recovery. the eurozone is on the road to recovery. that is what he said. but true economic recovery has to continue after the summer break and german elections in september because of what that is still way too wide. there is still too little investment across the eurozone, and when you have above average youth unemployment of 23% across the eurozone, as we see now, it is way too soon to say the worst is over. >> ok, nina. thank you for that from brussels. >> now to the market report now. the eurozone out of recession. why are traders not celebrating?

>> stocks are struggling. the gdp numbers -- they are not really bad. they are not really good. the good thing is the eurozone has emerged from recession, but many traders doubt the recovery is sustainable. >> unemployment is stubbornly high, isn't it? >> it is. especially countries like italy or spain. first comes the upswing for the economy and then the company's are slowly willing to employ people. this could be good news for the unemployed. let's look at the market. trading volume very low today. the dax up by 0.1%. at the euro stoxx 50 gains only two percent. the dow jones industrial in new york, a little bit softer. the euro is being traded nearly unchanged. back to you.

>> ok. we have a change of pace in our protesters across eastern asia, demanding justice for women who were kidnapped and forced to become sex slaves for japanese troops earring world war ii -- during world war ii. >> estimates vary, but it is believed some 200,000 men were forced into prostitution. >> she died last week without receiving any apology or often station from tokyo. she was 87. at 15 she was promised a job in japan, taken to japanese- occupied burma, and forced into restitution. like many sex slaves, they remain silent for years out of shame. in 1991, a korean woman finally spoke out. they took the protest to the

japanese embassy in seoul. they wanted the u.n. to declare august 14 a national memorial day. she traveled to a socket, japan to to -- to osaka, japan to demand justice. >> we want an apology and an accurate presentation of what happened in the history books. >> in taiwan, activists it to the streets, carrying portraits of prime minister shinzo abe. he caused widespread offense in 2007 by saying that there was no direct evidence japan forced women to work as sex slaves. >> a deal clinched after a seventh round of talks -- both sides blame each other for the park suspension earlier this

year. the committee will determine the losses resulting from the closure. sports news and the athletic championships in russia. yelena isinbayeva thrilled the world with her third world title. >> and discus thrower robert harting completed a hat trick of olympic gold medals. >> robert harting celebrated in trademark style, by tearing off his shirt. he was plagued with that problems during the competition, but he shrugged off the discomfort he posted a winning distance of 69 meters 11. it is his third world title in a row. in the pole vault, the german competitor was devastated.

instead yelena isinbayeva jumped four meters 89 to clinch her third world title. now she is planning a break to have a baby. >> it was not that long ago that people thought flying around the world on planes was science fiction and now here is something that is still probably improbable. imagine going from l.a. to san francisco in just cap an hour. -- in just half an hour. >> a california billionaire has unveiled a plan that would revolutionize transportation. he wants to build a solar powered network of tubes. >> the capsules would be crashproof, but it could still be a bit of a squeeze. ["the jetsons" theme playing] >> futuristic travel was just part of the everyday world of the cartoon series "the jetsons."

people were transported from place to place by tubes. now that may become reality. the concept has been dubbed hyperloop. passengers would be transported on a cushion of air. it will not be for the claustrophobic. in order to reduce air resistance, space for passengers will be cramped. >> it is a transporter machine? >> it is a cross between a concorde and a rail gun. >> a concorde and a rail gun? >> it is a cross between a concorde, a rail gun, and in air hockey table. [laughter] >> the man speaking so glibly is a serious entrepreneur. he is elon musk who cofounded paypal which he later sold to ebay. he also cofounded the electric car maker tesla motors, which is giving conventional automakers a run for their money. and his company spacex built the

spacecraft dragon and successfully sent it to the international space station. musk, age 42, is accustomed to thinking big and that has helped make him a billionaire. dozens of spacex engineers are working on the hyperloop which may transport passengers faster than any airliner. the hyperloop could transport passengers from los angeles to san francisco in a breathtaking 32 minutes. it could run parallel to the interstate highway. >> we need a transportation system that does not require petroleum to operate. that could be his idea. but he has to prove it. >> musk is a futuristic

entrepreneur and more ways than one. his door is open for outside ideas. he calls for collaboration on his website. hyperloop is an open source program. it may seem like science fiction, but must points to his other innovative projects, all of which have been successful. >> he sounds like a very successful man. would you take a tube castable to -- cap sold to work? >> you know i'm claustrophobic. >> and it would wreck your hair. >> angst for joining us. >> c -- thank you for joining us. >> see you soon. captioned by the national captioning institute --www.ncicap.org--

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