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 bit 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 your 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 eurozone 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 the buy goods from china they're quite happy to actually buy goods but it's the newer stalins so really i think i think the euro the euro zone hasn't been as forceful as they could have paid they don't so there may be you know the euro would have been more freely traded but at the moment i mean the euro is 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 not 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. 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 china is saying we're going to pack in trying the u.n. 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 or 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 day. ukraine is still enjoying the biggest political crisis in nearly a decade as the fallout over not join me in the e.u. free trade zone continues meanwhile the economic state of the country faces collapse if the situation does not stabilize soon with ukrainian born yields soaring the price of insuring against a default on government. debt surging there's also the threat of strikes which

could further damage the already fragile economy so let's speak to david bruno from first national innovation brokers daniel what i want to know is how bad is ukraine's financial situation right now is the economy really heading for a default. well the situation really is serious ukraine is running a current account deficit of eight percent of g.d.p. . and its june twenty four thousand dollar bonds are paying nineteen percent interest and what that means is that the markets are expecting and anticipating a default 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 brain gets credits immediately why is she crying right to not join the legions with the bad and 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. that the subsidies stop for the consumption of gas in the ukraine that would have been political suicide for the president and that will be sent to germany the one of the goals of the european union is to bring back the revolution and to add the current government leave power that's why they couldn't sign a deal why do you think we're all seeing signs 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 they'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 in. the

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 a economy is at a set to take the can i built a quantum a by storm the mint now the break which you know is where of course brazil russia india and china and then later joined by south africa the dream team to make it the breaks but in recent is all 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 gills if he thinks the meant is the new brick. i mean the bricks were

a category that was created. by someone in 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 old 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 british. let's get a call and talk about the father this week's a little. small it's called the joseph you know how the dual screen with the traditional l.c.d.

display alongside electronic paper display on the system and so you. can do device on the bottom side itself a little in russia and several other european countries israel prices around six hundred seventy five dollars a year up to six hundred dollars in russia which is actually still it cheaper than competitors like i phone five in the summer galaxy s four. largest employer of russian broadway's has put a third of its employees about three hundred thousand on schultz and walking allies the head of the middle. name says that the part time show is necessary given the current economic climate on the decline in israel the ace. russia central bank wants masa bank declared by crops is proceedings at the supreme court the regulator revoked small supply and slices two weeks ago seven banks in russia have had their licenses revoked since this sum up when the central bank appointed i knew. all

right let's get i have shown thomas he's poised at the basis desk as always to tell us all about what you've been up to so i was just telling everybody about the small find out to us here in russia has been a real comp down on the stand as a lot of them are going 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 of russia and of course the government kind of doing their clamp down means that the bigger banks b two 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 is good for today. 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 that 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 weeks running so some good news and some bad yeah yeah yeah ok so you know this week he is still up. so we need to really kick start this once again because bitcoin was a real when after he was and is now you going to diversify now you can stick with the financials it was either i'm going to stick with the financials i'm going to go one hundred percent all in because of a couple reasons a with this movement towards the bigger banks that means there's going to be a push for spear banks i 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 has shown we like it very much so i will sit out with all on financials and we see how you get on next week with tom s. and soon to be back next week as well live in. a b c even all the russian banks

miles what is the crisis in ukraine really cape and i in that one and seeing how the situation progress is. not small surprises of course and i will indeed be back to see you as well have a fantastic weekend enjoy the rest of you we can give us now. ukraine is in a tough spot right now trying to figure out whether to join the e.u. or the arrangements custom union it would be nice if they would you know maybe allow the populace to vote for their future via referendum but sadly it looks like the politicians will be making the historic decision i can see why some people want to look west and some people want to look east but don't understand why so-called ukrainian nationalists want so desperately to join the e.u. first off any nationalist groups in the e.u.

are automatically demonised as right wing extremists and the politically correct west patriotism is pretty much a dirty word generally nationalist like their culture and the people who are part of it but if you look at migration trends within the e.u. we see that the slavic part of it is flooding western europe looking for work i have many relatives from the slavic part of the e.u. and almost all of them have to work abroad and might so nice to be able to work in europe but the reality is that ukrainians will probably be paid even less than bulgarians rumanians to clean toilets in london ukrainian nationalists don't have to like russia or join the customs union or join any bloc of countries but advocating a future for themselves the e.u. seems absolutely backwards at least to me but that's just my opinion. do you think that you as a representative of the. gazan government got the government to general could achieve that easing off live for the palestinian people. the way they

communicate through the way they present themselves to do was to communique we need we need respect from the kind of governments. this government which recollected it from the people actually. presented it from the palestinian. people themselves respect our charter says respect our what i would believe is our needs i would run. welcome back you're watching r t international i'm marina joshie iceland's alive and kicking the country's economy has rebounded after the recession which struck hard five years ago with the states treading its own path to financial well being

instead of trying to save its bankrupt banks the government led them go to the wall and the leadership then decided to reject a last deposit repayment scheme swayed by protesters so sad the plan was unfair instead every household in the country will now 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 viner economics rodney shakespeare believes that iceland is setting a remarkable example you must rely on your own national bank for your own use is for your own really calling me at 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 that and smashed.