>> welcome to the journal coming to you live from berlin. a u.s. military court acquits bradley manning of aiding the enemy but find him guilty of most other counts of espionage. >> israel and the palestinians get talking again. >> italy away to a court verdict that could have far-reaching political consequences. -- awaits a court verdict that could have far-reaching

political consequences. a u.s. military judge has found army private bradley manning not guilty of aiding the enemy but the judge did convict the 25- year-old soldier on multiple espionage counts. >> he leaked hundreds of thousands of reports and cables. >> even though he is acquitted of the most serious charge, he could face life in prison. >> the verdict was not guilty on the most serious counts, aiding the enemy. he won't be walking free as protesters demanded the. the government is seeking the maximum penalties and his case. the informant could face a defacto life sentence of well over one century.

his supporters are calling it an outrage. >> as an american and a retired officer, and i am embarrassed that we don't allow facts out. that the only way fact get out is when the someone leaked said. >> if people can't stand up and tell us what our government is doing, that it is wrong and we are an awful lot of trouble. >> he passed on hundreds of thousands of secret military documents, including this video of a u.s. helicopter attacking civilians. sentencing won't begin until wednesday. but he continues to be a divisive figure.

>> we are joined from washington by our correspondent. what can you tell us about the reasoning behind this verdict? >> the prosecution could not prove to the judge beyond a reasonable doubt that he had the intention to aid the enemy. the way the enemy could get ahold of it, it would be intentional. a fine line that got him out of this most serious of all charges. he can still face life in prison, but many experts are floating the number 20 years, and it could be a lot more.

>> what does this mean for similar cases? does this set a precedent? >> this is the middle of the road a verdict. they will leave if she had gone all the way, it would've been a huge blow to the freedom of the press and would have prevented sources coming forward. this is still a pretty serious a verdict and he is not facing a very happy life in the coming years. they are taking this very seriously and are prosecuting this people. this is what what happened to others if the system had got hold of him. dillon not be in front of a

court martial. >> thanks, max. >> preliminary peace talks between israelis and palestinians have resumed today. he is a seasoned u.s. diplomat and an ambassador to israel. >> that will include a contentious issues, the right of return for refugees. officials are optimistic that progress will be made in this latest attempt to bring both parties to the negotiating table. >> of the left the white house after meeting with president barack obama. the chief negotiator and the palestinian counterpart held talks on monday.

the u.s. secretary of state expressed optimism that the chances for a settlement. >> there is no shortage of passionate skeptics. but with capable and respective negotiators, with their efforts, expertise, and commitment, i am convinced we can get there. >> the two sides hope for a final agreement in nine months. israel says it is principally concerned with security. >> we are hopeful but we can not be naive. we all need for our people to do everything that we can for security and for the hope of peace for future generations.

>> the toughest hurdles are jewish settlements in the status of east jerusalem. >> no one benefits of more from the success. i am delighted that all issues are on the table without any exceptions. >> the negotiations are beginning in earnest. >> we are joined on the line from tonya kramer. do people feel that there is a real chance for peace this time around? >> there is a lot of skepticism and mixed feelings. it is a sense of deja vu that we have seen talks coming and going in the past year. this is what you usually hear

when you talk to them out. they want to talk to the other side but the majority thinks they will not reach any agreement. many people were surprised by the fact that john kerry managed to get the officials together to talk. >> they had a really tough fight on his hands. what obstacles does he still faced? >> his own government, first of all, right wing parties and ministers. they've publicly state they do not support a two-state solution but even if this government goes into a crisis

like the 1967 borders, there could be other parties like the labor party. what is he willing to do? he said part of this decision to prevent a one-state solution, the region has changed a lot since the last round of talks. >> thank you for reporting from jerusalem. >> that have met with the deposed egyptian president and is the first to do so since he was ousted on july the third. >> the second visit to egypt this month, the country to discuss a return to democracy.

>> supporters have been demonstrating for weeks, disrupting public life demanding that the ousted president be reinstated in refusing to accept anything less. >> the only solution we are waiting for is the return of our president. this can be achieved through dialogue or the spilling of blood. the more violence we suffer, the more egyptians will join our cause. >> the chances of a return are low. most egyptians don't want him back. the foreign policy chief spent hours speaking with him at a secret location. >> we had a friendly and open discussion.

i saw where he was at the saudi facilities he has. >> he had access to newspapers, television, and we have made it clear there is no place for violence. also ensuring that it is about an improper way. >> supporters have called for a million strong march. >> return to business news. deutsche bank has been tried to turn over a new leaf since the bosses took over a year ago but the mistakes of the past continue to haunt them. >> the published results with profits cut by half. the bank is going on a radical

diet and planning to shed hundreds of billions in assets to comply with international rules. >> legal costs. they have lots of them. they are facing their role in the collapse of the mortgage- backed securities market. and the huge triumph of the bankruptcy. they have set aside 630 million euros for the cost. profits from investment banking rose almost 60%. profits from private and corporate banking was 500 million. restructuring will create expenses. and where assets have been

expanding the losses. the latest figures show they have 33 times more money than in equity. >> investors did not think much of the new report. >> investors were caught on the wrong foot totally. people here had hoped for a better profit picture. when is a series of expensive legal conflict actually over? there is a better mood for the german consumer, the index climbed. there is a stable economy, a stable labor market.

and interest rates are low and adds to the decisions to buy more expensive product. they also helped the overall equity market in germany today. >> the dax closed very slightly higher. the dow is still trading, almost exactly flat. >> a funeral mass has been hailed for -- held for victims of the bus crash. >> most of the dead were locals. they attended the service and because of the accident is still unclear.

>> an intense evening for belascon >> welcome back. the former italian prime minister has plenty of legal battles going on, but the stakes are higher than usual. he is about to win the second and final appeal. >> he would be stripped of his seat in the seventh and barred for public office for life. the coalition between conservatives and the center- left. >> hoping for a conviction. the case has dominated the headlines in the italian press.

they're watching for any movement. the stakes are high. he has been embroiled in dozens of legal cases. >> he is a powerful man and i think that they are just targeting him. >> he has too many pending trials and i think this works well for him, since all the legal attention makes him look like a victim. >> the current cases about tax fraud and revolves around his broadcasting empire and the questionable sales and purchases of tv rights. the billionaire media mogul is believed to avoided paying hundreds. it could be 01-year jail

sentence and a five-year ban on public office. not to forget other pending proceedings involving sex with underage prostitutes. his problems have not in his political career and his opponents are hoping this time is different. >> a glimmer of hope for gay catholics around the world, " francis's surprisingly frank comments are making many ask if the church as hard line on the subject might be about to change. >> his tone was strikingly relaxed but not yet clear if they can expect any action to follow his words. >> he is proud to be gay and an organizer of the gay pride parade. he had difficulty reconciling his sexuality with his catholic faith so the pope's words meant

a lot to him. >> i had to read it over again and watch it again on tv. maybe world youth day inspired him a bit. >> on the return flight, he fielded questions and said something no one was expecting. >> if someone is gay and seeks though lord with goodwill, who am i to judge? >> is not clear how much acceptance it will mean. the auxiliary bishop says it was an overdue signal and hopes to an end for discrimination. >> they exist, they are god's children and he loves them as much as everyone else. we have a history that includes a lot of discrimination and it is important that we overcome it.

>> they seemed to herald a new acceptance. in the church as eyes, the act remains a sen. gosh juggling young kids with jobs is not easy. in germany, providing child care has become a pretty hot political issue. >> giving families the right to a preschool they care for young children but not enough places to deliver on that promise. >> 14 has a day care place. greece and austria have among the lowest rates in europe. >> here in germany, a big gap between supply and demand.

the letter rather have money than a day care center. >> we started registering. the daycare center next year at the earliest, it is a drag on the household budget. >> partners parents and i don't live too far away.

>> that is the reality for many families in germany. the situation is less acute in eastern germany where day care was a priority in eastern bloc times. there is a day care center in frankfurt. >> our capacity here is completely exhausted.

the coats rooms, and more children. >> it is hard to keep disappointed parents that want to have their children taken care of here. parents should use their new rights in this to -- and sue. that is the only way to wake authorities up. >> current legislation is a definite improvement on what we have before. i also believe that ultimately, all parents will get a day care spot. but with less space of one or two years. >> they have hired a nanny, a lot more expensive than public

daycare have a plan to sue the government for the difference. >> germany's opposition, democrats racing to turn their campaign around. >> the efforts to unseat german chancellor merkel, the party is pledging to fight for a legal minimum rage, -- wage and low rent. >> they are not the only one struggling to assert dominance. >> she still holds the best hand. the left party could still pull out an ace and the free democrats.

opinion pollsters announce new shift in the balance of power. >> the closer we get to the elections, the bigger the role the cabinet's play. the have to convince themselves and make people believe they have a passion for their causes. >> negative headlines can overshadow key political messages. the party is promising lower taxes and more protection of civil liberties. but earlier this year, they were accused of sexist comments. >> it has been knocked over by another negative story making it difficult for them to pass the 5% threshold needed to enter

parliament. >> controversy in the percentage points in the polls. >> every time, they started messing it up themselves. >> they can ride them out. it plays well with voters. >> the strategy is to vote confidence in herself and that it is best to represent germany

in these economic times. >> has the outcome of the game been decided? this is the cards can be reshuffled right until voting begins. >> one of the icons of german soccer facing criminal charges. whether or not to go to trial. they turned himself in an earlier this year. the authorities raided his home office. we are out of time.

>> coaxing israeli ends and palestinians back to the negotiating table. for the first time in three years, face to face meetings. but can they lead to meaningful discussions? this is "inside story." hello, and welcome to the program. i am mike hanna. it is a conflict that hi