soon which brightened. some from phones to perdition. he starts on t.v. don't come. live from moscow our top stories russia's top diplomat slams us threats that moscow will pay the price for the syrian graft and accuses foreign powers of blackmail over you in action against them. a new wave of mass social unrest sweeping israel after a man sets himself on fire to protest the prime minister's policies he claims are dropping the people. and football's new man at the top x. england supreme ofat neil capello is confirmed as russia's head coach. next

drafting a plan for struggling countries and how to quit the euro as the leading british business chief tells archie 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 the least disruptive way for a country to exit the euro is a lot so ivan watson thanks for talking to us today now why did you decide to sponsor this prize i sponsor 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 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 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 said it had a path 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 that weekend in the existing country all assets dr bill are to use wages prices are converted into the new

currency in that country so you may have been earning thirty thousand or thirty thousand euros up all of us one day the next week you're earning thirty thousand new drachma. currency. 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 will be devalued but so will your mortgage and so with the price of the goods in the shops now what would happen is of course imports have 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 seats 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 shop devaluations weatherby great britain in one 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 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 call it's kind of old horse over time economies to converge and move people move between areas and over time that a a currency union forms almost naturally if you look at what happened between an era of. 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 what i think it was that the architects believe that if there was no line of retreat to tradition for it 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 our way 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 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 a part 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 that uncontested and the unemployment rates are unimaginably high levels between fifteen and twenty five percent of these bailouts plans do nothing to address unemployment since rana 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 escaped the state without at some point defaulting devaluing some of that debt and starting again and into greece and spain can be competitive in your. 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 well i think there be two reasons for us to follow the first will be capital flight that 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 weight 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 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 us 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 german. 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 bought 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 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 i was 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 about a sheet 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 your time in wilson thank you very much to pleasure. so for instance in saluja of. the roots of your cumin for example suited to

a. brisk ounces more than turned on just showed consumers to. do says bush. there's no nothing that you have to. in any of the demos the study gave us. there is a way that brings victory. to its creator. he's not alone some are more severe than others we have something that is born without skulls without organised and sometimes with their legs totally twisted blood means death to those who it's pointed out. and. i'm still those who choose this window. and the celebrates and they don't realize that stand looking at their own future can't so. this is just. so sides. i

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well done for the future of science technology innovation all the latest developments from around russia we've got the huge earth covered. in illinois.

top diplomat slams us that moscow will pay the price for the syrian army rather than accuse its foreign powers of blackmail over u.n. action against damascus. a new wave of mass social one rather israel after a man for himself prior to protest the prime minister's policies he claims are robbing the people. and footballs a new man at the top england. capello is confirmed as russia's head coach. more on that of course coming up next in sports.

you know there are all the ladies from the sporting world in the next eleven minutes so here and also you thanks for joining us coming up. to a place to look at the helm of the russian national football team in. charge down the plates arrived in london for the start of the fast approaching summer olympics. and serena williams to get ready for the games picking up another title just a week after winning wimbledon. and former england manager fabio capello is set to be appointed the new russian coach sixty six year old is expected to arrive in moscow to finalize his deal and if it comes through he will be reportedly taking home at least six million dollars a year the first charge would be and now over

a coast friendly next month with the world cup twenty fourteen qualifiers against northern ireland and israel due in september capello resigned. in february after four years in charge while his biggest success came on a club level with more than half a dozen national crowns to his name capello also got a similar to the champions league title almost two decades ago. athletes from russia and china are among hundreds of competitors arriving in london today ahead of the olympics over three hundred athletes are coming into heathrow airport along with over one thousand games family members the sailing team were among the first time early this morning volunteers are on hand to make sure transfers to the olympic village in east london are smooth and when they get the receipt from the national youth that. have been practicing heart for one hundred welcome ceremonies they'll have to do and paralympic village

athletes can expect plenty of entertainment. we thought we'd take on what it means to be living today is a pretty thin age the second and also remind us of the first queen elizabeth over four hundred fifty years ago so it's a mixture of pageant. and celebration and 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 and she was up against fellow american and lucky little under their qualified after another player had pulled out so it was incredible she hadn't made the final toll but she was overawed and at this point in the open a before losing it seventy five percent continued to press in the second to take a six three and the match to a three minute forty third parade title next. lympics and return to wimbledon where

she won the grandstand earlier this month. for me it's important keep the minima do the best i can every every term and i mean the next next day isn't guaranteed you know i would have. became the first player to win the creation open in twenty two years he defeated six four six two in the final in a mug despite the defeat this breaks into the world's top twenty in men's rankings as for today state fifteenth certainly enjoyed the second title of the year after winning at queen's club last month. it was really special this week great tennis and i was enjoying every moment and. really glad that i wanted for the supporters and for my team and also for myself. and. had

a good weekend to winning the cup in germany with the three sets victory over one man out of argentina this is the first place called title to which is one h.p. to picked up a nice car as a bonus. in the meantime arguably arguably the best tennis player of all time roger federer has broken yet another record this week's smart holding the world number one spot for an unprecedented two hundred eighty seven weeks and counting this is one more of the previous mark said by american pete sampras thirty year old federer returned to the top of the a.t.p. rankings after sealing record tying seventh wimbledon title earlier this month i was also. the favorite to play a major singles gold some of them but i mean up again now where the stars of world motor sport descended on more school days where kent formula one and valid drivers visited the russian capital for one of the biggest sports events of

the year with mclaren to hamilton taken center stage charles looks back at the action. i would formula one grand prix russia now just two years away this is one of its dress rehearsals his moscow city racing one of the highlights of the motor sport year here this year it's celebrated its five year anniversary and f one fans got the charts over the weekend to see some of their heroes up close and personal i'm very happy about that this is part of the people. and yes. yes i mean. they have about this possible city race they support us to get the most for the sunshine everything's nicer than good for for the show off today this year's race showcase not only the talents of ferrari's junk all of these you can know but also lots of lewis hamilton for the former world

champion it was his debut on the streets of moscow and even suggested if one should return to race here in the future when everyone asks me about race circuits you know in london or 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 and besides that f one display thousands of muscovites and guests got to see the high octane action trucks and bikes leaving their imprints on moscow's pavement.

mico here and he is currently in second place in may she is world rally championship he took time out meet season she misses a great. when there's no stress here you know i don't really need to care if i make a small mistake or some one second always my driving is not perfect so it's just for fun and so it's really. you know i can really enjoy this weather and i really do enjoy this is like this well. if one crew. spic secular schools. only the picture heads but those that could hear the sounds from miles away. i want the day they would have been arrested going up to three hundred kilometers an hour in central moscow. with no limits in sight and thousands of satisfied fans this truly is

a day of celebration nick a large show. shook the kremlin walls the world series to brand new track in the moscow region it was designed by world famous architect and could also help form in the future because they put up of has more. the moscow raceway is the first track in russia that can 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. it became. can see the formula one teams there. is one of the four why this is the same way lots of formula one drivers including seven vettel and fernando alonso hone their skills in the cirrus it's now become more familiar to the country thanks to russian team

our air force which boasts two homegrown racers twenty ten champion. and i don't you believe 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 first british foals on the start but now i think we're getting better and better the first thought to be on the pole for you to have a new team and you care everything is new there is a good driver sand. and another way of travis care as well so we need to work all together it was then we'll go 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 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. work terry fox importance and. they're going in the same. so. for tricks so we've reached the finish line of the first of a major sports competition to happen in russia and it's been on a track that could most likely those one races to the fact that one two races. and historic weekend. party must go region. well it's all the sports news for the moment more into.

wealthy british style it's a time to let. the. market. find out what's really happening to the global economy cause a report. to the. mayor and more mouths to feed but where will the food come from science provide the answers the future of food under the microscope. we've got the future.

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