and so you can see that we got into a situation where the central bank, the federal reserve, other centralanks, the bank of canada, had to pump a lot of money into the system to try to prevent it from collapsing. and so we're out now almost two years from the bottom of the crash, and we're in a situation where some prices are still falling and other prices are rising. and in fact we just did a recalculation of the consumer price index recently, and we said, "what does it look like if you take all the housing-related deflation out of the calculations?" and the inflation rate was running at about five percent a year. - not what we hear, though, on the news. - not what you hear, but if you look at the headline cpi, it's close to zero, and it has the federal reserve terrified that we're going to go into a debt deflation like japan has been in for 20 years, or like the whole world was in the 1930s. so it's a very complex thing, and it's very hard for people to get their mind around this deflation/inflation discussion. - yes, and we're maybe looking at the wrong things. we're, like, sticking a t

the central bank insists the economy will be up and running again soon. hey have been closed this week amid fears of a bank run it depositors gain access to their funds. the central bank government says it will reopen on sunday, although cash withdrawal will be limited and opening times will be restricted to just a few hours a day. transfer abroad will resume. we have some news from my home state. >> australians have emerged from their shelters to find that a the cyclone was not as bad as they had feared. there were no deaths or injuries. wind blew it up to 280 kilometers per hour, uprooting trees and cutting power lines. a devastated of the region's crops. australia is the world's third largest exporter of sugar. cities and towns across the united states are digging out after a massive snowstorm. large parts of the country. snow, sleet and is it more than one-third of the u.s. chicago is one of the hardest- hit cities with0 inches of snowfall. air travel is also a mess. most people are fed up with the winter weather and cannot wait for spring. >> the snow

we think that they will hike rates and the central bank is reluctant because of they kept telling flows concerns because oil prices are high and if they hike rates this may trigger more inflows into russia. but we think they will move gradually and expect only fifty basis points for the first quarter so it's either to hike by twenty five basis point or one buy buy fifty but it was probably the first option because central banks so far as increase the reserve requirement for max now how effective has that been oh well it's a first to have prayed so. taking no needs really it's really minor but it's a very strong signal and one hundred basis points in reserve requirements for foreign liabilities is a signal that the central bank is taking this seriously. so whether the markets now are first better over to be united states where markets pretty much flat you can see that barely changed with the tech driven mass that this is frightening actually a seven day winning streak for the dow jones right now that everyone is looking at corporate results and most companies reporting better than expect

we think that they will hike rates and the central bank is reluctant because of they kept telling flows concerns because oil prices are high and if they hike rates this may trigger more inflows into russia. but we think they will move gradually and expect only fifty basis points for the first quarter so it's either to hike by twenty five basis point one buy buy fifty but it was probably the first option because central banks so far as increase the reserve requirement for banks now how effective first step it oh well it's a first to have prayed so. taken alone it's really it's really minor but it's a very strong signal and one hundred basis points in reserve requirements for foreign liabilities is a signal that the central bank is taking this very seriously. second look at the markets now u.s. markets off lots to negative this is threatening to stop the dow's seven day winning streak there they are the figures the dow is down point one percent so is the nasdaq but coca-cola is up because it's showing their oppressive profits in the final quarter european stocks at the close several compa

welcome to business good to have you with us russia central bank has raised the benchmark refinancing rate eight percent from an all time low of seven point seven five percent for the first time since two thousand and eight the move is aimed at responding to accelerating consumer price increases and comes as russia's finance minister calls for banking offshore ease to meet inflation target of seven percent this year to discuss this we're joined by year's officer. back russia thanks for coming in so what's behind this decision well the main reason for this decision. a very high level of inflation in russia this is currently the main macroeconomic risk for the global economy and for the russian economy as well so the greater activism that we see on the anti inflationary front from the central bank is primarily motivated precisely by this desire to keep inflation close to levels that are targeted for this year which currently are significantly lower now compared to where the actual inflation rate is currently inflation is approaching ten percent and as you just already mentioned the targ

economic issues on tuesday prices rose nearly ten percent in january on an annualized basis the central bank has already said it's ready to impose new measures to draw cash out of the economy to prevent it from overheating this includes further raising bank reserve requirements and it appears the bank is less keen on raising rates but at its other you've ever seen your economist obesity capital says. the bank will have to make a move soon. we think that they will hike rates and the central bank is reluctant because of they kept telling flows concerns because oil prices are high and if they hike rates this may trigger more inflows into russia but we think they will move gradually and expect only fifty basis points for the first quarter so it's either to hide by twenty five basis points or one by by fifty but it was probably the first option because central bank so far has increased the reserve requirement for max now how effective first step it oh well it's a first to have credit so. taken alone it's really it's really minor but it's a very strong signal and one hundred basis points in reserv

the central bank is now under pressure to address fears of inflation. >>> world food prices are soaring to new highs. concerns are rising the poor could be severely hit, leading to more instability in developing nations. on thursday, the united nations food and agricultural organization said the global food price index hit a new record high of just over 230 in january. that against a reference value of 100 set for a three-year period through 2004. it's also up more than 3% from december. excluding meat, most items such as grains and sugar became more expensive. the organization blames poor harvests due to abnormal weather, including heavy rain in australia. it also cited more demand for food in emerging countries or economies such as china and india. experts are worried continued price increases as forecast by the u.n. body could cause political unrest across more developing countries. >>> federal reserve chairman bene bernanke dismissed criticism that u.s. policy is a factor. >> i think it's entirely unfair to attribute excess demand pressures in emerging markets to u.s. monetary polic

we think that they will hike rates and the central bank is reluctant because of they kept telling flows concerns because oil prices are high and if they hike rates this may trigger more inflows into russia but we think they will move gradually and expect only fifty basis points for the first quarter so it's either to hike by twenty five basis points or one by by fifty but most probably the first option because central banks so far has increased the reserve requirement for max now how effective first step it oh well it's a first to have prayed so. taken alone it's really it's really minor but it's a very strong signal and one hundred basis points in reserve requirements for foreign liabilities is a signal that the central bank is taking this seriously. part of the molecules close to the united states did not start trading. too negative and this is threatening to stop the dow's seven day winning streak european stocks ended lower with several companies coming on the pressure after reporting results shares of the drug makers some of the identies fell off to the company reported a plunging

we think that they will hike rates and the central bank is reluctant because of they kept telling flows concerns because oil prices are high and if they hike rates this may trigger more inflows into russia. but we think they will move gradually and expect only fifty basis points for the first quarter so it's either to hide by twenty five basis points or one by by fifty but was probably the first option because central banks so far as increase the reserve requirement for max now how effective has that been oh well it's a first to have prayed so. taken alone it's really it's really minor but it's a very strong signal and one hundred basis points in reserve requirements for foreign liabilities is a signal that the central bank is taking this seriously. russian shareholders of tea and deny they are in talks to sell the estates to anyone we hope friedman a partner in the consortium that owns half of russia's furred biggest oil producer says no negotiations are taking place the partners have objected strongly to b.p.'s proposed asses swap an arctic exploration do with russia's biggest oil pro

and the title of this speech is called "the anguish of central banking." and his point was there were so many things going on in the modern economy, so to speak, that made it, created a kind of inflationary momentum that could only be broken by policies that would be so draconian, they would not be acceptable politically or socially. so he kind of left in a feeling that central banks were caught up in helplessness. almost that strong. not just a budget deficit, but wage processes in particular, all the social programs just created a certain momentum that kept inflation going in way that would be very difficult to break. and so, basically, his conclusion was i wasn't going to break, and the federal reserve wasn't going to break it because the social costs would be too great. >> it would be anguish at central banking. yes. >> another persuasive argument about the '70s is that economists missed the productivity effects of the two oil shocks. in realtime do you see evidence that the federal redefer as you read the minutes and the triplets were missing -- trans

the european central bank expressed the view that longer- term price pressures remain contained despite rising energy commodities cost per president jean-claude trichet repeated the very close monitoring of inflation as warranted. i am particular grateful that chairman bernanke agreed to be our first luncheon serious guest of my term. please give a warm national press club welcome to chairman ben bernanke. [applause] >> thank you. thanks, and good afternoon. >> i am pleased to be here and to have a conversation with journalists who write about economic policy from our nation's capital. your job is not easy but it is essential. virtually every american is affected by developments in economics and economic policy. contemporary economic issues are highly complex and a few non- specialists have the time or the background to master these issues on their on. the public has to rely on built- in reporting, clear thinking, and lucid writing of reporters determined to go beyond doing bumper stickers and sound bites to help people understand what they need to know to make a decision about in their

so he kind of left in a feeling that central banks were caught up in helplessness. almost that strong. not just the budget deficits, but wage processes in particular, all the social programs just created a certain momentum that kept inflation going in a way that would be very difficult to break. and so, basically, his conclusion was i wasn't going to break -- and the federal reserve wasn't going to break it because the social costs would be too great. >> it would be anguish. >> anguish of central banking, yes. >> another persuasive argument about the '70s is that economists missed the productivity effects of the two oil shocks. in real time do you see evidence that the fed reserve as you read the minutes and the transcripts were missing or misestimating the economy's potential to produce and what role did that play? >> the big error and one which took a while to correct was to look at the oil price increase as inflation. it was a relative price change. and the short-term focus of fed policy made them think ha they had to do -- that they had to do something about it.

we didn't have a central bank then until we got the federal reserve. and you need a central bank. a central bank really controls money, and sees to it that the money is good and worth its value. okay? >> i know he is not one of your biggies but i'm from new york so i might be biased. you're from new york as well? [laughter] >> millard fillmore as you've described is an important ingredient in this compromise, and yet you also don't seem to think much of them. neither do many historians i think because of his signing of the fugitive slave law. to what cute a treatment the disparity between henry clay being a hero of the compromise were as millard fillmore is almost disparaged for it because of his reputation and his signing of the fugitive slave law? >> i'm not sure what you're asking. >> millard fillmore is almost attacked for implementing henry clay's compromise. just because they focused on the one aspect of the fugitive slave law. and so he was like, you know, you are praising henry clay so much, and rightly so, but that millard fillmore does not get much credit for the comprom

restore stability to the eurozone. >> we have not given up our ambitions in europe at the european central bankwe want to ensure the emphasis on stability that is characterized germany for decades continues. that was also a factor. >> for five years, he has served as chancellor merkel's top economic aide, a job that kept him out of the public eye. but now it is his turn to be in the spotlight. >> lets the to the market. european shares locked in gains for e fourth tding session in a row on wednesday. conrad sent us this summary of the midweek trading session in frankfurt. >> despite the strong earnings report, the shares of declined. some investors are not happy that daimler invest more for research and development. s in from daimler, diebolt has prevailed. sanofi-aventis buys genzyme. clarion takes over a german chemical company. >> that was from a frankfurt, where we can stay for a closer look at the thee numbers and the blue-chip dax pinup finished 0.2% higher, 7414. the euro stoxx 50 locking in gains of more than 1%, finishing at 3061. in new york, the dow jones also enjoying healthy gains,

russian banks have seen the volume of household deposits grow by a third last year as according to central bank data the total amount of all deposits in russian banks has reached three hundred thirty four billion dollars despite global deposit interest rates in some banks being lower than last year's inflation rate of eight point eight percent most russians prefer to save money and then national currency however the central bank sees the positive growth as negative because it means people are not spending in tulsa. that's all for this hour we're back with more in about fifteen minutes from now. hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers. observe nature and discover its buzy. communicate with the wyoming and learn to. test yourself and become free. to. see what nature can give you the. download the official antti application to your i phone or i pod touch from the i choose ops to. watch on t.v. life on the go. it's video on demand ati's live broadcasts and already says feeds now in the palm of your. questions on the do

banks have seen the volume of household deposits grow by a third last year that's according to central bank data the total amount of all the positive vibes from banks as we get three hundred thirty four billion dollars over the ruble deposit interest rate in some banks are lower than last year's inflation rate of eight point eight percent most russians prefer to save money in their national currency however the central bank sees the deposit growth as negative people are certainly not spending the money. and that's all for now but you can always find most always just log on to our website. he says nature and discovery. news. communicate with the wyoming. test yourself and become free to. see what nature can give you the. wealthy british scientists some time to. market why not come to. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines tune into kinds a report on our. download the official altie application to go on the phone on called touch from the top story. which all teachers life on the go. see video on de

of australia and a central bank in canada saying well we have to keep interest rates low in order to mitigate the catastrophe of the ecology which of course gives companies who are committing that catastrophe an incentive to commit more catastrophe because the price of funds are artificially kept low so the central bank should be actually defending the right of the ecology to exist to the extent that it can support human life but instead it's been co-opted by the corporations who are leaning on it to keep rates so low as to make their model of anthropomorphic global warming and ecological whole the cost of economic catastrophe viable for the next three months because they only look at the next three months they'll all be wiped out wiped out the populations are all wiped out including the c.e.o.'s who authorized this in the banks now you have half of queensland's sugarcane crop suffer damage so in the last week it's like loan yeah see stright queensland the second most expensive disaster cycling to ever hit queensland now strongly is the third largest export of sugar cane and ninet

we have a central bank that is tightening. i think japan is probably likely to outperform china in the next 12 month. >> other predictions for 2011? i know you like consumer stocks. >> i do like consumer stocks. consumer stocks are very much tied to employment report that just came out and things like that. that's going to be a big driver. but if you want the risk for consumer stocks, it's clearly gasoline prices. and do gasoline prices start taking a disproportionate amount of salary and wages. that's something we're worried about. >> good to have you on the program. rich bernstein joining us here on "the wall street journal report." >>> up next on the program, my conversation with philanthropists bill and melinda gates. what does the second richest man on the planet have planned for world health care? >>> and taking a spin into luxury. a high-net worth consumers back and shopping for expensive new wheels? as we take a break, take a look at how the stock market ened the week. back in a moment. [ male announcer ] montgomery an

the central bank insists the economy will be up and running again soon. they have been closed this week amid fears of a bank run it depositors gain access to their funds. the central bank government says it will reopen on sunday, although cash withdrawal will be limited and opening times will be restricted to just a few hours a day. transfer abroad will resume. we have some news from my home state. >> australians have emerged from their shelters to find that a the cyclone was not as bad as they had feared. there were no deaths or injuries. wind blew it up to 280 kilometers per hour, uprooting trees and cutting power lines. a devastated of the region's crops. australia is the world's third largest exporter of sugar. cities and towns across the united states are digging out after a massive snowstorm. large parts of the country. snow, sleet and is it more than one-third of the u.s. chicago is one of the hardest- hit cities with 20 inches of snowfall. air travel is also a mess. most people are fed up with the winter weather and cannot wait for spring. >> the s

banks do 0 money to other banks, including the european central banks. we have to restructure the irish banking system. we have to look at money going into the banks and what it is we want to get out of the banks. there are a number of objectives. we have to have won the restored to small and medium-sized businesses so they can create jobs. there has to be a minimum amount of lending. there has to be a strategic investment arm in irish banking. there has been the suggestion of -- along the icc which would invest into the economy and would provide the money for infrastructure. there has to be a deal. i think this is important. with families and households. there are people who were stretched out and paying their mortgages. one of the understandings we have to have with the banking system is that no family will lose their home during this crisis. whatever happens, repossessions would not be proceeded with when people are making a genuine effort to repay their markets. over time, we restructure the banks. there are new things we need to do with the banks. i

central bank has been trying to hold down interest rates. that's because of concern that an increase could trigger a rapid influx of capital into the country and a later outflow could deal a blow to the economy. bank indonesia last raised the key rate in october 2008. >>> this week we saw positive trends in economic data as well as gains in the stock market. but how stable is the global economy. our reporter spoke with the professor at the university and a foormer -- former advice finance minister to get his outlook. >> recent economic data have been pointing to the possibility data may be finding stable ground. this week we kicked off with positive production figures in japan followed by positive manufacturing data from the united states. do you think we are, indeed, headed toward a stable global economic recovery? >> well, the recovery is going on. i think easy monetary policy and a very aggressive fiscal policies on most of the developed countries has contributed to this recovery. given the status of their fiscal deficit in every part of

analysts say the chinese central bank will be forced to hike interest rates again, as beijing tries to bring in growth. this could prove difficult for the german export sector. the car industry is only one of many that of their current upswing to demand in china. >> the chinese rate hike has not caused any serious damage on european stock markets which closed on tuesday at less last seen in late 2008. we have this report from the frankfurt stock exchange. >>7 it could not stop the rally of redacts -- of dax-listed shares. lower investments in china. car shares of bond -- been among the major gainers, mainly driven by the fact that japanese competitor toyota raised the forecast for the rest of the year, so they are pretty sure that the car business, especially in germany, stays on track. the results of toyota have been rather poor. >> he is in frankfurt. let's take a look at some closing market numbers now. and frankfurt, the blue-chip dax closed higher, its highest close since january 2008. the euro stoxx 50 closed at 3042. in new york, the dow industrials are currently going up, and t

central bank has been trying to hold down interest rates. that's because of concern that an increase could trigger a rapid influx of capital into the country and a later outflow could deal a blow to the economy. bank indonesia last raised the key rate in october 2008. >>> this week we saw positive trends in economic data as well as gains in the stock market. buhow able is the global economy. our port spoke with the professor at the university and a foormer -- former advice finance minister to get his outlook. >> recent economic data have been pointing to the possibility data may be finding stable ground. this week we kicked off with positive production figures in japan follow by positive manufacturing data from the united states. do you think we are, indeed, headed toward a stable global economic recovery? >> well, the recovery is going on. i think easy monetary policy and a very aggressive fiscal policies on most of the developed countries has contributed to this recovery. given the status of their fiscal deficit in every part of the develo

the central bank has repeatedly adopted tight financial measures, including several increases in its reserve ratio for domestic banks but the measures have not helped to prevent the consumer price index from rising. >>> the world's major cell phone makers are standardizininining chargers to help consumers and reduce waste. they made the announcement tuesday. the consumers will be able to use a single charger for all new cell phones, regardless of the maker. >> translator: it will be beneficial for european consumers. we hope this spreads around the world. >> the participating firms include the biggest cell phone manufacturer nokia apple, south korea's samsung electronics. the involvement of key players in the industry may allow new specifications to emerge as a global standard. >>> in japan corporate failures increased the first time since january. the number of bankruptcies totalled 976. the figure was up 2.8% from a year ago. bankruptcies of restaurants and retail shops rose 23% year on year, while an increase of 37.9 was registered or 37.9% was registered in the real estate busines

indonesia's central bank raised its benchmark interest rate by 25 basis points to 6.75% on friday. it's the first rate hike by bank indonesia since october 2008. it is the most recent of a number of asian countries that have raised interest rates to try and curb inflation. india, china, south korea and others have taken similar measures. indonesia's annual inflation in january hit a 21-month high of 7.02%. the rise is attributed in large part to soaring food prices. >>> australia's sugarcane and banana industries were battered by one of the strongest storms to ever hit the continent. cyclone yasi made landfall in the northeastern state of queensland early thursday with winds gusting close to 280 kilometers an hour. early estimates put the loss to the country's sugarcane industry at around $500 million. australia is the world's third largest sugar exporter and 95% of domestic sugar production takes place in queensland. concerns are mounting over price increases and shortages. the cyclone is just the latest setback for the region. heavy rains and flooding that began late last year hav

we'll hear from the governor of due nearby fra's central bank -- of tunisia's central bank. the carnegie endowment for international peace hosts this event, live coverage at 3:30 people eastern. the congressional budget office projects a record budget deficit of $1.5 trillion this year. next a discussion with the co-chair os they have debt commission, erskine bowles and alan simpson. the national center for policy analysis hosted this one-hour event in dallas. >> good afternoon. >> good afternoon, i want to thank you for coming and braving the weather to be here today. welcome to the hatton w. summers in distinguished lecture series. one of the board members is here today, we want to make sure and note that her mother, dorothy, wife of former summers in board chairman and -- sumners board chairman is also here. thank you for coming. we appreciate that. also seated here up front is the mayor of the great city of dallas. tom leppert. other distinguished guests today, several students who are recipients of sumners foundation zhrarships, they're scattered in through here. i thin

the central bank expects the u.s. economy to grow as much as 3.9% this year. just a few months ago fed policymakers were forecasting 3.6%. >> susie: tom, the new forecast was part of minutes released today from the fed's january policy meeting. but there were no significant changes to the fed's forecast on jobs or on inflation. >> tom: nevertheless, the government's measure of wholesale inflation rose in january. the so-called producer price index jumped 0.8%. that's the seventh straight monthly increase. so do we have an inflation problem? suzanne pratt reports. >> reporter: ask most wall street economists if the u.s. has an inflation problem and the answer is pretty much no. ask that same question of americans filling up their gas tanks or buying groceries and you get a much different take. >> like cereals, for instance. it's a joke. i used to buy cereal. it's just, everything it going through the roof. >> the prices are ridiculous. i mean like orange juice, milk. >> reporter: the disconnect between main street and wall street is simple. consumers pay most a

bernanke said that the central bank expects the economy to improve this year and inflation to remain low, despite the jump in commodity prices. >> as this report tonight shows, the fed chairman spent much of today's qan, session talking about the long list of challenges facing the economy. >> reporter: in a rare appearance before journalists at the national press club, the federal reserve chairman defended his government bond- buying program known as quantitative easing. bernanke said the unorthodox policy is working to boost the economy, even though unemployment and inflation both remain too low for comfort. the fed chairman also pushed back against critics who say the central bank is partly responsible for record-setting food prices around the world. those critics say the fed's low interest rate, easy money policies are weakening the dollar, which exports inflation. but bernanke said fast growth in emerging markets is causing prices to rise, and if those countries don't like that, they can adjust their economic policies and exchange rates. he dismissed any suggestions the fed is at

now, we have to work with european central bank and the european commission in terms of getting the banks right. that does mean bringing confidence back into the banks and the stress test spoken about earlier is underway of the we've had a number of stress tests already by the regulator and the central bank. the key is to restore order into the banks. there will have to be recapitalizeation to get their reserves up to the levels recommended by the european central bank to get market confidence back in them. that's the situation ultimately that the banks are currently in. >> how would you pay off that $ -- 145 billion? how would you even envision paying that off? >> >> it's an absolutely phenomenal amount of debt. in respect of the banking system i would close down anglo irish and irish nationwide before the end of the year. i would see bank of ireland having the opportunity to trade as it always dfment i think it's going to be necessary to sell a.i.b. there are those tho -- who want to invest in it and have it as a working bank here. i see it as a future with outside investments. there sa

central bank last november. the chinese office says illegal hot money inflows behind the country's economy overheating and seen in higher real estate and goods prices. the office says there are cases where money that's more than the actual value of chinese exports was sent from abroad. also some illegal money comes in as fake investments. >>> the eu given the ahead to a free trade agreement with south korea. on thursday, the european parliament approved the deal with majority support. the court will take effect in july this year. the eu and south korea had signed the agreement back in october 2010. the trade deal calls for the gradual elimination of five years of almost all tariffs on industrial and farm products between the eu and south korea. the current tariffs up to 14% on electrical appliances reduced to zero. products include autos and televisions. the approval will make south korean products more competitive. this is raising concerns among japanese companies that they may fall behind south korean firms in

prime minister nick clegg and greek minister papandreou joined the presidents of the european central bank and others on a panel to discuss europe's economic future. the panelists focused on the strength of the euro, transparency and governance and the role of the european central bank. this one-hour panel was hosted by the world economic forum and davos switzerland. >> good afternoon ladies and gentlemen. it is a great pleasure for me to be chairing the session, not just as editor of the national times but also as a former brussels correspondent. i spent six years watching the euro created in the 1990s and now we have 10 years on. some very severe challenges for europe and we have an expert panel, a panel with different perspectives from the political to the central bank, to the private sector. i think we are going we are going to have a very interesting discussion this afternoon. now the format is that each of the speakers will speak briefly. i will then ask if you very gentle questions, and then i will open it up for the floor for questions. we can have an interactive discussion. so wit

basically for the first time in many many years central banks have been buyers of gold in two thousand and ten so you know it's really all about the marginal buyer and it's right now what we have is gold production is more or less flat or declining it has been declining for the past fifteen years. and so it's really a question of how many people are willing to hold their savings in u.s. treasuries for example or another a fixed income instruments or they want to hold an absolute store of wealth and buy gold so it's really hard to put a price target on it but i can tell you that it's very unlikely it's going to go down more than go. take a look at the markets european stock markets are trading make this hour the footsies down point four percent on the dax getting nearly a quarter to make. up four point four percent of the netherlands fourth quarter results also trading higher group an extraordinary point one point nine percent and one a half percent respectively after each with results. here in russia the markets are trading them back this hour the r.t.s. has gained half a percent while

long do you think they can resist raising them well it's a question or central bank you know my personal opinion is that single bank or what the economists say stand behind the curve of you know what's reacts to passively to grow inflation risks while over estimated three six two can only grow with you see in russia. and finally the oil prices have surpassed the hundred dollar mark and we're headed towards another in your opinion are we headed towards another potential bubble well if you speak about russian markets already economy has getting quite store momentum and the parent leo prices about one hundred dollars per barrel will be stimulative photographic so ration before i expect most of surprises from a good moment for months of the russian economy of course and second property is fear and indeed we may see ourselves in the situation often of a bubble or overheated and book on the me and this is a novel and novel reason to concentrate on inflation risks more than on on the globe this year well unfortunately that's all we have time for thank you very much for joining us out zander tha

being a financial center is there enough competition in the banking sector well i think that the central bank has worked very hard to establish a little bit equal x. liquidity and we obviously know that's very different right and it's their bank and everybody else and you know well it will prosper because different rates i think are for us to stuff them but the. you name it. even with them but how many how many banks or how wide variety of about of instruments which you can have when we look at retirement and we look at these kind of things here i mean we still only a small number of people actually think that's exactly the point it's not the number of banks you have you have countries an advantage you're going to work in right that's the point the point is there's really underdeveloped system or for saving completely completely agree with you here is there is life insurance mutual funds things like that as they develop as the government actually works courage ensure that people have trust in those things and fully financial system itself will be. it was that started to do and become truly pr

for the central bank the tradeoff is really they need to they need some appreciation to curb inflation by the same time. they can't allow it to thaw us because otherwise they will trigger kept telling flows and it will make the problem of fighting flesh and even more difficult so we're seeing the ruble against the dollar at twenty nine thirty by the year end which is not far from from where we are no credit much stronger against the basket. so we in total for this year we're seeing just we see seven percent who appreciate the bust. at buying at this hour swedish furniture giant i kid has its top selling stores worldwide in russia courting to the company's chief in this country still the aggies investment plans this year for russia focused on preservation robin expansion and investment loans are mainly investing in what we hope. will be refreshing our centers. this is mainly was the story we call it in shape is new so we're going to look at the houses that we have make sure that there are up to date and the same for the commercials of what we do this year i think we're talking about fif

but more of that coming up in just a moment but first to other stories russia central bank has raised the benchmark refinancing rate to eight percent from an all time low of seven point seven seven five percent for the first time since two thousand and eight this comes as russia's finance minister calls for the banking authorities to meet the inflation target of seven percent this year he was largely symbolic chief economist from go to back russia explains the main reason for the. this is currently the main macroeconomic risk for the global economy and for the russian economy as well so the greater activism that we see on the anti inflationary front from the central bank is primarily motivated precisely by this desire to keep inflation close to levels that are targeted for this year which currently are significantly lower now compared to where the actual inflation rate is. one of the new card russia we spend up to seven billion dollars on electronic card system that is aimed at the still attaining payments for government services ranging from public transport to pensions recordings to

the russian central bank says it's ready to raise bank reserve requirements to draw cash out of the economy and prevent it from overheating russia is currently the only major emerging market that does not have capital controls that is rules on how much money can come here that leaves monetary policy as the control of the central banks so well to fight inflation but raising rates courage is hot money to come to the country to take advantage of the strong returns something the government is keen to avoid. russia's increasing ruble bond sales the. villages seeking to capitalize on investors demand before high interest rates make it more expensive to finance the budget finance ministry plans to debt securities for an equivalent of around two billion dollars. mergers and acquisitions rose by a third in russia last year all the activity still hasn't returned to pre-crisis levels david kranz fields a partner at corporate law firm c.m.s. russia says he expects the strong growth to continue in two thousand and eleven. we're expecting there to be more energy in the market than there has been it's cer