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Litigation gear against volkswagen. A 20 million lawsuit against the carmaker for cheating on a mission statement. And a soccer legend lands the games toughest job, real madrid s manager. The spanish giant fired Rafael Benitez. It is good to have you with us. Inside the middle east tonight and that the divisions between sunni and shiite forces quickly turning political and dangerous in ways the region has not seen in two generations. The world is worried. On monday saudi arabias gulf neighbors sided with them and cut ties with iran. The United States is urging both sides to urg show restraint. This has ignited violent contests protests. Thousands of people demonstrated new the Saudi Embassy to protest the execution of the outspoken shiite cleric. Saudi arabia cut off diplomatic relations with iran over the weekend. Later, announcing other drastic measures against the predominantly shia muslim state. Irans Vice President appeared to take this in stride. I have advised the saudis to tak stop these acts of sabotage that are the result of mismanagement. The saudis will be the one who suffer from severing relations with iran. Earlier, the Saudi Foreign minister justified his governments move to isolate tehran. We are determined not to allow iran to undermined our security. We are determined not to let it run iran immobilize, or create, or establish terrorist cells in our country or the countries of our allies. Bahrain has followed the saudis example. The longstanding rivalry between the saudi kingdom and iran has intensified, with both countries fighting for greater influence in the islamic world, while engaged in proxy wars in syria and yemen. The situation has escalated with the execution of the cleric. As a credit of the sunni kingdom calle he called for protests against the saudis. He was put to death for inciting terrorism, along with 46 other prisoners. Brent lets pull in our correspondent. She joins us via skype. She is on the story for us. The evening to you. Good evening to you. How much is at stake for iran in this conflict . The conflict is an old conflict, like you said before. It is now the world is seeing escalation, and it is getting more obvious. The conflict was always there, some 36 years. Iran now plays a new rul ole. They were a big and i enemy of the u. S. , and now they want to play a very good impression of themselves. This is opposite to saudi arabia, which seems aggressive lik right now. Brent for the rest of the world that is watching this story, and one of people are asking how much of this is a religious divide among muslims . And how much of this is power politics tonight . Is the religious component in this divide of any meaning . It has a religious route, but the main point is the hegemony in this region. The fights that is going on for a long time. We see this as a proxy wars that are going on in yemen and syria. This ongoing fight is about power, it is about oil, it is about the hegemony in this region. Brent our correspondent natalie, in tehran on the story for us. Thank you. We are going to switch gears and go to business news. Happy new year to you. It is not a happy year for volkswagen, especially in the legal department. They have quite a lot of trouble ahead of them. 2016 sounds like it will get even worse. The u. S. Authorities are suing. Can over the diesel emission scandal volkswagen over the diesel emission scandal. It could cost them 20 million dollars. It first broke in california, when they admitted or teen times over the permitted levels of greenhouse gases. Criminal charges could also be filed. Jose is on wall street for us. Lets start off with what this actually means. 20 billion sounds like a lot to us. Is it a lot to a joint in the car sector . Giant in the car sector . It is a huge amount of money. This is the worst legal s lap in the faith from the regulatory face from the regulators to volkswagen. Also, we cannot ignore that there is still the possibility of a criminal lawsuit from the department of justice in the next couple of months. And on top of that, we cannot ignore those class action lawsuits from the u. S. Customers that could mean much more trouble ahead or books like him. Wer for full flagon. Full vw. Will the customers be satisfied by . This . I do not think so. We will have to see the sales of old swa vw. The numbers are still mixed. It seems that the u. S. Consumers are not very happy with what has been done until now. We will see much more trouble ahead, and maybe we will see sales going down in the next couple months for this german company. We will be getting back to you in a moment. First, another rough start for equities. New Economic Data shows the chinese economy slowing faster than forecast. The 10th month in a row in december, and the decline celebrating. That triggered big selloff at home and abroad. One of the measures triggered an early closure to trading on monday. Stalks around the globe started the new year in a freefall, and it could have been much worse if not for a brandnew Circuit Breaker that put a stop to the loss in china early on monday. Trading was halted after shares plunged 7 . The Circuit Breaker mechanism will protect Retail Investors by giving us more time to curb potential risks. While ordinary investors in china might feel reassured, those elsewhere were jittery. The dax dropped 4 . The economy is sensitive to the changes in china. The first day of trading did not open brightly. We had extremely weak numbers from the chinese market, where Economic Data do not turn out the way we expected. The mood was no better in the United States, on wall street will stock over the first day of trading in the new year with the same extreme losses. At times they were down more than 400 points. For more on the reaction in new york, we go to losjose. How much are these developments spooking wall street . Quite a bit. We have seen the worst opening for the dow jones since 1932. We can see u. S. Investors feel a little bit anxious, especially after we closed with the dow jones in negative territory. There is a concern how this year will develop. We have to take into consideration it is a very important year for u. S. Equities. It is a president ial election year. We are also following closely how the fed will continue to increase rates. For right now theres a lot of anxiety, and investors are questioning themselves if this is a heck of or the new normal hiccup or the new normal . On that point, will we see more water torture from the chinese, slow dripping . That is the question then, and the imf said today that if the chinese Growth Continues to disappoint in the next months, we could see more spooking for the Global Financial markets. Also, we have seen some recovery on the service sector. We have to take into consideration that the one has los yuan has lost value compared to the dollar since july. This is downward economic pressure, and there is a lot of trouble in the next couple of months. A lot of uncertainty. Thank you. More news now with brent. Brent we have some breaking news coming in from the u. S. Over guns. U. S. President barack obama is promising to roll out a series of gun control initiatives over the next few days. The announcement came after he met with the u. S. Attorney general, the director of the fbi, and other top Law Enforcement officials. President obama saying that he is confident that the initiatives will be consistent with the Constitutional Rights to bear arms, and will help save lives. Lets go to washington now, where richard is covering this breaking news for us. Good afternoon to you, richard. What is obama doing here . He is using executive power, right . That is right. Obama just speaking within the past hour, echoing the comments he has been making after these Mass Shootings in the u. S. It is not good enough to just sit back and accept the deaths from Mass Shootings and more everyday violence. This is not normal, and if congress is not prepared to act, then it is up to him to try and do what he can, using his executive authority. We do not know what he is planning yet, he has not spelled that out. But we are hearing is it will be quite minor steps. For instance, changing the language defining what is a gun seller, and affecting the type of gun sellers that have to impose background checks. Also forcing gun sellers to report a gun if it goes missing. President obama wants to take the steps that he can. Brent thank you. Youre watching dw news, live from berlin. Still to come from it is the top ughest job in soccer. Zinedine zidane is the new manager for real madrid. All that and more coming up. His stay with us. Please stay with us. Brent welcome back. The International Community is calling for calm as tensions in the islamic world escalate. Saudi arabia, bahrain and sudan have cut ties with iran. This comes after their execution of a leading shiite cleric. The United States is suing german carmaker vw for cheating on emissions data. They are seeking over 20 billion in penalties. Here in europe, denmark has interposed temporary controls along with order with germany to stem the flow of migrants. The Prime Minister of the country saying that police will be conducting spot checks, and that the measures will initially be in place for 10 days. This comes after they reimposed border checks following a huge influx of migrants in recent months. Most migrants to sweden have been arriving being a rail link. But as of this monday, people are being checked before they are allowed to board the train. That is a huge difference. Officials are checking passports of people traveling from denmark to sweden. Those without valid travel documents are not allowed to cross. Sweden aims to register all asylumseekers and deny entry to those not entitled to refugee status. Just after sweden imposed the id checks, denmarks president and out similar controls. This is a step backwards, but i need to be responsive to what is going on this day in the copenhagen area. The danes worry that those turned away by sweden will simply stay in denmark. Hence, the new controls. The resulting delays are causing headaches or thousands of commuters who travel between copenhagen and the swedish border every day. I have to plan an extra hour each way, that is two additional hours every day. Travel documents are now also being checked on the fairies between denmark and sweden. Ferries between denmark and sweden. Brent lets go to the epicenter of this event. Our correspondent is in sweden. Sweden is known as being one of the most welcoming countries in europe for refugees. Is that about to change, is that changing right now . You are right, that we would like to think of ourselves as one of the world humanitarian great powers. But that is dramatically changing. We have gone from the swedish government saying in september that europe welcomes refugees. Two, where the same Prime Minister imposed border controls. It is dramatically changing, not just in theory and rhetoric, it is changing in practice. Brent of course, this comes because a lot of refugees have been caught by authorities, and they have invalid forms of identification. What is the general reaction in sweden about these changes . Too many support the new border controls . Quite a few people say that the border controls are necessary, even though they do not like them. I would say the vast majority in sweden are against the border controls, and these measures. They do not let these border controls once these border controls here down south. A lot of locals are very annoyed and very year attended by these measures ar. They have started a facebook protest, or the 20,000 people have signed up. They want the government to change these provisions. Brent what does this mean for the refugees who are actually in sweden right now . It is a very difficult situation for a lot of refugees coming to sweden, and the people in sweden. For those coming to sweden, it is a difficult situation because last year we had 40 of all of the refugees coming to sweden who had cracked identification correct identification. Brent our correspondent in sweden, thank you very much. Now to some of the other stories that are making headlines around the world. Here in germany, eight 23yearold Asylum Seeker was injured when unknown assailants fired shots at a refugee center. 43 people were there at the time of the shooting. The European Commission says that it will soon examine a new polish law that critics say give the government to much power over critics. It is a process that could suspend the Voting Rights in the eu. At least one person has been killed and 13 injured in a powerful truck bombing near Kabul International airport. It coincides with other violence in the country, including a deadly siege in the city. To soccer news. We have some breaking news from spanish powerhouse real madrid. The club has hired its coach. Thi fired its coach, Rafael Benitez just seven months after hiring him. The new coach will be the soccer star Zinedine Zidane. He called real the best club in the world. Benitez was fired just after seven months, and one of his losses was a embarrassing defeat here at home. Lets pull in chris from our Sports Department to talk about the sacking of benitez. He wasnt in the job even a year. The shelf life of bananas in soccer. Chris yes. No patience from the board or the president Florentino Perez z. After that horrible loss, perez had come out and voiced his support for benitez. But after this meeting, it was no surprise because they demand victory in their trophy case. Is it a surprise that the president went back on his word . We saw the same thing happen with others. It is no big shocker. A pressure to bring Home Hardware to real madrid. Brent is this a good move . Chris at the end of his career he won the champions league, so i think that is a good move. He has been in charge of the beast squad at real madrid, and he has brought home his own hardware. They want to see is that success can continue with the big squad. Brent a good player does not make a good coach. What do the players they . Ink . Chris i think they will be ok as long as he does not headed but anyone head butt anyone. He has a lot of superstars on this team. I think he will definitely have their respect because he is known as a player and an assistant coach. To have their respect if you are planning them to follow the recipe. But there is a plan b. Perez is known as a fan of jose marino. We may see a new guy. Under perez , 11 times has a coachman sacked coach been sacked. It has been a revolving door. Brent thank you. Visitors to the zoo have a good view of the baby elephant born on new years eve. It joins six others in the pack. He is doing well, and getting along with his older siblings. A reminder of the top stories we are following for you. The International Community calling for calm as changes in the Islamic Community escalates. Saudi arabia, bahrain, and sudan have cut ties with iran after escalation of tensions, after i ran executed a leading shiite cleric. And as we heard, real madrid has named Zinedine Zidane manager after sacking the struggling coach Rafael Benitez. You are up to date with dw news from berlin. We will have more at the top of the hour. nnoooo youre watching live from it ison france 24. Legal and it will save lives. Barack obama speaking out as he makes a fresh effort to tighten gun control in the United States. Allow which were around between two forces takes on a new dimension. Allies weighing in on its disputes with iran. The new manager at real madrid. A threeyear

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