the scope of. the. russian airliner. at two thirty pm moscow time these are the top stories from archie russia's foreign minister claims foreign partners have tried to blackmail moscow saying that if it doesn't support un resolution allowing action against the u.n. observers mission it won't be prolonged sergei lavrov says u.n. monitors in syria are trying to establish peace should not be using used as a bargaining chip. and the american protest u.s. secretary of state hillary clinton on a violent person is given washington support for the new the alaska because it was

president this thread strained u.s. relations with israel where it is concluding her nation regional war. and americans are losing trust in mainstream media polls show its popularity is at an all time low but citizens are stepping in building on line reporting new to the forefront. and next drafting a plan for struggling countries and how to create the euro as the leading british business chief tells r t why he thinks they should go. 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 wilson thanks for talking to us today now why did you decide to sponsor this prize i suppose the prize because there was an enormous intellectual 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 if 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 unreasonable 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 party that will allow any policy maker in any part of europe sit down read that about it will be their prime and that will be the first thing that they should read

and can you just summarize it i think it starts with you if you if i take their proposed timetable the timetable is one weekend the banks are closed a bank holiday is declared on the monday and over the weekend in the existing country all assets raw abilities wages prices are converted into the new currency in that country so you may have been earning thirty thousand pounds or thirty thousand euros up of us one day the next week your earning thirty thousand drachma . that current. then floated on the free markets and the value of that currency would then drop dramatically now that sounds like a problem but 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 see the new drachma was introduced and is immediately devalued as a planet suggests how much would that affect people on the ground how much pain but that be for ordinary people in greece the world. over night very little because all

prices would change as well so yes your salary will be a new track one that would be to value but so would your mortgage and so would the price of the goods in the shops now what would happen is of course imports would become more expensive and that will filter flip through into inflation and that will affect people's living standards will begin to see this but at the same time you'll have an enormous competitive seats to the economy suddenly domestic producers will be in at an enormous advantage to expensive imports that will create employment 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 it's 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 call it's kind of old horse over time economies to converge and move people move between areas and over time that a currency union forms almost naturally if you look at what happened between era and great britain over the last thirty years the two currencies almost came to paris without anyone planning it. but to force them to hand over economies that are so difficult was to invite trouble there was never any. the exit plan in place once country has gone into the euro they were stuck in that basically why do you think that was i think that the architects believe that if there was no line of retreat to the troops of fright that much harder. this was a classic case of sort of burning. 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 kind of ideological considerations of how weighing the economic considerations absolutely all over all make you a human is that politicians will cling to their idealism and 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 all say 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 apart of the euro which is the fact that portugal's greece spain ireland italy are all hugely of a drag and as a result of that they have uncontested and unemployment rates are unimaginably high

levels between fifteen and twenty five percent of these bailout 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 from miles above its growth rates compulsively escape the state track without at some point defaulting devaluing some of that debt and starting again and into greece and spain can be competitive in. national markets i don't see how they can grow and if greece did leave do you think it stands to reason the others would then follow what i think would be two reasons for us to follow the first would be capital flight the day that greece leaves and devalues everybody's friend deposits is the day that everyone in spain the tools that make the noises and to germany and then the weights of our capital flight may well just break the system if it doesn't the next critical part will be if greece succeeds because if greece comes out and in two

years time is doing really well and unemployment rate has dropped from twenty to ten percent then spain spaniards are going to think hold on a second what is all this source verity about. him 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 good is the word 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. 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 built 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 what out of it from 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 our money back that essentially what i think in the question is is that money ever going to be repaid oh and i was as i think was mentioned earlier on this is as much a political 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 there 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 this race in 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 notes i'm going to also to thank you very much pleasure.

so for assistance a new job the rates of. the rates of leukemia for example is thirty eight times but . breast cancers more than ten times childhood cancers fourteen times i forget the exact details but the shoots numbers there's no nothing that you have ever found in any epidemiological study anywhere ever there is a way that brings victory. to its creator. he's not alone some are more severe than others we have something to be born without skulls without or against and sometimes with their legs totally to mr black means death to those who it's pointed out.

and to those who choose this window. and that celebrates it and they don't realize it's stand looking at their own future cuts. on. this is just. so sad. i have. leakage and i show you to the extent how much i have leakers.

culture is that so much of the moment and there's a huge music to share her mind her at home to mark let me jump and it's interrupted revolution intensifying standoff getting a democratically elected president against entrenched military is polarized. wealthy british style holds. on to the right let's go. with the. markets why not. find out what's really happening to the global economy cause a report. released

. more news today violence is once again fled up to for these are the images the world has been seeing from the streets of canada. showing up for a shelter all day. look. martini's

top stories russell's foreign minister says foreign partners have tried to blackmail moscow saying that if it doesn't support the un resolution allowing action against the u.n. observers mission won't be prolonged sergey lavrov says u.n. monitors in syria who are trying to establish peace should not be used as bargaining chips. anti american protests greet u.s. secretary of state clinton on arrival in egypt which has given washington support for the newly elected islamist president the strengths of strained u.s. relations with israel where clinton is concluding her eight nation regional tore. and americans are losing trust in mainstream media as polls show its popularity is

at an all time low but this is our stepping in to fill the gap on my reporting moves to the forefront. in days to go now until the start of the summer games olympic fever is certainly building in london with more on that here's andrew farmer and sports. hello there thanks for watching and these are the headlines touched down the staff late arriving in london for the start of the lympics. while touring williams get ready for the game by picking up another title just a week after winning wimbledon. and last minute bookings and johnson and jeev milkha singh claim playoff victory to cure this week's official. now athletes from russia the usa and china are among hundreds of competitors arriving in london today ahead of the lympics the games start in eleven days time and over three hundred

athletes are coming into heathrow airport today along with over one thousand games family members the u.s. sailing team were among the first to touchdown early this morning volunteers are on hand to make sure they transfer to the limpid village in east london without any hiccups and when they get there they will receive a warm welcome from the national youth theatre where they have been practicing hard for the. for the games and for the hundred welcome ceremonies they'll have to perform paralympic village and athletes can expect plenty of entertainment. we thought we'd take on what it means to be living today and it's a pretty thin age group the second and also remind ourselves of the first queen elizabeth over four hundred fifty years ago so it's a mixture of pageant. and celebration but some acrobatics. tennis star serena williams will be arriving for the games on a high after retaining her bank of the west classic title in california she was up

against fellow american and lucky loser coco from vague who had 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 promising to lose the opener seventy five however when. found another gear in the second set to take that six three for the match next stop for her is the lympics to return to wimbledon where she won the grand slam just over a week ago. the money is important keep the minima do the best they can every every term and i mean the next next day isn't guaranteed so you know i was just happy to do. elsewhere until it became the first home player to win the courageous open in twenty two years. six four six two in the final despite the defeat the spaniard breaks into which still breaks into the world's top twenty in the men's rankings as we chill if you will stay fifteen and certainly enjoy claiming his second title of the year after winning it queen's last month. it was

a really special this week of playing great tennis i was enjoying every moment and i'm. really glad that i wanted for the support of so work for my team and also for myself and yank a tips out of it had a good weekend to winning the mercedes cup in germany with a three set victory over argentina find monaco this the first place court title to tire of it has won on the a.t.p. tour he also picked up a nice car as a bonus much to now american golfers that johnson has enjoyed a confidence boosting victory ahead of this week's open championship madison in a playoff to win the john deere classic in illinois madison had led for the first three days but despite moments of brilliance like this he still found himself tied with johnson on twenty under at the end of the final round so he went to a playoff and on the second extra hole johnson got into trouble but he got out of it magnificently. rolling the ball right up to the pin.

and it meant madison then needed to sink his pot for birdie for victory. but he failed to do that. and that left the two thousand and seven masters champion with a tap in which he really sang care but he didn't melt the winter too long after a quick celebration johnson then headed to the airport to fly to england for the open which starts later this week. or so heading there is india's jeeves milkha singh he booked a spot at the major with victory at the scottish open after a play off against time for interesting molinari when also moves him back into the world's top one hundred and gave him a check for six hundred forty five thousand dollars. really going to honestly i never thought that i would go in for

a playoff. it all came back to me and i had an opportunity to go for a playoff very fortunate and i made a good point on the last. lever short like the left. came through with it and. i'm just excited and i'm very happy with the. police are investigating an act of sabotage at the tour de france sunday's stage porting was won by spaniard blue easily on sanchez and britain's bradley wiggins keeps the yellow jersey but thirty riders suffered punctures on the reach after tax and nails were thrown on to the road among those affected were defending champion delahunt and in an act of sportsmanship the peloton slowed down to wait for the striding to catch up rather bang sanchez was part of an earlier breakaway and claimed the stage when the green jersey needed p. to say again coming home in seconds but it's wiggins you still beat the general classification the team sky rider two minutes and five seconds ahead of fellow british interests free today today just a relatively flat one in some accounts of pole. going to. remark formula one star

lewis hamilton says he'd like to see the sport the night race on the streets of moscow the mclaren driver was in the russian capital this weekend to promote f one this 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 maybe iconic walls of all time moscow has staged his high octane extravaganza to boost interest in motor sport in the city russian the f one team fielded french youngsters shall speak and make a heaven and through the flag for the world rally championships russia will host its first f one race in sochi in twenty forty and how much he says potentially moscow could stage a singapore style night writes. when everyone asks me about. 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 a 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. formula one car the kremlin the world series took a brand new track took to a brand new track in the moscow region it was designed by world famous architect herman tilt and could also hold f one races in the future constantly to top off as the story. so a track in russia is 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 series and it became. where you

can see the formula one teams they have their. best one on the floor why this is so a lot so formula one drivers including semi stand vettel and fernando alonso 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 with all the new personnel as a business falls from the start but now i think they are getting better and better sort of thought to be on the top with a new team have a new team a new care everything is new there is a lot of good drivers sand. and another way of travis care as 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 sole edris to win on home to reform the opening day and dominated on the second capturing a 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 formula ran two point zero zero standings again to her. by her. work terry buck's importance and. there. are so. so we've reached the finish line of the first ever major morris boys can petition to happen in russia i mean it's been taken quite on the track that could most likely those f one races added to the fact that you've got one two races it's a bit although it historic we can bounce on your r g must go region.

elsewhere your great lorenzo has tightened his grip on the most h.e.p.a. standings the spanish rider cruising to victory at the italian grand prix to stretch his overall lead on the very first turn arounds are over to compare dani pedrosa who had started from pole and the man never looked back after that to beat the traffic into second resulting. by nineteen points at the top of the overall standings reigning champion casey stoner is eighteen points for the back strain had to settle for a lowly eight spot on the day after running off the track and home hero videos though complete at the podium. i knew. i was going to be very difficult because danielle saw that it would be nice but i try to hold a human the first. try but it will be more with. the new tires but it was and i know they keep. very close. now in the last couple of

minutes it's just been confirmed that fabio capello the x. england manager will take charge of man managing the russian national team coming through from the russian football union we'll have more on that in our next bulletin into our start. i'm glad. culture is that so much i'm going to each musician and find the mark legend and it's interrupted revolution intensifying standoff getting a democratically elected president against entrenched military is polarizing.

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