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tv   Journal  KCSMMHZ  August 12, 2011 4:30pm-5:00pm PDT

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>> walked on to the journal "." >> i am here with the business. >> european markets closed higher for a second straight day after country's black day ban on short-selling. as the personal computer turns 30, ibm says the days of the pc are numbered. it has spent a long and bumpy ride on the stock market this week. after days of major losses and extreme volatility, things began to look up again on thursday as the week ended on an upswing. >> in europe, some countries were so alarmed by the wild swing back pay banned short
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selling. >> that is being imposed in italy, belgium, and france, where economic growth is getting to a halt. >> some french stocks plummeted more than 20% in just a few hours in part because of short selling. they banned the short-selling of a mitt -- major stocks including major banks and insurers. >> short-selling as a speculative element that allows you to make a lot of money in a short amount of time off for something that you do not own. this definitely must be controlled. >> italy, spain, and belgium have announced similar controls. >> in some european markets there were rumors. the combination of short selling with rumors could be an abusive and-practice.
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>> stock prices stabilized on friday despite the news that the french economy had not grown at all in the second quarter. france's economy recovered slowly from the economic crisis. economists were surprised when it showed no growth at all between april and june. it is not the kind of news that france wants to hear right now amid speculation about the country ' s credit worthiness and a possible downgrade. >> equities put on a brave face on friday considering the massive swing over the past few weeks. >> the short trading in several eu countries gave a boost to financial shares. on the other hand, investors all think that this ban will not
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prevent markets from falling. they are not allowed to do short selling in paris. investors will do it in london. the market has been able to recover for a second day in a row after 11 straight days of losses. investors hope that there will be better times to come. >> we will have to wait and see about that. stocks are still way lower than they were a few weeks ago. the dax is making gains. wall street is up for a second straight day. the italian government has approved a second austerity program with 45 billion euros to prevent them from sliding further into the european debt
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crisis. there is a solidarity tax on high earners. he said he had to break his promise never to put his pocket in the hands of italians. it is justified by the dramatic situation. there was a 48 billion net euro austerity deal. >> he gathered to discuss the far reaching austerity package. burlesque donate wants to save 30 billion euros this year and more next year. the plan is for the national and local authorities as well as the citizenry to share the pain. the president endorsed the plan. there would be a tax on high earners.
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raising the retirement age for women to 65 this year. hiking the capital gains tax from 12% to 20% and cutting some public holidays to boost productivity and changing the law on firing workers. the state will also reduce its spending, passing on less money to municipal and regional authorities and cutting regional sector pay. >> of course we have to cut politicians' pay as well and lower the associated costs. >> a government tv advertisement calls on people to be honest and pay their taxes. the main problem is not excessive spending by the state, up for tax yields. they have to spend half of their money servicing their huge debt.
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>> increased contracted at an even faster rate as the government cut again. the government shrank by 6.9%. greece is in its third year of recession. this has been hurting consumer spending. athens says that rising exports are hurting the domestic demand. the eu, ecb and imf have approved the portugal rescue funds. in lisbon, they have been checking up on how the country has been using the 78 billion euro payout. the government will get its hands on that funding by next month. a lot of money and a lot of change, big changes. >> british authorities are
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using social networking sites to try to capture those responsible for the looting and rioting over the past few days. the streets of london and the other cities that saw riding are quiet now due to more police on the seats. police are turning their attention to tracking down more suspects. or teenagers have been arrested and prosecuted for the violence. >> there were suspected rioters on giant screens outside of the shops that they looted. they hope that they will recognize the suspects. >> if anybody can see that, tell the police about it. i know i would. >> after the rioting this week, a public outcry has broken out between the government and police chief. david cameron it criticized
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scotland yard's initial response as insufficient. this is the line that he spoke -- stuck to. backed by london's mayor, the chief of police rejects the criticism. >> i have got some of the best commanders in the world. they showed great restraint. as a result of that, we were able to nip this in the blood after a few days. >> police arrested over 1500 people in connection with the riots. the government plans to keep police out in force for days to come to ensure that the calm that returned continues to hold. >> in southwestern china, they have seen a night of rioting. it was sparked by a parking dispute. thousands of people took to the
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streets in a southern province. crowds smashed and burned vehicles and even attacked police officers. the violence erupted after a city official injured a cyclist that had parked her bicycle illegally. chinese towns of frequently see these kinds about breaks. after a brief on rest where angerer is often directed at local officials. a train traveling from warsaw to the southern city has derailed, killing four people and injuring dozens of others. around 280 people were travelling on the train at the time. witnesses say that the train was overcrowded. officials say that the number of casualties may rise further. no official word on the cause of the accident. >> government security forces in serbia have killed 10 people.
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protest marches unfolded around the country. unverified footage showed thousands of people flooding onto the streets. images were sent to show protest in damascus as well as other cities. >> state television's picture of events is one of calm. amateur footage of the internet tells a different story. tens of thousands of people were on the streets calling for the overthrow of assad. the u.s. wants to put pressure on syria to end the brutal crackdown on protesters. >> those countries still biting syrian oil and gas, those that are still sending assad weapons give him comfort in his brutality, to get on the right side of history.
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president assad has lost the legitimacy to lead and it is clear that syria would be better off without him. >> there were talks between lead the egyptian foreign minister and his counterpart. >> we will carefully preview the proposals by secretary of state clinton. at first glance, i can already say there is a great deal of overlap. >> he demanded an immediate end to the violence. he called for negotiations. as the killing continues, international diplomats have stopped short of calling for the removal of president assad. they all agree that syria would be better off without him. >> germany also agreed to roll over 240 million euros of the egyptian debt into development
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aid. the egyptian economy has seen near a zero growth since the jan. revolts. we turned our attention to yemen, where hundreds of thousands of people have demonstrated in cities across the country after friday prayers. they are calling on the president to step down. he said that he would consider transferring power. the protesters say that he should resign now and stay in saudi arabia where he was released from the hospital a week ago. he was treated for wounds he received in an assassination attempt in early june. this saturday marks the 50th anniversary of the building of the berlin wall. nowadays, visitors have to look hard for the barrier that once blighted the city. 136 people died trying to get to the west before the wall was
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torn down in 1989. >> the wall went up just days before gunter made his escape attempt. he was shot dead as he tried to cross a river. he was the first person to die trying to flee east germany. the former german foreign minister and the head of the free democrats jointly commemorated the tragic event. >> we must never forget what lack of freedom can mean. that is the legacy of the peaceful revolution. and the victims of longwall andy death strip. >> the elder statesman played a key role in the reunification of east and west germany. on the eve of the wall ' s 50th anniversary, he recalls the
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importance of freedom at a spot close to where he died. >> there were security flaws in the black very smart phones. attackers can use image files to assault programs that will take control of blackberry devices. they have urged corporate smart phone users to disable it image based content. until now, they have been considered very secure. they have issued a patch to correct this problem. staying in the digital world, 30 years ago, ibm introduced its first personal computer. apple was already on the market. ibm andy dos operating system became the standard. since then, the computing industry has been transformed as the pc is on its way out. it was ibm's clunky machine that
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got the ball rolling in 1981. >> back then, it was the most futuristic technology of all. now looks quaint. the ibm 5150 change the world. in the 1950's, this was a mini computer. it was a pc small enough for a desk or living room. >> it was not technologically perfect, but ibm was a big name. >> ibm developed the personal computer in an amazingly short time, just a few months, buying technology from other companies. myt>> the first pc could only display four colors on its
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screen. in the basic person, it had no sound aside from a simple tone buzzer. >> cheaper versions from competitors copper the market, but they had to be ibm compatible. it took until the end of the 1980's forced ibm to lose its dominance. they did not foresee that the future belongs to little laptops. >> israel is the focus of our indepth.
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>> israel has been dealing with
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weeks of demonstrations that have brought hundreds of thousands of people into the streets. what started as protests about high costs of living has become a movement for social justice. tent cities have sprung top around the country is. they have drawn attention to skyrocketing rent and growing wealth gaps. the demonstrators say that they will not give up and tell the israeli government implements far reaching reforms. >> tent after tent fills the boulevard. she has been here from the start. she is inspired by what people have come to call the israeli spring. >> every day it gets bigger and bigger. it is amazing. everyone has something to say
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and a special way to say it. it is like people just waited for a chance to get out of their houses and create a home. >> it is mainly young, middle- class israelis who are protesting. she studied ballet and is hoping to make get in tel aviv. she lived in this area until recently. it is an expensive neighborhood. rent is high and nearly everywhere in tel aviv and apartments are hard to find. her rent alone chews up 40% of her in, and she has two jobs. >> neither of them i get enough money. i have to run from one place to another. not enough to be at home to make launch ever. it just in order to get enough money for rent.
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not talking about food and savings and everything else. >> he has had this business for years. he understands the young people 's frustration. >> i think we have got the highest rents of all. it was time for something to happen. being a young couple in israel is like suicide. >> the demonstrators want more social equality from the government of netanyahu. they point out that the economy is doing well. >> in israel, we have a lot to be proud of. our economy is one of the fastest-growing economies. unemployment is very low. we have obviously had a problem that we need to address. it is the middle class that is feeling that it has concerns that it is paying too high of
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prices for basic goods. of course, the weaker elements of society. we are talking about rearranging our economic priorities. >> the gap between rich and poor is widening. one out of four israelis at the lives below the poverty line. >> 90% of normal workers do not earn enough to keep their heads above water. and then there are those at the top who have everything. our politicians always address security issues, not social ones. now that we are experiencing a period without war, we should do everything to keep social issues
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in the forefront of people's mines. >> israel spends 52% of the state budget on welfare. some group's profit more than others, like orthodox jews. israel spends 20% of its budget on defense. then there is a huge sum spent on maintaining israeli settlements in the west bank. >> it is so clear on the surface even without saying it, that you either have the right wing agenda at that speaks only they speak only about the territories and the religion. the very normal agenda, which is
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a part of what this protest is all about. >> it does not appear that the protest will be able to swing the fundamental direction of the israeli policy. netanyahu has given a commission of the task of finding a solution. for the protesters, that is not enough. >> i do not believe we can ignore this inspiring thing. he is trying to take action that he knows maybe can make us smaller. it will not work. >> many activists hope that thousands of war will take to the streets. for the moment, it does not appear that major issues like settlement building will be on the agenda. the demonstrators want basic issues like the cost of living addressed first. >> joining us now in our
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parliamentary studios is our middle east analyst. thank you for being with us. economic growth in israel is among the fastest in the world. do you think the middle class to release has same reason to protest? >> i do think that have a reason. it is so hard for members of the middle-class in israel to survive. prices are extremely high for everything, housing, child care, everything. even in the family where the two partners work, it is very hard to get the money you need in order to survive, especially in tel aviv. >> how much of a threat does this pose to netanyahu's government. >> all of the government has now
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started to react. they have some reform. it is a structural problem. it has been a socialist date until the 1980's. they went through a period of economic liberalization. these two trends are still there in the economic economy. that might cause wider structural problems for all israeli government in the coming years. these problems will not be easy to solve. >> what is the government likely to do to address the protester's concerns. >> i do not think there is any way to reasonably addressed these concerns because of budgetary constraints. this is where the whole thing becomes political. the israeli government spends a lot of money on the military. they spend a lot of money on the
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west bank. they spend a lot of money on social benefits for the orthodox and the settlements. this is where all of the money that is needed in israeli cities is going to. what people need are substantially higher and higher salaries. especially in the public sector. i do not think the israeli government is in any position to address these complaints if it does not fundamentally alter its policies with regard to the west bank settlements and so on. >> the middle east analyst in berlin. thank you very much for your assessments. we wrap up the "journal" for this hour. thank you for joining us. have a nice weekend.
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