where he was given granted a holiday to think about retirement will basically voluntary resignation and of course we know that luzhkov said that he was not going to quit now according to russian law there are two ways that that a federal official of the region could lose his poses either seeking dismissal or of course an order from the head of state and we know that in this incident in this case it is an order from russian president dmitri medvedev it's a very highly anticipated decision not just in political circles but muscovites as well but i decided to dismiss the mayor of moscow the decree i signed states that i as president have lost trust in your. and it is a legal reason for his dismissal i cannot work with officials i can't trust. him and. it's obvious that professional relations between the president and the. subordinate to the president who. have had to act to return the situation back to normal. does leave behind

a very visible legacy let's start with moscow with self now he has been credited for giving the city a facelift one of those a baby crisis savior cathedral. which because of him was rebuilt and people are saying that this is one of the most beautiful landmarks here in moscow so they give him credit for that but on the other hand there's also right behind me if you could see through the reindeer peter the great satirist and muscovites think it's one of the ugliest sellout marks here in the city now the contrast between the opinions if you got from these two landmark does very much like the opinions that he's getting from the public is a very polarized opinion now to just have a bit more background on why is such a controversial person let's look at the story father my colleague because. the constant feature of the mosque he's a legendary cab has been the subject of amusement throughout his eighteen years in power selling his custom made silver camp it's an auction of kindly granted nursery home the one million u.s. dollars. he's mayorship meanwhile needs more than just one cap to cover the bald

spots of his career he started making his fortune on the economic crisis of the late ninety's rumors of money laundering have haunted many of his multi-million dollar construction projects across the capital there's lots of problems in the city namely there is no affordable housing for the most collides there is a problem of people cheated by the construction pyramids these tools and others have to be dealt with before any question about future employment of them is to be discussed while the country was losing money during the recent economic downturn in two thousand and nine income increased however the mayor claims it's not his money but he's weiss he and about doing that is russia's only female billionaire she was a property development company and many claim its list of political clout that lands her the deals both in wash and abroad is known for his strong anti-gay stands

never authorizing and even cracking down on gay pride parades. parts of our society with healthy morals do not accept they just don't accept them for their last summer may blame him for mishandling the severest mock situation in moscow the city it sure worked on toxic smoke for almost a month as wild fires raged while he was on vacation out of the city because of this well of course every specialist should be responsible for what they are entrusted with if for example the mayor of moscow comes back from holidays the next day after the smog over the capital has dissolved which was the case this time and i think it is unacceptable he should have been here half an hour after the smog looks like luzhkov has been concentrating a lot on his health rather than that of the city's residents but i don't drink maybe i'm missing out on something but for more than thirty years i haven't had a drop. the money that the russian government and the kids to improve

infrastructure really make it to the ramshackle roads of moscow he's also been criticized over the deconstruction of the city's historical and architectural heritage after he's long gone footprint on the streets of the russian capital i think. of a former moscow correspondent for the london times newspaper michael binion told r.t. that despite the criticism. behind a complete lack of. i think one shouldn't underestimate his achievements particularly in the early years in office when he really got things going when he came to power it was really chaotic mess had very little renewal of its infrastructure cleaned up the buildings admittedly he knocked down a lot of the historic ones which should have been preserved but those that were preserved were wonderfully cleaned up and he presided over a real boom in the city's infrastructure and in its new residences and capitol

building but of course the taint of corruption lingered so long now the question is whether in fact the corruption charges will stick whether he actually will be accused of corruption i think it would be a messy trial if it came to that and it probably would be very unfortunate he may be lucky he'll be just left in peace as long as he doesn't now interfere and try and get his job back the main thing is that he is not young i believe seventy four it's not the time really to start a new party at that age he couldn't remain in any way associated with the government that sacked him so if he went into politics he would have to go into opposition i don't think many existing opposition groups would welcome his support he would be seen as a divisive figure it would look like opportunism and i don't think it would be seen as genuinely political differences it would simply be seen as him trying to get revenge on those who sacked him so i really think that isn't an option if he tries it i think you'll come to a rather sticky end. now a boat carrying

a jewish activists attempting to reach blockaded gaza has been forced to divert the port of ashdod in israel by israeli warships among those on board as a whole course of vive and an israeli man who lost his daughter a palestinian suicide bombing a spokesman for the group that organized the journey says many jews don't support the israeli government's behavior towards palestinians. we've heard that the better work or did we understand international waters crew and happened to be in the brokerage being taken to our store we hope they will be released. immediately after no it will create went out of it's very authoritative we believe the blockade is illegal and illegitimate and we wanted in any event to make a crumb from balik statement a model code that began the collective punishment of the people of god under political challenge for the blockade of gaza and to the come can you talk to you

live in jerusalem and that we have. a declaration on behalf of many jews that the israeli government the future the public plea for documentation are not being conducted with our support or in our name and are not in our income and we do not believe they are in the interest of the very good it's very well. for almost four months ago now i'm probably a palestinian activist died in an israeli raid on another aid through to then launched from turkey a un report described the falls as disproportionate and brutal this time in london based group that jews at the justice the palestinians organized the boyish halo around the founder of the non-governmental organization all says governments should show the same courage as the people take and pass in the first hit it is. hard to know what to expect as. after what happened months ago with the marmora but it is

true though that this is a jewish this is a jewish ship and this is a jewish ship made every effort to to reach the real story is in the message of solidarity stand by jews on this ship with their muslim brothers in gaza we all know what's happened to bring us to this point and the israelis and the palestinians disagree what we need real right now is real leadership and between me and you if the leaders of the palestinians and of the israelis can show the same courage of the people on this boat and others around the world i think we have a chance to break the impasse now from a strictly controlled communist ideology to an era of innovation and a new generation of open minded people that feel russia's president has described china the world's biggest technology in shanghai expo twenty ten friends and future innovations what better place to come together than the shanghai

expo where russia and china are the stars of tomorrow let me go to the main message your brochures are exposed. we're establishing your freely relationship with china for decades to come. president medvedev opened russia day and met with thing ping deputy chair to hu jintao and the man seen as china's most possible future leader rang the ground for what could be a partnership that shifts and shocks global power. is the most likely future leader of china it's unlikely they discussed with me very concrete plans for the future but they probably talked about mutual approach to russia china relations and global issues that is about most of the day together and took a good look of what china and russia have to offer. russia's brazilian is a favorite this time around with its top talking energy companies putting on their best show. here at this exposure we're demonstrating the latest results in science

and high tech and showcasing cooperation with our chinese colleagues but it's all part of a bigger picture russia's push for rapid modernization when you go to this exhibition is a unique chance to speed up the modernization of our economies and institutes and of its development is certainly the choice of our country who are following this path and will do everything for economy to modernize change and to modern life. and russia understands china is a great way to start made in china had a significantly different connotation just some few years back that's right take a closer look at the backs of your i pads and i pods they were most likely assembled here russia china is the friend with whom to solidify a partnership bringing them into the future and past reporting from shanghai and you see now a r.t. . north korean leader kim jong il is promoted is the youngest son came.

to the rank of general in what's seen as the first step of a power transition and it came before the country's ruling were gathered for its biggest convention in decades. slim elf moves were made only a few succession has been shrouded in mystery but as always governor that over reports that practice is in dollar common in north korea. and the twenty first century everything is global and all kinds of information is available online but there remains a lot of mystery in the world wide web and that is north korea that many are pretty trade secrets not likely get access to ships he was one of you to visit the place and hopefully will share his impressions a alex so tell me you were in yang what's it like what's your biggest impression be honest with you when i was going there i felt a little nervous haven't read all the stories about north korea in the western media that it's scary place it's all the different sort of scary things that when i

arrived there i thought it was nothing like that but the one thing which oppressed me the most of the first days and first now is the i saw a building on the other side of there all from my hotel had no curtains on windows and i asked one of the assistants why is it like that he said well if you have curtains in north korea it means you have something to hide so i got the impression that this society is open to its own government whilst its government is closed to the rest of the world it is the societies close to the world as well the world attention is turned on north korea for the first workers party meeting in thirty years there are rumors of a man change but that according to those in the know is premature. i don't think we should expect any dramatic changes right away because power in north korea is built on the principles of succession and continuity kim jong il became a leader first and foremost thanks to his image of a true follower of his father's legacy ideas and not as some destroyer of the

foundations or as the person to lead the country's policy into a sharp turn so obviously the same is going to apply to kim jong il's successor. north korea's nuclear ambitions troubled the west and the secretive states tightlipped policies and everything has been successfully used as a tool by countries such as the united states. the united states in particular need a bad guy in the region to justify their military presence in the southern part of the korean peninsula and japan and for deploying their missile defense systems there which they've done somewhat more actively than in europe until now the us and allied military presence in the region was justified by the soviet threat but it's been twenty years without a soviet threat however the united states is not going to give our military alliances a stablish during the cold war and now it is very convenient to have a bad guy in pyongyang that can be used as a scapegoat for everything. to north korea the soviet union was the very opposite of a threat especially in the korean war of the early one nine hundred fifty s.

the u.s.s.r. keen to see as many socialist states in largest possible was happy to aid its fellow communist regime against u.n. troops but the veterans of those battles only recently got the chance to talk about their memories for them it was yet another war they didn't exist for. i was there for a year and a half and when we came back we couldn't talk about it couldn't even hear. those that died were buried and the notes to their families would read killed in the course of duty where. there was not open for discussion it was hard but it was tougher there of course seventy seven out of seventy eight green cities were destroyed almost completely and yet everywhere i went by saw people trying to rebuild homes roads everything we'd see women on the road carrying their kids and their belongings to a new town and would give them lifts we weren't allowed to but we did. when the

eastern european communist block apart it's influx into the north korean economy plummeted despite the fact a close relationship is maintained by moscow. the deal of secrecy is not helping to boost economic development north korea remains one of only five communist states in the world and by far the most mysterious country on the map gas units r r t moscow. of more on this i'm now joined by don't you jim walsh an international security expert from the massachusetts institute of technology and one of the few americans actually travel to north korea to discuss that he clearly is sees also many times the joining us tell the u.k. ambitions all pyongyang are often portrayed as a huge danger to world security but realistically do they pose a greater threat to peace and stability the nuclear arms states like israel or pakistan for example well i mean i don't like nuclear weapons in

any country i don't like russia to have nuclear weapons i want the u.s. to have them or north korea or pakistan but i think or israel but i think the danger differs depending on the country you're talking about in north korea the danger is not that north korea is going to turn around and attacks a country with nuclear weapons that really it has a nuclear device but it really doesn't have a working nuclear weapon and it's not interested in that to begin with ironically and as hard as it is to believe what the north koreans really want is a good relationship with the united states a normalized relationship relationship with the greater world because they're having you can omit problems and they would like to grow out of those and they're trying to use their nuclear weapons as bargaining leverage in trying to come to some sort of accommodation with the united states which i think can be described as strained at best what do you make of the view that some state that america simply uses the supposed threats posed by north korea as a pretext to justify its military presence in the region. well i

understand there's suspicion about that but i really do think that in this case that's fundamentally wrong there's nothing the u.s. would like to have to have go away as a headache the north korea and listen if north korea collapses if we do nothing north korea collapses it's going to cause tremendous problems in the region for china for south korea lots of refugees unsecured nuclear materials unsecured nuclear weapons and of course the north also acts out i mean it did sink this korean ship killing forty six sailors it's engaging other acts that have been provocative i think everyone would like for northeast asia to be a peaceful and stable and you know there are enough problems in the world in pakistan and elsewhere without having this problem but right now it doesn't look like it's going to improve anytime in the near future will of course one of the reasons for the continuing fascination surrounding north korea is it's very unique regs dulce north korea in european have the right to choose it saying form of

government it's a malaysian whatever western governments might say even if you prefer self-imposed isolation. sure i mean i think as long as countries with live within widely accepted international laws then what they do within that country is fine i mean i would oppose widespread human rights abuses but that doesn't mean we go in and we invade the country or anything i mean they can choose whatever system they want to choose and they've chosen a very very unusual system this is a communist country right it's supposed to be the workers that create that govern the country and are in charge but it is a mix of communism sort of military influence because they live under a slogan called military first and you'll see that the appointments today kim's youngest son was appointed as a four star general not a member or a senior member of the workers' party and so the military is involved here and hereditary you know passing down of power like it was

a monarchy from hundreds of years ago so it is a very unusual mix whatever they want to do is fine with by me what we need to do is find a way that we can all talk to one another and avoid conflict and resolve our issues through negotiation that's the only thing i'm concerned about out of close as i mentioned denny you well one of the very few americans who actually travel to north korea when that's a discuss nuclear but once you have visited the country what were your impressions of the everyday living found that the people that live there and what are the real levels in scientific and technological development in your opinion. well i think we have to be honest here and say that as your reporter indicated in the opening piece that after the fall of the soviet union north korea had a very difficult time most of its export markets disappeared it was not getting a like it used to and russia and china both started to have relationships with south korea and with japan who were north korea's enemies for so long so north

korea had a famine in the early and mid one nine hundred ninety s. and i think it suffered real economic problems as recently as this year it had a currency reform that backfired and then it was hit by floods and if your country on the edge that's not doing well economically the natural disasters like that can be a big shock to the system and can really cause a lot of problems so i think they're having problems right now internally economically all of looking forward to the future now if cam jong il doubles name he's western educated youngest son as the successor as he would itself that the country woofing will want. to its neighbors that like china for example. well i think that's one possibility but there is this big thing in the middle before you get there called the transition so the youngest kid was only twenty something years old he has no experience when kim jong il was young his father kim il some took twenty years to groom him for this position this is a rush job they are rushing this through for

a person who is really has no experience and that's why they will point to sort of it again from medieval times a region kim has appointed his brother in law to sort of hold things together until the youngest son is old enough to take over but how long will that last will the military want to have a greater say in what's going on will others want to fight for power how will north korea react to a period of vulnerability these are all big questions with potentially big consequences and they'll have to be answered first before we see what kind of leader the youngest son turns out to be a question indeed as all eyes from the focused on north korea can john mills the youngest son kim jong un is promoted to the rank of general jim walsh an international security expert from the massachusetts institute of technology many thanks ok without it to go away all the way to business with stephanie. hello and welcome to the business but it's him as you've been reporting in the main

use them out of moscow yuri luzhkov has been fired by president medvedev this cough has ruled the city for eighteen years and set the panic conditions for construction business to the head of penny lane real estate about the impact of his departure almost the same market. we expect a very long period of time when everybody is frozen nobody is approving giving any permits everybody is stuck waiting for new orders from the new czar they are all worried if they could do something wrong there will be worried whose orders to follow is they do not really know who will be on top tomorrow before everybody is stuck with no job going on. i believe that this would be a huge home to the industry but russia's top banks have reached twenty percent of

their loan portfolio that's the highest level since the beginning of the crisis the international finance corporation part of the world bank says flush it needs to develop a market for bad debts so banks can clear them from their balance sheets timothy crouse from the i.f.c. says the company proposes to jumpstart the system with a two hundred million dollar fund. i think that some of the banks here that are trying too hard to collect their loans are not paying attention to their core business and their market share will shrink and they'll be left holding paper that's not worth anything i think the thing is to create a market so you have a market you need buyers and you need sellers so we have plenty of buyers here capitols not the question i see provides financing we also try to match the buyers and the sellers right now we don't have enough sellers there are not enough banks that want to sell their corporate loans so there's loans to small businesses they'll sell retail loans credit card loans things like this but they won't sell

corporate loans yet there's too big of a gap between the price banks think that they should get thirty forty cents on the dollar but buyers that are coming into the market they're not willing to pay that yet there is no track record yet we need a precedent we need a first sale to occur and then prices will go up after that when people see that you can actually collect on bad loans in russia why hasn't the bad that markets in russia emerged naturally off its own accord it's a little bit of a cycle psychological issue i think no one wants to admit that they've made bad loans it takes a while to get prepared for this and i think once banks think it through once they see that they're not making progress and restructuring corporate loans once they understand that they're not going to make much progress it makes sense for someone else to give it a try someone that specializes in this business liquidity has a longer goal stop being the bank's main problem do you really think that clean a balance so how banks lending i think it will because banks don't have to allocate

capital to the bad loans that are sitting on their books if their management doesn't have to devote time to the bad assets that are sitting in their bank they can spend time doing what they do best which is to originate new loans there people can go out and figure out which corporate lenders are the ones that are most credit worthy which can be their best clients allocate capital to that that's what they need to do. the russian markets finished in the red on tuesday v.t. b. was the worst performing blue chip on the my sex having one point nine percent into the close banks also suffered energy majors dragged with rosneft down a one point three percent. in economic news russia's central bank has kept its key interest rate on hold at seven am three quarters percent for the fourth month in a row bank officials say the risk of inflation is at an acceptable level they have also previously stated that the possibility of a rate hike this year is very small. russian oil major new coil intends to

buy back the rest of its shares held by conoco phillips the company recently bought almost five percent of its stock from the american firm and now says it will buy the remaining six percent separately lou calls says it intends to challenge an official decision to prevent it from bidding for the tribes tipped off oil fields the fields are among the largest yet to be distributed in russia. german engineering and electronics firm siemens plans to invest five hundred and forty million dollars in its projects in russia over the next two to three years the company intends to build a number of plants to produce electronics equipment across russia it also plans to build a wind farm in the country's far east it will build all the generating a quick minute from start to finish in a joint venture with us hydro and state corp russian technologies. and that's all the business news for now but you can always find more stories of you log on to our web site that's r t dot com slash business.

wealthy british soil the sun. spot on. market why not. come to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars 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. it's now ahead in los gatos is the mayor of moscow is a fire eighteen years in the president says he accepts it because no don't have confidence in the couple's top boss. the russian president ends a trip to china by using them on why do you predicted to be the next leader all the people's republic. the secretive north korean leader kim jong il promotes his songs in general and the possible first step towards a hereditary trolls of power. under group of international activists on the jewish organized space and blockaded gaza is forced to end its journey by israeli warships

. nexts reports. of the scandals behind the financial headlines. max kaiser and this is the kaiser report markets finance and scandals we break it on down for you this way you know exactly who's doing what let's bring in stacy herbert to get more of the details stacy herbert talk to me a wal-mart's midnight baby formula bread line so this follows on bill simon the c.e.o. of u.s. operations for wal-mart speaking at goldman sachs's retail conference i don't need to tell you that our customer remains challenge to you need not go farther than one of our.