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kids head off to college and plan for the future. where you are today, fidelity can help you with your future. >> 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 and major corporations. what can we do for you? >> and now, "bbc world news america." hello, you were watchinggmt on bbc world news. allen gaya. 19 kids are killed when they're hot air balloons explode. more crunch -- more questions about the country's safety record. it happenedwe offer expertise 's

biggest tourist sites. the tourists came from britain and hong kong. recipe for political uncertainty there. and iran says it will unveil a comprehensive proposals for its nuclear program, but many are lower than -- lowering their expectations. and there is political uncertainty in italy. >> it was a worst-case scenario. stocks around the world are being slammed and the borrowing costs of italy, spain, and portugal, they are on the up. all this raises the big question once again of what the future is of the bureau's own. -- e the year rose down urozone.

london, midday here in 7:00 a.m. in washington, and 2:00 p.m. in the afternoon in egypt, where a balloon ride over luxor has ended in tragedy. a fire followed by an explosion and a 300 meter plunge to the ground. 19 tourists are dead, nine of them from hong kong. it is the latest blow to a tourist industry that has been suffering ever since the uprising two years ago. >> the balloon came down in fields west of luxor, a tourist event that ended in carnage. this mobile phones should it -- footage shows rescue teams the distance. one report says those who survived jump from the basket as it plummeted from the ground. eight photographer from another flight took these photos. he was just in front of the balloon that crash. >> while we were approaching the end of our balloon fried --

balloon flight heading into luxor, we heard a loud explosion. and then we saw a lot of smoke right behind us. our first giving was it could not be a balloon, but it turned out unfortunately to be this tragic accident. >> a balloon ride over some of egypt's most famous site are still a popular attraction. the stringent new state controls last year were put into place following a string of accidents. but other passengers have spoken of their concerns about the safety of these flights. >> there was a limited explanation as to what was going on at the time. we were fairly close to the trees below us. that made it quite interesting experience for those in the basket. experience for those in the basket. >> it is thought that the gas line has exploded while the balloon was 1,000 feet up.

it is a lasting tragedy for the families of the dead. >> in rome, the word ungovernable seemed to capture the state of the country's politics after elections, in which no party or election -- or coalition emerged with an outright majority. silvio berlusconi did almost as well as pier luigi tristani -- but no one has control over both houses and you need got to govern properly. >> let's talk to our correspondent in rome. we're only just digesting that results. people are already talking about the need for another election.

>> there are pretty much only three options. one is another election in the next couple of months, because italy will be ungovernable, as the newspaper headlines this morning are suggesting, and the second would involve some grand coalition. that has never happened before in italy. it is a very divisive political system here. and at third, which seems unlikely, would be the leader of the five-star movement changing course and agreeing to operate with one of the coalitions. he has made no signs hughes willing to do that. -- no signs he is willing to do that. >> you mention this anti- establishment figure. we kind of know what he does not want. we kind of know what people voted for him do not want, but we have no idea what they do want. problem.a real you have more than 100 people in the italian parliament who have never really taken part in the

politics before. it is clear that is what voters wanted, completely fresh faces. it was a sign of dissatisfaction with the current political system. we talked about environmental issues, spreading the internet further. he said he wants their referendum on the italian membership of the euro. to five-star mena it -- five-star members, they say you do not really have leaders, the citizens and lead. that is one of the concerns, that you have this wild card right at the heart of italian politics. and if there were to be a second election divide is quite possible that with the current public mood, the five-star amendment would do even better the next time. -- the five-star movement would do even better the next time. >> you spend a lot of your time in brussels, around europe and around the euro zone, they have got to watch this and have shivers down their spines.

>> bevitz the other part of the story. if you like -- that is the other part of the story. if you like a particular sort out, trying to this economy, and then deciding to run to my he barely did ok. it was a clear rejection. it very clear majority of italian voters voted for people what austerity. voters are notn isolated. .> no, they are not degrees as well cannot there is criticism -- in greece as well, there is criticism. people are really suffering in many parts of europe.

on employment is up with very little growth. italy, perhaps it is the starkest images at -- of all. he you have a movement that no one had even heard of four years ago and a one more votes than any other party. -- and it won more votes than any of the party. >> now to the markets and the business world. chris morris talking there about a wild card. markets do not like raw cards, do they? >> they do not. it is important to stress why. chris manchin to italian economy. we're talking are europe's third largest economy anda wild card. the world's largest bond market. italy has the second-highest debt burden as one of the members of the euro. it is second only to greece. the markets hate uncertainty,

and the italian election results could not been more of a worst- case scenario for investors around the world. and the stock markets have been falling across europe, in fact, around the world. main stock market commodity for the nimm -- the down considerably. borrowing costs are up. the impact is being felt as far away as asia. made -- many major exporters there saw their share prices -- and will fees see a demand for their stuff in your diminished. -- in europe diminish. >> in terms of the market, we have the worst case scenario after the italian election. this uncertainty will carry over

for a considerable amount of time. politicians speaking about which way the government is quite to go and we will see wild swings on the market. it is not helpful. will destabilize the bureau's own in the coming few weeks. >> take a look. was down overe 5%. it is deepening. and the borrowing costs for these economies is on the rise. the markets are also focused on ben bernanke. he's speaking later today. everyone is interested in seeing what he has to say. let's talk about this. the big 10 global food companies are not acting ethically, according to a report by oxfam. they have compiled a scorecard.

etc. --a, mars, nussle, leslie, etc.. nestle, etc. abf gotish food maker the lowest score card, but larg. it has hit back using accusations of a veil of secrecy. what is it about these big global brands that they're doing wrong? >> you talk about the abf have anyn, does not issues at all prepared the other parties that many of these companies have no idea what is going on backing their supply , they often have no

policies as to how we expect you to treat your workers. in the end, we do not know what happened in the process of getting their food to us. >> will be back to talk about more of the market reaction. >> stay with us. still to come, a report of the presidential election campaign in kenya. just cheated -- just days ago, the two main rivals remained neck-and-neck in the polls. france says it will not negotiate with the gunmen who posted images on line of a french family who was kidnapped in cameron. the gang say they belong to the nigerian militant group vocal harlem. herron. showing a french

family kidnapped last week in cameroon. they identify their captors by grewames of the militants -- groupboko haram. as children sit silently gunmen stand by. they had been returning from a visit to suez national park when they were kidnapped by men on motorbikes last tuesday. the french authorities believe they have been taken over the border into nigeria. this kidnapping has highlighted recent incidents with french citizens. the decision to send troops into mali has prompted retaliatory

attacks by groups there. and we must be found to negotiate with the kidnappers. >> in fahrer to revise the french government, it would be to talk, talk, and then more talk. -- if i were to advise the french government, it would be to talk, talk and then more talk. even if it is indirectly, get a dialogue going. >> securing the release of hostages is always a high risk, high pressure task. with young children involved, the french authorities will be acutely aware that an urgent resolution is paramount. bbc news. >> i am george allen died. the top stories this hour. 19 tourists have been killed in egypt when their heart of berlin -- hot air balloon exploded mid flight. i can bring you an update on that story from egypt. the news just coming into us.

the governor of luxor province, the province over which this balloon was flying, has banned all hot air balloon flights following the fatal crash of a tourist balloon near the city of luxor earlier today. there is no indication of how long this ban will be in force. as the first official reaction we have had from the authorities in nature to this balloon crashing in which 19 people, we now know, have died. let's look at the implications. simon is here with us from the independent newspaper here in london. they have banned these flights, but it is not going to out. people are going to be raising questions about safety on these flights. >> yes, and clearly, the investigations have just begun into what is being called a tragedy this morning. thomas cook, one of those involved, has also said that it

is not selling any in egypt until it is clear on what has happened. it suggests to me that they will have already done some pretty serious checks to make sure that these safety standards were in place. it may be that we find out this was just some terrible freak accident that could not have been foreseen or prevented. the rule is talk that of law, the kinds of checks that might happen elsewhere in the world, those of the were not taking place because of the unstable political scene in egypt. >> you're quite right. we do not know, so we must not jump ahead too much. but there is a history of them. in 2009 there was a crash. >> there was an accident, not fatal, in 2009, where a hot air balloon had a mobile phone tower. it is thought that they all had

been tightened up. hot air balloons operate, or the state should come under the same strict regulations that commercial flying works. for instance, in the u.k., the aviation authority is in charge and it is just as safe as commercial flying, which means it is extremely safe. but unfortunately, there is no way of ascertaining the extent to which the rules which govern this flying are properly applied. >> and this is the last thing he gips tourist industry needed. heavily dependent on -- egypt's tourist industry needed. heavily dependent on tourism. >> let's see what happened since the uprising. two years ago, places like a gaza and sean o'shea -- like have actuallyers been recovering.

elsewhere is really suffering. is feared is that people will take the view that this is somehow a state rabbling out of control and is unable to guarantee the safety of tourists. it is worth saying that in the two years since the political toro, not one single tour as has been harmed in the events -- has been in political turmoil, not one single tourist has been harmed in the events that have been taking place. negotiations taking place with six world powers, united uk, andrussia, germany, france want to persuade iran to halt its enrichment activities in exchange for easing sanctions. our correspondent joins us now. i get the impression that the negotiations and the people

around the negotiating teams are dampening down any expectations of what might happen at these talks. >> what i think they're trying to do is to dampen expectations after a day, or possibly two days of talks here that these sites can come out and say, well, we gotta deal. there will be no deal done here. i think for all sides are hoping for is that at least there is an agreement to meet again and there is some type of momentum that can begin pierpont -- that can begin. would by technical experts as well to start meeting, so they can start working on the particulars of iran pose a nuclear program. -- of iran nuclear program. this is very much about building measures. we have heard talk that the first round of talks has finished. bilateral meetings are going on now.

we have not had a full briefing yeah. we will have to wait and see. no denying the stakes are very high. bethese talks will always about give-and-take. as i understand it, iran has a hint of what this group of six countries are offering in terms of sanctions and are not very happy about it. >> not very happy about it all. the international powers came here with what they described as a serious and substantive offer they wanted to put on the table. they said they did not give it to iran before they sat down because they wanted iran to understand every single aspect of what would be offered. when we spoke to iranian saidmats last night, they

they would -- they were coming to listen. although we heard this morning at a briefing that iran gave to its own journalists that they had come with a series of proposals and would present different proposals depending on what was offered by the other side. but certainly, there's no secret, the international community, the united states, britain, france, germany, want iran to talk -- said they would -- they were coming to listen. although we heard this morning at a briefing that iran gave to its own journalists to stop uranium at such a high is too high, the west says, for a country that keeps peaceful program. it is also no secret that iran would like some of the sanctions eased on them. although it said it will survive these sanctions with a defiant tone pippert -- a defiant tone. they say today they will not stop enriching under any circumstances. >> thanks for that update. on the fourth of march, canyon's elected a new president. -- elect a new president. the campaign has been dominated

by the events of five years ago when kenyon's last went to the polls. and than 1000 people died 350,000 were displaced in post- election violence. enrichingthe bbc reports from n. on the few days left and a will betial candidate leading the country. people have been waiting for hours to vote for their candidate appeared -- their candidate. for now, it appears fall. the two main rivals are neck- and-neck. there is enough support for 50% plus one vote. he is accused of crimes against humanity.

the international criminal court is and big issue in this election. after the last disputed election, the country descended into violence. they're accused of leading the ethnic communities to fight each other. the decision to run for political office is seen as an act of impunity. >> a lot of what is forecast on somalia in terms of the war against terror have roots in this country. kenya is very important to the international security. kenyaya collapses, it becomes a pariah state, then all of these things come out. kenya has roots going to

uganda and elsewhere. they're very apprehensive as they look to this election. >> it was seen as an island of peace surrounded by troubled neighbors. the peace in somalia and sudan were broken. they came here. it damage the country's image internationally. start to a close, everyone is holding their breath as to whether this election will bring can get to its true potential as a powerhouse or descend into trouble. >> a couple of quick stories to give you. a militant group has said it fired a rocket from the gaza strip into israel. no one was injured. no rockets or mortars have been fired at gaza since november. they said it was to avenge the

death of a prisoner in an israeli jail on saturday. the vatican has announced a new title for pulte benedicta when he steps down this week. he will be called america's polka and will continue to -- emeritus pope and will continue to wear white. doing this twice in the same week? it is a feat that's has earned sharon shepard a place in the guinness book of world records. she is the first woman to scale mount everest twice in the same week. she said she hoped it would redress the gender imbalance in the world of climbing. she said it can be difficult for women. "they are not considered as strong as men and find many problems, like finding toilets." a very practical worry there.

coming up in the next half- hour, we go back to italy for more on the outcome of italy's general election. with no clear winner, there could be political stalemate for weeks, or maybe even months. will instability at the italian economy? will it spread to all countries within the road? we will speak with it -- with a member of the leading democratic party and try to find out what the future holds for italy. .ee you soon >> funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. union bank. fidelity investments. zte.

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