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tv   Journal  PBS  July 19, 2011 6:30pm-7:00pm PDT

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>> hi, everyone. welcome to "the journal" on dw- tv in berlin. >> and i have your business news. >> coming up on the program, a lone protester attacked rupert murdoch during a british parliamentary inquiry into the phone-hacking scandal. israeli commandos aboard a boat full of activists trying to reach basra. >> and in business news, a new currency for the south sudan. >> we begin in london, where a
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parliamentary inquiry has been under way in the phone-acting scandal that led to the demise of rupert murdoch's tabloid newspaper "news of the road." the former editor, rebekah brooks, was answering questions after being arrested on allegations of hacking and bribing police while at the newspaper. british parliamentarians also grilled media mogul rupert murdoch and his son james pre- empt rupert murdoch apologized for the phone hacking, but he denied that he was ultimately responsible. he interrupted his son to say that the day was the most humble in his life. the proceedings took a dramatic turn when a protester hit rupert murdoch with a foam pie. >> there was a police escort for rupert murdoch as soon arrive
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for the parliamentary hearing. he and his son james appeared together. they faced tough questioning but were not r0quired to answer anything self incriminating. his son james was talking, and rupert interrupted. >> this is the most humble moment of my life. >> , murdoch said he had lost sight of "news of the world" and that he really did not know what was happening at the paper. the chief denied ultimate responsibility for the paper and blamed those he had trusted to run the paper. he also explained why the company had not investigated allegations earlier. >> it was not our job to get to justice. it was up to the police to bring charges and to carry out their investigation, which we were 100% cooperative with. >> after hours of questioning, the session was suspended when a
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member of the public gallery attacked rupert murdoch with a foam pie. murdoch's wife lept to his defense. they took a 10 minute break, and then the meeting resumed. >> it is being referred to as britain's watergate. executives, the police, and the u.k. political eat. we spoke earlier to birgit. david cameron. >> it is definitely david cameron as political judgment that is question a lot at the moment because he had hired andy coulson, who was involved in the hiking scandal. he is still a high spokesperson and a personal friend and still is a personal friend, and along
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with drugs and other top executives, has been arrested -- and along with brooks and other top executives. he is so close to people in the murdoch empire. some say they should not support david cameron any longer. definitely, it is not looking good. >> that was our reporter talking to us from london. >> shares in news corp. have rebounded by more than 5% tuesday, but the media conglomerate has suffered badly under the scandal. share prices plunged in reaction to the phone hacking scandal and took about 6 billion euros off of the value of news corp. since july 5. despite speculation about whether murdoch will be able to stay on as ceo, he made it clear
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that he fully intends to remain in charge. we asked about investor reaction. >> chase carey is a possible replacement is there is a replacement in the wake of this scandal. "the wall street journal" would perhaps no better than anybody else because the paper is also one of the properties of news corp. and the murdochs. we find it hard to imagine that the murdochs can remain after the allegations, finding what truth there is in the end, what responsibility, but they find it hard to believe that with a scandal like this that people who were at the operating helm can withstand this. the company itself, dimension house what the stock has dropped, it is not clear -- you
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mentioned how far the stock has dropped. oit can be even more drastic whn it comes to punishing people who have done wrong in a criminal sort of way perhaps. it is too early to tell. it is also clear that a share of the murder of a group, they have about 50%, they are also dropping -- backed a share of the murder of a group -- that a share of the murder of a group is also dropping, it one that has about 50%. >> the israeli navy has boarded a ship on the way to the gaza strip. the boat has been escorted to the israeli port. the vessel was port of a flotilla that they free gosling movement had planned to send to the gaza strip from greece -- that the free kazakhstan -- free
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gaza movement had planned to sen. >> israeli vessel surrounded in international waters. >> ty received directives from the government to board the boat, which the navy did a very professional manner. >> none of the 16 passengers and crew resisted, and they remain in custody. israel has vowed to stop any breach of the naval blockade to prevent arms from reaching the gaza strip. residents there are outraged. >> if there is nothing suspicious on board, why would they prevent the ship from reaching gaza? there are no weapons or bombs on board. >> it will be detained, where the passengers will undergo questioning. some of them may be deported. >> a human rights activists has
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been able to take part in ceremonies honoring her murdered father, who is considered a hero. she made a brief appearance at an official ceremony. afterwards, she met with western diplomats. she was accompanied by many to the memorial. she was released after spending much of the past 20 years in detention. and surviving two attacks that left up to three people dead. former army officers. a rocket and grenades were fired at the presidential residence. the president was not harmed. guinea has made the transition from a military to a civilian
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government. at bilateral talks here in germany, dmitry medvedev met with angela merkel to make deals for natural gas among other valuable resources. the chancellor said the numerous deals were proof of the intensity of contact between the two countries. >> by the time medvedev was treated to military honors, most of the bargaining was over. these were the 13th annual consultations between leaders of the two countries, along with most of their government ministers. merkel says this is the first step to finding solutions to pressing issues. >> in democracies, we do not talk about things that are working well. we always talk about what is not working. that is how it should be, because time is limited. we have to find solutions. >> both leaders are looking for
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solutions within the energy sector. as germany plans to phaseut nuclear power, it needs to find alternative sources. russian giant gazprom is looking to find ways. they want to have as many sectors as possible. >> both leaders were asked about their current assessment of the debt crisis in the euro zone. our correspondent melinda crain gave us the latest on chancellor merkel's viewpoint. >> angela merkel warned that people should not be expecting one big, spectacular solution. this is a long, ongoing process. it is a matter of small steps. we have to make sure that greece becomes competitive again, that it gets its debt down, and that will not be achieved with one big, spectacular step.
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president medvedev also had some words to say on the euro. he says he is cautiously optimistic that it will pull through. he says it is an extortion attempt, said nations have never tried before, and it is wishing europe bloc -- he said it is an extraordinary attempts, such that nations have never tried before, and he is pushing europe luck. >> some clouds on the horizon. a closely watched survey said dennis analysts and institutional investors are in anticipating a weaker performance in the months to come -- a closely watched survey said analysts and institutional investors are anticipating a weaker performance in the months to come. use 9 last month. reflecting concern that the debt crisis, could spread to italy. however, the drop in german
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expectations may not translate to weaker economic growth in europe's largest economy and to some extent, germany should be able to decouple itself from the problems of heavily indebted european states. on out to look at tuesday's market action in frankfurt, and for that, we are back to our correspondent, who sends us this summary of the day's trading. >> doom and gloom, that was yesterday. now, better prices, mainly due to ibm. the high-tech giant posted good sales, and it is looking optimistically into the future. infinion had a pretty good increase. people say the better mood, the better share prices, the better dax, that is not especially written in stone, because that is still out there. people are anxiously waiting for
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the present results of the eu's summit. -- waiting for the results of the eu's summit. >> the dax finished up by 1.2%. the euro stoxx 50 also clocking gains, finishing at 2,657. in new york, the dow trading higher, 12,571. and on currency markets, the euro also enjoying some nice gains against other major currencies. $1.41. the european commission wants the 27 eu member states to find a solution to the nuclear waste disposal of the block. above all, permanent storage facilities are needed, and until now, they have largely ignored the problem. >> radioactive waste is stored
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at some controversial sites, but there are no permanent sense company there in germany, nor in the rest of the eu. -- there are no permanent disposal sites in germany, nor in the rest of the year. >> member states should present us with a comprehensive plan on how they will deal with the permanent storage of their nuclear waste. >> so far, only finland, france, in sweden have vowed to complete permanent storage sites within so many years -- and sweden have vowed to complete permanent storage sites. a new directive allows them to export them to disposal facilities outside the bloc. if they meet certain safety standards. >> well, the world's newest country has unveiled the newest currency. south sudan gained its
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independence days ago, and today, its new currency debuted. the south sudan pound. one is currently worth about 26 euro cents. >> people lined up at the central bank to change their old notes and coins to the symbol of their new independence. the notes were printed in britain. the new currency is a milestone for south sudan. >> now that we have a central bank, of our own, i want to sincerely advise all of you, those who have money outside the country, you bring your money back. >> south sudan became independent on july 9 after decades of bloody civil war with the north. despite its oil reserves, the country's economy is in
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desperate shape, and it urgently needs foreign investors. >> and we have some news from the sporting world from meggin. >> a second stage win in the tour de france. a 160 discursion -- excursion -- a 160 kilometer excursion. a frenchman returns the overall jersey. contador has close the gap ahead of the critical alpine stages. -- has closed the gap. and atlantis and its crew of four astronauts have been at the international space station delivering supplies and taking out the trash. when it returns, it will go into retirement and and the three- decade-long program. -- and end the program.
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a pretty long way to go to take
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>> welcome back to business "in depth." or earnings season in the united states. bank of america reported a loss. the loss of subprime mortgages drag on results as the bank paid out $8.50 million in those who lost money in mortgage-backed securities. the ceo brian moynihan says the performance was strong without the one-time payment posting a profit of $3.70 billion. if credit costs, improved sales, and trading revenues, as well as higher asset management fees are just some of the areas of growth. well, for a closer look at that
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story in an update on the tuesday trading session, let's go to the trading session in new york. tell us what more caused t bad news for bank of america and how investors have reacted. >> bank of america is dealing dealing with so many issues that it is still putting some pressure on the stock, and what we have seen so far in the earnings season, they have to put less money aside for possible losses. it does stabilize the profits, but if you look at the revenue side, there are a lot of misses. especially if you look at the numbers from goldman sachs, it they are seen as quite a disappointment, as the bank of america and goldman sachs trading lower on the session -- so bank of america and goldman sachs trading floor. >> basically, problems with the real-estate market, and i roddick, the market is
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rebounding. is that because of the housingl market? >> if you look at housing starts and building permits, those numbers are much better than expected. we're still talking about very low levels. in is a long one, but at least for one month, he saw some signs of life from the housing industry and the shares from the housing companies are doing very well. we got some numbers from ibm. also, much better for technology and housing. >> coca-cola is also in focus this tuesday. tell us more about that? >> also, one of the biggest winners in the dow industrial average. coke was reporting an increase. the business was less, especially in the emerging market.
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coca-cola, classic at, a u.s. corporation, doing well. >> at the new york stock exchan, thank you very much. the euro zone debt crisis has dragged on for a year now, and despite all attempts so far by politicians to get it under control, the contagion is apparently beginning to spread further. on thursday, eu leaders are to meet in brussels to come up with a sustainable plan for bolstering the economy. this comes barely 10 years after the euro was introduced as a cash currency amid much fanfare and optimism. >> the euro was launched with an optimistic advertising campaign almost 10 years ago. cards ecb president bush jean- claude trichet was among those you aligned with the then finance minister to welcome the new era -- the ec president jean-claude trichet was among
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those who aligned with the then finance minister to welcome the new era. less than one decade later, it is in crisis. >> this is a national debt crisis. this is what remains. we are seeing this especially but not only in the southern countries. there is uncertainty in the banking system, and we are heading to serious trouble if we do not help greece, because we will have to bail out the banks. no one is speaking about the problem right in front of us. >> agreed that is a major challenge for the euro zone, and it is -- agree to that is just a major challenge. -- greek debt is a major challenge. some think it could even become a curse. >> the german economy grew last year at its fastest pace since
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reunification, with exports leading the charge. higher consumer spending has now also become a major driving force behind the recovery. >> in this germantown, business is picking up again at the restaurant. -- in this german town. the catering business is doing well, too. it has just received an order for 150 guests at a fashion show. one of the biggest caterers in the region, they are sensitive to economic swings. >> we used to put on lots of company events, like christmas parties. there was a lot to celebrate. then, that dropped off, and there were fewer parties. when you are laying off staff, you can hardly put on a huge party. it is not appropriate. >> now, they and the rest of the catering sector are feeling a
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noticeable upswings. sales from private and municipal events have climbed 5%. their order books are full almost every weekend, and it is busy with a major upcoming event. the company supplies an estimated 1 million brisse worst -- bratwurst per year. >> people are spending more money and enjoying themselves more. >> the company even has its own fleet of grows on wheels, to make sure they get everything to the party on time. in a nearby area, they are preparing to welcome a business group for three nights with full board and conference room. like many hotels right now in germany, they often have no
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vacancies. and he was prepared for the upswing. they invested 4.5 million euros in new conference facilities and 100 new beds. this section is almost ready for opening, and other rooms are already fully booked. they are looking forward to the extra capacity. >> the fundamental outlook is good. we have increased sales this year by 19% for several reasons. there is the business visitor, who comes more often because the economy is improving again, and then there are all of the guests to come on budget deals. and, of course, we have completely redesigned the area. >> the big investment has paid off. one busload has just arrived,
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and another 100 guests are expected the following day. >> but despite the economic upturn in germany, most lower- paid workers are not benefiting. a new study from the german institute for economic research says the gap between rich and poor is widening, with lower- paid worker wages shrinking continually. >> the economic slump after the 2008 financial crisis and the bursting of eight -- the dot com bubble was hurtful. wages for low income earners fell by 22%. even middle-income groups saw a slight drop in their earnings. top earners saw wages stay steady. over the past decade, they inched up by 1%. the numbers have a number of german economists for renewing their call for a national
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minimum wage. they say that is the only way to address the widening income gap. >> that is the business from berlin. the weather is coming your way next. stay with us on dw-tv. captioned by the national captioning institute
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