let's stay with the crisis in the eurozone.man and french leaders are calling on greece to implement all financial reforms strictly and effectively. this has boosted confidence in the u.s. and european markets and this sentiment is currently helping asia today. australia, singapore, japan, taiwan all moving higher. but there are concerns whether the turmoil will eventually be resolved. but for now, it is helping vero keep its gains against the greenback and the yen in trading. the euro yen at 405.34. -- 105.34. that is the latest in the asian markets. for details on how the eurozone crisis is affecting india, i am joined by a professor of economics at a university in delhi. how was the economic crisis in the eurozone ended the u.s. being viewed in india? -- and in the u.s. being viewed in india? >> right now, it is not affecting much currently. but it will. if we really need a much more systematic attempt to resolve the fundamental problem of imbalances. so far, political efforts do not seem to accomplish much and that is a big

that has been the case in the eurozone. the problem is dealing with multiple parliaments, not just the u.s. congress. there have been so many crisis already the markets are not able to absorb all of the shocks. it is an issue of things spinning out of control due to a lack of political leadership that is warning people in the u.s.. >> thank you so much. now to pakistan where massive floods are destroying homes and crops once again. just over a year after the country was devastated by raging monsoon waters, authorities in sindh province are warning it could be worse. >> a full 20 feet below these waters were shops and homes but villages as far as the eye can see across southern pakistan have totally disappeared. the authorities in this province say these funds are even worse than last year's massive disaster. we find this family stranded on a bit of high ground. their homes and gone, most of their livestock drowned, but they did manage to save a couple of chickens. everyone was in the village, but suddenly the rains came. th

european commission's say sentiment in the eurozone has fallen this month. the dax ended the day ended the day up. the euro stocks closed up over one and a half percent. the euro is trading for $1.35. the cost-cutting campaign has moved up a notch. nokia has announced cutting another three and a half thousand. >> nokia is hanging up on romania. they will shut their plants by the end of the year and transfer production to asia. the news is a shock for workers and the entire region. >> that is a serious problem. 2200 people will be losing their jobs. that would just compound the problem of unemployment in the country. that would be any location worldwide including germany. this is the latest in a series of restructuring efforts as their sales continue to decline. the market share has tumbled from 40 to just 20%. analyst said that the company failed to react fast enough that for soaring demands for smart phones. >> h and m posted a drop in the third quarter. that is a total profit of five and a 25 million euros. they blame losses on rising costs for raw materia

that has been the case in the eurozone. the problem is dealing with multiple parliaments, not just the u.s. congress. there have been so many crisis already the markets are not able to absorb all of the shocks. it is an issue of things spinning out of control due to a lack of political leadership that is warning people in the u.s.. >> thank you so much. now to pakistan where massive floods are destroying homes and crops once again. just over a year after the country was devastated by raging monsoon waters, authorities in sindh province are warning it could be worse. >> a full 20 feet below these waters were shops and homes but villages as far as the eye can see across southern pakistan have totally disappeared. the authorities in this province say these funds are even worse than last year's massive disaster. we find this family stranded on a bit of high ground. their homes and gone, most of their livestock drowned, but they did manage to save a couple of chickens. everyone was in the village, but suddenly the rains came. th

we will look of how the most fragile eurozone economies are dealing with their debts. in spain, demonstrators took to the streets for a second day running. many are worried about steep cutbacks in social benefits. despite protests, parliament passed a controversial constitutional reform, setting a limit on future deficits. the italian senate passed a new austerity package aimed at reducing the country's deficit by more than 54 billion euros over three years. the emergency measures are the top story in italy. hikes in sales tax and an extra levy on those with large incomes. the plan has been revised constantly and the government has lost credibility. greece can only attract investors to 10-year bonds by offering 18% interest, a record rate for an eu member. one reason is many austerity measures have not been fully implemented. athens has sold only a fraction of its holding in state enterprises, promise to bring in 50 billion euros. ireland is being kept alive by an 85 billion your rope belt -- euro bailout. growth projections are being revised downward. the imf is calli

the ruling parties do not want to be attached to a eurozone crash. that will not do any good when it comes to elections next april. i think they are also aware that the public sees the damage it is now doing to some of the biggest banks. we have spoken to people on the street, and they're starting to question the eurozone project. that is a concern for french politicians. >> thank you very much. a quick update on a story we brought you yesterday. the judiciary in iran has issued a statement denying that to americans held as spies since 2009 are about to be released. shane bauer and joshua fattal were scheduled to eight months in jail. yesterday, president ahmadinejad said there would be released. some confusion in iran. in palestine, a year -- in pakistan, a year after monsoon flooding, authorities in sindh worn at this year could be worse. over 5 million people have been affected by the worst rains and over a century. >> a full 20 feet below these waters were shops and homes. but villages as far as the eye can see across southern pakistan have total

germany's highest court says yes to bailing out the eurozone, but presents a new headache to the chancellor. in russia, more than 40 people have died after a plane crashed just after takeoff. watch out for the trash. find out about a new radar that could trek the junk flying about in outer space. we begin in germany, where the constitutional court has ruled that germany's hundred and to the eurozone bailout of grease was legal. the court also ruled that chancellor angela merkle must in effect that the parliamentary go-ahead for similar initiatives in the future. >> the court has thrown its weight behind the eurozone. the plaintiffs argued the bailout of debtor nations violated the german constitution and eu treaties. the decision was clear from the judge. but the justices also barred the government from going it alone in the future. the court ruled that parliament must debate and approve any more bailouts. in the bundestag, this came as a relief. it gave into lumber called the ability to continue her pro-iraq policies. -- it gave angela merkle the ability to continue her pro- euro policies.

there has been more strong words from german chancellor angela merkel in defense of the eurozone. she is facing criticism within her own government over her response to the debt crisis and the cost of bailing out countries like greece. she opened the frankfurt motor show with a warning about what a broken euro could mean for german exports. >> the german auto industry is riding high, but for how long? with fears growing that the eurozone crisis could put the world back into recession, angela merkel reminded her audience at the euro is worth fighting for. >> germany can only prosper in the long run when the european union as competitive as a whole. over 60% of our exports go to the eu. it is quite clear that the european single market and the euro are essential to our economic success. >> even within her government, there are doubts about her approach to the crisis. her transport minister, a member of her bavarian coalition partners, have criticized the high cost of bailing out countries like greece. >> we cannot allow a rescue at any price without anything on the part of greece. >

of a home's own for the euro -- home game for the eurozone chief. he had clear words to those who believe that greece should return. >> i am totally against the idea that one or two member states should be compelled to leave the eurozone. that would achieve nothing. >> he says that the eurozone must cut its ranks to make sure that the currency survives. he said that the international inspectors are set to return to athens later this week. this means that greece could get its hands on the next installment and that upset some lawmakers. >> you told us that greece fundamentally has no problems because she is a member of the eurozone. that is diluted. this is keeping members trapped. >> they said they were making life hard for the institutions coordinating euro policies. >> we have four or five bodies looking after the euro. the euro has never been so badly off. >> the parliament is calling on brussels to help get more 2 manage the debt crisis. >> israel has approved the construction of more than 4000 new settlements in east jerusalem. this is to be bui

whether they are realistic or not that's the big question because the other countries of the eurozone will have to assume the directly or indirectly but whatever way one looks at it greece is in a lot of trouble the economy is now contracting at something like eight percent on an annual basis unemployment is officially at sixteen percent but certainly the real life much higher it's impossible to control your budgetary situation in that kind of economic decline so there will have to be done something in the coming days and weeks or as the pictures you just showed already indicated there will be major major turmoil in greek society now the big fear within the e.u. is that a contagion they desperately don't want the situation in greece to have a domino effect on the rest of the eurozone but just how bad would you say the situation is in other states. well perhaps first focus once more on greece one of the problems with the greek situation is that if one would default today or if one would or try to organize a default of greece today the major problem is. all the greek banks would immedia

that would mean greece defaulting on its debt and possibly its exit from the eurozone.et's look at the market numbers, starting in frankfurt, where the dax finished sharply lower, 4% lower. the euro stoxx 50 also 4% down. in new york, the dow jones industrials also heading lower. the euro at $1.3663. the imf head has called on the leaders of the world's largest economies to take urgent action to ward off a global recession. g-7 leaders are meeting in france, and they are under pressure to find new solutions to the problems of debt and economic stagnation. >> g7 finance ministers are only in france for a short while, but despite the pressure to come up with convincing anti-crisis measures to the world's industrialized nations still lack uniform intervention strategies. the europeans do not want to follow the example of the u.s. and launch a massive economic stimulus program. >> we support the united states in its work to ensure that the recovery in the u.s. economy can continue, while at the same time in europe, we have our own genesis. >> many european nations are strug

. >> german -- the german highest court has made a ruling on bailing out strongly members of the eurozone. republican candidates take their contest to california. it is 9 in the morning here in singapore. >> it is to a clock in the morning here in london. this is "newsday." >> it is 2:00 in the morning here in london. >> 43 people including 27 players and nine officials from the russian ice hockey team lokomotiv has been killed in a plane crash. the tragedy happened near yaroslavl, 400 kilometers northeast of moscow. the survivors are in critical condition in hospital. >> minister -- minutes after the flight took off, it crashed into the banks of the river volga and burst into flames. 37 passengers and four crew were on board, most of them perished. this included players from the most beloved team, lokomotiv. the team was on their way to belarus. they were due to play their first match of the season in minsk on thursday. the russian hockey federation said that the news is devastating. >> this is a terrible day, we have lost one of the best teams of russian hockey. a team which millions of

germany will do whatever it takes to keep grease in the eurozone, that was the message from chancellor angela merkel as she played host to her greek counterpart. george papandreou is in germany to drum up support from the government and the business community. he addressed the federation of businesses to urge the leaders to work with greece. >> there is a determination to get through the crisis. >> angela merkel and papandreou said the that stabilizing greece is essential. >> we have had the common experience that we are bound closely together through the euro. the weakness of one partner affect all partners and conversely, the strength of individual partners guarantees prosperity and a future for all. >> earlier in the day, papandreou asuured business leaders that athens was standing by its commitments. he asked the audience to play as parts cost play its part. >> i can assure you that your investment increase will not keep us in the past. this is an investment to move greece into the future. >> the federation of german industry called on greek companies to remain committed to their o

germany votes to give the eurozone a bailout boost, will it be enough to calm the market woes? and beijing, we have blastoff. china takes an ambitious step in trying to become a major player in the space race. welcome to our viewers on pbs in america and also around the globe. the deadly crackdown in syria continues and over the past two days alone, human rights activists say nearly 50 people have been killed. that adds to the more than 2,700 which the u.n. estimates have died since the violence began earlier this year. yet it's a story which has been hard to tell with foreign journalists largely banned from the country. however, now our correspondent has gained rare access inside syria. today, she was taken by the government under armed escort to the town where the protests began in march and she filed this exclusive report. >> troops now guard the entrance where syria's uprising began and the violent crackdown to end it. neither has stopped. it's rare for foreign journalists to come here. we are given permission to visit and police and intelligence agents joined us. we can't

angela merkel says that speculation about a greek default can only hurt the eurozone. she's attempting to show solidarity among the euro members. >> a united position on the euro crisis. this was the message that chancellor merkel wanted to send as the finnish prime minister makes his first visit to berlin. her economics minister suggested that europe could no longer rule out an orderly defaults of athens. >> we must be aware that everything we do must be done with great care, knowing the consequences. we are in a new territory for the common currency. otherwise, a situation would arise that none of us want and it could have very serious consequences for us all. i have no doubts over whether the german government shares a common position. >> as if to prove his independence, the economics minister, head of the junior coalition partner, had his own press conference at party headquarters and he reinforced the very statement that had caused so much turmoil. >> we want greece to remain in the eurozone and for that to happen, we need to restore it to and efficiently function

their moment ruining their eurozone but bailing out every eurozone country they can find in every bank left and right as they're desperate again records amount of italian debt spanish that italy is sitting on two trillion euros of their best know it's absolutely impossible even if germany was going to spend all their money that they have got on italy it still wouldn't be enough to to give that same afloat or right now the eurozone is in the process of total it isn't ration as a result of those policies and the e.c.b. is already doing quantitative easing without even calling it at least in the u.s. there they are polite enough to say are we are we are going to do another round of quantitative easing although i said before work in the eurozone that they think you know without even announcing in their german. ministers distracting people by talking about actually doesn't want the euro bonds but at the same time the e.c.b. is actually buying a riley any any government bonds from. there can come up as mentioned so clearly no i'm afraid the e.c.b. is ruining the eurozone just as it's happeni

the eurozone area but of course. the way things politics are going now in all the different countries that's of calls of father morgana it's impossible to imagine at the moment that the eurozone countries would go for a total political union as is required to come to orderly solution of the problems that are on the table at the moment well if greece does eventually default or even leaves the year as a what if anything that would have on the future the single currency. well if we only look at greece i think like i already said more than once on this television channel it would be a very good thing for greece to leave the eurozone and since greece is only a very small part of the eurozone one can do the kind of exit like the greek exit in an orderly way if it is done this orderly it would mean chaos within the entire eurozone i think and i'm fully convinced that an exit of the of greece from the euro zone is from a technically monetary point of view perfectly doable it only takes a little bit of coolness to do it and i

and the eurozone, those are critical. the imf has revised their eurozone growth prospects significantly down. they have said that the important advanced economies are suffering low growth. this is destabilizing baking system. the imf is calling this a vicious feedback loop. -- this is destabilizing the banking systems. >> they said that they need to get their act together to avoid repercussions. growth will be less than expected. the imf chief economist not pull any punches. >> the global economy has a new face. the recovery has weakened considerably strong policies. strong policies are needed to improve the outlook and in prove the risks. >> the fund has revived its forecast down from 1.8% to 1.1%. the imf defended the downward revision by pointing to worries about a possible breach defaults and the potential domino effect across the eurozone. -- the imf defended the downward revision by pointing out the worries about a possible greek default. >> italy has had their credit rating downgraded. eu leaders are looking for ro

. >> another bid to contain the eurozone debt crisis. the head of the european union executive held talks with the chancellor. the pair likely discussed remarks by the economics minister of germany, who said europe could no longer rule out an orderly greek default. >> there should be no taboo when we are talking about stabilizing our common currency. included here is an orderly default. >> germany's finance minister was irritated by the remarks from his colleague, the junior coalition partner. >> it is sensible to concentrate on making an effort to stick by what we have agreed upon. we already have a very nervous situation on the markets, and they will not get more stable with this talk. >> in brussels, a spokesman for the economic and monetary affairs commissioner said the committee is not considering a scenario in which greece defaults on debts. the greek government warned the country to prepare for more belt-tightening. the prime minister reiterated the country's commitment to austerity and the euro. >> we have to show we can overcome

others also point to deeper long-term questions over the future of the eurozone.ur economics editor reports from frankfurt on the questions hanging over the single currency. >> what started as a greek crisis has turned into a crisis for the euro itself. forcing policymakers back to where it all began to tension deep inside the single currency project which had been there since the start. there was always a question with the euro, what would happen if one of the members ran out of money? would they get bailed out by the others, or would they have to default on their debt? the answer was they weren't going to let it happen. well, that strategy hasn't been working out so well the last couple of years. in effect, now they have six weeks to finally come up with a better solution. that's exactly what the german government doesn't want to do, especially not today. >> there are some who are not satisfied by the way european politicians are dealing with the crisis, but europe always moves forward one step at a time. >> that is the way they do things in the euro, the proble

it represents the eurozone now rests on the shaky basis of a confederation of states that are committed both to a monetary union and to retaining their fiscal sovereignty at a time of crisis that cannot work the heroes existential problem is that its monetary side the only say that it has imposed as a single currency and the single interest rate on economies ranging from the basket case increase to the german bastion of fiscal probity this means that italian or spanish exports don't get any cheaper and that interest rates go up the second germany sees inflation anywhere on the horizon chalking off lending one of the possible solutions is a fiscal union or transfers it is quite obvious that the limit or forgive me. for the euro is coming through. and my guess is that. it's hard to say when that will happen it will be determined that. throws out the light on the euro. germany is currently at the center stage it faces the choice of either agreeing to some form of fiscal transfer or backing a euro bond issue which involves a major jump and a step servicing requirement the weekend has underl

germany has agreed to expand the eurozone bailout fund bringing a touch of relief to markets. ai has more on that. good morning. >> good morning to you catherine. the dow, it was a choppy session on the dow jones as the bailout was met with mixed reactions but the dow did manage to hold onto its gains into the close. so for details and to see how markets are kicking off here in tokyo let's go to ramin mellegard, he's at the tokyo stock exchange. how are stocks looking at the open? >> reporter: good morning to you ai. a bit of a choppy open as you said. u.s. and european markets providing a bit of a relief after the vote from the german parliament to supply further bailout funds for weaker eurozone economies and that's had a lot of volatile sessions throughout this week based on the issues surrounding eurozone debt and also concerns now both in france and germany about that final exact amount needed for the bailout funds and on the political front, there's still some questions there, regardless of how the voting has gone. let's have a look at thepening levels here this friday m

a much anticipated ruling on the legality of bailouts of looting worldlings participation in the eurozone rescue funds but the court also said that the german government would have to get the approval of parliament before providing further financial aid in future. ellie's ten people have been killed and over sixty injured by a bomb blast near the high court has been in new delhi and pakistan based terror group has already claimed responsibility. for his foreign minister has called for the warring sides in syria to return to dialogue the comments were made at a meeting with his french counterpart as moscow and paris agreed that they don't want the situation in libya to be repeated in syria. well that's peter lavelle and his panel of guests discuss the fate of the euro and our debate show let's coming up on r.t. . liz . can you see. the low welcome across town right here about is it time to write you a picture where for the euro as the single currency reels from one crisis to the next europe's politicians appear to be powerless in the face of a monetary union that is proven to be dysfunctio

together so if back then it was political will that brought the eurozone together do you think that political will will be here will to keep get it out of this are the problem that it's in. i think is a fundamental difference because when the eurozone was being established it was sold to the people especially in in germany on the basis that there would be no bailout starts the other northern states wouldn't be bailing out the southern members and now the another those cutters are the bad i think will be very difficult to to bring together the necessary political will to keep it together and we saw we saw signs about in yesterday's. in the understand where angela merkel did get the majority that she needed but. this way the members of her own coalition proved to be very very difficult but let's talk about the actual bailout fund i mean even the expanded one is not to help greece i mean you're backing out two hundred eleven billion euros the debt it seems like a drop in the ocean issue because of the ocean especially when greece's need alone is around three hundred fifty billion will

. >> there is more drama in the eurozone. what is happening? >> european commissioner warned about unification. the eu would not the will to face the financial crisis. this came as president barack obama reiterated that europe was not dealing with its bank system as effectively as they need to. there is a plan to set off a new tax on the financial transactions. >> these are europe's days of anxiety, days of warnings and pressures. the president of the european commission said it was the worst crisis in 50 years and that the european project could only be saved by further integration. >> we need a community approach. we need to really integrate europe. we need to complete the monetary union with a real economic union. it might be necessary to consider further changes to the treaty. >> if there was a treaty change, it would give the u.k. a chance to bargain over their relationship with the eu. there was pressure on britain today, the eu has decided to back a tax on financial transactions. this could raise 55 billion euros a year. this could damag

greece is an integral part of the eurozone, that is a message from german chancellor angela merkel following a conference with the leaders of france and greece. this is a message that is intended to dispel speculation that greece could default on its debt. the debt crisis has already split the government, now the european commission could be on a collision course as well. they have put the idea of eurobonds on the table. this is the idea of selling for europe as a whole not for individual state. this is something that germany vehemently opposes. >> instead of selling their own bonds, they will sell eurobonds. this would lower costs for some, raise costs for others. >> we will be working out the introduction of the eurobonds. >> the ecb cannot continue efforts to buy bonds of countries in difficulties. >> proponents say that countries like greece are likely to default without eurobonds. >> it is absolutely certain that they will defaults or they will exit the eurozone and this would carry problems not only for greece but for all of the member states and our global partners. >> such warnings a

the eurozone debt crisis was at the heart of the trouble. >> financial shares tumbled as people worry that banks in europe don't have enough capital. it seems the markets are not convinced. >> a new week with new market jitters in frankfurt. bank stocks among the leading losers. some saw share prices plunged 8%. hedge funds had been speculating financial institutions could fold. regulators are alarmed and warning banks they need more capital. the imf has called for force recapitalization of europe's banks to avert a world recession. the chief executive of germany's no. 1 bank said the recapitalization is not the answer. >> it is well known, if not accepted wisdom, that many european banks would not survive having to write down the government that their holdings to market value. >> he also urged eurozone countries to support each other more. he says the eurozone economy is too important to be gambled with. >> the cost of support for week member states is lower than the cost of a breakup, especially from germany's point of view. >> he says eurobonds are not the right way forward, at lea

welcome enter crosstime people about to remind you we're talking about the eurozone crisis. came. into i'd like to go to you in the context of this crisis here how much has the euro made these economies more alike because they as we go through this crisis were it's pointed out just how different piece economies are if you look at the paid countries for example i mean it's still the disparities between them that was trying to the euro was supposed to. measure out and level out it hasn't done that and i think that's one of the thing that's this whole crisis has revealed. well this is where david has a very good point that the presupposition of the euro system from the start was it was supposed to lead to a convergence between the various european economies it hasn't done that and that means there's constant tension within the system and it's true whereas on the one hand european countries will go as far as they can to try to keep this system together because it is very much in their interest to do so and they will pay tremendous short term costs if this system breaks up but on the o

for not moving fast enough a credit ratings giant loses faith in bella's gaining ability while his eurozone partners are left wondering who's next. israel maintains its position over the palestinian bid for a seat at the view read while flexing its military muscle by arming up and reinforcing the borders. of the melting pot that could boil over as the turkish president meets his german accounts of passover joining the e.u. group so its future demographics. the russian ruble continues to retreat against the main courses dropping to its lowest level against figures dollar in ten months more in business about twenty minutes. a very warm welcome to you this is r.t. live from moscow our top story now if he's taken the scene for ratings giant standard and poor's which downgraded the country's school by one knots and says its growth outlook is negative t will prime minister silvio berlusconi criticised the decision as being the result of media hype and was out of touch with reality well their s.n.p. said it was driven by if you use poor growth and concern over rome's ability to reduce spending des

italy moves closer to the center of the eurozone debt crisis as its crucial austerity package enters a final stage triggering a new wave of protest and tough spending cuts. five pm in moscow i matras are going to have you with us here on r t our top story we're covering breaking news on r.t. an explosion at a nuclear facility in markkula in southern france one person reportedly killed several injured authorities say no radiation leak has been reported the explosion followed a fire in a storage area for radioactive waste according to the live figaro newspaper the facility is in the garden region it's a major site involved with decommissioning nuclear facilities and operates a pressurized water reactor we'll bring you more on this breaking news story shortly unsolved issues in russia u.k. relations should not stand in the way of healthy and profitable cooperation that's what the leaders of the two states concluded that their meeting at the kremlin artie's a nice and now a has more on the outcome of the first official visit by a british prime minister to russia for six years. president

six pm in berlin and german lawmakers have agreed to massively increase the size and power of the eurozone spell out fund meaning berlin will guarantee a whopping two hundred and eleven billion euros worth of loans greece is watching this closely as it tries to convince the e.u. and i.m.f. to release more emergency cash but the greek public's anger is focused on facing more cuts and tax hikes etc perth reports to us now live from athens the greek people sour are giving much support to their politicians who are trying to secure further belt out cash are they now. well the message from the people here on the streets of athens today has been take your bailout and leave that was aimed at the troika audit team he's been here trying to hold told about the next tranche of money that greece is going to need to avoid bankruptcy now you can see behind me here outside the parliament building the people are already gathering this is the third day of the taxi driver strike and already you can see the numbers turning out there you can also see the riot police just at the front of the building now all da

oh sorry so why is this vote in berlin so crucial for the eurozone. well this is really going to send a message not just to the same countries. as well that the leaders again to be willing to pull the eurozone countries and greece especially out of this deepening crisis now it's going to be quite shortly to build a study going to be debating the controversial plans to strengthen that the sand out fund now we know that that is prefix dreamy unpopular amongst the german public remember jemmy's already the biggest single contributor and this is going to increase their contributions even more a lot of the general public say that that's simply not. now what a lot of people have been saying a lot of analysts we spoke into has said that it's not really a question of whether or not this space is going to gay people think that it will get a free it's going to be a question of the majority of the german chancellor merkel guys and that's really going to be the test and the signal to be sent around the world about how much support this has because of course movin