in case ethanol on. sergeant of the israeli defense forces. during his service scorched a street fight. colonel in the chilean armed forces participated in keeping down a military revolt. sergeant in the us army. trying to become an american by getting pardon the. franks and reasons differ but one thing brings them together once they disobey. wealthy british style sign. on. the. market.

can. find out what's really happening to the global economy with max concert for a no holds barred global financial headlines kaiser report hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers.

in the united kingdom is available in the house. so if you want hotel the old way even if. they get to. the hotel some of the country house today in the blue old gillman tells the remembering the the chance to feel. the world the ruben's hotel. twelve thirty am in moscow thanks for staying with us as we continue our breaking news coverage here on our team at least seventeen people have been killed in a car bombing at a market in russia's volatile north caucasus region where the one hundred others

were injured in the attack on the republic of north aset here three suspects have been detained while security has been tightened across the region following the attack we've spoken to a number of eyewitnesses either those who are in the market when the car bomb exploded or people who live nearby one local tells us she's sadly become accustomed to living in fear. our trade center in key streets have been cordoned off i live in the city center who heard the blast but couldn't tell where it came from or who learned from our neighbors that there had been an explosion at the market national did not let my child go to school and i heard that there might be a second glass this is often the case we are living in a tinderbox people are being evacuated from the building and i cannot answer it i don't know what's awaiting me i cannot reach anyone the connection is poor it's impossible to dial a single number i cannot even get through to my own home basically the situation is very difficult it's impossible to get used to it but we have to live with it. his

logic leaders in russia have criticized the attack claiming it was a deliberately time to cause maximum insult to muslims who are bent over the act of this act of terror is an attempt to scare the people and is aimed at the denigration of islam as a religion of muslims around the world and in russia with them in waiting for the interview ramadan and these people carried out this attack they wanted to overshadow people's feelings ahead of this holy celebration and they have succeeded in doing this in or this as it's now in mourning and these people misbehave what they've done yes you know most the words you get what i mean security analyst alexander sullivan of says the militants behind the attack are linked to al qaeda and aim to take hold in the region i say this is loss is just if that's the science it's there is and actually. no leader is a. pianist and that fact they are atheists too to

stimuli so the situation says at inception age the choice thanks to serious here if that's first of all and they're trying to show that they are they have ceased they will still there are attempts to stabilize the c.f. period russia and such will slow. political expert and editor in chief of slovak magazine victor lennox says the terrorist behind the attack had a bigger plan than just wreaking havoc among the peoples what we're dealing here with is i think a sustained and determined effort on the part of some to create political instability. on the eve of the. presidential and parliamentary elections to which russia is moving very fast. and i think that this is impossible without money and assistance from from outside of russia. all schools and kindergartens were also

evacuated in vladikavkaz after a telephone warning claimed that one of them would be bombed andre murtaza and from the ria novosti news agency says the day's events showed that the terror where terrorists have been waiting for their moment to seize the opportunity. he wants to keep up with i think terrorists want to seek revenge for the beslan school siege during this year's commemoration events the security forces were on high alert so no terrorist attacks were carried out now security measures have been slightly weakened the terrorists attack people i'm almost sure that extremists are behind this blast probably with foreign support but of course we can say for sure we sure are going to station is behind the attack the terrorists which blew up the car just want to destabilize the situation in the north caucasus and discredit the current leaders in the area they want to show that the states of thirty's are feeling to provide stability in the region victor cammy shout out from the international federation for peace and conciliation says the fight against terror can only be one through international efforts. i think that all the people politicians the military

the security forces they have to think together to get the religious civil society and be the spiritual leaders of the to understand what is really going on it's necessary to really unify the efforts in the in the country first of all and also it should be aerial international cooperation in the fight against terrorism because this is not only the local roads which creates the opportunities for this struggle in confrontation but also it has an international order to. just to recap our top story a powerful blast rocked the southern russian city of lot of cars on thursday morning at least seventeen people were killed when a car bomb exploded in the central market of the capital of russia's republic of north of the suicide bombers believed carried out the attack that also injured more than one hundred some of them children three suspects have been detained this is the latest in a number of terror attacks that have shaken a lot of cars for more than a decade the deadliest of which claimed more than fifty lives. we will keep you up

to date with this constantly developing situation invited but first the business news with kareena melican stay with us. how and welcome to business i'm queen malakand because i have you with us russia ranks sixty third as a competitive nation the cording to the world economic forum that places russia roughly in the middle of one hundred thirty nine countries on the list data space for unmeasured competitiveness in twelve different ways among them education labor market efficiency and innovation so it's all learned to first place followed by sweden and singapore. and russians credit rating outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost our liberating growth stabilizing banking industry and a flexible exchange rate policy from the central bank which said it may further raise russia's credit rating if the government reduces the country's vulnerability

to swings in all places. politicians are placed in some countries have gathered up the pretense of economic recovery president barack obama this week called for another round of public spending to prevent a slide into depression but the debate has finally balanced with others in europe determined to cut spending and bring down deficit's they believe that our plans. there at the bottom wants to go one hundred eighty billion dollars into the u.s. economy after a data suggesting the economy from house prices to jobs is shrinking again given his mood is at debating whether more spending will end a decade of contraction in the land of the rising sun the russians to face a choice for the next few years we seem pretty sure and if. we see a combination of private increase spending that we believe. i believe to

be private capital will return to russia over the next twelve months in a meaningful manner secondly we do see increased spending from the government as well combination of two should be the base we believe to be five to six percent growth over the medium term the government plans to borrow more money this year but also spend their means of this to build zeeshan fund domestic borrowing is already accounts for a sixty million dollars and russia will be ready to issue your ribbons in november according to the finance ministry motion will be same store digital will be boring a lot in any case a deficit of three point six percent is anticipated next year we also focus the twenty twelve deficit will be three point one and two point nine to twenty thirteen the current situation has forced us to borrow and we will be spending from the reserve fund next year. the reserve funds have shrunk to a third of their former size when that runs out and a little hole in the russian budget unless the government can pump up its moorings

or one buyers for every inch of state companies legs bear. and you through the dish will actions less than two years away on a list see politicians we spending cuts off limits you need to do a business or two you must. plunging interest rates of lead to a three fold rise in borrowing on the syndicated loans market by russian companies corporate loans have jumped to twenty billion dollars from just under seven billion dollars a year before for example local took an unsecured loan this year is about one percent above its a bank rate last year a similar but secured loan by the same company had an interest rate four times higher than. the russian markets ended in the black on thursday with the r.t.s. finishing up of wind a half percent and the last six just over a percent across telecom was the biggest gainer all of my six up over five percent banking and energy shares were also high with bt beginning three percent all the

r.t.s. shares of spare bank of look oil finished up two point four percent. gazprom will boost investment by thirteen percent in the final months of two thousand and ten it will take the total sum for the year to about thirty billion dollars the money will go on keep gas transport projects plants and russia's far east along with the north and south stream pipeline projects. now look out the rest of thursday's company news el dorado russia's electronics retailer says it will exceed its profits forecast this year helped by the opening of four more stores the group's vice president of marketing says the company wants to become a leader in europe. well goal over the next three years is to become the best in europe in the next couple of years we're going to rebrand the whole chain we've managed to recover and regain the confidence of both consumers and banks but quite profitable and we've announced four percent ebit dollar year to date but we still

have a lot to do we began the year with one target for profit but it looks like we'll exceed it but at least one and a half times also us to nominate his chief all that during the board of noise extraordinary election in october twenty eight the votes being repeated after accusations of cheating during an earlier vote the two principal shareholders and enter ross have competed for control of the board a list of candidates will be submitted on september twenty first at the latest spare bank could offer a four point six billion dollars loan to rosol the small banks have been graft told reporters in. the island we have giant needs to refinance is debt to have national bank graft has also announced that the privatization of nine point three percent stake in the bank won't happen this year turning to its operations he added that is bad bank expects its retail loan portfolio to grow ten fifteen percent in two thousand. that's all the update but you could always find most always on our

website at r.t. dot com slash business. news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. operations around.

except.

to live in a country that doesn't understand that there's more violence in the streets of this country than there are in the streets of baghdad. one of the spring. breaks of. broder there's room in the room please the st louis.

sergeant of the israeli defense forces. during his service scorched a street fight. if a young son a colonel in the chilean armed forces participated in keeping down a military revolt. the sergeant of the u.s. army. tried to become an american by digging part in the. ranks and reasons differ but one thing brings them together once they disobey. marquees coverage of the breaking news at least seventeen people killed in a car bombing at a market in russia's volatile north caucasus region more than one hundred injured attack in the republic of north three suspects have been detained security has been tightened across the region. we'll bring you more on the story in about fifteen

minutes first though our team speaks to the award winning british historian and economist robert skidelsky who says that russia and europe should form a military alliance to face down global threats it's coming your way next on r.t. . lord skidelsky a member of the british house of lords award winning historian and corniest and an expert on russia is here with us today thank you very much for joining us group or skidelsky your wrists and book canes the return of the must step out philosopher and economist john maynard keynes received several awards how relevant the economists feel today i would say they were very relevant in three respects first of all he explained how we got into this mess this crisis in two thousand and eight two thousand and nine secondly he tells us what we ought to do about it how to get

out of it and thirdly he tells us how to avoid how we can minimize our chances of getting into another one and i think no other economist does that he was the greatest economist of the last century in one of the articles you said that europe was a declining economy clee and politically why is this happening and what are the signs of the crisis well of course europe's been very badly hit by the recession and it's got very high unemployment but beyond that i think europe is in decline it's it's weaker than it was it's population is it is not expanding and. others are. being affected by the rise of asia and particularly the rise of china so if you think back to one hundred years ago europe was the center of the world now of course it's not and it's much much weaker than it was and partly it has no

unity there's a european union but there's no european government and till they get european government they're not going to play or be able to play a major part in the world a world of. the collapse of the greek economy has impacted the whole of the european union. and does this mean that the e.u. is vulnerable as a groupie well of course it is because it was based on the idea that everyone is progresses at the same rate well if there are some weaknesses. in some parts of it it affects the whole lot because it means that the exchange rate is weaken and it also means that some countries like germany have to bail out other countries so if anything goes wrong in one part of the union it's the responsibility of other countries and they didn't think they were going to have to assume those responsibilities so i think the greek the greek crisis has impacted the whole of

the union immediately immediately it. created a crisis of confidence in the europe germany and france want there to be consequences for the countries which ran up excessive deficits like greece is the semester istep well of course i think people have to countries have to be have to live within their means so to speak not spending extravagantly but when they talk about consequences for greece they also have to consider the consequences for greece and other weak countries will have consequences for them i mean if if if they cut down on government spending in the mediterranean countries that will mean less demand for german exports and so it will impact them it's not just consequences for the for the weak countries it's consequences for everyone so i think they have to be very very careful in wanting greece to pay the price of its

extravagance because in paying that price the germans will also have to pay a price they're the strongest country in the your opinion and from such as well and what are the countries which could be potentially some. to these matches greece italy spain ireland. england. portugal they're all they've all adopted what's called fiscal consolidation policies they've all said that they're going to have their spending in the next over the next four or five years to balance their budgets again and i think that's going to have a very bad effect because i think it's going to slow down the growth of recovery will slow down the recovery it might even lead to a double double dip recession as it's called so you actually go down again so they're very dangerous times for the world economy over the next six months the german finance minister suggests introducing a european want to treat font is this necessary is this

a necessary it dition to the current system i think it would help yes i think that's the one good suggestion that's actually emerged from the crisis i mean most of this suggestions have been terrible but this is a good one. because it mobilizes some resources that can be brought to help we countries in an emergency it's rather like you are it's a regional version of the i.m.f. you know the i.m.f. countries can borrow from the i.m.f. on conditions but of course it depends whether they can mobilize the required resources on a permanent basis they have done it on a temporary basis so far on a permanent basis and what conditions they attach to lending the money if the conditions are too hard then i think they can actually make matters worse but it is a good it is a good step towards a government of europe you believe that expenditure reduction is the key danger of

the current economic situation why is that and if so what can it result well i think expenditure reduction is a huge danger because it's cutting down spending the government in a recession the government is really kompany. in for a decline in private spending overall the spending in the economy is less than it was and then private sector spending less government has to spend more that's the only way of keeping economies going and i don't know who exactly has some politicians that there is a crisis like the current one you have to pay people the money make them work even if you if you make them dig the money and dig them out well cain said cain said you know that you'll you'll you'll you'll get rid of unemployment if you if you dig dig holes in the ground and get people to fill them up again or if the treasury filled bottles with banknotes and milton friedman said the same thing helicopter money you

just scatter money over over the country and that will get rid of unemployment you know between serious the german economy is a very strong economy but it is an export economy and its exports have been growing why because basically because china has been growing very fast in the last year or so if china's growth. stops but gets less if european if european growth falters as a result of these cuts everywhere if american growth slows down then the germans will not be doing so well and i don't think they'll be doing as well as they are now in over the next year i think they're going to face a moment of truth when everyone slowing down is going to be very bad for the german economy the german economy will slow down to you criticize the decision of the european leaders to withdraw all fiscal stimulation programs which have been operating over the last two years could this cause

a slump in logic. i think i think it can i think the the with the withdrawal of the fiscal stimulus is very is very risky because it's been like a lifeline it's been a life support. and everyone said oh really the big big problem is the hole in the government finances that they're that this spending much more than they're raising in revenue it's not the hole in the government finances that's the problem it's the hole in the economy that's the problem and you know if you if you deal with the hole in the economy the finances will get better automatically because revenues of the revenues of the government will increase and their expenditure on unemployment will fall so you deal with the economy and the budget will look after itself more or less i'm that's an exaggeration while leaving the economy to one side in one of your interviews you set that russia could provide military defense

to the european union under what conditions could this happen. well what i meant by saying that russia could support europe in security matters was that russia should become part of the european security system and i think the simplest way to have done that would have been for russia to become a member of nato which is i think something that putin wanted when he was president but they did they didn't want russia in but that would have been the simplest way but as it is russia should become a much more effective part of the european security system and not be outside it because the european actually european military is very very weak. the very two military power in europe the french and the british the rest haven't they do anything really but this small and there's no unity.

sort of no agreement to create something larger and russia has a has a has has good military forces and they're becoming increasingly modernized and specialized to the kind of work. that military forces have to do today which isn't by huge rule. but to the top of the counter insurgency operations peacekeeping operations and so on so russia could be a great asset for european security system and president medvedev has suggested a new security concept of that would be going to include russia and we should that we should take him up on that and really see we'll walk we can do with it because all through russia is part of europe it shouldn't be outside it. let's get else king thank you very much for a time. wealthy

british style sun it's time to. market why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into kinds a report. every month we give you the future we help you understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around the world. join us for technology update on our g.