I reckon it was very wrong and stupid of the pilot to provide the passengers with extra details over the current on going snags on the PA and freaking them out.
He could of just informed you that there is a technical issue and due to it you're expected to go though an emergency landing for safety reasons but to tell the passengers of how many hydraulic systems have failed and one has overheated, freaking them out and things as such is just rather unprofessional, This pilot should be kicked out of the airline
.
Circuling around the airport was probably a procedural turn or perhaps he was asked to do that by the ATC controller untill the runway is cleared for him to land.
The screeching sound was probably the slats&flaps retraction.
Let's see what the experienced folks around pprune think.