i know that the main stories we're covering for you hang on. the fact and fiction of russia's rise as election marches take a twist in the foreign news coverage america's fox news has wrongly used footage of the riots in greece while footage is from moscow. future security is at stake because russian and nato foreign ministers meet to tackle a bottle sticking points and discussed corporation afghanistan iran in the missile defense and the prevention of another would be a start military intervention arm on the priorities. plus the single

currency is about to face its toughest test yet as european leaders gather later for a crucial summit on the euro zone's debt crisis consider french and german proposals to impose quite a budget controls in the schools for the rest of the block. the financial fallout from the euro crisis tends to ignore borders with a squeeze felt far beyond europe next r.t. gets expert insight on what's likely to be a slow drawn out to recovery. today i'm talking to cuba who's the managing partner of fusion asset management based in london we are talking as ratings agencies increasingly look at downgrading the debt rating but the entire c. of the year is a including financially healthy countries like germany mr lecky thanks for talking to us today now this is

a crucial time for the old europe is pushing for more fiscal unity and meanwhile the u.k. is backing away from it what's the solution do you think i think for the united kingdom with interesting game because. if you see a whole economy develop here when a functioning window on so many change from twenty five percent to ten percent of the same time financial sector a good move from five percent to ten percent did you do so now we're on a vehicle footing so it's not only about europe but it's about overall contamination of financial system and clearly its financial system as london as a financial center this is a very important for united kingdom and therefore there are two sides of the game one is political and economic and another use financial infrastructure one should politics really come into what is essentially an economic decision absolutely the politics should go in and what what is really going to move this in because

politics is a concern that the explosion of economics really. european union was a part of. a larger political project which took almost fifty years since the second world war and this unification. fiscal unification which people talking now is just the last or latest step in the overall process therefore every country needs to decide how closely integrated it wants to be in the political process on the lines of united kingdom so far was actually very reasonable if you see what happened in the europe recently and how much united kingdom would be affected what was done so far was extremely clever but what about this kind of forcing of the issue i mean you say that fiscal union is the natural result of political union but isn't it the case now that the political union and the fiscal union is kind of breaking up and people like merkel and sarkozy are trying to force it back together this is true to some extent. but at the same time we need to remember germany.

but then they really they are playing. if you look at the situation if you look at the information then france has a real at least score for losing three. people a rating and therefore putting a. fair facility here which effectively was created to solve a financial problem. it's definitely different game for germany and france and timing wise is different because of that for germany it's a miracle see that as a model from. this sort of problems which work in related using thirty forty years of that expunged from an uncontrollable spending your way can not before two thousand and three months or so of course the whole way we're. so it's happening in next two months and very publicly and politically because the real problem in his

own country how much economic logic is there in throwing everything at preserving the. there is economic logic. but question here is. is it the same europe same country is which were accepted for political reasons and at the time of cheap credit then the issue of control is not so. or it's better to have smaller or smaller call up or for real euro countries with a stronger economy and stronger can't sing. so. it's probably a question greece is going to stay in the euro. because if we talk about the. italian bonds because of our hundred billion affected they also have very very bored three hundred billion of government. but also that applause billion of our

financial ones of other financial institutions four hundred fifty billion the five hundred billion of deposits well i'm sure it's. if it really goes out of utah and visibly gave all in euros so you why we need to structure it we will for the bulk of bunking system bunking about one system will bring the social in of a country but also in the whole you will because then you have one point seven trillion the euro or four called informal which will immediately. chain of events not only you italy where inflation and unemployment the sky lifted but it also really mediately that it is similar effects in the european countries so losing greece and moving into these two different games let's move on and talk more generally about the financial crisis people are blaming the bankers they're still doing it's what you hear most often on the news when people talk about the financial crisis do you think it had any effect on the way that bank has operates

definitely because of the fact. we can talk about the effect because there are several sides that is that if. there is an increase in the required capital then that is obviously all the question of easy money for all. of conflict of interests and they all different angles of the question. in terms of how banks are graded banks definitely better relate but on the other hand you need to look at profitability so if you don't believe your bonds forty percent of income of bonds coming from non interest related activities which are services which is basically investment banking so now if you start pushing the relation on and the degree to capital of this things and trying to split investment banks from corporate side clearly a lot of seen that judas regionally in the structure will disappear so just cutting integrating will kill that part of services which will drive down profitability of

bombs if you. do increase capability then that will drive a profit ability of banks in the long then you start to relate in bonuses what's happening then it's american but if industry so what banks did wake up to the bonuses because they agreed with governments because bonuses but they mediately increase is two things so now when people say you're not getting my bones are you actually getting to them sell it which means that fixed costs in banks increased enormously so now we need to cut people that's why twenty twenty five percent of workforce. which means it's not going to be supportive for the bond business in principle you're supposed to generate more revenues not cut costs and say where are we now in terms of getting out of financial trouble it's a very long process. if we. see post-war that was watered down and it was deal to visit. them

plus years it's twenty years it's a very slow process there is a huge amount of that. the united kingdom is probably. the worst country in terms of total public and. state that which is now i think around four hundred fifty percent of g.d.p. . so the need that. person states is of the most publicly known. that is also hidden that which is coming from pension liabilities we don't talk about that much but actually it's a huge amount which sits as a as a liability for corporates and see it as a liability on consols and so on there is no easy way we all are consumed so we need we all consume to board this is that we need to pay back for them wasting away but neither of them are going to be pleasant and the one of lines of force is what people call. financial repression which means it's

a negative real interest rates inflation nominal interest rates alone it's a couple interest rates it's boring government boring boring from captive clients to pension funds if you have to invest in highly rated and highly rated as your government then you need to give money to government that then you die and then the government effectively using this money to pay back that and then that will bring it in closer relationship between government and banks closer to grow closer. and in this sense. believe that you can pay for the four percent of that a year and then you take the number which you need to achieve divide by three four five percent that's the amount of years you need to get out it's not the one the year we not super positive for next year in terms of it's not going to be two thousand nine hundred percent that we don't think so every stage of the financial

crisis is bigger scale. considerably more difficult to get out because every time you put in more money efficiency or putting this money is. going down money does appear from the problem problematic areas which were not affected so going into emerging markets increasing labor costs increasing inflation so making emerging markets less competitive therefore less able to pull developed to pull developed markets from the from the crisis and more and more money. in the system of effectively. dealing with a sentence which was supposed to. the whole financial system out of the crisis that was sounds very painful at times like this where do you think people should be keeping their money and we talk about gold or a mix of currencies or what yeah i think that some point of the.

beauty contest so it's not the euro is but it's maybe some other currency even of the new europe. and it's a question of comparison clearly depends on the you but his profile. in terms of overall us of course. we don't believe that. fixed income or prison but the thing about unit is. it's very difficult to get and go because gold is very it's been in the facts and he's got a lot of. metal so it's difficult to predict but gold particularly well and in the recent years more for the cage and as an investment and an absolutely done strategy it's unlikely that you're going to produce as much of it as it was before fueled by easy money. so that really absolutely don't start the juice is what people and pension funds who are. low yield environment and for that we can

learn from japanese so japanese are in this situation for ten plus years so if you look at the proportion of pension funds in japan or like eating. here it's fifty percent five percent there it's up to thirty percent because when the government was not going to make the money. probably not going to make money so we need to war for something more. longer term but then clearly that aim to extract the absolute performance of an image market forms. thank you very much.

it's all designed to keep you closed in your own small world as a prison. you know you leave somebody in there for a couple hours like in a stress position. you have this fear of the unknown and this stress sort of building and. i've seen interrogations go on ten twelve hours they chose songs i remember from marilyn manson and metallica slayer the two songs would be angel of death and raining blood to kill the enemy going through war coming up here into iraq into baghdad. johnny pulled the bodies to the floor just a rock n roll band was fitting for the job we were doing.

the fact and fiction of russians rallies as election marches take a twist in foreign news coverage america's fox news has wrongly used images of the riots in greece claiming the footage is from moscow. breach of security is at stake as russian and nato foreign ministers meet to tackle vital sticking points and discuss corp afghanistan european missile defense and prevention of another the biggest down the tree intervention are among the priorities. thus the single currency is about to face its toughest test yet as european leaders gather later for a crucial summit on the euro zone's debt crisis will consider french and german proposals

to impose tighter budget controls and fiscal rules for the rest of the. latest world of sports is next with the union and i tell you what you can see the scars basketball is no where the next is that the certainly do very eight. losses in the euro league this season kerry looking very good indeed but we could be without this star man for some big game this is the question and it is the big worry indeed and recur is he going to go back to the n.b.a. are stay put here in moscow we asked the not exact question i'm going to try to get the answer to it very shortly. thanks for joining us this is sports today plenty head including the stories in brief. me not a double for the first ever time there will be two russian sides in the last sixteen of the champions league this season which joinings in each on wednesday

evening. nothing but net. ball team stay perfect in the euro league extending their winning streak in the competition to eight games. on slippery underfoot the seventh uncharted ice morath and takes place without plates from seventeen countries braving the sub zero temperatures. brave people indeed but we get going with the news this morning that russia will have two teams in the knockout stages of the champions league for the first ever time this year c.s.k. moscow earning their berth on wednesday thanks to a last gasp when inter things were looking to bride heading into the clash of the sun zero leaving not only to be giants on away soil but also hope the other group b. clash between legal trouble for finnish favorably the visitors doing their part in milan but they left their late. header four minutes from time making all the difference leaving it to wall in the final score to see. the army men's joy was

compounded when they checked their legal trouble for a result nil nil in france meaning c.s.k. snaps the most unlikely of qualifying spots interim have already made it through during the previous game week while turks on sports must be content with the europa league. and i tell you all so last month just united for only the third time in seventeen years alex ferguson's charges i feel to make it into the last sixteen of the european cup a two one loss to basel leaving them in third place in group c. with their swiss opponents taking. second benfica top of the pile following victory over pointless off the little galaxy. all quiet in the blue half of month chester today to offer among city were denied entry into the knockout stages despite beating the table toppers by in munich two nil they finished third joining their cross-town rivals in the europa league enough police secure the second qualifying place. finally group the witness the fastest ever half trick in champions league

history buffett tim the goal is three goals in seven minutes helping the french side record a blistering seven one win away to grab the croat team parting ways with monitor your church following the right there for age i.x. for the second qualifying place after the amsterdam men were seen off by real madrid who themselves made it six wins from six in the netherlands. now it seems possible team have forgotten how to lose the army men no undefeated through eight games in the euro league after joining in the russian capital on wednesday night three curling. on or before the competition spirit of the month for on november respectively the injured a k forty seven per link to watch them on board and pick up the slack for signs emerging leading the way with a team high eighteen points for such showing his award was no fluke posting here

and no other strong game with its total of four six computers supporting double figures to overcome fear so i grabbed the cisterns. i mean the seven seventy four victory in a much much closer than the final scoreline would suggest. so on the record length it was a mere a spectator on the night there but he's been on the integrity part stunning run so far this season with the n.b.a. season jus to get underway later this month though the former utah jones forward has a decision to make stay or go but among them that question when he met up with the thirty year old in the russian capital. in one thousand nine hundred nine and a kid in lanka became not only the first russians of it takes in the first round of the n.b.a. draft but also the youngest european players to be selected in two thousand and one he joined the utah jazz and remained faithful to the salt lake team for a full san years before becoming a free agent and moving back to european powerhouse says calm moscow twenty eleven

saw the revival of russia's red army club in large part thanks to the experienced n.b.a. forward now following a successful spell at home kirilenko is uncertain if you want to go back to the n.b.a. palme definitely looking at the offer. when i signed the deal with. here that. i'm going to be leaving remember him middle of the season but when it comes to this point you know it's always tough to leave the team in the middle of the season and you know we have a great chemistry. and that's why it makes it the way tougher to make a decision six time you really champion says khan mosco are now well on their way to their seventh continental title and a kid angle has been instrumental in the current campaign and was even named the most valuable player of the tournaments in october needless to say a k forty seven is a regular in the national squad where he helped the team on their way to becoming european

champions in two thousand and seven these impressive performance earned the prestigious flag bearing on or at the two thousand and eight olympics in beijing as well as a visit to the kremlin ahead of the games and if russia finishes end its all three at the wild card tournament in july of next year kirilenko could go for third attempt at a golden that medal last year obama kept shows a lot of promising. young guys and that you know we play in the way better as a team young guys you know stuff you know those falls and taking away more responsibility there. so i'm looking forward to you know to see them next year with having a great season right now you know even national team from you know where the qualification tournaments right before the olympics and they get it and go is very active when it comes to promoting the game of basketball especially in russia with thousands of

kids turned up to witness him and another n.b.a. stars white howard and an event in moscow last summer he stayed in one place for hours just signing autographs for anyone that asked becoming a true champion of the people in the process. r.t. moscow. brings us to curling where russia's women's team have taken their chances their home european championships moving to within a game of the playoffs thanks to a seven four win over rock bottom norway after a four wins four defeats russia saw fit heading into wednesday meaning in order to finish in the top court so qualifying for the playoffs the home side had to beat the norwegians out hope denmark were too good for fourth place germany despite being lost in the table norway kept the game title to late if. one starts when the two thousand and six european champions came from behind to secure a one point lead eventually winning seven four. scoreline while second place

denmark did beat germany to set up a classic russian leader on thursday the winner about one will play in the final few often. played as everything didn't depend on our result we tried to follow the score in the germany denmark match we shouldn't have done that really as we had to concentrate on our game but we did keep an eye on it i thought the germans would manage to take the game into an extra and but they failed anyway the result made us happy that we've already imagine it and would be the silly will be wary of loss however their team is very experienced and we have to focus on the match and produce our best to win the type break. now it may be hard to believe but ski sensation lindsey vonn has only now one her first world cup a vent on home slopes the two thousand and ten olympic gold medalist topping the super g. standings in colorado where the event moved to lack of snow in the french alps nouvelle the zero on the schedule to two and sees the warm temperatures meaning the ladies moved to the men's birds all three dunhill trot in beaver creek fabio making

a challenging course the p.z. by taking the lead the swiss whoever edged out by volume who could rely on walker's home support she lives in nearby colorado the twenty seven year old taking the victory to today second an austrian on a training journey. with a massive one hundred thirty six point lead in neutral standings and she also tops the super g. . for a one no where the sport's governing body the f.i.a. has confirmed on changed twenty race calendar for next season that the spite there still being darts over the ground praise in bahrain and the united states earlier this year the brain g.p. was first postponed council following civil unrest the situation remains volatile in the gulf nation prompting renewed security concerns ahead of april's race while the organizers of the american grand prix have yet to prove their financial commitment for the ultimate race of the year in texas in november if the grand prix do is go ahead it will be the first f one race in the united states since two

thousand. now and your insurer running offense are normally held in one skips for us to clean different from the following thirty six brave souls from seventeen different countries aiming to discover just who is the hardest of them all at the bottom of the world this is the seventh. chilean am running forty two kilometers or twenty six miles in the great white line no doubt a breath of fresh air for most competitors and i was frenchman clement seven ne who took top honors in the men's cup of great thirty seven all private bunker finishing the distance in three. hours forty seven minutes seven seconds that was a new record for britain brawn claimed it levy's title in four hours twenty six minutes ten seconds per beating all comers not to mention the subzero elements thankfully not even a polar bear was in sight. great stuff that is all your sport i'll see you shortly in just under two hours time.

wealthy british scientists not. time to. market. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on our. world with. science technology innovation all the latest developments from around russia we've got the future covered.