every month we give you the future the best in science and technology from across russia and around the world. join us for dick knowledge update on our jeep now with i.b.m. this is data data generated from an electrical grid honest the data you can do to do it in california or colonel turner diminish resources and help prevent blackouts . let's build a support of. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada after. china operations are over the day.

which right. about sums from finance to pressure. starts on t.v. dot com. it .

for the full story we've gone to. the biggest issues get the human voice face to face with the news makers. ten thirty pm in the russian capital thanks for being with us here on our team with our continuing breaking news coverage having seventeen people have been killed in

a car bombing at a market in russia's volatile north caucasus region more than one hundred others were injured in the attack in the republic of north korea suspects have since been detained while security has been tightened across the region. following the attack we've spoken to a number of eyewitnesses those who are either in the market at the time of the explosion or who live nearby one local told us she's sadly become used to living in fear or censuring key streets have been cordoned off i live in the seats the sense here he heard the blast i couldn't tell where it came from he learned from our neighbors that there had been an explosion at the market naturally i did not let my child go to school and heard that there might be a second glass this is often the case we are living in the tinderbox people are being evacuated from the building and they cannot answer it i don't know what's the waiting for me i cannot reach anyone no connection is poor it's impossible to down a single number i cannot even get through to my own home basically the situation is very difficult it's impossible to get used to it but we have to live with it.

islamic leaders in russia have also criticized the attack claiming it was deliberately a time to cause maximum insult to muslims. well bit of a new this act of terror is an attempt to scare the people and is aimed at the dinner gratian of islam as a religion of muslims around the world and in russia have been waiting for the end of ramadan and these people who carried out this attack wanted to overshadow people's feelings and head of this holy celebration and they have succeeded in doing this in northern syria as it's now in mourning and these people must pay for what they've done if you were doing security analyst alexander sullivan of says the militants behind the attack are linked to al-qaeda and aim to establish a foothold in the region by sea this is just if that's the science it's serious and actually. told that elite is heidi's. of pianist and their practice their aim is to just stimuli the situation says

at inception age the a choice to seduce european that's first of all and they're trying to show that it's. they have ceased of it but still there were attempts to stabilize the c.f. here in russia and it's such a slow. political expert an editor in chief of the slovo magazine viktor linnik says the terrorist behind the attack had a bigger agenda than just wreaking chaos among the people. what we're dealing here with is i think a sustained and determined effort on the part of some to create political instability. on the eve of the. presidential and parliamentary elections to which russia is moving very fast. and i think that this is impossible without money and assistance from from outside of russia. all schools in kindergartens were

evacuated in vladikavkaz this morning after a telephone warning claimed one of them would be andre murtaza and from the ria novosti news agency says today's events show the terrorists have been waiting for their moment to strike. iran to keep up with i think terrorists want to seek revenge for the beslan school siege during this year's commemoration events the security forces were on high alert so no terrorist attacks were carried out now security measures have been slightly weakened the terrorists attack people i'm almost sure that extremists are behind this blast probably with foreign support but of course we can't say for sure wish organization is behind the attack the terrorists which blew up the car just want to destabilize the situation in the north caucasus and discredit the current leaders in the area we want to show that the states of thirty's are feeling to provide stability in the region that there can be shut out from the international federation for peace and conciliation says the fight against terror can only be won with an international effort i think that

all the people politicians the military the security forces they have to think together to build a village a civil society and build the spiritual leaders of the to understand what is really going on that's necessary to really unify the efforts in the in the country first of all and also it should be ariel international cooperation in the fight against the tories and because this is not only the local rules which creates the opportunities for this struggle in confrontation but also it has an international level to. recapping again our top story a powerful blast has rocked the southern russian city of logic as thursday morning at least seventeen people were killed when a car bomb exploded near the central market in the capital of russia's republic of georgia set yup a suicide bomber is believed to have carried out the attack that also injured more than one hundred some of them children three suspects have been detained this is the latest in a number of terrorist strikes that have shaken lot of cause for more than a decade the deadliest of which claimed more than fifty lives.

will be keeping you up to date with the situation in the north caucasus but let's get some more business news now with kareena melican stay with us here on r.t. . how it all came to business i'm clean malakand because i have you with us russia ranks sixty third as a competitive nation according to the world economic forum that places russia roughly in the middle of one hundred thirty nine countries on the list davus space for unmeasured competitiveness in twelve different ways among them education labor market efficiency and innovation so it's a learn to first place followed by sweden and singapore. and russians credit rating outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost are accelerating growth of stabilizing banking industry and a flexible exchange rate policy from the central bank which said it may further raise russia's credit rating if the government reduces the country's vulnerability

to swings in all classes. politicians are placed in some countries have given up the pretense of economic recovery president barack obama this week called for another round of public spending to prevent a slide into depression but the debate has finally balanced with others in europe determined to cut spending and bring down deficit's they have that are parts. there at the bottom wants to tepee another one hundred eighty billion dollars into the u.s. economy after a data suggesting the economy from house prices to jobs is shrinking again given his mood is a debating whether more spending will end a decade of contraction in the land of the rising sun the russians to face a choice for the next few years we see free spending. we see a combination of private and increased spending that we believe. i believe to

be private capital will return to russia over the next twelve months in a meaningful manner secondly we do see increased spending from the government as well combination of two should be the base we believe to be five to six percent growth over the medium term the government plans to borrow more money this year but also spend their means of this to build zeeshan fund domestic borrowing is already accounts for sixty million dollars and russia will be ready to issue your bones in november according to the finance ministry motional same story will be boring a lot in any case a deficit of three point six percent is anticipated next year we also focus the twenty twelve deficit will be three point one and two point nine to twenty thirteen the current situation has forced us to borrow and we will be spending from the reserve fund next year. the reserve funds have shrunk to a third of their former size when that runs out a little hole in the russian budget unless the government can pump up its moorings

or one buyers for every inch of state companies legs bear. and with presidential elections less than two years away how normally see politicians we spending cuts off limits you need to do a business or two you must. plunging interest rates of what three four rise in borrowing on the syndicated loans market by russian companies corporate loans have jumped to twenty billion dollars from just under seven billion dollars a year before for example local took an unsecured loan this year is about one percent above its a bank rate last year a similar but secured loan by the same company had an interest rate four times higher than. the russian markets ended in the black on thursday with the r.t.s. finishing up of wine a half percent and the last six just over a percent across telecom was the biggest gainer all of my six up over five percent backing in energy shares were also high with the t.v.

gaining three percent all the r.t.s. shares of spare bank of lukoil finished up two point four percent. gazprom will boost investment by thirteen percent in the final months of two thousand and ten it will take the total for the year to about thirty billion dollars the money will go on keep gas transport projects plants and russia's far east along with the north and south stream pipeline projects. now look out the rest of thursday's company news el dorado russia's electronics retailer says it will exceed its profits forecast this year helped by the opening of four more stores the group's vice president of marketing says the company wants to become a leader in europe. so you. go all over the next three years is to become the best in europe in the next couple of years we're going to rebrand the whole chain we've managed to recover and regain the confidence of both consumers and banks were quite profitable and we've announced four percent ebit dollar year to date yes but we

still have a lot to do we began the year with one target for profit but it looks like we'll exceed it but least one and a half times more solace to nominate is chief although during past go to the board of norsk may kill the extraordinary election as shadow for october twenty eight the votes being repeated after accusations of cheating during an earlier vote the two principal shareholders who saw an interest have competed for control of the board a list of candidates will be submitted on september twenty first at the latest sperm bank could offer a four point six billion dollars loan to rosalba small banks have had one graft all reporters in the us lot of the other we have joined moves to refinance is debt to me a second on bank graph has also announced that the privatization of nine point three percent stake in the bank won't happen this year turning to its operations he added that burbank expects its retail loan portfolio to grow ten fifteen percent in two thousand and ten. that's all the update but you can always find most always on our

website at r.t. dot com slash business. wealthy british sign. on. the. market. can. find out what's really happening to the global economy with max cons or for a no holds the global financial headlines tune into kinds a report. for

the full story we've focused on the biggest issues get a human voice face to face with the news makers. every month we give you the future we help you understand how to get there and want to bring the best in science and technology from across russia and around the world join us acknowledging update on our. more news today violence is once again flared up the phone these are the images the world has been seeing from the streets of canada. china corporations are today.

when the news is. when it's something really crucial when you want to get down to the. special coverage. this time the latest news from the global policy forum line. special guests discussions on the stakes in providing security and stability of the present day world. question will not see. this is not a good warm. seems that we should stay

everybody is sure to support the trees they have no idea about the hardships that we face. this is. going to loosen. the army of abuse the government is the most precious thing in the world . uses of self-sacrifice and heroism with those who understand fully that you have to live a. real life stories from would need. to treat nineteen forty five don't. breaking news on our team at least seventeen people killed in a car bombing at a market in russia is a volatile north caucasus region more than one hundred others were injured in the attack in the republic of north of three suspects have been detained security has been tightened across the region up next our king spoke with award winning british

historian and economist robert skidelsky about the economic crisis and why austerity measures will only make things worse and he tells us why russia and europe should form a military alliance is coming your way next on our team. 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 theorise 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 weaker than it was. population is it is not expanding and the 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 it has no european government and till they get european government they're not going to play be able to play a major part in the world of world affairs the collapse of the greek economy has impacted the whole of the european union. 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 well 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 europe 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 spending extravagantly 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 such 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 have all adopted what's called fiscal consolidation policies they've all said that they're going to cut their spending in 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 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 monetary 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 mean most of this 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 can it result in 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 of us some politician said 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 the money and take 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 over the country and that'll get rid of

unemployment no 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 fiscal stimulation programs which have been operating over the last two years could this cause

a slump in logic. 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 system. and everyone said oh really the big big problem is the hole in the government finances that they're that 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 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 and 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 but 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 very two military power in europe the french and the british the rest haven't they do anything really but they're small and there's no unity. to sort of no agreement to create something larger in russia has a has

a has has good military forces and they're becoming increasingly modernize and specialized to the kind of work. that military forces have to do today which isn't provide huge rewards. but to be proper 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 you include russia and we should we should take him up on that and really see well what we can do with it because all through russia is part of europe it shouldn't be outside it. let's get else king thank you very much for the time.

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