hello there welcome to venture capital with me katie who we this week china has been putting the back into gold but is it all about savvy investments or always witnessing the transformation of the global financial system as we know it and us is on that one plus if britain is ready for the showgrounds it revolution will weigh out the pros and the columns call for you to come as well as checking in with our in-house investor has shown told us to find out what he's been working on in terms of the russian stocks and how his ten thousand u.s. dollars it is performing that's all to come but first of all this talk about the eurozone because the region is officially out of recession. has been a roller coaster ride for the euro zone since two thousand and eight when the words began to give way and the only direction seemed to be down but the mechanics of the

system seem to be coming together well some parts of and away the region happy as a whole has grown or point three percent in the second quarter of this year after enduring six months of contraction in the front row seizes germany along with france as you can see that but what about the rest of the eurozone passengers well the likes of spain and greece demonstrate that the ride as a whole may not be entirely safe just yet for more on these latest figures i'm joined by steen jacobsen from sachs a bank heist and good to have you with us today can you tell me what was your initial reaction to the fact that the eurozone is now officially out of recession. well first of all of course it's great news that we are finally seeing some sort of a truck sion on the on the growth perspective but also must say that i'm very skeptical about the ability to maintain this momentum as we few look at. the

underlying data which is going to support growth long term unemployment rate still elevated lending in the banking sector very limited and my key issue being that you remain without the s. a means to eighty percent of the economy being activated so skeptical but happy to see that you're finally having a little bit of success i think back in two thousand and eight two thousand and nine if you just said to somebody then we'd be having these kind of conversations in twenty thirty and there would have been a real fear facet going on having said that do you see the eurozone sticking together now. i think europe has locked itself in a corner it's painted itself into a corner where it's very difficult to extract himself from unless we get a new crisis point because i think what we learn from the history of the last five to six years in europe is that do you only changes that is mandated in europe comes when the market is pressuring the politicians all you see stock markets coming down

so unfortunately like in history i think the only way we get resoled and mandate for change will come through that except a new crisis point which i think will be back to our starting point as we growth what we risk right now is clearly a jap and i ses and in europe doing nothing doing too little and waiting reforms to happen naturally it will not go that way unfortunately i case it stayed here is that you know out of the danger zone yet then. no but you know any news is good news in terms of positive growth but overall we need to see the structural elements is imbalances be dealt with and then we can have some hope but i don't think we're too forward but it's not going to be in thirteen and probably not in fourteen. thank you very much indeed that steam jacobson from sachs a bank. and a global shift is happening china is set to take over from the us and become the

biggest consumer of oil there and i one of the main reasons for the shift is the us is becoming less reliant on foreign oil because the domestic supply has been revolutionised by shale gas talking to show gas one place where fracking has bought a huge debate is u.k. now on the pro fracking team is the british prime minister david cameron who thinks development of the shell gas will create much needed jobs an estimated seventy four thousand in family here some of the other benefits mr cameron is claiming is well. sim vironment syllis leading the anti fracking campaign and and his the reasons now according to the way system ations five hundred years worth of gas supply is lying beneath britain right now so how we shall get such extract to that well is haven't so the process of fracking involves drilling a hole deep into the dent shell rocks that contain contain the natural gas and pumping in a very high pressure of vast quantities of of water mixed with sand in chemicals

this opens up these tiny fishes in the wrong now through which the trapped gas can then escape it bubbles out and is captured and brings it all the way to the surface and then and then its point count now i asked chris we senior partner with advisory whether fracking is the way forward for britain now as to what it practically have an overall economy of course is very much to go question if the u.k. developed the resourced standards to optimised. see no question about it we consider the door energy basically energy cost of the street a boost to comparisons of the manufacturers an industry. in general and that's what the u.k. government is the could not see that show yes i'm sure you know it has a fixed u.s. economy and has been that least one of the factors in the us economy. is slow and showing decent growth this year so you know you could expect their government is

looking for ways that it can also sustain what is still a very fragile. economy and moving on to some companies that here brush up on some of the biggest business stories that are rocking the country almost on the way that russia's role set the bar they give companies traded oil. as a by john oil and gas still as a buys on is the third biggest oil exporter in the former soviet union to russia because it's still. russian today and i met those magnate i got a past case montenegro for one billion dollars the fact. pay pal is launching ruble transactions starting up from september the russian ruble will become the payment systems twenty six cards check in with our in-house invest sahara thomas to find out how he's been getting on with the russian stocks

have been good to see you so as we know you were given ten thousand u.s. dollars to invest a second week in the jobs who we are expecting results to tell us how you can get a well i was expecting results too but i'm going to have to say wow this is confusing ok so when the numbers are going up and down in the charts and graphs are all over the place when it's going down that's bad right so ok so i decided i was going to like have some faith in their pocket because you know he had this idea to look to the east not a good. thing i took a bad nosedive it went down i'm getting out getting out giving out four point seven two percent and still following i'm just going to get out of the metals business altogether roussel being the largest aluminum company in russia it's not doing too well at this point time some good news though we talked about telephones and megaphone they had a pretty good week they've been up not as bad as resolve been down but they are there up about zero point eight percent so i didn't lose my shirt in this whole

thing but man this is confusing stuff while it sounds really confusing and you've. got that's good news indeed well also russo all they're actually having some meetings this week to talk about even closing down some of their facilities so it really is time to get out on that one as far as i'm concerned ok and what's up his sleeve for next week all right so energy oil everyone talks about how russia is like an energy giant and this is what they know so i'm going to try and do some recuperating from this huge roussel loss i'm going to go into gazprom and see what i can do on the oil side of things because i hear gazprom is rolling in fact they're up two point four percent so i think i'm going to look to the future and look to the energy stocks this week and it's the gas problem that's what your all about so i'm will be checking back with you next week to see what you've been up to stay away from metals you've had

a bad run of it and mega-fun as well said he she got a bit of direction all right showing thomas a fully clothed show in thomas just i will see you next wait thanks. china has been building up its gold reserves in a record numbers in preparation for what some see as a revolution of the global financial system now this current buying spree is fueling speculation that china is preparing to adopt the gold standard now this follows comments made by a member of the. people's bank of china committee calling for a new system to stabilize global exchange rates so this is where all the gold is right now you'll be able to see behind me and as it stands the u.s. holds the world's largest gold but it is suspected that go to china has up to ten thousand tons of passing that of the u.s. so all the dominating days of the u.s. dollar as the all powerful reserve currency i know what i'm going to get some expert analysis right here from william wilson from the business school to tell me

presuming that china is is doing this on purpose this is why it's buying up all the gold is the right decision is this the right way for what we do which i've been buying gold in recent years the quote we don't know how much gold the chinese officials have not released any official statistics on it but the we know this the chinese have three point five trillion in foreign exchange reserves as about fifty percent of their g.d.p. and they're worried about the value of the dollar of the world's major reserve currency five ten years from now so they're looking to diversify those massive foreign exchange reserves and this is probably good primary reason why they're buying gold had been buying gold in recent years diversification. and do you think that this all comes from the fact that the u.s. has an absurd amount of debt right now i mean we say sixteen trillion but it could be fifteen to one hundred some estimates is that what's what's fueling this

diversification. one of the primary reasons that the u.s. national debt now is sixteen trillion dollars. and projected to grow quickly over the next few years. or the dollar remains the world's primary reserve currency about eighty percent of the. reserve currencies are held in u.s. dollars but there's a concern if you look at the federal reserve assets they've tripled in size over the last three years so looking down the road. there's obviously concern among chinese authorities about a dollar inflation the dollar eroding in value and so this is the primary reason for diversification for buying gold and getting away from the u.s. dollar and what would they stay again presuming that they are intending to do this what would it do for chinese gray yeah we're really no impact on chinese growth the problem right now the chinese have a very tight control on the capital account there's no. we won't see the chinese

currency the remember the become a reserve currency any time soon it made it maybe decades away the fact is outside of china no one uses the chinese currency only the chinese use it so there are a long way away from from being a reserve currency now i can say what is the u.s. dollar what is the biggest rival it doesn't even have one of them i mean is there a feasible currency out that to take its place it's got a modest rival right now with the of course the euro about fifteen percent to twenty percent of our reserves are held in europe was given the the very acute structural economic problems you see now in the euro zone. i think the euro's future is very much in doubt and again we'll go back to china why why is china been buying gold why are they interested in making their own currency much more powerful much more internationalized because they don't have a whole lot of trust in the euro they don't have a whole lot of trust in the us dollar and which is why they're moving as. to make

their own currency more internationalized so when wilson thank you very much indeed for coming into the studio today i'm up to full today's edition of plenty capital from all business news monk analysis and its places and cities join me same place same time and next week see that good bye. oh. 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 realize everything you thought you knew you don't know i'm tom harvey welcome to the big picture.

previously when the western companies were operating there you know none of those profits of one of those social sector of the populations have never had a share in that country's natural wealth trade with china investment from china i do believe it must have played a policy to drill essential role in today's price of africa yes the chinese have benefit from that but this is a fair trade. led

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