live on your television screens and on your computer screens this is our to have you with us. and i see reception riot police clash with anti-war activists. furious over hillary clinton's visit who pledged millions of dollars to the syrian rebels stepping up plans for a post assad future washington and turkey are considering various measures to assist the opposition including a no fly zone as a conflict. plus a bribe for desertion reportedly offers the syrian ambassador tomorrow one million dollars political asylum if he defects and voices his support of the rebels the diplomat is thought to have rejected the offer calling it a blatant interference in syria's affairs. and the u.s.

says that it has visibility into iran's nuclear program and is confident it will know if tehran moves towards building an atomic bomb but a leading israeli newspaper claims tell of even could a launch an imminent strike on iran even before the presidential elections in the united states. up next insight into how to keep the eurozone countries afloat 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 wealth and 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 entry i was fascinated by the question that laudable some posed and as

i thought about it i quickly became aware that no one of the really satisfactorily people i think attempted to survive 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 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 we're pretty sure it would trade at a much lower rate probably around while perhaps even two to one against the euro and then the banks open again on the money. choose the people putting their cards into the 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 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 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 notes are available but you raise 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 that operate 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. and now as far as domestic greek residents and. we're not going to have an income by that change is going to stand in on the greek lore and greek courts but we're 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 ass 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 your rose 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 then completely transformed because in a flash greece is more competitive not grinding deflation they were ten or fifteen years but instant pain is lee 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 greek 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 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 sort of a credit to 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 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 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 countries not only greece but possibly other countries that leaving the euro off to that europe 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 and will 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 why. is the mechanism through which countries are 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 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 that leads to the restoration of growth in europe and what 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 and 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 a 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 that 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 if 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 dollar 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 that the euro is as it were great to doj markets germany and it's close satellites and it's going to be raw but currency area very much as he will be the way the germany used to be run to the doj mark accordingly i think investors will like the currency really very much thank you very much.

wealthy british style. that's not right. market why not come to. find out what's really happening to the global economy with mike stronger or a no holds barred look at the global financial headlines tune in to kaiser report on our you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

and i see reception riot police clash with anti-war activists in east on bold furious over hillary clinton's visit to pledge that millions of dollars to the syrian rebels stepping up plans for a post assad future washington and turkey are considering various measures to assist the opposition including a no fly zone as the conflict there deepens. plus a bribe for desertion etiquette tar reportedly offers of the syrian ambassador to one million dollars and political asylum if he defects and voices his support of the rebels who diplomat is thought to have rejected the proposal calling it a blatant interference in syria's affairs. and the u.s. says it has visibility into iran's nuclear program and is confident it will know if to run moves towards building in time to make a bomb but a leading israeli newspaper claims tel aviv could launch an imminent strike on iran

even before the presidential elections in the united states. sports is next. hello and welcome to the latest sports news here the headlines golden girl you get here and i about retains her olympic gold as russia claims they want to make gymnastics. while cold war russia's got a gay kid yes kid who set a new olympic record in winning the men's fifty kilometer will. champions for the city to claim their biggest win over spartak in sixty three years with a five nil drubbing of their ten man rivals to stay at the top of the russian premier league. so let's go straight to london where there have been even more medals for russia on

day fifteen of the a limp eight games get it has become the first wrist make gymnast to win two olympic all around titles the she defended her gold medal on stage in the twenty two year old posted the highest score in three of the four events two points ahead teammate about the need to have a new ball ny all the rest to grauman's while the each of us was delighted with her silver medal as a nineteen year old with only added to the russian team earlier this month because of an injury to alexander's book who the fuck. can set a new olympic record in winning the men's fifty kilometer walk the russian broke away with ten kilometers to go and went on to win in three hours thirty five minutes and fifty nine seconds australia's jared talent not just the silver medal he won in four years ago in beijing while china is playing third round on the water you are the guy and alexander just. won the gold in the men's two hundred meter

kayak sprint battery six silver and great britain problems. while in women's basketball russia's taking on australia in the bronze medal game this is the third time in russia. has been in the olympics third place playoffs have won the last two while a stroller where the runners up at previous olympics thirty eight thirty to australia at the moment. while there was a shock at wembley stadium where mexico won their first ever big football gold at the expense of now three times silver medalist brazil two won how do you break that also killed the ball home inside thirty seconds after manchester united right back rafael was caught in possession twenty minutes from one another final third from peralta was offside but the striker made no mistake five minutes later running in unmarked to caffie head home second from a free kick holcomb pulled a goal back in a frantic stoppage time and new chelsea signing off headed over for five yards that mexico hung on for a famous and this victory won on friday russia clinched gold in the team synchronized swimming adding to their victory in the u.s.

to complete their fourth successive olympic sweep of the medals russia's complex move gained more marks than anyone else in both the technical and free routines and it seemed finished with a whopping one hundred ninety seven points out of a possible two hundred three points ahead of china and for fear of spain. does look the. other nervous but i think the point difference between ourselves and china tells the story you need to know who are the better team and of course we are delighted. you will know what while the world champion cup the analysts saying got to go to the women's how the russian broke the olympic record with their first throw and then again with her fist at seventy eight point one eight meters. and russia also clinched their fourth gold medal in wrestling jamal it's also part of becoming the latest olympic champion after beating georgia's bloody near him she gushed nearly two rounds to nail in the freestyle fifty five kilogram category denise two prongs in the seventy four and one division there are six more finals to

be contested. while in the boxing ring if you go back on service russia's only hope for gold is guaranteed. silver after going through to the final of the light heavyweight division however three of his teammates had to settle for bronze flyweight world champion. lost in the semifinal as did light flyweight i had a pet scan and well to wait and covered and in the meantime russia's men are guaranteed at least as over in volleyball their ranks number two in the world and beat ball garia three sets to one who will face top seed brazil in the final however the best the men's basketball team could get is bronze after they lost to spain sixty seven points to fifty nine in their semifinal russian will now play argentina to decide the third place finishers and spain will take on top seeds the usa to decide the gold medal. haul in other news the usa won the women's four by one hundred meter relay in a new world record the quartet of tianna madison allyson felix bianca knight and

tommy lee to jeter part time of forty point eight two seconds shattering the previous best of forty one point three seven set by germany twenty seven years ago the jamaicans took silver with a national record of forty one point four one while ukraine took bronze attending champions russia and failed to qualify for the final. while the bahamas spectacularly beat the usa to win the men's four by four hundred meter relay the americans were the hot favorites but the team of chris brown demetrius pinda michael materia and ramon miller edged them by point three three of a second to win in two minutes fifty six point seven two seconds trinidad and tobago clinched the us. and in the meantime russia are targeting medals in the men's and women's events of the modern pentathlon which is celebrating one hundred years at the olympics and robert but i'm young but to sydney been dimitris about russia's chances of a repeat performance in the. 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 russia's need 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 double change so much and two. major issues was changed during can last last years the first was the eevee united. running and shooting in right now calling combine when its last event a result of all day and it will be the final final step for the four medals and. the laws of peace on it will be very interesting and of course the for last two years the. the us these four months it's very interesting for t.v. force because daters for anybody and because we have absolutely always on expected

result. yes for russia's chances we get those number one list soon and two time olympic champion under him we see if sounds very impressive. yes of course for the last. few olympics we go to some medals of course the expect and some medals here and because good great athletic at least like the name a save two time olympic champion the up you're absolutely right and that 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 while. he's making his olympic debut do thing go it takes to handle that psychological pressure on him for alexander of course and some

pressure before lympics because he's a young kid youngest at least usually of course in the morn there was before lympics there are the other which are on strike on the. wii expect in the. union of experience in the young as for the women savant we've got your tech gear. and you can get in the rescue now what do you think about their chances. we have chances for some medals and. our video will be wrong so a bronze medal very very very very close to to get even goals will be good fans and the right so it turns out that we can hope for gold medal in the men's of around and maybe probably bronze medal in the women's brawn bronze yes but that's a podium but. they expect it's a combination of course that it will be anything but you want to thank you dmitry thank you so much think it. 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 new or to london. now into football and the man should all cough struck twice as in a try at five mill a time to ten man spartak moscow to maintain their one hundred percent record at the top of the russian premier league wasn't dominated an uneven battle of the needs top two with maksim conic off putting them head to quarter of an hour but the decisive action came in the second half with me of the straw for maybe two nil off the fifty two minutes and then within ten crazy minutes believe that did not have a chance to pull it all back but missed his spot kick off immediately made it three no one then the spotlight aiden mcgeady saw straight red for what seemed an innocuous challenge and that the five union made it four nil victory one assured

shock of wrapped up his brace up to the death as an eight and a spot at one hundred percent record but kept their own to get three points clear at the top. while then he's pushed off mistake penalty in the seventh minute of stopping. time is lucky for twice paid back in the first half and had to settle for a two two draw at home to promoted the line yet after have sent up to seven minutes from time walked arac are currently hosting volga in the late game which one of the other. funny to ice hockey where the russian and the twenty's thrashed canada six three and jaroslav all to tie their exhibition series and one or after losing the opening day three to the home side we're back with a vengeance after the sold out everywhere two thousand and local bore curial cup which didn't send the fans into a frenzy i scored three times rushing to a sweet six three when the tournament next moved to how i fax in canada for the final two matches and the walls talked to use dave's applying to each other to commemorate the fortieth anniversary of the summit series between the u.s.s.r.

canada russia are led by fast rising young forward niall and to the n.h.l. top draft pick says he's happy to be captain. for me it was my dream and just want to win every game and. just. play hard work hard. and that's all from this was desk bike and for.