>> "bbc world news" is presented by kcet, los angeles. funding for this presentation is made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, the newman's own foundation, the john d. and catherine t. macarthur foundation, and union bank.

>> union bank has put its financial strength to a wide range of companies. what can we do for you? >> this is "world news" today. a new swine flu warning. the virus is now in almost every country across the globe according to the world health organization. a big change for china. the controversial one child strategy is being relaxed. >> 1/3 of the people will be

over 60. who will pay to care for them? >> corruption at the heart of one of the few success stories in iraq. also, the global downturn hits microsoft. sales slump. it says it is a challenging year ahead. we will get a guided tour of the queens home in london as it prepares to open for the public. >> it is 7:00 a.m. in washington, midday in london, and 1:00 a.m. in geneva. world health organization says swine flu has spread to almost every country across the globe. 160 out of 193 w.h.o. member states. the chief police the pandemic is in the early stages and it is

possible that two billion people could be affected before it is over. most of the cases have been relatively mild. first, the latest details from our correspondent. >> the bad news is that swine flu has spread virtually around fell world. the behavior of the virus is not changing so far. most people have mild symptoms. urgent measures have been taken to fight the disease. it has killed 800 people and infected too many to count. it is still early days for this global pandemic. the first vaccine began in australia, one of firsworst affected countries. drug companies will do well as the pandemic spreads.

the makers of masks are also reporting good business. in britain, a special hot line was set up. the big concern for the world health organization is the ability of poor countries to respond. 150 million doses for developing countries. it is negotiating with manufacturers for more. >> i'm joined by the spokesman for the world health organization. it appears to be unstoppable. >> yes, as you said, there are now 160 countries and territories affected out of 193. we do expect eventually every country in the world to be affected >> there have been 800

deaths. you're watching the mutations. >> influenza viruses are notorious for being unstable. >> you said today in a news conference that the vaccine is still a few months away. >> yes, we expect the first those to be available for human use in early autumn. >> how quick? october or november? >> probably. we do not want to put a definite date on this. each miniature works at different -- to manufacture works at a different pace. it will probably be the end of the year before we have large

doses available. >> in cases sound as though they will not be available a enough for the large part of the winter flu season. >> everyone is working as hard as they can and as fast as they can to test the vaccine. everyone hopes it will be available sooner rather the later. we just do not know yet. >> thank you very much. take a look at the rest of the main news. urban couples in the country's most popular city of china are no urged to have two children under certain circumstances. china has an aging society and will be more young workers in the future. the one child policy tried to contain population growth. it was introduced 30 years ago. >> family planning officials and

volunteers are visiting families that meet certain criteria throughout shanghai to remind them that they can have a second child. if you live in a city in both parents are only children themselves, then they are allowed to have two children. the reason shanghai is doing this -- it was one of the first cities in china to become richer under china's economic reform. as a result, people that are living there are a lot healthier than some of the other places in china and are living a lot longer. by 2020, 1/3 of the people in the city will be over the age of 60. the problem is, who is going to pay for their care? shanghai is encouraging people to meet the criteria to have a second child. they are the first city to do

this so openly. i am sure other cities will follow. >> international observers say the presidential election in kurdistan has fallen short of key standards. the human rights watchdog has reported alan box stuffing. -- ballot box stuffing. calcutta -- thousands of private bus and taxi operators begin an indefinite strike. they oppose plans by the authorities to ban all commercial vehicles over 15 years old on august 1. the president of indonesia was reelected for a second five-year term after winning more than twice the votes of his rival. the president won 60% of the popular vote. legal documents have confirmed that michael jackson's personal

doctor is the subject of a manslaughter investigation. the search warrant allows the authorities to seek evidence from dr. murray, who was with michael jackson shortly before his death. lawyers representing the burmese pro-democracy leader aung san suu kyi making final arguments, attempting to save her from a five-year prison term. no sign that the military rulers planning to free her. she is charged of violating the terms of a house arrest. let's speak to our correspondent in neighboring thailand. it's a pretty crucial day for the defense. >> it is. they have drawn up a 23-page defense document in consultation with aung san suu kyi. they were allowed two hours with her yesterday. they repeated their argument that she should not be held

responsible for obvious reasons. she was under house arrest. her house was under guard by government security agents. the other argument they made is the law under which she was charged was abolished 25 years ago. her lawyer says these are strong arguments. this is a very politicized trial. nobody thinks that will hold water. the government is following a process that is doing things in its own favor. they have now adjourned before the prosecution was able to make its final summary. the prosecution has the lead to consider the defense's summary. >> the military rulers are under a lot of outside pressure. any size they are buckling? >> even if they wanted to make concessions, i do not think it would be willing to do it in

response to pressure. nobody has expectations that the international outcry over this trial will make them relent. a guilty verdict is believed to be inevitable. the international pressure gives in to the longer-term results. secretary of state hillary clinton has visited the region in the last few days. i think there's a recognition that the hard-line approach does not work. even if aung san suu kyi remains in custody for now, governments have to think about building some kind of bridges in the event of possible changes in the future. there's no signs of it now. after the election next year, there's the possibility of some change. western governments now recognize the need to grasp those possibilities and try to build a better relationship.

>> thank you. pretty bad news for microsoft. they are really suffering the event of the global downturn. >> i am trying to compare this to apple, which is a much different picture. of the iphone. microsoft has fourth quarter profits down 24%. it is the first year since 1986 that the revenues have fallen. microsoft is very linked to the idea of the personal computer. people are not willing to renew their pc's. they're holding back. on the other hand, the iphone is seen as more of a fashion item. >> businesses are not setting up new offices or reinvesting. >> it is along the lines of

getting a new car. it is something you can put off. the old one still works reasonably well. >> says a lot about the state of the economy in terms of weakening consumer demand. >> yes, and we've got figures from ericsson. they're operating figures are up 49 cents. that is fairly healthy. the restructuring charges and also worries about sales of their mobile phone. we will be talking to the chief executive designate. i hope we will get some idea about global operations and which part of the world he sees moving forward. and where the economy is going in china. >> thank you very much. you are with "world news" today. changes in northern iraq. kurds are going to the polls and the reformers are challenging the two main parties.

we will go inside buckingham palace in london to get a look into the lives of britain's royal family. stay with us. the rest has brought outrage and increasing concerns about corruption 40 people contained in new jersey and new york. it's all part of a 10-year investigation. it has uncovered illegal activity ranging from money laundering to trafficking. >> the arrests were on a massive scale. city mayors, politicians, and religious leaders were taken to jail. >> the complaints show that for these defendants, corruption was a way of life. they existed in an ethics free zone. they exploited giant loopholes in the campaign contribution rules. >> also thought that religious

charities were used to launder cash. this is part of a 10-year operation that uncovered money- laundering on an international scale, as well as corruption and the sale of human organs in the u.s., switzerland, and israel. >> this case is not about politics. it is certainly not about religion. it is about corruption, arrogance, and a shocking betrayal of the public trust. >> 1 rabbi was dealing in human kidneys for transplant for decades, putting them form -- buying them from the honorable people. >> i think is a black eye for jersey city. every time it looks like we take a step forward, we take two steps back. >> more than 130 public officials have pleaded guilty or

have been convicted of corruption in the last 10 years. >> this is "world news" today. world health organization says one flu has spread to almost every country across the globe. authorities in shanghai are allowing couples to have two children over fear of a future shortage of workers. part of iraq that has been held by the united states has a great success story, but now marred in allegations of corruption. opposition candidates are pressing the case for reform. the northern region of kurdistan to hold elections on saturday. 2.5 million kurds are eligible

to vote. the ruling coalition is expected to win again. it is made up of the kurdistan democratic party winner and the democratic union of kurdistan. until now, the ruling coalition has remained unchallenged. on top of the agenda for the new government our relations with the central government in baghdad. the iraqi kurdistan must also secure a deal with baghdad over oil expertexports. also, there are concerns about the level of corruption. >> among the iraqi kurds, changes in the air. that is the name that they have given to the reform movement. it has generated a buzz that has not happened here before.

this is the plan at the center of it. his campaign for transparency and real democracy has struck a chord among kurds. >> the kurds have been holding their own elections since the early 1990's. since then, political life has been dominated, some would say stifled, by the two big parties. now they face their biggest challenge ever from reformist from within, making this the most exciting election they've ever held. >> the leader for years -- he says his calls for reform from within went unheeded. >> everything, in the parliament, in the cabinet, and the judicial.

the financial corruption we have. although he is president of the truck, he has been campaigning for his own party. he knows the criticism is serious. >> i think there's still popular among the people. there are people -- they are people, like ordinary people, making mistakes of course. >> the change movement believes it could win enough seats to join with other opposition parties to block the majority enjoyed by the two big ones until now. many believe things here will never be the same. >> joining us now from southwest

england is a professor, an academic, curtikurdish politicso give . >> the elections promised to alter the landscape in a way that has not been seen in the past. it will certainly mounted very serious challenge and force the political leaders of the current leading coalition to think about how they reflect on kurdish politics, and how they go forward in the future. >> the two main political parties were the former freedom fighters. >> yes. i do not think we should be dismissing them. they remain tremendously popular.

and i suppose increased legitimacy. even though that is still a very long way to go. >> on the trips i have made to kurdistan, it is different from the rest of the riraq. the security is much better. it is very important to the west for aid to continue to be a success story. -- for it to continue to be a success story. >> it is far more peaceful and more stable and prosperous than the rest of iraq. the party has had its problems, but they are seen as being as going in the right direction. there's still a tremendous way to go.

it is whether the future party can meet those expectations. >> whoever is in power, they will have to do deals with the baghdad government. there's still a political standoff. >> yes, there is. kig and the kurdish parties are not necessarily operating in a position of supremacy, buzzards only one of equal strength. they believe they can no longer be pushed aside as they have been in the past by the government of saddam. >> thank you. you and good will ambassador angelina jolie has made her third trip. the actors visited a makeshift

camp for displaced iraqi families in baghdad. she has hit more than 20 hot spots, including iraq, afghanistan, pakistan, and sudan since 2001. we have been allowed behind the scenes at buckingham palace in london ahead of the summer opening. the state rooms are open to visitors for two months premier. that is when the cream mixture makes her -- that's when the cream mixture annual visit to scotland. >> she had been calling for just one year, but in 1953, as head of the commonwealth, queen elizabeth in part on her first world tour, taking in 13 countries across four continents. lady pamela hicks was a step behind. >> quite often, they would come

up to me and davidson, now we know what we fought for. >> the queen has made 175 this visits. >> we look at a dress like this , but when we look closely, we see the wonderfully be the import duty -- the wonderfully beaded embroidery. >> the wealth of gifts on display. equally as precious, this chess

set given by nelson mandela. >> then there are the presence that even buckingham palace does not have room for. >> in 1949, the london declaration establish the modern commonwealth. george vi death meant that queen elizabeth took on the role. >> i think she has provided the trend. i suppose you could call it. >> almost 60 years ago, the queen said she would give her heart and soul to this equal partnership of nations. she has become the most travel market in history.

her commitment continues to be appreciated by millions. >> the only country in the commonwealth the queen has not been to is cameron. though last chance in this. >> he will be around in 2010. just three stages -- the leader and extended his lead after winning on thursdays time trials. a disappointing day for lance armstrong. he has moved up from fourth place to third place. this man in blue could threaten. his from britain. he has become the first british athletes to finish the tour in the top three. he is on course to win his second title. the perfect game for a baseball pitcher means not allowing a single batter to reach first

base over nine innings. the equivalent in cricket -- on thursday, only the 18th pitcher in more than 100 years of major- league history to achieve this very barfeetrare feat. 27 went straight back to the dugout. president obama gave him a call to say well done. >> because the president does not have more on his mind than that? thank you very much. this is abc "world news -- this is bbc "world news." >> funding for this presentation was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, the newman's own foundation, the john d. and catherine t. macarthur foundation, and union bank.