>> this is "bbc world news." funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> at union bank, our relationship managers work hard to know your business, offering specialized solutions and capital to help

you meet your growth objectives. we offer expertise and tailored solutions for small businesses major corporations. what can we do for you? >> and now, "bbc world news." >> can u.s. politicians reached a deal to stop tax rises in spending cuts from damaging the american and the global economy? hillary clinton is being treated at this hospital in new york. she has a blood clot. there's concern over the health of the venezuelan president who has suffered complications after cancer surgery in cuba. walk into bbc world news. coming up, and look back at the british troops as they prepared

handover to afghan forces. new zealand becomes the first major city to welcome 2013. time is running out for politicians in the united states to strike a deal to prevent the economy from going over the so- called fiscal cliff. that is when a package of automatic spending cuts and tax rises comes into fact which could set the country back into recession. that less than 20 hours into the generate the first deadline. >> as night descended on washington, no deal precentors went home with a low over 24 hours to go before the huge austerity package known as the

fiscal cliff, something almost nobody wants is due to descend on the american economy. >> we will come in at 11:00 tomorrow morning and that further announcements. >> if there's no doubt, the price of failure could be high. the average american, might see their taxes rise by as much as $2,000 a year. as spending cuts take money from the economy, a second american recession becomes a possibility. confidence in america will be shaken. the financial markets may take fright. president obama believes it is time for the wealthiest americans to pay more in taxes. he has made that part of his negotiating position. he criticized republicans for resisting these tax increases. >> they said the biggest party is making sure we deal with the deficit and a serious way. the way they're beating is their only priority is making sure that tax breaks for the wealthiest americans are

protected. that seems to be their only overriding unifying theme. >> the republican party argues it is ready to deal. it is the president and democrats were not. >> there's no single issue that remains an impossible sticking point. the sticking point appears to be a willingness and interest, frankly, their courage to close the deal. i want everyone to know i am willing to get this done. but i need a dance partner. >> if republicans and democrats don't join the dance soon, america will enter the new year and a state of heightened political and economic uncertainty. congress can choose to put a stop to this as soon as it likes. the news americans are wondering when it will do so. >> how is the market responding? is it turmoil around the world? >> the answer is, not well.

we have declineds in germany, london. these declines are not massive. the reason for that, this has been well flagged for a long time. the market has slowly been discounting it for the best part of a couple of months. however, there is still optimism a deal will be done or a little late, a cliffhanger. >> people are saying it is just brinkmanship that in a few weeks that will have a deal. >> if there is not, then things start getting messy. i was speaking to analysts in the city and they are very worried about that possibility. they are still hopeful is not going to happen. >> good news for the world second-largest economy. >> excellent news out of china. pmi is an index or the ask people how confident you are feeling, indicating the fourth

quarter of the year, china has seen a very marked pickup in economic growth. that is extremely good news because china had been having a pretty sluggish time of things over the course of the first half of 2012. this is leading the optimism that 2013 could break away from the economic doldrums. nonetheless [indiscernible] >> there you go. thank you very much. u.s. secretary of state hillary clinton is receiving treatment at a hospital in new york for a blood clot. she suffered a concussion earlier this month after fainting and falling down. the blood clot was discovered during a follow-up medical examination rea. >> hillary clinton earlier this month. it is believed it was while on her trip to europe that the u.s. secretary of state contracted a stomach virus that left her severely dehydrated. on her return home, she

collapsed and severed a concussion. during a follow-up examination, doctors have discovered a blood clot. mrs. clinton is being kept under observation in this bill york hospital, receiving medication, and will remain here for the next 48 hours at least. she has been offered for the past three weeks. her illness prevented her from testifying before congress about the attack on u.s. diplomatic mission in benghazi. that killed the ambassador christopher stevens and three other americans. the department faced severe criticism. mrs. clinton who is the most traveled secretary of state in u.s. history is due to step down in the new year. many democrats want her to run for the presidency in 2016. her health is likely to be a major factory in making any decision. >> concerned about the health of the venezuelan president hugo chávez, suffering of further complications after cancer surgery in cuba.

a television address, the vice president said mr. chávez's helped remains delicate. >> venezuelas fis president flew into cuba early on saturday, but it was sunday night before he could visit hugo chávez. the president had taken a turn for the worst and doctors were watching how he responded to treatment. finally, this somber statement. >> 19 days after undergoing surgery, president chávez's state of health right turns to the delicate with complications being attended to in a process not without risks. thanks to his great physical and spiritual strength, he is facing up to this difficult situation. >> the exact nature of the new complications has not been revealed. the vice president said there were linked to the infection that he contracted after it the six-hour long operation treating him for cancer.

it is three weeks since venezuela's socialist leader has admitted his cancer returned. he appeared in havana for urgent surgery and has not been seen or heard from directly ever since. the vice president stressed his immense will to live, but details of the conditions are scarce. silence is creating great uncertainty of been as well as political future. chávez announced he wanted maduro to succeed him, he knew or suspected far more about his health that he made public. he is due to be real inaugurated as president on january 10. his opponents insist mr. chávez cannot make it, there must be fresh elections. his allies are focused on his recovery. in another hint this could be a critical moment, the new street party in caracas has been

cancelled. the government has called on the country to unite in prayer instead for hugo chávez. >> international peace negotiations in syria urging the international community to push the government and rebels into talks. without talks, they want the country could become a failed state ruled by warlords for the -- warlords. tortured and disfigured bodies have been discovered north of damascus. at least 10 people killed and 40 others wounded, seven people were killed from the same family. bombs also incur code. a short time ago as spoke to bbc but said the attacks come at a difficult time politically for iraq. >> clearly, the most at that stands out the most is the one you mentioned south of baghdad where apparently, and normal,

ordinary home was blown up and seven people were killed inside. but the other attacks have been more or less standard, attacks on security forces and shiites -- shia religious processions. security forces were trying to dismantle a rocket that was to be launched in the direction of an air base. a bomb went off right next to them and one was or two were killed, and four were wounded. a few other attacks took place in the east and the south. >> this comes at quite a difficult political time as well. >> very difficult political time. the government is facing ongoing protests in the western province of anbar, which borders syria and jordan. and a number of other provinces are joining the protests as

their been calls for civil disobedience and international highway that links iraq dollar- jordan to syria has been cut off. there has been in intensity with demands from the government's having to do mostly with setting some prisoners free, including women prisoners, whom the protesters say have been arrested purely because their husbands or their sons could not be found. and also there is an ongoing dispute between baghdad and kurdish region in the north over oil resources, contracts, and disputed territory. >> stay with us on bbc world news. still to come, made in pakistan. we explore what of the country's more unusual exports. other stories you have been looking at online, at our review of some of the biggest mobile moments of the past 12 months.

a year which saw youtube video break the 1 billion mark for the first time. social media continues to capture the attention of millions as must watch videos. also, many of you have been finding out whether belgium can claim to be the world's tartlet capital after inventing prailine in 1912, became known for making the best chocolate in the world. one of the local chocolatiers is under threat, especially by austria. from paraguay, and orchestra of young musicians from islam have been touring south america using instruments constructed entirely from recycled materials. they pulled them from the rubbish dumps around their homes. you can get more on our web sites bbc.com on those stories and many more. the spanish tenor coming go has performed in front of 20,000 people to raise money and

awareness for youth orchestra in the violence-plagued city of acapulco. ♪ he was joined by 320 young performers were in july the orchestra was for a risk children between 8-18 years of age. most of the youngsters have little or no music express before joining. a quick update from the central african republic or rebels seized much of the country have renewed their threat to enter the capital. the president says he's ready to form a national anti-government after the coalition launched a rebellion earlier this month. >> the headlines here on bbc

world news. politicians in washington are facing another day of intense negotiations. they have got to reach a deal to prevent damaging tax rises and spending cuts. hillary clinton is in the hospital, being treated for a blood clot. new year's festivities are beginning around the world. the first major city to walk, 2013 was auckland, new zealand rid as midnight struck, a huge fireworks display took place on top of the sky to our, the tallest building in new zealand rid thousands of people were gathered around to watch. there are planning a fireworks display in the capital city until unfortunately there were high winds. it was postponed. many people are celebrating across new zealand. it is summertime there. next up, a very famous celebration to take place in sydney, australia.

kickoff in less than an hour's time rid -- in less than an hour's time. these pictures for the moment are of auckland, new zealand, welcoming in the new year. happy new year to new zealand. a great couple of hours coming up with all of those are words displays. our top story, negotiations between u.s. politicians on a deal to avert the so-called fiscal cliff going down to the wire. what are the chances of a deal before the deadline? we have a senior economist at west bank in london and he said he did not have high hopes. >> it is looking unlikely, on inheritance tax, and when the income tax hikes should cut income at what income level. it really remains intractable on both sides. what will happen is the

negotiations will continue in the new year after some of these measures have been imposed, but the market reaction to the failure of politicians to agree i think will force them to sharpen their negotiating pencils and actually come to some sort of agreement. it will not fully offset the fiscal cliff, but will mean the drag from the government sector on the economy into thousand 13 will not be -- in 2013 will not be as recessionary threatening. >> is down so dramatic, falling off the fiscal cliff. is it as bad as that? what it is in a four-year since. 3% to 4% of gdp will be pulled out of the economy a reduction in government spending, increased taxes. the u.s. economy has been struggling to grow about 2% or higher over the past or since the recession. you should take 2.5% and you get - 1, and that is recession.

the issue is, there does need to be fiscal retraction in the west wing of the state and federal government debt, -- in 25 year'' time, we estimate a change. it will be something like 200 or three under% of gdp, which will be totally unsustainable for any government. the problem is, what the politicians not able to agree on this issue, it is going to be very difficult to agree on the serious long-term issue. >> what does it mean for the global economy? >> u.s. economy is important to the global economy. we don't think there'll be a u.s. recession next year, some within the global economy will accelerate to a bit over 3% growth, mainly because of countries like brazil, russia, india, china doing a little better, accelerating. at the same time as europe is in recession.

but if the worst for the happen in the u.s. and were to resolve this issue, did you be looking at a much weaker global growth, somewhere around 2% perhaps. that would be something that people would feel around the globe. a >> the united nations is officially ending its peacekeeping mission in east timor. they've played a key role in helping the bloody fight for independence from indonesia. >> the united nations has been with east timor at every step of the ways in organizing the vote for independence from indonesia and 1999. the and ran the fledgling nation for three years and send in peacekeepers to quell fighting between rival factions of the armed forces in 2006 when its current mission began. the dozens of people were killed and tens of thousands forced to flee their homes. as violence threatened to engulf east timor as it did during the push for independence. two years later, a failed

attempt to assassinate the president exposed a fragile country to even more instability. the mission official it comes to an end, the united nations has east timor has the resolve to meet the security and economic challenges that lie ahead. >> the credit goes to the timorese leadership. it is the timorese leaders who have learned from experience and have taken control of their country firmly. they have put the policies in place, have built institutions. a >> the challenges are immense. there are high rates of poverty and unemployment throughout east timor while ethnic and regional tensions faster. but the government in the capital is hopeful for the country about one. to laypeople can look forward to a brighter future -- 1.2 million people can afford to write a feature. >> together with many friends

around the world, also with the u.n. agencies, we can overcome these challenges. >> recent elections in east timor have been largely peaceful. there are concerns not enough is being done to create a self sustaining economy. especially as revenue from oil exploration is only expected to last for another decade and a half. >> combat troops will pull out of afghanistan in 2014, leaving afghan soldiers to fill the gap. british troops have been treading afghan counterpart, but fears remain that afghanistan would be a look after itself without foreign help. >> if there is progress, it has come with a prize. this year, one quarter of the 44 british soldiers who died in helmand have been killed in so-

called insider attacks. shot by rogue afghans they're helping to train. it is how capt. barre died, play football here on remembrance sunday. he was last british fatality of 2012. >> of course it affects you personally. we will always grieve for walter broadwell we will not do is drop what we're doing because of one individual. >> despite such setbacks, the afghans are taking responsibility for those security. leading must military operations and allowing foreign troops to step back. the questions remain as to whether they are equipped to continue the fight on their own. afghan engineers carrying out repairs -- learning to carry out repairs, but there are many vehicles waiting for spare parts. there's still a fear that it could be lost. >> when we leave, hopefully, do not keep to it.

maybe not as much now. maybe there will slack it. hopefully, we don't have to come back and do the same job again. >> that job is not over yet, but british forces are handing over bases to the afghan police and army, lowering their profile and maybe the dangers. 430 british troops have lost their lives so far. but there is an end in sight. leaving his afghan commander to answer whether it has been worth the sacrifice. >> british soldiers have not died in vain. in helmand, 65,000 boys and girls are going to school. before it was violent with no security or democracy. we cannot deny with the british have achieved. >> but the ruins of his old ford is a sober reminder of the past failures of foreign intervention. the british were driven out of

here in 1882. the military presence of britain and helmand, with just over 4000 troops to leave next year, and all combat troops out by the end of 2014. this time they hope to leave behind a more lasting legacy. >> bagpipes are traditional part of new year celebration in scotland, of course, but what about in pakistan? there are a common sight, the biggest back tight -- and they're the biggest bagpipe producer outside of scotland. >> a bagpipe band setting the tone for a wedding in pakistan. this is not an unusual sight. there are a few hundred back pipe and drum bands across the country which play a formal ceremonies.

but ollie back cuts in pakistan, it claims to be the biggest bagpipe producing country outside of scotland in the world. the city known for producing sports goods is home to a number of factors which manufacture the instruments. at one such country, it takes between just one and three days to produce a bagpipe, depending on its quality. each year, thousands of bagpipes are exported from here to scotland and europe. and the root of the business lies in colonial india. >> the british people roll over 200 years in india, so they were playing the bagpipes always. they wanted to repair their bagpipes. one of our forefathers debated. and three or four days, they copy the whole bagpipe and placed before that and said, "look, which bagpipe is yours?"

he could not distinguish critics the materials are sourced locally -- >> the materials are sourced locally. it surprises many. >> people do not really have any idea and pakistan we make bagpipes. people really don't think it is a pakistani thing. they always ask a question like, how did to come up with the idea to make a bagpipe and a place where people really don't know what it is about? >> they may be an instrument more associated with the fog the mores of scotland, but the fact the level says "made in pakistan," is something both workers and musicians are proud of. >> very cute pictures from ukraine of a dog who's been trained to jump out of the pool and crawl on his belly. this is a dolphin who can crawl for up to 10 meters before

flopping back into the water brewed the dolphin learned the skill by mimicking human walk at the aquarium. he said it was comparable to making a human climb a tree like a monkey or swim like a fish. pretty impressive. for more, go online and get a new summary, watch the news unfold at bbc.com. >> make sense of international news. funding is made possible by, the freeman foundation of new york, stowe vermont, and honolulu. newman's own foundation. and union bank. >> at union bank, our

relationship managers work hard to understand the industry operates in, working to nurture new ventures and now provide capital for key strategic decisions. we offer expertise and tailored solutions in a wide range of industries. what can we do for you? >> "bbc world news" was