wealthy british style. margetts. find out what's really happening to the global economy in this report on. the aftermath of russia's the worst river disaster in decades as the bodies of over one hundred people including many children have been recovered from the volga river was continue the search for. the american resolve shield over europe remains the main up obstacle in russia u.s. relations as moscow wants legal entities that it won't be talking to. and that the eurozone economic crisis deepens as ireland's debt is downgraded to junk. the country may need a second bailout. plus in business now as they score points and i

put the market but it's a break we have more on that in twenty minutes. a very warm welcome to you this is r.t. live from moscow on the reception revelations keep coming in about the ill fated avoidance of the sunken pleasure cruiser on the volga river as a former captain says it was technically dead long before sunday's disaster over one hundred people are now officially confirmed dead after that went down in just a matter of minutes in the republic of tatarstan. and has the latest from the scene we warn you may find some of the images in his report disturbing. at the moment two hundred divers are working out in the volga three kilometers from the bank in shifts searching room by room inside the sunken bulk area pleasure cruiser and

behind me because riverport the number of flowers and cuddly toys and candles that are piling up against the walls of the river port here continues to grow over there's also another feeling growing here was jealous of grief and that's of anger and questions increasingly growing as to the revelations that keep an emerging about the ship just earlier here at the river port a former captain off that ship the bulgarian came and revealed some alarming details about the ship's life before its last voyage yeah you're pretty well i became captain of the vessel in two thousand and seven the ship had been renovated for a while before that there were big problems with the engines and power generators repeatedly mention that to the management and even had an argument with them these debates will continue as to what caused this tragic sinking but it doesn't do anything to relieve the grief here on the banks of the volga. this is the happy

scene that should have been 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. 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 to get. for a year she never had arguments with anyone she was a very kind girl and was always ready to help. as divers reached the playroom of

one of the bokhari as upper decks they found the bodies of the children that had gathered there just before the boat sunk. once inside the boat the by ideas were everywhere again with horrors and cabin and we were lost to the world wearing the life of us divers now have the awful task of bringing the bodies to the surface those left behind can only wonder at how fast their families were torn apart on which the bombs our colleague was on that ship should mention a cruise together with her family husband five year old son and it was there she was pregnant and was delivered her second baby in august is not 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 she lost a mother and father we're all but will have to look after and she's only one and

a half years old to tell her 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 electricity failure that stopped any s.o.s. or evacuation instructions going out criminal cases have been opened into why two ships passing straight after the sinking didn't stop to pick up a single person and into 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 tom barton r.t. . and on our website r.t. dot com you can read the account of one man who alone saved almost eighty people from the book daria many have praised the captain of the ship that stopped and helped the stricken pleasure crew say he modestly points to his crew and passengers as the real heroes he was also quoted saying that no one was untouched and the

people rushed to help without hesitation willingly giving their clothes to the wounded but as more on our website that's what i thought come. to you with r.t. now washington's proposed missile shield over europe remains the stumbling block in russian and american relations that's according to foreign minister sergei lavrov who is now in the united states moscow wants a legal guarantees that the shield will not target russia and argues that nato is on a willingness to provide them there's little to ease the tension that he's going to check out as the story. u.s. missile defense plans in europe are of course up for discussion here in washington and foreign minister lavrov said russia for meagerly 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 analyst explained that this urge that russia has been 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 spending towards its borders but he did it can do its continued recruiting new members of the bottom line is words are good but words in a legally binding agreement are that our 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 threats on the ground being created on the basis of a miracle national design of the civil defense which was not to accept that there's a reasonable way to respond to what is received as being the purpose of the system so we want to stick to the original that there would be no parts of the system which would create risks for the strategics the good and soon for the but then short and strategic stability here and then was through the due course and

some of 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 participate but it can't be a joint project because russia is not part of nato to that moscow says if that's the case let's base our relations on agreements not just words. right there were four minutes to laugh it off will be meeting with president obama and secretary of state clinton later today i will be keeping you up to date with developments. if british prime minister david cameron is calling for an investigation into allegations that victims of nine eleven were targeted by reporters it's the latest twist to the phone hacking crisis that's engulfed report murdoch's media empire as scandal because global it's claimed that journalists try to bribe new york police officers for access to victims of voicemail u.s. senators are also now calling for their own investigation into news corp meanwhile the british parliament has it should rule the vote calling on the media mogul to

drop his buyout plans for the country's largest cable t.v. broadcaster b. sky b. and to discuss this we are joined by tony gosling a u.k. based investigative journalist. good to see you so journalists hacking into the voice mail of terror victims of it doesn't need it sounds pretty outrageous let's try to look at the broader picture if journalists can just ride their way to access private information does that make all of us a partner. well i don't think it was one of the things that david cameron has been trying to do is to make out this is all journalists that are doing this and this really simply is not true this is one of the tactics he's using because he's very very close to the murdoch empire in trying to spread the blowing and actually it's really something which is very much focused around the tabloids of news international but also other newspapers in the murdoch empire and the whole focus of this story seems to be shifting slightly away from the. individual private

investigators that were doing this hacking commissioned by the murdoch empire to the list of something like four thousand names which the police have had since about two thousand and forty thousand and five and yet they probably facie evidence of criminal activity by these individuals and. by the murdoch empire and yet they've not acted on it and i think this is really where the story is going is and now people are starting to ask questions if the police have got this private facie evidence of criminality why haven't they acted further they would tell you that effectively they decided not to investigate themselves and this is now become the focus i think here in britain of the story where we see lots of scotland yard detectives basically coming to an agreement and of course these people have many of them have been paid by the load of him or to not investigate and so the regulation is completely gone now if we go back to nineteen ninety seven this is december

ninety seven the chief commissioner of metropolitan police or paul condon actually told the home affairs select committee that they had between one hundred and two hundred fifty corrupt detectives in scotland yard but that there was nothing he could do about it because they had more money imbedded barristers than he did he knew they were corrupt but he couldn't sack them they had better not little help phenomenal what you're saying here are hundred to one hundred fifty corrupt investigators here a list of four thousand. name heading out are being sought after by these journalists as well suggesting a media mogul model who's news empire definitely facing up to some serious pressure is it conceivable that it could be brought down by all of this and if so how would that affect the global media environment. well it would actually be very healthy i think for the global media environment certainly because of the expanding nature of this of this police investigation now it looks like a proper police investigation for the first time into this it could well mean that we see rupert murdoch's empire in britain crumbling collapsing simply because you

know large amounts of his income which comes through advertising almost every day more people are withdrawing advertising in endorsement of the murdoch empire but just to get back to the police side of it because the police simply haven't done their job and this is becoming absolutely clear now back in two thousand and four this book here which is the untouchables dirty cops justice and racism in scotland yard was published in britain and what it does is it actually names john yates and it also. names andy hayman two senior people involved in this whole fighting hacking case as at least potentially anyway corrupt police officers that paul condon was trying to get rid of now it seems that we've got a kind of culture of impunity in scotland yard and combine this with the really criminal activities news international this is absolutely astounding and this is what this judicial inquiry is going to have to dig out and the sooner the better

and in a very murky culture of impunity lets out our attention to another high profile case to do with the disclosure of information of course the extradition of the wiki leaks founder julian assange what's your take on the sex assault charges filed against him in sweden are the images. well let's not forget that actually a surname still hasn't been properly charged with any crime in sweden this is the crazy thing about this entire case they want to. extradite him for questioning he hasn't been properly charged and it seems that the european arrest warrant has been used for this is really the kind of thing that you would expect to be used in the most serious criminal cases you know a really serious crime and yet there hasn't actually been any kind of proper probably face is the evidence presented in sweden to show that he has committed a crime this is just he's just a very basic suspect i would draw a comparison with what we've seen in the dominique strauss can buy a myth case and that is that this looks to me to be some kind of sting operation so

the political people that don't like what assange is doing a chance to get at him and he's becoming quite clear now that the us can they may be actually no prosecution finally in new york against him and i think we may well see the same with the signage and it's i'm glad to see that the british legal system is tying up the swedish lawyers in knots it seems at the moment in order to stop a songe being extradited i don't think we will see these extradition but it is absolutely appalling that he's being stopped from actually operating what is probably the most important publishing website in the world right now you know as it is. how you tie a sergeant and strathclyde together forgive me for interrupting but really running out of time here very briefly very short time if indeed it was extradited. to the states. yes of course he would i mean the reason that sweden is being used is because this is a stopping off point for the u.s. at least that's the pressure that's being put on let's not forget that the guy it

seems originally leaked this material that is bradley manning from the united states he has if you have seen pictures of him he looks like he's been tortured now is this what they're going to be doing to a scientist well if they go back to the united states i dread to think so and it's a kind of perverse side to all this if i was involved here i think the science is one of the one of the most important publishers in the world should be given and i would be but unfortunately not being seen. harassed and harassed and i'm glad to see the british legal system seems to be slowing that whole process down as much as possible investigative journalist twenty gosling are based in the u.k. thank you very much. but all of the explosive mixture of media and politics in the hacking scandal that's gripping the world's attention is also discussed in today's edition of cross talk or you can join people of eleanor's guests later today but for now here's a quick preview. in this particular case with news of the world it looks more and more like you had reporters and editors who are engaging in criminal conduct there

is no concept of free press anywhere in the world that enables journalists to break the law if someone hacked my voicemail i would love to see them in jail but if you look at the criticisms that are being leveled at murdoch it goes far beyond that people are using this as an opportunity to attack him for his politics and for a straight and see as far as partisanship. and you can not cross talking about a two and a quarter hours to see the eurozone has been dealt a fresh blow as our debt is downgraded to junk status by moody's credit rating agency that's fueling concerns the country could need a second bailout this comes a week after portugal's rating was also reduced follows speculation that its elites who might soon ask for a helping hand pull enough for northwest england has told r.t. that the latest developments prove that the single currency union is simply not

working. this was always about politics it was not all economics the idea that you could have a colonies in the mediterranean in line with economies like germany fast growing economies like germany was never going to read the only great to get out of this mess is for those countries to go back on their national potencies to devalue their loss moving. on to exports going in at the moment they can't use their debt because they couldn't see these are controlled by frankfurt they're controlled by the european central bank they're not controlled by athens or lisbon or even thought of the people out on the street in athens and i just wonder how long it will be before the people who are out in the streets in rome run in lisbon and talk about this thing is contagious this thing will move right across the continent specifically in the mediterranean and the bigger issue now facing the european union is italy italy is the third largest economy in the eurozone of late largest economy in the world i think the eurozone can actually cope with greece and portugal the smaller economies

if italy goes the whole thing could cave in because if italy goes italy's economy intertwined with spain's and spain and italy go then we are in serious trouble but your zero is an extra completely to the whole project and it's linked to the european union if the eurozone goes i quite frankly can see this whole thing breaking go up that is why they're so desperate to keep it that's why this was desperate to see the real in the u.k. are fed up with bailouts are the only way for these countries to survive if they break out of this prison which is the eurozone. you without a lot from moscow a few minutes away now from the business parts of the world see fastest growing economies india and china appear to have reached an economic faceoff the two countries have huge mutual exports but on india's part it's mostly raw materials while china specializes in manufactured goods to trade imbalance is putting new delhi is a growing disadvantage she's preassure explains. it's 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 and asia and beyond where india led the way in i t and back office is china research head in mobilizing its masses onto the factory floor fuelling a huge trade deficit and a reality india is forced to accept. we're do things that we india oppose world class space in nuclear programs yet struggles to create every day 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 than like india buy it back then we make a profit of ten percent more in the international market than the domestic market ironically it's indian officials see that's part of the problem with supply rapidly

outpacing domestic demand. and 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 course here in the cotton fields of india lies the heart of the indian chinese trade relationship more than seventy percent of the outsports for india to china are wrong materials like cotton however ninety eight percent of the outsports in china to india are manufactured goods if india is selling well then why should it matter well having a twenty billion dollar gap with your next door neighbor puts power in their hands and makes jobs in savings dry up at home and economists know that only by sewing up a successful manufacturing sector will india's large unskilled workforce be soaked up but it's a blind spot that's leading to blind faith. different and we should focus on different models and different views of the best of luck to trainees and i'm sure

they'll do it even so it's not in convolution of you're looking at india growing in jail and not growing we will continue growing and you know it's a very different world seen future indian traders seem satisfied because the set up means the mind keeps rolling in what comes out. the benefits in exporting is that we get a bigger volume of course and we also get paid on time but new delhi is worried knowing it has to cut its cloth before its economic run of luck its own up. there are t. indoor india. and you can find more from aarti on our website for the latest news and blogs and expert analysis here so we got him fired up for you right now a star struck from the stars how you could soon be able to see a picture of yourself taken from orbit with two special cameras installed at the international space station plus. from catwalk to cat fight there was anything but model behavior at a russian or passionate show as

a world of beauty turned out i think find out the full story behind a high heeled hostilities doughty dot com. they've already suffered months of civil war but now hunger could be the latest threat facing people in libya tripoli says the violence has meant that not even a fifth of the country's harvests have been gathered at one of the dire consequences of fighting continues over the next few months steven ground from a front page online magazine says nato has rushed to intervene in libya looks like a major mistake. the whole thing's backfired on both causey and i need to or they thought was going to be an easy victory got caught up in. in their own human rights . going to the u.n. waging war of the un and this is the result you know there's no decision it's costing tens of millions of dollars civilians are being killed libyan civilians there to show that the war was never a go but checking libyan civilians it was

a go to ensure they all stayed safe with their britain france. well let's have a brief look now at some other international news for you here and thousands of protesting in the egyptian capital cairo for the six day running by demanding the removal of the military council and threatening to expand their city and see other cities demonstrators also calling for alstott president hosni mubarak and his aides to face prosecution for the killing of hundreds of protesters during the uprising in february the military has warned protesters against using violence but said it wouldn't try to stop the rally. the half brother of the afghan president hamid karzai has been buried in kandahar. because i was murdered in his home there on choose day the taliban is described yourself the nation as their biggest achievement in ten years shortly after the ceremony two explosions were reported in kandahar i don't regional governor narrowly escaped a roadside bombing on his way to the funeral. cause i was often accused of

having links with the illegal but highly lucrative afghan drug trade by the man responsible for the fight against drugs in russia says a decade of a military failures by coalition forces in afghanistan is only contributing to the problem you can see the full interview next hour here on our team but here's a brief look. to begin with this september we'll see the tenth anniversary of this interference it's longer than world war two but the situation in afghanistan after something crucial and even senior officials like general petraeus for example your command your military operation are going to start with the sense of the number of armed clashes there increases year after year it said that drug production cannot be fought because the damages the security situation in the country so it's a kind of closed in this respect it would be worthwhile to note the nato operation in helmand province which produces the most of your opium poppies going to operation was presented as a brilliant military success thank you very considerable kilometers and pictures of the province were reportedly cleared of insurgents by the production of opium but

it was a little stars. just a few moments are about to get some arena with. little pellets the international sanctions doesn't take place in prose on july ninth and tenth. this is going into lectures by russian designers. of the legacy of central russia. this is a living for children's fashion shows slums like presiding over the festival. last year's resolution. this is. how long here on our goal the spreading near record highs as investors wrong for

safe haven from the debt crisis spreading across europe. believes this strengthened precious metal will continue until the politicians find a workable solution. gold is now the only currency even though ironically it's not really a currency that is validating your your long term investment criteria is in the sense that this is a currency that cannot be valued by printing of money i think the reason why gold is going out right now is that everyone seems to sense that the political solution once again becomes throwing more dead at a dead issue we need to change her stary that will probably take some pressure off the rescreening goal but goal is going on today tomorrow and for the next week as long as that politician play this game of hide and seek and no decision making. despite the nervousness in europe in fact in the russian market he don't lesson from that some capital still believes there are good stories to trade here.

speaking about sectors i do think that in this environment you like to see more support for defensive names like telecoms like you tube it was all you could order what would you take was to afford expensive but nevertheless the more liquid name was hargrove you're holding my. breath you know in this kind of a rut of it but nevertheless the rules about the elections to go for a lot of utilities tend to be closer with high political risk. telecoms though you're going to look really interesting it's going to get beyond this year i just think it's going to have a long listing and really that we're seeing i mean anything interesting about names i know this is something with a group of friends are beautiful for a good story. and let's have a look at how the markets are doing in europe they are mixed this hour after a downgrade of arlin by moody's ratings agency kept suffering that war is in focus for every group is up three point six percent in london making it gets hot again there and that's as the luxury goods maker reported revenues up thirty percent in

the first quarter and here in moscow the markets have turned negative as sentiment remains on certain the white summer trade let's take a look at some individual movers on the my sexpert bank has slipped into the red and the losses are limited by an earlier reports of one hundred and eighty percent jump in first half net profits were all kali's up more than one a half percent after the e.u. left of course on potage imports from russia and coal miner at a spot space continuing its rally on expectations of a takeover bid from v e b. fellow who may sell stakes in several companies to russia after accepting a bailout for its crisis kate economy these will include gas pipeline companies and to refineries russian technologies corporation and say wrong gas from our among those interested in the assets minsk received an eight hundred million dollar bailout last month as the cash strapped economy broke through its currency reserves

. all that's all the business news for now join us for another updates in about fifteen minutes in the meantime it's the headlines with henri. hungry for the full sun we've got it firsthand the biggest issues get the human voice face to face with the news makers.