want to claim their gold at any one time now we see many countries trying to maneuver away from the us dollar is the main reserve currency and we see many central banks increasing their own gold reserves and he seems after all these years the world decided they put too much power in this one building. be back i was more news in around fifteen minutes time now but before that we have made since business news in venture capital k.c. to bring something breaks loose.

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good speech. will. be a. good. the little. fellow that welcome to the two capital with me who will be this week china has been

putting the buck into gold but is that all about saudi investments or always witnessing the transformation of the global financial system as we know its analysis on that one plus if britain is ready for the showgrounds revolution and will weigh out the pros and the columns call for you to come as well as checking in with our in-house investor head shoulder told us to find out what he's been working on the terms of the russian stocks and how his ten thousand u.s. dollars it is pulled a lot more to come but first of all that sort of the euro zone 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 has as a whole has grown no point three percent in the second quarter of this year often during 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 hi steve 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 attraction on the on the growth perspective but also must say that i'm very skeptical about the ability to maintain this momentum as we 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 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 that 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 the 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 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 ok sustain your is that you know out of the danger zone yet then. no news is good news in terms of positive growth but overall we need to see the structural elements is imbalances being 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's seen jacobson from sex a bank. and a global shift is happening china is set to take over from the us in the come the biggest consumer of oil there and i one of the main reasons for this shift is the us is becoming less reliant on foreign oil because the domestic supply has been revolutionised by shale gas going to show gas one place where fracking has bought

a huge debate is the u.k. now on the pro fracking team is the british prime minister david cameron who thinks developments of the shell gas will create much needed jobs an estimated seventy four thousand in family here's some of the other benefits mr cameron is claiming is well. simple are immense lists of these in 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 xstrata that want to have and so the process of fracking involves drilling a hole deep into the dense 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 that escape it bubbles out and is captured and brings it all the way to the surface and then and then its point town now i asked chris we senior partner with advisory

whether fracking is the way forward for britain now is to what it back to have an overall economy of course is very much in the question if the u.k. can develop the resourced standards to optimist or notes. no question about it with considerably your energy basically energy cost to destry 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. i'm showing decent girls this year so you know you could expect their government is looking for ways that it can also state 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 all the way

that russia's role set about to get companies traded oil. as a by john oil and gas still as a prize on is the biggest oil exporter in the former soviet union to russia because it stopped. russian billionaire and metals magnate i gotta pass a city montenegro for one billion dollars i've a factory closing its. pay pal is launching ruble transactions starting up from september the russian ruble will become the payment systems twenty six. check in with our in-house invest a hair of thomas to find out how he's been getting on with the russian stocks so 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 think 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 where it's going down that's bad right so bad ok so i decided i was going to like have some faith in there pasco because you know he had this idea to go to the east not a good thing. i took a bad nosedive it went down i'm getting out getting out getting else down four point seven two percent and still falling i'm just going to get out of the medals 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 if 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 energy the gas problem that's what you are 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 sadly she got a bit of direction all right showing thomas a fully clothed show in thomas just i will see you next week 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 raise 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 go visit 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 dots william wilson from business schools to tell me presuming that china is is doing this on purpose this is why it's buying up all the gold is this the right decision is this the right way for what we do which i have 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 they saw 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 growth yeah well 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 may be decades away the fact is outside of china no one uses the chinese currency and 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 but 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 the 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 which is why they're moving as fast as they can to make their own currency more internationalized so will you listen thank you very much indeed for coming into the studio today i'm not fit for today's edition of painted capital from obeys this nice month can i.