central banks. many have lower their interest rates even further to prevent their currencies from rising in value. the euro, however, is going from strength-to-strength. >> the european central bank is in a quandary. on the one hand, it favors a stable euro. on the other hand, politicians and business leaders are calling for a weaker regulaeuro to kickt the economy and make exports cheaper abroad. they wanted ecb to amulets central banks in japan and the u.s. and let the common currency weaken. the strong euro is hurting the eurozone's export-based economy. but the ecb is not impressed. >> i think that exchange rates should reflect economic fundamentals and disorderly movements. they have never supplications for the economy. >> last year alone, the euro climbed 10% alone against the u.s. dollar. >> let's assume the euro continues to surge and eventually reaches $1.50 or even $1.60. then they will have to change. they will have to print more money to keep the euro from going through the where found choking -- from going through the roof and choking exports. >> inflation is still the central bank's biggest fear. >> they ecb decision to leave interest rates on hold has

central banks. many have lower their interest rates even further to prevent their currencies from rising in value. the euro, however, is going from strength-to-strength. >> the european central bank is in a quandary. on the one hand, it favors a stable euro. on the other hand, politicians and business leaders are calling for a weaker regulaeuro to kickt the economy and make exports cheaper abroad. they wanted ecb to amulets central banks in japan and the u.s. and let the common currency weaken. the strong euro is hurting the eurozone's export-based economy. but the ecb is not impressed. >> i think that exchange rates should reflect economic fundamentals and disorderly movements. they have never supplications for the economy. >> last year alone, the euro climbed 10% alone against the u.s. dollar. >> let's assume the euro continues to surge and eventually reaches $1.50 or even $1.60. then they will have to change. they will have to print more money to keep the euro from going through the where found choking -- from going through the roof and choking exports. >> inflation is still the central bank's biggest fear. >> they ecb decision to leave interest rates on hold has

of the finance ministry, jean-claude juncker, who is the prime minister of luxembourg and european central bank minister trichet met with wen jiabao to address the issues. after the meeting juncker told reporters that european financial leaders still think the you'uan is undervalued and y have urged china to revalue its currency. wen reiterated china will allow more flexibility of the yuan. meanwhile, european central bank president trichet said it's important that china's policy toward currency reform is confirmed. he expressed his intention to pay close attention to china's efforts. >>> and now let's turn to catherine. >> thanks very much, shery. >>> and in other news, in thailand an explosion at an apartment near bangkok has killed at least three people and injured nine others. thai police say the power blast occurred in nonthaburi province tuesday evening. damaging a five-story building. they suspect it was caused by explosives. early in the day, the thai government decided to extend emergency rule in the province, bangkok and two other provinces through early january. sporadic bombings hav

. >> jeff: european central bank president jean claude trichet says the underlying economic recovery is in place in his region. but in a speech to the new york economic club, he admitted there's more work to be done. so, is now a good time for investors to put more money into the region? erika miller asked the pros. >> reporter: with images like these, it's no wonder many americans are wary of investing in europe. in recent weeks, workers have been striking in france, greece, spain, belgium, portugal, poland, and other countries. the issue-- their governments' austerity measures. at the new york economic club today, the president of the european central bank, jean- claude trichet, warned growth in the region will slow in the second half. >> we have to remain very cautious, very prudent, and continue to do the hard work, particularly the hard work of structural reforms, to elevate our growth potential. >> reporter: optimism about reform is driving gains in exchange traded funds that invest in european stocks. the dow jones euro stoxx 50-- the euro zone's blue chip index- - has risen 1

analysts expect the european central bank to raise their interest rate slightly if inflation pressures increase. that could bolster the euro and to make european goods more expensive. currency issues will be high on the agenda at the annual meeting of the imf and the world bank in washington this weekend. >> earlier, we spoke with our correspondent in washington. with the warning that currencies could be used as a policy weapon, i asked what was the actual worry. >> they are worried that what is already called a currency war could hurt the global economy because all of the economic interests -- tools that you use to keep your currency down such as protective tariffs, all this might be good in the short term but aid usually hurts the global economy in the long term. this means that it will also hurt the national economy and a long term. >> a lot of europeans are accusing the u.s. of keeping the dollar low so that they can sell more exports. there is an initiative to be balanced the currency, who will launch that initiative? -- there is and initiatives to balance the currency. >> midterm

. >>> the european central bank has decided to leave its benchmark interest rate unchanged at a record low 1% for the 17th straight month. the bank made the decision for the 16-nation euro-zone during a board meeting in frankfurt, germany, on thursday. the ecb apparently hopes the move will prop up the region's economy amid lingering concerns over the prospects for a global recovery. the bank of england also decided on thursday to hold its own rates steady at 0.5%. on tuesday, the bank of japan decided to reinstate a virtual 0% interest rate policy. the u.s. federal reserve is also likely to take additional monetary-easing measures next month. >>> japanese prime minister naoto kan says his government will continue to watch the foreign exchange markets and take action, if necessary, to prevent the yen from rising. an take action, if necessary, to prevent the yen from rising. at a lower house session on thursday, opposition leaders criticized the government for how it's handled the yen's appreciation. >> translator: why did the government wait until the dollar fell to 82 yen before it in

want a successful single currency area you need first would have a central bank that can decide how much of currency to print in the european central bank hasn't quite reach that point yet it's making progress towards that the germans are a little bit hesitant about that and you also need quite big transfer payments around the from the richer and stronger parts to the poorer parts so that the poorer parts can survive with a currency level that doesn't suit them and there are big enough transfers in the eurozone at the moment to make it work so it also adds to the strains for greece and portugal and so forth and let's talk a bit about social problems we've seen a big demonstrations last week across across the usa do you think that when all star city measures are announced here in the u.k. as they inevitably will we will see similar demonstrations here. well i hope we won't have big demonstrations the united kingdom i think the media and political presentation of our public spending is a bit bizarre. i made a mistake reading the figures which no one else seems to bother to do and what the coalition government is proposing. is

the european central bank has stopped buying bonds to stabilize the market. on tuesday, eu finance ministers took an important step to make sure another debt crisis does not happen. we have this report from their summit in luxembourg. >> german and french finance ministers were visibly relieved after the talks. a compromise between the countries paved the way for tuesday's deal. in the future, a two-thirds majority vote by e.u. government, rather than a european commission decision, will determine when disciplinary decisions will be -- when disciplinary measures will be taken against countries that breach deficit limits. there is an argument that germany and france are going against the interest of other member states. >> we could have reached a little bit further, but we have made such progress is good. to me it is surprisingly did not get 100% fiscal discipline from germany. >> germany explained why. >> without a german-french compromise, which would not have reached an agreement yesterday. would that be better? we would still have the same stability pact.

they're currently building a new home for the european central bank in frankfurt. with a construction cost of 500 mmillion euros, the project is the largest ever for coop himmelblau. prix can't pinpoint the company's recipe for success -- but the firm may well have thrived by sticking to its original ambitions. >> first, to create identifiable, noticeable, special buildings, recognizable in the city like bones in meat. we develop new strategies to arrive at a new interpretation of public space, and all of our buildings use 30% less energy than the norm requires. >> when prix and partner helmut swiczinsky started out in 1968, they sought to transform the city with their revolutionary aesthetic. and they took their belief -- that architecture should be inflammatory -- literally. they incorporated their leitmotiv, the clouds, into their architectural design. >> that was our first project. a cloud. an inflatable shell in which moveable platforms and diverse spatial situations can be produced. the whole thing can be packed into a container and transported by truck where

. >> let's talk first about our european friends because the european central bank makes its decision in just a half an hour 's time. you have germany's soaring, and at the back and you have ireland, greece, and spain. that is a tough one. >> it is. germany is doing very well indeed. manufacturing doing up, exports are doing well. the club med countries are reliereally feeling the pain. thank god we're not down in southern europe. it is a lot worse their print ironically, the ecb is making -- it is a lot worse there. >> we saw japan making its move earlier this week. many people believe the bank of japan was the first, and we will see other central banks make more measures, more cheap money. the west the fed is expected to make a decision possibly tomorrow. do you think we will see more federal bank's push the money into the market corrects >> i do. with the u.s. said, it is the case of when, not if. the bank of england's meeting comes a day after that. if you want to get more bang for your but, in the case of the uk, it is when, not if. i think we will see a lot more of the stimulus

because they were fully rescued so that's to me is a deal that is not quite equitable the european central bank or recently said that countries leaving the euro same would essentially be committing political and economic suicide what's your no not at all i mean it's of course very difficult to leave because you would have to do a lot of administrative measures you would have to prepare it very well and of course international capital may be shocked for a moment but in the end was the right supporting measures it would need some preparation it would need careful planning it would need careful execution but of course you could return the greek to the drachma and you could support it you still could support it with credits i mean the european union could step in with credit for a traditionally period but we just would not underwrite the euro we would underwrite the greek economy as a sovereign but integrated nation are you a fan of the choice mark for the torch marks sake no i'm a fan of the deutsche mark because it was a good currency in the bundesbank was a good institution and i think the rules

in all these other countries it just isn't going to work what's the solution that recently european central bank has said that countries opting out of the year is a would be committing economic and political suicide wouldn't be tantamount to suicide but they face a very hard choice because staying in they're going to have the most desperate problems getting out of the first to admit they're going to have desperate problems it's a choice between two evils and difficult me to say which is the greater evil but in a sense they don't they may not have a choice because the bond markets may decide for them. and i personally think that a country like greece would go through a period of desperate pain if they left they would certainly have to default or it's called as much polite of the default but they have to do something like that but basically people let money greece would have to take a haircut and probably quite a substantial haircut but that's roughly what happened to argentina or whatever it was the nine hundred ninety. and it's terrible at the time but the country comes through and actually it's

he started this thing around gold yes yes yes yes but ok easy for me if us is printing cash european central bank is printing gashes russian central bank of printing cash like a certain port of screwed grow in value and you should do find some limited products with a limited supply what kind of the world's have you guys built that one me you know do we get a one man luxury sorry this is able to lay there own or do you have of course no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and former russian deputy finance minister and that's it for now from all of us here spotlight will be back with more first time comments on what's going on in and outside russia until then stay in r.t. and take it from like. i said. in india. the. president. beatriz. taj mahal hotel. motel. hotel. believe the. sheraton hotel. collection. made. in germany. trying to change the country. used to fund terrorists in the north caucasus some. foreign money was the region's recent violence and washington. cia says the u.s. is

started this thing around gold yes yes yes yes but ok easy for if us is printing cash is the european central bank is printing gashes russian central bank printing gas like a certain port that's will grow in value and you should do find some limited products with a limited supply what kind of the world's have you guys built that one me you know do we get a lot of man like jury sardis is able to. cause no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and former russian deputy finance minister and that's it for now from all of us here spotlight we'll be back with more first time comments on what's going on outside russia so let's stay in r.t. and take it from like. i said. to russia would be so much brighter if you remove the sun from steve kruschen. stock totty dot com. the official. from the. video. and. the palm of your. wishes. you don't want to be german but want our benefits the harsh message from the politicians. country of. blown open the divisive debate on the sensitive topic. of saddam hu

by them and i think that's clearly evident for example when we look at mr tree shay at the european central bank he's very capable he's making it clear statements which i think have been the right time policy but then ultimately he's been undermined by the government's hold all around him the us is now has announced a new way of course to say while you're withdrawing. this is done that this approach this is how difficult of all we've got ben bernanke the helicopter ben as i think he'll go out on history he's going to quantities of liens anything he possibly can but i think one of the most important things we have to look at is also the fact of not just what the banks are doing in one direction but actually what the banks are demanding and i think it's interesting that for example when portugal decided it needed to be bailed out one of the large supranational banks doing well they're not taking their paper they're actually demanding gold so they want hard fixed assets and that's therefore rather worrying within europe the difficulty is that quantity of easing is going to be difficult to achieve b

the start of this thing around gold yes yes yes but ok efore if us is printing cash is the european central bank is printing gashes russian central bank of british gas like a certain port that's would grow in value and you should do find some limited products with a limited supply what kind of the world's have you guys build that one than me you know do we get a one man like jury sorry this is able to be laid out or do you have of course no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and former russian deputy finance minister and that's it for now from all of us here spotlight we'll be back with more first time comment follow what's going on in and outside russia until then stay in r.t. and take it from. crisis. dear mom i'm sorry that i had to do this i've been in so much pain in the past year that i can't take it anymore the stomach and chest pains have been getting worse and no doctor has been able to help me please know that i'll finally be at peace and with no more pain i wish i could ha

since he started this thing around gold yes yes yes yes ok efore if us is printing cash is the european central bank is printing gashes russian central bank printing cash like a certain port that's growing value and you should do find some limited products with a limited supply what kind of the world's have you guys built that one that me you know do we get a one man like jury sardis is able to lay their own horn of course no one person can manipulate the world no. thank you thank you very much for being with us just a reminder that. was my guest today a financial analyst and a former russian deputy finance minister and that's it for now from all of us here spotlight will be back with more first time comments on what's going on in and outside russia until then stay in r.t. and take it from. crisis. he's available in. the how would close a hotel tonight be sure to tell if the hotel hotel will show his the groom's return the show would hotel and some will do mysti type the hotel kuvasz otoh photo film hotel resort evergreen the old hotel till it be victoria soto's gloria prince hutto hope springs reso

prices investors are worried about a trade policy decisions from the bank of england and the european central bank. and in russia of the bourse was a mixed first solved my six slipped back into rest will the main players the trading in a narrow range the exceptions of gold up six percent russian truck maker come up two percent on further talk the dime to make increase its stake. some currency news now the ruble has grown to its highest rate against the dollar in five months the green five falling by almost three percent in the last three days of the week job figures from the us and the ruble is benefiting from rising oil prices analysts say speculators have changed the bearish mood for bush one and week they announced minutes of the russian officials both predicted some gains to the middle. and new more scope privatization program was approved by the former mayor. two weeks before he left his job the city is to sell its train of two hundred forty five pharmacies . along. with stakes in the hotel's reddest of slovyansk and the swiss hotel red hills the aim was to plug a hole in the sitter's budget

put in with other countries it just isn't going to work what's the solution that recently a european central bank has said that countries opting out of the year is a would be committing economic and political suicide but it wouldn't be tantamount to suicide but they face a very hard choice because staying in they're going to have the most desperate for .

investors are worried how to monitor of policy decisions from the bank of england and the european central bank. and in russia the pool says a mixed the solid might have slipped back into red all the main players that trading in a narrow range exceptions for those gold up six percent and russian truck they could come on up two percent on the talk that dial and they increase it's to. just some currency news now the ruble has grown to its highest rate against the dollar in five months the greenback has fallen by almost three percent in the last three days and even weak job figures from the u.s. and the world of those benefiting from rising oil prices and let's say speculators have changed the bearish mood for a blondish one and we announced and still bhushan officials who predicted some gains to that level. and a new moscow privatization program was approved by the former mayor who do you want schools two weeks before he left his job while the city is to sell its chain of two hundred forty five pharmacists the each their particular long with stakes in the hotels bredesen slovyansk and the swiss h

a successful single currency area you need first would have a central bank that can decide how much of currency to print in the european central bank hasn't quite reached that point yet it's making progress towards the germans sort of a bit hesitant about that and you also need quite big transfer payments around the from the richer and stronger parts to the poorer parts so the poorer parts can survive with a currency level that doesn't suit them and there aren't big enough transfers in the eurozone at the moment to make it work so it also adds to the strains for greece and portugal and so forth of course we're not part of the same but we do have a close relationship with you how do you characterize that relationship and how would you like it to change when the you has taken more and more power from the united kingdom often against the wishes of the british people who were asked about it and sometimes with the reluctant or tacit acceptance of their politicians but not with the enthusiastic support with the politicians that's why i welcome the coalition government statement to the new government statement that it doesn't