>> hello, and welcome to the "journal" on dw-tv. i am brian thomas. >> i am steve chaid with your business update. >> headlines, the crisis back on the agenda as angela merkel and nicocolas sarkozy hold their first meeting of the year. germany promises extra financial support for tunisia's road to a democracy. >> scandal in switzerland, the head of the country's national bank is stepping down. ♪ >> a new year, a new conference to save the euro. the leaders of france and germany have been meeting in

berlin to discuss ways of bolstering the common currency. they have reaffirmed their commitment to keeping the eurozone in tact and dismissed suggestions that greece can solve its debt crisis faster by returning to the drachma. progress towards a new tax on financial transactions. >> angela merkel and nicolas sarkozy get together to discuss the year a debt crisis so regularly that they have become experts at demonstrating confidence and unity. in berlin on monday, the french leader even agreed with the german hosts in her own tongue. one thing they really do agree on is the need for a transaction tax on stocks and currency dealing in the european union. sarkozy even suggested the possibility of prince going -- of france going it alone. he called the tax a timely and necessary solution and said it should be introduced soon. if the eurozone does not move fast enough, france wouldld go

ahead and set an example angela merkel andnd sarkozy were in agagreemt the private sector bond holders must s sharen reducing gris''s debt burden and urged athens to do more. >> in our opion, the second greek rescue package, including the restructuring, must be implemented quickly. otherwise, it will not be possible to pay out the next charge to greece. >> the nt eu summit is scheduled for the end of january. once again, germany and france will be going into the talks united on key issues. >> so does germany's new support for a financial trends action attacks mean that berlin has come around to the french view on this issue? -- for a financial transaction tax mean the berlin has come around to the french view on >> no, it is not. germany has strongly supported the financial transaction tax for quite some time but germany has been doing this within the

g-20 forum, for example, pushing this already for well over a year. whatat gerny wants to see is a financial transaction tax introduced on the world, basically, introduced at a global level. if that is not possible or not within the g-20, then germany would like to see it introduced europe-wide, ideally with in all 27 countries in the european union. it that is not possible, the chancellor said she, herself, personally supports and reducing it within the eurozone countries. she made clear that was her personal position, the government does not necessarily share the, particularly the free democrats who are typically pro- business. >> to iraq now, where officials say at least 18 people were killed in three bombings in and near the capital baghdad on monday. wave of violence that has mnly a targeted shia muslims. 16 people died when two crumbs exploded in baghdad monday

evening. earlier in the day, a roadside bomb killed two shia pilgrims who were walking to the holy city of karbala. thousands of portia are now on the right to that city under heavy security for the final day of mourning for imam hussein. the accord in iran has condemned an american citizen to death for espionage. prosecutors accused him of spying for the cia and endangering the lives of variety and civilians. the u.s. state department has condemned the decision and demanded his release. the former u.s. marine's family in the u.s. says he was visiting his grandparents in december. iranian tv broadcast a confession. his friends say it was forced, a charge denied by tehran. in tunis, the german foreign minister has praised the model for north africa. he also pledged 32 million euros towards the establishment of

democratic institutions in tunisia over the next two years. funds have been earmarked for projects to improve governments, trained journalists, and modernize education centers. >> germany is looking to bolster positive developments in tunisia since the arab spring. >> now that tunisia has plotted a course towards freedom and plurality, it will be a country that germany will invest in with more power and intensity. that is good for both countries. >> tunisia suffered economic losses of 1.5 billion euros as a result of the revolution but that was due to lost production or looting. gdp has been stagnating, and tunisians lack confidence. after talks with the prime minister and the tunisian foreign minister, the message was clear, german help is welcome. >> we have clearly stated to the

foreign minister that tunisia is open for new investment. as well as closer economic ties in areas like education and health care. >> the two countries are taking the first step in cementing this relationship. berlin has pledged 32 million euros towards the setting up of democratic institutions and improving education, an investment in tunisia's future. >> now to steve with the story of the fall from power from one of switzerland's top bankers. what did his wife know w and en did she know it? >> the head of the swiss national bank -- bank philip hildebrand, has been brought down, anand inlves highly controversial and profitable currency exchange deals carried out by his wife. the trades were made just before and just after he took steps to weaken the swiss franc. while he denies providing his

wife with inside information, he acknowledged that he cannot prove his innocence and has reside with immediate effect. >> in the end, philip hildebrand bowed to bring pressure. he joined the central bank it thousand three and became president two years ago. but, recently, he made headlines due to his wife's currency transactions. she runs an art gallery in zurich. in mid-august, the former currency trader purchased over half a million u.s. dollars. she profited handsomely after the swiss national bank intervened to lower the value of the franco a short time later. >> after thoroughly checking the documentation and careful consideration since the press conference, i have come to the conclusion that it is not possible to provide conclusive evidence that my wife initiated the foreign currency transaction on august 15 without my knowledge.

>> lastly, philip hildebrand admitted to making some moral mistakes but refused to step down, saying he had not broken any laws. the swiss national bank says it will hire an outside firm to check whether its managers engaged in insider trading. >> german exports have defied forecasts by rebounding in november from a sharp decline the previous month. government data shows exports rose 2.5% from october, providing a well-timed show of strength in europe's biggest economy. german of forms wreck the before and receipts of some 95 billion euros with well over half of all exports going to other eu countries. imports were also of year-on- year, but not enough to stop germany's trade surplus from growing to an impressive 15 billion a year rose in november. on to the market's, european shares fell slightly on monday, trimming by blue chips over the past three weeks.

stefan wolff sentenced this summer from the frankfurt stock exchange. >> the betetter than it expected export data has not been able to give a boost to german shares after industry production has been reported, an investor protection in germany went down. the dax also went down into negative territory, driven also down, of course, by concerns about the european debt crisis. in between this week, spain and italy will issue new bonds. this, of course, gives much uncertainty here for traders, because investors are still fearing that the debt crisis may even weaken in shares further on. >> stefan wolff in frankfurt, where we can stay for a closer look in monday's numbers. germany's blue-chip dax ended the session down by about two- thirds of 1%. euro stoxx 50 closing 0.5% lower. on wall street, the dowel in

late trading, up by about 0.5%. on the currency markets, the euro currently trading at $1.2760. the detroit auto show is getting under way in motown this monday, and while many firms are hoping to stage a comeback, a german car makers will be looking to build on their astounding success. vw alone sold over 8 million vehicles last year, the most in its history thanks to strong demand in the united states and china. suv's remain in high demand in north america, and german engineering continues to attract buyers. >> the new bmw vehicle unveiled in in detroit is proof that the market for suv's is alive and well. just a few years ago, observers were predicting this sector is demise, saying there are too big and wasted too much fuel. but there is a hybrid version also on display at the show, and

carmakers accept that the trend in the coming years will be toward mimni suv's. >> use it higher up, so you feel safer. that is what customers want. they're easy to get into, they drive well. you have a good view. they have been successful in europe, and we expect even more success in china. >> compact suv's are sportier and offer all the advantages of station wagons but with a martyr in the design. when it comes to fuel efficiency, potential buyers needn't have a guilty conscience. >> if you look at the specifications for the diesel version or for the diesel engine, they correspond to the efficiency standards that midsized family cars used to have. >> americans remain fond of four-wheel vehicles with a higher right. just under 6 million suv's corso last year, slightly more than the number of cars. >> that is your business update. >> in germany, a corps dancer

closing arguments and the trial of the self-described jihadist to shut two american servicemen and wounded two others at frankfurt airport. the armin were on route to afghanistan the prosecutors are calling for a life sentence for the 21-year-old due to the brutality. the victims were shot in point- blank range. >> the defendant, identified only as arid yu, is accused of carrying out the first at the islamistst attks in the country. on march two last year, he allegedly opened fire on a group of u.s. soldiers at frankfurt airport. two were killed and another two seriously wounded. prosecutors said their many trips escaped only because the man used a pistol that jammed. prosecutors say the man from cozumel active in cold blood. they believe he should remain behind bars for longer than the usual 15-year maximum sentence. >> the federal prosecutor's office is called for a life sentence for the defendant.

given the severity of the crime, a release after 15 years should be ruled out. >> he confessed to the charges before the case went to trial. prosecutors believe he was influenced by islamist propaganda videos on the internet. his defender says he was never a radical islamist and acted on an impulse that he now does not understand and regrets. sentencing is expected on january 19. >> a warning has gone out to german consumers that major supermarket goods are stocking chicken often contaminated with bacteria resistant to antibiotics. according to a spot check by friends of the earth to germany, the overuse of antibiotics in farming poses a danger to human health. the group said that although the test is only a snapshot of the situation right now, cononsume should avoid industrially produced poultry as a precaution. >> 11 out of 20 samples of

poultry products from the supermarket tested positive for antibiotic resistant bacteria. the researchers say it definite risks for consumers. >> the danger is that affected chickens are processed in such a way that they themselves transmit the antibiotic resistant bacteria. >> the laboratory found mrsa bacteria it the palter products. these microbes can lead to respiratory and went infections. on top of the content sybil's contained in testable bacteria which can cause life- threatening illnesses. more resistant bacteria are appearing. experts point to antibiotics in animal feed. and have to be treated withickk antibiotics. then resistance can develop spontaneously. >> all of the affected products came from two of germany's

biggest poultry producers, but they would give no reformation on just what quantity of antibiotics are used. the country's agriculture minister has said she would look at changing the german medicine block. the move could restrict the use of antibiotics in animals. >> authorities in new zealander warning about a possible health risk on the post -- coast of north island. debris of the stricken to tenor washes ashore to the vessel broke up in a storm over the weekend, and containers fell into the sea. >> normally beaches along the bay of plenty are among new zealand's most plentiful but these days, there strewn with debris from the stricken ship, including hundreds of sex of milk powder. some people have been coming the beaches for items of value, but authorities say that is dangerous, as some containers held toxic chemicals. dozens of contenders are still aboard the ship which ran aground on a reef in october.

there is also more fuel on board. the rough weather has made selvage difficult. >> the weather is obviously against us at this point, and will be for the next few days. it is a very dynamic situation. >> the ship broke up over the weekend, and experts worry that threar section could sink and release more fuel into the sea. >> is sports item, u.s. president barack obama has joined top basketball officials in welcoming nba chahampio dalls mavericks' and their german-born captain, dirk novisky into the white house. he is only does the european player ever to be named most valuable player of the nba. he made the president a team jersey, but he cannot win over obama as a fan. the president remains a supporter of the chicago bulls. i will be right back in one minute. germany and france are continuing their push to end the

eurozone debt crisis. have they made any progress? we will be looking at that in one minute. stay with us. ♪ ♪ ♪

>> thank you so much for staying with us. has the leadership of the eurozone effectively been handed to paris and berlin? as those two nations forge policies little or no input from weaker members of the currency union. those certainly were some of the concerns on the eurozone periphery as german chancellor angela merkel and french president nicolas sarkozy met for talks here in berlin. but others are applauding the deal, strong leadership is essential to end the eurozone debt crisis, especially with bond market's excess -- injecting ever higher rates for a debt-ridden countries. as they draw closer politically, the two have been subject to increasing scrutiny and some lampooning as well. ♪

>> madam merkel -- [speaking foreign language] >> [speaking foreign language] >> only two of the high tablelen the roles of the diluted old lady in her darkened butler in an internet spoof of one of germany's favorite comedy sketches. here, it is not the aristocratic dinner guests missing. it is the other eu leaders. in real life, is seen sense of merkel and nicolas sarkozy want to be seen as the first couple in europe. their alliance has been ironically doug merkozy. since the start of the european credit crunch, they have portrayed themselves as the crisis-busting team. commentators in brussels are not so sure.

>> they are the duo from hell. they force everyone to pay a double-play by their rules. it is german-french leadership. >> and engine. if the engine is that it has been in many cases, if the engine is a franco-german, it is fine. >> and since merkozy has been in the driving seat, any decision making has tended to follow the same course. germany and france find agreement, tn threst ofhe euas t flo along, whether at hdh rescue baiut nd an sarkozy feed each heth this room.

ro hmoouo teeto

enea. an imabe reacmo qck, . eyeeerasrttsf re

ghi ewothesgogo wlnd

to brgio wh h me an io talys bn ebo bum so tyitat a consensus. eyral, and they are now really forced to work together. wh today in berlin is that they' tgi

an impression that they want to work as a tandem. >>ma countries fear that this german-franco alliance hash they will be confrontedy ne al are thesetied >> well,there is -- some of thes at eopn uon needs leadership at this time. desperately needsbut when france the lead, of course there is e risk that smaller countries will be overrun. i bel berlin and that very well, and we have seen, over theas nt a years, that something, even like a new president race, is becoming a very dangerous twist t debate. e germany dominating europe, dominating europe? this is a development in discourse thatims things for those leaeaders. mashem again and again tried to bring others on board while atheamti delivering to

the need of leadership. >> it looksik ce ou our some countries is developing, those movingasr an others. is this a worrying development? >>el i think, indeed. what we're seeing at the moment is thatheurea cntes are deciding we have to move ahd and have stng onicni. at might lead to a group of countries the pbably 17 plus or minus, and then there is a ring of other countries. some people might say this is the only way for the european union, urncunno survive. others might argue this is actually a dangerousevopnt cae it will split the union. adding it is a very fine balance, but what is very clear is that something needs to be done, and this is what merkel and sarkozy are trying to push. they try to bngnths well. we see mario monti is coming th wks ll. the efforts to rescue the euzo ctie in 2012.

>> thank you so very much. and thank you for joining us. and see you aga iou next hour. ♪ captioned by the national captioning institute --www.icap.org-- ♪ ♪