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." >> the rogue trader of france, guilty of multimillion-dollar fraud. the man that claims to was a scapegoat for the banking crisis is in jail. covering up a debt of $70

million, his lawyer says there will be an appeal. >> this judgment is totally unreasonable, saying that the bank is not responsible for anything. not responsible for the creature that the bank itself as designed. >> welcome to "gmt." also in the program -- >> boom, boom. >> we are with the troops in saudia. the graphic footage has sparked a fierce debate in australia about police used a stun guns. midday in london, 7:00 a.m. in

washington, 1:00 in the afternoon in paris, where the french road trader has been sentenced to three years in jail for banking fraud. between 2007 and 2008 he covered up that's -- betws worth over $7 million. he opens a window into the pressure cooker world of high finance. >> guilty of all charges by a one of history's biggest frauds. his lawyer called the verdict senseless. >> this judgment is totally unreasonable, saying that the bank is not responsible for anything. my client is said to be the only

one responsible for all of the crimes of the banking sector. >> jerome kerviel was charged in 2008. he became instantly famous, fraud on such a scale that almost brought down one of france's oldest banks. hit -- the defense blamed the culture of the bank. but the court found that the blame rested should sort -- solely on the shoulders of the road trader. >> this is a recut mission that the bank could not have known about the fraudulent system, showing that the allies, the forged documents, all of the methods used to deceive the message -- the management were

unknown to the bank. >> jerome kerviel was allowed to leave the court today to prepare his appeal. many in france see him as a scapegoat for a banking industry that was dangerously out of control. >> joining me now to discuss the verdict is our chief economics correspondent. essentially the court has blamed the entire multibillion- dollar fraud on this one man. >> yes, george, i think the bank will be quite believe that this outcome, although we are hearing that there will be an appeal, so the bank could go down that avenue. the bank pointed to the judge's comments that jerome kerviel was not even given tacit authorization to speculate in this manner, that he went beyond

his remit as a traitor according to the judge. and he tried to make out that the bosses knew all about it encouraged his risky position taking, but the court has found in favor of the bank and against him. >> is it conceivable by a modern banking that you could have this level activity go on scene? >> many in the markets will raise eyebrows, but will remember the famous drove trader of 1990, when he went ahead and took these risky positions, widely seen as because of the incompetence of the board. you could argue that even if they did not know, should they have known? there are some in the market to say that it is inconceivable that with the mark -- with all of the trading systems, the

question is where in the chain was it? senior bosses say that he simply did not know. let's take a look at some of the other stories making headlines from the world. germany is again the center of a terror investigation. saying that some of its citizens were killed in the u.s. drone attack. our berlin correspondent has the latest. >> it is assumed that the men vanished in northern pakistan. that he is now being questioned by the americans. when the united states learned of terror attacks, it is thought that the information might have come from him.

over the weekend, american warnings tightened security in european cities, particularly at prominent landmarks and tourist spots. but the german interior minister said that he saw no immediate threat. >> there are currently no indications of an immediate threat against germany. however, there is a high, abstract threat where germany invests in for fighting against international terrorism. >> the pakistani authorities are not saying specifically who may have died in the latest attacks, but they are indicating the important targets. >> several important people have been targeted. the others are certainly on the radar. >> what ever the immediate

threat in places like this where tourists gather, clearly a long- term threat remains. german authorities reckon that there are 130 people in this country capable of political crimes of considerable scale. the drone attack in northern pakistan has not diminished much. steven evans, bbc news, berlin. >> one of the latest challenges in the fight against terrorism, pakistan has been angered by nato's incursions on its territory and have accused militants across the board. we're discussing this with the governor of across province, joining me from brussels. first, what is your reaction to this latest cross-border attack

by a u.s. drone? >> thank you very much for inviting me to express my view on this issue. actually, a host is a province that we have fought over for 148 kilometers. we are trying to have as much possibility for security in that host area. we are having some intelligence with destroying our schools.

>> as you know, these insurgents cross the border from your territory and into pakistan, back again. do you approve of these cross- border attacks? >> actually, the u.s. drone of the tax, and nato, that is with the u.s. political forces in our province, we are trying as much as possible to do insurgent activity. click trying to do as much as possible to save our people. >> i understand you are trying to protect your people inside of the province, i am saying that the insurgents who are trying to deal with have moved across the border, so how does one deal with the fact that some of them

wind up inside of pakistan? >> actually, in our province, the insurgent, which is inside activity for stability, we are much disturbed by their activities. they are trying to get rid of them, trying to be more united with security deployed in the area that can stop this kind of terrorist attack on our forces. >> thank you very much. thank you for your time. rescuers are drilling to me save

-- drilling to save the trapped chilean miners. the debate was whether to bring them to the surface without first lining the metal casing. money laundering and fraud convictions have been dismissed against a russian, but he is slated for extradition to the united states. a british comic actor, norman wisdom, has died at the age of 85. he was a huge star in albania, where his films were the only western films allowed when the country was ruled by a dictatorship. there has been anger in australia at the release of a video that shows an unarmed at

-- unarmed aboriginal man being tasered. happening in 2008, from sydney here is nick bryant. >> this is the disturbing close- up of the video footage taken two years ago at the police detention facility. showing the treatment meted out by the group of police officers against an aboriginal man, thought to be mentally unstable. at first the police tried to subdue him using a single blast from a stun gun. then they used it again and again. 13 times in total, the last five off camera. even know the man was clearly in

agony. in an internal investigation, two senior constables were fined for using excessive force but no charges were brought against him. the premier of western australia has strongly condemned their actions. >> this was excessive use of a taser that could not be justified. >> released as part of a report on the use of tasered guns, they were introduced to provide officers with an alternative to handguns. the report found a growing tendency to use them for normal compliance and on those resisting arrest. >> clearly do not want to use them as compliance tools. >> coinciding with a deft in sydney of a man who threatened the police with a knife, stunned with a taser gun. fuelling in national debate over the use and possible misuse of

tasters. >> still to come, training to fight the new militants' threat. we have a special report from somalia. toxic red mud has flooded three villages in western hungary, coming from a reservoir of the contains aluminum production residue. the government has declared a state of emergency and cleanup operations are under way. >> rivers of caustic mud flow down the streets of this village. this is just one of three villages flooded by waves of sludge. hundreds of homes were flooded, dozens of people have had to be rescued. the mud was relieved when reservoir of a mechanical processing plant was found burned. two were killed, dozens were

taken a hospital, some of them reportedly suffering from burns. >> people were shouting, looking for shelter because the dam has burst. i looked back to take a look, but the water was already coming. within a few minutes it was already 1 meter deep. >> the guard and disappeared. they say that one house collapsed and the fences were destroyed. >> up to 700,000 cubic meters flooded out and into nearby villages, where children have to be evacuated from their schools. the rushing flood it is reported to reach 2 meters in height. >> two locations have been badly affected. here the floods have begun to receive. 25 people were taken to hospital. they had burn injuries where the skin came in contact.

>> army vehicles, helicopters, and soldiers have been sent to help with cleanup and rescue effort. investigations have been launched into what caused the reservoir to burst. >> this is [no audio]" -- this is "gmt." in french freighter that lost billions of dollars has been jailed for three years. germany is at the center of a terror investigation as they would lease information that some of its citizens were killed in a road attack in pakistan. one of the biggest british retailers in the world, good numbers? >> third largest in the world, in fact. there you are.

course, bear the name behind fresh and easy, revealing strong earnings of $2.5 billion for the first half of the year. of course, no surprise, this was all done things to work in asia. but five months left at the helm, many are keen to see how healthy the supermarket will be left. julian has this report. >> criticized and revered for its growth and domination of the supermarket sector. as the outgoing boss looks back on his legacy, the u.s. might prove to be his achilles heel. they knew that cracking it would secure their growth for decades. they were meant to break even this year, but after reporting a loss of $161 in the first half,

it is set to become profitable by 2013 as a doubles openings to two per week. >> they still make two-thirds of its crop -- their profits here in the uk. to combat the slowing market their spending $3 million developing shopping malls in china and south korea. >> the business has grown nicely in the u.k., taking in existing stores and new stores. of course, we have been able to open up new areas of business on areas of international banking and so on. of course, the majority of our growth going forward will be in other countries. >> rise in wholesale costs have affected customers in their profit margins. revenues are still up. in asia they jumped by 12%.

europe sought an increase of 9%. u.s. sales leapt 45%. >> it is interesting to do the inflation, taking some shine off of it, but another -- nevertheless it is a great result. >> costs driven higher by growing demand from asia, including a drought in russia. but the pain to customers at the checkout may mean that stores need to raise prices to cover increased costs. >> a couple of other stories to keep you posted on that are making headlines around the world. european officials have urged china to allow its currency to appreciate. representatives of countries that use the euro were part of the summit in brussels, but after the meeting president said

that he had seen no sign of movement on the chinese side. american express is being sued by the u.s. government over claims of anti-competitive practices, saying that their mergers prevented undercutting. they also accused mastercard and visa, who have agreed to settle the case, but american express is fighting the charges. credit ratings will be cut again after a weak economic recovery and rising borrowing costs, cost of bailing out the irish failing banks had raised themselves. australia left interest rates on a whole as a surprise on tuesday for the fifth consecutive month, fighting moderating inflation and uncertain global conditions.

glenn stevens said that rates were close to their average but warned that they would be likely to push higher at some point. japan's central bank has announced a surprise cut in interest rates in an attempt to stimulate the country's faltering economy. the bank of japan will meet -- reduced its benchmark to almost zero, saying they will maintain that until prices stabilize. of course, that news in japan is the big story of the day, the nikkei jumping 1.5%. the yen fell against 13 of the most traded currencies. european markets are of on the good economic data. that is it, i will see you soon. >> thank you. the latest alleged terror plot has focused on militants in pakistan.

with no effective government, almost two decades later in somalia the minister is trying to seize power. in response to european union is helping to train troops to counter the militants. we have a report from a training ground in you've done that. >> an irish soldier with an unusual mission, training recruits from somalia. close to 1000 soldiers are being put through their paces at this remote military the european union is funding the training in an effort to help stabilize war-torn somalia. young conscripts would often have had little experience of war. these ones have known nothing but conflict and some of them have the scars to prove it.

>> our first day, we ask them if they of injuries. some of them to have entry wounds and exit wounds on their person. so, yes, they have plenty of experience in war fighting situations. >> on the streets of the capital, a fight for power that is relentless. the militia wants to overthrow the government. linked to al qaeda, they are attracting the hottest -- jihadists from around the world. they fear it is only a matter of time before a terrorist attack is carried out in britain. >> somalia has become a safe haven for terrorists. you have recruitment going on in western europe, north america, australia. radicalization is happening within the community.

other countries have an interest in what happens in somalia. >> in an effort to prevent them from falling totally into the hands of the islamist mullah shut, 14 european union countries agreed to send instructors -- instructors to train the forces. >> for the first time, they are getting professional military training. and >> in a few weeks the training will be over and these young soldiers will be on the front line in somalia. 20-year-old mohammed tells me that he is ready to return home to help to protect his country and his people. european union leaders believe that a better trained somali army will be better able to confront the militia. >> that is almost it for this

edition of "gmt." top story, a french trader has been jailed for three years. let's have a look at what is coming up later with matt frye. the bill have the latest on the verdict of the man who attempted to ignite a car bomb in times square. for us, this is all for the moment. stay width "bbc world news." >> hello and welcome. >> see the news unfold, get the top stories from around the globe and click to play video reports. go to bbc.com/news to experience the in-depth, expert reporting of "bbc world news" online. >> funding was 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 financial strength to work for a wide range of companies. what can we do for you? >> there is one stage that is the met and carnegie hall. >> o, that this too, too solid flesh -- >> it is the kennedy center. >> check, one, two. >> and a club in austin.

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