well kim salty broadcasting i live from central moscow where president dmitri medvedev hasn't just delivered his annual state of the nation address you focus on the problems. affecting you the country's social issues but he also mentioned the significance of russia and they say he's joined missed all the birds plans and the threat could it be failure to cooperate might solve the headlines this tuesday. world leaders call cold water on the exposure of america's candidate cables saying the wiki leaks while will not attack global took place the same. project he loyalty test

of president obama's political cost as the democrats bratz the republicans to get the new clip cuts still signed golf ball the senate is still in action. and i had a very warm welcome to you this is the coming to you live from the very hall it's all of the russian capital with me alice tippett we have just been listening to president dmitri medvedev stays all of the nation address it didn't quite match ups of the hour and forty minute time length the previous addresses have done a pretty good tool first it's dungeon period of time in which he mostly focused on the domestic issues social problems affecting russia he talked about the need to mobilize. both the economic the political and the social spheres of everyday life

there he particularly focused on the children here in russia and the need to safeguard future generations look after their health their education and their legal rights he also talked about the need for more of my examination of both the political and economic systems here he talked about diversifying away from oil and gas industries of energizing the heights of fields here he mentioned the need to be more energy efficient he also focused on the demographic problem affects in russia the need to encourage families to have large numbers of children he talked about the environment he talked about improving the relationship between the state and the individual and he talks about the need to humanize the criminal justice system here he also focused on the corruption saying that is still the biggest problem affecting every day life here in the russian capital and he talks about the need

for the russian state for the parliament to continue with their fight against corruption. should. someone with you might to mobilize them to battle with corruption remains the top priority for us i think we have to analyze what we have done and go ahead with it our experience shows that even facing a twelve year jail term does not stop corrupt people we think that sometimes economic measures such as a fine could be more productive so commercial bribery can be punished with a hundredfold fine. while in the last a pacifist speech president dmitry medvedev did move on to talk about foreign policy and he specifically focused on the joint midst of the fence plans being discussed within they so i need talked about also the need for russia to increase corporation with a european partners he said that it was vital the. what parade should. was was

implemented in discussion. on going issue of missile defense he said the russians faces a choice now either cooperate or at face the prospect of another arms race that's how we listen to what we have to say on the issue of national defense. but. in the next decade we have the following alternatives either we reach an agreement on missile defense and create a full blown mechanism for cooperation or if we fail to have a constructive agreement a new stage of the arms race will start and we will have to make a decision on creating new strike forces. however president even reverted to go on to say that russia's foreign policy wasn't simply about missiles on a ballot defense he also focused on the need that russia needs to expand its trade links and he spoke specifically about the need for more common economic zones and

most specifically in the pacific stretching from the arctic to the pacific ocean and of course the region with a very important and. greater trade with both china and japan so president of another key focus of that dress was grace a foreign trade. economy we need to step up economic diplomacy it should provide specific results for modernization our foreign policy should not just be based on missiles it should be specific achievements that are understandable to our people creating joint ventures in russia producing high quality inexpensive goods facilitating the visa regime such a pragmatic approach me to an understanding from our foreign partners. don't just talk about the international flights against piracy before concluding his

speech so in all the greater part of the focus was on domestic issues pretty clearly the need for more nice a shared and the need to continue the fight against corruption and the needs are to see the demographic issues affecting the russian population but for greater analysis of all this let's cross over to aussies and he said now you reminisce tell she heard that speech first hands and knees sir received what did you make of the speech well it was a very long speech it went on for about an hour and fifteen minutes of course so many issues were covered but our job of course is to pick out the brightest and strongest statements one of them you mentioned and it had to do. with that missile defense of course a very strong statement coming from to meet him it's made of that if in ten years missile defense is not agreed upon in europe that it could lead to a new arms race while to talk more about that and other things that were brought up joining me is alexei pushkov here the political analyst let's start with that

statement a new arms race what do you make of his statements that if the translation we had seemed a little bit lighter in russian it came off really strong am i right in understanding that in russia and going covering him in his arms race the translation is completely right. i think mr medvedev for wanted to make a very strong point that the a.b.m. system which may be created jointly between united states europe and russia. may become the foundation for a new relationship as they say in the united states if the game changer something which will dramatically change the strategic equation if it does not happen he wanted to say then we may be all for a new period of confrontation looking from today and you are as raise does not look as a very. high probability. but i think he was putting the stress on the fact that if we don't move forward we will definitely move backward and what is

backward what is behind our backs it's a cold war and so if we do not progress in our relationship with the west and nato woman a very will find ourselves to regress same and then the relationship between russia and nato as it has happened many times in history will become very called again and maybe we will face an new period of confrontation so i think that was the meaning of. his speech and i'm certain there was a strong rhetorical aspect to his statement. it was. really is a desire to show that we are ready for this and that we would like our partners to be ready for this because if we miss this chance we may be all for much worse times now of course much of the address focuses on domestic issues one of them being corruption it's no secret it's a huge problem here in russia the president now is that talking about

a ten fold fine for bribes do you think that's watch the work. one hundred felt i just want to correct my so that one hundred fold fine for bribes. you know i am coming. back from singapore i've been there for ten days on the invitation of mr because i knew the founder of modern singapore and of the singapore economic miracle and what i learned in singapore is very revealing what is most important when you find fight corruption is that the laws are being not just proclaims but implemented it can be a fine it came be jail it can be five years give me fifteen years the most important thing that people will get bribes no that they will suffer in russia we have enough laws to fight corruption the president has made a suggest something else it may be an option but i think we have enough laws to

fight corruption the problem is that the laws are not being implemented they are not being put in practice because people are covering other people very high placed people are covering other high placed people and so the system is very much corrupt because the fight against corruption remains to a large extent a declarative it's a declaration there's an intention more than a practice so my personal opinion is that you have to enforce the existing laws you have to fight corruption practically and not just from high tribunes you have to not just to talk about it but do real sings about this and then corruption will stop in singapore was a very strong corruption but then with the coming only can you. slowly people started to understand that it will all end very badly for them and now there is almost no corruption in singapore so we could i sing send a governmental team to singapore to start this their experience and maybe it will resound something very useful for us that one thing that came up often whether it's

about modernization about corruption about missile defense is the future and russia's children that everything is for them it was actually i found towards the end quite sentimental his point that it is for our children that i'm making this speech that i want these things to get done what do you make of that when i sing the president good if he's looking for a central team for his who fought for for the social dimension of his speech and he addressed the issues of children which is i saying an issue that is extremely important not only for the future of russia but for today's russia because as you know the conditions of children show where the country goes and i seemed. to have made a very detailed one would even respect not so many details about this problem in the address of the federal assembly but he intentionally made it very detailed. speaking about relatively small problems but insisting that they are extremely

important and i just hope that it will all be implemented in practice once again because we have heard a lot of very positive things. in the past two years about where we should change things and where we should make progress and unfortunately when it came to the level of cities to the regional level especially the small cities nothing worked and so i think once again the problem is not just to. make a right focus on a certain issue but to find the means and the instruments also the money. to implement this to find the necessary means to make your words not just sound as a program but become. something real people will feel so i think that if president. bush this his personal control and makes this program of.

behavior childhood russia could call it this way made it his priority and find the ways the means of the people to implement this i think the nation will be very grateful to him all right alexei pushkov thank you very much for your input their thoughts there from alexei pushkov a political analyst of course now the president's plan is out there it's the job of these lawmakers to go out and make it happen alice back to you. guys to me so many thanks to you and your guests to pick your parts of the highlights of president to meet the kids and we'll the giraffe's of course the fight against corruption russia's missile defense plans and the d.c.u. improve the lives of russia's future generations the main themes coming out of this year's annual address are now that six from near the very hearts all over the russian capital where we have just heard that and you'll say so they should address

that now though back to the aussies today for the rest of today's. many thanks to what is our last habit and it's an odd way of reporting that now the latest a wiki leaks revelations are nothing new and will not damage international diplomacy this according to major world leaders they've voiced their doubts about the leaks from the online whistleblower which contain more than two hundred thousand classified documents from u.s. embassies across the globe but as r.t. is guy nature can reports many experts say it's still a huge blow for washington's reputation. those files exposed definitely exposed diplomatic information never meant for public eyes but experts say most of those documents are nothing new for the international diplomatic community most employers are kind of aware of the u.s. attitude many were quick to dub it as a diplomatic crisis for the u.s.

not just because of the facts revealed in those files but most most of all the first of all because of the revelation itself how is that possible right this secretive us state department allowed this to happen how weak their protection system must be if more than two hundred fifty thousand classified files managed to pour out and second of all home bera saying and often undiplomatic those cables actually actually were also the reason the release shows not so much some huge secret facts but rather the level of correspondence among u.s. diplomats which which some described as similar to high school kids check at the u.s. embassy in paris for example described a french president as as a naked am per things off among other things the u.s. embassy in moscow described president medvedev as playing robin to putin's batman you find a lot of nicknames in those files the weekly star definitely causing a lot of them bare cement for the obama administration they're trying to sort of play this down in obama's case just to just ignore it he walked out on a reporter who asked about the weekly leagues secretary of state hillary clinton is

now doing all the damage control work here is what she said i want to make clear that our official foreign policy is not set through these messages but here in washington our policy is a matter of public record as reflected in our statements and our actions around the world many countries that were mentioned in those files were kind of restrained in their comments including russia because. it was fun to read sure but in actual policies we prefer to base our decisions on our partners concrete actions we're going. to practice this approach in the future. there are lots of versions on who would want all that secret secret diplomatic correspond as we build someone their dad still not clear who one of those were versions is that the leaks were used to undermine obama some are saying the leaks could be an inside job i

found this a little friend or discourage the us government workers these leaks would never have happened if not for the number of insiders who are ready to leak this information it looks like it's linked to the wars in iraq and afghanistan when officers and they're looking for a not exactly fair business and this moral decay inside the pentagon pools these leaks the main thing this leak has done is break delusion that the state department has everything under control they have been exposed mechanisms not secret but quite simple and cynical partners of the us will be more careful now it's another sign that the us is no longer dominating the world meanwhile obama ordered to tie can measure is to safeguard classified information but we can't expect them assess to reveal more i haven't heard an opinion here at that maybe we can leaf they do i's diplomacy a favor that would make them work better and made me watch what they're saying behind the backs of their allies even. garniture can reporting well trends

analyst says the leaks are a vivid illustration of the u.s. government's shortcomings. it's just another example of how inept the united states government is it's just another level whether it's losing wars in iraq or afghanistan whether it's failed health care or how about this one a failed economic policy everything that washington is they turn to ruin and this is just merely another example of their levels of incompetence we the people should have the right to this information they want a transparent government let's have it this is the diplomatic top this is dabbles b. and now we have these crazy congress men who want to call him a terrorist so now they're going to try to stop it every way they can but bin ates very difficult to say where it's going to go in total conflicts in the u.s.

congress should not hump if it's to reduce nuclear weapons well that's the cole from the head of the senate foreign relations committee john kerry's says the atomic cuts treaty with russia should be ratified before the newly elected senate is in place that's when more republicans will get the chance to block it new start he is quite simply a commonsense agreement to control the world's most dangerous weapons and then have stability between the two countries two countries that possess over ninety percent of them and what are completely opposite irresponsible decision it would be if the united states senate just got bogged down in politics and walked away from this moment unwilling to make that kind of decision that offers the kind of leadership that the world that i think certainly the american people expect us to make. john kerry's message echoes that of the u.s.

president during a nato summit in lisbon odia this month barack obama said rubber stamping the deal this year is crucial for national security and for the warming of relations with russia the treaty would see the nuclear arsenals of russia and the u.s. slashed by almost a third also come into force it has to be ratified by the u.s. senate and republicans are trying to stall the process saying there are more pressing problems to deal with investigative journalist to wayne madsen says some republicans are in favor of signing the treaty but that president obama still faces a daunting task to persuade the rest it is. unfortunately if we don't pass the start treaty and this congress it's going to be thrown into a senate where the republicans are going to have an increase majority people like senator john kyl and senator john mccain both from arizona will have a lot of influence and less so people like senator lugar who's been forcefully

arguing he's a republican of course he's been forcefully arguing for the republicans to do the right thing if he can persuade enough republicans and maybe some of the outgoing republican senators to get on board maybe we could see passage but this is going to take some monumental statesmanship not only on the part of president obama but on part of the democratic and republican leaders in the senate who are not trying to sabotage the start treaty with russia it's really incumbent i think on president obama to use his bully pulpit being the president of the united states to to really force this issue and tell these recalcitrant republicans why this is important. it's not just after twenty past the hour here in the russian capital you all with next it's sure enough with the business.

well welcome to our business program. president jimmy choo medvedev has given more details of his plan to modernize the economy the president also confirmed with a broad sell off of state assets announced earlier this year on small business medvedev said social and manufacturing sectors will be exempt for the next two years from plan tax increases. we must find an opportunity to soften the impact of the measures on business and decided on a two year transition period for small firms in the social and production sectors they will have a lower level of insurance payment of twenty six percent this year i signed a decree for the list of strategic companies to be reduced by five times the main goal is to increase the efficiency of these companies to attract additional investment and to use the income to modernize the economy all norm core assets should be privatized the authorities should not factories newspapers or ships everyone should stick to their own business. and let's look at the

markets european stocks are higher with banks among the leaders the footsie is up point three eight percent led by gains and around point point seven percent for the royal bank of scotland and one and a quarter percent for lloyds banking group the german dax is up point eighty one percent with deutsche bank up one percent. meanwhile in russia both indices are up over a quarter percent to be and rising after each close to a half percent of my six year old kallie shares fell the most in almost four months after subsidence at a rail link to the company's main potash mine however lukoil gained over two percent on the r.t.s. . and russia's largest independent oil producer raised profits twenty nine percent in the first nine months earnings came in at around six point eight billion dollars under international counting rules lukoil credited cost controls were generating record free cash flow. and despite monday losses

alexander juric off from phenol is positive about the russian market he advises to pay attention to financial and energy stocks we are looking on the banking sector because we can sirius the best bet on economy recovery which we believe now in the second sector we are going to. get is because of drugs on the relation in comparison with the cigarette on the russian market or were all we are positive by the end of the year we are waiting for one thousand seven hundred five on our dance index so by the end of the year within the whole year oil market these looks will work than any other. market difference basically if you compare to break. countries and if you compare the relation of the market we can see that within twenty four thirty percent discount comparing two. to become true. and euro

said and i'll go a power company controlled by all of their pasta has postponed its listings to complete a deal with china's yangtze power. better go is expected to launch in roadshow this week to promote its i.p.o. in hong kong instead it will focus on a bid by china's yang c. power to invest over one hundred fifty million dollars when the listing eventually takes place superpower is a subsidiary of china's state owned three gorges corporation. and the e.u. has agreed on an eighty five billion euro bailout package for ireland but that is still only a fraction of the money the banks in ireland have lost and many doubt this sums enough to halt the crisis the head of london school of economics told business r.t. that the bailout package is credible but irish banks will have to give up their global ambitions. rest of the european union are now standing behind the irish government the question remains however what is the future for the

irish banks because in the past they were very large they did a lot of international business particularly in the u.k. and my own view is that so over that we will have to see a significant contraction in the activities of the irish banks and they will have to go back to being essentially local domestic banks because this adventure that they went on overseas was a failure last week chancellor merkel made a strong quote she asked if politicians had the courage to consult the bankers and bondholders to make those who took the risks share in the bailout how comments were barely reported in the western press why is this a touchy issue because if you say that's what you are thinking about people in the market react to it immediately so this is not something that you can speculate about you either have to have a clearly worked out plan which involves

a debt restructuring which is for everybody painful maybe but at least equally painful if you have that plan and you can do it you could do that for greece or italy for portugal you could say we're going to have a standstill and over the weekend we're going to work out but everyone's going to take a haircut that's possible what you can't do is speculate about it is this still a threat of a double dip recession in europe and should any additional losses be taken i'm not personally concerned about a double dip in the center of the european economy if you look at what's happening in germany which remains by far the largest economy the economy is moving ahead really quite well the french economy is doing ok and the british economy is also recovering actually rather better this year than people expected to. problem is in the periphery if you like the southern european countries and including ireland

where they lost competitiveness during the years the first decade of the euro particular the southern europeans did and they now have a fundamental structural problem they have to try to improve their competitiveness which unfortunately within a single currency zone means they're going to reduce their wages and reduce their prices and that's what is going on and it's very very difficult to do and that's all the up there is for this hour you can always find more business stories on our website that's our to dot com slash business stay with us.