here with the live from moscow our top story and russia's top diplomat slammed us that moscow will pay the price for syrian wrath and accuses foreign powers of blackmail over u.n. action against a math test. a new wave of mass social unrest sweeping israel after a man sets himself on fire to protest prime minister policies he claimed are dropping the people. and football's new man at the top x. england supreme. it's confirmed as russia's coach. max drafting

a plan for struggling contraries and how to quit the euro as the leading british businessman 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 was once 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 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 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 liabilities 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 new drachma. that currency is 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 would 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 slip 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 use 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 cars 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. great britain over the last thirty years the two currencies almost came to paris

without anyone planning it. but to force them to run over 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 i think that the architects believe that if there was no line of retreat to the troops from fright that much harder. this was a classic case of the 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 it more specifically 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 and 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 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 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 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 the state track without at some point defaulting

devaluing some of that debt and starting again until greece and spain can become. had to live in new fashion market 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 there 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 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 of 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. 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 that's going to be a hit for the british banks and that gap will need to be plugged whether it be through a different 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 or. i mean germany's here is it's 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 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 about just waiting to get our money back that essentially what i think in the question is is that money ever going to be repaid. and i was as i think was mentioned earlier on this is as much a political product 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 few to 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 notes i'm going wilson thank you very much the pleasure. so francis in saluja of. the roots of new cumin for example suited to a. brisk ounces more than turns on chose councils

fourteen times. as bush. is not nothing. that you have ever found in any of the demotion studies give us ever 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 organs and sometimes with their legs totally to mr black means death to those who it's pointed out. man. owns to those who choose this window. and that celebrates it and they don't realize that stand looking at their own future can't so. this is just. so sides.

i have. leakage and i'll show you so the extent how much i have leakage. wealthy british style decide it's time to explain. the. market why not come to. find out what's really happening to the global economy with mike stronger

for a no holds barred look at the global financial headlines tonight. in two cars a report on r g. p is easy to. download the official location to go on the phone all i pod touch from the stops to . launch life on the go. video. ati's minefield costs and says feeds now in the palm of your.

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ross has top diplomat slams the us through ads moscow will pay the price for syrian on rats and accuses foreign powers of blackmail over un action against enough gets . a new wave of mass social on grassley from israel after a man sets himself on fire to protest the prime minister's policies that he claims are robbing the people. and football's new man at the top x. england supreme old fabulous capello is confirmed as russia's head coach. more on that now would you need three in the latest sport.

but of the all the ladies from the sporting world in the next eleven minutes also thanks for joining us this hour coming up in the program. so a pile of former england boss fabio capello is set to replace dick of a car at the helm of the russian national football team. down late arriving in london for the start of the fast approaching summer olympics. and fighting talk boxing champion vitaly klitschko to pick out the challenger mon-el charge during their title fight in moscow. for the first and former england manager fabio capello is set to be appointed the new rush coach the 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 match in charge would be an average coast friendly next month with

world cup twenty fourteen qualifiers against not and israel due in september capello resigned as england boss in february after four years in charge while his biggest success came when a problem with more than half a dozen national crowns to his name capello also guided a similar to the champions league title almost two decades ago. now flights from russia the u.s. and china are among hundreds of predators arriving in london today ahead of the olympics over three hundred athletes coming into heathrow airport along with over one thousand games family a sailing team were among the first to touch down early this morning. and to make sure transfers to the olympic village in east london are smooth and when they get there will receive a warm welcome from the national youth theatre they have been practicing heart for

the one hundred welcome ceremonies have to do with the olympic 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 song and dance acrobatics. the mail in big stadium in london is one hundred percent ready to host all the events to in the games seeing clothing the opening and closing ceremonies but it's after the olympics and paralympics is still unclear the venue called the bell is able to see eighty thousand spectators at london legacy development corporation tasked with finding a future only for the venue or aiming for a decision by next october what is known is that they said you will host the twenty

seventeen world a flat tax championships. it seems quite likely today that the stadium will remain as an eighty thousand seat stadium probably with multiple uses. obviously used for thirty six but also useful football and probably concerts as well. now boxing champ or metallic luge course says his vast experience could give him the edge in his next title defense against man no charge but to have weights will square off in moscow in september but they didn't come face to face at a press conference to promote a w.b.c. bout has a syrian born german blamed things are problems for his absence char is twenty seven now and unbeaten in twenty one bouts will turn forty one on thursday and could retire to become a politician for the ukrainian based ethanol record of four to knock out wins and just to defeat in forty six fights and he says charge should take care of his teeth

when they come to blows with char compared me with a piece of meat and said he's a young lion that has been let out of the cage but he must have forgotten monique i'm feast and my fish can meet his teeth and he can lose some of them so he should pay attention to me. in the meantime one of the best tennis players of all time roger federer has broken yet another record the swiss must haue during the world number one support for an unprecedented two hundred eighty seven weeks and counting this is one more than the previous mark set by american sampras that are all federal returned to the top of the rankings after sailing record tying seventh when with a title earlier this month and has also a state favorite to claim his maiden singles gold at the london olympics i moving up again now where the stars of four descended on

moscow this weekend formula one and while the drivers face to the russian capital for one of the biggest sports events of the with mcclaren says hamilton taking center stage nicolette chiles looks back at action. with formula one grand prix rusher now just two years away this is one of its dress rehearsals his moscow city racing one of the highlights of the motor sport. this year it's celebrated its five year anniversary and f one fans took the chance over the weekend to see some of the heroes up close and personal i'm very happy about that this is part of the people. does yes and yes i mean the they have about this possible city race they support us to get the most. sunshine everything's nice. and good for the show all day this year's race showcase not only the talents of

ferrari's junk followed as you came up but also going to release hamilton for the former world champion it was his debut on the streets of nashville and even suggested if one should return to race here in the future when everyone asks me about race circuits you know and i. must go 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 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 pavements.

mico here when it's currently in second place in the world where the championship he took time out to meet season she misses a great opportunity to share his. stress here you know i don't really need to be here if i make a small mistake voice 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 the world really truly gauge if one crew their money spic secular jew teams fuel not only the pitching heads but those that could hear the sounds from miles away i would think they would have been. going up to three hundred kilometers an hour.

and. a celebration. shook the kremlin walls. to brand new track. it was designed by what. and could also help form in the future as a put up of has more. the moscow raceway is the first i would track in russia that can host all kinds of more sporting events including formula one but it was world series by rana 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 event and it became a hit. where you can see the formula one teams they have their. number one on the floor why there's always so a lot so formula one drivers including semi-skimmed 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 anton who 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 first british goals from the start but now i think we're getting better and better for the thought of being 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 drive this car is 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 would drop 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 only

the right 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 a two point zero zero standings again very well by her. work terry buck's importance and. they're going in the chairmanship. so. for tricks so we've reached the finish line of the first of a major morris boys can petition to happen in russia. on the track that could most likely those f one races added to the fact that one two races. at historic weekend. moscow region. well that's all the sponsors for the moment. say weather is next.

wealthy british style it's time to let go. of the. market why not. find out what's really happening to the global economy because a report on our culture is the same or different and there's a huge music is a minute in the market and it's interrupted revolution intensifying standoff getting a democratically elected president against entrenched military has polarized.

that. would be soon which brought.