ally that welcome to business president vladimir putin pledged to strengthen the russian economy today and his state of the nation address he highlighted the importance of fighting corruption investing into russian equities raising taxes on the which our correspondent natasha said that sky has all the details. putin's main

idea for russia's development in the twenty first century is basically it looking eastward meaning of course india and china and judging by the market's reaction investors really liked what they heard the r.t.s. jumped to the psychologically important level of one thousand five hundred points its highest since mid october and putin's address to the federal assembly his first by the way since coming back to office in may had a number of important economic messages but perhaps not one that traders liked the most had to do with putin's ideas for russia's so-called stabilize ation fun he suggested investing about one hundred billion rubles annually that's about three so billion u.s. dollars into the russian stock market. warda by the end of the year the stabilization fund will reach about nine percent of the g.d.p.

that means that we already have a certain the safety commission starting in twenty thirteen i suggest investing as part of the fund into the russian equities and the president also mentioned that the much anticipated privatization program of russia's state owned giant should be done a locally meaning that companies like russia's second largest bank d t v the railways monopoly russian of railways and the diamond mining giant all grosser should all hold their i.p.o.'s here in russia that's of course a very good news as well for the russian markets and as part of his effort to fight corruption which many say is still rampant and russia that it's hurting not only a local businesses but also foreign investments into russia who just suggested that companies should not have offshore bank accounts and that state officials should not be allowed to own the real estate or. braude investing all their savings into

the russian economy. how can we trust a politician or a state official who talks up a storm but at the first opportunity to take his money out of the country and many local businesses as well as residents of course watched closely when putin talked about taxes and so far many of them can't read the sorrow of relief as to the such they suggested that russia's current fifty percent tax is here to stay but maybe while the russians will have to dish out some extra cash to the tots band as putin suggested introducing these so-called walk through rate starts as early as the first of next year. we're going to take a look at the russian market's reaction then as you can see investors demonstrated that. it was just handing out school reasons and tensions with m i six i want to

mccool's one of the hall for the arts yes as the russian current says them the ruble finished up higher against both the us dollar and the year i mean while the euro continues to gain against the us dollar now hitting a six day high meanwhile european stocks managed to maintain the three week rally that has investors but the u.s. federal reserve well on real a new round of bond buying in a bid to support the economy u.s. stocks are rising that some of the constant speculation that the federal reserve will expand stimulus measures and as well mike is also continue talks on the budget to. a new life begins for russia's laws a cause has run on the somme has signed a deal with after vast ross technologies corporation to take over the russian call micah the companies are creating a joint venture whether or not the sun will get fifty percent plus one share by twenty forty while providing another seven hundred fifty million dollars of investment to make sure member danko course. the head of or not dishonest sponsor

by asking how much money they can call much has already spent only troubled person brown its direct investment is going to be at these two billion dollars so far at least two billion dollars i'm counting on the director without the director and is going to continue as going to continue and frankly for an only son makes a lot of sense you know what we need to understand here is a really win win strategy between the two of us from one side bernie son from the other side and russia from a third side obviously every government is interested in to promoting employment into promoting working conditions into making sure that the corporate social responsibility be as much as possible so when are you expecting a return on investment what i think the return on investment should be within three years i would say something reasonable you start to see a good return on investment obviously the return on investment depends on the

quality of the job which would be done by our teams obviously the author of us team but also the renault team underneath some team in russia have you personally driven a lot of car i did so what do you think what i think the car of the car help you understand you know what the russian consumers want and what russian consumers do not want and that's why i think it's very important to still strengthen the brand because i think russian consumers want russian brand but they want modern products offer by russia and we think that by driving the previous generation of flood the cars we understood what are the enhanced months which are needed to make new cars for the like the largesse or like the granta we should say i'm very pleased to see that very lot of orders for these cars that of the of us is struggling to supply. so you don't think a lot of brand carries

a negative reputation absolutely not i think in the law the brand as a brand is an asset the fact that it has a very strong russian identity it's an asset for the for the alliance as much as the sun is without a discussion the japanese brand as long as renault is without a discussion the french brand we want to be a russian brand so in the alliance we have a lot of brands with a very strong identity and you want to keep it this way but the brand strong guy that he should be should pointed with the product which is attractive and really responding to the needs of the consumer and we've just recently launched an assembly line for the nissan i'll marry at the tell us the plan tell you planning to launch a move what you know the option of aft of us is going to go above one million then on top of these. and then you have you just deal with two hundred twenty

thousand capacity a per year moving up to three hundred and sixty seldom so when you add. do you end up with something which is around one point four million to one point five million though there is plenty of room for a lot of plenty of room for another as a priority on these capacity. after recently coming second to the dreams jobs. russia's largest state oil company now has a new vice president of personnel now ross next employees will want to be on the best behavior from now on because it is the former head of the federal prison service eureka live and all now around the human resources department at the oil giant so a very well live he certainly has experience to do with trouble mike is it discipline is needed i'm sure. today. the business now off to the right which is trade and investment minister lord stephen green tells us will be

gained by breaking down barriers between member states that's coming your way after this break. in japan the average height for men is one hundred eighty two centimeters intention to meet a shorter because of that some employers refused to hire me one of them even told me directly that i was too short to deal with the client's computers already spent three months in this hospital and plans to stay for another four to the coveted seven santa majors to his stature invented by the famed soviet orthopedic of really result of in the nineteen fifties these frames were initially used to treat fractures in deformities by cutting bones and slowly pulling them up or therefore stimulating tissue regeneration it was out of was able to receive arms and legs and people who thought they were crippled for life piecing together patients shattered bones and in many cases their shattered lives with the goal when professing you

a czar of design his first frame using bicycle parts sixty years later his invention is increasingly being used to help people who are eager to fracture their legs to become a few centimeters taller than the ultimate goal is still the same fixing somebody is live both literally. i think it's only about a third of patients admitted to the center now days seeking series jury for medical reasons most of them are men and most are not what you would call vertically challenged professor novick of who operated on many of them says it usually comes down to a man's pride. the first patient to turn to us with a leg length i mean a quest to meet his fifteen centimeters tall to want to surgery because panos tool than him we like to say that we need to break their legs in order to fix their head maybe nothing wrong with them from an orthopedic point of view but there is something psychological that prevents them from living their lives fully being

happy and we fix it like lengthening surgeries are banned in many countries and even the will out there pressure expensive in russia the entire course costs eleven thousand dollars about one tenth of the similar package in the united states. financial considerations were one of the reasons they had broad base washington state native to western siberia yet his main motive for the surgery had to do with how he fared in auditors in america advertised as one seventy five hours one sixty seven or one sixty eight and so on eight centimeters would have brought me right to average if i just wanted to be average for women height isn't so important you know i think girl can be short and it's not a big deal like your guy is like expected to be taller just before the operation most this matter russian girl who found he's a regional hide quite endearing yet he still want to have a day surgery adding seven more centimeters to the self-confidence she took to tell

me the whole time you're crazy you're normal you're perfect. for now or should i call you so what a compliment for somebody who's used to falling short of his own expectations. from fears to tears europe is in the midst of a depression officially the latest data shows that the seventeen member eurozone will end the year in a recession its second since two thousand and eight the second and third quarter g.d.p. was below the line and the massive social unrest that swept across europe in recent months underscores the point europe needs seaview and leading economists say that could be britain goldman sachs estimates that it will be europe's biggest economy

within four decades would one of the world's wealthiest populations the help of the so-called single market already largely depends on the u.k. and vice versa but at the moment britain itself is feeling the pinch of the downturn at. we live with a decade of debt and the failure to equip britain to compete in the modern world while britain is actually not a member of the eurozone it should try and play an increasingly important economic pool in the world's most integrated market of five hundred million people that's according to all or agreement the u.k. minister for trade in and that is britain is in the process of rebalancing its economy one of the things we learned from the financial and economic crisis was that we have been growing too much on the basis of consumer demand fueled by debt and now our task is to encourage more and more companies to get into the international markets in other words to find a growth formula that's based more on trade and stronger investment what price is

the u.k. paying for what some call to close of a relationship with the rest of the european union i don't think we pay a price for that actually i think the benefits of the single market are very considerable it's very important for us to recognise that the single market is a market of five hundred million people it's a relatively prosperous market it's the world's most integrated market i mean great deal has already been achieved which enables companies to trade seamlessly across borders but it's not perfect yet and indeed one of the key preoccupations of the british government will be to press for full implementation of the single market in the coming years what are the downsides are there there must be some downsides as well we don't think drawing down sides of a single market because we do believe in open trade we believe that. the market is genuinely borderless more companies can trade across different markets access different pools of demand we believe that's beneficial to the economy we believe that we don't lock significant growth within the european union these so-called

euro skeptics they would of course argue that. the brussels strips the e.u. countries not only of their economic independence but also their political sovereignty what's your what's your take on that well i think there's a very very intense to be. of course not because of the moment we just have the the the summit on the budget but actually the from my point of view this is looking at trade and investment and what creates jobs we need to focus on the five european union is a large single market five hundred million people it is the biggest one in the world and the opportunities within it are enormous which is why i encourage british companies to look at the opportunities there it's why astray by mr spend time in brussels for fuller implementation of the single market i was also by the way for free trade agreements around the world with european union part of the markets can the u.k. opt out of the european union are politically while staying very closely integrated economically it's not part of this government policy it walked out of

the european union we're not a member of the european of the euro zone that's clear and we believe we have a good and sound reason for not being a member of the euro zone we are of course affected by what happens in the euro zone because something like forty five our export over forty five percent of our exports go to the euro zone for the european union as a whole is a large single market and we believe there are many benefits from it and yet david cameron is rejecting the so-called e.u. fiscal pact what's going to be the consequence of that rejection how do you see that developing the fiscal part has to do with the euro zone and we're not a member of the euro zone and do not intend to become a member of the euro zone so i think it's important to distinguish between what needs to be done by the eurozone members to stabilize the euro zone and find its way through some of its difficulties and the wider objectives of the european union as a whole which focus very strongly from an economic point of view on the single market and what do you think needs to be done by the e.u. members to to tackle the issues that they're dealing with now in the top of the

single market or about the reserve it is very important distinguish between these two i am talking about the eurozone and the problems that that is currently facing program the euro zone and this is the euro zone is seventeen member countries and we would believe the do. this important to increase the degree of fiscal coordination to move towards banking union and to generally stabilize the markets within the euro zone but we're not a member of it and it is for the reserve members to address the problems we are clearly interested to keep that should happen because as i say we are part of a trading block which includes the euro zone forty five percent of our exports go to the euro zone but in your opinion is the exit of so my eurozone members and habitable at this point now so you know so you don't believe that greece is going to leave the euro zone in the near future but no i don't i think the years i will find its way through to a stable resolution in which the financial system is robust which the which growth

will slowly build up but this does require addressing some particular issues about competitive eighty five different markets and how do you think that should be addressed i think it will be a matter of slow. adjustment of a number of different economic regions and it's important that those issues are addressed so what do you think would be the specific solution how do you think that should be tackled specifically with greece you know the issue that's on everyone's agenda right now what do you think is the best solution in that particular case it does seem like somebody would have to take the loss who do you think it should be clearly the very significant problems in the greek economy and a lot of progress has been made there are a number of adjustments that have to be made i think it's also worth from greece is pretty small part of the total group in terms of its economic significance. but it's important actually whether it's greece or any other country that the market is internationally competitive most importantly so you could do is

constantly benchmarking its competitiveness against the wider world because we live in a globalizing. market where you can as it were opt out of looking out whether you are competitive or not on a global scene where you're seeing. the rise of faster growing markets including russia which is why i'm here because the opportunities for british businesses i mentioned before the five percent of exports at the moment to go to the euro zone we need to diversify that in the years to come not least because the fast growth is going to be outside of the european union in places like russia as well as india china brazil indonesia and so on so how do you see your relationship with russia developing well are extremely encouraged by the way in which the trade and investment relationship with russia is developing we've seen british exports grow rather rapidly both in twenty eleven and continued into this year twenty twelve i think there's more to come one of my reasons for being here is that i brought with me a delegation of british businesses and these are medium sized businesses they're not

large household names and they're not very small businesses they're medium sized businesses who are in the context of the british economy economy create so much of the growth the employment. and are so central to the sustainable growth strategy and it's important that we encourage them to be looking at opportunities in international markets and i believe russia is a very exciting prospect for all it does seem some of the life some of the russian businessman are already looking at some opportunities in the u.k. and in particular of course a lot of the russian you know the super rich the so-called tycoons they're taking advantage of the british court system as we know too oftentimes to their benefit they seem to be resolving their disputes and just recently the london mayor boris johnson in fact encouraged these russian oligarchs to come to london to resolve their legal matters what's your take on that whole thing i believe that russian investment interest in britain is growing i think it's good that it's growing from

the body of the british economy we welcome foreign direct investment from whatever source and it's clearly the case that the billion number of russian investments made in the real estate market football club. of course famously i'd like to see more russian investment in other sectors of the economy too and what do you think about british direct investment in russia how do you see about growing well i would like to see that grow now britain is already a very significant investor in russia we are in fact the third largest foreign director of investor in russia much of that has to do with the oil and gas sector i'd like to see that pull out again part of the reason for having businesses with me on this visit is to encourage them to look at the opportunities just the presentation for example scope about where i think there are potential areas of interest a whole number of british companies and also educational institutions or speaking of the oil and gas sector there's been a lot of talk about b.p. potentially teaming up with gazprom to build a pipeline from russia to the u.k.

to deliver russian gals that would be a very significant deal in the oil and gas outright years which is a commercial. discussion between b.p. gas problem from the point of a bridge energy policy what we care about is diversity of sources of energy generation and we're paying a lot of attention to renewables energy. nuclear power to gas we want to make sure the sources of supply are good and diversify because of we think that's what makes sense for the long term interests of the british economy i know you have a lot of experience in banking one of the issues that we hear more and more about is the fact that it's the banking sector that's to blame or partially to blame for the current state of the of the global economy and in fact some of the people say that it's the lack of regulations that's really to blame what do you have to say to

to to that but i think the banking sector was partly to blame for for for the financial economic crisis. the very complex background there was no doubt the banking activity trading activity played a significant part of the long welcome by. not in the way in which the excesses were generated and i do think there are many lessons to be one of which is about regulation there was probably too little regulation since over the last four years regulatory hansoms to be very significant was much more attention paid to the amount of capital banks have to hold the amount of liquidity that they have to hold in the case of britain we have segregated or in the process of segregating retail banking activity from investment banking activity because we believe that leads to a more robust system is very important we learn the lessons it is of course also important to know that no economy in the world can do without profitable robust banks providing credit to the real economy here just recently i spoke to a famous rogue trader who brought brought down the bearings in the ninety's and he

said that actually the regulators are just as bad now as they were twenty years ago for example what do you have to say to that and i don't agree with that at all thank you very much sir thanks for your time thank you. do we speak your language i mean some of the will not advance. news programs and documentaries in spanish matters to you breaking news a little tentative angles keep the stories. you hear. to try altie spanish find out more visit i to our. olympic gold it. live.

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