hello and welcome to our teens have asked the hour here in moscow these are their lives the ones reportedly found the successor to kofi anonymous peace envoy to syria where armed rebels all on the defensive and. veteran u.n. diplomat off thought about i mean good step announced the new mediator next week. this while the u. was on its allies seek new ways to pressure the amount spent outside the framework of international law ellerey clinton will hold talks in turkey as both countries seek out more of the poles to funnel support to the rebels in syria. a major israeli newspaper says tell of the good strike you're wrong soon as you know after

failing to convince the u.s. that sanctions and diplomacy are not working washington says all options are on the table including force but has warned israel not to act unilaterally. up next inside into how to keep euro zone countries afloat by sundering them their separate ways. today i'm a capital economics talking to roger bootle who's the head of the winning team in the wolfson prize which is the competition to find the least disruptive way for a country to exit the euro thanks very much for talking to us now this will surprise the competition why was it important to you to put together such a strong and tree i was frustrated by the question but law. and as i thought about it quickly became aware that no one of the released. this fact

really even i think attempted to and i thought we could learn a lot as well as contributing quite a lot in trying to answer it and that's what we did and talk me through your winning entry very briefly country wanting to leave the euro must prepare a plan in secret among a very small group of senior ministers and officials pretty much as soon as the plan is agreed it must be enacted in order to prevent news leaking out the banks will have to be closed over a relevant period which is probably a week and during that period capital controls will be in place almost say the friday night it will be announced of the people of the departing country let's call it greece that from then on all the amounts that were in their bank accounts their pensions or whatever their wages prices which were formally expressed in euro's were now to be expressed in. and we suggest that the conversion rate between euro's

and direct must be one for one now a lot of people get this mixed up they think well in that case what about the exchange rate on the exchanges there's no connection between the official conversion rate and what the drachma trades as and we're pretty sure it would trade at a much lower rate probably around perhaps even two to one against the euro and then the banks open again on the monday or tuesday people put in their cards and a.t.m. so they can get euro's out of their bank accounts which are now expressed in drachma thing only get those out at the exchange rate the rules now between euro zone the drachma because now the euro is treated as a foreign currency and this really they're not going to have some coins available i think a lot of people have got fixated on that we argue it doesn't really matter for the overwhelming majority of transactions particularly business transactions they're done electronically anyway and people use cards dead. cards and credit cards they

continue to do all that only when they use them it's that they're actually transacting for small transactions that require cash then gesture as greece carries on using euro's until new track when notes are available but you're right the exchange rate at the new one on one parity with the with the drachma well what will tend to happen is that a price system will develop because people will know that. the same as euros although they've been converted to one to one rate they'll tend to be a different price for euro cash as compared to. credit or direct debit cards that will be to some extent messy but it will be perfectly practical there are a lot of countries in the world to do currency into pricing system and this all sounds very simple in times of in terms of real people using real money are there other complications that kind of macroeconomic level well there are huge complications

and problems on one of the biggest is going to concern the legal position because what would happen at the point of the greece leaves the euro is it would read to nominate its debt its national debt into the drachma. now as far as domestic greek residents and they're not going to have any come back home that's the change is going to stand in on the greek lore and greek courts but are going to be all sorts of contracts involving non greek citizens where there's going to be a lot of legal argy bargy because let's say a german credit for the sake of argument is not going to want his asset converted into drachma and he's going to argue that the contract was framed in euro's it should still be in euro's and in greece they're going to say oh it's now in. and so they're going to be arguments the courts could be heavily involved but the scope for that could also be reduced if you as a. governments reach an agreement on all this which i think they probably would

they then have to lay down guidelines under which. a contract would be interpreted and which would be in euro's and that would minimize the scope for legal argument the other major issue is not just complication it's a reality is that initially this is going to be very far from a magic wand when the drachma falls on the exchanges the price of goods and services in greece is going to go up possibly by quite a lot so initially living standards are going to be squeezed far from bringing relief to the order a great person it's actually going to make matters worse initially however going forward things are in completely transformed because in a flash greece is more competitive not grinding deflation they would tell fifteen years but instantaneously greece is forty or fifty or sixty percent more competitive than the demand for greek output is going to take off that doesn't

happen overnight but in a matter of months that will happen greek exports will start to rise create imports will fall and that will generate employment more income in greece so there's a trade off a difficult period to go through first of all in order to secure later greater prosperity so if you compare that situation to the austerity that the greeks are now facing which would you say is a better plan i think there's no doubt that greece in my view needs to get out of the euro i cannot see any way in which this current policy of austerity is going to bring any relief or solve the grinding process of trying to. take years decades correct sort of a credit crisis greece is going through and what's more it raises the real value of debt to greece and the other we can members of the euro face not one key problem but to their own competitive costs and prices are out of line with other countries in the euro. and they're also saddled with very high levels of debt the problem

with domestic deflation is in principle but they very badly but in principle it deals with one of these problems namely the lack of competitiveness but at the cost of making the other problem debt even worse and what we're talking about is is countries not any greece but possibly other countries then leaving the euro off to that europe file seem to fear the breakup of the year is a not some kind of armageddon do you think that's where lifting fair well i think they're right to fear the breakup of the euro zone because. if greece for instance were to leave obviously we don't know how it would all work out suppose it's possible that the rest of the euro would then together but i doubt it i think if greece leaves before very long as conses countries will leave as well where they end up probably with the peripheral countries possibly all five of them say portugal italy ireland greece and spain or outside the euro possibly even joined by france with some northern core remaining so in terms of thinking what might happen

i think these people are absolutely right with regard to the consequences though i think they're completely wrong in the sense that you have to ask yourself from the leaders of europe have to ask themselves how can you imagine prosperity and stability for europe under the current setup what is the mechanism through which countries of the moment in not just a recession but frankly a depression through which those countries can wreak prosperity economic growth and stability i wish they could tell us something along because all i whenever they have a summit is they keep banging on about various forms of debt support and never about economic growth now i do think it's possible to imagine return to economic growth in the current setup by contrast if the euro breaks i can imagine economic growth so far from being a disaster i think it could be the major step the. leads to the restoration of

growth in europe and boss about these attempts to shore up the very same that we've seen recently another bailout for greece cheap money flooding international banks from the e.c.b. they going to have any effect well i suppose it's possible to keep the whole show on the road that way if the northern countries are prepared to carry on shoveling this money into the southern countries although i frankly i think that there will come a limited because eventually the sums involved are going to be absolutely enormous and voters in the northern countries will say we don't want all this but even if the continued traveling of money does take place which keeps the show on the road again that doesn't actually bring economic growth in the self all it's doing is preventing a financial collapse whereas these are countries that have undergone a very big drop in the help put in have got huge levels of unemployment and is what we're seeing just purely a kind of fight between politics and economics is the reason that i'm going to

market for example is so desperate to keep the year is they together because it's the major political project that germany has implemented over the last thirty years or say i think the politics of the economics are really very closely intertwined and it's often difficult to work out where one stops and the other begins. i think you have to appreciate the european elites didn't have a pretty firm grasp of the economics from the start now i think they're getting the economics completely wrong that's to say the opposition to the idea of their fear of the idea of euro break up isn't just about the politics they think that the economics point very strongly that way as well because they fear the financial chaos that would stem from a euro breakup and they don't see the benefits to economic growth so i think they are opposed on both economic and political grounds and we talk a lot about about the collapse of the year essentially but all through this the currency has been oddly resilient hasn't it. only really winding down now from

quite a decent race against the dollar what do you put that down to i think this is a really big puzzle quite why the euro has been so strong there are reasons that one can put forward or are not completely convinced by any of them but one thing the thing to bear in mind is foreign exchange markets in the tourist shortsighted the argument against the euro has always been that essentially it will collapse through the weight of its own contradictions as to when people trade on able to say well exchange markets tend not to like to bet on things like that you know something maybe next year maybe next month maybe in five years time it's not a really very solid thing to go on then there's also the question of what form the euro might take if it survives because it will we could countries leave the eurozone arguably the euro's going to be a strong currency so very far from selling if you thought that sort of breakup was going to happen you ought to be buying it if the euro does become a current seed that applies to many fewer countries will it still retain its

attractiveness for investing we're looking at a return to dollar gentleman nation for example oh i think that the euro could continue to be a very attractive currency indeed for many people it might be even more attractive if you could imagine what's going to happen is the departure of the weaker peripheral countries portugal italy hard and greece and spain perhaps even problems that the euro is as it were a greater dortch markets germany and it's close satellites and it's going to be. a currency area very much presumably the way the germany used to be run under the doors mark and accordingly i think investors will like the currency really very much roger bootle thank you very much.

wealthy british style. it was. 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 into cars a report on our. world with the. technology innovation all the latest developments from around russia we've got the future covered. the world the truth leads technology innovation all the latest developments from around

russia we've got the future covered. for you was reportedly found the successor to kofi annan and son point to syria where armed rebels are all the front seven the commercial capital of veteran a u.n. diplomat brahimi but stabenow has been a new mediator next week. while the u.s. and its allies seek new ways to pressure damascus outside the framework of the new black telerate clinton is in turkey for talks as both countries seek out your calls on all supported me on syria. a major israeli newspaper says taliban could strike iran as soon as november after failing to convince the us that sanctions and diplomacy are not working and washington says all options along the table polluting force but has more to israel not to act unilaterally. on the

weekend sports now it dimitri. hello to all the ladies from the games right now and i will not teaching children how to be solid. success in the mainstream wrestling russia. tops the podium in the fifty five below category. expect a gold ball champ an example sank the wings on the gross with an olympic record. and the women's short relay team usa win with a new world record before two point eight two seconds. so there were three more gold medals for russia on day fourteen in london the synchronized swimmers and wrestlers again proving they're the best in the world who

want to turn the sanka set on him pick to win the women's with the round up. for over a decade russia have dominated synchronised swimming and they are enjoying another clean sweep of titles at the olympics they got an emphatic victory in the team event to add to their victory earlier in the week a real triumph this for russia who impressed judges with the complexity of their moves they got more marks than anyone else in both the technical and free routine i'm finished with a whopping hundred ninety seven points out of a possible two hundred three points ahead of nearest rival china and four ahead of spain this is the fourth olympics in a row in which russia's girls have picked up both golds the look. rather nervous but i think the prime difference between ourselves in china tells the story need to know who are the better team and of course we are delighted. meanwhile up at the olympic stadium there was

a gold in the women's hammer for tatiana list saying she led from the start breaking the olympic record by over a meeting with the very first row of seventy seven point five six and then broke it again with a fifth row of seventy eight point one eight this russia's fourth gold in athletics in london and four is the magic number because that is the number of gold rushes wrestlers have now got author sort of becoming their latest olympic champion defeating george gosh feeley two rounds to nil in freestylers fifty five kilogram category while danny's to got bronze in the seventy four kilogram division and there could be more gongs on the way with six more goals to be contested over the next two days meanwhile in boxing. i only hope for gold remaining through to the final of the light heavyweight division and he's guaranteed at least a silver but three of his teammates have had to settle for bronze flyweight world champion yan lost in his semifinal as did light flyweight david and welterweight

mcavoy however russia's men are guaranteed at least a silver in the volleyball they are ranked number two. to win the world and be bold garia three sets to one and will face top seeds brazil in the final however the best the men's basketball team will get is bronze unfortunately they lost to spain in the semifinals fifty nine points to sixty seven russia when i play argentina for third place spain will take on the usa for the limpy crown so russia's flow of gold continues at a steady pace but unfortunately if it carries on at this rate it will probably only be good enough for a fourth place finish overall in the medals table with two days remaining country farmer far to london. in other olympic news team usa has won the women's four by one hundred meters in style with a new world record the quartet of medicine addison feliks there tonight and come in

as a judge. for two point eight two seconds to complete the distance to the previous world's best of four two one point three seven germany held for twenty seven years the jamaicans run and national record of forty one point four one winning silver while team ukraine took the bronze remember reigning olympic champions russia failed to qualify for the final. thanks in the men's four wife four hundred metres relay race gold was it's back to the states but the favorites managed to lose the last stage of chris brown demetrius and michael my feet and remember that from the. time of two minutes to six point seven two seconds you say finished second to glance over to inductance about the go to the. now the modern pentathlon celebrates one hundred years at the olympics with russia eyeing medals both in the men's and women's competitions artie's roberts father now caught up with the president of the

european pen toughen federation and the two thousand a limp a gold committee so of course. with more than contests and events at the london twelve summer olympics getting underway on saturday we're joined by the two thousand olympic champion russia's meter is what go ski three things with him first of all do you think the sport has changed dramatically over the last twelve years and become more competitive with death is becoming tougher to bit simply tougher to bit. the last twelve years of the double change so much and two. major issues was change of doing can last last years the first was the u.v. united. running and shooting in right now calling. its last event a result of old age and it will be the final final step for the four medals and. the laws of peace so it will be very interesting and of

course to the for last two years the. the use these for is very interesting for t.v. force because daters for anybody and because you have absolutely always unexpected result last event yes for russia's chances we get those number one is soon and two time olympic champion and dame we see if sounds very impressive. yes of course for the last. few olympics we got some medals of course to be expected some medals here and because good great athletic at least like you and they may save two time olympic champion the up you're absolutely right and alexander was so on there's a young generation who is there will be next. olympic period by two thousand and sixteen two thousand and twenty and of course we expect good results expect just medals began during we see if is a very experienced effort yet well listen he's making his olympic deb you do think

he's go it takes to handle that psychological pressure on him for alexander of course and some pressure before lympics because he's a young people youngest at least usually of course in the more narrowest before lympics there are the other which are on strike on the day the vehicle in the. union of experience in the young as for the women savant we've got to have the kid . and you can sit in the rest and i want to think about their chances. the chances for some and also. our video will be. bronze medal very very. close to to get if even goals will be good fans and right so it turns out that we can hope for gold medal in the mountains and maybe probably bronze medal in the women's. yes but that's a podium but. expect it's

a combination of course that it will be anything what you want thank you dmitry thank you so much think of me that is the man who's already been there and done that and his prediction for russia sounds very good keeping my fingers crossed robert for the r.t. london. now football and force could dance here or there how do want to win two one in the cross and darby integrating counted them for trespassing homesite took the lead after thirty eight minutes think sterno goal by alexander and the source really and with nine minutes to go on a credit to one second he removed his son paul goldberger house to go seventh in the table six points behind their. village and to repel their has urged brazil to bring home their first ever olympic football go as you see an

honorary degree from the university of edinburgh widely regarded as the best player of all time the seventy one year old striker lifted free of brazil's record five while crops lympics have only so far managed to save us and to two bronze medals is sure that name and company can break this dark when they play mexico at wembley on saturday. but that's. the only member of the loops that. come back to brazil. and they take the opportunity that i want to see in brazil. so i can find their way the russian national under twenty's thresh canada's youth team six three to tie the exhibition series at one zero to nosing the opening game to three side we're back with a vengeance that sold out serena two thousand love it was

a local boy killed couple since sent the fans into transit by striking freak times russia to the sweet six three victory that told meant next move to canada for two more matches on fox next week well it's talk to you teams play each other to remember the famous summit series between the u.s.s.r. and canada forty years ago russia led by foss rising forward tonight you koopa and the top player of the season and a child dropped says he's happy about his captaincy. i don't feel any pressure no it's just it's two percent for me being captain it was my dream and just wild my chin when every game and. just be a leader and play hard work hard and. ok to date see in four hours time have not see with more sports news the weather is next stay with us.

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