wow revolutions in the middle east sure get a great deal of coverage which you don't mix a lot of sense revolutions are exciting t.v. peaceful protests are nice but footage of moloch tough cocktails flying and crazed crowds of local middle easterners really grab attention so there's a logical next reason why some protest movements get a lot of coverage in the mainstream media well others kind of don't please forgive me for being conspiratorial but there is one revolution going down which does have all the exciting visuals of the arab spring but just doesn't get any of the mainstream coverage in fact unarmed people in this country recently stormed the parliament trapping ministers and lawmakers with that they held them down for eight hours demanding the government resign until police with shields smash their way through creating a narrow corridor through which the officials could escape now that sounds like exciting and visual news but why did you hear about it all over the mainstream press that's because it didn't happen in libya or egypt or any other exotic country

but in good old vogue area right in the e.u. where u.s. and e.u. interests are best served by the status quo being maintained there is no need to hype up an intervention or kinetic action in bulgaria the only time you ever hear about the need for a crackdown in bulgaria is when a government there actually started working in bulgaria own interests and not the us desires but that's just my opinion. as well consider them said capital with me. going to be discussing some of the i think if you still always find out what's that maybe and say can. kids go please coming up. in fees. a jam packed so it's

a state that we're going to get stuck in and talk about china because the world's second largest economy isn't setting off all kinds of alarm bells at this week it's now on track for its poorest before most since one thousand nine hundred ninety eight after growing at an average annual rate of just under ten percent for the last thirty three years the latest figure of seven point five percent is causing concern is the news we didn't want to hear from china or its manufacturing sector the backbone of its economy continues to slow more signs of weakness in the world's second largest economy we've got an economy which just isn't slow and isn't our current it's collapsing considering parts of europe are dealing with flatow even negative growth right now why all the fuss over china that well first let's take a look at what some point five percent of china is going to be actually equates to well it equals the whole of switzerland economy one of the wealthiest economies in europe so if china's growth was to stay this way the country would be adding the

whole of the swiss the connally to its balance sheet every year or three greece's if you put it like that even so is a seven point five percent such a disaster well right now i'm joined by andy as say here for morgan stanley chief asia pacific economist joining me from hong kong today so can you tell me what you make of this seven point five percent is it such a disaster well i finger china is going through our necessary phrase of adjustment rebalancing the economy over the last five years china investment to march part of it to support of the global economy because of the financial crisis but we are being versed munda has a lot to overcome parachute sure there is a needed to a skilled banking version right do you think maybe china is a victim of bubbles perhaps after truth are you to. the western countries. cut interest rates dramatically so the high money started to flow into

the emerging economies and china due to receive a lot of hard money my my characters will be sick of the signature in more than one trillion us dollars that are part of contribute to a piece of real estate a bubble in china and it's part of the over us in a story now as if the western countries are preparing to tighten monetary policy in particularly when i stage so we are seeing our hot money leaving china and other glory days over such china where i think. the people used to be very bullish about china ignoring all the problems not the or becoming very bearish or thinking that their china's growth is over i think of visions are wrong. as i pointed out of a before that china had a bubble and needed needed to go through adjustment now and i think that it's you we should not be are writing china half china's per capita income is only six

thousand u.s. dollars and it's got a lot of side the chinese people are very productive and are probably the most of what productive people in the water they consume and there are so little solar there's a lot of us out of potential i stupidly are going to china will reach twenty thousand u.s. dollars per capita income by twenty thirty and that will make china the largest economy in the ward. and moving on to the ukraine because right now the exit country is torn between two trades now as you can see stark riots in the middle just now ukraine is faces a choice is the guise of the e.u. free trade or join the customs union with russia now if you crane chooses to go west words it would become part of the biggest trade bloc in the world but the question is whether it'll be worth the country would be expected to spend money in order to meet europe. and standards for him to structure the environment and the

quality of their kids plus ukraine enjoys or even gas discounts due to their close relationship with russia if the country and is the e.u. then they would be expected to pay the same price as the rest of the e.u. countries now trade with russia is expected to decrease by up to two billion dollars on the other hand is the option of joining the customs union this will be the trade with the e.u. at the same level that it is now at the same time boosting exports to russia up to ten billion dollars annually so economically the situation seems pretty clear however politically if ukraine is ready to pay the price it may join the e.u. club for better or for worse. time land has become the first country to be in the big oil it's now illegal to use a virtual currency after the central bank declared that it's not

a currency this is the latest blow for the big choir the pay to pay cash system an alternative to traditional choruses have had its fair share of controversy since its introduction four years ago according to an online statement by the ruling came after months of meetings between the company and thailand's essential find that time justified their decision stating that the ban is due to a lack of existing. laws capital controls on the. struggles of multiple financial facets which also is rather complicated really so we've got an expert to break this down for us right here i am joined by christopher hartwell from the skolkovo business hub for us hi chris of atsic you tell me if this is the beginning of the end for the big coin no not really irene money the things that put coins are in fact exactly correct in terms of why it was banned in terms of the problems the difficulties it's having entire. it's not really that it's banned per

se it's that thailand is and i don't want to say advanced but its legal system really isn't sophisticated enough to deal with what bitcoin is is and every action by thailand well no i think it's an overreaction from the way it's been reported including by bit koin ltd the company that sells that accident exchange for bitcoin in thailand i mean the central bank of thailand really doesn't have any authority to ban currency or to ban bitcoin per se it does have legal authority to deal with the exchange rate movements with capital controls as bitcoin mentioned and with things that could impact the exchange rate of the body so right now what they're basically saying is we need more time to study what bitcoin is and if it has an effect on the thai baht on whether or not it's going to affect the exchange rate which is what they're really concerned about do you think this is now a phase that other countries will follow suit investigating the current seem all.

of course i mean that's that's always been the worry about bitcoin going was great because it was anonymous it's not backed by a central bank it's comes about from this computer algorithm so it's a really good alternative to central banking it's an alternative to normal monetary policy and obviously governments are threatened by that central banks are supposed to have a monopoly on the currency that's the whole hallmarks of monetary policy today so thanks are threatened by it governments are threatened by it and there will be these kind of ongoing investigations. and now time for some corporate news from hey in russia than russians have been going mad for miss a days with the luxury vehicles latest all friends selling out and just three months washing sales were up twenty percent in toto. yes with us. profits decreasing by over one hundred percent plus russia's gas major

gas problem has announced it will supply more natural gas to europe this year having already increased supply is by ten percent but despite the increase to ma and gas prom is still set to do a ten percent decline in profits overall. this week has witnessed the collapse of the world's biggest fertiliser cartel sending shock waves through the industry pushing down shares in protest produces world wide by around of course our panic has been spreading on global stock markets is the russian giant your account he decided to pull out of a joint venture with its bellary space partner bellerose kelly in the agricultural world this is the equivalent of saudi arabia dropping out of opec and this could all result in lower food prices because farmers will pay less for their first eliza to grow their crops and pulses discounts on to the consumer at the checkout also

this could mean an increase in the size of crops so people will get to enjoy a bigger soybean or less. russia could soon welcome a budget airline air a floor russia's largest airline is trying to offer flies to savvy savers as early as next year and our customers could be snapping up tickets up to forty percent cheaper than traditional allies and as it stands russia doesn't have a budget airline and the flights are much more expensive than elsewhere for example a flight from moscow to davis stock in the far east of russia such a domestic flight is twice as much as the cost of a flight from moscow to new york at different continent but while there might be a gap in the market the problem is budget airlines have a history of failing to take off now to a low cost airlines even over and sky express. companies folded in that quest to

do so so now i don't buy the found out of a vienna or we've got to pry just had to give us the lay down hello that i can say thank you for joining me but tell me i want to get an idea as to what arraf are up to what is the thinking behind this because why don't they just reduce the prices of their flights why create a whole other airline ok.d. i think if they simply ricci's prices they go out of business for a c. so i think the logic here is to create a unit which will be operating on a low cost basis and then to pass those costs on to the consumer. why why are they doing it now i think is as you've said there's been a gap in the market for two years they're seeking talking pilots but they're also facing very sharp competition now from foreign low cost carriers coming into russia we've seen easy jet for example stop flying from from london to moscow so i think also there are flawed or trying to some of the local scripts in order to enable

them to compete more effectively in the in the overseas market as was a domestic market and is it all about stamping out competition in terms of the russian market i don't think it's about stomping out competition i think you know the basis for a low cost airline is that you grow when you market to encourage people to go from coaches and from cranes on to planes so i also i would say to be charitable it's about growing a market as a consumer if i'm going to buy a ticket and i see the air flow are offering a certain price they're new but to airline offering another a much lower price i'm going to go for the lower price here is still a hard concept to understand if you think that the brand of araf lots could be damaged as a result i think it's risky but also short the brand would be dumb age but you're right to raise the question because we've seen i don't know how many fifty sixty seventy examples of foodservice airlines trying to set up low cost airlines. only a handful of been successful because what normally happens is that low cost along

becomes too successful and accountable it's the parent company. prime example would be british airways. which we saw fifty years ago but you know there are numerous examples and i think this is the real challenge that aeroflot will have to face how will they. give roofs a low cost airline to develop and will but not people up there call box so it's a lot that's a challenge that it will definitely help to to overcome well i think at the end of the day the anywhere now in all of this can be they can see us i absolutely for one of them say it work out thank you very much indeed for your time today what you find just i'm us all the time we've got the venture capital for this week thank you very much indeed for oil company i'll be back same place same time and next sunday so i'll see that.

over the business got a call after so i just really steps down georgia's new political leaders find a way to develop relations with the south to say to enter upon. us would you be possible at least in theory for these nations to unite. and would brush of recognize the territorial integrity of georgia in this case. we want them to live in peace. but it's up to him would decide what relations they have to try to please we won't interfere with that. wealthy british style.