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from small businesses to major corporations. what can we do for you? >> and now "bbc world news." most out -- >> it looks like the man that carried out sweden's first suicide bombing lived in britain. he recorded a message attacking sweden's attitude towards islam. >> no more oppression against islam will be tolerated. >> welcome to "gmt." also in the program, a teenager armed with a sword takes several small children hostage in a french nursery school.

silvio burlesque donee, struggling to survive after a string of sexual scandals. midday in london, 1:00 p.m. in stockholm where sweden's first suicide bomber has left the country in shock. authorities have confirmed that the man the died earlier sent an e-mail audio message threatening holy war. he is thought to have lived in an english town. his house is being searched. >> this is the area of stockholm where the bomb blasts occurred. the first blast took place here. this is the man at the center of the investigation.

unconfirmed reports say that he was killed about one of the blasts. his internet profile reveals that he was born in iraq, moved to sweden in 1992, later studying in britain. the swedish news agency and security services received an e- mail threatening an attack. all because of a caricature drawn by the prophet muhammed by a swedish artist and because there were swedish troops in afghanistan. >> people have begun to fill promises. we are not in your imagination. we are for real. >> the e-mail also contained a message to his family.

i never traveled to make money, i traveled for jihad. security services wanted to know how long he spent in the uk. four years ago his behavior at a local mosque became a matter of concern. >> in 2006 he started to attend a mosque and spread extremist ideas. one of the members of the community challenged him and told him that he was not allowed inside. >> in sweden they are pretty sure they have identified the bomber. >> up to 98%. there has not been a form of identification by dna or by his parents or anyone else familiar

with him. >> only the suspected bomber died in the blast, but the attack has shaken the country that has experienced nothing like this before. >> with me in the studio is lucy james from the counterinsurgency think-tank foundation. does this tell us anything about changing tactics? >> i do not think that this is anything that security services are surprised about. they are very much lone wolves, if you like. i think that it is in keeping with what we have seen recently. >> it is easier to spot a group of people working on an attack than it is for an individual with a homemade bomb? >> very much so. i imagine that is the reason that al qaeda is using these individuals. it makes it much harder.

in his e-mail he said that he was in the middle east on a fold the other -- full jihad. it is far too early to say. >> the issue of where he had been living, even though he was a swedish national he had been living in the united kingdom not far from london, an area that is becoming well known for its radical output. >> the integration issues in lukman have been very worrisome. there is an area called barry park that is predominantly muslim. there is a real concern about integration and extremism.

>> thank you for joining us. let's take a look at the other stories making headlines around the world. police entered a nursery school in france where the 17-year-old armed with a sword took 20 children and the teacher hostage. our correspondent is in paris. what are they saying there? >> things have come to a satisfactory end with all children accounted for. clearly they will be severely traumatized by what they have been through. this man entered the school this morning with two swords. unstable, suffering from depression and not taking his medication. he continued to rest for a gun to kill himself with. it was a difficult and dangerous situation.

a tense standoff, for the last hour he was holding four children still. eventually they were able to talk him down. >> where they able to find out why he chose that nursery school? >> we know that the school sits in the middle of a housing project in a depressed part of the city. it is possible he had some connection with the school. special forces were scrambled to the scene. very quickly they had 14 children out pretty quickly in the classroom of 20. finally they got it down to four children. once they got in they went in armed. after they started a conversation they managed to talk him down and clearly they

did a good job. >> bomb blasts have hit a school bus in northwest pakistan. several more were injured in the attack that took place on the busy a outskirts of the city. local police say that the bomb may have missed its target. richard holbrooke remained in critical condition following emergency heart surgery. the diplomat collapsed during a routine meeting with hillary clinton on friday. best known for brokering the peace accords that ended the war in bosnia in the 1990's. exit polls from kosovo show the democratic party is at six points ahead of its rival but they will need more to form a government. italy's controversial prime minister is trying to say that silvio berlusconi faces a no- confidence vote in parliament.

he has done little to help the ailing economy after a series of deaths involving young women. -- gaffes involving young women. >> powerful, polarizing, and now political trouble. silvio berlusconi has the italian senate fighting for its survival. this was an uncharacteristically mellow prime minister. noting that he was there to make friends, not provoke enemies. he needs every vote. he said that in this time of economic uncertainty it would be folly to drop and now. >> we need continuity. a functioning government. and we need to be able to decide things. >> it has been a mixture of girls, gaffes, and general

policy failure. this is ruby. a belly dancer from morocco who partied with the prime minister. later he had her freed from police custody. provoking claims of abuse of power. silvio berlusconi responded in the profession. "i say that it is better to let the girls than to be gay." a good example of what people have turned against them. one of his former allies is leading the revolt. he says that the prime minister has embarrassed italy and has failed to introduce reform. italians themselves are divided. this man says -- i hope that the right-wing coalition loses and goes home. this man says -- either way, the italian people blues because the

-- loose because the politicians only think about themselves. silvio berlusconi is going to address the lower house next. if he loses both votes of confidence, it will lead to election. right now it is too close to call. >> the british sex industry its backing from an unlikely source. a local vicar. a taped interview with the mother -- ♪

>> for your technology news and reviews, we will give you a window into the web. >> these brief images are uncomfortable. it is clear that this man is at home in their lives. he was at the at risk register, monitored by doctors, social workers. this interview, down four months before [unintelligible] died gives a unique insight into how she tried to get social workers out of their lives. it was not part of the plan for protecting peter. in the video she mentions a friend called steven. she denies that he is a boyfriend. >> [unintelligible]

>> stephen barker was later convicted of causing or allowing the death, along with traci, late and another man. -- traci connolly and another man. this was another occasion during the time in which peter had unexplained injuries. none of this led to proper checks. the chair of the official inquiry says that problems throughout the case were that professionals were overoptimistic. >> they want to believe that they can make a difference. what they must not do is to discard evidence that says that things are not what you think. >> this interview gives the sense of that. it also shows why professionals doing the difficult job of protecting vulnerable children

need to less challenging questions. >> the company running the new zealand mine where 29 men died said they were in a precarious financial position, prompting shareholders to call in and receivers. get in touch with "gmt." the best way to do that is to go to our web site, bbc.com/gmt. we are on twitter and would love to hear your views on the program. this is "gmt" on "bbc world news." an audio recording has been released by the suspect of the bombing in stockholm on saturday. the 17-year-old that took 20

children and a teacher hostage has been apprehended in france. nothing murky about the business news. but there are murky problems in beijing and china with inflation numbers. >> chinese leaders have pledged to keep inflation under control and keep its robust economic growth on track. following news that inflation has risen to 5.1%, the highest levels in two years. in the past inflation has caused unrest in china where poor families spend half of their income on food. the notion of raising interest rates and asking banks to keep more money on research. an economist from beijing explains why this is so

important. >> they are crucial in stabilizing deposits. if the money does not go into deposits, it will go into other places. this rate hike is the most necessary tool to use. >> threatening to throw the european union's financial planning into a resolution on monday, agreeing just how much the budget should rise in 2011. but the two major ruling parties have been continuing to wrangle over political concessions. >> smiles for the cameras over the deadlock, first between the european union and the states and now between the parliaments.

insisting on a rise in the budget for 2011, meetings and debates starting today still must finish the standoff of political issues like switching cash into new projects. there is a final vote scheduled for wednesday. ministers are now working together in closely on big issues. the budget has proved to be the biggest test of this decision process. parliament, for its part, wants more flexibility and a bigger say in the budget next time. but there is no hurry of the parliament into an agreement. >> today most of the groups are looking at remaining details. there are a couple of other important issues on the table. most important is the issue of flexibility. it sounds very technical, but we

have a very rigid budget ceiling. >> the denial of funding and one of the world's biggest scientific collaborations, the nuclear reactor in southeast france to generate nuclear power with far less radioactive waste. the reality is that without a budget this and other projects will have to wait. >> just a couple of other stories making headlines around the world. the u.s. senate is going to vote on a bill to extend tax cuts. president obama has already announced a provisional agreement to extend bush era tax cuts that were going to expire at the end of the year. mr. obama strongly oppose them, but was forced to compromise.

caremark says that they need $3.20 trillion over the next 20 years, equating to 26,000 planes. airbus is feeling the demand for more eco friendly planes and that the expansion of low-cost airlines in asia. quick look at the markets. modest gains in asia boosted by commodity prices. copper and lumber jumped to record highs. the dollar strengthened for a six the day. china refrained from raising interest rates. we saw these figures on friday. upbeat consumer confidence numbers as well as those shared in china are on the back of beijing not sharing its rates. all eyes on beijing, many saying they need to raise those rates.

>> the latest leak of diplomatic cables from wikileaks travels around the murder of a catholic lawyer by protestant gunmen in northern ireland in 1989. the u.s. memos say that security services offered to hand over secret files about the killings. this is all very murky, mark. >> potentially it is significant because it looks as if back in 2005 previously secret intelligence files of the british government, they were preparing to release them to a public inquiry. what we do not know is if this water under the bridge and the change of government, if there is going to be a future inquiry and we do not know if those secret files will still be available. many things still up in the air

on that one. >> why would security forces have colluded with murderers? >> it depends how far back you want to go. certainly there were informers within the republican movement. with in the ira. there were also informers within the pro-british organization as well. the delegation has always been that in order to protect their source within the loyalist community, the government took a soft approach to the killers and the real killers got off scot- free to protect their intelligence service. that has always been the allegation. >> wikileaks is also saying something interesting about the leading republican? >> the story that refuses to go away for gerry adams.

this allegation that he was a senior member of the ira. wikileaks suggests that he was a senior member of the ira as recently as 2004. he again denied that he was ever a member. >> sex shops in central london are receiving backing from an unlikely source. christian parish priests. the reverend has accused the council of raleigh trying to impose a moral code. our religious affairs correspondent is defending the strip joints on his doorstep. >> four strip club in the parish. one of them is a neighbor across the road. sunday afternoon and the vicar is paying a visit. the council has suggested closing the club for the sake of

harmony. the reverend is fighting to keep it open. they have been offering striptease for 30 years, climbing closure with the back of the borough. >> all of the local people in the area, doormen, the taxi firm, the cafe. it would have an effect if i close. >> there is wide support from an anglican priest for an activity that many would consider a moral in the church. he said that if they are forced to close the they will simply go underground and under the control of criminals. >> not prostitutes necessarily, but certainly they will be selling sexual encounters.

>> i am trying to be part of a progressive society the church senses its dilemma. should they stick to their black-and-white moral code or should they compromise to help people live within the messy moral situations they find themselves in? rather than working with the world as it should be, working with the world as it is. plenty of people want to change the borough. it women's group has called the club exploitive. the council insists that its consultation is justified. >> in the past we have had advocation for strip clubs. they have said they do not want this in their borough. >> although the baker has been criticized for defending the

striptease, dancers insist that he was showing christian concern. as these old morals meet modern life, the church can expect more difficult choices in the future. >> that is just about it for this edition of "gmt." authorities in sweden are confirming that the man had died in the explosion in stockholm had recently sent an e-mail threatening holy war. he had sent a message to swedish troops, his house is now being searched by the authorities as they attempt to investigate. taking a look at what is coming up later with "bbc world news america," an interview with the rescued chilean miners. that is it for the moment. stay with us right here "bbc

world news on." plenty more to come. >> 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.

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