wealthy british style. that's not on. the. market why not. find out what's really happening to the global economy cars reports on. the graham search goes on the bodies of one hundred victims including many children have now been recovered following russia's worst boating disaster. a former captain of the bulgarian says the ship was technically dead long before it set sail on its final voyage we'll bring you all the details in just a moment. washington's missile shield over you were of chips away at relations with moscow as the u.s. tans accuse of taking advantage of and a sudden sentiment to secure future bases and you are. the asian giants competition

india's huge draw material exports to china keeps the money you rolling in buy new delhi is worried it's making the country dependent on its fast growing neighbor. and china's gross domestic product at a cost of an expected providing support for that reason european markets would leave them out of joint business out there you are going to. watch in our day coming to you live from moscow one pm here on marina joshie welcome to the program one hundred people are now officially confirmed dead following the sinking of a pleasure boat on the volga river and what is russia's worst boating disaster eighteen of the bodies recovered so far are children who've been enjoying a day out with their families one old gary went down in just a matter of minutes on sunday that's how crossed correspondent tom partners on the

story for us. well ton of the divers have been trying to reach the games room where dozens of children were believed to have been trapped what have they found so far. well so far marina the divers have been working at the site where the darrius sank two hundred divers are currently working on the sunken vessel and trying to go through the roof to room they have reached the games room where it was thought i witness has said that maybe forty always even fifty children have been trapped in that room when the ship sunk now that divers have had time to investigate that room fully they say that there are significantly less children in that there still may be dozens in there it's still a very difficult and very traumatic part of the operation to remove the bodies from that room they've also been going down corridors into the rooms people were staying in and they found more bodies children and adults in those rooms so that operation

to try and recover bodies from the wreck and bring them to the surface is very much continuing as you can see behind me here and the khazan river boat port which was to be the final stop of the bulgaria on its sunday afternoon pleasure cruise many people now have gathered here hundreds have been coming through out the morning to look at the lists on the wall of the missing and dead to lay flowers and candles and hundreds of cuddly toys for all the children that have been missing however there are also a growing number of questions at this very site as well a former captain of the ship of the bulgarian who was captain in two thousand and seven came and spoke to reporters about what he thought about the condition of the ship and he said that the ship should never have been sailing that it was essential technically dead long ago let's have a listen to what he said. and i became captain of the vessel in two thousand and

seven and the ship hadn't been available for a while before that is what were the big problems with engines allow our generators but i repeatedly mentioned to the management there was even an argument. so the captain saying that the ship was already in big trouble long before this happened other events another allegations and revelations have been coming out that point to the fact that the ship was far fit for purpose for sailing there's been reports that on the the day of the voyage itself one of the engines kept repeatedly breaking down the captain was warm but he pressed on but an electricity generator failed just before the ship began to sink so that no s.o.s. could be given a no tannoy instructions could be given on how to evacuate people but emergency exits were blocked and that two passing ships also didn't stop to pick people up

criminal investigations have been opened into those various aspects of the case and new facts new revelations are not yet fully able to corroborate them but they all keep adding up to the picture that this ship was should never have been sailing on the volga in the first place all of this will come out in the course of time but for those who have lost their relatives and for those who are still waiting for their bodies to be brought up from the bottom of the volga it does little to comfort them at the moment. this is the happy scene that should have seen this ship is designed almost identically to the bulgaria in this room almost identical to the one that children on that ship played in but for whatever reason their fate was very different. to in the end as crowds gathered in remembrance of those killed by the sinking of the volga pleasure boat it was the

younger victims that seem to cast the longest shadow. these schoolgirls had lost one of their classmates. we started together for a year she never had arguments even one she was a very kind of girl and was always ready to help. as divers reached the playroom of one of the bulgaria's of sex they found the bodies of the children that had gathered there just before the boat sunk. once inside the boat the bodies were everywhere again the chorus and kaberle of yours most of them were wearing the life of us divers now have the awful tasca bring the bodies to the surface those left behind can only wonder at how fast their families were torn apart.

our colleague was on that ship she went on a cruise together with her family husband five year old son and it was there she was pregnant and was to deliver her second baby in august his new found yet only her husband managed to survive she and her son died. and for those children left suddenly without parents a terrible truth they may not be able to comprehend for years when she lost her mother and father we're all but will have to look after her and she's only want to hear. you know if it turns her and if we can't she wouldn't understand but there is much that people don't understand about this disaster reports about the ship's engines failing about blocked emergency exits and the like tricity failure that stopped any s.o.s. or evacuations struction zz going out criminal cases have been opened in july two ships passing straight after the sinking didn't stop to pick up

a single person due to why the aging vessel was allowed to sail in the first place but for those who have lost loved ones the case will never be closed down buxom city. and watching r.t. live from moscow still have for you this hour deciding his fate will continue covering the london high court session where troll rule whether the extradition to sweden are there with the leaks founder julian assange will go ahead. the fury over the phone hacking scandal gripping britain goes international as the u.s. senate takes aim at rupert murdoch's media empire. washington's plans of missile shield go where you are has been the way both as of main irritant high a wide range kassam and russian american relations by foreign minister sergey lavrov the u.s. has brushed off moscow's concerns over the project maintaining the shield only to protect against attacks from rogue states but some say it's taking advantage of

posts that it is to see through and he's going to check out reports. u.s. missile defense plans in europe are of course out for discussion here in washington foreign minister lavrov said russian for him legally binding guarantees that the european missile defense project will not threaten russia's security there have been words before washington has many times said that the system would not be against russia but moscow needs to have it on paper some analysts explained it this urge that russia has for getting everything on paper with promises in the past that were not fulfilled for example when the soviet union collapsed russia was assured that nato would not be expanding towards these borders but he did it can be continued recruiting new members of the bottom line is words are good but words even legally binding agreement are better foreign minister lavrov said that's probably the most irritating issue in the relations between the two countries and there is a huge desire to live it behind and to rather turn it into an area of cooperation on the ground that being created on the basis of. national design of missile

defense which was not accepted as a reasonable way through storms what is received is dealing with the risks of going through the system so we want to stick to the original agreed that there would be no parts of the system which would agree for the strategic stability and for the but the. strategic stability here in the midst of the g. course and the participants of the system russia has offered building the missile shield in europe together but that offer was turned down nato says russia and protests have paid but it can't be a joint project because russia is not part of nato so that moscow says if that's the case let's base our relations on agreements not just words but shield itself according to the state department will have the whole of europe covered my colleague alex the euro shifts he went to romania where the u.s. plans to build a radar and found out what it means for the local population take

a listen to the voice. the romanian village of their cell still cannot believe his luck after washington picked this place in romania sportiest region to locate a new raider base locals have been all smiles about hypothetical investment all of this over when we first went to the u.s. we build a retard base here we were a little bit scared police so we were informed it's hard being this piece would mean better infrastructure and possibly jobs and throws locals earpiece in there so little was deserted for a long time now it will have a second chance. proposed to consist of radio facilities and interceptor rockets it is scheduled to be built by twenty fifteen and will become instrumental in president obama's european anti-missile defense shield in the one nine hundred fifty s. an airbase in the town of davis in romania was used by the soviet forces now with washington's plans to place a radar station here locals have

a joke that should booker us change his foreign policy again the place will be occupied by the chinese similar plans were no joke for some in other european countries thousands in the czech republic and poland protested against the initiative to have military bases on their soil with mixed results while the first line of interceptor missiles was eventually placed in poland the czechs suddenly pulled out of the end times. in romania there have been no demonstrations like that at all there is a historical factor that makes one of the most pro-american countries in the world and has been explained by our ancestors the better things and the companies came from the east everybody was expecting the american to rebalance the whole thing so there is this sentiment and this feeling that. the present of the us is contra balance and specifically u.s. is come from balance. the presence or influence of russia

in the region if there is the real case then what security would this new shield provide and most importantly difference from whom but even two years since barack obama restructured the bush era european shield scheme both schools delight over the us president's move was replaced by feelings of discontent and concern that's all it. really is and we're worried that washington does something before informing us of these actions it is unclear what exactly they're creating as soon as we understand that this isn't going to be used against russia will have legally be. these tensions. despite being described as fruitful the recent summit between president with a different need to invest it isn't so cheap though consensus on missile defense experts say the issue will remain a thorn in the side for both more score in washington at least until next year when

the next may to russia council meeting will be held in chicago by the time construction of the raider facility in the world would most likely be in full swing let's see reporting from various bucharest in romania. we can lease founder julian assange continues his fight against extradition at the high court in london sweden wants to question the world's most famous whistleblower over sexual assault allegations but his supporters fear extradition to the scandinavian country will open a way for the u.s. to get its hands on him aren't his lawyer and is covering the trial from outside the court building. today is the second day of was expected to be a two day hearing over the appeal of juvenile song say but whether he's to be extradited to sweden we're expecting wednesday to be given a bit to have agents on the hall full of the swedish prosecutor's office since yesterday was given a good two. defense i phone as he left the court last night completely tight lipped

he didn't wave to any of his supporters who was standing outside the court he just walked away which must be a direct instruction from his new legal team that he has clients especially to deal with a steering a new legal team seem to taken on a new strategy that much more conciliatory about this case a much more concerned with european door and specifically the european arrest warrants under which students request to be extradited has been requested the legal team all getting that the european arrest warrant is invalid because the discrepancy essentially between the allegations that have been made and the testimonies told the two alleged victims that a full count to be considered is ranging from coercion and rights up to break and a defense team has said that there is nothing in the victim's statement that to that and that you know how pivotal and so a lot of consent in those statements and three of the poor allegations they say

wouldn't even amounts to crimes in the u.k. so it's very much the approach that they're taking hold to they are drawing attention to the fact that us almost has not been charged in sweden that he's wanted that merely for questioning and that's a concept the prosecution stone says has he actually been accused of anything and if not then the european arrest warrant is in we may be able to expect to budgets at the end of wednesday but we may know that the judge may refer the decision to another day he may put his off and give decision a few days or even a few weeks' time we're hearing. florida is reporting there from london one can find more from our to our web site including the latest news. an expert analysis some of the stories online for you cood household world famous pass food chain turned into a grocery store officially at least not in russia serves up a smart move to save itself supersized tax bill. also third time lucky a russian rocket finally gives six americans that all white

a lift into orbit after two days of technical delays this morning are to dot com. and the world's two fastest growing economies india and china appear to have reached an economic faceoff the giants have huge mutual export amounts but it's mostly wrong materials on india's part while china sells manufactured goods the an even trade is putting new delhi at a growing disadvantage as appreciator explains. its dragon versus tiger in the battle for asian supremacy india and china are two of the fastest growing economies with the world's largest population vying for power and prestige in asia and beyond where india led the way in i t and back office is china race to head in mobilizing its masses on to the factory floor fuelling a huge trade deficit and a reality india is forced to accept is normal as member to hobble the.

world do you remember actually in. india post world class or use in nuclear programs yet struggles to create everyday jobs making every day goods something this cotton tycoon knows all too well it's cheaper for him to export to china to get the job done and let india buy it back. we make a profit of ten percent more in the international market in the domestic market ironically it's indian efficiency that's part of the problem with supply rapidly outpacing domestic demand. if you don't export then the cotton prices in india will crush and farmers will suffer as they won't get even the original price this will increase the quantity of cotton and even the indian government is encouraging the export of cotton can the cotton fields of india lies the heart of the indian chinese trade relationship more than seventy percent of the outsports from india to

china are wrong materials like cotton however ninety percent of the exports from china to india are manufactured goods if india is selling well then why should it matter while having a twenty billion dollar gap with your next door neighbor puts power in their hands and makes jobs and savings dry up at home and economists know that only by sewing up a successful manufacturing sector or india's large unskilled workforce. but it's a blind spot it's leading to blind faith we are different and we should focus on different models and the. best of luck very. different scene from indian traders seem satisfied to go because the set up means the money keeps rolling in. the benefits in exporting is that we get a bigger volume of cotton and will to get paid on time but new delhi is worried

knowing it has to cut its cloth before its academic run of luck is sewn up preassure there are t.v. in the air india. well the scandal surrounding rupert murdoch's media empire has gone international after u.s. senators called for their own probe into the news corp company follows allegations that some of morris newspapers the tampa the bribed new york policeman for access to the call records of nine eleven victims in britain the outrageous during explosive details of the sheer scope of the hacking from royalty to murder victims begin to set in. and there of the day online news service believes a scandal will grow to threaten murdoch's very hold on his entire media empire. but where this does become a question for national security is the idea that police assailing private phone numbers and private contact details of people like the royal family and the prime minister well it is not necessarily the same to sell these things to a newspaper as it would be to sell them to

a terrorist organization but if you do what you may be able to do the other so it's very serious the whole edifice of news international is deeply intertwined with the street machine all that has yet to come out and will cause a lot more headaches but i think what people. expecting is for the scandal to go up through the chief executive of news international to james murdoch and james murdoch himself and many people say should step down whether he's for. this skate without serious damage is also doubtful although i don't think he's going to retire or leave the company. now let's take a look at some other stories from around the world this troubling viewer has been struck after moody's one of the big three credit rating agencies downgrade of ireland's debt to status the move is a warning to investors to steer clear as a bailed out economy verges on the brink of another crisis the same agency cars the

political and economic firestorm last week but it did the same to portugal decorating it also prompted e.u. finance ministers to value to levy more regulation on credit rating. again conceits . french lawmakers have voted in favor of doing the country's military operation in libya and the decision was supported by region where you have the lower house of parliament in one french officials claim colonel gadhafi is representatives have told him that he be leaders ready to discuss surrendering power. the taliban's biggest achievement in ten years and that's what a group called the assassination of the have brother of am going president karzai had a kind of our province a volatile region on the border with pakistan kerry event die who back in two thousand and eight was held by the taliban for forty five days since the killing leaves washington with no one to rely on when it comes to securing their region

while the karzai it was not just the governor or the shadow governor of kandahar he was the most powerful and the most popular person throughout all of southern afghanistan this shows that right now with the canadian troops pulling out and with the u.s. trying to you know focus on the eastern afghanistan feeling the south there is now a vacuum who is in power who can the west rely upon. the taliban have claimed responsibility for this but it's not clear that the taliban are responsible it could very easily be a power struggle i've also heard and others have reported that he was responsible for perhaps starting to bring the taliban together with the united states to negotiate therefore someone would have had a definite reason perhaps pakistan perhaps the taliban to stop this we don't know yet who is responsible because they killed the person who had all the information.

that was apparent journalist and author gerry event there well time now to take a look what's happening in business dimitris here with us. well you know when welcome to business the western world is sliding into an abyss of debts if the pessimists are to be believed and even if the worst does not happen most analysts are predicting plentiful returns from developed markets over the next few years now actually investors are looking for growth with the sentiment switching heavily towards emerging markets such as china india and russia so more on this i'm joined in the studio by ben chandler of present h.s.b.c. hong kong thank you so much for being with us because so do you think it's a good idea right now to switch interests from developed markets to emerging markets like china but he's a good idea is to really cause you to diversify in sort of the principal folios from people markets currencies into the r. and b. which is i think is a growing currencies it has been used for trace atoms but i think it will be used

for investment as well ok so how do people actually invest in the you want if it's not a fully convertible currency right that's true already it's not yet forty convertible for the time being however we can see there's a very developed offshore market in hong kong currently five hundred fifty radios r. and b. in hong kong with a range of. products in hong kong reports it's time to spawn etc so this in hong kong people can invest with though we are going to be fully convertible people going to forty trade already in hong kong do you see any progress of the liberalization of the yuan and in the future. i think that really we have seen the directions of for the horizon to the currencies ever since two thousand and nine when china announced a policy of arbitration at the most but development has been growing very quickly through the next half will be r. and b. with our investment and foreign direct investment which we are likely to be

announced by the end of this year with that there will be more investment options well do you think the. if the u.n. is actually liberalized say hypothetically we see it one day completely unpaid from the dollar wouldn't that rid the chinese companies of the competitive advantage that they have right now well i think in trying to plan if you look at the economy is the structures of economics in china china will be moving from a pure exporting countries to our economy which will rely on domestic consumption as well yes clearly written in the trial five years back so i think to answer the questions of whether there will be actually export no because you can muster consumption will what will compensate for any loss in the economy and that's going to be directions all right thank you so much ben chandler is president of h.s.b.c. hong kong thank you. all right let's move to the markets we have

a couple of minutes left in the program is looking for direction pretty much all session long now it's flat the positive this hour this is after investors still taking in the increasing u.s. the truth supplies and crisis in europe are they may hold to demand for raw materials therefore gains are limited to just twenty seven cents on light sweet and eighteen on brant. in asia stock markets are positive after data showed that china's g.d.p. expanded at a faster than expected pace on from property stocks again as a result we did see china overseas lead an investment adding more than six percent and one point of financials are also pretty strong with the chinese construction bank in the lead and japanese stocks saw also on the rise though moderately as a strong yen is dampening sentiment. european markets are trading in the black gains however are still limited after a downgrade of ireland by moody's investor this is keeping those sovereign debt worries in focus burbery group is up three point seven percent in london

a q one of the top gainers this hour says the luxury goods make a reported revenues up thirty percent in the first. and after three hours of trading is the picture in a rush and it's mixed the r.g.s. up about quarter of a percent my six down a notch second look at some of the major movers on the my sex burbank is posting a very moderate gains of point one percent of the showing one hundred eighty percent jump in the first off the net profits but that's on the russian accounting standards but i'll tally is up one and a half percent still that's the e.u. lifted their quota of sheer boredom from russia and a coal miner response has been sitting us rallies up two point three percent after gaining two and a half the previous. business out so he will be back in fifteen minutes time with nothing for headlines with no right.

to the. wealthy british science doesn't need some time to. find. the. markets why not. find out what's really happening to the global economy is cause a report on our.