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>> union bank has put itsl sto financial strength to work for a wide range of companies, from small businesses to major corporations. what can we do for you? >> and now, "bbc world news america." >> a done deal. eurozone leaders agree on a plan to fix the region's debt crisis. the markets have a sigh of relief for now and the market's rally. >> the world wanted to see that we could stand the test of this deep crisis. we have shown tonight that we have made the right decision. >> welcome to gmt. i am naga munchetty. israel agrees to another prisoner exchange. this time, it is a whopping 25

egyptians for an american- israeli student. house low can you go? we visit a lab. >> hello. it is midday in london, 7:00 a.m. in washington, and 1:00 p.m. in brussels, where there is a sense of relief. european leaders have reached an agreement to tackle the eurozone's debt crisis. first of all, private banks holding greek debt are to accept a loss of 50%. the eurozone's main bailout funds will be increased to one trillion euros. banks will be forced to provide more capital to shield them. on today's program, we will bring you the latest reaction from across the eurozone. let's begin with berlin. that's where our correspondent is. steve?

>> the markets are up already. a sense of relief is the right way to put it. looking at the main european markets, a short time ago, the ftse up 2.3%. the dax is up. the main french index is up 4%. you can almost feel the relief that there was an agreement, even though the details are yet to emerge. i have been engaging some of the reaction around europe -- i have been gauging some of the reaction around europe. late in the night, agreement on how to ease the burden on greece and boost the rescue fund. >> the world wanted to see that we could stand the test of this deep economic crisis. i think, tonight, we have shown we have made the right

decisions. >> i believe the result will be greeted with satisfaction by the world. >> today, i think we can close a chapter. i think we can now start to work on a new future for our country. >> in all the capitals involved, there's a filling the agreement has prevented a serious collapse of the economies. >> when a child is sick, the whole family suffers. that's why we have to react. this is not a crisis of the euro. this is a debt crisis and we have solved it. >> at the german parliament, there's a view that it was a triumph for german chancellor angela merkel. she got what she wanted in her negotiations with france, for example. it has been perceived as strengthening her in german politics and in european politics. the rescue fund for the euro, the european financial stability facility, will be beefed up by a complicated

financial devices. it will act more like an insurance fund. the details remain to be decided. >> we have identified two approaches for the efsf. the first one aims at giving credit enhancements to bonds issued by a member states. the sec approach, the funds could set up one or several facilities to finance its operations. each option could lead to leverage of up to four or five times. >> the banks have agreed to write off half of what they went to greece -- they lent to greece. commerzbank will lose 750 million euros, half the profit it made last year. if recession returns in europe and north america, then the finances of all countries will

get worse. if economies pick up, then the measures agreed by leaders have a fighting chance of success. bbc news, berlin. >> he is still in berlin. we also have christian in paris. we heard of that international leaders had to thrash it out. this has affected them domestically, as well. has sarkozy come off in the face of his system in france? >> nicolas sarkozy has been unpopular for some time. he has very poor poll ratings. obviously, with an election six months away, he needed to come out of this with something. he has a very important two weeks. he is the chair of the g-20 next week, where he will play the role of the international statesman. imagine if he would have gone to the summit without something in

his hands. i guess it is positive. when you are so far behind in the polls, you need something. you will never make up the ground. he needs some big wins. today, the way this is being spun, it is a big win. we will see if it unravels or if it is a giant step toward solving the crisis. if it is, and given his image of the prudent president in the french media, this could be a step in the right direction for him. the jury is still out. >> when it comes to angela merkel, she has been battling on the domestic front, as well as asserting her influence on an international level. >> her speech to the german parliament was very interesting, really. it was strongly -- this will not cost german taxpayers any more money. at the same time, this is a big

problem that transcends politics. it's a problem of historical proportions. everybody looks to us to solve it. she seems to have squared that circle politically, convincing them that germany is solving the problem, but it will not cost germany any more money. we will wait to see if this plays out the way it was portrayed in parliament. it was a pretty skillful political act. >> of course, as steve alluded to, this is a waiting game. we do not know what happens next. is there a feeling of optimism for the people -- from the people you have spoken to and the media there? >> they got the numbers overnight on the market and they responded pretty positively. the cac 40 in france is up over 4%. credit agricole is up over 9%. bnp paribas is up over 9%.

you are right that there are some very big events still to be held. a big event behind closed doors -- presidents are cozy will start talks with the chinese president -- president sarkozy will start talks with the chinese president. they will make sure they can get the money they need to quadruple the bailout fund to insure against further losses. there are big events still to be held. for him personally tonight, domestically, he has to put some flesh on the bones. last night he said, "please don't ask me any complicated questions." tonight he will appear in french prime-time television for his first interview since february. he will be grilled on what this means, not just for europe, but also for the french taxpayer. >> the message is clear.

the deal is done. we're not out of the woods yet. thank you to you both. now to some of the other stories making headlines around the world. the death toll from a major earthquake that hit eastern turkey has climbed to 533. rescuers continued to search through the rubble, but hope is fading. many survivors have complained about the slow distribution of aid. thousands of people are evacuate in bangkok as flooding continues to wreak havoc across thailand. the government admitted large parts of the city could soon be under water. the authority has declared an emergency five-day holiday in flood-affected regions to deal with the crisis. south africa has elected its first black leader of the official opposition in parliament. she was chosen over an older white counterpart. many believe is is a marker in the country's development.

egypt and israel are preparing to carry out a prisoner swap. egypt will send lan grapel in exchange for 25 prisoners. for more on this, we can speak to our correspondent in cairo. jon leyne is there. this is a significant deal. >> that is right. gilad shalit was freed after a number of years in gaza. this is on a much smaller scale. i lan grapel -- ilan grapel has been held since july on suspicion of various charges. he is being swapped for 25 egyptians. those are not security prisoners. it is very different from the

gilad shalit case. these are people like suspected smugglers and some children who are suspected of doing cigarette smuggling across the very poorest border between egypt and israel. the handover will have been at the border crossing at the red sea there. we understand that the egyptian prisoners are already on their way to the border crossing. there's no word yet about ilan grapel. presumably, he is on his way, too. >> briefly, what does this signify about the relationship between egypt and israel? >> a slight warming, but no more than that. it's not usually politically significant. the military leaders of egypt are wary of the relationship with israel. they're not going to break it off. they're dealing with it on a very pragmatic basis. >> jon leyne in cairo, thank you.

still to come on gmt -- it's not just what you eat, but also how you eat. we set out to test the theory in the lab. >> this is part of an experiment on whether eating faster makes you gain weight more easily. >> severe flooding has hit several parts of italy, killing at least five people. eight more are missing the buildings and roads have been damaged. a huge cleanup operation is underway. the most badly affected areas are the regions of tuscany and material. >> the force of the flood is plain. there's a trail of wreckage. holmes smashed. cars destroyed. towns filled with mud. the extent to the damage of

roads and bridges is plain. the task facing the emergency services is immense. not even basic services are functioning. >> [speaking foreign language] >> the biggest trouble is that we have no water and there's nothing we can do. all the houses are flooded with mud. >> almost 90 millimeters of rain, over 3 inches, fell in just a few hours on tuesday, affecting much of italy from the alps to sicily. along the coast, steep valleys funneled the water to torr ents, which pummeled through some of the most beautiful places in the country. many areas remained cut off by landslides hampering rescue efforts. the italian military has been drafted in to help. the task facing the cleanup teams is enormous and grim. >> the former goldman sachs

director, gupta, pleaded not guilty and has been free on $10 million bail pending trial. he is accused of aiding a billionaire fund manager who was found guilty of insider trading. he faces a long prison sentence and $25 million fine, if found guilty. >> you are watching gmt from "bbc world news." i am naga munchetty. european stock markets have risen after leaders worked late into the night to agree on a plan to cut the greek debt mountain and deal with the wider financial crisis. the residents of the thai capital, bangkok, have been warned that person the city could be under water for a month -- warned that parts of the city could be under water for a month.

foreign forces have hit a u.s.- run base in afghanistan's kanda har province. we have had this news coming through. the offices have been attacked in the afghan south. this is a provincial reconstruction team, a prt office, in kandahar province. they are now engaged in a clash with security forces. security forces in the area say the area has been cordoned off so far by security forces. as we get more on this attack on this u.s.-run base, we will bring it to you. >> let's get more on what point on in the world of business. of course, it's all about the eurozone. the deal is done and now it's time to digest. >> yes, but the devil is in

the details. share prices have risen sharply across europe. halfway through the day, we have the ftse up 2.5%. the dax and cac 40 are up over 4%. the devil will be in the details. there's a comprehensive road map, a comprehensive timeline, and how to work out all the different elements that go into this deal, from the recapitalization of the banks to everything else, as well. for the moment, investors are saying -- at least the eurozone leaders have come together. they have reacted very well. of course, they will be looking for where the growth will be coming from in europe, as well. that is something we will see when the markets open in new york, as well. we have american gdp, which is also coming up.

that's one of the main issues the united states is struggling with pay we will have those figures in a few hours. after a volatile few months that included the downgrading of america's aaa credit rating, we are looking to see what that gdp will be. it's expected to be, perhaps, 2 %. let's hear from michelle, who is reporting from new jersey. >> even the beach does not provide an escape from the chill winds blowing through the economy. this is all that remains of plans to build a luxury apartment building in new jersey. the project stalled during the recession -- a blow to the city. >> a major spike in the economy. more importantly, the fact that that piece of the property has been developed, if the economy remained the same, that would have spurred additional development in this area right now. >> professor james hughes

agrees. he says housing is holding back growth. >> housing and construction are usually locomotives. this time around, they have been a caboose on a recovery train trip we have never had a strong recovery without a housing recovery -- train. we have never had a strong recovery without a housing recovery. >> the economy itself is struggling to grow. >> in here, we have lightly salted. this is a project we did. >> that is taking its toll on businesses like this one on the boardwalk. >> the worst thing for me in all of this is putting people out of work. we employ about 100 people. in the summer, over 200 people. the layoffs have been more drastic this year. i have learned to be more diligent with the payroll. in our industry, that's the biggest problem. >> parts of the economy are starting to improve.

with an unfinished projects like this one across the country, dreams of a robust economy may turn out to be built on sand. "bbc world news." >> we are expecting those gdp figures in about one hour. we will see how much the united states has grown. >> it would be good to get a good news twice in one day. >> we hope. >> thank you very much. >> by the arab spring activists have won the sakharov prize -- five arab spring activists have won the sakharov prize. the arab spring has been dominating the news for much of the year. the secretary general is with me.

thank you for being with me. i understand you have been meeting british officials in the u.k. what have you been hearing from them? what you hope to hear? >> the aim of this visit is to establish a concrete framework of cooperation and make it more comprehensive. i had an official visit here last june. i met with prime minister cameron. this afternoon, in a meeting with secretary mitchell, we will work on how we can compromise. anti-discrimination activities. freedom of religion and tolerance.

and then about islamic communities and minorities in this country. with the rest of europe, we're planning to have a joint meeting with the government here. >> the organization represents all islamic states and interest. we've had some breaking news, literally. there has been some more firing in a number -- a number of attackers have attacked a u.s. office in kandahar. have you discussed how to improve the situation there? >> it has been a standing issue on our agenda for many years. we are actively engaged in afghanistan. we have an office there. we have an ambassador. in afghanistan, what we need now is to have more domestic engagement with different political powers.

i think we're better situated to do this. we are doing our best. >> you are optimistic. i want to talk about the arab spring. it happened so quickly in the past year. are you surprised? are you encouraged? >> i am encouraged. i am encouraging. i do not think it is a spring. it will be four seasons for the democratic transformation. what started in tunisia and went on the last few months is a good example for the rest. what you have here is the transformation in a very civilian way. elections were done in time. agreements from different groups of society has come in a very harmonious way. in other countries, it will take longer and it will be four

seasons. >> professor, i wish we had more time to talk. unfortunately, that's all for now. thank you. could eating more slowly make use thinner? it's a theory that a team of scientists in britain is trying to prove in a new unit called the flab lab. our health correspondent has been given exclusive access to it. >> this is no ordinary day for helga. she is being sealed in a chamber and closely monitored for eight hours. there will be exact measurements of how much energy she burns. it's part of an experiment on whether eating faster makes you put on weight. a scientist expects it does. >> if you find that both of those printers can be affected,

i think this will be a very important public health matter. >> helga has had nothing to eat today. at exactly midday, she has lunch passed into her, a sandwich and yogurt. she has to eat the portions slowly, one every five minutes. it is all happening at the flab lab, the most advanced of its kind in europe. >> before an experiment gets under way, patients are tested in this extraordinary instrument, a bod pod. scientists will test the relationship between weight and things like sleep levels, exercise, and drugs. >> we're beginning to make progress in some areas.

however, the condition of obesity, which is very common -- we have not managed to crack down on treatment. that's what we are hoping to do. >> after eight hours, she is allowed out. >> fresh air. >> what did she think of the experiment? >> you never think about how you eat. it's just something you do. when you have to time yourself or pace yourself, then i think it affects the way you taste your food. >> finally, she assesses how hungry she is by eating what she likes from a selection of foods. the results of this trial will take some time. they are hoping to find some answers to the many questions about the obesity epidemic. bbc news. >> making me hungry. let's remind you of our top story on gmt. stock markets are rising after european leaders worked late

into the night to agree on a plan to deal with the crisis. that is all for the moment. i will see you very soon. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. union bank. and shell. >> this is kim - about to feel one of his favorite sensations. at shell, we're developing more efficient fuels in countries like malaysia that can help us get the most from our energy resources. let's use energy more efficiently. let's go.

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