rupert murdoch's media empire abandons its bid to take over britain's largest broadcaster as a frenzy over newspaper consumers politicians. america's threatened with a credit rating in the midst of the budget talks about italy the world's largest economy scramble to avoid going down the plug hole with. the official death toll from russia's cruiser designs to rise to one hundred eleven people. make a final attempt to find those still missing. the owner of the company that rented the boat galleria for its final voyage and the state shipping it said it was fit to

sail have been arrested bring you all the details in just a moment. with r.t. live from moscow where it's now i just after two pm i'm a recent show welcome to the program british police have announced a seventh arrest over the hacking scandal surrounding rupert murdoch's embattled media and it follows a statement from its news corp company saying it's dropping its bid to take control of britain's largest satellite broadcaster the move is intended to head off a public outrage over allegations that several of his newspapers were engaged in a rampant phone hacking scandal has grown to include british government and police officials who stand accused of complicity and corruption across the atlantic shocks us senators are calling for a probe into allegations nine eleven victims are also talking newspapers and is

laura and i reports the media mogul's rise over the decades offered plenty of warning signs over what was to come. rupert murdoch's push to expand in british media has come to a halt public and political rage over phone hacking has sports news corp to drop its bid to buy satellite broadcaster b. sky b. but some say he's already killed the british press and they were saying it's far back as one thousand nine hundred eighty one that's when he went on a media spending spree and bought amongst others the world renowned times newspaper and years international has been playing a toxic part of our public life for so long but it worked under his ownership circulation just kept on rising in a market that killed off others and sky t.v. a loss making and obscure satellite network rocketed to become the biggest player in the u.k.'s pay t.v. market i do admire rupert murdoch because he's

a risk taker when he bought the times and sunday times of london the newspaper business was absolutely in peril in the u.k. mostly because of the unions and because of some other economic factors he turned that around. basically there are people who will say that he saved the newspaper industry in london because of the whopping revolution a night in nearly six but now it's clear that success came with a heavy price tag morality murdoch's journalists kept the ratings high i violated and exploiting the vulnerable they hacked the private voice mails of families of dead soldiers and murdered children essentially we've seen criminality and invasion of privacy on a staggering industrial scale not even the rich and powerful could escape then chancellor gordon brown's baby was splashed over the front page of the sun his illness a sick headline royal family phones were hacked the scandal even goes right to the

heart of the police force senior police officers were bribed by journalists for to pottstown sensitive investigations private lives were made. like now we've got piers to be somehow to gordon brown's private life you have to start you have to stop what else is it of course it's not really it's not just going to use what we call blankets these are people ploy to help train information from what should be private sources like medical records tax where it will be taken fifty years to the worst fears about the british press to come true come true they have murdoch may own successful newspapers in an ailing market but their papers which have lost their greatest asset the public's trust the u.k. has lost c.c.t.v. cameras per person than anywhere else in the world i count it just in this small car park so britain's always know big brother is watching but the question now is

what's big brother watching for and more importantly who's trying to bribe him you are at it. i don't forget you can have your say on the scandal on our message board com now the question is has rupert murdoch's sensationalistic rush for profits undermined the public's trust in british journalists and i just have a look and see what's being said here one of you believes there's a jolt to the public's trust and will result in a stranglehold on both the british media and the government another believes that modern journalism has sacrificed objectivity for the sake of sales i want to have your say on the issue right now just i don't know if you want. are you watching r t live from moscow it's good to have your company still ahead for you this hour but israel's prime minister has to step up in defense of at and t. boycott bill which aims to support settlers. affront to democracy. but

to washington where russia lays out a new step by step strategies who want to run the neighboring terrans back to negotiating table for its nuclear. same a credit rating agency that sparked fresh panic in the e.u. has now threatened the u.s. moody's says it's reviewing america's top aaa debt rating for a downgrade citing the political bickering that's deadlocked budget negotiations in washington and even if the budget is approved it's unlikely that it will offer a solution to america's debt that's according to investor co-founder of the quantum fund jim rogers u.s. rating should have been downgraded years ago you know i don't know why they're just now getting around to it but we know that the rating agencies don't have much of a clue about anything blued is trying to save itself why didn't they tell you great portugal three years ago five years ago or greece you know they're just getting around to reality it's like the. prime mortgages they didn't downgrade anybody until it was already over they had many people that were going bankrupt right or to

strip away this is political posturing and nothing or something will happen they will announce some kind of deal it will look good on paper and maybe they will even be good for six months or so but six months from now a year from now it's going to be the same old stuff we're not going to have much progress in the united states is going to continue to go into a decline we have the united states is the largest debtor nation in the world and it's getting worse it's not getting better they have to increase again ceiling for the moment there's no question about that their choice though for the future is they've got to take an x. you know they've got to take a change so to government spending and do something about it they're not going to do that they say they're going to say they're going to do it but they're not going to do it they might announce they're going to do it for this to get the budget ceiling passed but it's not going to have any effect the public should be very worried because america's situation is dire and our debt is going up and we are declining standard of living is going to get worse we should be worried about that

. and there we also heard from american economist and radio host richard richard wolffe he says that the u.s. economy is in really serious trouble but the political deadlock over the budget could make the situation to the balance the american government can't pay its debts for a few days and that's the most that will happen and it will do a very bad job on diminishing the credit of the united states in the world economy at a very dangerous time to be brutally honest neither side neither the president the democrats nor the republicans are facing the basic issues of this economy we are in serious trouble we have very high and persistent unemployment and what we are doing is arguing over the technicalities of the debt ceiling that is going to be changed and raised as it has been every other time this theatrical drama has been rerun and meanwhile our political leaders are not dealing with the underlying problems we're

facing an economic situation that is more dire than any i have seen in my lifetime of being a specialist on the american economy and i think we're seeing a growing alienation of the american people from the whole spectacle as they watch their real situation deteriorate and nothing really is being done. same time the currency crisis gripping the e.u. has taken a turn for the worse as it's really spurred by a string of ruinous market downturns is now debating emergency spending cuts to trillion dollars the world's eighth largest economy has been struggling to remain competitive since joining the eurozone because that has spiraled out of control the fact overlooked by many and the more pressing problems of the e.u. follows the downgrade about its debt to junk status a serious blow to the eurozone as the bailout is to prop up its weakest economies u.k. people not all told r.t. that the latest developments prove the single currency union simply is not working

well. this was always about politics it was not how economics the idea that you could have a commies in the mediterranean in line with economies like germany fast growing economies like germany was never going to work the only way to get out of this mess is for those countries to go back on their national potencies to devalue their growth moving. exports going to 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 all it's been called even top of the people out on the streets in athens and i just wonder how long it will be before the people i wouldn't streets in rome run in lisbon and into this thing is contagious this thing will move right across the continent specifically in the mediterranean i'm a big issue now facing the european union this is really the third largest economy in the eurozone this place largest economy in the world i think you would also can

actually cope with greece and portugal very small economy goes the whole thing could cave in because if italy goes italy's economy is intertwined with spain under spain and italy go then we are in serious trouble. that plague sweeping the e.u. spreads to italy max keiser and stacy hope to discuss where the country's gold reserves might be making it a bigger target because reporters coming your way next hour but for now here's a preview. why four hundred hours ago. the second biggest position in the euro zone and that's the mother lode i think that's been a target all along the greece the ireland portugal those are side shows there are little micro-cap countries not much of a deal there but italy's got actual gold that the i.m.f. and the people who support the i.m.f. the terrorists as i mentioned like eric cantor they are helping to facilitate the thieving of that twenty four hundred tons of gold because that is meaningful.

without a lot from what's going to now divers have lifted more bodies from their water or into the sunken pleasure cruise of a bulgarian it brings the official death toll from russia's worst of a boating disaster now it's you one hundred twelve meanwhile the police have made the first arrests detaining the owner of the company that rented out the ship and the person who certified it seaworthy. is at the site for us. arrests have been made in the ongoing criminal investigations the first is third line in new york and she's been arrested because she was the owner of the company that rented the gold daria pleasure boat for its final cruise and it's thought that she may have known about the poor condition of the ship when she made that decision to rent it the second is yaakov if a show of here's a state shipping expert and he cleared to ship as fit to sail some time ago and

it's thought that he may have been negligent in making that decision they will stay in detention for around a month to be questioned and then the case will go on from there in the emergencies ministry here on the volga bank and the divers that are going out to the platform above the sunken belgariad they say their final effort is going to be made now to try and recover the lost parties. from from the ship and however there may be some complications with that they're hoping to finish sometime later today possibly around me day but they think that they've searched most of the ship and they haven't found all of these bodies so if they're not on the ship they may be in the water around the ship a worst case scenario maybe this some of them when the ship sank people may have unfortunately drowned in their bodies being carried by the current to worst estimate up to two hundred kilometers downstream so the search area may have to be

increased for them but they're hoping to finish this search so that two special ships that have come up from further down the river can start the operation later on to try and raise the ball guerrier from the bottom of the volga and when they can see the ship up in the open air they can try and work out why the ship sank and why it sank so fast leading to so much tragedy. i want to talk about reporting right there with more on russia's worst boating accident on our web site if you log on to our dot com you can all watch footage of the recovery efforts of divers on the boulder river and also and you were a former captain of the doom ship he says that it was in no condition to sail long before the sinking. russia has proposed a new step by step strategy towards iran's nuclear program the idea suggests making it limited concessions to tehran if it goes along with the bones of the

international community that statement comes after talks between the u.s. secretary of state hillary clinton and russia's foreign minister sort of you left it off during his visit to washington but you also touched upon the libyan campaign with a lot off saying that russia has less disagreement on the matter with the u.s. than with some european countries i think is going to result in more on this visit . with regards to leave you know both russia and the u.s. have the view that colonel gadhafi must step down and that leaves should be able to choose their future leader it's the path towards those aims that moscow and washington disagree on if you will to russia criticizes the scope of the into the foreign intervention in libya possible sees the actions of the allied forces the forces there as a violation of the un mandate minister lavrov said the resolution is being wrongly interpreted as anyone can do whatever they want for minister laughing off was also asked about why russia is blocking a u. an initiative to condemn the syrian president assad he said the attitude of the

west is exclusively about exerting pressure on one of the parties namely the syrian government and present all side in moscow sees it as sees it as the wrong attitude russia says it sends the wrong message to the syrian opposition prompting them to believe that if they remain insistent in the situation keeps getting critical of the west will come to help them the way it is happening in libya mr lavrov said it's unacceptable that the opposition resort to violence agitating peaceful protesters into a. in armed clashes and effectively turning them into a carcass the police and security forces take a listen this is a. diplomacy exists not simply and score political points diplomacy exists to solve problems and make it condemnation without proposing any solution won't lead us to any breakthrough either in syria nor in any other place there is a good example of how we are all dealing with the situation in yemen no one this trip a reason to condemn anyone or adult the u.n.

security council resolution supporting manner and other signs everyone is urging that she starts to see down and hold negotiations that's the responsible approach that we hope will prevail allow us to read more about the agreements reached during sort of a lot of officers at washington just simply log on to common plenty more there for you are so including a. monument to the first man in space and you will be unveiled right but the very heart of london. it's a happy ending for an escaped but work strip which cost public what it was what russia's kaliningrad along through article discover how the. long snake some of it away in the first place.

wealthy british style. to the global economy with. no holds barred look at the global financial headlines .

it's only twenty minutes past the hour here it was a session and the israeli parliament the prime minister himself had to defend a new bill outlawing it consumer boycotts from products from satellites rather than

occupied palestinian territory the law imposes high fines on the boycott organizers and allow settlers to sue them for compensation opponents of call it a blow to was ready to mock or see free speech. to the high court against the new bill a bill that's pushed the already distant possibility of peace talks with palestinians even. the. spokesperson for the. obviously this is not only an antidemocratic law but it also shows that in a sense in a very deep sense the settlements already lost a large part of their legitimisation both in the international community and in israel because that is the only thing that is the only reason why you need to sanction such a such petitions as the boycott petitions by your current regime in israel is not really interested in promoting a viable peace accord with the kind of skinny and this movie is not only another

bash in the face of of the chances to wear to reach a peace accord but also. in assists in a certain sense to a very strong spirit a diligent in waiting for the israeli peace camp that is fighting for the advancement of such a short. we're going to see you now let's check out some other world news for you. and i don't like the gunman who killed at least seven people and injured dozens overnight and in the early hours of the morning in pakistan's largest city of karachi vehicles and car tires with it on fire all throughout the city the violence which is really raging for five days has already claimed at least ninety three lives it was sparked by the decision of the city's most powerful political party to leave the federal ruling coalition and join the opposition. a blast has ripped through a mosque in the afghan city of kandahar during a service for the president's half brother he was assassinated earlier this week at least four people were killed among them a top cleric of the provincial council reports claim it was

a suicide bomber though the information has not been officially confirmed. israeli warplanes have bombed three smuggling tunnels along with another reportedly used by terrorists in northern and southern gaza the attack came in response to two rockets fired from gaza into southern israel which caused minor damage to a house palestinian medical officials claim five civilians suffered a slight injuries while two are missing israeli military officials say rocket fire from gaza has been on the increase recently. and you are up to date here on our t.v. to stay with us in just a moment in the trees here but the business. those london fog. little college the international sanctions us today takes place in prose on july ninth and since. this living collections by russian designers is the

most beautiful just city of central russia. business against living in fear children function shows slowness like presiding over the festival. russian president james this is. close to you with business good to have your company sperm bank says it's ready to declare war on russia's cash driven society the largest bank in russia wants companies and people to switch to electronic payment methods bank claims the high portion of cash in the economy is holding growth causing the country to lose up to one point one percent of its present a product but i'd suggest spain all salaries and pensions and bank accounts instead of handing over ruble bills are also wants the government to offer tax incentives for non cash paid. ratings agencies like s. and p. and moody's have become the subject of vicious attacks from politicians across

europe the agency's claim to give an independent assessment of the credit worthiness of countries but they've been blamed for helping cause the crisis by starting up a lot however someone suggests this means they're actually doing a good job. the ratings agencies quite justifiably came in for a lot of criticism during the global financial crisis they were accused of being overoptimistic they were taking some fairly generous assumptions about its ability to repay there was sometimes overlooking some fairly fatal flaws in some derivative structures but it's fair to say i think most reasonable people would agree that perhaps the ratings agencies did contribute to the global financial crisis however i think there's been a notable improvement in standards over the course of the last two or three years and the fact that the ratings agencies now are actually getting so much criticism from european finance ministers probably suggests they're doing the job rather well

. through to the markets now we start with the commodities oil is mix of the two gave days of gains worries of the debt situation in the united states are contributing to fears the world's biggest economy will face a period of stagnation it's a different story for gold though the precious metals benefiting from its safe haven status setting new record highs of over one thousand five hundred and ninety dollars per ounce silver is doing even better it's up to half a cent although it's still some way short of the record set a couple of months. european markets are trading in negative territory they're driven by the overall uncertainty over their problems both in the e.u. and the u.s. group is putting on a two percent bucking the trend in london though but in frankfurt metro a.g.m. commerzbank down one hundred percent while carmakers b.m.w. volkswagen and astra on. russia's markets are slightly down well four hours of trading half way through the session they are coming back however from stronger falls seen through soon after the opening energy shares are

also coming back let's take a look at them gazprom is down one percent used to be down more than one and a half financials bt billions burbank are point six percent lower in general and. still seeing a very volatile session and was down more than one percent then it came back and now it's down to work point seven percent again. now even with the uncertainty on the markets a little trust will be capital believes the construction and cement sectors will soon see increased demand i think the most interesting story of late. has been the construction for first the war so this is a social impacts plus the world cup and now we have moscow expanding outside of its earlier bounds that is bullish obviously for the cement industry for developers and for a long proud of steel producers so one of which is obviously. having mentioned here as if we do manage to sell their stake in response to my. go out of cash which

would help even cut their debt or actually have to didn't so those are probably the themes that would be watching in the in these difficult markets and circumstance where the from the business team for now but we will be back next hour with plenty more rory's next with headlines. if. it.

were the end of the boer war and the going away of the soviet union many people thought that nuclear weapons disappeared. the risk is not zero something might be going off by mistake specialist sounds of the nuclear weapons on hair trigger alert . others of the difference to using a desert there it all as an echo of it but you know if you keep spinning a trillion dollars a year on weapons of venture you're going to blow everybody up you can you know people are dying from these weapons but until we actually see it people don't wake up to nuclear weapons or will be. that represents all the firepower of the second world war and this second sound is the equivalent of firepower of the world's nuclear arsenal today.

will flow into the fukushima big splash in the world of hi-tech business which turns in real science in. i ching products they don't understand oh jesus got the fellow russian invaders to contributors abroad and their favorite threw back. the spotlight on stone on technology update here. we've got the future covered hungry for the full story we've got it first the biggest issues get the human voice face to face with the news makers. in india oh she's available in the movie.