welcome back this is all she recalled the head of. international diplomacy over syria heats up with special envoy kofi annan to seek help in ending the bloody crisis all he said foreign partners are not doing enough to stop violence in the country i made a global stand up on ways to solve the conflict. anti-american protests agreed to u.s. secretary of state hillary clinton on a rival and a trip where she is giving washington support for the new the elected islam as president the pros has threatened to strain u.s. relations with israel where clinton is concluding her age nation regional toll. and

americans are losing trust in mainstream media as polls show its popularity is at an all time low but citizens are stepping in to fill the gap as online reporting moves to the forefront. next drafting a plan for struggling countries into how to quit the year or as the leading british business trip tells aussie why have things they should. today i'm talking to lord simon wolfson who is a multi-millionaire and chief executive of the next fashion chain he's also just sponsored a prize for the person who comes up with a nice disruptive way for a country to exit the euro is a lot simon wolfson thanks for talking to us today now why did you decide to sponsor this prize i suppose the prize because there was an enormous interactive vacuum nine months ago people were not talking about this the euro was designed

with all lines of retreat cut off and it looks increasingly unstable and the one thing you can be sure of is that it does break up we need a plan. and i think what this prize has done is it's taken a subject that was to prove it was a forbidden subject and it is now bought into mainstream debate moving that it's produced a fantastic finalist who actually come up with a very credible answer and why was the capital economics plan which won in the end so much better than anyone else's i think it was because it was so comprehensive it was very clear it was well argued it wasn't an reasonable in its expectations of what institutions would have to do it was clear around where the pain would be and where the game were being and it's at a path that will allow any policy maker in any part of europe sit down read that about it will be their primary that will be the first thing that they should read and can you just summarize it i think it starts with if you take their proposed

timetable the timetable is one week and the banks are closed a bank holiday is declared on the monday and over that weekend in the existing country all assets liabilities wages prices are converted into the new currency in that country so you may have been earning thirty thousand or thirty thousand euros up of us one day the next week you're earning thirty thousand. currencies and floated on the free markets and the value that currency would then drop dramatically now that sounds like a problem. actually it is the start of the solution because when the currency drops in value that is when greece can return to competitiveness and begin to tackle things like its twenty percent unemployment say the new drachma was introduced and is immediately devalued as a plan suggests how much would that affect people on the ground how much pain would that be for ordinary people in greece the world. over night very little because all

prices were changed or so yes your salary will be a new track one that would be devalued but so would your mortgage and so with the price of the goods in the shops now what would happen is of course imports would become more expensive and that will filter slip through into inflation and that will affect people's living standards it will begin to see this but at the same time you'll have an enormous competitive race to the economy suddenly domestic producers will be in at an enormous advantage to expensive imports that will create employment that will boost growth and that will kick start the whole economy again and the the history of the sharp devaluations whether it be great britain in one nine hundred thirty one britain came out of the r.m. in one thousand nine hundred two or argentina devaluation what you see is an initial hit and initial hit to living standards followed by a dramatic increase in growth and i think that's what would happen in greece and at its inception the year it was this thing that was supposed to promote growth and jobs what went wrong what went wrong is that it was fundamentally flawed in the

first place it was a classic cars kind of old horse it over time economies to converge more people move between areas and over time that a currency union forms almost naturally if you look at what happened between era. great britain over the last thirty years the two currencies almost came to paris without anyone planning it. but to force times and never economies that are so difficult was to invite trouble there was never any exit plan in place once country has gone into the euro they were stuck in that basically why do you think that was . well i think that the architects believe that if there was no line of retreat for the troops to fight that much harder. this was a classic case of sort of burning oboes it was a mistake and it was an act of extraordinary political arrogance that they were so convinced that politics could outweigh economics but they refused to think about

the possibility of failure and it does seem that we're still seeing those political and kind of ideological considerations of how weighing the economic considerations absolutely all over all mature human is the politicians will cling to their ideals a map promises for as long as they possibly can but in the end the weight of economics always wins politics never trumps economics so we've seen various attempts to shore up the recently end of the bailout for greece also cheap money flooding international banks from the e.c.b. will these measures work to think absolute you know what those measures are is they all refinancing debt that no one thinks can be paid back they do nothing to address the fundamental problem at the heart of the euro which is the fact that portugal's greece spain are left it's really all hugely overhead and as a result of that they have uncontested and unemployment rates are unimaginably high levels between fifteen and twenty five percent of these bailouts plans do nothing

to address unemployment and spread to greece and to nations like spain and greece needs to leave the euro in order to promote growth i can't see how a country whose interest rate is being held at levels that are miles above its growth rate compulsively escape this debt trap without at some point defaulting devaluing some of that debt and starting again and into greece and spain can be competitive in a fashion market i don't see how they can throw and if greece did leave do you think it stands to reason the others would then. well i think there be two reasons for us to follow the first would be capital flight the day that greece leaves and devalues everybody's bank deposits is the day that everyone in spain withdraws among the noises an instance of germany and then the weight of our capital flight may well just break the system if it doesn't the next critical point will be if greece succeeds because if greece comes out and in two years time is doing really

well and its unemployment rate has dropped from twenty to ten percent then spain spaniards are going to think hold on a second what is all this austerity about. him if they seem to be doing much better out of the system and the point to be an economic pressure political pressure for them to leave and as a british businessman how would all this affect you well there are two things that britain's got to worry about the first is the stability of all banks and that really is the government's business of the banks british banks have three hundred billion euros worth of assets in southern europe a lot of that will be devalued so that's going to be a hit for the british banks and that gap will need to be plugged whether it be through additional provision of liquidity or capital the government must be ready to do both the second thing is that traders will need to adjust their trading patterns essentially goods that were that they can buy for missing will be a lot cheaper so there's an opportunity for traders to buy more from southern european states and also the flipside of devaluation in the south is an

appreciation of the currency in the north british goods to germans will become cheaper and that's an enormous opportunity for britain both to export into germany and to compete more fairly and more effectively in the united kingdom with northern european competitors we're still seeing angela merkel holding on almost desperately to the euro trying to keep it alive is that just because germany benefits from a single currency because it's easier to sell its goods and services it in a why do you mean germany is here isn't it sort of a slightly fool's paradise because on the one hand yes it's much easier for germany to export. on the other hand germany has lent the central bank of europe five hundred billion euros that's been pumped into southern europe in order for these goods to be bored so on the one hand it's selling goods but on the other hand it's lending money that's never going to be paid back to buy those goods at a discounted rate so yes the industry seems to be doing well outstripped on the other hand the taxpayer and the banking system is coming under increasing pressure

to pay for those discounted exports. and i think people are beginning to realize that is merkel just waiting to get the money back that essentially what i think in the question is is that money ever going to be repaid oh and as as i think was mentioned earlier on this is as much a personal project project as it is an economic project i don't think the germans are just looking at the costs and not just looking at about eight they're looking at their most cherished political project of the last thirty years and i think it will take more than just cost to change their minds is that a future do you think for the european union without the absolutely i mean britain is a is a very healthy member of the european union and we're not in the euro and let's face it the european union was around a long time before the euro was introduced this absolutely no reason why the european union should not just survive the collapse of the euro and what simon wilson thank you very much to pleasure.

so for instance in saluja of. the roots of your team and for example sergio. brisk ounces movements and so on just showed councils fourteen times. as bullish. there's no nothing that you have to fund in any of the demotion study. period is a way to bring strict. it's creator. he's not alone some are more severe than others we have something that is born without skulls without organs and sometimes with their legs tied only to mr means death to those who it's pointed out.

to those who choose this window. and there celebrates it and they don't realize stand looking that there are future cuts so. this is just. so sad. i have. leakage and i'll show you the extent how much i have leakage. download the official r.t.f. location your i phone or i pod touch from the store. watch our life on the go. video on demand parties in line broadcasts and r.s.s. feeds now in the palm of your. question on the

ati dot com. one industry in the soviet union. did not display our labor schoolers for the attempt to catch up with them past the web. one really easily beat but. pressure will be ok as for those who would hurt us but this would put us still be beat. thank you.

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stories and also the international diplomacy of the sea where he'd stop with special envoy kofi annan in moscow to seek help in ending the bloody crises and russia all views that foreign policy as a norm doing enough to stop violence in the country i made a global standoff and ways to solve the conflict. on terror can protests agree to u.s. secretary of state hillary clinton on a rival in a trip where she is giving washington supportable they need to elected islam its president the prose has to threaten to strained u.s. relations with a zero but clinton is concluding her aids patient regional toll. and americans are losing trust in mainstream media as polls show its popularity is that are not all time low but citizens are stepping up to fill the gap and it's all

a lie that will change lives to the side for. those the headline is no more exciting stuff is on the way actors here with this. hello good morning nice to have you company and these are the headlines we'll do we'll formula one star lewis hamilton high old from moscow as a future venue for f one races during a spectacular visit to the russian capital. plus open road exact johnson jeev milkha singh claim playoff victory to secure a spot at next week's major. and inform the fans or bank of the west title. for the. now formula one star lewis hamilton says he would like to see the sport host a night race on the streets of moscow the mclaren driver was in the russian capital

this weekend to promote f one as part of the moscow city racing event an open top drive to greet the fans was first and then it was down to business is the british driver showed off his mclaren near the iconic kremlin walls it is the fifth time moscow has staged this. trial began to pace interest in may just for him russia russia owned f one team feel good french youngster shells peak in influence flag for the world rally championship russia will host its first f one race in sochi and twenty forty and one says potentially moscow could stage a singapore style night rates. when everyone asks me about race circuits you know in london or in moscow for the city race i'm always yeah let's do it let's do it this is you know i think moscow has the opportunity i hope in the future to put on the street race i think i've seen the same images of moscow at night and it looks absolutely spectacular so i think having a night race here one day as we do in singapore would be you know one of the

highlights of our season so i hope that you guys welcome us. while the formula one car shook the kremlin walls of the russian capital world series by rare no took to a brand new track in the moscow region the venue was designed by world famous architect herman tired and could hold f one races in the future constantly but top off as the story. the moscow raceway is the first i would track in russia that's going to host all kinds of more sporting events including formula one but it was world series by ran on that first got to try out the brand new course sitting some eighty kilometers northwest of moscow you have a lot of very good drivers in this area and it became. where you can see the formula one teams they have their their best one on the floor by this survey lots of formula one drivers including seven stand vettel and three mandela

hone their skills in the cirrus it's now become more familiar to the country thanks to a russian team our air force which boasts two homegrown racers twenty ten champion me. and not only will lead ski behind the wheel it's a new team and results are relatively modest so far but the racers are optimistic about the future as we have all the new personnel is a bit difficult from the start but now i think we're getting better and better sort of thought to be on the top with a new team have a new team a new car everything is new there is a lot of good drivers sand. and another way of travis' car is well so we need to work all together it was then we'll carry out from the low cirrus ran a two point zero who gave fans at the moscow raceway the most to cheer about the red bull junior team driver had been top of the rankings throughout this season but dropped to second before the russian stage however he drove his soul edris to win

on home to reform the opening day and dominated on the second capturing you lead the ride from the start and took the checkered flag ahead of his rival stoffel one door the eighteen year old racer is back to back wins have moved him to the top of the formal around two point zero zero standings again to her. by her happy today. terry buck's importance and. they're doing the same as. so we've reached the finish line of the first ever major morris sports competition to happen in russia and it's been taken quite on the track that most likely those f one races added to the fact that you've got one two races it's below the historic we can. see moscow region. meanwhile you'll get a renzo has tightened his grip on the motel pay standings the spanish rider crazing to victory in grand prix to stretch his overall lead the runs i would compare dani

pedrosa who started from pole on the first turn and they. never looked back after that to be into second in the result means the runs are now only to drive by nineteen points the top of the overall standings reigning champion casey stoner is eighteen points back history and had to settle for a lowly eighth spot on the day after running off the track here andrea. completed the podium i knew. it was going to be very difficult race because. it would be nice but i try to learn the human the first. two and i knew that. struggle a little bit more with. the new tires but it was and i. keep. very close. now officials are investigating an act of sabotage on stage fourteen of the tour de france it was won by spaniard luis sanchez and britain's bradley wiggins

keeps the yellow jersey but thirty riders suffered punches on the route after attacks were thrown on the road among those affected were defending champion condell evans and in an act of sportsmanship the peloton slows down to wait for the strategy to catch up rather bang sanchez was part of an early breakaway and claimed the stage with peters sargon coming home in second but it's wiggins who still leads the general classification team sky ride days two minutes and five seconds ahead of fellow briton chris froome this is the chance in a bar and great thank you dale evans is installed. another new american golfers that johnson has enjoyed a confidence boosting victory ahead of this week's open championship he troy matteson in a playoff to win the john deere classic in illinois chromaticism had lead for the first three days but despite moments of brilliance he still found himself tied with johnson on twenty and of the final round so it went to a play off and on the second extra hole johnson found himself in

a bit of trouble here but he managed to get out of it brilliantly. rolling the ball right up to the pain. and it meant madison needed to seeing his part to victory a lot of pressure and it told because he missed. left the two thousand and seven masters champion with a tap in which he sank he didn't win for too long though after a quick celebration johnson then headed to the airport to fly to england for the open which starts later this week. also heading there is india's jeevan milkha singh he booked a spot at the open with victory at the scottish open for instance how you plan to spin modern ari when also moved him back into the world's top one hundred and gave him a check in my check for six hundred forty five thousand dollars. i

think god's been really going to honestly i never thought that i would go in for a play off. it all came back to me and i had an opportunity to go for a play off the i've been very fortunate and i made a good part on the last part was that only for short like i left rome they. came through with it. i'm just excited and i'm really happy what's happened. in tennis or you know williams has retained her bank the west classic title in california she was up against a fellow american and co-founder weighty all who only qualified after another player had pulled out so it was incredible she made the final at all but she wasn't overawed and even had set points in the first before crumbling to lead the seventy five however williams then found another game in the second to take that six three for the match next stop for her is the lympics and a return to wimbledon but she won the grand slam there just.

for me is important keep the minima. and every every term and the next next day isn't guaranteed. elsewhere until it became the first home player to win the croatia open in twenty two years he beat my children only six four six to win the final. despite the defeat the spaniard gregg's into the world's top twenty in the men's rankings as fertility states fifteen and certainly claiming his second title of the year after winning at queen's club last month. was really special this week of the great tennis i was enjoying every moment and. that i wanted for the support of some work for my team and also for myself and yank eight it's out of it had a good weekend a winning the mercedes cup in germany with a three sets victory over arching time fun monaco this is the first place court

title to salvage has won on the a.t.p. tour and i. too as a bonus and finally stunning basketball skills were aplenty as america's star studded basketball team held an open training session ahead of the fast approaching london olympics the n.b.a.'s m.v.p. paid lebron james and his teammates when that is their way to please a crowd is more than three thousand military personnel and their families came to watch them practice in washington d.c. team usa are due to play three friendly's in europe before kick starting their title offends me in pictures brinkley facing host great britain and spain beat in the final in beijing four years ago coach mike produced he led them to success in china but he will step down after the london games and so will kobe bryant. i said huge era for me because you're always want to play for them to come into

your business are giving me a career opportunity. as well as well as for me my way as well as world since. i was a group has great symbolism to. me and that brings us to be end of the sport for the moment so i'm back with more into that. live. to the. mayor and more mouths to feed but where will the food come from can science provide the answers to the future of food under the microscope if we've got the future.