hello again this is all seem to have a. rebel forces have reportedly claimed responsibility for a powerful blast in the syrian capital damascus explosions trying to just in front of the hotel where the one observer mission to stay. so i quote will stand solid rumors already granting is true then all songs are asylum as the whistle blows quest for refuge and is a seemingly final but nonetheless parents say. more violence in afghanistan while revelation stuff is a gripping conditions in america run faster still something that u.s.

general try to sort of wait until the. next all she's oksana boyko interview's german economist. who claims the use economic problem is only a temporary phenomenon due to the union support while driving american states will have no one to bail them out. despite numerous problems at home president obama seems to be very much involved in european affairs what state does the united states have in the resolution of the euro crisis to discuss that we are now joined by hans very there is in a prominent german economist and the president of the e for institute thank you very much for your time sir. how does the euro crisis affect their american economy the problem is there in the five european crisis countries including italy. we have

a government debt of nearly three and a half trillion euros and we have a banking debt of more than one trillion or talking about twelve and a half trillion euros. this debt is also yes it's sitting in some portfolios of investment companies throughout the world including the american investment companies so it's obvious they're very afraid of not getting their money back if some of the southern european countries default and they look for someone else to pay them the money and this is why the urge germany in particular to step in in. agreed to an expansion of the bet bank and the banking union which would socialize the debt in europe it's

always the case that the investors look for someone else to pay the bill and in addition there is of course an american involvement in so far as american. insurance companies have insured. the state debt of southern europe with the c.d.s. contracts so should they default. they would have to pay the insurance pretty indemnification payment and clearly they want to avoid that you recently made a point that the united states economically speaking is not practicing what it preaches on the one hand it pushes germany to provide money to bail out greece and all them but all countries but on the other have nobody's talking for a bailout for california for example ridge is also heavily in debt what i find very surprising is that the united states would never think of bailing out california when it goes bankrupt or every state is responsible for itself if there is

a loss it has to be borne by the creditors of that state while at the same time they argue in europe there should be an international bailout and this is all too obvious they want to save and rescue their own investment and the collapse of the soviet union was taken as a prove that socialism as an economic system was not sustainable we are seeing a lot of crises in capitalist countries do you take it as a sign that capitalism in its classic our current form is not sustainable either i believe that capitalism is stable and i think the market economy is really the better alternative no doubt but this kind of torbor capitalism which we have seen in recent years this irresponsible capitalism resulting from the gamble. for resource action played by the banks they're in vest in risky enterprises hoping that their profits the profits will be privatized while at the same time expecting

to be bailed out if something goes wrong this kind of capitalism should not have a future they visited a vintage car dealership and the owner of this business told us that he is seeing a lot of clients from greece from spain from italy from other embattled european countries who are buying these very expansive cars breath hundreds of thousands of yours ride there on the spot so we are seeing a very strange situation on one hand julie is asked to provide help to those countries but on the other hand we are seeing citizens of those very countries. taking money out and spending them here in germany how do you explain that the problem is. the southern european countries are not competitive anymore with the cheap credit which the euro provided inflated too much and the price level is no way above the sustainable equilibrium and now the e.c.b.

it prints money in herb's these countries with cheap credit which is offered way below market conditions and thereby they make it possible to continue buying goods in the rest of europe with this newly printed money you saw the whole thing is a mess and we have to find solutions to percy fi the european situation which in my opinion can only be an exit of some european countries temporary one where the reduce the value of their currencies recover and then can return later. at the new exchange rate into the currency union everything years is dreaming all politicians dream a lot of a solution with more and more money they have the. person that putting money in the window would solve the problem in fact it's a bottomless pit now some economists suggest that rather than kicking out greece or

are loaned out of the euro zone it is joe many that needs to show their lead and exit the union what do you think about this proposal i don't think any country should be kicked out of the union but some countries are so expensive that they won't make it in the in the in the euro zone is greece is a good example they have to come down with their price level by thirty seven percent to be on the turkish level and they have the same wine the same water the same food as turkey so basically they can't be more expensive and you can't achieve that in the eurozone you cannot cut wages and prices to that extent to make the country competitive because then it will be breaking up the only solution is for greece to exit hopefully temporarily and return later at the new exchange rate into the euro why is this such a catastrophe if the politicians say it is a catastrophe they might make it

a cut to test trophy i think it would be much better to see this less dramatically now many columnist see spain as a major reason for concern as well its government debt now stands at seventy two percent of the country's g.d.p. the banking system is quite unstable do you think that spain will become the next black hole for german finances we have a competitiveness problem in spain too but it's not as severe as in greece or portugal according to a study of courtman sachs. greece has to come down by thirty per cent in its price of portugal but thirty five and spain by twenty percent so it's a completely different situation twenty percent is possible. if you think of germany since the unknowns. and of the euro at the madrid summit in ninety five from then to two thousand and eight the lehman crisis germany. depreciated or

devalued in real terms as we say by having a lower inflation rate than the others in europe by twenty two percent or twenty percent in that order of magnitude for a decade with a decade of stagnation is the possibility not a pleasant one germany had its own crisis on the euro and recovered only after the financial crisis and a similar crisis is foreseeable for spain so if spain wants to do it that way in the hard way they are invited to do so but spain is too big to be bailed out in a similar way as greece as greece received two hundred fourteen percent of g.d.p. as aid how can we do that with spain these sums become astronomical too big for the rest of europe and i think everyone knows that how much deliberation can really afford any and now on the on what to deal how the problem you the problem of the southern european countries total bank and

government debt of twelve point five trillion euros is too big for germany to to be solved. germany's g.d.p. is two and a half trillion so the only possibility is there the investors themselves except some haircuts if the banks in spain for example have a problem because of these huge write off losses on their toxic credits to. real estate investors well then the creditors of the bank would have to lose the money first of all you could try to detect with the swap that is the old equity owners hand over their shares to the creditors in exchange for a haircut that would be a fair deal for the credit. the equity owners would lose their money the bear the risks that's their function and if that is not enough if the right of losses are

larger then the creditors would have to lose a little bit more but they can do it no one else can do it they own all these claims and therefore they are the only ones who have the capacity to bear the right of losses you can shift that to the taxpayers of other countries thank you for a transfer. my isolation and prejudice. define aging. do it with passion. learn to fly. jump to the top.

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top stories are nasty rebel forces have reportedly claimed responsibility a broad powerful blast in the syrian capital damascus explosions trunk just in front of the hotel where they do an observer mission and. i quote all stumps out rumors of it already granting june and i saunter asylum as the whistle blowers quest for. refuge and does that seemingly find all but a perilous stage. and more violence in afghanistan while revelation searches of the living conditions an american run hospital something a top gear's journo tried to sweep into the. sport was good and has a riot and it seems to be the luck of the park today in ice hockey it's certainly

does it's the fortieth anniversary of this summit series thought huge ice hockey series dream calendar and us s. r. was not under twenty much earlier today we're going to have a look at what happened in just a moment. thanks for joining us this is sport today plenty ahead over the next ten eleven minutes or so including all the. testing times i rico sly and wait as fabio capello prefers to take charge of russia in a competitive match for the first time later today. net loss in reoccur lanka's main warm up tournament for the u.s. open ended prematurely following defeat to wild card and from venus williams. reigniting their rivalry a cross continent tournaments marking one of the most famous ice hockey episodes in

history the one nine hundred seventy two summit series between canada and the u.s.s.r. drops off stateside. wednesday marks fabio capello's first test those russian national football team manager the italian aiming to find a way past the ivory coast and make the country warm to the side again following their euro two thousand and twelve group stage exit michael chang go. a new manager a new era that's mainly how fabulous appointment has gone down in russia and he's wasted no time in ringing the changes axing several senior players like readings pavel pogrebnyak and sporting lisbon is my love in the process. i've chosen players based on their current form but also with an eye on the future taking into account their age because for those who are not picked i will continue to keep tabs on them and although i admire them i have to make a final decision. on that one of the main complaints by fans and critics alike was

how quickly the level of commitment faded during the euros but capello has already drafted in some new young players in order to begin rebuilding the passion he so demands from his players. it's always been a privilege to play for my country regardless of whether it was for the youth team or the under twenty one's i love my country and i'm always ready to play because sometimes things don't go your way but i've always been motivated to the marks of. the team may have failed but most of the flak was directed at none other than russia's captain andrea shannon but rather than seek out somebody new capello has decided to put faith in the arsenal london forward. i believe everyone deserves a second chance to become the best again and put our share of him it will be a great opportunity to prove himself once more in this important role because criticism serves to help improve and then we develop further and to acknowledge our mistakes arshavin has of course shown much remorse since his infamous fall out with fans after the team's two thousand and twelve exit at the hands of greece putting

the past behind him he seems to have embraced his role as captain with a new vigor about it who also want to see as many supporters come to our games as possible and i want him to support us not only for the game on wednesday but throughout the entire qualification cycle because it's been a while since we last made it to the world cup and this time i really want to qualify. booking a trip to really different. twenty fourteen is the ultimate goal and no one is in doubt that capello is the man who can get them there but it will be the players who ultimately have to win back the hearts of the nation so the era of capello's reign in russia begins in earnest today with a training session behind me in preparation for the first friendly match to be played against the ivory coast on wednesday evening of course this means that there's plenty of opportunities for new unexperienced young players to take advantage of this new restart for russian football but it also begs to see how far they can get when they take on the runners up of the african cup of nations michael

r t moscow region while it did you do shampooer in french football is getting off to a tough start ahead of the country's friendly against uruguay tonight after it was confirmed this week that two of the team's biggest stars will stand trial in a high profile sex case karim benzema frank river a welsh relegations of soliciting a prostitute in two thousand and eight and two thousand and nine who was on the ridge at the time period deny the claims while the women and question season either manju that she was just sixteen at the time of their encounters prostitution with over it teens in france is legal the players could face a maximum of three years in prison on a kind of around fifty dollars u.s. . this is a lump in her meanwhile enjoying a hard earned break after the games the country's female artistic gymnast team though taking the time to criticize some of the judging in london despite the squad bringing home a gold two silver and three bronze medals. she is the addition of russia hasn't won

much tonight used to do mistakes since two thousand and it's very hard to get back to the top opposition one drunkard's judges do you see he says the country dominate and then could possibly even grade them higher than they actually performed and in the start in however had a completely perfect in then even bars and she wouldn't have seen one gold otherwise. let's talk tennis from reoccur lanka has become the fourth seeded player to crush out at the opening round of action since the russian putting up a valiant effort against venus williams but eventually came up short in their three set battle london twenty twelve doubles gold medalist williams easing to the first set against the russian six. but current has showed great resolve in the second fighting back for five four died to take it seven six williams finding a more consistent rhythm in the third however wrapping things up swiftly six three six seven six games to two to advance. i.

julie kerber is remaining on track to reach her fourth w t a final of the year the twenty four year old though had a slow start to her second round battle with some very unlucky loser to me about boss kerber dropping the opening set six three possibly showing some rust due to a first run by this year's wimbledon semifinalist however following her stride in the ensuing say it's really just why she is right the career high number seven in the world three six six one six two the final score again. to ice hockey or come to russia came victory in a tournament marking the fortieth anniversary of the famed summit series the under twenty stars adding another chapter to the nation's storied rivalry but among cos rev goes back to the future for us

here's a. it was quite obvious that the locals have really missed their high level game as both matches and euro slalom have been sold out the fans players and staff

honor the team members who perished with a moment of silence. this is i've been a fan since the age of six but after the trying to do with i couldn't even watch hockey without crying but i'm glad i'm here today to witness such a great match and i'm very proud of every single player on the ice. well canada claimed the three two win in the series opener before russia returned the favor with a six three victory in game two but the international experience for both teams certainly added value to the result the twenty thirteen junior ice hockey world championship will be held in the russian city of new fall so it's not long before we see these youngsters they sold in order to once again stake a claim to the title of the greatest on ice hockey nation. ramon cos were already there a slump in. the youth series in fact now over encounter that with the home side

securing their bragging rights it was russia however who went into the game for the cider leading to an overall but after the match ended all square the canadiens did the business in the sudden death period wrapping up the game for two and winning the series. now europe and north america may be in the midst of summer some places for being better than others with the weather of course but it's chilly definitely in new zealand meaning the winter sports season is now in full swing welcome to the high altitude world helli challenge side the so i thought i would. be a fencing helicopter take snowboarders on skiers to new heights who then tried to number get darren mont albert sitting much slower as they can muster to impress the judges the two thousand meter tall peak providing plenty of chances for some extreme a new version picture perfect powder at the top making way for more grippy conditions towards the boss.

they certainly seem to be enjoying themselves anyway that. make it in two hours time i'll be back. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. china operation to rule the day. most of the. money and technology innovation all the latest developments from

around russia we've got the future covered.