>> "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. newman's own foundation. the john d. and catherine t. macarthur foundation. and union bank. >> union bank has put its global expertise to work for a wide range of companies. what can we do for you?

>> and now "bbc world news." >> barack obabama pushes for reform on wall street, but what chance of changing a culture that bankrolls the political parties? a series of grenade blasts in bangkok. the standoff between protesters and government forces. tackling foreign affairs. britain's leaders go head to head and a televised debate. welcome to "bbc world news." broadcast to our pbs viewers. coming up later, catholic bishops apologize for the abuse of children by priests. they admit chain it has brought on the church. shame -- they admit brought on the church. and nasa's

aircraft. aircraft. new the question, how to prevent a repeat at the economic collapse? in the u.s. president obama set out his case for reform of the financial system. this is a speech a few feet from wall street. reining in the banks and practices blamed for the crisis. even in one year of midterm elections, signs are republicans and democrats may be moving towards agreement. this report from our north american editor. >> wall street woks tall again making a profit women over the rest of the economy, but the most powerful -- making a profit over the rest of the economy. they said they had to change direction. unless they made out like bandits depended on bilking

people, they had nothing to fear from new rules. >> i am here specifically when i speak to the titans of industry, i want you to join us instead of fighting us. [applause] all i am here because i believe these reforms are not only in the best interest of our country, but in the financial sector. >> they tougher rules would mean a new agency to regulate consumer loans like credit cards. the controversial derivatives markets where profits comes from betting on products seems open to scrutiny, making sure the financial industry foots the bill when they get into trouble. at the nyse, some i agree with the president that the financial industry should stop lobbying to kill the bill. >> we have all lost a lot of money. we were all put at risk. nobody wants to go back there.

>> this statue celebrates what they love, a bull market. republicans have a dilemma. they know opposing rules may be unpopular, but thinks the president's words are nonsense. >> we don't want to throw [unintelligible] this is the most important industry for new york city, the financial industry. it can very easily move to hong kong or london. >> this may be the engine room of the american economy, but these people are not too popular. president obama [unintelligible] are you with the american people or the people? >> also in washington, our correspondent assessing the impact of the president's speech. >> over the last five u.s. what do youef's --

make of president obama's push for fundamental reform? >> you have to back it up and look at the broader context. we are in a financial crisis. how do we prevent that from happening again? president obama is trying to figure out how to do that. one of the ways to get there is a regulatory reform. overall, that is what he is trying to get done. politically, he needs to get it done because you want to show you can take action and not just throw money at the problem. >> is your assessment of somebody who has watched the market for so long that this is the right balance or it tips towards excessive regulation? >> my guess is it will tipped towards excessive regulation, but that is probably natural. the question will become not will markets adjust? if they don't adjust quickly it could be a problem for economic

growth. if they do and you figure out how to deal in this new environment, that could be good. >> what is your belief about the time scale and whether this bill could get through? >> i would give it about an 80% chance it would get through. that means it will get through within a month. but it still has to go through another part of our system, which is covered sea between the house and senate and through the presidency. -- which is conferencing between the house and the senate. >> there is a problem it was all politicized. it is hard in an election year. >> i believe both democrats and republicans want to get something done, but i don't think either of them wants to look like they are protecting wall street. they want to make sure they don't screw up the capital markets. that is a hard pellets to make. >> to have worked closely with timothy geithner art. -- that is a hard thing to do.

what is your assessment of him? >> i think he is an excellent secretary of treasury. i am not of the same political beliefs at the , he is a very competent man. -- i am not of the same political beliefs as him. >> thank you so much for your time. we will be watching as harry reid says he plans to begin this crucial votes by monday night. we have another tense week ahead in congress. we will let you know if the president gets his way. >> we will let me know. what seems to have been coordinated explosions in bangkok killed at least three people. they were concentrated in the area where government troops are facing off against opposition protesters. the attack has only worsened attention and the government is blamed for red shirt protesters.

we have the latest from bangkok. >> more blood on the streets of thailand as a series of explosions cut through a crowd of people demanding an end to this crisis. on the edge of one of bangkok's biggest entertainment areas, foreigners were among those hurt by grenades. the blast started a small group of people opposing the red shirts who had occupied and blocked off parts of bangkok for six weeks. the military have been on the streets since monday. since thousands of the anti- government demonstrators threatened to move into the financial center. but the troops avoid a confrontation. day-by-day the heat has been rising but fears the army will use force to break up the protesters who have blocked off the retail center of bangkok.

it is dangerous. as we watched, a few agitated move forward aggressively it without being stopped by police. -- moving forward aggressively without being stopped. a small group of people came forward and they tried to start something up. [unintelligible] >> it was a fireworks, but this put everyone on edge. a security forces seemed reluctant to get involved. 10 days ago the government's attempt to disperse demonstrations led to violence and deaths. but the red shirts are determined, they represent a deep divide in thailand. they want the prime minister to resign and show no sign of

dispersing quietly. this is a street normally teeming with tourists and business people, but is now resembling a military front line. the attacks have a ramp at tension -- ramped up tension. the question is whether this can be resolved peacefully. >> the israeli prime minister has rejected calls from the u.s. to stop building new homes for jewish settlers in occupied jerusalem. benjamin netanyahu spoke and the u.s. envoy was arriving in the middle east. the prime minister said there will be no freeze and construction. palestinians hope that will be the capital of their state. the pakistani government announced a new energy-saving policy to combat power sources. blackouts have been lasting up

to 16 hours a day. this includes turning off lights in government offices. armenia's coalition is freezing ratification of a landmark on normalizing relations with turkey. hostilities between them stem from the killing of thousands of armenians during the first world war. civil servants in greece are on strike. protesters gathered not far from where officials of the imf were discussing the details of the rescue package for greece. the leaders of the catholic church in england has issued an apology to the victims of child abuse by priests. the archbishop said the scandal brought deep shame on the church and the response of some leaders has been inadequate.

this report from our religious affairs correspondent. >> it lies at the most powerful church, the vatican has built under a barrage of criticism. headlines have denounced it for failing the most will marvel of its members. >> -- failing the most invulnerable. today came an unprecedented apology. they shared responsibility for the abuse and the way it was covered up. >> we offer our heartfelt apology and deep sorrow to those who have suffered abuse, those who have felt ignored or betrayed. >> why such contrition now? pope benedict will visit britain in september as the church needs to take the heat out of this issue. just yesterday the pope promised and effective measures to bring an abusive priests to justice.

>> we need more than an apology, we need action. i am not sure people who have been abused as children will ever understand the idea of closure, because what happened should not have happened. we live with that until the day we die. >> crisis shows no sign of slackening. another irish cleric resigned over his handling of abuse. >> a german bishop offered to step down. he has been accused of hitting children as a priest several decades ago. >> the church in england has had a zero tolerance approach to sex abuse which the vatican is likely to use as a model, but to repair its image they will need to do more than apologize and make sure it does not happen again. the scandal has made the church 's beliefs seem at of step with mainstream opinion. catholics need to find a way of

explaining them to an increasingly skeptical public. >> stay with us on "bbc world news." three people battled out over the britney economy. candidates for the presidential elections in austria -- over the britney economy. -- britain economy. bethany has this report. >> barbara on the campaign trail. in the past she has criticized parts of austria's anti- nazi laws, saying they go against freedom of speech. it has caused outrage here.

austria was deeply involved in the crimes of the third reich. now it is illegal to deny the holocaust or make statements that glorify the nazi regime. >> i will not give you my voice. >> these days she strongly denies ever wanting to get rid of the anti-nazi laws. she says the presidency should properly represent austria. >> it belongs to the austrian people. anybody who wants to say something must find a person to talk to. >> many austrians thing is a scandal she is running at all. -- they think it is a scandal. there have been protests against her presidency.

barbara is not expected to win this election. polls say the current president is likely to get about 80% of the votes. the sensitivities about austria's past still run deep. >> the latest headlines for you. president obama is urging wall street not to fight its financial reform. there are signs of agreement between republicans and democrats. at least five grenade explosions ripped through the bangkok capital. it killed at least three people. britain's prospective prime ministers, gordon brown, david cameron and nick clegg have clashed in another televised debate. this time it was foreign

affairs. all eyes were on nick clegg to see if he could repeat his performance from the first debate which gave his party a surge in the opinion polls. our political editor reports. >> would this be his night again? nick clegg possible ways suggested he had no nerves. -- nick clegg's ways suggested he had known there is. -- he had never nerves. gordon brown arrived for a debate. please welcome david cameron, nick clegg and gordon brown. >> the three men know that last week's debate made history not because it was the first, but because it shifted opinion as it has never done before. >> this may have the feel of a tv popularity contest, but this is an election about britain's

future, a fight for it your jobs. if it is about the big decisions, judgment, delivering a better future, i'm your man. >> it is clear that the country wants change, but the question is, what sort of change and who is best to lead that change? if you vote conservative he will get a new team running the country. he will not be stuck with what you've got now. but real change comes from your values. there are big differences. >> we should not have sent soldiers into battle without the right equipment. we should not have invaded iraq. i want us to leave in the world. i want us to lead in europe. i want us to lead in creating a world free of nuclear weapons. i want us to lead on the biggest

challenge of all, climate change. >> the first argument was about europe with the court in brown and nick clegg warning that david cameron precisely britain. >> imagine a meeting if david cameron was in charge two months from now. >> it is a hypocrisy people are fed up with. people saying i will stand up for europe and we should fight for british interests and go to brussels and do the opposite. i want to make sure we say the same thing about wanting to be in europe but not run by europe. wanting to trade with europe but not go to brussels and say something different. >> how does it help anyone to join together in the european union with a bunch of anti-

semites could deny climate change exists? of course we need to change the european union. you changed clubs by getting stuck in and not standing on the sidelines complaining. >> nick is anti-american and both are out of touch with reality. >> it was a turn of david cameron and gordon brown to turn on nick clegg. >> i believe we are a safer having an independent nuclear deterrent in an uncertain world. we simply don't know what the world will look like in 40 years. >> you cannot take risks with this. if you don't believe me then delete the several generals who wrote saying what i have been saying all along? >> i have to deal with these decisions every day and i say to you, i get real.

iran might be able to have a nuclear weapon and they may take action. get real about the danger that we face if we have north korea and iran with nuclear weapons. >> what is dangerous is to commit to spend a lot of money but we might not have when a system that will not help when the world is facing new threats? >> i agree with gordon. you cannot put off this decision. >> it was two against one when they came to the issue of [unintelligible] nick clegg took allegations that he had taken personal money into his bank account. >> doubt anyone try to put themselves on a pedestal. -- don't anyone put themselves on a pedestal.

>> if you're going to persuade people to invest trust again into politicians, then it is not good enough to just talk the talk. >> the prime minister was much more aggressive last week, accusing nick clegg to be a risk to security. he claims both were hiding cuts. >> david did not mention three items. >> let me do it right now. >> will you withdraw the leaders going out saying that the conservatives would take away the things like the free bus ride? you should be ashamed of that. >> i have not offered that. why is it not in your manifesto that you are keeping free prescription charges? >> there was more on immigration and whether the government will be better if they work together. what do those watching outsideo?

will they deliver a victory to any one of them or force them to shake hands and work together? >> and our political editor with that report. let's take you to try lockup. -- let's take you to sri lanka. he will take part in the swearing-in of members of parliament. he demanded his freedom with an attack on his archrival. the belgium prime minister has decided to resign as a key partner has resigned from his coalition. they walked out when it tends to review the boundaries failed. a financial magazine released its latest football rich list. the average worth of the 20 richest clubs fell by 9% last year, but manchester united topped the list. madrid in second place saul

their value fall. sa -- w their -- saw value fall. nasa unveiled a new tool in unraveling the mysteries of the world. it was developed by the space agency in partnership with germans. we saw it in a hangar in southern california. >> it looks like a regular passenger airplane until you see this gaping hole. it is the most powerful airborne observatory in the world. the key component is the infrared telescope which is exposed through this whole. it rolls up to expose the things inside.

the light bounces to the secondary mirror. from there, the light bounces back to the tertiary mirrors. from there, it is bounced to a hole in the aircraft. did you realize this is no ordinary aircraft? it has been stripped out and fitted with scientific gear. this is where the telescope operator has his controls. the mission director sets in these seats here. in front of him is a row of seats for scientists operating their equipment. right at the front is the telescope. the other side of the telescope we saw. your the operation manager here. >> yes i am. >> how much better is this? having a telescope at 40,000

feet as opposed to working on the ground? >> the ability to get above the water vapor is an advantage. what -- much of the infrared spectrum is constructive. once you get to 40,000 feet you have nine & of water vapor eliminated. you can make very good operations -- good observations. >> an extremely powerful tool for the astronomers working for nasa. >> this document reeks of history. it is a hand written transcript from the ok corral. it was found in a dusty boxes more than 125 years after the best known shootout. court officials in arizona found the document. it will be restored and put on the internet. it may not resolve the dispute

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