that is how you can describe the euro. it hit its highest level in two months against the greenback on friday, briefly breaking through the $1.30 level. for months, the euro has been dogged by worries over a sovereign debt in europe. now there are worries over the u.s. economy. >> while unemployment continues to rally in the u.s., american consumers are mostly sitting on the sidelines and on their wallets. the u.s. is taking a long time to recover from the massive economic crisis. europe has bounced back more quickly. analysts say that is why the euro is headed higher. the recovery comes after a long gown spill. the currency plummeted on fears that greece could slide into bankruptcy and worries over europe's massive debt crisis. in june, the euro hit bottom at $1.18. it has gained nearly 10%. investors have regained confidence in the euro. a further reason is the upswing. billions of bureaus -- euros are apparently paying off. so our austerity programs. confidence is no longer in short supply. >> citigroup and bank of amer

similar for the euro index. new york and wall street, the dow in late trading, 10,230 right now and our currency versus the euro down just a tad, 28.86 u.s. cents. not making the grade. sources say germany has failed europe's bank stress test. tuesday, reports emerged that the real estate company owned by the german government is not healthy enough to withstand another crisis. >> germany's real estate company invested nearly 8 billion euros in greek bonds, and they say that is why it will not pass the eu stress test. 91 banks have undergone the test, and many are in germany. they are tested on their ab ility to withstand stocsk with at least a 6% capital ratio. early, only 4% was considered sufficient. it is unclear how much will be required to stay afloat, because risky securities will be spun off for bad bank assets. >> french air traffic controllers are beginning a one- day strike expected to disrupt flights at the two main paris airports, and many controllers are calling in sick. there are suspicions that th

profit doubled in the second quarter to 2.2 billion euros. the company says that profits will not rise as steeply in the coming months. another german company to post strong man -- storm results was nieman's. they said that energy, health care, and energy divisions topped 2.3 billion euros. it has seen a huge rise in wind turbine sales. >> it has been a busy day of earnings reports for german companies. our correspondent sent us this report on the day's trading. >> it was the busiest reporting day for dax companies during this reporting season. that had an increasing order influx at many companies. something is weighing on investor's moods as well. it is the situation in america. the labor market is not satisfactory. the foreclosures in many homes is happening in many cities in the united states. this is weighing on consumer confidence. the dax currently away from its year high by about 200 points. >> staying in frankfurt, this index closed. it is clearly down in neighborhood -- is clearly down. 2752. across the atlantic, the dow jones indust

the euro stoxx 50 index of leading eurozone blbl-chip stocks was down about 0.33%. in new york, stocks snapped their seven-day winning streak and had the better than expected u.s. jobs data. the dow industrials closed down at about two-thirds of a percent. on the currency markets, the dollar is trading - the roo i trading at $1.3903. -- the euro is trading at $1.3903. >>> is being called a poor stock debut for the agricultural bank of china, rising less than 1% on the first day of trading. investors had hoped for a skyrocketing ipo, and now they're offering. but now they're looking for a better performance on friday. >> the bank of the gong, agricultural china made its debut in shanghai. but the bank failed to make a big splash in early trading, gaining 0.8%. the banks ipo comes after the worst quarter shanghai has seen it in two years. >> there is a lot of uncertainty on the stock market because of difficult marketonditions. th publi listing is just as important, even if the market prices fall. >> the debut was this most ain't among lenders and shanghai markets --

also, the war raise about the european and the euro area -- worries about the european and the euro area after the downgrade of ireland and worries about the financial side wishing in hungary, dragging the year rose slightly down. >> let us get a quick look at the numbers for you and see how the numbers stood at the end of the. the dax ended the session by about a half a percent lower at 6009, euro stoxx 50 was also down by about half a percent. take it over to wall street, afternoon trading just before the closing bell, the dow up by half a percent at 10,001 of the 54 and the euro going for 1.2942 u.s. cents. if you watching the executives from boeing and airbus this week, you would probably think things are looking up for the aviation industry, and you are right. on monday both aircraft makers racked up billions of dollars of deals at the international air show. we have more. >> farnborough off to another impressive start with the airbus circling among investors. down below the cboe was signing off on deals with american client. two american leasing companies ordered a total of 111 air

but now they are plummeted into the red by 13 billion euros. tony hayward has been under fire for some time over his handling of the crisis and his apparent lack of sensitivity for the victims. and it looks like he is being sent to siberia and getting a year's salary for compensation. >> forex -- fresh accusations have emerged ahead of warnings of the fatal crash at the fire brigade. police and fire officials said they have warned of the venues in ability to handle the festival. city officials are also accused of putting commercial interests ahead of safety. >> more and more experts are leveling criticism at the event promoter. he is accused of having exerted major pressure to get the go- ahead for the parade in duisburg. 4:>> the media were brought on board. the capital of culture 2010 was used as a pretense, and pressure was put on local politicians. in the end, they could not do anything but say yes to the event. >> investigations are focusing on one area in particular, the entrance to the tunnel. it is where most of the victims died. some a

the price of a ticket could start at 100,000 euros. to cut costs, the designers avoided expensive technology and opted for tried and tested rocket propulsio with a fuel mixture of oxygen and hydrogen, the only emissions created will be steam. >> water in the atmosphere is much more environmentally friendly than co2 -- will have to produce a hydrogen in an environmentally friendly way. >> before the space liner can embark on its maiden flight it needs to prove it is just as reliable as conventional aircraft. until then, and around the wod trip will have to remain a very long haul. >> that wraps up the "journal." thanks for joining us. >> here is the forecast for germany. sunny and hot in the south and west. a few clouds and quite warm in the north and east. it will stay hot in the next few days with increasing clouds and rain is expected on friday. elsewhe in europe, brita will see rain and it will be over cast in the east and along the mediterranean coast but temperatures will remain high. now here is the forecast for selected cities a

on the currency markets, the euro is $1.2767. >>> 1 billion euros over the next five years. that is how much porsche will invest in new plants and products, hoping to make big synergy savings to its close cooperation with volkswagen. they're not yet ready to say the company's plans will mean new jobs, they have promised there will be no job cuts in the next five years. >>> the italian carmaker fiat said it doubled second quarter profit, six under 50 million euros, pointing to higher sales of its truck and tractor units, making up for slower demand on the car markets. the company says its cost-saving measures are also paying off. fiat says its four-year balance remains unchanged, but it hopes to revise its forecast up after the third quarter. >>> the strike's over the skies over french airports have been unusually quiet this wednesday. air traffic controllers staged a one day strike to protest reforms of how european traffic is managed. french air traffic controllers fear they will lose their job and benefits. hundreds of flights have been canceled, with paris especially hard

the euro stoxx 50, similar story. on wall street, investors were encouraged by reports from caterpillar, ups, to name a few. and on theurrey markets, the euro going for $1.2888. >>> corporate results, shares of credit suisse fell 2% thursday on a poor second quarter earnings report. the banks all their profit fall 22% from the first three months of the year. investment banking took a hit as revenue dropped -- revenue dropped sharply amid weaker demands. the bank says the u.k. bonus tax also created onetime drag on e bottomine. >>> tomorrow is the day of reckoning for european banks, when the results of stress tests for 91 financial institutions will be released.

it became a euro crisis with rapid shifts with investors massively pulling out of the euro. following government on the ninth of may you remember state agreed on the seven 150 ewe row rescue plan to save and protect all the big states too like spain. in total, loans were 500 billion euros were approved by the e. u. in addition, it was were available by the ims. in spite of the spes of these short term measures, recovery from both will be slow and painful, the financial and euro crisis shows the monetary union needs to be reformed. last week the u.s. congress adopted president obama's reform package bringing the biggest changes in banking regulations since the financial crisis in the 90/20. what is being done in europe to reform the markets? the european party and parliament requested a relation and following guidelines and principles. first currency. there has to be more currency on the market. for example too many credit defaults are traded over the counter and not on property trade market. second, responsibility, all market participants must take risk responsibility for th

and people said well, euro fairy dust will make it okay. >> reporter: besides euro fairy dust the onlynvesting in economic growth so why didn't they? >> perhaps deep down the sense of education they have is related to the glories of the past, you know. and so they a project which uplifts a certain area, the complements that. >> reporter: an archaeological project related to the dollar ease of the past like refurbishing the ancient acropolis itself, for example, which actually leads to another piece of the greek tragedy, again a bit of tuneful relief ♪ they used derivatives from goldman ♪ expenses to postpone ♪ ♪. >> reporter: the much publicized derivatives from goldman sachs, the u.s. bank p were actually loans, to be paid from future tourist income. but like so many wall street products, they were crafted to hide the fact that they were debt in order to avoid the euro debt limits. and there was a rational. >> there are going to be people visiting our country forever, okay, right. and so that is a pretty predictable stream of money, okay. they securitized to use the modern words, they

there is a limit on tariffs. 5 euros is enough.[inaudible] most business people are afraid that making parking more expensive will actual impact their ability to do business -- will actually impact their ability to do business. >> it also depends on the sort of business and the sort of street. for instance, if the go on the street where gucci is and so on, and you need enough parking spaces. >> with the chairman of the society of amsterdam, they are also supporting this approach. they realize if they just press on the car accessibility only, in the end there will be no excess ability at all. they support strongly that only the people who need to come by car, they should be able to come, and the rest should make other choices. >> i think we are more or less at the stage where we are facing the same discussion. our experience is that a platform of business is much more open to try to find solutions which are not car- related, except for here and there. also, for the population, it is hard. they have in mind, if you are better off to

analysts say these banks gave up 45 billion euros worth of losses. two have been nationalized and the rest at been forced into mergers. there is a strong suspicion that the money that they have to lend now comes from a european central bank, because no one else has the money to lend. >> it is a big bank, and they are in the market. so every financial position right now in the crisis -- [unintelligible] some of them are very small. some of them have problems with private debt of people who are being fired through the crisis. [unintelligible] >> but the banks are not the only problem. spain's economy looks and feels dynamic, even now. but that is deceptive. and it the markets in may of this year was the long term prospects of low growth and high debt. the domestic economy has been in recession for nine quarters. only exports keep it above water. unemployment has doubled to 20% of the work force. this year, the cost of insuring the spanish government's debt shot up. with such a large unemployment rate, it is hard to see consumption recovering. -- >> wit

the euro is trading at $1.29.airplane maker boeingis strugglingdespite thupbe mode profits fell to 605 million euros. the company delivered fewer planes. boeing management said the airplane maker remained well- positioned for growth in 2011 and beyond. boeing is working along the clock to deliver the 787 dreamliner. the new delivery date is december. that is 2.5 years behind schedule. one of germany's most successful businessmen is dead. theo albrecht, co-founder of the discount chain aldi, i'd at the age of 88. together with his brother, he created the discount supermarket concept in the '80s. he was the country picked third wealthiest man, with an estimated fortune of 17 billion year rose. >> a rare photo of theo and karl. only once was a theo the limelight, kidnapped in 1971. he gave his only interview. >> i am injured and very tired of course. it was very stressful. >> did you believe during your captivity it would all and well? >> i did not let that hope died. >> the brothers laid the foundation for their emp

it amounts to an overall revenue of 16.1 8 million euros. technical problems have dogged the operation, tarnishing their image. >> we made a performance bid to our customers but could not keep that promise during this winter and this summer's heat wave. we are sorry. >> deutche bahn says it will spend millions to modernize and maintain its trains. the company is looking to restraint. they plan to take over british company ariva. >> will be able to grow outside of germany in the rail traffic sector. >> some german politicians say the money earmarked for the takeover would be better spent on the operation back home. >> shares in a german microchip maker were among the leading advances. investors were encouraged by its hefty profit in the third quarter. earnings top 126 million euros. that is a 60% gain on the previous quarter. the chip maker was anxious about the current year, with cutthroat pricing in the industry. >> over a year ago, infinian was on a downward spiral. banks refused loans. shares tumbled. the dax index ceased to list them. th

we cannot afford to lose the advantages of the euro. the euro is a must. if we cannot have the euro, we can forget the european market. if you have a single market, you need a single currency. you have to first meet the criteria. otherwise you will, out -- will come out like your crisis. we cannot afford to lose the advantages of the euro so we need to do it -- need to use of our political energy now to get the job done while the window of opportunity is still open. the crisis can be defined as crucial but a significant part or a turning point. in the case of the european union, there are two options. either play a part and emerge from the crisis stronger in united than other. -- united than ever. i would say i hope is that option because it is a very difficult and complicated. we need to bring all the 27 member states with different interests. i will give you one example. germany has about 25% of their gdp in manufacturing, in industry. great britain has about 17%. there are much different interests. as a manufacturing industry, we have a problem because

you might even see the dollar actually trying to rally somewhat versus the euro as well so reversing some of the gains which we saw today but i think that the fact that it's coming out quite late tomorrow are scheduled to be then we're going to be in a bit of a holding pattern and it might not be until monday where we start to see a bigger reaction and if this stronger in a word. well then i think the market will breathe a sigh of relief and that maybe things are just not as bad as what maybe some people were thinking or were fearing i do think that there has been a bit of stability coming into the situation in the years own over the last few weeks in particular and that has benefited the currency but if this stress test turns out to be what you're suggesting. questioning me and maybe a bit better then obviously i think the euro would probably rally more so versus a broad range of currencies to pull what did you take from the fed report this morning. well i was a little bit surprised when i came in this morning and i was looking at the price action of the dollar i mean it was actuall

they cost each 30 million euros to build. and the bicycles, you can't see it but more than a quarter of all trips and 40% of all trips up to 40 kilometers are made by bike. second is denmark with 20% and down to great britain to 2% and the u.s. only has 1% trip share by bike. advantages and the benefits of cycling, very short but, which you can capitalize is the health part, the reduction of health costs because the effect of cycling on health are above expectations. it's nearly all diseases will have less risk of occurring when people have enough physical exercise and all the extra, the ideal means of physical exercise is about half an hour a day, medium-intensive exercise. so it's far better than going to the gym twice a week and then, very intensive sporting for two hours. and what is easier than having this bike trip into your daily commuting? then automatically you have your half an hour exercise and it's been shown in the managementerlands that people who sigh -- netherlands that people who cycle to work have more than

in the euro zone that it is in the u.s. and the reason for that is obviously the jitters in the financial markets the sovereign debt markets but also the fact that fiscal policy taxes are being raised government spending has been cut pretty severely and that's really very much a european story that's not much of that going on in the u.s. in comparison so it's europe where it's i would it is a bigger risk. all that's all the latest from the business team but keep in mind you can always find more stories on our site at our. business. live. in india aunties available in the grand central shirt in mumbai the taj mahal the. polish president was your favorite for a small amount of beatriz's public clothes are going to go on taj mahal who.

concerns over european financial institutions receded, cueing investors to buy back the euro. this contributed to the weakening of the dollar. the euro is changing hands at 113.13-18. and here's a look at the latest long-term interest rates. this is the yield on the benchmark ten-year japanese government bond. the hang seng opened 0.4%. the blue chips are down 0.8%, coming closer to the 6,000 level. and the sse composite is down 0.32%. >>> new home sales in the united states rebounded sharply in june from a record low in the previous month. the u.s. department of commerce said on monday that 330,000 newly constructed homes were sold in june. that's up 23.6% in annualized terms. and the largest month to month growth in 30 years. sales in may plunged sharply due to the end of government incentives and slow recovery in employment. june sales were better than forecast, but compared with a year earlier, they were still down 16.7%. sources say the outlook of the u.s. housing market remains unclear. >>> in a bid to promote more electronic publication in japan, firms are discussing re

the debt crisis in the euro bensalem most russians still prefer. that and much more time. on a twenty four hours a day you're watching r.t. the u.s. house of representatives has convened for a third time to discuss the impact of the deadly chemical agent orange during the vietnam war while the effects are still being felt to this day washington insists there is no evidence to link it to illnesses that continue to afflict they two generations you may find some of the images in this report disturbing. i was born with and with too late and missing a hand it is because of america's chemical war against her people in the jungles of vietnam that has left tran in these conditions she is a victim of agent orange second generation tran is one of many her story represents millions living in the shadows of a lasting legacy. these kids will never live a normal life their deformities physical signs of human decay and although their parents were not even born until after the vietnam war eighteen million gallons of toxic herbicide spray through the jungles of sou

>> one famous case was about 8,000 euros. it was a porn star involved and a son of an ex-general secretary of the governing party. >> reporter: ex-pols as high rollers. the porn star, meanwhile, was julia alexandratou, a sometime singer whose 2007 hit, "the target is cash," helped define the debt-drenched decade. ♪ >> reporter: these days, julia flaks for a hot new internet gambling site on the only billboards in use in athens. they're otherwise empty, suggesting the fear, if not yet insolvency, of more traditional taxable business. but the internet is tax free. and much of the greek economy was and still is, says economist manos matsaganis. >> we have to invent a new of doing things and very fast. the kinds of problems we are facing are really 19th century that we did not resolve at the time and we are obliged to face them now. >> reporter: like what? >> corruption, for example. corruption is huge in the healthcare system. >> reporter: the government recently accused 57 athens doctors of tax fraud, and is criminally prosecut

bank says the amount of euros sold by the citizens have increased by nine percent in may to the highest level since two thousand and four meanwhile the sales of dollars declined by eight percent analysts blame the debt crisis in europe and say most russians still prefer saving for. well that's all we have time for now if you are eager to get more news right now log on to our website r t dot com slash business.

you might even see the dollar actually try to rally somewhat versus the euro as well so river. some of the gains which we saw today but i think that the fact that it's coming out quite late tomorrow or scheduled to be then we're going to be in a bit of a holding pattern and it might not be until monday where we start to see a bigger reaction. let's have a look at those stock markets now russian it could seem to shrug off the pessimism of the chairman of the u.s. federal reserve who warned that the prospects for the world's largest economy will quote. most good rally in afternoon trade with indices ending higher. owner of the plant that suffered a terrorist blast on wednesday recovered early losses to edge into the black. propped ability of russian business is increased eighty six percent in the first five months of this year compared to two thousand and nine the statistics service says the combined pretax profits in law companies climbed to eighty billion dollars working in the extraction utility crews industries were among the top again as the number of companies recording a l

report on one to six banks in the euro zone and it seems that number of the large institution will not just rest first and to me. the negative pressure on stock markets moreover we should never forget about spain refinancing that is due you were this friday and next friday and over all its thirty two billion euros. that spain just don't have and. spain will have to ask the european bailout or they will have to enter market was significant amount of money. that the shares. well that's all we have time for in this mission of business but you always find a lot more stories there on our site r t the us that's. the reason which are made to police children. and their health. make. sure illness is. a nurse in the. uk to secure itself against a. culture is that so much of the taxpayers' money or maybe even hides it is never a real mystery it's not been easy to be fighting a deadly virus with the endless funding of big pharma how much consensus is. welcome back you're with are to live from moscow here's a look at the top stories explosions rock a higher power plant in russia's southern republic

six months we did today have a two point nine billion euro fifteen year paper that was issued by spain with a fairly fancy point six five percent which gives us reason to be more encouraged that many of the austerity programs which will have to be introduced. may actually start to be affected but of course that will inevitably to some degree affect growth and i think this is because the euro was so badly damaged about four to six months you need a bit of rest when the news is slightly better and where a few months ago there was no chance of seeing all the twenty seven or even the top ten. from the same hymn sheet. came under severe pressure. but the main. way it is we've had some rest bites but i suspect the autumn will bring more. and perhaps. now what my last question is what major factors do you think will move the markets in the near future and. it's the war of attrition between the quality of the earnings we get through this weekend with reasonable results from of course citigroup and bank of america and then next week we have a whole slew of people whether it's tobacco companies

deal with this friday and next friday and over all its thirty two billion euros. that spain just don't have and. spain will have to ask. european bailout was able to enter market with significant amount of money. in their t. shirts now russian book make a bet lee has signed a contract with the country's football premier league to start taking bets at stadium before a match the company will invest up to five million dollars in the project and expects the first return in three years but in a culture never has more. one two way driessen money while into sports event but tired of the track now you can risk your sure down at the football stanion as deeply resp repaired to kick off their one surefire win now will be the football association and its deal with the back league it will receive half of all the earnings to made by the bookmakers inside the stadium the money will be put towards the development of football in russia. fifty percent of what is made will be given to the russian football league and then we will decide whether to invest into football clubs or to chi

. >> spanish banks would need around 1.8 billion euros to survive another credit crunch. the head of the central bank in spain emphasized that the stress tests were only an exercise and not a forecast. he said that regional banks saturday been restructured. the results have been met with widespread relief. they show european institutions are in good shape but it is to be seen how the news will affect the markets. >> we are putting a lot of stress on the stress tests. earlier, i spoke with the banking and credit institute head here in germany and i asked how the german banks had feared. >> some of them have failed but this was not a surprise. there is also the reconstruction bank anyway. there's nothing new. >> what about the german press bank. what will happen to them? >> the point is that they did not need much capital until the crisis. there has not been much trouble until now. >> let's move beyond germany, any surprises for the other countries in europe? >> the lead surprises are the savings bank in spain. we did a stress test in europe to help the spanish government m

that prompted investors to buy the yen and the euro. and here's a look at the latest long-term interest rates. this is the yield on the benchmark ten-year japanese government bond. in other asian markets hong kong's hang seng opened 0.2% higher. it currently is down just slightly. slightly in the red. the shanghai index for major blue chips is down 0.6%, and in shenzhen the sse composite is also down half a percent. >>> japan's mitsubishi electric will boost production of semiconductors with improved energy control features. it's in a bid to tap growing chinese demand for ecofriendly home appliances. the so-called power semiconductor is used in energy-efficient air-conditioners and hybrid vehicles. the chip cuts energy use by controlling electricity flow to a motor. mitsubishi plans to add new production lines to existing plants in western japan by march next year. that will burst current output capacity to about 2 1/2 times and at a cost of roughly $110 million. the company also plans to develop more advanced semiconductors to boost it

the plays for it says the russian top flight school of the championship winning shot for russia at euro bosky two thousand and seven and was also part of the school at the beijing olympics a year later. i thought it's now where russia won the gold on day three of the european championships in barcelona the team now tops the overall table with nine medals alexander shows up claiming the top honors in the man's high jump with a well meaning march of two meters thirty three centimeters so the stylish. clothes will be your reigning world in your opinion if you want champions wildly martin burnett to cross. over to malta sports and make a hit when it has clocked the fosse the style in the shakedown for the rally a fan months before dr who trials to his her. last year i needed just two minutes and two point two seconds to complete the task track however that was just one town for every second week of them teammates compadres very much involved and reigning champions to boston of france and obviously try and draw obviously here was one town for the second for the back more serious company seco