sponsible for some of the deaths during a botched hostage rescue eight tourists from hong kong were killed after a disgraced ext policeman hijacked their bus into manila two weeks ago ballistics tests dispute police claims that all the deaths were the result of close range fire hearing into the hijacking who include today. north korea has marked its sixty second anniversary as the details of a conference to to name the leader kim jong il successor remains shrouded in secret thousands celebrated founding day by placing flowers at the base of a statue of founding leader kim il sung. pyongyang is littered with posters announcing the workers' party meeting through the exact details are unknown it's expected kim's youngest son will be appointed to a tea party peers ition preparing him for eventual succession. be back with a recap of our main story in a couple of minutes stay with us here on r.t. .

wealthy british style. markets why not come to. find out what's really happening to the global economy with my next concert for a no holds barred look at the global financial headlines tune in to kaiser report on our.

culture is that so much insight and which of course is right on its own terms of unity it's an angry all pervasive right wing media particularly television and radio are enormously influential in the u.s. for some. every month we give you the future we help you understand how we'll get there and want to bring the best in science and technology from across russia and around the world. join us for technology update on our g. one thirty am in the russian capital thanks for being with us as we continue our breaking news coverage here on our team at least 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 a setia where the federal day of mourning has begun three suspects have been detained while security has been tightened across the region. following the attack we've spoken to a number of eyewitnesses those who were either in the market when the car bomb exploded or little who live nearby one local tells us she sadly become accustomed to living in fear or censuring key streets have been cordoned off and live in the sea to sense here he heard the blast i couldn't tell where it came from he learned to learn neighbors that there had been an explosion at the market national did not let my child go to school and heard that there might be a second glance 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 is he 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 criticized the attack claiming it was deliberately time to cause maximum is maximum insult to muslims. well built over the uk and through should this act of terror is an attempt to scare the people and is aimed at the denigration 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 philip ration and they have succeeded in doing this in northern syria and it's now in mourning and these people must pay for what they've done yes you know if you were to do carry on a list alexander cell of our of says the militants behind the attack are linked to al qaeda and aimed to take hold on the region i see this is lost it's just if that's the science it's theories and actually. it is know that lead is heidi's. pianist and that.

they are atheists to destabilize the situation says at inception asia the ain't. so that's first of all and they're trying to show that it's the until they have ceased there but still there were attempts to stabilize the here in russia and in central asia as well as political expert in at an editor in chief of the analytical slovo magazine viktor linnik says terrorists behind the attack had bigger plans than just causing chaos among a market among a marketplace. 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 also

evacuated out of kavkaz after a telephone warning claim one of them would be bombed or tarzan from the rio vista news agency says the day's events show that 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 protect people i'm almost sure that extremists are behind this blast probably with foreign support but of course we can't say for sure we should 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 they want to show that the states of thirty's are feeling to provide stability in the region there are camera shy and offer me international federation for peace and conciliation says the fight against terror can only be water through international efforts i think that all the people

politicians the military the security forces they have to think together to get the religious civil society and build the spiritual leaders of the to understand what is really going on it's necessary to really unify the efforts in the in the country first of all and also it should be aerial international cooperation in the fight against the term reason because this is not only the local roots which creates the opportunities for this struggle in confrontation but also it has an international level to. recapping our top story a powerful blast has rocked the southern russian city of lot of cars on thursday morning at least seventeen people were killed when a car exploded in the central market of the capital of russia's republic of north a set yet the suicide bomber is believed to have carried out the attack that also injured more than one hundred some of them children three suspects are in custody this is the latest in a number of terror attacks that have shaken of lot of cars for more than

a decade the deadliest of which claimed more than fifty lives. will be keeping you up to date in the situation as it develops let's get the business news now first with kareena melican. however welcome to business i'm queen 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 data space for a measure of competitiveness in twelve different ways among them education labor market efficiency and innovation so it's atlantic 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 arks liberating growth 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 places. 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've made it our lives. they're at the bottom ones to 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 seem pretty sure and. we see a combination of private increase 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 use your bones in november according to finance ministry. same storage should all 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 and a little hole in the russian budget unless the government can pump up its moorings

or fund buyers for a range of state companies legs bear. and with presidential elections less than two years away analysts see politicians we spending cuts off limits you need to do a business or two you must. plunging interest rates of work two or three fold 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 key 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 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 at least one and a half times more solace to nominate is chief although durie pasko to the board of noise the extraordinary election is shadowed for october twenty eight the votes being repeated after accusations of cheating during an earlier vote the two principal shareholders and enter ross 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 ross solve a small bank she'd have one graft all reporters in a slot and the other with him giant needs 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 is very bank 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 plus business. when the news is not enough. when it's something really crucial when you want to get down to brass tacks when you bring up special coverage. this time the latest news from the slum implement policy form live broadcasts special guests discussions on the end of the modern state in providing security and stability of the present day world. question more.

this history still keeps its secrets but now it's time to reveal to the soviet files the chance in case ethanol on. every month we give you the future we help you understand how to get there and what to bring the best in science and technology from across russia and around the world . join us for technology update on r g. i live in a country that don't understand that there's more violence in the streets of this

country than there are in the streets in afghanistan or baghdad. one minute this parisian. breaks or. give us a. little. bit. of crowd gathers grooming. them in the streets of the. culture is that so much of it which of course is right on a contemplative mood and it's angry all pervasive right wing media particularly television and radio arena. normally sleep influential in the u.s. for some.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of. china for asians to rule the day. the. breaking news on our t.v. at least seventeen people killed in a car bombing at a market in russia's a volatile north caucasus region more than a hundred others injured in the attack in the republic of north and said here for a national day of mourning has begun three suspects are in custody while security

has been tightened up cross the region. i'll bring you more on this story in fifteen minutes first though r.t. speaks to the award winning british historian and economist robert skidelsky who says that russia and europe should form a military alliance to face global threats together it's coming your way next on r.t. . lord skidelsky member of the british house of lords award winning historian economist 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 up 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 a 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 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 is 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 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 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 spend the extra burden 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'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 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 fund 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 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 your original 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 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 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 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. 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 well 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 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 very to military power in europe the french and the british the rest have and do anything really but this small and there's no unity. sort of

no agreement to create something larger and russia has a has a has has good military forces and they're becoming increasingly modernized and specialized to the kind of work. that military forces have to do today which isn't to fight huge war. but to the top 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 called set of that would be you include russia and we should that 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. and the.

wealthy british style sun. that's not on. the. market why not come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into kinds a report. every month we give you the future we help you understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around the world to join us for technology update on our g.