that wraps up our "in depth" look on hungary. i am meggin leigh.here on the "journal." stay tuned. ♪ captioned by the national captioning institute --www.ncicap.org-- ♪

hungary warned against new laws the european union and international monetary fund are pressing hungary to postpone action on proposed central bank of fiscal policy laws now before parliament if it hopes to win their approval for a financial safety net to protect the indebted country during the continent's financial crisis. they're totally indebted they have no money how are they bailing out people that are in debt yet again it emphasizes the theme of medieval ism remember during the medieval period the pappas you would get together and decide and figure out how many angels can dance on the head of a pin you see this was a preoccupation for hundreds of years then they used to being the user figure out how many derivatives can they slice and dice and dance on the head of another derivative while being balanced on the fulcrum of a derivative laced situation balanced on the nose of a central banker who's standing on a beach ball in the middle of a topsy turvy city with this new law that they're proposing going hungry they even i.m.f. say the financial stability law which would set tax and

the new laws rename the republic of hungary as just hungary. and the constitution consolidates government controls over the state media and the government bank, and it asserts traditional conservative values, like the rights of the unborn child against abortion. members of the parliamentary ruling party say that it is a landmark document. for the first time in hungary, a freely elected parliament has created a new constitution. tens of thousands of protesters disagree. they say that hard-won freedoms are being limited. they gather outside the opera house. trade unionists were among them. >> the main problem with this is that it is destroying the old constitutional order. this new basic law is essentially a single party constitution. >> the prime minister is blamed for undermining checks and balances. and they say that he refuses majority to fast-track the introduction of new laws without enough debate. >> the whole thing is as if he was driving a bus towards an abyss, but only he can eject when the passengers are stock. >> international passeng

they must make an application, which is bad news if it was hungary. >> of hungary stated officially considers syria a safe place for refugees. it says it has no problem sending people back. >> the german government denies sending any syrians back to hungary. it also rejects claims that budapest is pending asylum seekers back to damascus. >> no one has been deported to syria since last april. even if we were to send these men and women back to hungary, they would be safe there. >> the dispute is another sign of how hard it is for europe to adapt to the turbulence caused by the arab spring. >> let's go to sarah. a very stark warning for the eurozone out with the imf. >> the threat of a major recession. if the situation gets worse, the bloc could see a 4% contraction in gdp over the last two years. -- over the next two years. >> in its revised global outlook, the imf says gdp will grow even slower than initially forecast. incites the eurozone and sovereign debt crisis as a major factor in says the recession is on the brink of a mild recession. >> the world recovery, which was weak in the first p

. >>> kristie will he gallon tells hungary to get its finances in order before it cuts a check. >>> and can japan's new cabinet push through the unpopular changes needed to fix the economy? >>> first up let's go straight to the european markets. they've been open for about an hour today. as you can see, this is how the main indices are performing on track to have four straight weeks of gain. when it comes to the broad 50 index which tracks 50 leading stocks around this particular region, i can tell you that it's at its highest level in two months. when it comes to the volatility index which measures fear based on the euro stocks 50, that has been going in the right direction. it's fallen to its lowest level in about five months on the back of worries about the eurozone decreasing, let's say. investors cheered the success of two particular events in yesterday's session. on the one hand we had bond auctions by italy and spain and those yields have come right down and that is one of the reasons why these stocks are doing quit a bit better than expected. banks also saw the main gain as an e

put into context how much these mortgage holders have been hit the franc bought one hundred sixty hungary and forints in the summer of two thousand and eight but as strange as so much that it can command two hundred forty eight for inside the moment so it's almost doubled the exchange rate you know it's like offering a consumer tainted meat basically and that is against the law you can't sell somebody tainted meat and now and people say oh you know this whole wave of anti-capitalism is destructive no it's not about anti-capitalism it's about being anti the so. all hours of tainted meat i eat meat but i don't want to be sold tainted meat that doesn't make me a vegetarian still a capitalist i just don't want to be tainted meat now these banks offer the equivalent of tainted corrupted maggot infested products that are sold to them by these people of the mist sold to these people that doesn't mean it's a their anticapitalist no they're anti criminals to this right now max in an effort to stem the rising foreclosures the hungarian government earlier this year in the first quarter of two thousa

nobody's got hungary's back. let's dig in on all of these.e're going winners, losers, wild cards and talk about whether you should by the winners, losers and what to make about hungary. paul, i want to begin with you. we'll start on a high note. let's talk about terex. the sales booming off the recession bottom, above pre-recession levels. good numbers lately. but the stock has also responded. is it too rich to still invest in right now? >> we think it's a little bit rich right now. we have a couple of concerns. there's some upside left. but given the risk level, we're maintaining a neutral rating on the stock. we do think that terex could struggle with chinese competition particularly in the developing world, losing some market share. secondly a lack of pricing power. we think their lack of ability to be a price leader will hinder their ability to offset raw material cost increases over the next few years. >> how exposed to raw material prices is terex? there's a fear of china slowdown. some commodity prices have come off pretty good, copper

he and the prime minister of hungary are scheduled to meet next week in brussels. some reaction, we spoke to someone in budapest, and i ask that the people view this eu legal challenge as an attack against the government there or against their country? >> i think they view it as both, especially if you speak to supporters of the party of the communist. they will see it definitely as an attack on both the prime minister and their country. there are also extremists, one for a party which translates as movement for a better country, and they go further. they not only view it as an attack on hungary, but they also want to leave the european union as soon as possible, something that made clear over the weekend during demonstrations where, if right -- quite frankly, people wearing uniforms and flags of the pro-nazi regime or a rallying against the european union. >> does he had the backing of the vast majority the hungarian people? >> according to opinion polls, he has lost about half of the 2.7 million people that voted for him. his support is clearly defining. -- clear

the time the economic crisis hit in two thousand and seven some two thirds of all mortgage loans in hungary were denominated in swiss francs two thirds max in poland more than half of mortgages were in francs while other eastern europe and baltic countries also had high rates now explain to the audience here what this means well interest rates in switzerland are really cheap close to zero so people would borrow money and then low rate then they'd buy real estate in their home countries but they didn't factor in the currency risk. you see the thing is that people who are taking on mortgages in these low rate interest environment and foreign countries don't have the same tools to sterilize their currency risk that major corporations or countries do every single day they sterilize their currency risk but if you're out there borrowing in a foreign country to invest in a home without hedging your currency risk then wham-o. you're open to these currency moves and this is what happened again and again and again all over the world people are getting slaughtered by these currency rate changes and cu

now hungary could be subject to the european court of justice. but it seems to be willing to compromise before it comes to that. >> when you have any kind of assumption or you come to a point -- if it turns out that the legal issue is not in line with european law, then it should be recommended. >> the commission had to play tough to get the endurance to back down. hungry cannot afford to lose eu support. but questions remain about whether the concessions will be enough. the hungarian prime minister is now preparing to address to the european parliament. the last time he came here, he got a mulling over the constitution. even if he is now willing to compromise, it may not be enough to appease left-of-center groups. >> at least 51 people have been killed in inter-ethnic clashes in south sudan. a state of emergency has been declared in the area. five foreign tourists have been killed by armed rebels in ethiopia. it happened in the northern region near the border. there are unconfirmed reports that two members of the group were injured and that a th

. >>> the european union to take action against hungary. if the sanction goes ahead, it will be the first time following the revision of the fiscal requirements. >> hungary has also taken measures, but these are unfortunately not sufficient to correct the deficit in a sustainable and credible manner. >> the european commission has been examining the fiscal conditions of its member nations since a new eu system took effect last month. the mission allows sanctions for violations of fiscal discipline. the commission says hungary's fiscal deficit is expected to exceed 3% of its gross domestic product last year, even though it plans to stay below that level. the commission will recommend the sanction,luding withholding development funds from hungary. the sanction is expected to be proved january 4th. >>> surplus fell for a ninth straight month. the finance ministry said in a preliminary report on thursday the current account balance fell 85.5% in yen terms from a year earlier to about $1.8 billion. it was in the red for a second straight month.

people from hungary are depressed and tell me that nothing is looking very good in the future of hungary in terms of liberty and democracy. in kazakhstan, an important and large country in central asia, there is hope, a sense of excitement, a sense of a common future that is better than the past and certainly a slight improvement on at least the democratic representative -- representation of the presence. tale of two countries, one going up, one going down. i have a wonderful show for you today with great minds to discuss the other issues. we will be right back. >> many have spoken out about the need to transition to a cleaner future. by 2020, we are committed to offsetting, displacing more than 15 metric tons of greenhouse gas emissions annually through greening our operations, helping our customers and communities reduced their emissions and offer more low carbon electricity in the marketplace. we are taking action and seeing results. >> "white house chronicle" is produced in collaboration with -- >> now the program host, will.i.am king -- llewllyn king and the linda gasparello. >> hel

the fact is, hungary can't afford to lose e.u. support because it desperately needs a loan to help repay debt. but questions remain about whether the concessions will be enough. the hungarian prime minister is now preparing to address the european parliament. last time he came here, he got a mauling over the constitution. and even if he's now willing to compromise, it may not be enough to appease left of center groups. >> in other news, at least 51 people have been killed in interethnic clashes in south sudan. members of the tribe attack rivals on monday night. it follows an attack on nearly two weeks ago. a state of emergency has been declared in the area. five foreign tourists have been killed by armed rebels in ethiopia. it happened near the border. there are unconfirmed reports that two members of the group were seriously wounded, and another survived unharmed. the lawyer defending mubarak says his client is a victim of malicious talk. he is accused of order the killing of unarmed protesters during last year's uprising. mr. mu

prompting threats of court action this week to hungary and prime minister backed down in the dispute saying the legislation will be changed. parties tom barton is in the region following all the latest developments you can check out our team's twitter feed as well as his personal one for the latest on hungary's dispute with the e.u. as well as the current referendum the latest updates all online for you right now. europe in the u.s. have expressed their willingness to return to talks with iran over its controversial nuclear program despite this the e.u. is seemingly still set to approve an embargo on iranian oil france even says it's time to avoid military intervention the time to avoid military intervention rather is running out as for the u.s. this week strengthened its presence in the region sending a second aircraft carrier to the arabian sea it's reportedly planning to sail through the strait of hormuz which iran has threatened to block in response to sanctions the straits the strategic waterway which the majority of oil exports from the gulf to the west pass brian becker from t

the greeks in order to support their euro zone bailout so they see neighboring countries such as hungary i mean the government of hungry for the past two weeks have been vilified by the european union are not going to get into the argument to avoid whether or not the prime minister is right or wrong there but certainly people get very very unfairly very uneasy about things that are being said. patrick young talking about the pressure on hungary and on saturday crowds of more than one hundred thousand took to the streets of the capital budapest where they were supporting their government which recently came under fire from the e.u. for passing what brussels thought to be anti-democratic laws and it also stalled belo talks with the i.m.f. propping threats of court action this week to hungary and prime minister backed down in the dispute saying the legislation will be changed. parties tom martin is in the region following all the latest developments you can check out our team's twitter feed as well as his personal one for the latest on hungary's dispute with the e.u. as well as the current

. >> hundreds say that hungary is drifting into a store turn is them. >> this could lead to a standoff with the european union itself. >> this is democratic post saddam -- iraq kurdistan. -- this is democratic, post saddam kurdistan. >> tokyo was buzzing and the rest of the world could not get enough. then japan's bubble burst, the stock market crash sent the economy tumbling. they call the next 10 years the lost decade, a time of slow growth and unemployment. other countries are worried as they are destined to follow japan posture tikrit and what lessons must be learned to avoid it. we will talk to a japan watchers who questions the entire premise of the lost decade. >> japan does not look like it has been stagnating for 20 years. the streets are bustling. many of the women have a luxury handbag. there are nearly four times more michelin restaurants in tokyo than in france. this company has doubled its work force since the bad times began. they produce panels that control the machines that make the exports that japan is famous for, cameras and cars. their jobs have never been under th

no longer to be known as the republic of hungary. simply hungary. supporters see the constitution as a crescendo of the year of dramatic reform. it replaces a communist document with one that acknowledges christianity and backs a traditional view of marriage between a man and woman. but critics say it also restricts the role of the constitutional court and interferes with the independence of the judiciary. it was signed into law by the president after consultation the the -- after consultation with 1 million hong garretts. on the streets outside, tens of thousands protest against the constitution and the 2/3 majority used by the government to drive to hundreds of new law. >> the whole thing is if orban is driving a bus tour is the abyss. only he can eject while the passengers are stuck. >> it protested a new law which they say favors -- parts of constitution and banking reforms is not all to the progress of legislation. it has come soon as hungary began to talk on a 20 billion euro imf and european union loan to tide over the economy. >> france says

hungary is moving to centralize policy making authority to the government. at the end of last month it passed legislation that will remove the power from the central bank to a point its deputy governor. the european commission has expressed concerns that the country's move will violate eu laws which uphold the independence of a central bank from its government. >> so we will use all our powers to make sure that hungary complies with the principles and the values and the rules of the european union, and i'm confident that we will achieve that. >> eu policymakers are to decide on what actions it will take by tuesday of next week. >>> tokyo share prices are rising on friday morning. concerns over the european debt crisis eased slightly following those smooth auctions of italian and spanish government bonds. the nikkei index now stands at 8499, just shy of that 8500 mark. currently up 1.3%. the broader topix is up by 1.2% currently at 735. sources say investors are placing buy orders on exporters to europe such as electronics and precision machinery makers. the

and changed the country's official name from the republic of hungary to hungary.testers gathered for a performance marking the new law. the event was attended by state leaders and public personalities. the demonstration is supported by the opposition socialist party and democratic coalition and green lmp. >>> a 7-year-old survived a vicious attack in the wild by a kangaroo in australia. her family was on vacation when she was playing near a pack of ainge ruse when one went after her. the animal -- kangaroos when one went after her. the animal pinned her down and she was rushed to a hospital where she was treated for lacerations. the park and the family was visiting have agreed to put up warning signs. >>> check out the guys. china welcoming two adorable new guest for 2012 twin polar bear cubs made the first public appearance at the park. they are bears. so cute. visitors lined up tore the pictures -- for the pictures. some had a chance to play with the cubs and they were born in october and had been back in the den since then. >>> news time 5:20. if you fly you kn

. >>> the european union is considering imposing sanctions on hungary for failing to take appropriate measures to cut its budget deficit. eu finance ministers agreed at a meeting that hungary has failed to comply with an eu recommendation to bring its deficit below 3% of gdp. regulations introduced last month allow the eu to punish member nations for violations of fiscal discipline. the eu is likely to suspend grants and impose other sanctions if hungary does not change its budget policy. hungarian finance minister gyorgy matolcsy expressed confidence that the country will be able to avoid sanctions although resolving the problems will take time. >>> time for a check on the market. on the tokyo foreign exchange the yen is lower against both the euro and the dollar this wednesday morning. the u.s. dollar currently trading at 77.81 to 82 yen while the euro is at 101.34 to 39 yen. investors are buying back the euro on eased concerns over negotiations between the greek government and financial institutions on debt reductions. buying momentum is carrying over to the dollar. tokyo stocks ar

pressure continues to rise for hungary as well. the debt ridden nation has been downgrgradedo delaware status by fitch, meaning the country is at a high risk of default. the country has been at a virtual free fall. the nation's cost of borrowing soared in the latest debt auction. e government wants to secure a lifeline, but first, it must resolve some opposition. >> hungary is drowning inebt, but the i and the eu broke off talks with the government in budapest about new financing because of concerns about a proposed law that threatens the independence of hungary's central bank. still, government officials appear confident that the talks will resume. >> we think it is important to reach an agreement with the imf and the eu. we want to move towards a deal. we are ready to n negotte without preconditions, and we are ready to discuss everything at the negotiating table. >> the hungarian currency slumumped new lows this week. that, plus the new higher cost of borrowing, has put pressure on the government to make a deal. many analysts sa

at budapest that a food banks there is concern over what it might mean for hungary's poor.nternational criticism of the new competition has put loan negotiations on hold, at a time poverty is increasing. back over the danube, and this one's a fluent empire is heading into the unknown. ministers say they will do all they must to satisfy international investors, but will they have to give up their cherished constitutional changes? matthew price, bbc news. budapest. >> this is "gmt" from bbc world news. the headlines -- the syrian authorities have condemned what they describe as a terrorist attack by suicide bombers on an eastern suburb of the syrian capital. after meeting >> 's democracy activists -- activist aung san suu kyi, british foreign secretary william hague says more reforms are needed before the use sanctions can be lifted. aaron is here, i believe with news on the smartphone business. >> samsung -- i think it is fair to say, it is firing on all cylinders. let me explain. the south korean tech giant samsung said it made record profits in the last three months of 201