not managing the greek economy there's nothing that's i might's i might be provocative here but that's all it is the. monetary funds. population decline is one of the toughest problems russia faces in the long term but the disturbing trend can be reversed according to the prime minister in the latest campaign article and his bid to return is president vladimir putin has put forward plans for social reform that he hopes will significantly improve the demographic situation the proposed measures include better welfare for families with many children and smarter immigration problems these including the rick ratchford nation of russians living abroad but the article titled building justice also focuses on salary hikes for teachers and doctors as well as making housing affordable to everyone by twenty thirty but there are foods it has ramped up his election campaign in light of not opposition protests so as political analysts

revolve it explains now mainly addresses russia's middle class. and i hope is that we don't know the stance that he's electorate right now it's not reach you know reach c.t. people he's a trip these are the real russian naval quasi military people who are you know believe in small towns who are really hard. to their market according to the c.t.'s so i hope he's economical polish a little more to it and you know we've had. former finance minister paul did we know that different to the right now we believe which of rights he wants to give you the states war two he's really would accrue which means you know the nossal the russian people. well you can always read more of our top stories online at our two dot com here's a look at what's there for you right now the war over words continues as the u.s. navy says it's ready for fend off any threat of the iranian primakov and it's time

to read more about the world war two tactic tehran is talking about on our web site and. also online nothing says i love you like a cockroach find out more about the creepy crawly valentine's day give some wild birds are sharing with their sweethearts hard to imagine why but check it out at art's new time com. after more than two decades the a factor of one of the world's worst ever industrial disaster still linger in bob hall india now that scandal is fixing it thout to london's attempt to state a green olympic games this summer or it is there a ban it has more on the controversy. organizers claim is the greenest most sustainable a limp dick games ever but

a poisonous cloud of controversy hangs over london twenty twelve because of links to this at bhopal gas leak one thousand nine hundred four one of the worst industrial disasters of all time the left a toxic legacy still claiming lives the company responsible zahn now owned by dow chemical and major olympic sponsor meredith alexander was part of the game's ethics watchdog but is just quit in protest all of it is supposed to be about us and instead all of us are going to have a toxic legacy i doubt have. fifteen thousand people died when poisonous gas leaks from a factory in rural india a subsequent fall out killed another ten thousand congenital birth defects in the area a ten times the norm in the rest of india for was ten at the time the gas she inhaled left permanent damage and there's still i can't believe how it will open

higher and the money's been. fair i got just one thousand dollars compensation part of four hundred seventy million dollars payout in one thousand nine hundred nine by union carbide factory owners dow chemical company in two thousand and one but denies any lingering liabilities but the indian government disagrees demanding dow stumps up one point six billion dollars to clean up the contamination that lives on people's building that water that has been contaminated. but actually children of being born with deformities people have more clowns there's courtly in and there's there is girls have problem with their periods all kinds of issues that have have risen from the largest city that has been left behind where this oil is

for actually dow chemical is paying for the fabric that will be draped around the stadium olympic rules forbid any advertising during the games itself but now is allowed to splash its logo all over. before the games actually begin but it's now said it's not even going to do that says it's nothing to do with the protests but it does mean it's paying seven million pounds for something that won't even show its name but dow will still be able to call itself a sustainable a limb pick a partner and organizers say their conscience is clean supposedly thanks to a green light from the ethics watchdog absolutely i deny i agree with that it was the question was asked to look at the process and there were discussions within the commission and i lie selfcentered a lot of evidence that. and then i was shocked to see a public statement come out i would never have signed off as a chemical refused to speak to us so did london organizers instead they issued this

statement from twenty twelve chief lord coe. i absolutely stand by our procurement process down by a distance the most sustainable solution to our rock and we're comfortable with that a boy called from india now has been called off but india is a limpid community is still demanding down to be dropped with just six months to go it's unlikely they'll get their wish leaving claims of a sustainable legacy severely injured out i've been it r t london. to date from the news desk let's check in with kareena at the business to ask forgiveness. welcome to business update here on r.t. thanks for joining me there's been a burst of interest in russian chess as the beginning of the year returning growth of the u.s. and progress with your stat is fueling appetite for risk this is helped reverse the

trend in capital flow last year more than eighty billion dollars for the country so far this year there has been an inflow of one billion. church down from renascence asset managers says that the perception of russia is changing. there has been no change of rocky troops awards of the russian equity market since the beginning of the year and. demonstrated by the bed the russian equity market has outperformed other markets in the world so to give you plenty of russians not nearly twenty percent since the beginning of the. us market has gone up only by seven percent since the beginning of the certainty only for the olympics and seems to have subsided very much market thanks but patience now. will come back as president and the one difference which we have relative to this time last year. bigger expectations for the former. president. let's have

a look at the markets now exchange rates for us the euro is getting value on using fears over the greek debt crisis and stronger as well as pushing the ruble higher against both the good and the west currencies was recovered from a three day loan concerns growing at a on a gradient to make up supplies lights were just trading over one hundred dollars per barrel brant is it over one hundred eighteen dollars a barrel. u.s. stocks open high after greece's parliament voted for spending cuts over the weekend aimed at saving the country come back safe but that's all stocks are on the rise shares of bank of america job pretty frequent tech stocks are high as well with shares of apple. leading the advance out the rows nine dollars a share clearing the five hundred dollars. first time in history and european shares are higher as well after greece's parliament approved bets to pay off their bill paxon among the main gate has a cost europe miners are also high asked stronger euro how the price of copper the

metal. here in russia markets closed in the black for the eyes it's gaining the most in five weeks energy majors among the biggest gainers let's check the index movers on the isaacs is our guest. and there are one users here in market share by four percentage points to twenty seven percent last year ne ne field was the biggest mining company advanced in most of the month on higher prices partly killed and poised gold was lower though on news merger talks between the company and another mine appalling level collapsed. and it's going on now to russia's growing food retail market which keeps on learning for investors seven eleven is one world renowned food chain thought to be eyeing up the market according to media reports the company hasn't officially confirmed they were worse last year the retailer said its priorities were present in india analysts say that seven eleven will have a hard time to develop

a food chain in russia alone they added that the most logical move would be to team up with an existing market player left the former chief of russia's biggest retail group x. five who is now the senior vice president at walmart believes there is just a couple of ways to enter the country's market. all of the way war and from pressure markets for the. police to visible on the market or dragon for leadership position is a position of some existing players. just with solutions when you don't know your story at all saw i think within the next year some other companies will think about russian market from the way to enter the market it's a business update this hour stay with us for headline news coming up next.

a little bit of a. if any. one submit. it. to. the moon. turn on the big old ones see the sun for ever. get on sometimes you see a story and it seems so for like sleep you think you understand it and then

a glimpse something else and you hear or see some other part of it and realize that everything is are you going i'm sorry. the bubble up the book. the book. the book the direction our t.v. live from moscow our top stories israel blames iran for attacks on israeli diplomats in georgia and india in which four people are thought to have been injured. russia says it regrets the arab league winding down if observers were in syria and stresses a proposed peacekeeping mission could be deployed only once the government in opposite. forces agreed to a cease fire. and fire in protest and now claims problem by chaos and looting as

public outrage escalates after the greek parliament processes a new austerity bill to secure another even better. start to his cross-talk where peter the valen has gas tackled the crippling austerity being imposed on the people of greets. live. technology innovation all the elements of. the future. hello and welcome across time people about in these hard times there's no shortage

of austerity came a slashing of budgets and the shrinking of the welfare state generate jobs and returns to prosperity and just the pursuit of posterity in character the democrats . live. to cross-talk austerity measures around the world i'm joined by people mauldin of london she is president and founder of prince a policy asset management also in london we have fragged his cause philippe is he is a senior lecturer in international business at the university of kent and in new york we crossed to dmitri papa dimitrios he is the executive vice president of bard college i focus is on a fact that means you can jump in anytime you want to meet if i go to you first in new york can austerity bring back prosperity because we have unemployment is right on the increase particularly in the euro zone and the prospects for employment are pretty bleak how can you have prosperity when there's so much unemployment and

people would say austerity creates unemployment because of the loss of jobs in the public sector. well applying a steri the. kleinian moment already climbing economy is not the right medicine clearly. economic. when there is an increase in demand an increase in demand if it doesn't come from the private sector and need to come from the public sector so therefore when one talks about a new one can i be as general and suggest that we can bring prosperity clearly an unemployment rate of over eight point three percent as it is in the united states cannot happen by itself when you buy the private markets unless the forecasts a short and get commonly are actually will girl girl doesn't come automatically and we have seen that in europe as well whether it would be in the southern tier

southern economies in europe or even in some of the northern economist france and germany is actually experiencing some decline in trends ok people what do you think about that i mean i mean we see a sturdy it will be with a vengeance in europe and we can go to southern europe my all the way up to germany the french are be experiencing it as well how can what is this the right formula and dimitri says it's not right for me and to bring us back to prosperity because a lot more and more people are just being a misery. well i think look the bottom line is it's really interesting people won't agree to us territory or comply with us terry if things are getting better you kind of need to be in bad times to get people to understand how serious a debt problem is and that it needs to be addressed i mean nobody was interested in addressing the debt problem during the boom it's only during the bust that people start to understand why but it is true that are scared he doesn't alone create

price prosperity what does create prosperity are small entrepreneurs and this is really important two thirds of the net new jobs in all industrialized economies are created by companies that employ less than fifty people now when government is shrinking this actually does create some opportunities for the private sector and new york city recently announced that they can't afford to keep the public buildings clean anymore so they privatized the contracts to some private company got a five million dollar contract i'm all for that but it doesn't create prosperity overnight no and doesn't create prosperity by itself definitely not it's what creates it is innovation and change but the fact is that when you have spent and you earn you can make your way back to prosperity until you fix your debt problem that's one of the reasons we can't fix the debt problem by adding more debt to it it just pushes the problem into the future so it's not the key to growth it doesn't make growth happen but you also can't have sustainable growth if you don't do it ok if sailing break

is close what do you think about that what is to formulate and where does our sturdy play in all of this here dmitri thinks we're doing it at the wrong time it's very very interesting observation what do you think. well i think i think both speakers hearts some points were very very important yes dimitri made the point about growth and obviously we need to always remember that that is not just an absolute number is basically as a proportion of the gross national product of its country and then i think people mention one word which is really really crucial which is innovation i think what we're seeing though at the moment and the main problem that we're seeing at the moment is the austerity is not equally distributed amongst the different parts of the population so effectively you get some people paying more than others without necessarily deserving done and the other thing is you you you apply austerity or is

on telly and this is going back to what people said about innovation you apply a steadily santelli you achieve nothing but the government will still need to build infrastructure the government will still need to educate people because that's the basic role of the government and this is how through the upgrade of human capital you can actually create people that small and medium enterprises can then employ and innovate and create new knowledge and take the economy forward so i think the problem is not as simple as you know we need to spend more money or we need to allow small in these small or medium enterprises to growth i think what we're lacking at the moment is two things this fair distribution of austerity measures that's one and the second thing is this strategic direction which i don't see happening in anywhere in the world at the moment we all talking about cuts which is fine yes we need a sense all governments need to send a signal to the different markets financial markets primarily who look like they don't need the world at the moment but on the other hand you need to think how you

spend your money in a more effective and more efficient way and where you spend your money is the key question that we need to address i think that's a key quite we go back to the media that's ok usually ok people go ahead with a political decision that's very interesting that's a political decision not necessarily it's not a common sense go ahead. but that is the point that all these decisions are just real and that's why i want to follow on from the comment to say look us therapy is one way and which a state defaults and the real issue here is the burden of debt is so we normalize the human beings can't bear the pain of paying it off so one of the ways in which a default can occur well you can do the argentine style we'll just never pay back and you don't have to do us terry or you can do with the greeks are doing which is will pay you back but a little later and a little less that's the haircut option we're going to see a lot of that in europe because the third is austerity the state thought so new the citizen makes you pay more taxes makes you work harder makes you retire later all that stuff doesn't pick up your rubbish anymore the fourth option is inflation and

that's what the u.k. is doing and i would argue that's how the u.s. is going to get involved on its debt ultimately and then the last option is devaluation which you may or may not be able to do depending on the situation but the point is us there is only one way of achieving a default and so it is correct you have to think where does the burden of pain fall on the citizens depending on each of these choices and that is a political decision i mean you want to jump in there go ahead. but you know years i think it was thirty of these a very loaded word and i think it's very difficult for us to determine how do we get sorry mr clooney horses on the list or these are the appropriate measure to apply it one has to determine why is that totally brought to the cruiser's to apply it was there again you know it was stated in the united states is different than was thirty. degrees h. or greece does not have its own currency literally aids in the united states it has

its own its own currency so there's one k.'s to be made greece could default the united states cannot be fault so there is a difference between between those two also when we're allowed between crees and we have to. find actually why and how did you koreans it's not easy to suggest that somehow or other since all the counters in the euro zone we're allowed to borrow the banks are allowed to go oral are very low interest rates and pile out. on our government debt which was very little bit higher so they can make their profits this is not all there is to turn out and say well we allowed this to happen but now it's time that the party's over and therefore the population has to pay for it or a clearly a very significant national london frankly because i think what's really interesting here is that the greek situation opposed it was like going on in the

united states is a big greeks have just lost their sovereignty i mean like it or not it's verlyn in frankfurt and brussels they're vanishing their economy and they're in there this is something that's really a stark departure from what people call the european union is supposed to be about go ahead there's the problem the problem is that germany and france are not managing the greek economy are just managing the big bed and over the last over the last couple of days i haven't heard anything about how we can return the economy to growth we're still looking at very some very deep recession figures for the greek economy for the rest of the year last night the indication was that the economy will shrink another five percent until the end of this year and someone made the scenario about returning to grow things twenty thirteen which i don't necessarily see happening and the just thing the geishas that germany and france are going to create this new fund where all the money that they're giving to greece are going to go in order to pay that the. basically the greek debt off instead of money being

spent on the economy to develop the infrastructure it's there not managing the greek economy there's nothing and that's right here my it's and i'd be provocative here but that's always the. monetary funds we get if people find out to you i mean that's what i mean you're right you should go ahead dimitri no go to the break go ahead. yes i think i think you should know that greece does not have an industrial base that is basically a consolidation economy so you're absolutely correct the hundred and thirty billion euros are going to be used to actually roll over the debt that already exists and therefore you won't need to do anything in terms of a girl establishing a growth path for the greek economy to grow so you're right in two thousand and thirteen is a pure fantasy to expect that greece is going to grow it is not possible for griese to actually step too big to actually develop. as had surpluses so they can actually

service instead the debt is going to be very high and it's not going to be salvaged with this new bailout for the people if i go to you the more i you know ok great all right thank you before i go before we go to the break here i mean that paying off the debt let's be clear it's paying banks ok and this is their game. this is this saving the banks a banking system i mean the average person in the right has nothing to do with the average person in athens correct and that is why won't be enough for greece to default they have to actually exit the euro and get control of our currency and gap all right we're going to assure you we're going to go to a short break here and after that your break we'll continue our discussion i'll stary state with our city.

for. the few. wealthy british scientists are. plenty markets finally. come to. find out what's really happening to the global economy with mike's concert the no holds barred look at the

global financial headlines tune into kaiser report on r t. d c. because i'm about to imagine we're talking about austerity in troubled times. you can see. the need to new york and i to go to you i'd like to read a quote from angola merkel she said in this crisis we have reached a whole new level of cooperation we have arrived at a sort of european home affairs europe is domestic policy that's a remarkable statement because that's that's a very incredible political statement because we're talking about fiscal and political union to the max now because greece has washed its sovereignty of law it's lost its economic decision making ability and if trends continue others help

small countries within the euro zone will also follow suit. this may be a remarkable political statement but not inspiring state closer to think that with one talks about it fiscal union or. one has to be able to understand what this means and united states of europe need to be thought there's a guy that states of america you know this is america has a center of fiscal fiscal agent that's called the united states treasury that does not exist in europe what exists in europe is that every country cannot have a budget deficit above the three percent and to that and also furthermore that from now on every continent in the euro zone should not even have three percent reduction of a constitutional amendment that it should be even much lower than that even a one percent except in some difficult times this is not what i would call the

fiscal union and this is it is not possible for every member of the eurozone group to create surpluses so that if you just possible to vent your uterus on to be in a even keel based on the definition of the odds. of america believes and president sarkozy would make a major fan stay with you when you are i mean i can say with you in new york every but when countries join the european union i'm sorry the euro zone they didn't sign up to this kind of economic policy at all did they i mean this is turning into a straight jacket i mean people didn't vote for this they voted to have a common currency they and these were talking about oh you're right it was a correct because the euro goes a euro project is an incomplete project you cannot have a monetary union without a fiscal you know and along the same lines in the united states and you can have a political union.