wealthy british style sun it's america that's not on the ties. to the. markets why not scandals. find out what's really happening to the global economy in the kinds of reports on our.

first. first. it's really holds crisis talks with the mounting debt problems sparking concerns it could be on the path to a style bailout. supporters and opponents of hosni mubarak clashed fatally outside the court in cairo with the proposed an ailing president of egypt faces. a fee to be charged as the country feeling that one hundred people something that you can hardly night kind of look at from more detail think after a few minutes. divisions in the u.n. security council western countries press for an outright condemnation of the syrian government violence russia says that could damage the road to peace and calls for more balance. and business process presentation program is getting bigger

but the government can sensitive up on the stakes in the major companies will have more on that and business and its. international using comment this is r.t. live in moscow just turned nine pm here in the russian capital good to have you with us this. beleaguered europe is caught in stormy seas once again as italy has held crisis talks with the e.u. over its surging boring costs the country's bond yields have reached their highest level since the euro was adopted and when prime minister silvio berlusconi has stopped short of all asking for a bailout and our europe correspondent daniel bushell has more. speech. maybe it's no worse than cools to go all down sharply so he's waited through the markets trying to reassure people who believe.

the markets. you are. european strength had it and if you want to stabilize and reduce italy today and he didn't call for a bailout by sympathy here in brussels that that is the next stage of the crisis to say the way held between italy and euro zone i find that she showed the human side of the heels of the italian foreign powers which break with levels in euro history you know what what if they have to offer to investors to get them to pursue a sou invest in internet anything about that but then it goes to be unsustainable and it is over six percent of them over the same in all of those comments is that the terror that has catapulted call the day the return type of the christ in madrid and italy national day of course it's much bigger than that g.d.p. of group product which caused one eva and the trouble the people here are saying

here is entirely the economy is just too big to fail in other words much bigger than agree on and of course you could put together in fact the third big dollars to germany and france in the euro zone and it's still the e.u. even if it does move the bailout italy is just colorful to see sleepover with this policy huge very savage spending cuts and the hollywood saying i'm willing to accept this and we heard one of the world's big men doing to by slashing into exposure to the economy and government say as well as to other countries such as greece ireland of course goes really investors a say we don't have confidence in your ability to slash your unsustainable dead level and you're in kind of the euro zone file of cheap today that also the courts additionally we will continue our mediation in cult invest the show in close to panic really and the interesting thing is the say here is again because the emerging markets are a way out because when greece went down they went to asia to look for investment

and the head of the treasury is currently on a tour of asia trying to get those fast growing economies to buy italian owned now e.g. when the my world or rather has described market treatment as a cause that the can. well for more on what's facing italy we can now talk to ralph he's an economist with the independent think tank open in europe joining us live now in london thanks very much for being with us here on r.t. well as we just heard silvio berlusconi hasn't asked for a bailout yet but has he succeeded in calming investors today or do you think a rescue package is inevitable. well i don't think he'll succeed in calming investors but i don't think a bailout will be forthcoming in their future either simply because italy is far too large to be bailed out by the current mechanisms in place in the euro zone i think that it's the council boy rising borrowing costs for the short term maybe six months to a year given the size of its economy but in the long term or it will make its debt

unsustainable increase its cost significantly and more importantly will undo the savings that it's making with its its new austerity budget so you saying the same story is a problem there's also you say italy is too large to be bailed out in other words are you saying that the e.u. simply couldn't afford to bail it out. while with its current mechanisms if you look at the size of the euro zone financial stability facility it's tops out four hundred forty billion the current debt market for its loan is one point six trillion euros so even if they try to use this fund to buy up some italian bonds or provide some precautionary lines of credit new new additional measures that were agreed to under the second greek bailout it's not clear how much difference they would really make given the size of the italian economy and size of the bond market once the bond market turns against the italian economy which it looks to be at the moment and the costs keep spiraling out of control it's only

a matter of time until they become unsustainable really ok so the hunters able unsustainable means well it just can't carry on like this so what are the implications obviously there's been talking greece of dropping the drachma what about italy what are the implications if it does prove to be totally unsustainable and the country does literally go bust. well at the moment most of the fears about italy are from the eurozone crisis a hold so you really need to find a long term solution to the problems in greece portugal and ireland at the moment investors are wary of the lack of growth and competitiveness in the italian economy but that itself is not enough to explain the massive increase in yields it was seeing so i think it really comes down to a long term solution to the rest of the eurozone crisis which will involve some for debt restructuring because there's no other way to return these countries to solvent see a really strong reforms to competitiveness but members and there are so many real members of the eurozone i've got to be co-operative they've got to help each other now we're hearing that deutsche bank has reduced italian bond holdings severely cutting his exposure in the country is that not though

a sign that the big banks are rushing to cover themselves here well i think it does show a sign of the investor panic and they're looking to reduce their exposure all around in the euro zone and i think with them facing losses from private sector participation in the greek bailout there will be other banks following suit but obviously this is not indicative of the government support you know you can draw too many conclusions just from the single actions of but it does suggest that there may be more withdrawals from from all the banks in the future but that remains to be seen just ask you finally the cost of borrowing in spain that to the bonds a price increase obviously make it more expensive for the country to borrow in the exactly the same way as italy do you think spain could actually now be beating italy to a bailout. unfortunately we have a race to the bottom here who gets to some extent well spain does have very large boring costs as well and a large amount of refinancing coming up over the next year and the borrowing costs

are increasing slightly quicker than in italy the biggest problem of spain is that it also has a significantly undercapitalised and underwhelming banking sector such that at the moment that was hit hard by the financial crisis also has bigger internal problems in terms of the request real estate market and very poor economic growth as well so there are more problems really in the spanish economy itself than then you could see in the italian economy for instance but again it does look to have a bit more political stability at the moment although with the upcoming elections that adds another layer of uncertainty so both countries the future isn't looking great at least in the in the near term. although you sound a little depressed about all this you explain it so clearly for us thanks very much for giving us your point of view and explaining what's happening at the moment economist with the independent think tank open europe joining us live in london. but across the ocean though the world's largest economy has been rescued from the

brink of collapse barack obama signed a bill to raise america's borrowing limit with just ten hours to spare before the country was due to the fold after months of political wrangling democrats and republicans hammered out a last minute compromise which finally cleared both houses of congress over the deal to increase the u.s. debt ceiling by almost two and a half trillion dollars is viewed as less than perfect by both parties many republicans pushed for less government spending well democrats wanted to keep social programs and have the richest americans pay more in tax but despite the last ditch agreement credit john moody's and slapped the u.s. with a negative economic forecast while standard and poor's could still downgrade its triple a rating it's not in katrina control reports many say that the u.s. is used to dishing out advice to others but maybe less accustomed to helping it so . congress has now approved a compromise to reduce the deficit and avert a default that would have devastated our car the u.s. just had to swallow this bitter pill but many still down to it will help the

patients recovery but will instead prove to be a poisoned chalice our economy is not growing at all in fact unemployment remains very high foreclosures remain very high no recovery is taking place and are we on a suicide mission we may be gesturing you know to kind of deal with debt at the same time make it impossible for the government to play any role to save the economy in the economy is going down rapidly at some point shortly after the collapse of the soviet union russia became an american laborde tree for new liberal economic theories but can americans take their own advice now to deal with their own economic crisis repressive live within your means the same advice they gave us without knowing our economic and social realities. victor the russian guy had it russia central bank in the immediate post soviet period the year he took up the job

in one thousand nine hundred two so the worst four figure inflation in russia's history the us is sark into now and has the communist economy was in collapse but there was nothing to replace it with. so perhaps this situation was disastrous for it did was over a hundred billion dollars in gold in foreign currency reserves well listen fifty million which effectively means nil. if you want to reformists of the van government remember how in america's advice so-called shock therapy was a plot the markets might have got the therapy but the people got the shock empty shelves and must pull their business goes or as one politician said to move from a market to a communist economy is easier it's like trying to turn europe into fish soup but to do the opposite is much harder it's like trying to revive the dead fish it took more than russia a decade to revive its

a quarry him and return to economic growth transforming the country's fortunes after the disaster of the nine hundred ninety s. but would the us now the patient in dire need it could all make surgery will soon see the maps and they thought it was good enough or both saw the it will be fit for america it could integrate your of the art of. egypt's ousted president hosni mubarak is on trial in karo for corruption and ordering the killing of some eight hundred forty people during the february uprisings a charge that could incur the death penalty the courtroom supporters clashed with his opponents one person was killed and further fifteen were injured as each side hold rocks and bottles at each other party's oksana is following developments for us. while the judge presiding over the courtroom wrote that the trial of the park. i've jorn field all grass based games primarily due to health reasons i feel that

he is expected to remain at a military hospital overseen by and i'm college if he's. concerned the defense side insists that he is in it read the book and this and that max it prevents him from. mine and stabbing at the trial i feel its conclusion. as to what if he were slipping in and out of consciousness that's separate from. suffering. but. here in cairo people were kept out of the back in january in fact i believe that all these reports are for how nothing more than just the theatrical supply but the child professing far from testifying they believe that that's place nicely to the has also. increased so that is the charge of it just because

many of the generals that out members of this council i saw myself and some of them on it and maybe that's why don't some of my. repeat come from i think political alliances that helped him to remain in power for so long now of the child was after surrounded by a very happy security operation about five thousand absolutes and that dr kelly's was here at the side of the clashes because i sleep returned the day here in cairo in the morning. and the foreign protestors one that was. all wrong there are a lot of acts that patients that's how much these trials are not only because many health holds all the revolution responsibly these. that is one thing you can't catch that hurts me to me how many people were displaced and

that my colleague mary and how important this quaint kyra is now one of the most famous in the world many around the globe even those with little knowledge of arabic know its name means liberation well the revolution of january put this part of the globe on the map but apart from that what else did it bring the people of egypt. this man has been running his own business for thirty five years it used to bring him enough money to send his son to study to canada and take his large family a bloated one c. . but with the economic to the station caused by and rest and political uncertainty mohammad's enterprise has been badly affected now he can barely a food to feed his children he says the wind of change may have brought freedom to egypt but it's brought a survival strong in its wake. you know i love the

revolution when it happened i welcomed it that looked at the time like a light at the end of the tunnel we see it's not getting better we have nothing to eat just don't tell me about democracy for hungry people it just doesn't matter. the plight of poverty fuel the revolution your growth has dropped from five to just one percent some thirteen million people live below the breadline unemployment has hit twelve percent. egypt's revolution was regarded as the may successful arab spring chapter it took eighteen days to end one of the world's longest dictatorships the five months on there is little satisfaction and dictator free egypt is far from the best place to live in a free the people. and. the people now. know much better. that there. would be a better solution. as their very. people are indeed tired even

those who back the changes this young man is from the revolution is used. he tries to remain optimistic and he says sounds a lot like south conviction that i get on the other side we've been living under mubarak for many many years too many i'd say but it's great what we did but we do need to be more patient and this is difficult we have a lot of problems right now but we do need to wait for a little longer. recentre need demonstrations in the square show that this time the system has been pushed to the limit and it's trade tests versus patience and the battle to save egypt from crumbling. reef an option or r.t. kyra. check out our website it's r t dot com for more stories news and video in addition to what you see here on the screen here's a sample of what's lined up for you right now should you click on a silent voice is many countries are now gripped by antigovernment protests but in

israel demonstrators are hungry not just for economic reform but also for international media attention. and pop goes the president's body georgian leader hopes his love of music might strike a chord in the hearts of his people. there's no sign of violence letting up in syria the crackdown on protests continues as government tanks reportedly move into central hama the opposition stronghold more than a hundred people are said have been killed over the past few days meanwhile the u.n. is locked in debate over what action to take on the crisis and its get more now from artie's marina port she is in new york and the un security council has yet to come up with any concrete decision so what are the main disagreements at the moment. well bill this is the third day the security council members have gathered together to try to reach some type of consensus what we know right now is that they're working towards a presidential statement and for that all fifteen members need to agree on all the

text that is written in this statement what we know that they have agreed on is calling for an end to all the violence but there is there is a divide between whether or not the draft the presidential protection include violence against security forces the west western countries and the u.s. student not consider there to be violence against security forces they believe that the civilians in syria are demonstrating have been have been assaulted and there's been a crackdown against them but there are other members of the security council that see the circumstance of it differently which brings us to the story and why it's taking so long but we do know the international community is working to try to reach a consensus to put a statement out for syria to listen to now the russian ambassador to the united nations vitaly churkin did address the media saying it's no secret that the u.s.

and western countries think that the mask is is to blame for the violence that's been taking place in syria for more than four months and by just putting pressure on syria possibly this problem would go away but russia and other security council members don't see this circumstance so black and white and that the task of the security council is to push both sides towards dialogue and for the circumstance to and in a more peaceful manner take a listen to what he had to say. we're concerned about these collusion of the. circumstances the security council could and should do because it have signaled in favor of going to go. in the violence some of their positions. in terms of leaning on one side which is detrimental to the objective picture. of the russian delegation shared by some other members of the security council to

do everything possible in order to. pull away from the brink of a civil war where syria is finding itself now build a draft presidential statement that i have seen also calls for the respect of human rights for there to be a national investigation into all the violence and for those responsible for the violence to be held accountable this is again just the draft that i've seen of a presidential statement but should underscore all fifteen members need to agree on this text for it to be adopted and then announced and that's what we're standing by to wait and see if that will happen and fun i mean it just give us a brief amount of what brought syria to the situation we're seeing that today. well you referenced what is happening in syria right now but this is a problem that's been taking place since march anti-government protesters coming

out into the streets calling for the president assad's government to step down for the president and his government to be removed and since then we have seen over the world the scene images of a crackdown on all the demonstrators all that anti-government demonstrators and there's been reports that more than a thousand people have been killed the numbers are as high as seventeen hundred people but those numbers cannot be verified we do know clearly there is a violent conflict that's been ongoing and the international community is trying to figure out a way to solve that right now it doesn't look too safe or peaceful in syria thanks very much indeed for that update live from new york qualities. well before the business news time to update you on some more international news this hour an update. and four people being killed and thirteen others injured after western baghdad was struck by twin explosions officials say the bombs targeted

a liquor store the first one brought police and witnesses rushing to the scene to be caught by the second blast a few minutes later this comes after iraq's political leaders gave the go ahead for talks aimed at keeping u.s. troops in the country on a training mission. japan has passed a law to help tokyo electric power paid compensation to victims of the fukushima nuclear disaster the crisis forced almost eighty thousand people to move from around the crippled plant the fisheries and tourist industries in the area also. the government is expected to pitch in and then michelle twenty six billion dollars in special bonds but the eventual cost could be far higher. hundreds of troops have been deployed in the city of karachi in attempts to end ongoing violence that has killed almost sixty people in five days reports say bodies were found scattered across different parts of pakistan's largest city some riddled with bullets and showing signs of torture police believe around two hundred people were killed in the city last month alone much of the fighting has been blamed on supporters of the

country's main political parties. in australia police are freed a young woman trapped in a only home with a bomb reportedly attached to her neck one thousand year old called police from a house in a wealthy neighborhood in sydney. for nearly ten hours to remove the device and the girl was told in operation to avoid an explosion some reports suggest it may have been an attempt to hold the teenager to ransom. it brings up for the moment coming up very shortly special report on the u.s. led invasion of iraq in the aftermath of the war before that marina joins us now for a business something. hello and welcome to business here on r.t. so russia is set to launch its most promising his asian program since the one nine hundred ninety s. the government aims to fully sell a number of major state companies and our teams are going to school has all the latest details for us. it really is saved just saying that this is

a deal or just privatization plan in russia since the ninety's they were talking about some really huge companies like russia second largest bank the t v or electricity generator producer should be mutual airport in moscow and soft on florida large freight company all of them are going to be privatized in the next two years the government only plans to leave the so-called golden share which will enable it to you know some of the decisions of the new holders you know probably one of the most interesting facets of all this is a list to be privatized is going to last you have to russia's largest oil company the leader in the petroleum industry actively explores and develops in the most regions of russia it's also one of the biggest public companies since fifteen percent of it shares are all are floating all over the market seventy five percent i would share is belongs to the state but the government wants to reduce this

figure as soon as by twenty fourteen they want to see the state control fifty percent plus one share of force and you have to and that will be after the first stake is sold it is expected that that should bring around thirty billion dollars into the state budget and also expected that the second stage should be twenty five to fifty percent more expensive so that would bring even more cash into the state budget all of this is part of this huge privatization one worn by the president and its goal is to prioritize. a large state said by the seventeen. now let's have a look at the markets now all oil prices continue to fall this hour unless or spread that signs of a slowing u.s. economy may fall to fuel demand in the world's greatest screw consumation futures dropped as much as one percent on wednesday after the unexpected fall of u.s.

consumer spending. and gold is edging ass concerns that the u.s. economy's faltering are of boosting demand for safe haven the yellow metal is adding seven dollars while so far as up ninety six cents. over in the u.s. we saw wallace all trading on the markets they are in the red this hour this spites a better than anticipated report on labor and this is the ninth session in the row of the markets are down making it the longest losing streak in nearly three years. and here in moscow markets closed in negative territory tracking losses in europe and asia both the arts yes and the my sex laws all over three percent let's take a look at some individual moves on the why sex and there's a major war among them a losers waged by a lower crude price gascoyne went down almost four percent banking stocks were also down with the to be losing three and a half percent thought bucking the trend was hollywood's gold adding point six percent on stronger precious metals. and that's all for me this hour join us for

another update in about fifteen minutes in the meantime states in for the headlines with bill. q irwin.