the eu has followed suit. they are among the toughest sanctions imposed on the islamic republic, and they get hit the economy hard. their real bone of contention is that tehran's nuclear program. international talks on resolving the issue have been frozen. countries in the west hopes sanctions will persuade iran to come back to the negotiating table. that is why the oil embargo does not take effect until july, giving iran a chance to talk with western nations. but there are doubts about the iranian regime's ability to agree on policy. the leadership in tehran has been plagued by in-fighting for many years. >> there are disagreements, some a very serious disputes in the conservative camp about who should succeed after ahmadinejad. he will be leaving office in just over a year. >> the outcome of that power struggle will influence the situation in the gulf in the coming months and years. >> let's bring in our brussels correspondent. europe relies, in part, on these iranian oil imports. can it do without them? >>

the eu has slapped an embargo on iranian oil. members want to cut off funding of two tehran's nuclear program. eu foreign ministers want to pressure iran to comply with u.n. resolutions. >> i want to stress, however, that sanctions are not an end in themselves. i've often talked about this being part of a twin track approach. that the purpose of sanctions is to put pressure on iran to come back to the negotiating table. >> eu countries will stop importing iranian crude and oil products. they'll also freeze the assets of iran's central bank and stop some financial transactions. they say the bank provides funds for the country's nuclear program. the embargo will not be enforced until july. representatives of greece and italy asked for the delay because their countries rely heavily on iranian oil. the eu has gradually escalated economic sanctions against iran over the past six years. the ban on crude oil is the most severe action to date. >>> that's all for this edition of "newsline." i'm catherine kobayashi in tokyo. do stay with u

he says the eu -- imposing economic sanctions is illogical. will not stop iran from exercising its rights. the government yet to announce -- the council made no notable response to western neighbor deployment, through the strait of hormuz sunday. >> leaders of france, germany, britain say they're willing to negotiate, but only if the iranians are ready to talk seriously. they released a joint statement after the eu approved the sanctions. the leaders call on iran to suspend the nuclear development immediately and fully abide by its international obligations. their statement stresses iran is a threat to peace and security in the region. it says they will unite behind strong measures to undermine the iranian regime's ability to fund the nuclear program. the strait of hormuz is the only waterway to the open ocean for many areas around the persian gulf. we have a report. it is still busy, at least for now. >> reporter: the persian gulf was busy with oil tankers from all over the world. they have facilities near the strait of hormuz. iran does huge

is that the problem with this particular eu ruling? is this cash strapped europe trying to raise some revenue? >> i think that's run of the problems, yes -- that is one of the problems, yes. the money raised in the name of the environment -- none of it gets spent on anything that will reduce emissions. it does look like something of a tax grab. we see overlapping taxes in the u.k. a huge air passenger duty. nothing is happening to that in light of this extra tax. this is one of the problems with this emissions trading scheme. it is something that we believe should be resolved in a global way to avoid the overlapping and avoid the discriminatory nature of this. we all need to sit down and sort this out once and for all. >> thank you very much for that. great stuff from you. he joins us from geneva. a quick look at asian markets. financials are mixed. banks, the same old story. big worries there with the eurozone debt crisis. >> interesting interview there. thank you. police in pakistan say a british aid worker has been kidnapped in the

they want to establish and new eu treaty. -- they want to establish a new eu treaty. >> we have to produce a debt ceiling in their national constitutions. >> meaning an end to reckless spending, and how exactly? no one knows. things could get unpleasant for countries with excess debt. >> debts procedures against countries could be launched more easily, almost automatically. >> but who would take support? that is a sore point. some countries including germany wants the eu commission to have more power so it can act independently. the draft treaty says in the country can take another 2 court. >> that does not work. it has never been used in 60 years. so, it is already a firm indication it does not work. >> with the treaty help? >> the most important weakness of the national agreement is there is no solidarity. >> with each country fighting for its interests, there is no happy ending in site. >> well, there is some good news. italy and spain or appear to be emergency cases, but the great -- italy and spain no longer appear to be emergency changes -- emergency cases. one thing is for certain.

. >> eu leaders arrived in belgium. and the run-up to the meeting, it was clear difficulties lie ahead. and then, of course, there is grease. >> we will discuss increase in detail, because the inspectors are still there. and we have nothing concrete for the next program. that is why greece is not on the agenda today. >> not all leaders in brussels share the views of the chancellor. >> we did not expect greece to be the focus of today's talks, but without a doubt, we will have to talk about the. >> the eu and britain have been discussing the final steps of the budget discipline path. leaders were also discussing ways of rekindling growth and job creation. >> it is too high across all of your. -- europe. we will consider how we can better use e measures to help. >> and help is what the european union needs to prevent the slide into recession. >> our correspondent is in brussels following the developments from the summit four us. nina, talks are going on late into the night. any idea why leaders have not reached an agreeme

a deal would open the way for more funds from the imf and the eu. they would also calm market fears of contagion. what ever happens, there's a lot at stake for the banks. >> as of the end of october, commerzbank was carrying 1.4 billion euros in greek sovereign debt on its books. analysts think a further write- down of the greek debt is unavoidable. negotiations to join the greek government and private sector lenders over voluntary writedowns have been stalled for months. at the crisis summit in october, european leaders agreed that banks and insurance companies would have to write down the greek government bonds they hold by 50%. that would relieve greece of some 100 billion euros of debt burden. if the talks fail, default for greece would loom. and it that would mean an even larger hole in, or its bank's capital reserves. >> to last year's last year's biggest banks -- bankruptcy and germany, the maker of printing presses will now be broken up. officials have agreed to its biggest plant going to a conglomerate. two smaller plants said to be restruc

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the eu is iran's second largest oil consumer, behind china. the german parliament has voted to revive the country's domestic bank bailout fund. it was set up after the collapse of lehman brothers to prevent german banks from going under. the reactivated fund will have 480 billion euros at its disposal. germany has one of the strongest economies in europe, but its banks are seen as vulnerable, and some are struggling to meet new european banking authority capital requirements. eads has named new top boss. the parent company of airbus has named a german to take the helm in june. under his direction, airbus had record orders of 1400 airplanes last year. eads is shuffling its supervisory board. jean-claude church it will join the body. >> reports are coming in right now that a german engineer has been kidnapped in nigeria. germany's foreign ministry says it cannot yet confirm the abduction in northern nigeria, a city recently hit by a series of attacks blamed on an islamist sect. president jonathan has called on the group to identify itself and st

many business leaders say economic reform is essential in the eu. it's about re-creating confidence and certainty. and then jobs will come. >> we do a lot, of course, we create jobs in the new conception of things. so a place like this one, for instance, we try to train people. >> in brussels, there may be an agreement on the new fiscal treaty which britain refused to join. the tough budget rules are designed to ensure that the debt crisis can't happen again in the future. without the european parliament, there are those who question the new treaty's work. strict limits on spending, they, may hamper prospects for growth. >> we don't believe this is the solution. this is a simple tool for internal policy reads in germany and in france. you will not restore this if you don't have growth. but you cannot wait for years of austerity to get growth. >> well, there are still some aspects of that fiscal treaty which need to be finalized. discussions will go on this afternoon. but the problem is that even if they come up with a final draft and if it's signed

to get that bailout it must be playing by the eu's rules. that means ramping up austerity measures and proving more accountable for what this country actually spends. some european leaders meeting in brussels this very monday doubt whether greece can do that. investors it seems have similar concerns to the politicians. european uncertainty not with standing, this was already shaping up to be a major week in the markets. economic data from these regions and a hint from facebook show plechbty of movement here on the markets. let's get a gauge of what's going on so far and what we can expect for the next four days. sonya joins me. she's a market expert. give me an idea how the earnings season has gone so far. we've had all sorts of mixed messages. in the united states stellar earnings coming out and on the other hand today disappointing earnings coming out of phillips in the netherlands. how are you seeing things? >> it's very difficult to come up with a general answer because it's very dependent on the individual company because we had actuall

the eu is iran's second-biggest market. iran has threatened to close the straits of hormut if it is disrupted. that is more than 20% of all the oil traded worldwide. our world affairs editor sent this report. >> tankers loaded with oil from the gulf heading towards the narrow point of the straits and the open sea beyond. immediately after the european union's decision to stop buying iran's oil today, some politicians inside iran itself were threatening to block the gulf at this point. we went out on a local -- these waters are vulnerable. this is a it. if the weather were just a bit better, you could see the mountains of iran just over there, only 18 miles away. through this narrow strip of water passes a fifth of all the world's oil supply. iran is attempted to try to cut off this are tree, but no surprise that the western world simply cannot let it happen. yesterday, this ship came through. three weeks ago, iran may be carried out a 10-day drill in an effort to show it could block of these waters if it chose. that might l

eu leaders agree to impose stricter budget discipline, but they're still at adds over greece. european leaders have spent months trying to overcome their problems with debt. now they've agreed on a new treaty to stop overspending. they hope tighter rules will convince investors they'll get their debt under control and they want to shore up confidence in the euro. ai has been watching it. >> the leaders are trying to get can you ever on themselves with how much they spend. the summit yesterday appears to be one step forward. the agreement came at the first summit of the year in brussels, belgium. 25 of the eu's 27 countries agreed to the fiscal compact that would impose almost automatic penalties on members that exceed a 3% debt ceiling. only britain and the czech republic refused to back the new pact. they agreed to launch a permanent bailout fund in july, one year earlier than planned. eu leaders urged greece to continue negotiations private bondholders to restructure its debt. if no deal is reached, greece could default. the proposal was met with strong opposition. >>> switc

control or eu/imf/troika control. they will call it a nicer name. ultimately something like that will happen because otherwise they won't get the money and they will get the money because we know that this is the way to move forward are. >> let's get to the politics in play here. what's your read of how the reaction would be on the ground from local greeks, of course, protesting against measures such as austerity. what would the reaction be if athens did hand over the budget reins? >> reporter: of course there's not going to -- none of this goes down well. we're sitting here in brussels where we have the first general strike in over 20 years because of what? because of austerity measures. because they don't want to raise the age for retirement, et cetera. we have the same problems, maybe not with the same immediacy of pain everywhere else around europe. whenever any country is trying to implement austerity, it doesn't go down well. people will have to give up some things. and that never goes down well and politicians

eu nations are trying to ban imports of crude oil and toughen economic sanctions against iran. they're hoping to reach an agreement in a meeting of foreign ministers on january 23rd. eu source say britain and france are requesting an immediate start to the embargo, but greece, italy and spain want a moratorium. they rely heavily on iranian crude oil and they're worried about hurting their own economies. the sources say eu nations are trying to reach an agreement to impose the embargo on petrochemical products in three months and crude oil in six months. >>> iranian naval commanders have threatened to close the strait of hormuz if the sanctions go through. iran held ten days of naval exercises in the strait and the persian gulf beginning late last month. the narrow passage at the entrance to the gulf is a major sea lane for oil tankers transporting crude from the middle east. iran test-fired newly developed missiles in the strait earlier this month, and it warned u.s. aircraft carriers to stay out of the area. iran announced last friday the islamic revolutionary guards will cond

a rift between the eu and hungary could cost a shift in financial aid. they are shifting policy making authority to the government. end of last month they passed legislation that will remove power from central bank to appoint the deputy governor. the european commission expressed concerns that the country's move will violate eu laws, which uphold the independence of essential bank from its government. >> so we will use all our powers to make sure that hungary come plies with the rules of the european union, and i am confident that we will achieve that. >> eu policy makers are to decide what actions it will take by tuesday next week. >>> u.s. stocks ended slightly higher following favorable bond auctions in italy and spain. for more on how stocks are trading in japan, let's go to ramin mellegard at the tokyo stock exchange. good morning. there are positive developments in the market for the tokyo open, but still some uncertainty about the u.s. economic outlook. >> a bit of a reversal, with markets fearful over developments in the eurozone. then on the oth

germany proposed before the summit opened that greece s surrender control to outside institutions in the eu commission. the proposal was met with strong opposition. from here in japan, we have two economic indications just out this morning. let's start with japan's job market. the unemployment rate worsened in december from the month before. the internal affairs minister says the jobless rate was up 1% from november. the number was 2.75 million unemployme unemployment. people with jobs stood at 62.66 million i don't know. the rate in 2011 was 4.5%. separately, the labor ministry says job availability in december rose for the second consecutive month. there were 71 positions available for every 100 job seekers. the labor ministry says the job market is showing signs of improvement, but it calls for a close watch over the effects of the strong yen on employment. meanwhile, industrial output for december was up for the first time in two months. this marks a 4% rise over the previous month. the ministry of economy, trade and industry said the increase is due mainly to more production of automob

and the czech republic refused to join. >> making a tree outside the eu. obviously, they wanted to do it inside the eu, which is why they are already talking about bringing it back inside the e.u.. we are not industry. we are not part of it. we do not have to ratify it or take it to the british parliament. that is what the vetoes secures. >> this was a victory for germany's chancellor angela merkel, who has been determined that the euro zone countries sign up for balanced budgets. gavin hewitt, bbc news, brussels. >> the fall of syrian president bashir ocelot -- bashar al assad is evident. according to the secretary. violence is only growing. the bbc's bridget kendall reports. >> the sound of gunfire echoing through a residential area. maybe not yet civil war in syria, but the battle has reached the outskirts of damascus. government tanks and other heavy weaponry reasserted control over areas that had been in the hands of the opposition, like this street in one suburb. according to this unverified footage, now littered with debris. the contrast with last w

and the czech republic refused to join. >> outside the eu. obviously, they would prefer to have it inside the eu, which is why they are already trying to talk about bringing it back inside the e.u.. we are not part of it. we are not bound by it. we do not have to ratify it. we do not take it with the british parliament. >> the agreement is a victory for germany's chancellor angela merkel, who has been determined that the euro zone countries sign up to balance budgets. bbc news, brussels. >> well, amid the economic gloom coming out of europe and much of the rest of the world right now, there is another success. africa. their growth is expected to hit 6% this year, and there is oil- rich nigeria. there are claims of widespread corruption. can this west african giant continue to shoulder such a berm approved a report from the commercial capital. >> it is not pretty, but it is booming. welcome to the best comic chaotic part of africa's economic rise. and meet an entrepreneur and a member of the growing middle class. >> the level of infrastructure

that is why the eu decided to target its exports. iran itself has suggested that sanctions will not work. it has also made a threat. it has threatened to closed down the stretch of hormuz, in that direction, the narrow channel for which 20% of the world's oil is traded. the united states and other countries said that any attempts to close down and the strait is unacceptable. >> let's look at the other stories making headlines around world. syria has rejected the latest arab league plan to end the 10- month crisis, saying that the call is a clear violation of syrian sovereignty. the monitoring organization says there has been less of violence since its teams arrived in the country. >> the fact finding events that have happened since march of last year -- we have nothing to do with this. this is not our mission. our mission is to speed up implementation of the elements. if even the political side of what is going on on the ground, we have no prerogatives on this. we restrict ourselves to the five elements of the report and report to th

. >> that makes it more expensive for the efsf to raise money to help bail out troubled eu nations. it follows a similar downgrade friday on a number of euros some countries, including france, that contribute. >> the downgrade comes as the european central bank president, mario draghi, called on investors and regulators to rely less on ratings agencies. addressing a committee of the european parliament, he saw to minimize this latest round of downgrades. >> week as regulators, we should learn to do without ratings. or at least, we should learn to assess creditworthiness in a way in which ratings of credit agencies are one of the many components of our information, rather than expressing regrets or appreciation. i think what we should do is basically learn to either do without them or with them, but to a much more limited extent than we do today. this holds true primarily for regulators, but also for investors and banks. >> french president nicolas sarkozy also downplayed the significance of the ratings agencies. in his first public comments about the downgrade of his country's debt,

the eu's executive body. >>> investors are willing to pay extra money for safe assets. germany sold its short term government bonds at negative yields for the first time. the german central bank said its auction on monday of six month bonds worth 3.9 billion euros drew more buyers than expected. the average yield of minus 0.0122%. a negative yield means germany can borrow money and receive modest interest from investors. germany's solid budget situation makes the country a safe haven for investors as debt worries for italy and other eurozone members shows no signs of easing. european council president has welcomed the euro's decline against other currencies. he said in copenhagen on monday the weak euro will help promote the region's exports. he said the key to resolving the debt problems is to boost economic growth while boosting fiscal discipline of member nations. he said specific measures will be discussed at the eu summit to be held in three weeks. he also expressed hope the eu and japan will soon begin official talks for a free trade deal. initial discussions are

he said the eu, not iran, will lose out. ahmadinejad made his first public remarks about the sanctions in a speech in southern iran. he said iran won't suffer because only about 10% of its oil goes to the eu. other iranian leaders have said the share is closer to 18%. ahmadinejad said tehran is ready to revive talks with six nations over its nuclear program. he made no mention of threats from iranian leaders to close the strait of hormuz. millions of barrels of oil pass through the waterway every day. nato's secretary-general urged iran to keep shipping lanes open. >> i urge the iranian leadership to live up to its international commitment, including stop the enrichment program and ensure free navigation in the strait of hormuz. >> rasmussen said nato leaders have no plans to irpt ven. >>> egyptians are preparing for another day of protests. mass rallies have been called on friday when prayers are held to demand that the military rulers hand over power to a civilian government. the rallies began on wednesday on the first ann

both the eu and united states say her conviction was politically motivated. turkish police have arrested a former head of the military in connection with an alleged plot to destabilize the government. the general is being held after several hours of questioning last night. prosecutors allege that he was part of a plot by the military to fund and internet campaign aimed at discrediting the government have the time the -- the government of the prime minister. several suspects including senior generals and admirals, have already been charged in the case. it is one of the oldest acquires in the world, and no doubt, johann sebastian bach' would be proud he was once director -- it is one of the oldest choirs in the world. this year, it tends 800 years old and is planning a party that will last all year. >> getting every note right can require a lot of effort. >> my father was also in the choir. i thought i could try that, and now i have managed it. >> the selection process is highly competitive. every boy has to pass a tough audition. this year, the choir, along wi

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 are higher due to the weakening yen. the nikkei is currently at 8847, a gain of over 0.66%. market sources say that investors are taking th

. >> reporter: the european union has agreed to ease some sanctions on myanmar and a visit by the eu foreign policy chief catherine ashton could follow as soon as april. myanmar will hold by-elections on april first. prodemocracy leader and her national league for democracy party have registered to take part. ashton says the eu will be closely watching the outcome of the vote. >> in consultation with her, i will visit in april after the elections when i hope we will have had the chance to review what has happened and make decisions at an eu level and our response to what i hope will be continued progress. >> reporter: reforms have been gathering strength in myanmar. the government has released political prisons and signed a cease fire agreement to end the conflict with ethnic rebels. in response eu foreign ministers gathering in brussels on monday agreed to suspend bans on senior officials from myanmar including the president and his vice president. they said further easing of sanctions could follow by the end of april if the reforms continue. relations between myanmar and western na

says unless workers accept major wage cuts, athens may not receive its next round up eight from the eu and imf. the connecticut face in the fall as soon as march without the funding. >> the greek government will need 17 billion euros of eu bailout funds in the month of march alone. but strict conditions have been linked to getting that cash. next week, representatives from the trick of the european commission, the europeans a dropping, and the international monetary fund are due to visit athens to assess whether those conditions, which include spending cuts, are being met. greek prime minister lucas papademos has fallen trade union executives to support moves to cut labor costs, a plea they rejected. >> regarding the national collective labor agreement and the minimum wage of the low-wage workers, we say we're not willing to take a single step back. >> greece has been in recession since 2008, and the eu commission does not expect the greek economy to grow again until 2013, and even then only at a very slow pace. greece has been frozen out of the capital markets since 2010, with private

he said the eu, not iran, will lose out. he made his first public remarks about the sanctions in a speech in southern iran. he said iran won't suffer because only about 10% of its oil goes to the eu. other iranian leaders have said the share is closer to 18%. he said tehran is ready to revive talks with six nations over its nuclear program. he made no mention of threats from iranian leaders to close the strait of hormuz. millions of barrels of oil pass through the water way every day. nato secretary general urged iran to keep shipping lanes open. >> i urge the iranian leadership to live up to its international commitments including stop the enrichment program and ensure free navigation in the strait of hormuz. >> he said nato leaders have no plans to intervene. >>> the united states says it will downsize its army while maintaining or boosting troop levels in the asia pacific region to counter china's military buildup. >> it's something that obviously will cause some pain, but at the same time we recognize that defense has to

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the eu is iran's second-biggest market, and iran has threatened to close the strait if shipments are disruptive. this is an important gateway with almost 17 million barrels since 2011. that is nearly 20% of all the oil traded worldwide. >> tankers and laden with oil from the gulf heading today towards the narrow point of the street and the open sea beyond. immediately after the eu decision to stop buying iran's will today, some politicians inside iran were threatening to block the gulf of this point. we went out from the port and found these waters are vulnerable. if the weather were a bit better, you could see the mountains of iran and just over there. it is only 18 miles away, yet through this narrow strip of water passes the fifth of all the world's oil supplies. it is not surprising iran has attempted to try to cut off this artery but no surprise either the western world cannot let it happen. yesterday this ship the uss abraham lincoln, which can embarq as many as 90 aircraft, came through the strait. three weeks ago, iran's navy carried out a 10-day drill in an effort to show it

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 third has survived. the former egyptian president is accused of ordering the killing of an armed protesters in last year's uprising. the radical muslim cleric has won the case not to be deported to jordan to face charges. there is a real risk that evidence obtained by torture will be used against him. a radar early-warning stationed over the miss

the imf said last week from washington that they will not do anything without eu approval. the hon gary and government -- the hungarian government has to convince the eu and somehow win back its credibility within the eu. >> it does seem as though some sort of resolution will be found. >> thank you very much for the update. >> thank you. the five remaining contenders from the republicans to face president obama have squared off in south carolina. there were repeated attacks on the favorite, mitt romney, who has the trees in iowa and new hampshire. he still holds a healthy lead in the polls. from washington, here is steve kingstone. >> then there were five. mitt romney wins again on saturday and the republican race will be all but over. his rivals attacked him here on deficit reform. >> mitt romney's plan is not bold. we have deficits now in social security and medicare. he wants to say we will not touch anyone now. >> and on his reluctance to release tax returns. >> we need for you to release your income taxes, so people of this country can see how you make your money. i th

before the euro, that would have been risky. >> that is from the heart of the eu in brussels. we saw in that report, german exporters have no reason to mourn the deutsche mark. is that true in brussels? >> it depends on who you talk to. there are people who feel this problem has gone far too long and are worried about currency stability. a lot of people would like to get back to their national currencies. if you talk to people behind the eurozone, and they will tell you nothing could be further from the truth. the eurozone is a zone of stability. it did not create the economic crisis. furthermore it is helping to maintain stability. unless you are an economic wizard, it is hard to pick between those two years. some are worried about the collapse of the row and the fact that yes, we may be looking at going back to one or other of the national currencies. >> and what would be the euro's greatest accomplishment in the last 10 years? >> remember, it is now just an economic concept. it is a political one, too. it has brought a at a unity to europe, according to some. that was the a

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 i

the eu ministers made thinker decision at a meeting in brussels. their sanctions came in line with similar measures approved last month in the united states. thoept to cut off the main source of revenue for the government. the eu is the second largest importer of iranian oil. it kits for nearly 20% of the oil. sources say the ministers are focussing on how iran will react to the decision including the possible closure of the strait of hormuz. for more insight into the potential effects of the embargo, we spoke with an expert. >> it is possible that the value of the iranian currency, iranian real as opposed to dollar or euro will go down more causing confusion in the iranian economy. regarding oil, although iran will try to find alternative destinations for its crude oil, the oil export income of iran will probably decrease because it won't be easy to redirect the whole 20% of its oil exports to other countries when the u.s. has been putting a strong pressure not to buy iranian oil to its potential customers. neither iran nor the united states hope

they discussed europe's debt problems in berlin monday, ahead of an eu summit later this month. they expressed optimism about a new treaty for tighter budget discipline that all eu nations except britain are aiming for. mer can he said talks are under way among the countries concerned. sarkozy noted the pact will likely be signed by march 1st. >> translator: we agreed the current priority issues are to boost the regional economy, unemployment, and competitive tanding. >> sarkozy's kmept comes as debt woes are effecting the economy. two leaders plan to draft measures and submit to the european commission. the eu's executive body. >>> germany sold short term government bonds at negative yields for the first time as investors were willing to pay extra money for the safe asset. the german central bank said its auction monday of six month bonds worth 3.9 billion euros drew more buyers than expected. the average yield was minus 0.122%. a negative yield means germany can borrow money and receive modest interest from investors. germany's solid budget situation makes the country a safe h

the eu is considering the same path. the talks may be on the way. iranian media says the negotiator will write to the head of eu foreign policy to say tehran is ready for fresh negotiations on its nuclear program. after the last missiles are tested today, leaders will be watching this region closely in 2012. emily buchanan, bbc news. >> let's talk to the persian television special correspondent now. this needs to be seen in the context of president obama's the decision over the weekend. what message do you think iran is sending? >> the message is very clearly. he is escalating sanctions against it and that will sooner or later be taken as an act of war against iran. >> how much is iran itself suffering as a result of the sanctions already in place? >> the sanctions are crippling iran's trade with the outside world already. the sanctions president obama imposed on new year's eve will it iran even harder. it is targeting the central bank of iran. that means that the trade with the outside world will be crippled. part of that will be iran's oil exports

finland, the eu is a threat to our sovereignty. now we see these countries pulling their resources. >> we are going to have to end that bit of our discussion. time for our high notes and the low notes. >> my i know it is our colleague connie, who will go on new year's day and found out she had a letter from queen elizabeth. she got the new zealand order of merit for her work in helping new zealand earthquake victims. and many other things she had done in our broadcasting career. >> congratulations. we are all very excited about it. she is not in good health these days, and we are glad for her. adam clayton powell? >> an unlikely i know, the return of silent films. "the partisan." >> wayne madsen? >> the captain of the costa concordia who said he accidentally fell into the lifeboat. reminds me of the original titanic movie where he dressed up as a woman to get into a lifeboat. >> tim folly? >> this goes back to those marines that were investigated for urinating on the corpses. what bothers me is nobody has been taken to task for wha

german martin schulz is elected the eu parliament's new president. he is promising to make his voice heard. germany's governing coalition is divided over future subsidies for solar energy. ♪ >> five more bodies had been recovered from the wreckage of the italian cruise ship, bringing the death toll to 11. the italian coast guards said they were all adults and believed to be passengers, not crew. meanwhile, shocking audio has now emerged in which the ship's captain is heard making excuses for leaving the rescue effort. francisco schettino is currently in jail, facing charges of manslaughter and abandoning ship. >> rescue teams were achieved the bodies from the stern of the cruise ship costa concordia that lies on the side just off the island of giglio. the ship is in about 20 meters of water, but salvage experts are worried it could slip into deeper water if the seas get rough. earlier on tuesday, navy divers used to expect -- used explosives to get better access to the interior of the ship. these cameras convey images to the rescue coordinators. no