happens in the last year that mark can tell you that last year its share of global trade was just over one percent and now we fast forward it's reached almost nine percent so what's happened to the euro in contrast last year it had almost eight percent now it's got just over six percent now this is coming at a time when china is changing things up a bet it's in a state of transition now we know that the state is loosening controls on exchange rates as well as boring costs as well so i want to get expert analysis so i'm going to speak to david quote he's from motley fool and just see david i want to know when the year i was first introduced it was supposed to rival the u.s. dollar as the global reserve we've now got the one overtaking the year i said you think that that dream is well and truly dead. what a wonderful question i think as far as the euro's turn so i mean the euro's

probably shot itself in the foot because the countries within the euro zone when they are dealing in international trade that perhaps you know weren't as strong in deciding that the rest of the world should use the euro as the base currency in other words where they want to buy goods from china they are quite happy to actually buy goods but it's the newer stalins so really i think i think the you know the euro the euro zone hasn't been as forceful as they could have been done so there may be you know the euro would have been more freely traded but at the moment i mean the euro still still quite freely traded in comparison to the yuan which is not as freely traded because there are still some countries in the world that might say if i want to do business with china i would much rather deal with them using either the u.s. dollar or some other kind of currency so in answer to your question what is going to happen to the euro that really depends on what the eurozone decides itself because they want to be more forceful or moment and david we know the whole reason we discuss money is. because it's all about power isn't it and what does this

transition mean in terms of power for china as we know they are in a transition period at the moment as an economy. that is a wonderful question and this is really the crux of the matter because at the moment china is sitting on around three and a half trillion u.s. dollars worth of foreign reserves now china doesn't really want to increase that amount to foreign reserves which is why it is trying to make the u.n. more tradeable in other words when you buy goods from china or china and say we're going to pack in chinese yuan so that we don't have to sort of keep on taking in all these foreign reserves now eventually china as you quite rightly say is going to move from being export led to becoming more consumer led in other words they will have to spend some of those foreign reserves in order to buy foreign goods but i suspect you know china did really doesn't want to run down its foreign reserves too much but they would much prefer to use the chinese yuan which you can control itself you can print as much chinese yuan as it wants to so if it wants to start

buying goods from the outside world it may may decide you know that they want to use the chinese yuan to buy that but in order to do that the chinese yuan has to be more freely traded and this is really the first step i mean which we we're seeing now that the chinese yuan has overtaken the euro in terms of trade finance the next step will of course you know be the chinese yuan being more freely traded around the world and that is also happening because i mean we have all these deals now between the people's bank of china and the bank of england and the european central bank and of course many banks out here in southeast asia yeah times are changing that they way it quoted that thank you ever so much for talking to us always appreciate you coming on the show david have a great dad. ukraine is still enjoying the biggest political crisis in nearly a decade as the fallout over not join the e.u. free trade zone continues meanwhile the economic state of the country faces collapse if the situation does not stabilize. when he craney and bond yields

soaring the price of insuring against a default on government debt. as it will say the threat of strikes which could further damage the already fragile economy so let's speak to david brunei from first national innovation cause i knew what i want to know ways how bad is ukraine's financial situation right now is the economy we heading for a d felt. well this situation is really is serious ukraine is running a current account deficit of eight percent of g.d.p. . and it's june twenty fourth thousand dollar bonds are paying nineteen percent interest and what that means is that the markets are expecting it again dissipating it evolved by ukraine so it is a very serious situation the ukrainian central bank. is almost

broke and doesn't have any money and won't be able to support the ukrainian currency going forward unless you train gets credit mediately why it's you kind of right to not join the legions with the e.u. that how has that economy benefited by choosing not to do that. the problem with the e.u. agreement was who were the strings all of the strings and conditions that were attached this is why the president did not sign the deal. there were conditions that the subsidies. subsidies stop for the consumption of gas in ukraine that would have been political suicide for the president and that will be sent to germany to one of the goals of the european union is to bring back. revolution and the at the current government

leave power that's why they couldn't sign a deal why do you think we're all seeing so many people on the street right now in ukraine protesting the protesters have allowed a blames they want the rule of law they want to see their country become a prosperous country they look longingly to the west and they they say why can't we be like that to some extent you're naive. the looking at europe through rose colored glasses is sick the european union is sick it's falling apart it's twenty five percent unemployment in spain i don't need to talk about greece i don't need to talk about cyprus the european union has serious financial problems that it cannot resolve the european union is not a panacea but what this really is katie it's a referendum on not not so much the association agreement with the e.u.

but a referendum on ukraine itself and the government people are not happy with their lives the economy is shrinking and stagnating and no matter who's an. economy is not doing well the people are not going to be happy that's why the on the streets they want to change thank you daniel thank you so much indeed for your time we really appreciate that the bric countries yes the famous acronym coined by the former goldman sachs economist jim i know well he's now created another group of imagine economy is at a set to take the global economy by storm the mint now the bric awaits knows where of course brazil russia india and china and then later joined by south africa the dream team to make it the brakes but embracing it is one of the countries have experienced disappointing growth and these countries now have some serious competition from mexico indonesia nigeria and yes the mint now i also

break experts by guilds if he thinks the meant is the new brick. i mean the bricks were a category that was created. by someone of the financial system because they had in common that they have high growth rates post breaks or the stock markets dynamism. but you can extend the category of admin it's just actually adding on another group that have a similar characteristic at this particular time but that doesn't mean that the bricks lost their. trajectory in the world economy although they have all been showing signs of some weakness. in recent months because the global situation is not good and the crisis in the global system is continuing to work itself out over many years and that affects everyone including the brits. let's get a cold and talk about the father this week so little and. small. could be.

going to house a dual screen with a traditional l.c.d. display alongside paper display on the system a to muslims can do device on the inside itself a little in russia and several other european countries israel prices around six hundred seventy five dollars in europe and six hundred dollars in russia which is why she saw it cheaper than competitors like i phone five in the summer galaxy s poll. shows a lot just employ russian bradway's has put a third of its employees about three hundred thousand on schultz and walking allies the head of them and. says that the part time show is necessary given the current economic climate the decline in writing all the ace. russia's central bank wants mossop declared bankruptcy is proceedings of the supreme court the regulator of both ma supply and slices two weeks ago seven bikes have had their licenses revoked

since this sum up when the central bank appointed i knew. all right let's get i have to show and tell my taste poised at the basis desk as always to tell us what about what you've been up to so i was just telling everybody about these small find out to us here in russia has been a real calmed down a lot of them getting out of business what does that mean for you. indeed i did i went fifty percent in spirit and fifty percent in gas prom and i'll tell you what this is good news for me from the spring side of things because there's more than a thousand banks in russia and of course the government kind of doing their clampdown means that the bigger banks v.b. and spirit they are guaranteeing that the assets of the smaller banks which are being shut down in fact i was part of one of those smaller banks and this is about all that my card you. know all of that as well but that means they're going to be going to the big banks which is done good for me in fact spirit bank is up one percent this week that did well for me however gazprom

down at a three percent. total one hundred fifty four dollars bringing my overall total to twelve thousand four hundred sixty one still up but i lost this week for the first time in a couple of weeks running so some good news and some bad yeah yeah yeah ok so you know this point is still up. so we need to really kick start this once again because bitcoin was a real when actually it was and is now you going to diversify now you can stick with the financials and i want to see the i'm going to stick with the financials i'm going to go one hundred percent all in because if for a couple reasons a with this movement towards the bigger banks that means there's going to be a push for spear banks that think that's going to be good for me plus if you remember everything kind of slows down and there's not much business happening in the new year so i'm hoping that staying with the financials will be a good decision for me as we push into the new year so that's what i'm going to do sensible show and we like it very much so i will sit out with all on financials and

we see how you get on next week mr tom s. and soon to be back next week as well live in. a b c even all the russian banks by olds what is the crisis in ukraine we're really caving in on that one and seeing how the situation progress is possible small surprises of course and i will indeed be back but see you as well have a fantastic we can enjoy the rest of you we can give us now. war is probably the most complex human activity. for. all of us are still locked up. in the phenomenon

of friendly fire probably extends back to the invention of gunpowder. kill a bunch of people in the jungle warfare on their premises are really us people. reading. this some of them shoots my brother in the leg not intentional because it is because it was ny times four in the morning even the best given the best soldiers. are going to make mistakes this is this whole idea of brotherhood and author and that and camaraderie and in this sense it was in this context that has absolutely no place. wealthy british style.

markets why not scandals. find out what's really happening to the global economy in the kinds of reports on. the media leave us so we leave that maybe. by the same motion suit your. play your part of the physical. issues that no one is asking with the guests that you deserve answers from it's all on politicking only on our t.v. . welcome back you're watching our theatre national i'm marina joshie now to iceland were some controversial ways of jumpstarting economy are being rolled out instead of trying to save the bankrupt banks the government let them go to the wall leadership then decided to reject a last deposit repayment scheme swayed by protesters who said this wouldn't be fair

instead every household in the country will have twenty four thousand euros written off their mortgage banking executives accused of causing the crisis in the first place are also being pursued by the state professor of economics rodney shakespeare believes that iceland is setting a remarkable example you must rely on your own national bank for your own uses for your own really calling me for the spreading and if you don't do that you'll be trapped into debt in the same way that what you got greece you've got iceland but you've got every country in the world is being tracked into increasing debt and all that happens is that they increase the levels of the debt and smash the populations down we need to revolt against this global financial system and in its own way iceland is setting a reasonable they will thank you. and r.t. who travel to the u.k.

and germany find out what people there think of iceland's recovery plan and here is what we heard. i think it's a good thing we used to have laws in germany where you could get subsidies as a home owner you know but that's a thing of the past this is ok if you didn't get this i think for individual people it would be good news but not for the country you never know where the money comes from for such gifts but it will be very great to you everyone could buy a house. sounds great yeah. but just to get rid of your debt was perfect because then obviously you can spend that money on something else because i think it'll be better for the country one for the economy. because the public that just goes up and i don't think the country can afford it he said he would help us families just stay with that code so that that sort of chunk of money that would make a difference will be. well considered controversial isis crisis breakaway plan is proving effective in helping people keep their.