innovation all the moves developments around russia we've got those huge earth covered. thanks for joining our team parents with your top stories series armed rebels are on the defensive in the commercial capital aleppo but helps all no way as they're promised a fresh multimillion dollar support from britain says the new lands reportedly ready to replace coffee and on the syria envoy with another veteran diplomat in. all this while the u.s. senate's allies seek new ways to pressure damascus outside the framework of the u.n. ellerey plan is in turkey for tongues as both countries seek out more loopholes to support the armed rebels in syria. a major israeli newspaper says television could

strike iran as soon as november 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 unilaterally. up next to inside into how to keep the euro zone countries a flow by sending them their separate ways. today i'm at capital economics talking to roger bootle he's the head of the winning team in the wolfson price which is the competition to find the least disruptive way for a country to exit the euro logical thanks very much for talking to us now this wealth in prize the competition why was it important to you to put together such a strong and treaty i was fascinated by the question that lord will some posed and

as i thought about it i quickly became aware that no one of the really satisfied to really think attempted to answer is no 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 assume 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 to the people of the departing countries 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 most and we suggest that the

conversion rate between euro's and direct most 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 one of the perhaps even two to one against the euro and then the banks open again on the. choose the 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's and 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 debit 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. greece carries on using euro's until new track when those are available but you raise the exchange rate at the new one on one parity with where 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 drachma. now as far as domestic greek residents and. not that i have any comeback on that but the change is going to stand in on the greek lore in greek courts but the going to be all sorts of contracts involving non greek citizens where there's going to be a lot of legal bargee because let's say a german credit for the sake of argument is not going to want his has said converted into drachma and he's going to argue that this 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 drachma and so they're going to be arguments the courts could be heavily

involved but the scope for that could also be reduced if euro zone governments reach an agreement on all this which i think they probably would then have to lay down guidelines under which. a contract would be interpreted and which occasions it could be in euro's and that would minimize the scope for legal argument the other major issue is sort of the 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 then completely transformed because in a flash greece is more competitive not the grinding deflation they would tell fifteen years but instant pain is li 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 and 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 it's 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 bring. takes years decades direct result of a credit crisis greece is going through and what's more it raises the real value of debt to greece and the weaken members of the euro face not one key problem but to

their own competitive cost some 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 the 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 countries not only greece but possibly other countries then leaving the euro off to that your file seem to fear the breakup of the year is they not some kind of ahmed getting do you think that's where listed 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 conses countries will leave as well where they end up probably with the peripheral countries possibly all five of them say portugal italy greece and spain or outside

the euro possibly even joined by problems with some northern core remaining so in terms of thinking what might happen i think these people are absolutely right with regard to the consequence is though i think they're completely wrong in the sense that you have to ask yourself from the leaders of europe after all stem cells how can you imagine prosperity and stability for europe under the current setup was. is the mechanism through which countries of the moment malard in not just a recession but frankly a depression through which those countries can regain prosperity economic growth and stability i wish they could tell us something along because all i hear whenever they have a summit is the key banking all 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 set up by contrast at the euro breaks i can imagine economic growth

so far from being a disaster i think it could be the major step that leads to the restoration of growth in europe and was 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 continue 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 output of 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 muckle for example if they're 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 their 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 the 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 that 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 are notoriously short sighted and the argument against the euro has always been that essentially it will collapse through the weight of its own contradictions as to when people turn on able to world 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 feels we could come true leave the eurozone arguably the euro's going to be a strong currency so very far from selling it 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 or are we looking at a return to tell the gentleman nation for example oh i think that. 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 holland greece and. bye. bye perhaps even problems than the euro is as it were great to doj markets germany and its close satellites and it's going to be raw but current what currency area very much as he will be the way that germany used to be run under the doj mark accordingly i think investors will like the currency really very much thank you very much.

wealthy british style sun. sometimes that's right. 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 tune into kaiser report on our. mission free accreditation free. for charges free arrangement free. three stooges free. old free broadcast quality video for your media

projects free medio dog r.t. dot com. serious song troubles are on the defensive in the commercial capital on that show but help is on the way there promise fresh multimillion dollar support from britain this says we'll answer importantly ready to read a place called cannot syria on the way with another veteran diplomat. that's probably was on its allies seek new ways to pressure damascus outside the framework of the new land hillary clinton is in turkey for toms as both countries seek out more of them on the support to the armed troubles in syria. a major israeli newspaper says television could strike iran as soon as november after failing to take the last that sanctions and diplomacy are not working washington says all options are on the table including for us that has warned israel not

attacked you know laterally. dimitris here with sport. hello they're welcome to the school to not to go through the company again base our coming up in the program. first success in the wrestling russia. tops the podium in the fifty five kilo category. respect the gold world championships on the list sankoh wins the common for a final with on a limb big record. that women's short relay team usa win with a new world record for two point eight two seconds. so there were three more gold medals for russia on day fourteen in london this

synchronized swimmers and wrestlers are proving they're the best in the world while the general is saying that another big record to win the women's hammer with the round up has under pharma. for over a decade russia have dominated synchronised swimming and they are enjoying another clean sweep of titles at the olympics they got in fact it 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 the fourth olympics in a row in which russia's girls have picked up both goals. were 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 salton of becoming their latest olympic champion defeating george is a gash feely two rounds to nil in freestyle fifty five kilogram category while denny'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 the concept his only hope for gold remaining he's 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. who in the world and the bilge area three sets to one and will face top seats 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 limpid 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 andrew farmer far to london. been big news to me i say has won the women's four by one hundred metres in style with a new world record quartet of china medicine allyson felix down tonight and coming

to forty point eight two seconds to complete the distance there shattered the previous world best four to one point seven which germany for twenty seven years jamaicans ran a national record of four two one point four one winning silver while team trained to the bronze remember reigning olympic champions russia failed to qualify for the five. in the men's four by four hundred meters relay race gold was on it was expected for you to state that favorites managed to lose out the last stage team of chris brown which is pinned michael my future and roman miller from that winning time of two minutes fifty six point seven two seconds to say finish second to claim silver into bargo completed. now the modern pentathlon celebrates one hundred years at the olympics with russia eyeing medals both in men's and women's competitions parties are over to other now and caught up

with the president of the european pentathlon federation and the two thousand olympic gold winner maybe so. with a more than contestant advance at the london twelve summer olympics getting underway on saturday we're joined by the two thousand olympic champion rushes me to 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 was becoming tougher to bit simply tougher to bit. the last twelve years of the title change so much and. two. major issues was change of doing can last last years the first was the eevee united. running and shooting in right now calling combine event its last event a result of all day and it will be the final final step four before medals and the second one the worse

a loss of the soul it will be very interesting and of course the for last two years the. the use these formats is very interesting for t.v. for spectators for anybody and because we have absolutely always on expected result. yes for russia's chances we get those number one the soon and two time olympic champion under him we see if sounds very impressive. yes of course for the last. few olympics to be bigger of course the expecting some medals here and because good great. athletes 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 the 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 he's a very experienced their foot while. he's making his olympic debut do think he's go

it takes to handle that psychological pressure on him. that of course and some pressure before lympics because he is a young people youngest at least usually of course in the morn there was before lympics them the other. vehicle in the. union of experience in the young as for the women. and you could sit in the rest can i want to think about their chances. the chances for some and also. our opinion of. bronze medal very very. close to to get if he feels some 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 wrong bronze yes but that's

a podium but. expect it's a competition of course that it will be anything what you want thank you dmitry thank you so much thank you. is the man who's already been there and done that and his prediction for russia sounds very good keeping my fingers crossed robert r.t. london. now for bill and alex a honor for school bands here as they held onto into one in the crescent of darby in the russian premier league russia coach fabio capello watched the gritty montefiore movie out the stands and then patris cruz home side to the lead after forty eight minutes thanks an hour goal by alexander and associated with nine minutes to go at it through once second making all the right moves in the area of the international year of ceasar and pull one goal back though with the hosts out

firmly to their victory to go seventh the table six points that place behind their profits. that russian international under twenty thresh canada's youth team six three to tie the exhibition serious at one all after losing the opening game free to the home side we're back with vengeance so doctoring it's a thousand years level as local boys group are pushed in sent defense into a frenzy by striking three times to lead russia to the sweet six three victory that tournament next moves to candidate for two more matches when the folks next week the world's top two youth teams play each other member famous summit series how between the u.s.s.r. and canada forty years ago russia led by fast rising forward daily coupal and top player of the seasons and drop says he's happy about his captaincy. going through an impression oh it's just it's who persist for me being captain it was my dream

and just want to help my team win every game and. just be who you are in play hard for her. father goal of tiger woods has three way share of the lead at the halfway stage of the p.g.a. championship in south carolina four time for my chum burn birdie for opening files but bogey on the eighteenth did not take it so this is the first sports american could only manage one under par seventy one in the windy conditions was the only golfer to break seventy the big finish point three under sixty nine to hold into that tie at the top overnight lead to carl sun carded two over to just hang on to his position england poulter as a shot behind the trailer with rory mcilroy and jamie and i stroke that back. well so for me for today for more sports news from the around the globe in four hours

time here in r.t. good bye. russia would be soo much brighter if you. come from france to. start on t.v. dot com.