BBC news 2011-08-05
BBC News with Gaenor Howells
Stock markets in Europe and the United States have fallen sharply with concern that the eurozone debt crisis could spread to Italy and Spain. The falls came despite interventions by policymakers aimed at restoring calm. The markets in London, Paris and Frankfurt were all down by more than 3%. In the United States, the Dow has closed down 4%. Caroline Hepker reports from New York.
Disastrous was the way one trader on the floor of the New York Stock Exchange described the drop in US shares on Thursday. The reason for the stock market rout is a combination of fears over the sovereign debt crisis in Europe and growing concern about the US recovery. There has been a string of worrying economic data in America in recent days: economic growth slowed to a trickle this year; consumer spending fell in June, and both the manufacturing and the service sector are sluggish.
A court in France has approved an investigation into allegations that the new head of the International Monetary Fund, Christine Lagarde, abused her position when she was the French finance minister. The case centres on a $400m compensation payment to a businessman. From Paris, here's Christian Fraser.
In 2008, just months into the job as the first female finance minister of France, Christine Lagarde used her powers to bring to an end a court battle that had run for years. Bernard Tapie, a wealthy businessman and controversial figure here in France, had accused the former state-owned bank Credit Lyonnais of mishandling the sale of his share in the sportswear manufacturer Adidas. Prosecutors allege she went beyond her powers, complicit, they said, in the embezzlement of public funds. Ms Lagarde has always denied any wrongdoing or any suggestion she profited personally.
Syrian activists say the city of Hama is suffering severe food and medical shortages after five days of being besieged by government forces. The activists say 30 people were killed on Wednesday when troops backed by tanks retook control of the city centre. Jim Muir reports from neighbouring Lebanon.
Despite the army assault, Hama remains defiant with protests like this breaking out after nighttime prayers for the fasting month of Ramadan. In addition to water and electricity being cut off, the blackout on virtually all communication with Hama has meant that very little is known about the storming of the city by troops and tanks, and the number of casualties involved. In the meantime, residents speak of regime militia shooting at anything that moves in the streets, and they say they are having to bury their dead in gardens and public parks for fear of venturing to cemeteries.
The government of Libya says it now fully controls the western frontline town of Zlitan. On Wednesday, government troops announced a major offensive against rebels in the town, but foreign journalists who've been driven there by officials say there's no sign of the insurgents.
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The Israeli government has given final approval for more than 900 new homes in occupied East Jerusalem. The move to build houses for Jewish families in the settlement of Har Homa has been criticised by peace groups as cynical. They say it'll cut off the Palestinian town of Bethlehem from Arab areas of East Jerusalem, but the government says it'll help address Israel's housing shortage.
The United Nations says it'll take at least 25 years to clear up pollution from oil operations in the Ogoniland region of Nigeria. A report by the UN Environment Programme said oil spills had contaminated land, sea and air to such an extent that it seriously threatened public health in some areas. A spokesman for the UNEP, Nick Nuttall, told the BBC about the scale of the problem.
"The United Nations Environment Programme over 14 months has toured the length and breadth of Ogoniland to assess the oil pollution. It is serious. It has gone much further and much deeper into the land than previously had been supposed. It's going to take at least 25 years to restore the health of Ogoniland back to pre-oil days."
Riot police in the Chilean capital Santiago have used tear gas and water cannon to break up protests by students. More than 100 people were detained as they tried to march to the city centre. Chile has endured weeks of protests by students and teachers demanding education reforms. They've called for fundamental reform and increased investment in the public education system. President Sebastian Pinera has offered extra funding.
Scientists have found what they believe may be the first evidence of flowing water on Mars. Nasa researchers say images taken by one of their spacecraft show clusters of dark lines on some slopes of the planet. These markings disappear in the winter. The scientists say their best explanation for this is the flow of salty water, possibly underground, although they say the findings don't provide direct evidence of water on Mars.
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