a certain stage either portugal goes to the i.m.f. or know either portugal manages to lower its deficits right away or make it in the medium or long term what happens that is that still the euro has institutional weaknesses that haven't been solved. even if not america misses a horsy have told us in december that they will do everything to save the euro fact is that the european union has not done its homework from december to january and now the pressure is back again possible sort of a mixed messages as you say and still a question mark i have to walk portugal's next step and as you say there are question marks over the year as a currency there in the euro zone but what portugal does decide to take the money will it ever be able to pay it back will it just plunge it further down a debt how do you think. well i think that portugal didn't have a sustainable situation year ago postle didn't have a real estate bubble like spain had or didn't have a bank crash like ireland have we have some minor and quite well known bank problems but th

the sport to go as well as the island and greece will go deep would you say all portugal's problems. the problems of the photograph is that during ten years of membership within the european union. the economy has not increased its competition . but on the contrary they have lost competitiveness. i would have given a definite and exhausting explanation which other causes but as a matter of fact today portugal is totally trapped by the situation. if we if portugal were not in montreal union the country would simply devaluate they would approach operate to what we call a competitive devaluation in order to gain some time in to reorganize the economy with the current parity of you it is almost impossible for. portugal to put the country again on the path of growth all the signals are not too bad all germany and france are reportedly pushing lisbon to take the money to stop the rot from spreading to countries that just spain a much larger economy but how secure is the resigns integrity right now. if france and germany are pushing. portugal to a protest of under the so called you a stabil

today portugal is totally trapped by the situation. if we if portugal were not in the tribune you know the country would simply devaluate in order to gain some time in to reorganize to the economy with the current parity for all for you it is almost impossible. portugal to put the country together all the poles of growth this is the problem we cannot solve by new gay louts by funding portugal was probably needs a more fundamental treatment and i don't know where this treatment can be given within the eurozone. well later this hour we'll talk to a british a year m.p. who says no matter how all the eurozone pavel's to stay afloat the prospects are bleak. person i think the euro will collapse and soon i think it could be january february could collapse its always been a political project and that is dangerous because you cannot throw billions or hundreds of billions even after a political project the markets aren't interested they see through it they will bring it down and that's what's going to happen you cannot push water uphill you can

late. >> so 70% from portugal. what about spain? >> spain is making a great effort to restore market confidence by showing greater commitments to meeting the fiscal target. but the market is worried about spanish sheer size of government financing need. the economy in the euro area and if spain uses this rescue fund, the market is worried about it because spain may use up most of 750 billion rescue fund created last may. so little money will be left for the remaining euro area countries. >> what can the rest of the eu do? >> at this moment, european commission is thinking about expanding the size of the fund, but france and germany oppose this idea. they think before the size of the rescue fund is expanded, the weak countries should make greater efforts to showing their fiscal disciplines and continue to do fiscal reforms. >> now, moving on to the impact on asia. how should asia handle the eu credit anxieties? >> well, the european union is a very important trade partner for china, south korea and japan. so whether

today portugal is totally trapped by the situation. if we if portugal were not in.union of the country would simply devaluate in order to gain some time to reorganize the economy with the current parity for all for you it is almost impossible. portugal to put the country ago on the path of growth this is the problem we cannot solve by new bailout funding portugal was probably needs a more fundamental treatment and i don't know whether this treatment can be given within the eurozone will stay with the story pretty sure and p. david campbell balance warning countries who are embracing the euro that they're boarding a sinking ship he talks to r.t. next. thanks very much for talking to you now do you compare the european union to the former yugoslavia where do you think the similarities. i think what it's about is actually trying to force a very different countries together very different economies together under one state to state effectively the united states of europe with quite an element the soviet union to it i am a member of the european parliament but i think eu

portugal's breathing a faint sigh of relief after raising over one and a half billion dollars in its yearly bond but it's come at a price with investors demanding high interest rates risking their money in the debt strained country it's being seen as a test of where the portugal will need to euros in bailout like it's struggling currency partners greece and ireland told the markets the physical scientists from berlin university says a portugal would march better with its problems if it wasn't and remember. we trapped by the situation. if we thought you were not in. the country would simply devaluate in order to gain some time in to reorganize to the economy with the current parity for all for you it is almost impossible for. portugal to put the country together all the parts of growth this is the problem we cannot solve by new gay louts by funding portugal was probably needs a more fundamental treatment and i don't know where this treatment can be given within the eurozone. when i next hour we'll talk to a british m.p. who says no matter how far the eurozone paddles to stay afloat th

today portugal is totally trapped by the situation. if we thought you would know it in view of the country would simply devaluate you know to to gain some. time now to reorganize to the economy with the current parity for all for you it is almost impossible for. portugal to put the country again on the path of growth this is the problem we cannot solve by new bailouts by funding portugal was probably needs a more fundamental treatment and i don't know where this treatment can be given within the eurozone next to burkill there's no there's the disease of poverty in dirt it was widespread in europe in the nineteenth century but now in the united kingdom it's on the rise again as the country's been named europe's tb capital and while the u.k. is one the world's major a provider is to fight the disease abroad there are fears it won't be able to tackle it at home. reports. it's a fatal illness most common in the victorian era as a result of badly ventilated damp living conditions but tuberculosis is alive and kicking in twenty first century

well obviously portugal right now is only surviving as long as japan and china are willing to. risk their money on the faith that the eurozone. bailout is always only a temporary solution since they cover up for the lack of. unity within the euro zone it's evident that we have at least two different economic concerns in the us shown after ten years different in development in interest rates in inflation labor market economy reforms and so on now the differences between these two sones are nose now so big that it is damaging the southern european countries heavily they cannot export their goods because they are connected to a currency which is. predominantly governed by german interests and we can as they can not to devalue their currency they cannot sell their products are going to fund the general theme of you're saying it's the crumbling of the euro the financial regulators are you. can you describe other than doom and gloom penny prescribe any permanent cure for the struggling eurozone here. get rid of those countries who don't want to live under the german economical regime

and perhaps italy will be after portugal.owever, it is an issue. >> and they a c >> in germany is calling the shots? >> yes, with great productivity. >> and with their contingents iceland, and th norwegian. also have strong economic outlook. >> brysoverizon? at&t lose is exclusively. >> and it is free for customers the 1 options. >> it is going to short term combat with the google and rick. and perhaps the do not have the google on android. short-term combat. and compete. >> at&for rise in will have the short term loser. at&t will also be a loser. and i think it is going to be material. >> people of not been happy with them. the been waiting for apple to make the change. >> and if this does not happen? >> and all day. and but rob black, more with your money. and the news after the break. stay with us. . >> with clouds overnight, and a chilly. that cloud coverage will keep us a bit warmer. warm system coming in with rainfall. breen showers in the north bay and in the evening. --rain showers. been taking a look of the stormtrac

portugal is breathing a small sigh of relief. had thaved the auction led to ma bailout would be inevitable. >> portugal needed to go to the markets to raise money. the big question what it would have to pay. if there were going to be 7%, officials said that would be unsustainable. they expected portugal would be billing -- need billion. portugal has bought some breathing space for itself and for the year. some of the fundamentals have not changed. the central bank has predicted this economy will decline by 1.3% this year. the worst did not happen. the doubts about the euro have gone away. a lot of economists believe that during this year, one or more countries will be needing rescuing. some signs of relief today. >> here in the u.k., speculation. the bbc has learned that eric daniels is entitled to a payment of 220% of his salary. the german airline lufthansa has seen a big jump in passenger numbers. it carried more than 90 million passengers last year. an increase of 17%. >the headlines this hour. president obama has led the tri

a certain stage either portugal goes to the i.m.f. or no either portugal manages to lower its deficits right away or make it in the medium or long term what happens that is that still the euro has institutional weaknesses that haven't been solved. even if modern medical and mrs the have told us in december that they will do everything to save the euro fact is that they who can union has not done its homework from december to january and now the pressure is back again. and while portugal moans over its economic woes all those are being more practical months kyra and say see how one european government doesn't find to throw rocks off fiendish poets with new tax net kinds of reporting is coming your way in just about twenty minutes time but here's a quick preview. of years which is curse income tax ruling so because of the financial crisis and the collapse of the banking systems and g.d.p.'s around the world romania's government has started taxing witches of fortune tellers from the first of january this year and because of this the witc

what they're doing here is they're reinforcing failure at the end of the day countries like greece portugal and ireland and possibly. should never have joined the euro in the first place so they now trapped inside the economic prism with a whole set of policies that. i think the more we build up the bailout the more in effect we're pouring. and this really is a tragedy because you know these people who were stuck in. greece we have mass demonstrations we have we've had people actually killed on the streets. if they hold the eurozone together then the conditions in those countries are frankly going to get worse and what it really needs is a frank assessment which is there is an argument that in northern europe with germany and holland and a few countries possibly france as well that there is an optimal. but can work together for the north and south of europe to be stuck inside a monetary union is never ever going to work but nobody inside these institutions wants to face up to when the president. comes here to strasburg tomorrow morning i should be saying this to him across the working parli

and while portugal mulls over its economic woes are those of the more practical excursion stacy herbert here one european governments incited the wrath of fiendish powers no less with its new tax net because report on shortly . romania's which is curse income tax ruling so because of the financial crisis and the collapse of the banking systems and g.d.p.'s around the world romania's government has started taxing which is the fortune teller's from the first of january of this year and because of this the witches are basically cursing the government now queen which brought terror because they are is fear it's about the new law and she says that she plans to cast a spell using a particularly effective concoction of cat excrement and a dead dog goldman sachs collateralized debt obligation most of it is cat extreme it and dogs this is what they're finding the federal reserve bank's balance sheet in washington the reason why they're afraid to do an audit at the request of ron paul is because they know that they've got basically dead beatles eye of newt some old chicken bones some dead cat ext

now you wonder how could portugal affect me? portugal can affect you. >> thanks a law, scott.he time now is 6:24. a bay area doctor is accused of sexually assaulting a patient. now police are looking for more potential victims. we'll have a live report coming up. >>> police in california detape the homeless man who's still making headlines with his radio voice. find out why next. >>> and an olympic medal is stolen from a home near stockton. we'll find out how that happened coming up. >>> good morning touchlt a thief made off with precious melding. someone snatched moses olympic medal from his parents' home. he earned the medal as a goal keeper for the u.s. men's water polo team in the 2008 olympics in beijing. it happened while the family was in jamaica celebrating moses' engageme engagement. the family really wants the medal back because it can't be replaced. >>> the ohio homeless man who shot to stardom last week found himself in a little trouble in hollywood. police questioned and detained ted williams for a short time on monday night. apparently williams was in a heated ar

portugal will try to raise much needed cash on the bond market on wednesday while trying to convincethe world it doesn't need a bailout to solve its debt problems it's a critical period for the country at a time of year when governments raise crucial funds by getting investors to buy in but it could come up quite a price portugal is likely to pay high interest rates for just as jittery over the country stability and still says it won't need bailouts like we saw in ireland although it's thought the major euro currency countries of france and germany want to plow money in that's because they're worried the debt crisis will spread to neighboring spain which is by far a larger economy and where a collapse would be deeply destructive but financial adviser marco says of portugal rescue wouldn't solve the fundamental flaws in the euro zone concepts. this is not in any kind a way a final solution for the european debt crisis it is just buying time for these countries so that hopefully they will be able to get control of their fiscal situation and the markets will start to to believe in them

they are waiting to see how high the risk premiums will be on portugal's new bonds. >>shar in frafurt rose on tuesday. we have this from the frankfurt stock exchange. >> the debt crisis is back in the minds of investors, but it did not drag down the mood on the frankfurt floor. the dax is the result of the upcoming earnings season. alcoa was looking at sending aid, and it was better than expected. this shows there might be some positive surprises ahead, like from lufthansa. the cold weather will not have bad effects on their balance sheets, and also a tire maker said it will do well, and the dax responded. >> that was a reporter. the euro stoxx 50 is also higher. on t crency markets, the euro is trading at $1.29. bad news for german motorists. the price of petrol is up. crude-oil is at a high. prices in germany for patrol have not been this high since 2008. they say it is to to the destruction in the trans alaska pipeline. in the u.s. car industry -- due to the diupti to the transatlantic a pipeline -- trans alaska pipeline. and the u.s. car industry is doing better.

estamos viendo lo que estÁ pasando en europa con grecia, portugal y otros lugares y es importante queue hay muchas personas que oyen eso de grecia y de portugal, hasta de espaÑa y no entienden exactamente quÉ tiene que ver con sus vidas. ¿por quÉ lo que estÁ pasando en otros paÍses nos debe marcar la pauta a nosotros en nuestra realidad? >>claro. y efectivamente, esa es la cosa, ¿no? porque pensamos que este paÍs es tan prÓspero, tan poderoso, que es increÍble pensar que un dÍa no seamos asi. pero la realidad dice lo contrario. actualmente el dÉficit es muy grande, la deuda estÁ creciendo, el gobierno de esta paÍs estÁ creciendo; estamos viendo cÓmo estÁ tomando control de varios sectores privados y eso es lo que resulta cuando el gobierno se hace muy grande, y eso es lo que estÁ pasando en espaÑa y portugal, donde el gobierno te da tanto, que despuÉs no consigue dinero para pagar todos esos servicios. >>entonces, ¿cuÁl es la soluciÓn? porque el desempleado, la persona que lleva dos aÑos sin encontrar empleo, quiere, por lo menos darle de comer a sus hijos, ¿no? cuÁl es la soluciÓn, e

this week portugal's prime minister repeatedly insisted that his country can deal with its own financial problems and does not need a bailout she has a socrates vowed to continue with strict staring measures such as pension cuts and tax increases portugal managed to relieve some concerns as it race over a billion euros in a bond auction but this might not be enough for it to escape the fate of bankrupt greece and ireland and experts fear that portugal's the mice could trigger spain's collapse an economy which could be simply much too big to bail out but the national advice or mark opiates or paul he says any survival package would not solve the fundamental flaw in the concept of the result. this is not in any kind a way a final solution for the european debt crisis it is just by. time for these countries so that hopefully they will be able to get in control of their fiscal situation and the markets will start to believe in them again that they're able to service their debt moving forward in reality what's happening is burdening this country with these countries a lot more debt to service

this week portugal's prime minister repeatedly insisted he's country won't be asking for a bailout from the e.u. because it doesn't need one shows a soccer this the country was on track to restoring its economy and vowed to continue with stricter stare the measures such as pension cuts and tax increases his comments follow speculation that portugal is next in line for a loan after greece and ireland the eurozone is currently in the grip of a debt crisis that is threatening to block financial stability and experts fear portugal's demise could worsen the spanish economy financial advisor marco pierre as a bailout would solve the fundamental flaws in the concept of the eurozone. this is not in any calling the way a final solution for the european debt crisis it is just buying time for these countries so that hopefully they will be able to get in control of their fiscal situation and the markets will start to to believe in them again that they're able to service that moving forward in reality what's happening is burdening this country with. a lot more debt to service and the jury. still out

portugal's demise could trigger spain's collapse an economy which could be too much too large to bail out but financial advisor marco pierre to poly says any survival package wouldn't solve the fundamental flaws in the concept of the eurozone. this is not in any kind a way a final solution for the european debt crisis it is just buying time for these countries so that hopefully they will be able to get control of their fiscal situation and the markets will start to to believe in them again that they're able to service their debt moving forward in reality what's happening is burdening this country with these countries a lot more debt to service and the jury is still out on whether they can actually turn their fiscal position around over the next few years you can't save all the banks and save all the countries because at some point someone's got to fail all which is the other option which we've been pursuing so far is that we just carry on printing money and everybody carry on printing money and we end up with hyperinflation and most currencies then become worthless so at some stage so

socrates valid to continue with strict austerity measures such as pension cuts and tax increases portugal managed to relieve some concerns as it raised over a billion euros in a bond auction but this might not be enough for it to escape the fate of bankrupt priests and experts fear portugal's demise could trigger spain's collapse which in its turn could be too big to bail out but financial adviser mark foley says any survival package wouldn't solve the fundamental flaws in the concept of the euro zone. this is not in any kind a way a final solution for the european debt crisis it is just buying time for these countries so that hopefully they will be a. gotten control of their fiscal situation and the markets will start to to believe in them again that they're able to service their debt moving forward in reality what's happening is burden in this country with these countries a lot more debt to service and the jury is still out on whether they can actually turn their fiscal position around over the next few years you can't save all the banks and save all the countries because at some point

say europe will have to assist lisbon to prevent the continent's financial crisis from spreading portugal is widely seen as the next euro zone country that bailed out after greece and ireland the country represents less than two percent of the blocks of gross domestic product but experts fear it's a fall could affect the much bigger spanish economy financial advisor market peter kelley says a bailout wouldn't solve the fundamental flaws in the concept of the eurozone. this is not in any kind a way a final solution for the european debt crisis it is just buying time for these countries so that hopefully they will be able to get in control of their fiscal situation and the markets will start to to believe in them again that they are able to service their debt moving forward in reality what's happening is burdening this country with these countries a lot more debt to service and the jury is still out on whether they can actually turn their fiscal position around over the next few years you can't save all the banks and save all the countries because at some point someone's got to fire or all

avoid the risk of default being greece it is helping island stands ready in case of need to help portugaland so as they are doing their best to avoid this they don't want to be coming out saying what if it was not successful so when you're trying when you're making your best to avoid the default if you don't want to good thing to say it could happen so it's a question of politics but we would see with stress test whether they are ready to address this market and by doing this what if and speaking about the stress as you think that the people in europe are now sort of more cautious into putting their money into banks because they think that they're not going to be safe i would say the market will say investors are cautious the banks some banks do you get to access funding in particular in these countries like spain portugal the one i mentioned before returning vest is the also of quite confident in their banking system except probably either call for the greece where we're seeing some reduction in deposits which show producer greater concern about the banking system but overall you up the

that gives portugal a reprieve to a bailout. the finance minister was pleased with the results of the bond auction he reread he also expects a smaller budget deficit this year. the debt crisis has been at the center of talks in italy. angela merkel has welcomed silvio berlusconi in berlin. germany has committed to do everything necessary to keep the euro stable. germany has dismissed proposals to pick up be temporary fun for struggling euro zone countries the president had earlier called on eu leaders to increase the fund. >> the headlines leave no doubt. the european union is worried about one of its members. oread -- it once in increase in the rescue fund, despite opposition from france and germany >> it must be enforced. it must be wideneded. -- widened. barroso once detailed budgets by april. ed be -- the eu price is one manager also wants more countries. >> this is all about crisis prevention, and the better we are able to prevent the crisis, the less need for crisis management 3 put the question now is whether the e.u. ref

portugal insists it does not need a bank bailout as it comes under pressure from germany and france to head off a potential euro zone crisis. icebreakers reach of the last for a fortnight in freezing waters off russia's far east coast. it is six o'clock in the morning on a wednesday in moscow this is r.t. and we're glad to have you with us we can leaks founder julian assange has a briefly appeared at a london court on tuesday he's fighting extradition to sweden over sexual assault accusations he claims the charges have been fabricated in order to eventually prosecute him for espionage in the u.s. over the release of government documents defense lawyers argue that a son could be sent to guantanamo bay where even face the death penalty if tried in the u.s. archies lore and it has more. it was essentially what they call a case management herring today which is when they set the date for the main herring and just check that all the evidence is in course of being prepared in a timely fashion we do know know when the full extradition extradition hearing is going to be that is going to take p