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markets. find out what's really happening to the global economy. for a no holds barred look at the global financial headlines kaiser reports. live from moscow this is all we have breaking news for you. fifteen people are being killed by a suicide car bomb attack in the central market of the southern russian city of light a couple times more than eighty others were injured in the terrorist blast police are evacuating people from the area as a second explosive device has been found. now up next. talks

to the award winning british historian and economist robert skidelsky they talk all about the economic crisis and why austerity measures may only make things worse that's next right here on out. lord skidelsky a member of the british house of lords award winning historian and corniest and an expert on russia is here with us today thank you very much for joining us group or skidelsky your wrists and book canes the return of the must step out philosopher and economist john maynard keynes received several awards how relevant the economists feel today i would say they were very relevant in three respects first of all he explained how we got into this mess this crisis in two thousand and eight two thousand and nine secondly he tells us what we ought to do about it how to get

out of it and thirdly he tells us how to avoid how we can minimize our chances of getting into another one and i think no other economist does that he was the greatest economist of the last century in one of the articles you said that europe was declining economically and politically why is this happening and what are the signs of the crisis well of course europe's been very badly hit by the recession and it's got very high unemployment but beyond that i think europe is in decline it's it's weaker than it was. population is it is not expanding and. others are it's been affected by the rise of asia and particularly the rise of china so if you think back to one hundred years ago europe was the center of the world now of course it's not and it's much much weaker than it was and partly it

has no unity there's a european union but there's no european government and till they get european government they're not going to play or be able to play a major part in the world the world of. the collapse of the greek economy has impacted the whole of the european union. and does this mean that the e.u. is vulnerable as a groupie well of course it is because it was based on the idea that everyone is progresses at the same rate or if there are some weaknesses. in some parts of it it affects the whole lot because it means that the exchange rate is weaken and it also means that some countries like germany have to bail out other countries so if anything goes wrong in one part of the union it's the responsibility of other countries and they didn't think they were going to have to assume those responsibilities so i think the greek the greek crisis has impacted the whole of

the union immediately immediately it. created a crisis of confidence in the euro germany and france want there to be consequences for the countries which ran up excessive deficits like greece is this a necessary step well of course i think people have to countries have to be have to live within their means so to speak and not spend extract again but when they talk about consequences for greece they also have to consider the consequences for greece and other weak countries will have consequences for them i mean if if if they cut down on government spending in the mediterranean countries that will mean less demand for german exports and so it will impact them it's not just consequences for the for the weak countries it's consequences for everyone so i think they have to be very very careful in wanting greece to pay the price of its

extravagance because paying that price the germans will also have to pay a price they're the strongest country in the your opinion and from so as well and what are the countries which could be potentially some. it to these matches greece italy spain ireland. england. portugal they're all they've all adopted what's called fiscal consolidation policies they've all said that they're going to spend the next over the next four or five years to balance their budgets again and i think that's going to have a very bad effect because i think it's going to slow down the growth of a recovery will slow down the recovery it might even lead to a double double dip recession as it's called so you actually go down again so they're very dangerous times for the world economy over the next six months the german finance minister suggests introducing a european want to treat font is this necessary is this

a necessary edition to the current system i think it would help yes i think that's the one good suggestion that's actually emerged from the crisis i think most of the suggestions have been terrible but this is a good one. because it mobilizes some resources that can be brought to help we countries in an emergency it's rather like the euro it's a regional version of the i.m.f. you know the i.m.f. countries can borrow from the i.m.f. on conditions but of course it depends whether they can mobilize the required resources on a permanent basis they have done it on a temporary basis so far on a permanent basis and what conditions they attach to lending the money if the conditions are too hard then i think they can actually make matters worse but it is a good it is a good step towards a government of europe you believe that expenditure reduction is the key danger of

the current economic situation why is that and if so what kind of result well i think expenditure reduction is a huge danger because it's cutting down spending the government in a recession the government is really kompany. sating for a decline in private spending overall the spending in the economy is less than it was and then private sector spending less government has to spend more that's the only way of keeping economies going and i don't know who exactly has some politicians that there is a crisis like the current one you have to pay people the money make them work even if you if you make them take the money and dig them out well cain said cain said you know that you'll you'll you'll you'll get rid of unemployment if you if you dig dig holes in the ground and get people to fill them up again or if the treasury filled the old bottles with banknotes and milton friedman said the same thing

helicopter money would just scatter money over the country and that'll get rid of unemployment you know between serious the german economy is a very strong economy but it is an export economy and its exports have been growing why because basically because china has been growing very fast in the last year or so if china's growth. stops but gets less if european if european growth falters as a result of these cuts everywhere if american growth slows down then the germans will not be doing so well and i don't think they'll be doing as well as they are now in over the next year i think they're going to face a moment of truth when everyone slowing down is going to be very bad for the german economy the german economy will slow down to you criticize the decision of the european leaders to withdraw all fiscal stimulation programs which have been

operating over the last two years could this cause a slump in logic ornaments i think i think it can i think the the with the withdrawal of the fiscal stimulus is very is very risky because it's been like a lifeline it's been a life support. them and everyone said oh really the big big problem is the hole in the government finances that they're but they're spending much more than they're raising in revenue it's not the hole in the government finances that's the problem it's the hole in the economy that's the problem and you know if you if you deal with the hole in the economy that the finances will get better automatically because revenues of the revenues of the government will increase and their expenditure on unemployment will fall so you deal with the economy and the budget will look after itself more or less i'm that's an exaggeration while leaving the economy to one side in one of your interviews you set that russia could provide

military defense to the european union under what conditions could this happen. well what i meant by saying that russia could support europe in security matters was that russia should become part of the european security system and i think the simplest way to have done that would have been for russia to become a member of nato which is i think something that putin wanted when he was president but they did they didn't want russia in but that would have been the simplest way but as it is russia should become a much more effective part of the european security system and not be outside it because the european actually european military is very very weak the only two military power in europe the french and the british the rest have to do anything already but this small and there's no unity. sort of

nato agreement to create something larger and russia has a has a has has good military forces and they're becoming increasingly modernize and specialized to the kind of wood that military forces have to do today which isn't to fight huge rules but to be part of the counterinsurgency operations peacekeeping operations and so on so russia could be a great asset for european security system and president medvedev has suggested a new security concept of that would include russia and we should we should take him up on that and really see we'll walk we can do with it because all through russia is part of europe it shouldn't be outside it. thank you very much for your time.

wealthy british style the sun. is not on the front of. the. market why not come to. find out what's really happening to the global economy with max cons or for a no holds barred look at the global financial headlines tune into cars a report on. when the news is not enough. when it's something really crucial when you want to get down to brass tacks when we bring special coverage. this time the latest news from the young muslim woman policy form mind broadcasts special guests discussions on the end of the modern state in providing security and stability of the present day world. question more on the.

more news today violence is once again flared up the film these are the images the world has been seeing from the streets of canada. china corporations are today. and.

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those were injured in the last. as a second explosive device has been found. good

to have your company this is sports the day and i mean you know maybe one piece of our headlines. final for the sole remaining russian woman left at flushing meadows . makes the semifinals of all the years in the grand slam the very first time. serves on song serbia stone reaming champion spain in the quarter finals of the world basketball championships. clash of the giants take to the last five or to seriously challenge the dominance of the heavy weight division samuel peter appears for some reason. here is the only real will wander into unchartered territory on friday the last russian woman standing at the u.s. open booking her norgrove appearance in the semifinals at flushing meadows now the wimbledon finalist for this year taking care of business against each one was

a straightforward affair for it's already over but. perked up in the second this point typically the long baseline battle the ball goes out eventually twenty sexual is into the seventies a far cry from last season when the rockets. nation. were trying. the most important thing was to find the right balance between being patient and being aggressive and i think. she now faces carline wozniacki dane stopping dominic it's a book of straight sets a similar pattern to the sport clash this with was easing into the first set before facing a tough second unforced errors costing spoke of a. making a muscle forty three compared to what is much more conservative total.

it's business as usual for roger federer over in the men's side of action the world number two in clinical form against one of the few players to ever be some on the court rob in so doing the swiss maestro seeing off the fifth see six four six four seven five with both men defying heel force wins york city. not federer out of this year's french open but any thoughts of a repeat performance were put to the sword early on twenty nine year old federer absolutely dominant on the serve sealing the win with a succession of aces its old foe novak djokovic next for him up to the serb rushed . in three sets. the third seed how to do anything but his own way in the opener only taking it tiebreaker the next two were a different story the man they called joker taking total control seven six six one six two how it ended up odds are things will be somewhat closer in the semi's

against federer. who is. trying to use that we use this kick you know they give you the first easy ball in the rally and i was trying to think about think. you know. what happened or just kind of doing in the present moment. one day old on the third kontinental hockey league season has already thrown opposite champions akbar's humbled by merger club. i like this of course the cape charles only ever champions taking on a team depleted of star names but the squad. upset the courtesy of a superb opening third where they finished zero up. and giving hope to underdogs everywhere. let's stay with the league age is just

a number as far as the most high profile signing of the year dominic is concerned forty five years of age the czech native and two time hart trophy winner is ready to open a new chapter of his career here in moscow rich poor flea takes up the story. pretty much everything there is to. gold medal for the stanley cup and even if. they. go to beach it has been time for missing for the golden age is pretty cabinet . income. completely come a brave new world. it was a difficult decision i i felt like. i was. with detroit red wings we won the championship. in the czech republic and i thought something still inside. i also play hockey and play like a child. it's something new for me and i want to do for myself but i just i have

probably a games and compete for the championship despite being a major most goaltenders let alone full to believe their skates pushing since he's good stand but you can pay me. cross to what i was in shape. to play like eighty nine games but i don't always. the wardour the coach says it's always his decision i would like to play i don't know let's say eighty percent of the games but we'll see it's going to be having been in most cases just under a month cash is well aware that he has a tough season ahead of him fully admits p.h.l. is still the world's strongest leader he says the cage show is growing in shrink from popularity especially around europe and tell its core i don't know how. that is a big. player send people soccer know about it more if it's only beginning russian and starting to be because. i could watch not only n.h.l.

games on the chickie but also. the it's getting me push it will certainly feel at home with his club in moscow they want six players with all the chicks they like here as had his head coach bill is one of the main reasons for him during his part time. job one of the favorites to win this is the darren cup double aid to his form he could put good but bowed to a talented but improving group of players which of them both me don't see moscow. that brings us all into the converse where revenge will be very much in samuel peters mind this saturday night the nigerian taking on i b f w b o b o heavyweight boxing champion in a rematch of their fight from some five years ago that night peter troubled the giant ukrainian more than any other fighter house don't include schools nine type of offenses to date pietersen the thirty four year old to the ground on three occasions before that score regained enough composure to win it on points to score

younger brother of currently p c l told a fatality of a tough twelve run clash last time out against the chamber's i was in march on the team say they're expecting similar on september the eleventh. really exciting for a first time the second time around now same old peters again as mandatory challenger and so everyone is really looking forward to this white ladder now its title defense and he's pretty much established himself as the most dominant heavyweight and most consistent heavyweight out there in the last decade. i think on where they'll be no winning repeat for spain the world basketball championships the horners knocked out by an op for its serbian squad constantine to top off the story of the quarterfinals. troops where you get to eventually defeat at the hands of the spirits in the last years eurobasket decider we. exult the twentieth of september last season. spanish.

was much better as. it was a big opportunity just to see how much we grow our game and what we can do without them as players pull his all and caustic a little on the reigning champions experience trouble from the solid shooting from the minute and gone it's a relief and the spinners which wailing baby end of the first quarter twenty seven twenty three said he'll lose the pair with three shots got spain back into each twenty one twenty eight early in the second quarter blackmarket kashmir with a three point zero from the corner to move away once again forty nine forty one to serbia tough to spin produced a ten lasting one of the start of the third quarter to take this seriously to begin my news will hit it high arching fade away over a minute in this period six months or points to get within eighty six eighty four with two minutes roomy. three point zero the out straight charm of fernandes i want a bus to go for thunder is doing to take the score at eighteen right all with just

twenty five point eight seconds left and then militia when the clock out before hitting the killer effort with gemma hosts sealing the point and score at ninety two eighty nine to all their players with the edge the ball would follow them if not no because there were a great three great great free throws sure there's they didn't catch it so we played with a while we had to go. nine meters. into the possession of say great shot. meanwhile even though the feature to continue to make history is the easily so of slovenia to extend the winning streak to seven teams the host dominie's into the game finishing the course would have twenty seven fourteen meet me and twelve joining the troops increase the elite to double the family in the second home the home side wishing the same influence of the championships for the first time following the routine eighty six week three how it tough it just as

expected next and it still could be a service for a place in the point is that it was an opportunity. to footballer aston villa have finally named their new monitor former liverpool on leon head the man taking over the reins in birmingham their sixty three year old frenchman takes over from kevin macdonald who had been in charge at villa park since martin left his post on august ninth clear who guided me on to to leave one titles noting this focal well having spent half a dozen years liverpool the length of his contract doesn't mean annoyance with the left but it is no one he'll be in charge of the side for monday's premier league game away to the school. that wraps up all the sport but if you're hungry for more do log on to our team dot com forward slash sports for more where others coming up in just a tick. every

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