all. russia's president vladimir putin tells his american counterpart he is pulling out of next week's g eight summit in the u.s. just days after settling back into the country seat of power. before it's a rescue teams are looking for bodies of the victims and trying to reach the crash site of a russian next generation airliner in indonesia. and two strong explosions rocked damascus with dozens reported dead and injured the u.n. warns the spate of violence could put its observer mission in jeopardy. this is actually coming to you live from moscow with memory to josh

a lot of important has unexpectedly pulled out from the g eight summit in the u.s. state of maryland that starts next week instead he's sending prime minister dmitry medvedev and let's get the details on this from our tease peter oliver. peter tell us what's behind this sudden decision. it's been a very busy week for vladimir putin on monday how does inauguration as president choose day the election of a new prime minister and dmitri medvedev and on wednesday we saw the new will victory day parade here in moscow so president putin contacted a bed by telephone explaining that he was he was needed in moscow in order to finalize key cabinet positions. dmitri medvedev will go to the g eight and the role of prime minister representing russia and vladimir putin and barack obama will meet at the g twenty in mexico next month though the white

house issued a statement saying that they perfectly understood president putin's position if they welcomed prime minister medvedev to camp david no. but to me food is not always being the biggest fan of the g eight referring to it is somewhat outdated in preferring the g twenty summit. saying that the g twenty contained more of the mooching economies that were more important to the world nations like brazil china india countries that russia deals with quite extensively when it comes to trade know that to me a putin has said that he is committed to continuing the restart of relations between russia and the united states that was begun under the presidency of dimitri made to get it however while campaigning for the president mr putin was quite critical of u.s. foreign policy particularly concerning the way the u.s. acted towards iran also the u.s.

is intentions towards syria and also concerning the proposed american untie missile defense shield in eastern europe now. one of the in fact one of the first orders that was signed by vladimir putin upon taking the oath of office concerned a.m.d. that missile defense shield saying that he wanted written confirmation legal confirmation from the united states that any missiles placed in sites in eastern europe wouldn't be targeting russia well the issue of the missile defense shield is being a very sensitive one that's rumbled on for quite a few years now as my colleague alexy out to shift the reports. scared distrustful and even hostile these are only some of the label small sco has received in the west for expressing concerns over washington's controversial european anti-missile shield plans the u.s. wants to do you support for this missile defense system the russians on the other

hand are very was trustful of the u.s. global agenda and want to use this issue to just show up to us you people why and if you could post like that we show respond. and i symmetrical for. to make russia's position clear the defense ministry organized a special conference in moscow visualizing its warriors in a graphic collapse experts say that by the year twenty twenty when the final phase of the shield will be ready nato bases in europe will be able to shoot down russian intercontinental missiles this moscow says violates the principles of nuclear containment and would dramatically shift the balance of global power. it would have no objections to the will of the u.s. to strengthen security in europe but it cannot be done at the expense of our security security cannot be divided and that's one of the principles of the start treaty signed between moscow and washington the u.s. delegation again played down talks of

a possible threat to russia now due respect. to. security. interest you said you were very. strict. but words do not match actions according to moscow with washington unwilling to rubber stamp of those promises in a legal document until it does russia defense ministry says it will continue to grow military potential on its borders ready to act against america's a.m.d. ambitions even preemptively sujoy of them is the reason you wish you could taking into account the destabilizing nature of the missile defense system and in particular creating an illusion of an on punishable strike the decision about a preemptive use of force will be made in a period of heightened tension the deployment of new offensive arms in the southern and northwestern russia including its canned missiles in the callinan grab region

provides for the destruction of the european missile defense infrastructure. this scenario is clearly seen as a last resort however moscow is standing strong in its position sending the ball firmly into washington scored. just two weeks before the. is expected to officially launch. and while nobody has. changed. something. for the. summers now the rescue teams have not have been able to reach the wreckage of the next generation airliner that went down a wednesday but they aren't expecting to find any survivors at the crash site in mountains. the latest tell us how they're covering the

operation going on at this point. that's very normal it's been very difficult this plane actually crashed in a very mountainous region about thirty miles outside of jakarta where there was a dormant volcano so as of right now there have been conflicting reports but the latest that we're hearing is that the search authorities have not actually made it to the scene of where the plane actually crashed helicopters were able to identify the airplane early this morning they had to stop their search of the plane last night because of fog and visibility problems and the fact that it was raining so as of right now on the search the search teams are still on their way trying to get there and there were thirty five people on the plane we're hearing on and authorities are saying that there are no sign of any survivors and we do have pictures of the site and also many of the family members of the indonesian

passengers on the plane had gathered in the awaiting word from the search authorities about what had happened and they're actually hearing the news now the latest that the plane actually did crash and so obviously there's a lot of mourning going on today in jakarta. i actually was doing one of two demonstrations that had already done one yesterday which had been successful and about twenty minutes into the thirty minute demonstration the plane lost contact with the rate with the radars and the aviation authorities got signals from the plane that it wanted to land it began descending and that's when it was not able to be reached again on this was part of massive air show the russian sukhoi superjet one hundred had already visited kazakhstan pockets not and me on mar there were many airline executives on the airplane and journalists who were there to task the jets performance on indonesia actually just did

a three hundred eighty million dollars deal last august to buy a bunch of these russian suv. one hundred s. so obviously those was meant to be sort of showing off a new technology a brand new airplane and things went terribly terribly wrong as you were saying. it was on a sales airshow in the region was supposed to go to laos and there are. now what's what does this tragedy for the flexion program in general. well that's an excellent question it's too early to say really but you know many people are starting to wonder there were a lot of potential buyers a lot of potential customers there you know this plane was actually the first russian commercial plane built after the soviet union in two thousand and seven and it was first tested in two thousand and eight the first commercial flight of this model was just last year in two thousand and eleven nothing like this is happy and

a lot of pilots that we've spoken with have said that this is a very treacherous area to fly yesterday there were a lot of bad weather conditions as far as rain visibility lot of the pilots that we've spoken to have said that this is most likely human error so it's hard to say how this is going to affect the business transactions on there are already one hundred seventy orders placed around the world for this airplane a dozen have been built in a dozen are already under construction as well but right now most of the people here in jakarta are focusing on the human lives that were lost day and the tragedy surrounding this whole incident. all right thanks very much indeed for bringing us the latest from jakarta our correspondent. for you know we're of course. monitoring the situation there and we'll bring you the latest as we get out of what you watching our team coming to life from moscow still ahead for you this hour. the financial crisis and project cuts in the u.s.

for people to leave their homes and even seek legal solutions help find out more in just a few minutes. how to largest logins have shaken damascus dozens are said to be dead and wounded these blasts are the latest in a spate of violence in syria despite the apparent cease fire we now get the latest from our correspondent in syria say or so sara the blaster and the other blow to the u.n. backed peace plan so what are the details here tell us more. well this explosion happened around seven fifteen. this time we actually from the sense that the math just felt the loss from our hotel a lot of people in the stands realize that something had happened now this is in the. area of damascus is slightly outside of damascus on the road to the airport and it's in a lot of civilian areas you've got the schools that are nearby in the area it's

a very central road that's used between damascus and that. university nearby as well and the number at the moment people killed and injured with reports is around two hundred people in place will twenty five of. the mates have been killed in this bill we've heard a lot of people who are in a critical condition being taken to the hospitals that announces two car bombs that exploded one coming a couple of minutes after the other explosion at the u.n. observers who of course here in the country trying to see the implementation of the peace plan they go into the scene this morning the head of that mission. general robert needs made a statement that he said that what these people are doing is not helpful he was very sorry to the families and that the people who are doing this should stop and find another solution without killing civilian people here in syria so. of course there's a lot of people who are going to have been affected by this today as we said the

preliminary report still coming in about the number of people who have been injured amongst them is still there are some security and soldiers but it is thought that a large number of these people are civilian people of course extremely concerning this comes on the back of the explosion we saw yesterday near the u.n. observer mission at a checkpoint so really you're seeing this sort of rise in these types of attacks certainly in the central area coming at a time when the u.n. missions here trying to implement this peace plan the cease fire and get some stability on the ground. what indeed as you were saying these bomb attacks surely pose a threat not only to the civilian population there but also to the entire observer mission given the timing of the attacks downing. yeah absolutely i mean it's been it's been interesting following the u.n. observers around and seeing how they're operating and by and large that they felt they've been welcomed by both sides that i mean we've really got to make a distinction here in the situation in syria right now is with the opposition it's

very unfortunate because sometimes this sort of lumped into this one group and is certainly not how it's working at the moment you've got an opposition inside the country the national coordinator who are very much behind the u.n. peace plan they're very supportive of that outside of the country and the opposition rhetoric is slightly different and we saw yesterday the syrian national council releasing a statement accusing the regime of being behind this attack and of course there is in his set released a statement saying again that this is the work of terrorist groups operating within the country it's very very hard to cut through these claims and counterclaims that we've seen right from the beginning of this conflict and it really muddies the waters from both sides you get this very strong blame game goes on and it is hard to know what's happening to what we do know from being here on the ground with the of services when we're talking about the oppositions that are at the moment and it's widely acknowledged there are criminal gangs operating in the country there

are foreign nationals who have come in who are fighting in this country we know that some of the armed opposition groups are being funded as well from the outside and indeed some of the gold states get made very very clear that they're behind funding the armed opposition and getting on the armed opposition is not the important thing to take into account the extent the extent of how much these groups are operating and that's what's really unknown at the moment and that's what the u.n. observers are going to be looking at very closely when they travel around the country because really this is a big dilemma for the syrian people is that you know it comes back final responsibility to what many people say is the actions of the regime that have caused the situation in the country that has. now let the door wide open for this evolvement into variance for many different sides that could have a serious effect instability in the region and of course the big concern now is with this u.n. mission i think these examples of these explosions of the violence the type of

violence that the syrian people are experiencing at the moment really serves to highlight just how vital it is that the u.n. mission is to pour through this still only seventy observers say they still have to get the total number in the country needs to be supported it is the best and many people think the last chance for syria so you have a chance at a cease fire have a chance that stability before you see the country descending into our by civil war which we're already seeing in some parts of the country all right sara thanks very much indeed for keeping us up to speed with what's happening in damascus that was sara first reporting on the two large explosions that shake and the kids here in capital damascus. now all the towns to form a coalition have so far failed in greece as far away after. rejecting proposals by the probate parties this comes after sunday's parliamentary elections in which no party managed to secure an overall majority without a deal greece will be forced to hold

a new election in june german chancellor angela merkel said any new greek government must stick to the austerity plan while also stressing that cuts and structural reforms are the only way out of the crisis experts warn her demands on afghans are unrealistic. he says. speaking as if. the implementation if you look just. agreed between the government and the european union. is a matter of when. greece wanted to implement it then you would be able to do it. this is profound. greece cannot implement this plan because this plan cannot be implemented by anyone it flies in the face of economic activity. but if greece doesn't try to implement it as it has been doing over the last year and a half or so all that will happen is that it's going to get worse that the session

is going to deepen and there's often gone he's going to be more into its current coma so what mrs merkel is asking the greeks to do is mission impossible. the violence in syria and iran nuclear program will dominate talks as russia's foreign minister of business china the two countries generally see eye to eye when it comes to global matters chain from peking university says it makes sense for both sides to work so closely together. every major global power really benefits from this little stability both countries but entire world stands to benefit from a peaceful resolution to the crises in syria and what's happening right now between israel and riyadh so both countries benefits from each other i would say if you were to say it's more than what was said but it's certainly china because you could argue that russia the russian economy is self-sufficient where china very much is

it it's economic growth it's very much dependent on global stability and global economic growth you could argue that after the fall of the berlin wall the united states start to retain. just proportionate and really under reasonable and ultimately unsustainable amount of global wealth and power and now what we're seeing basically is that we don't see where russia china and the brics countries are still a rising influence and i think that's the way it ought to be for too long we've been a huge you know polar world and that has great a lot of issues and we're still going towards a world which i think it's all to me more reasonable and more sustainable. and you can go deeper into our stores at our tea dot com so online you can find out how your brains jail the expert here is no longer on hunger strike has been moved from prison to spittle after ending her nineteen day protest after claims of abuse from prison guards. and thousands of troops and the price of military hardware and

helicopters russia honored its veterans celebrating sixty seven years of victory over the nazis in a world war two with a spectacular parade on red square to watch the action on our you tube channel. that's not a good look at some of the stories from around the world football fans clashed with police and the spanish capital overnight thousands boarded to the streets celebrating athletico madrid victory and if you were obsolete file violence erupted when a small group of fans started throwing bottles and stones at police it tried to push the crowd back. several people were arrested after the confrontation. believing the riot police have fired tear gas and anti-government demonstrators in the process clashes broke out and sauza workers protested over pay and work conditions the laborers were joined by union members united in their opposition to the president it was a very different scene in the city of karbala where people gathered to show their support and solidarity with the government. rock obama has become the first

american president to back same sex marriage he said gay couples should be able to wed legally thus ending months of dodging a direct answer about his position a bomb also mentioned it's important to him that all american troops are able to commit to marriage their mark follows a vote on a constitutional amendment in north carolina that makes it the twenty eight states to prohibit same sex marriage. now more than two point five million homes in the united states have been repossessed by banks since the financial crisis struck the country anger over the cripple economy is deepening as people struggle to find work pay their bills and keep hold of their houses and that's forcing increasing numbers to turn to lease a ways out i just want to caution of i has the story. dozens of police and swat teams sworn in on the small central california town not what you'd expect for what was supposed to be a routine foreclosure but at this point we believe the suspect is barricaded inside

of the apartment complex we don't know anything about him we don't know what the motive is behind this shooting all we know is that we have two people dead apparently forty five year all jim richardson a rarity oh had his motives he was losing his condominium because of her fifteen thousand dollars home act with the loan he could no longer afford to pay the condo was sold to the auction for a knock down price and ferrero was handed end of action notice it proved to be the last straw for the former security guard who barricaded himself inside his home and refused to walk out to life and worryingly such an extreme act hasn't been an isolated incident in this area public safety as a whole has been affected by the economy just like everybody else live there isn't anybody in the community that hasn't been affected by this economy last year the town's foreclosure rate was the third highest in the country with a one in average nineteen properties reposed by the banks the entire region is

ravaged by unemployment and budget cuts and it's a story being repeated nationwide with a quickly bloody consequences in phoenix a man opened fire on police when he refused to leave his house in ohio an old married couple killed themselves when the faced with a vexation while in florida and then was gunned down by police after he said his recently for close town house on fire these doubts by foreclosure killings have been going on quietly around the country average since the financial crisis threaten to pull the rock from those only surviving on credit i think people get desperate and they don't see. the light at the end of the tunnel that you know it's ok if i lose my home and i. somewhere that i can afford and i can rant i just think we really get it. and are very reluctant to

give it up and i think it brings on. desperation when you. was no sign of any recovery in california's economy and stubborn unemployment it means the body count looks set to only grow in the months to have x. prayed for because the huge surge in home foreclosures this year while the threat of a shadow infantry of soon to be foreclosed homes continues to hunt housing markets there is a question how many more depressed people forced from their own homes and with nowhere else to go are pushed to the very edge determined to do anything it takes to stand by their property till the bitter end of the question archie reporting from california. and i was press over to the business ask were natasha is waiting with all the latest business news so what's driving the markets the sour well maybe not all eyes are on europe it's been in the spotlight for quite a while but especially after over the past week both greece and france voted

against candidate the candidates that supported austerity measures that really raises a lot of questions about the prospects of europe's economic recovery let's check out european equity markets to see how they're doing and as you can see both the foot sandy sasso managing to hold on to their gains apparently many traders see wednesday's major own losses as a buying opportunity but of course some of the fundamental issues remain namely greece really worried investors after all attempts to form a coalition government have failed there are concerns that to my drop out of the euro zone in the near future on wednesday the eurozone rescue fund to said it will transfer four point two billion euro to greece on thursday as part of its rescue package but that's one billion euro. less than planned the european financial stability facility explained its decision by saying the remaining one billion is not needed before june and it will be distributed depending on the financial needs

of greece and same with the eurozone spain has decided to partly nationalize its fourth a largest lender kiya to clean up its financial sector the deal will give the state a forty five percent in direct stake in the struggling bank which has more than thirty eight billion euro over exposure to troubled loans the government is expected to lend or to give bunky up to ten billion euro in aid but analysts say that's not going to be enough and of course that brings us to the currency markets and at the moment the euro is gaining against the dollar but as a general trend of course all cautious investors really pile onto the dollar which means the euro is trading near a three month old low and the russian ruble is retreating against the major currencies including the dollar and the euro and oil was trading all lower most of the day on thursday but at the moment a brand has bounced back into block and it's actually staying in the positive

territory while there is still shedding value and as always is one of the major factors for the russian equity market so let's see how those are doing the russian markets are mixed as you can see the mind sets is actually staying in the block again around a quarter percent while the r.t.s. is less than half a percent in the of the red that's after russia's central bank decided to keep the refinancing great unchanged and some of the biggest movers on my sex including the financials about so v.t.v.m. russia's largest lender is bare bank it's actually gaining after it's reported a fourteen percent increase in first quarter net profit but that's going into the russian. accounting standards and of energy majors are also gaining value despite makes oil and a loop oil is one of the biggest gainers there and the crash of these sukhoi

superjet one hundred in indonesia has put into doubt russia's ambitious plans to join the global aircraft industry although the newest plane as it was biggest project in two decades with total spending topping one billion dollars the producers of the jet initially aim to sell eight hundred units by twenty twenty nine and that would take fifteen percent of the global regional jet market they still hope the incident will not affect the sales but analysts say potential clients will certainly wait for the results of an investigation the soup oyster project one hundred s. currently used by our army is the air carrier arm avia as well as russia's air flow both companies are now ruling out a grounding of their fleets that's all the latest from the business desk money and i'll be back in about fifteen minutes i'll see them all right this is thanks very much indeed for this i'm coming out here on our team as debt problems threaten to

swallow europe we ask an american icon an economic pundit if there is a way out that's after the headlines stay with us.