federal reserve, the bank of england and the bank of japan. the measure will be on top of the one-week loans the ecb has been providing since may last year. credit anxiety in europe fueled concern of the health of banks holding government bonds of greece and other euro zone nations whose market prices plunged. the situation pushed down the stock prices. the european central bank is believed to have decided on the new measure to ensure banks have the large amount of dollars they need through the end of this year. >>> german chancellor rejected the idea of joint euro zone bonds saying they are absolutely wrong to ease credit worries in the region. >> translator: prices step by step but only if you do it this way not search for the one and only solution. keyword. euro zone bonds. i think it is absolutely wrong. >> merckel said to bring about standardized interest rates for state bonds issuing nations must be equally competitive and have a similar budget status. she said simply sharing the debts would not be acceptable. the chancellor's comments a

have a feeling you've read this first headline here banks still expect taxpayer to for their failure this according to paul fisher of the bank of england's executive director for markets and he disclosed that quote some banks have told us that they think they should not be required to hold capital and liquidity to deal with such extreme tail of events leaving the public sector to be the capital provider of last resort it's contradicts what these bankers say in public max well this statement needs to be examined for what it's worth here is somebody representing the bankers who is defining who is basically shaking you know his finger at the public and saying how ha ha ha ha we've got all your money i mean this is not acceptable max this is paul fisher and he's saying in private conversations bankers have told him that they don't need to raise capital requirements as the bank of england is requiring them to do they're saying we don't need it because the taxpayer will bail us out look the whole crisis started when goldman sachs became a publicly listed company not that long ago before then the partners had their own capital at risk if they m

the european central bank, the bank of england, the bank of japan, and the swiss bank said that they will try to provide liquidity through the end of the year. shares rallied and french banks rocketed higher on the news. there was fireworks on the european stock market. shares went soaring. >> it was a day of the rescue as the clear comments to greece was the first driver before central banks sparked their real rally driving up the rope. there is the fear of an upcoming greek default, there is worries about the lack of liquidity at european banks. french banks and made up for the losses this week. the damage by ubs caused by a rogue trader caused discussions on the floor but was of little significance. >> we start in frankfurt where the benchmark dax closed up more than 3%. the eurozone stocks 50 also ended the session three and a half percent up. -- the euro stoxx 50 also ended the session three and a half percent on up. the euro has strengthened, it is up against the dollar at this hour. after a strong start to the year, the european commission said that the eurozone economy will r

federal reserve, the bank of england and the bank of japan. this new measure comes on top of one-week loans the ecb has been providing since may last year. the ecb is believed to have decided on the new measure, to insure the financial firms have the larger amount of dollars they need through the end of this year. >> and the heart of europe's financial mess is of course, greece. and the big question is, will the country default. on friday, the 17 euro zone finance ministers met in poland and discussed greece and the spreading debt crisis in europe. in a sign of growing global concern about the situation, u.s. treasury secretary, timothy geithner, made an unprecedented appearance at the meeting. there, the financial leaders agreed to decide by mid october on bailout loans to greece, after seeing what the country has done to put its fiscal house in order. though with rising public discontent over bailing out greece, there may be no more help in store for the euro zone. amid jitters over what could happen to greece and the rest of europe, ather p

the bank of england wants to lower interest rates. this leads to fear of inflation and inflation is up by 4.5%. >> let's get a closer look at the market numbers now. the benchmark almost 2.5% down. across the atlantic, the dow industrials closed down or 2.5%, and the euro is trading 1.3601. the u.s. federal reserve says it will twist debt into longer-term bonds in order to cut interest rates and stimulate more growth. the fed will reinvest payment for mortgage-backed securities to keep mortgage rates low. there is significant downside risk, but investment in equipment and software is increasing and that inflation has moderated. germany and switzerland has signed a controversial agreement that will seek taxes on secret swiss accounts. they are otherwise lost cash. the agreement still has to be ratified. the opposition holds a majority and they say they will reject it. >> for decades, swiss banks were a safe haven for german tax evaders. as much as 180 billion euros are out of sight of the german tax office. but they will forward a lump-

federal reserve, the bank of england, the bank of japan and the swiss national bank. they are promising to exchange u.s. dollars for other assets so european banks have enough dollars for the rest of the year. some banks in europe have been having trouble getting u.s. dollars. key sources, like u.s. money market funds, have been drying up as financial firms worry about high debt levels held by european countries. why do european banks need a steady stream of u.s. currency? so they can make pay off past loans made in dollars and service the interest payments. the e.c.b.'s new lending program will begin next month. it will allow banks to borrow as many dollars as they want, at a fixed interest rate, for up to three months. the british, japanese and swiss national banks will do the same. the u.s. fed won't make direct loans, but it will offer funds to the e.c.b. it is hoped the loans will prevent a liquidity and confidence crisis. but economist robert brusca says the plan is not a solution to the eurozone's problems. >> europe has lots of issues. european banks still has

the european central bank said it will coordinate with the fed, the bank of england, the bank of japanswiss national bank. they'll extend dollar loans to struggling euro-zone banks, for three months, starting in october. the head of the international monetary fund, christine lagarde, supported the decision on cnbc. >> whatever path for recovery we see in the future will require collective action by the political leaders and governments and parliaments, and a bit more bipartisan approach to life and the action by the central banks. so i welcome very much what has happened today. it shows that they will do what it takes to actually maintain stability in the monetary system and in the financial system. >> sreenivasan: the news helped boost stocks on both sides of the atlantic. on wall street, the dow jones industrial average gained 186 points to close at 11,433. the nasdaq rose 34 points to close at 2,607. the u.s. house has voted to intervene in a federal labor case against aircraft maker boeing. the national labor relations board had charged the company moved a production line from wash

of moving forward. >> christine lagarde there. for more on the action taken by the central banks, i am joined by a reporter from the bbc. thank you very much. the bank of england, the central bank -- what have they agreed to do and why is it significant? >> have agreed to make dollars available to commercial firms -- they have agreed to make a dollars available to commercial firms to have been impacted by this debt crisis. they have not been investing. these firms in europe need dollars. they have been freezing up because they do not have enough dollars that usually come from the commercial firms. therefore, all of these central banks are stepping in where the private investors will not and making these dollars available, these much-needed dollars that have not been available because everyone is so nervous about what the wide-ranging impact of this debt crisis will be. >> it is a short-term fix. what about the long-term fix? >> it is very short term. investors are relieved to see action being taken. we have seen a lot of stocks rising today, particularly bank stocks. even though this is only three months into the future, it does look like the central bank's ar

of coordinated action by central banks. five of the world's leading central banks, including the u.s. federal reserve and the bank of england, are taking coordinated action to try to help the financial system. they're offering new loans to commercial banks to help ease funding pressures. this report from our europe editor, gavin hewitt. >> on a day of gloomy forecasts, a concerted move by the world's most powerful central banks, short-term loans are going to be made available to commercial banks. there have been growing concerns that banks were stopping lending to each other because of fears they might face losses in the eurozone. in greece, there were more protests against the austerity demanded by europe's leaders in exchange for a further bailout. this on a day when the eurozone was told that growth was expected to come to a virtual standstill by the end of the year. there was a warning that a combination of weak growth and high debts was leading to a dangerous loss of confidence. >> this vicious cycle is gaining momentum and, frankly, it has been ex-aser baited by political lack of resolve. >> greece remains at the hear

five of the world's leading central banks, including the u.s. federal reserve and bank of england, are taking coordinated action to try to help bolster the financial system. they will provide commercial banks with new loans to help ease funding pressures. it comes out as the head of the international monetary fund says the world is in a dangerous new phase which needed bold leadership, and she accused politicians of being indecisive. more details on what today's actions will mean. >> on a day of gloomy forecasts, a concerted move by the world's most powerful central banks. short-term loans are going to be made available to commercial banks. there had been growing concerns that banks were stopping lending to each other because of fears they might face losses in the eurozone. in greece, there were more protests against the austerity demanded by your's gang leaders -- europe's leaders. this on a day the eurozone was told growth was expected to come to a virtual standstill by the end of the year. there was a warning that a combination of weak growth and high debt was leading to a dang

banks. ministers want to have it ready by mid october. one of the solutions could be in the city of london. the bank of england is considering pumping money into the economy. the u.s. federal reserve on unveiled new measures to stimulate activity. the world central bankers have something left in the locker. >> time might be running out and financial markets need a lot of convincing that effective action will be taken. >> for more on this wild week in the markets, i'm joined by our correspondent in washington. give me some good news. i have heard so much pessimistic news. there must be something optimistic in the world economy. >> what we are hearing at the moment is that there is a realization as we just heard tuesday is that europe is at the center of this crisis. people waiting for action unfortunately will have to wait another six weeks when they will get together again in france. >> can we afford to wait six weeks and let the market's fall 6%? >> that is the long shadow if you like that is hanging over this meeting. people on not sure quite how much time there is. the problem is that there is this question

prospect of coordinated action by five of the world's leading central banks to tackle the euro-zone crisis. five including the u.s. federal reserve and the bank of england are taking coordinated action to try to help the financial system. much more of course on our website, thank you very much for watching bbc "news day". >> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> union bank offers unique insight and expertise in a range of industries. what can we do for you? >> bbc world news was presented by kcet los angeles. 

for example, the bank of england. they are looking for calls to end the policy known as quantitative easing. it seems certain that that is on the agenda of the latest monthly meeting. for policymakers, including george osborn, these are uncertain times. he would like to nonbusiness and get growth moving but on this tax battleground, that is proving difficult. -- she would like to get business and get growth moving. >> this is "newsday," on the bbc. >> our headlines. 43 people including players and officials from a professional ice hockey team had been killed in a plane crash in russia. >> the hunt goes on in libya for colonel gaddafi, there are fears that a power vacuum is developing in the capital of tripoli. some rare home video has emerged of colonel gaddafi's family life. the images show him as a relaxed playful grandfather rather than a reviled dictator who is in hiding. we have more on the mystery surrounding the former libyan leader. >> the colonel so feared for so long by the population, here he is seen as the

the bank of england could inject more cash into the economy. in europe, the central bank may need to act. the key is for european politician to solve the problems with the euro and shore up their banks. in america, the imf says president obama was right to spend money now to create jobs. >> it will provide a jolt to an economy that has stalled and give companies confidence that if they invest and hire, there will be customers for their products and services. you should pass this jobs plan right away. $450 billionent's stimulus plan seemed to go down well last night. but the markets fell again today on fears that the republicans would not pass it. the value of the euro also fell sharply on the news that a key figure in the european central bank had resigned. there was plenty to talk about in france denied. the last time anyone was worried about the global economic, policy makers pulled out all of the stops to save it. they now have much less room to maneuver. >> still to come on tonight's program, iconic image is from 9/11. a photography talks a

forty three billion pounds in interest since march two thousand and eight so figures from the bank of england suggest that savers of lost more than forty three billion dollars since bank rate was cut two point five percent two and a half years ago but borrowers have benefited to the tune of more than fifty one billion pounds as they have paid less in interest on their loans over the same period good amount those it doesn't add up if you want to restore the economy raise interest rates or people can save money and you have capital as the basis of but nobody's interested in that anymore and i have one final thing to say on this max and that is that to put this into context in the u.k. at the moment there's a raging debate about this fifty percent tax the bankers are resisting it but the the fifty percent tax rate will wait twelve point six billion over five years here forty three bill. and stolen from savers over two and a half years and they remain silent. making the noise for the same hours in the interest of the sailors were killed and eldridge cleaver of the new seventies give peace a chanc

banks, and that is what we are doing. we've already set out how we're getting rid of the tripartheid structure that failed so badly under the last government, how we're putting the bank of england back in charge, how we're making sure we can't have these bank failures that cost the taxpayer so dearly in the future. it seems there are two vital things we've got to secure; a safe and secure banking system for the future, but also proper bank lending including to small businesses right now in our economy, and that's what government policy will be aimed for. >> [inaudible] morris. >> thank you, mr. speaker. thank you. the prime minister will be aware that his government are consulting on their changes to housing benefit claims under the criteria of underoccupancy. this will adversely effect disabled people, 33,000 in the northeast alone who stand to lose an average 676 pounds a year. how does this policy meets his government -- [inaudible] >> we are making a specific exclusion to deal with people who have carers living in the home, but we do have to reform housing benefit. i think the whole house knows that housing benefit was one of those budget items that was completely out of co

back much of ours was two hundred tons of gold shit back to venezuela one hundred tons of the bank of england undertones held by banks like j.p. morgan and if he actually delivered the call j.p. morgan once again stock price zero so let's stay with libya here tony blair's libya policy fuel power obsession of khadafi son again this theme of the confidence game. tony blair snake oil salesman went to tripoli brought in khadafi and his son to pretend that they were part we're giving you our confidence you're part of this game say follow islam you know as nato is dropping bombs on him who is he shouting at sar cosey not a blair he still is a victim of a confidence game or he still believes the guy who sold them out is somehow star cosy and not tony blair in a tony blair if push comes to shove he should start selling those not choppers on late night t.v. and vince is a famous seller of chomsky's on late night t.v. but they have a retires tony blair are you going to love my nuts watch this so easy one finger i can do one thing for you guys to do with your home the reason you can to sock away every d

the federal reserve the bank of england the paul mason's of the world that it's better now it's all better now including this headline max e.u. competition commissioner joaquín allouni warns that banks may need further bailouts yes once again apparently they took the stress test in july but things have changed since then and because of the debt crisis joaquín says that banks are now more in debt it thing shadow banking system but counts back in two thousand and seven the shadow banking system at around eight hundred nine hundred trillion dollars in derivatives best been falling ever since two thousand and seven and two comedy is off balance sheet losses so banks and investment banks have had to print a little more money but they're scared to death of the shadow banking system so they don't circulate that money in terms of lending it out to get the economy started they keep it on their books in case there's another frozen assets like we saw in two thousand and eight remember overnight commercial credit repo market froze and corporations are frightened of this. they want cash on hand how was

the central banks were founded to create credit to fund government deficits that's where the bank of england was founded that's why the federal reserve was founded but the banking interests in europe crippled the central bank they didn't want to central bank to create credit they say we want governments to come to us and pay us interest and we want to rip off the economy don't have a central bank don't have a public option let us raise your cost of doing business give us the business so of course there should be a central bank unfortunately the way in which you just mentioned the central bank to be perform a function is what it looks like it'll be the central bank is enough to create employment not to run the government deficit not to help the people but to give more money to the banks to bail them out that is rotten that is the central bank lobbyists and that shouldn't happen and if that so they create a central bank then good for the europeans for saying to hell with angela merkel. i have to concur with michael on this and i think essentially what we see is continued rent seeking ever sinc