happening to the global economy with mike stronger for a no holds barred look at the global financial headlines. report. europe's currency crescendo a big setback commune everything with talks to save the euro but a last ditch summit. first signs of a split as saw me in new countries refuse to come on board and leave the rest to set up the road to join for all the details of its. israel unleashes a series of airstrikes on gaza targeting militants but causing a civilian casualties. at least three palestinians have been killed and several dozen wounded in the latest wave of mine is the worst in several weeks more from tel aviv in just a few minutes. what's in

a name western media is quick to equate to russia's post-election rallies with out of world turmoil as moscow says it's being overblown and out of date. the russian markets are down as a physical thing if i think european debt crisis mode two thousand and twenty minutes in the business spending at. one pm here in moscow you're watching r t welcome to the program is d.-day for the year a with intense talks among e.u. with leaders in brussels suffering its first setback britain hungry refused to accept you treaty changes leaving the rest of the club to work out their own currency saving solutions when life brussels correspondent now test also there for more than just a marathon night of intense talks clearly there's going to be no unified solution is there. well it doesn't seem like. there are no big surprises in fact there

because there was already a lot of contention you mentioned the united kingdom they've already had coming into this a lot of reservation into agreeing with the franco german apply and of changing the treaty so in fact the accord that was agreed upon last night include the. contras plus six other members hungary and the u.k. refused to come on board and sweden and the czech republic say they will have to consult their parliament before the give an answer to that now why this plan is reflective of the plan that merkel and sarkozy have wanted to come up with it before place although they did not get that sweeping treaty change that they wanted they do will be able to force a stricter rules especially when it comes to budget and deficit they say they will come up with this goal compact it may not be a treaty change but again the fiscal integration they're coming after and they will

rely on the european commission and the european court of justice to implement these new disciplinary measures such as automatic sanctions for example for countries that violate the deficit limits of debt limits as well now again they want to show here that the euro has enough credibility merkel said that by having at least the seventy six other countries it shows that the euro has regained its credibility and will assure markets it has to be seen whether any of the effects of these will actually last more than twenty four hours and if there is to come if there are to sign something final maybe tonight maybe it will extend into the it has to be they still want the twenty seven on board still keep maintaining that they want to convince the other still to come on board let's not forget the u.k. has veto power cameron has been real doing this this plane this car from the very start saying if the concerns of the u.k. are not addressed he may use this veto power let's remember the original lisbon treaty took eight years to be negotiated so to come up with

a unified solution to this may not seem very likely although they will still be trying to they're going to be working late into the night when indeed and the euro's future is very much. one that we learned today here's some concrete decisions. well again hopefully by tonight if not extended through the weekend but a lot of negativity negative feelings actually coming from the people you talk to here in brussels however i just wanted to add though in some of the grievance that the root of the euro zone also agreed to be a fund that they already have in existence the. hopefully these will become called crete clients for the euro with specific amounts in terms of possible bailouts in the future however if you talk to some experts they just say we want to know where the euro is heading we want to know the direction that the euro was taking and at this point opinion really is divided if you will talk and more talk

with the politicians know it. alone and not believe anymore because too often we did not live up to a word. yet another d.-day for the euro another big question mark hangs over brussels do years and politicians have what it takes to hit the euro crisis nail on the head once and for all. the euro which should inspire confidence is not inspiring this confidence if there is no deal on friday there will be no second chance. and this time germany and france are not taking any chances it's either tough love board nothing they want a treaty change to pave the way for a fiscal union that will bind the euro countries closer and force the nationally unhealthy economies to get their act together tougher punishment for deficit centers and greater fiscal oversight by e.u. institutions no matter how tough the rules the question is will they change anything when you have to implement proposals talking about that will find

a country for failing to it he wrote about debt and deficit well you're basically taking a country that's bankrupt and going to follow. yet even some of your of skeptics acknowledge that a common currency system does have its good points it is an instrument instrument is only as good as the way that you use it and ability it has to do things we have to briefing the old system merkel and sarkozy know it's a race against time if they can't get the other ten countries on board for a treaty change they want the seventeen era zone countries to head with more of the school integration to support a monetary union more or less than you want forget it took eight years to negotiate the original lisbon treaty on top of that the u.k. has threatened to use its veto if its interests are not protected amended the

treaty which is the e.u.'s rulebook and virtual constitution opens up a potential political minefield needing the support of all member states. anger in some countries over the u.n. force a sturdy measures but even if changes get through these hurdles once again would it change anything you will never solve this problem as long as these currencies. these countries with the currency that doesn't fit their economy this is what all the fuss is about the euro which backers of represents a grand idea of a single currency what some would call the united states of europe but now the problems become. with the question being asked is are they also too big. the possibility of a euro collapse is now an actual threat and here's another question is the euro even worth saving some say yes the alternative exists as a possibility that we're to break down but i think for most policymakers most citizens at large rapidly see that the breakdown will be more expensive than

maintaining what we have today and to make the to undertake the necessary structural changes some say no it was always going to end it was pretty clear there was always going to end in disaster with very very bad effects even for those countries which are not members of it and the blame for that should be laid fairly and clearly with the european political establishment whose obsessive pursuit of a united states of europe has got us into this mess and if the eurozone does survive what will it look like economically and politically if i knew the also that i'd be a wise man. r.t. brussels. let's talk to them in pain who's following all this with a keen eye the u.k. independence party the national ferrars was in brussels for snow thank you for joining us standing critic and britain the said no to tighter controls leaving us countries to sort themselves out really sure the u.k.

is now being pushed further so it. well let's hope so because we don't want to be part of a political union we don't want to be part of an economic and monetary union what david cameron has done is to say look can we have some small concessions please president sarkozy told him to take a running jump and he's vetoed the treaty so on the face of it i should be cheering david cameron and say isn't this marvelous that a british prime minister has finally stood up and said something but of course the reality is that these seventeen countries are determined to press on with this euro project a mistake them though i believe that is actually leave britain now in a really difficult position because we're still members of the union we're still bound by all its legislation and yet what's perfectly clear is that henceforth we will have no influence whatsoever and actually what i'm getting in the hole today from journalists from all over europe is that britain is now despised so i think what will happen now back in the united kingdom is we're about to launch into

a very big national debate about whether we should be members of this community but if these countries are going to push on as you say can this seventeen year old using nations solve this by themselves. what listen the word solve implies that there is some easy solution to hand there isn't the euro was a misconstruction countries like greece and portugal should never have joined it in the first place and by increasing the size of bailout farms by taking more power from democratic nation states the center does nothing to address the fundamental problem that greece and germany cannot live together inside a single economic and monetary union well that's interesting so if there's a separate financially based group within the e.u. are you saying this could lead to a split in the union then i think what we saw in the early hours of this morning was the biggest split in the european union in fifty years you know the united kingdom has been a member of this things since nine hundred seventy three we're a big economy where an important country and whether david cameron knows it or not

what he did last night was the first step towards the exit door how easy will it be for those countries to convince their populations about facing tighter controls we hear a lot about the politicians but what will the people think of all this. believe you me if we were to put this you're a package to the electorates of greece of portugal ireland italy spain they would all say no because of the better solution is to have their own currencies back to have a successful competitive devaluation and then only them to put in place the kind of austerity measures that are needed to get their borrowing back under any sort of control and really these countries now find themselves these electorates find themselves trapped inside an economic prison that is called the euro their democracy has been stripped from them and my fear is that the kind of civil disobedience and civil disorder that you've already seen on the streets of greece

will multiply now the talks are not over yet their markets are already jittery because they couldn't find a unified solution if you're a betting man what would your prediction be of how the next crucial twenty four hours will actually pan out. i think in the next twenty four hours the seventeen politicians not peoples will agree that they are going to push on that they are going to give incredible dictatorial powers to i'm elected bureaucrats based in brussels the markets will remain extremely nervous and remember that even the package they're talking about today it will take until march to implement and i think in the meantime the eurozone in particular the mediterranean countries are extremely vulnerable indeed and i do not discount the a breakdown in the markets will overwhelm the whole euro problem and that the euro zone countries and the e.u. institutions will find themselves simply not big enough to cope with those

mediterranean countries you mention if any of them should leave the euro when that cause terrible trouble in itself what listen the argument always is that we must maintain the status quo because if we don't the sky will fall in and there will be a disaster just look at what happened to iceland you know iceland came through this credit crunch in the most horrendous situation several of her banks went bust currency claps interest rates or three years on three years on the icelandic have a growth projection next year of three percent and things are going well and what it says to me is that if you're stuck in a bad marriage the best thing to do is to end the marriage and start again and i see no hope at all for the greek economy stuck inside this economic prism that is. ok now for european m.e.p. and these are the u.k. independence party i thank you for your views here nutty thank you. the latest israeli bombing of gaza has left at least one

a palestinian civilian dead and dozens wounded television is stepping up its assault on hamas militants but the campaign is putting more innocent lives in the firing line audi's put a sneer has the latest from israel. early this morning friday at least three israeli airstrikes targeted a hamas training camp in the gaza strip now in some of the shrapnel from one of those bombs that hit nearby homes at least one palestinian civilian was killed and some thirteen have been injured most of them women and children this follows an israeli airstrike last night thursday in which two high ranking palestinian militants were killed while traveling in a car in a crowded area in gaza city that was the first israeli strike in a concentrated area since the israeli gaza were back in two thousand and eight two thousand and nine now the palestinians have responded with a barrage of rockets there were five because some rockets or grad missiles fired on southern israel the south of israel is in

a state of high alert residents have been ordered to remain near of bomb shelters throughout the course of today and this comes as various faction groups in the gaza strip point for increased revenge attacks against israel we also are hearing from hamas that it's ordered its operatives to keep a low profile sort of the this is the most dramatic escalation of violence that we've seen between israel and gaza in civil weeks now where three israelis accusing the gazans the gazans accusing the israelis and the scene does seem to be said for return to violence the israeli palestinian peace talks have yet again stored despite international pressure and largely over the issue of israeli settlement building like we witnessing from tel aviv is an increase in settlement construction so much so that the united states which is israel's closest ally has actually criticized the israeli government for its moves in this direction and now the israelis fully side have also by targeting these two high ranking palestinian

officials and this is a strike there is day resumed what seems to be a policy of targeted killings because certainly hasn't been any kind of targeted killings since two thousand and ten and this is causing many to say that there's an inconsistency in the israeli policy of this. just several weeks ago that israel released more than a thousand palestinian prisoners in a prisoner exchange deal with hamas now we witnessing it once again targeting militants at the same time we're hearing from various human rights groups that they particularly concerned that the israelis are again putting civilians in the firing line the relationship in the region is the coming more fluid all of this does set the scene for a real showdown. reporting that coverage of russia as opposed to the action rallies has been in shop focus in the foreign media some even liken it to egypt's tahrir square protests. or ports that happened twenty years ago. dockery or. sky. u.s.

senator john mccain to each dear vlad the arab spring coming to a neighborhood near you but is it seems russia's so-called slavic spring came and went twenty years ago. mccain and hillary clinton really would like this to happen and you see it in their relations to other countries where these revolutions benefit the u.s. and of course they're pushing for this but don't think it will happen there were talk me or my protests during the collapse of the soviet union hundreds of thousands were out on the streets people who actually saw. these and they will walk through that. most of the few thousand out on the streets of moscow after these elections move gone off to either not remember or be i'm able to compare san francisco and it's funny how it worked out

the middle class that exists today does so because of the politics of this government if they rebuilt the country four years ago there was a much smaller middle class if any. a middle class egyptians would dream up it's revolution praised as democracy by the west so are the military take over was. we have only one demand that the military council and the army go back to their barracks and start protecting the country that they've demonstrated they're incapable of leading the country over the last nine months to here certainly proved twitter and facebook are fierce tools when planning protests some thirty thousand have already signed after a mosque. meet on the weekend but russia should have been on my feet to egypt to rebuild from scratch can take decades tens of thousands of young people are preparing to come out onto the streets and voice discontent and that means millions want it's a safe bet many of them remember all too well the turbulent ninety's what chaos

means for such a large country and aren't willing to go back and start over and he said now r t moscow a secret email saying the u.s. state department discussing paying for information on the russian elections have been revealed russian news website life news obtain the correspondence with election watchdog goss washington discussing payments to vist some describe venting violations is backed by american and european funding claims to be independent and that all shows the us state department praising dollars and promising support present valid has ordered all reports of election body to be thoroughly investigated mr putin has warned foreign powers against meddling in the country's let's be fast. got more on the document so you can judge for yourself the time to dot com so details on the post-election protests in moscow along with video footage

and here's what else is online today. another secret cia prisons in europe are mania is the latest country to be the oldest post in the pursuit to. terror suspects the report on the. nato has reiterated its refusal to take russia's security concerns into account when the thorny issue of european missile defense has moscow's conclusion after a top level talks with the alliance and brussels foreign minister sergei lavrov says the u.s. led though isn't prepared to cooperate on the ceiling nato is deploying an antiballistic system then the borders with russia which it regards as a threat. as we left the crimean request to guarantee it poses no danger washington claims the shield is states like iran and north korea another team has been hearing

from analysts who strongly doubt that. there is no threat right now neither country has missiles that could carry nuclear weapons and only one of those countries has a nuclear weapon in the first place and also you what it would be very difficult to imagine a country of that size aiming a ballistic missile at the united states because it would be like marking the country for annihilation with a big x. is a ballistic missile is ballistic that means you know where it came for oh we're using a defense that doesn't exist. and aggressor that this point doesn't exist the worst thing to look like is that you're weak on defense so if people say we can build a shield as some people say that why not do that so i think the idea is that political pressures at home if they don't continue to push that way this administration will use it as weak and it doesn't want to be viewed as weak right now from a strategic perspective going into a national election. well some more news for you now the sorrow first to

a deadly fire at a hospital in eastern india that's killed seventy three people mostly patients hospital staff again use of branding the patients and fleeing when the fire broke out rescuers scramble to save those left behind in most patients from sick and choking smoke. started in a basement terrell's were being stored for firefighters to control the flames. renewed clashes in somalia between government forces and is the most insurgents have killed at least nine people hours of violence ended when militants withdrew from the capital which remains under control. have been waging a five year insurgency against the state as they claim is corrupt and one payments killed tens of thousands of civilians. explosion has wounded seven un peacekeepers in southern lebanon the blast occurred in the city of tire with local media claiming

a french un patrol was the target within several attacks on peacekeepers in there been since the summer including last month's bomb explosion at a hotel used by u.n. staff. iranian state t.v. is showing footage of an american spy drone that officials claim was down by the military last week the revolutionary guard says it was captured by electronic ambush ungrounded near the afghan border iran confirms six years ago that the u.s. was sending surveillance craft to spy or its military and nuclear facilities pentagon says iran is unlikely to recover data from the jail. well now a little later this hour we explore how music can be used as a weapon and even as a tool of torture the first day of its latest business. thank you terry it's been a challenging week in russia the tense all the math of the parliamentary election

has added to capital outflow and lots of volatility in the stock markets but we all the headlines happen some positive stories particularly in the banking sector which saw record results from the to be the companies see a photo explains why the country is still a good place to do business russia is obviously criticised for things that it needs to modernize itself its legal system and and other things but what russia cannot be criticised voice for the state of its public finances if you look at you know that the g.d.p. is less than ten percent. the this year the government will end up with a fiscal surplus rather than deficits if you look at every major developed nation the much more serious state of affairs russia is as politically stable as you know much much more stable than any western country where you know the government seems to be changing every every day so here i would i would see it i would see that this is well overplayed but but of course russia's russia has its own unique set of

risks but in my mind a very significant changes will. two thousand and eleven has not been the best in terms of mergers and acquisitions in russia with values fall below that seen during the peak in two thousand and seven but global bank has predict that could pick up next with consolidation of firms looking for bargains abroad. one would be in market consolidation so for example in the banking sector where you have thirteen fourteen hundred banks there is a need to consolidate in order to have both the required capital given some large regulatory trends such as movement to basel two and hopefully basel three as well as the need to have sufficient liquidity to grow the balance sheets in market consolidation for some of the old economy sectors will continue second we expect to see outward investment by russian companies and shareholders into europe and the

united states taking advantage of the situation in those markets to become more global in nature. let's have a look at the market is all prices are down on quarters of the e.u. summit later in the day my file to provide a credible solution to the region's debt crisis spread concern of lower demand wise wait is trading up to ninety eight dollars a barrel brant is about one hundred seven dollars per barrel european stock markets opened lower walk after the e.u. fell to secure the full backing of the twenty seven nations with treaty changes to help fight the region's debt crisis by coordinating fiscal policy however twenty three members agreed to form a new fiscal compact a signal that would provide extra financial support to troubled members of the region above and not moody's have to upgrade the re french banks being prepared by general and credit agricole saying that credit worthiness was hurt by the fragile

operating environment for european banks. and news from europe all weighing on the sentiment here in moscow the russian markets are suffering the shop losses of the fairy first hours of russia's tried both the l.c.s. in the mines that are losing around through ring of office says i miss my. place a lot of them individual show is on my sex oh my it is a down amid cheaper crude three point five percent in the red while luke all over four percent down on financials also under pressure. losing three percent is net profit almost doubled in the first eleven months of the year reaching nine an all billion dollars to russian accounting firm the. rushes a biggest investment companies have lost tens of millions of dollars in the third quarter due to the stock market collapse in august september we also yes in the minds it fell by eight percent and thirty percent respectively during the period

according to vet of a c newspaper troika dialog losses extended one hundred million dollars. in part because of the portfolio and evaluation of the end of the some of the loans and all of the t.v. capsule which invests in russia so losses of around sixty million dollars although sometimes have done a lot better off for instance that much of paul and outs on which it maintains a level balance sheet it's a. couple is leaving russia could lose the opportunity to buy alcohol in the country's juicy free stolz they say they can't meet new roles on constructing secure well houses to store alcohol because their locations are in tightly controlled unsafe pulls the duty free operators warned that revenues could fall forty percent if they're not accepted on the recollection. was it for me for now if you want more business news than that joy that can end there around fifty five minutes cool.