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tv   Headline News  RT  February 26, 2013 1:00pm-2:00pm EST

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postcode hangover italians are facing political deadlock with no clear winner in parliamentary elections meanwhile approaches party led by a former comedian that makes a stunning debut. poles apart russia and the u.s. seek agreement on how to end the bloody syria crisis i made it deep divisions between the key mediators. plus world powers look to change iran's nuclear course that major talks with the easing of sanctions to potentially offered in exchange for the suspension of uranium enrichment apparently the main deal on the table. that evening on lucy calvin when you're watching r t well on to our top story now
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it's the election that was meant to dig a debt britain italy out of crisis and it's now adding a political stalemate to economic distress no party or coalition has managed to secure a clear majority in either house of parliament with the country now stuck between options on the left and right there's also a new major force emerging with a party led by a former comedian winning a quarter of all votes party's arena has more. back with a vengeance he's just a ship that was. a man of some political experts have pulled a political corpse just a couple of months ago has made tremendous actually seems to be holding a really good cheer. in the senate but again he is tied with. the number one position in the senate now if we look at the lower house however parliament does seem like the majority of the seats there he has already claimed his victory there but you have to understand that this is not because so many people have voted for
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him but it is because of the italian election law which does give a lot. to the party. even by the tiniest margin and that is exactly the situation in this case because berlusconi as well is a newcomer but for the law are all essentially tied in the parliament as well so what we have at this point is a total deadlock we have ended up with the hung parliament and in fact that's what some of the newspaper headlines. this morning is that the country is governable at this point there's no clear solution and it does seem like free elections are a very very high possibility for it's. the third biggest economy in the eurozone what happens here is vital for the economy on the continent so the bankers and politicians over in europe waking up with their hearts pounding because there is certain total. total disparity in the people's votes the population is lost the one thing that they have. they have had enough of monty i don't want to be technocrats
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from brussels it seems like that's why i'm not really saying yes to any one single party but you have said every sound know it feel the policies that have been implemented by him and so it's how you doing everything why both seem to show that they have had enough of the brussels idea of a the right way to step out of the economic crisis and just willing to do anything even voting for a man like that because a lot who is totally inexperienced and is not really a politician basically voting for anybody but monkey and this is this is what's happening in italy right now professor of economics. says that neither of the forces likely to play a major part in italy's decision making a have a valuable viable plan and how exactly to turn that country around italy is in the critical need to have been reformed to reassure the markets and i don't see it in the programme that the center left gauge or the agreed address so the problem is
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that they're addressing some parts that corruption and honesty but they're not to address in the economy is the way that should be there's going to be clear. over default to a partial default and i would have thought that's why it's something that might this clear the markets because italy has two thousand billion euros in day six and it's six times bigger than what greece has and the international economy doesn't have the you know bit to salvage from to take care of a problem of this magnitude. well as the markets lose ground sharply at the prospect of a hung parliament in italy and the kaiser report turns his attention on the fixing of interest rates take a look. in this case there were thousands of e-mails between thousands of traders or actually a few dozen traders saying set the libel rate at
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a rate that is not true we get it for me and they're saying that this is somehow complicated that we can't do anything about it because there are signs of innocence outside this circle of the actual writers an innocent acting community somewhere in the universe so should we apply a stand of guilt to this admission of guilt by it just b.c. yes i just recently admitted that there was laundering money and financing terrorism but somebody somewhere buried in a back something in a parallel universe perhaps so can we call it just the security can we give you say oh oh oh wow the story thousand mexicans headless because of the money laundering that i just created it is terrorists but should we care because after all somebody made it is an x. somewhere so they're not guilty. well how to end the bloody conflict in syria that's claimed at least seventy thousand lives in the past two years that is of course what russia and america's top diplomats have been just discussing in berlin as their role in their role as
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mediators are on peter all over is in the capital the meeting has just concluded peter what do we know so far. while russia and the united states are incredibly important if we all to see an end to this two year conflict in syria it was of course one of the major issues that were discussed in the first meeting between surrogate lover of john kerry since the american soak over the role of secretary of state rove was addressing journalists he said to the hunt assurances from john kerry that when the secretary of state meets with leading syrian opposition figures in rome on thursday that he would be insisting that there would be immediate talks talks a soon as possible between both sides in the conflict this is a potentially huge mood. there has been deadlock really how to solve the crisis in syria for a long time now with the united states on the opposition saying that assad to step
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down as president it would now seem. not is we're seeing a softening over opinion. we also heard from rove saying that a group of syrian opposition leaders had contacted him saying that they were ready to sit down for talks as soon as possible love rove saying in return. they had to be named who these people will they were going to sit down to do the negotiations and that we could see negotiations happen as soon as possible he was expecting not from john kerry to john kerry to come back and tell him that after his meeting in rome so you'll have also saying that both he and the secretary of state expressed a huge desire to see peace in the middle eastern country now peter of course said the syrian issue isn't the only one that's been dividing foreign policy between the u.s. and russia talk a little bit more about some of the issues that the two countries haven't seen eye to eye on as of late. well this hasn't been the best of times for
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us russian relations and there was plenty of things to talk about one of the other major issues that was touched on was a ban on the adoption of russian children by american families now this came into place after the death of a three year old boy originally from russia while he was in the chaos of an american family he became the latest in a line of russian youngsters to lose their lives while being looked after in the united states john kerry expressed his deep regret at the death of the boy and said that a full investigation was underway into what led to him dying he also promised for all that much more information would be given to the russian side about who is adopting children who are children that have already been adopted into the united states who they are with which family stay with where they are and how they're
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doing in the general life so they pace to be some movement on the issue john kerry is expressing deep regret at the death and promising movement from the u.s. side all right well thank you so much for keeping us up to date on those critical talks between john kerry and sergey lavrov artie's peter all of our reporting there well another one of obama's recent nominations this time the new military chief is about to face his latest battle coming up on this program we report on where chuck hagel stands after being all but hung out to dry in a bitter partisan standoff. all right while germany has been boosting its arms sales to various countries that have exactly had the best of human rights records we're talking about countries like saudi arabia bahrain and qatar now some folks have complained of this as being morally reprehensible i don't know how about that but let's look at some of the graphics that we have here one. point four two billion dollars in two thousand and
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twelve that's how much germany has sold to the gulf states this past year alone in two thousand and eleven though is a much smaller figure about five hundred seventy billion or million there we also have some facts about how much that's increased through over the times two thousand and eleven looks like it's nine times more than in twenty eleven. graphics very exciting stuff and how we also spoke to an expert and he believes that this isn't the best really move for germany take a look at what he said. policies and it is also gave a lot because german law said that is not a. lot of that even in conflict with the region is a zone full of conflicts not only between you and your neighbor country also there are a lot of kids and you know it is so important to have some foster to the most beautiful
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girls it is totally unacceptable for us they believe the support of you will have to. germany the results we need from the region so it is only a profit business and it's a profit business on the back row i hope you will right and the people who are suffering because they are under pressure and because of this is why i don't buy the fact that. after the break we'll take a look at tough talks over iran's nuclear ambitions stay with us. wealthy british style stock.
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market why not. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines tune in to kaiser report on our. world with. science technology innovation all the latest developments from around russia we've got the future covered. and. you.
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still. should. you know. welcome back you're watching r t well aside from bringing you the news we often have some pretty wacky collections of videos about all types of topics this one belated one is a video that a russian couple had actually posted online to show off their daughter's driving skills and it put the couple in the spotlight instead well the clip has created
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outrage on the web and cause authorities to launch an investigation all because the girl in it is just eight years old let's show you that clip now. go to at least one hundred your mother is filming it. all right there you name it comments from the would have fainted if she saw this. contact will posted on social networks. well these are just some of the fathers commons added to the fury of internet users in russia of course the video there showing an eight year old girl driving shoes swearing on the road pretty scary stuff i certainly know it's one of the reasons why i don't write or drive in russia. as you can see there she is driving and also actually looks like she's not wearing her seat belt pretty dangerous stuff as you can imagine this has created quite a stir on the internet you could argue dot com and watch the whole thing if you want that video of course this is generating plenty of debate online and so too are
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some of the other stories that we have for you on our web site let's take a look at what we have brains rulers have banned the import and wearing of what's seen as a worldwide symbol of protest the guy fawkes mask and to find out about the latest phase of pro-democracy crackdown also a standoff on the high seas environmental activists clashed with two japanese whalers ships more dramatic footage for you on our web site. iran is admiral and it's a right to peaceful nuclear energy should be recognized by the international community but it remains unclear whether it might make concessions and curb its
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uranium enrichment if the west softens its crippling sanctions the first day of high level talks with six world powers in kazakhstan has left more questions than answers despite being described as constructive well for more analysis we're joined live by middle east expert all the rizieq sir thanks so much for taking the time to speak with us it doesn't look like there's been much of a breakthrough on this first day of course are going to continue into wednesday but what expectations do you have from these talks. well certainly when talks take place it's better than the absence of talks however as you indicated there isn't much optimism that there will be real progress made in these talks which took place we have to also bear in mind that the new u.s. cabinet is just getting in gear we have tomorrow for example the new secretary of defense is expected to be declared or expected to be confirmed by the senate john
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kerry who also just getting in in gear with the meeting here with sergei lavrov so i think it's too early to be very optimistic in addition to the fact that i think on the u.s. perspective the congress still has a charm call in the pro israeli right in the u.s. still has obama i think by the true call that i will do its utmost to prevent obama for a making any real serious concessions or entering in through a statesmanship diplomacy with the islamic republic of iran we have heard some optimistic language john kerry stating in a meeting in london or during a briefing with reporters that he wants mutual respect with iran however if we look at the behavior if you look at the offers which were made i understand that the lifting of sanctions but rather giving of sanctions i think that the pro israeli roy and the israeli club if i could say in general still has a significant amount of control and leverage on u.s.
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policy towards iran and five plus one talks and if this trend continues i don't think we could expect much because iran has made it clear that it will not be all down to talks or to pressures with a gun pointed at its head you know syria i mean it seems to me that you know here after year month after month we seem to be sort of experiencing the same kind of situation over and over again what hope is there for progress if as you say the u.s. congress is essentially keeping the obama administration in deadlock preventing them from making any concessions iran is sticking to its position how can we possibly expect to move forward here. well i think the fundamental issue to look out to look at sorry is how bold obama could be in confronting benjamin netanyahu and confronting the pro israeli right in congress now there are some optimistic factors to point out too for example with respect to chuck hagel obama
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chose to stay with this and to be i think more courageous and stuck with his choice and hagel is said to be appointed that is one example we have of obama standing up to the pro israel lobby and the probe is ready right now on the other hand what we've also heard is that right after these talks in credit has done and wendy sherman the undersecretary of state for political affairs in the state department will be heading to used to fill the israeli is in on the talks so i think what we have to focus on as i said is the u.s. israeli perspective how much the u.s. is bore them till now the indicators show that the u.s. is still toeing the israeli line in how to deal with iran and also i think it's becoming increasingly clear that there is nobody in washington and if ever since the islamic revolution until today has shown the boldness to take a different approach simply because the i'm a noise in the islamic republic has become a trend and it's too scary to abandon that demonizing process and as i said we have
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to look at the you know the boldness on the american side one point i just could mention there might be some advance in the region which would impose on obama and the administration to change their status towards iran and that might be for example some common interest between an american and iran in atlanta stan combat thing al qaida you know assistance which iran could provide so if america it's decrease or it's declined continues it might find itself more in need of iran and then deal with iran on or equal basis and that could in turn open the road for some . big diplomacy seven. good statesmanship so i think we have to weigh the reactions of what happens the events on the ground they could be a big take maybe a positive outcome however with no such events on the ground i don't see unfortunately obama having the boldness or the live bridge to challenge not on your whole approach is really right and quite briefly on netanyahu what do you expect
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israel's next move to be if there is no progress as all indicators seem to show on these talks with regards to iran well i cannot rule out the possibility that the not on the whole government might actually go ahead with a unilateral strike although although that is extremely risky on all levels including how the american public might react to the scenario of israel dragging america into a confrontation which would draw the not be dragged into so that it always remains a possibility especially with netanyahu because netanyahu views iran the war is seen as the biggest iran or phobic and views iran for through somewhat of an ideology called lens as his mission he believes his mission in life is to confront the islamic republic of iran especially because iran is a big supporter of hezbollah defeated israel so why think of that scenario and does
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remain if they stand before the impasse continues well thank you so much middle east expert ali rizieq weighing in there. well of all the economic penalties imposed on iran over its nuclear energy program the oil export ban has hit the country hardest but despite the fact that it's undoubtedly damage the economy overall it has also helped strengthen other industries in the country as r.t. as maria faucheux reports. the international ban on iranian oil cost the country around for two billion dollars in two thousand and twelve according to the u. but despite this huge gap in iran's income officials have some good news in the tough sanctions normal experts have increased by least thirty percent from ego. so what mine looked like a bad thing or may actually play a positive role we've been asking our government for many years to decrease dependence on oil to at least fifty percent was too high up around eighty percent making our economy too vulnerable that some say today is
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a historical opportunity to finally get rid of this dangerous oil dependence and iran actually has a lot of alternative resources to feed from from well known copper it's to dates via minerals and stones between wanting destry in particular appears to be thriving these days iran's famous discussions have been going through tough times in the last couple of years heavy frosts and terrible droughts have been damaging large parts of the harvest but this year with the country under tough economic sanctions the stoushes are doing better than ever. our currency rio fell by almost forty percent in october but i sell the statues both at home and abroad and i benefited from price rises that you read in the stashes of explosives to more than a hundred countries worldwide but even if farmers cannot send them abroad they're confident business will remain brisk thousands of industry workers also benefit which has them overcome the country's highest of inflation. the amount of
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production and price of years affect our salaries every year the add ten to twenty percent of my salary this year i have some bonus to my daily payments but producers seem to be more protective than exporters while international sanctions don't target the food industry current measures affect the banking system making financial transactions and hard not to crack the also penalize the banks that. are not in u.s. and europe they may be in china or south america the penalize them for dealing with iraq to the mean that's the main problem which is actually really good internationally if oil is a black gold the vista shows must be a green one at least for iran locals say these small knots have great how benefits especially for the man well to the country it also gives strength iran's biggest mall expert has always been a significant source of revenue and as the latest round of sanctions poshest ever
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bites it's also something iran may have to rely on even more than before. from iran the right time for world update and we begin in a colombia where colombian coffee growers have launched with police this during a rally where they were demanding more government support for their industry it is struggling due to a drop in international price that workers want the state to help by increasing subsidies demonstrators are blocking roads in a number of towns but security forces said such tactics would be tolerated. nineteen people have died in egypt after a hot air balloon packed with tourists exploded in mid air before falling three hundred leaders of all halted gas cylinder was apparently to blame for the blast tourism officials say that people from japan france and britain were among the dead the pilot recklessly survived but is said to be in critical condition.
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or. rocket has been fired from gaza into israel causing some more road damage but no injuries it's the first attack since november's ceasefire and it's enough for tally ation after a palestinian man died in israeli custody under disputed circumstances last year saw major conflicts between the two rivals with the death toll of more than one hundred fifty palestinians on one side and five israelis on the other after a long partisan fueled standoff barack obama's pick for secretary of defense is to be voted on later tuesday chuck hagel drew the ire of republicans from the outset and some of his views put him at all his own party and a lackluster performance at his initial confirmation hearing didn't help either party's got a chicken that's more. a number of republican senators including john mccain say chuck hagel is not qualified for the job but they indicate that they're going to allow the full senate to vote because what happened ten days ago was that the senators voted to postpone the vote and to continue the debate so it's all likely
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that they're going to keep stalling the vote over chuck hagel is confirmation and he will be confirmed there's no doubt about that the votes are there but the humiliation that he had to go through during these last few months sent a message all by itself right now chuck hagel is this repenting figure who keeps apologizing for the positions he had taken before for the statements he had made before including that war with iran should not be an option including his criticism of israel's actions and other foreign policy views that he had expressed as a senator the congress effectively showed their readiness to destroy anyone who would allow themselves to descend from washington's core foreign policy belief so despite all the apologizing that mr hague old has done one senator said he almost had tears in his eyes as he apologized for his earlier statement about the israeli about the influence of these really a lobby so despite all the repentance chuck hagel has still been under attack in some point the conservative media got so carried away that they misinterpreted
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someone's joke about charles association with a group of friends of hamas and they were in such a rush to break this story that they failed to check whether the group even exists and it doesn't so chuck hagel has been under attack not just for his previous statements but also for what he had never said and done. well if confirmed as the next secretary of state table will have to cope with a company long accused of using its cozy government ties to judge the hands of justice last week private contractor firm academy formerly known as blackwater escaped with little more than a slap on the wrist over new a new arms smuggling scandal well earlier he was spoke with michael o'brien take a look what he had same. they're just follow on charges after the the debacle at mr square in baghdad in september of two thousand and seven. course that was where the seventeen iraqis were were killed these are follow on charges that were. pushed against black warhorse that that's the old name the company technically doesn't
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exist that way they can you know technically illegally sever the relationship they drop the charges three people were just to walk to the charges were reduced to five thousand dollar fine slap on the wrist i think it also there's house arrest for four months so. and the other thing too is they they claimed that they were buying these weapons for the cia and the cia said we don't know what they're talking about and the thing about it is who knows i mean maybe they were but it seems to me that the cia has ways of. getting their own weapons well thirty minutes of news isn't enough for you we've got more after a short break stay with us. there's an old urban legend that says that the u.s.
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army stopped using circular targets for rifle practice because the soldiers would be hesitant to shoot people on the battlefield the logic is that if you practice shooting something that looks like an enemy soldier you'll be desensitized about killing real enemy soldiers so again the logic is to practice shooting at what you want to kill so you won't hesitate and speaking of not hesitating the law enforcement targets incorporated has created a special line of paper targets for police called new more hesitation so it's on these targets well maybe mexican drug cartel members or l.a. street gangs nope children and pregnant women yeah law enforcement targets offers a product to desensitize police from hesitating to blow away women carrying the unborn and innocent children and it's even sicker than that i bet law enforcement agencies are probably buying these things up by the thousands but that's just my opinion.
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live.
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welcome back britain's unemployment benefits aim to provide a safety net for anyone between jobs looking for their next career opportunity only for some people the payouts are so attractive getting out of bed doesn't seem to be
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worth it artie's probably explains i couldn't really believe my luck to be on. when it was just a dream i thought this is amazing you know british government is helping me out you know i needed somewhere to live and i don't have a job not the was you expect to hear from someone who's fallen on hard times housing benefits allowed stephanie to rent a flat in this sport a block in london's glitzy mayfair and by myself i could always barely afford a studio in central london when i was working and. looking for a job and so intro it's a sprawling and complicated system but one that allows a family of four to claim up to thirty five thousand pounds a year from housing to child care and unemployment benefits i've known people on benefits and they've been able to afford a new car being able to afford to go broad on holiday i've never actually been
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abroad on holiday perform and my so how long. can they afford good. when they're on benefits. and afford to do the welfare state was all the idea of a well be turning in his grave william beverages an idea of the five giant evils of society squalor ignorance won't. disease some of the very qualities that critics say the system encourages beverage was. wealth should only provide you with subsistence levels of support and it should only do so for a short period of top seventy years down the line and welfare spending is the biggest item of government expenditure milking it is so widespread it's become a source of satire you know. disability allowance i told he worked at dawkins. do you think you can get managed just ability
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allowance he's got a bone to. westminster now wants to make it clear that benefit on to a career path and coming through the doors of your local job and say yeah in and year out filling in a few forms and claiming your money is no longer an option but for people that have been through the experience of claiming unemployment benefit they say it's all too easy to get money and no one's really checking whether or not you're genuinely. artsy. here's our report private bradley manning is about to face a new round of pretrial hearings he faces a number of charges for allegedly handing over of classified data to the wiki leaks website the most serious is aiding the enemy which could land him behind bars for life mass rallies have been held in over seventy cities across the world to mark the one thousand days of his detention attorney kevin explains why many believe his treatment is unlawful. judge did recognize in the motion dismissed for the solitary
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confinement manning was treated improperly and did take over one hundred days off were of his whenever a sentence of any he ends up with so the judge doesn't recognize the government did by the law and went to bars that's a positive it is and i hope that the judge will recognize that delaying this trial where they have is enough reason to dismiss the case that a certain point all of the government's. and the outrageous government conduct need to be recognized in the keys and it is easily dismissed especially since he should not have served in one of the handlers if you will of ford you've got to first look back and recognize when the crimes were committed and hold people accountable who did it and unfortunately president obama did not do that and say he's holding whistleblowers accountable he's used the espionage act more than every other president combined it's a disgrace it's a nontransparent administration is ever to stop people calling for reporting crimes of the united states and its activities abroad. the african peacekeeping force to
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be based in mali will cost donor nations twice the previous estimate according to the ivory coast foreign minister the price has risen to almost a billion dollars and france could be planning to keep its own rapid reaction force in west africa after its military operation there and it's a move that will only further destabilize the region says lawrence freeman he's the head of the african desk at the executive intelligence review magazine. what's going to happen now is that you can see a reliance on special forces from the french of the us so additional support it's going to come from the united states and probably lawsuit from great britain and the african troops are going to be then left with the task of actually carrying out the a limited rooting out the jihad is to extremists and this is going to be very coarsely so france will stay there as they expected in various ways u.s. and britain will stay there and expand their operations and the african soldiers
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are going to be the ones who are going to be dying carrying out this attack on the islamicist and this is all not going to lead to any positive solution north africa the sash there is a hell they're all going to be. the state allies these countries as a result of this policy and that's exactly what tony blair announced on very third he said north africa is where we're going to be for the next generation. also had for you an extended report on palestinian women who read write us their own safety in order to help safeguard that of their children here's a preview. i would like. to know silence. does it. every day is a struggle. for our children sleep soundly at night. we
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are in palestinian women working in the israeli. we've done more for our kids than our as. we are ten times in this life. well it's time now for the latest in business news with natasha and the taj it seems like it's going from bad to worse in italy that country stock market is down is dragging the rest of europe along with it what's going on there absolutely and the bond yields are also on the rise which is indicating mounting concerns about what's happening in the parliament there i'll tell you all about what that means for the rest of europe in just a couple and i'll be looking forward to it. he
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says. he. says. hold it hold it. hold it hold it hold him. people. are lower blood. pressure. but speak. her raise her. son when i. played. a bomb
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explosion good luck. just spent the money and i'm a. little now trying to find a better little. fifth.
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it's forty two minutes past the hour here in moscow watching business on r.t. with me that the showing a scam. kier arctic uncertainty that's how some describe the outcome of italy's
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parliamentary elections the country's first since the introduction of the unpopular austerity measures the main concerns relate to the former premier's silvio berlusconi and his support group that rejects economic reforms this group won and expectedly high number of seats in the senate having no clear majority in the parliament means a deadlock and that of course scares politicians and economists alike the yields on italian government bonds jumped on tuesday indicating that the markets feel uneasy about lending to italy and the stocks are not doing any better than the long wars was deep in the red on tuesday posting its a largest decline since april and a giant marble middle finger that's gracing the square right in front of the stock exchange in milan as perhaps give an indication of the italians attitude about it shirts open to interpretations perhaps this on the big you are a symbol means of the stock market has given the middle finger to the rest of the
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world but the latest data is just as explicit italy's public debt still at one hundred twenty seven percent of g.d.p. in two thousand and twelve and it's expected to rise this year making it the second highest in europe after greece to find out how the situation in early can affect the rest of europe i asked nick parsons from the national australia bank in london if he thinks berlusconi is really the evil that he's made out to be or is it more about the potential deadlock in the parliament. mr berlusconi is probably got the position he wants which is the king maker that's to say he's got enormous influence in the process without necessarily having responsibility for it and one would imagine that that's a position that suits him in men's slee i think what he would be seeking to do despite the fact that he's always argued that he will not make any coalition or any
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agreement of any kind with mr monti from the center left. mr berlusconi's good his own personal agenda and i think if he could strike a deal such the threat of prosecution or the possibility of immunity were to be granted to him then i think we might well see mr both berlusconi having a change of heart from some of the tough rhetoric we had in the campaign so he's got to be in a position where he wants to be and i think you'll be seeking to gain maximum personal advantage as well as political advantage from this poll of course most of the investors would like to see some continuity when it comes to economic reforms in italy but there is really a group of the caught of us that believe that austerity measures are completely counterproductive longer term in fact and that the eurozone should find a way to actually stimulate its economy instead of suffocating it do you believe
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that we've always felt that austerity led growth was a contradiction in terms but it was nonetheless necessary in the near term in order to try to at least stabilize public finances and to show some willingness to get to grips with the scale of the problem but i think there's been a remarkable cooling of the pro austerity fervor over the course of the last three or four months but it all really stemmed in october when the i.m.f. decided to call when they. blish the piece of research suggesting that the school multipliers needed to be recalculated now that's a very very dull phrase and it was a very. very technical working paper but what the i.m.f. suggested in its research was that previously they felt that if you cut a euro of spending the economy would shrink by sixty cents and your debt to g.d.p. ratio would improve they recalculated their own. workings and they
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came to the conclusion that in fact if you cut one euro of spending the economy would shrink by one euro forty and your debt to g.d.p. would actually go up not down now that was a major piece of research in october and a major change of heart and ever since then those people who've been really urging austerity found there are fewer and fewer voices will listen to them and i think we think that was a crucial changing point and ever since october of last year the mood again stuart austerity has developed pace and gathered momentum and we don't think it still is going to be from here implementing austerity who ever forms the next government and indeed across europe across all of southern europe austerity is in the wane austerity is on the way out and that in turn is good for the future of the european
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economy and good for confidence in financial markets. and let's now see how the rest of equities in europe performed on tuesday it was a sea of red pretty much across the board the only two european benchmark indices that managed to withstand the downward pressure with those of ireland and denmark london footsie ended the day as you can see one and a third of a percent down germany's dax was down two and a quarter percent on wall street where the trade as active this hour the focus is not just italy but on the fed reserve chairman ben bernanke speaking to the senate banking committee he made clear that the bond buying program was indeed working there was absolutely no indication that he intends to slow down or to ended so no change the monetary policy that's a positive signal for the markets and as we're seeing right now both the dow and the nasdaq are gaining the nasdaq is ever so slightly and that's also thanks to
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a bit housing data and consumer confidence reports now moving on to the currency markets the euro was pretty much flat to negative to the dollar as for the ruble it ended the day a lower to both the dollar and the single currency as you can see right there and here in moscow equities ended the day in the red with plenty of volatility on the international markets and russia's main driver of crude oil being down on tuesday the blue chips pretty much had nowhere to go but down ross center on the bank of moscow war among the only stocks that managed to buck the trend. slower than expected economic growth rates are dogging not just the developed but also the developing countries that's according to the world bank and has decreased its forecast for russia's g.d.p. growth to just over three percent in two thousand and thirteen and that's not bad compared to negative growth in europe but the world bank's lead economist kasper
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wrecked her criticized russia's or oil dependency and praised them advantage to slash energy revenues in the budget. it's very good news prime minister has pointed to this important. russian budget if you look at the headline numbers it looks like the budget is very strong for the federal government is balanced but it turns out that it relies a lot on revenues from oil of the revenues of the federal government come from oil but if you take that out it turns out that there is a large deficit and in fact that deficit and on oil deficit has increased from two thousand to two thousand and twelve and is bigger than ten percent of g.d.p. so prime minister medvedev is very right that it's important for russia to diversify its revenue sources for the budget from oil into other sectors where do you think the russian economy will be able to operate effectively on such decrees
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oil revenues so if you look at the record over the last fifteen years or so we did not see diversification happening russia last summer made a very important step by becoming a member of the w.t. the world trade organization this means that russia is recognizing the importance that global integration ultimately is the way for the russian economy to modernize within the w.t. process russia will have about six years or so to liberalize tariffs and to bring in foreign investment into the economy so if you look of the remaining years of this decade i think this could be a very important phase for. russia you've said that the russian economy looked very saw last year how sustainable is such performance the russian numbers are
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somewhat sol it we projected growth will there was three point four percent last year will go to three point three percent this year so slightly lower a large part of that is because. worst external environment just tough external environment and then we expected to pick up the two thousand and fourteen to around three point six percent but overall of course we know russia's the mission is to grow at five percent and not at three percent and we know that before the crisis russia grew at seven percent so if you take a longer perspective if you can see that that growth of around three percent is probably not enough for russia's invasion and that's why it is so important to emphasize the reform agenda both at the macro level as well as at the structural level and these reforms will help to reduce the dependence on oil but it will also help to improve growth overall in russia. and that's all from us in business this hour lucy will bring you all the latest news and headlines after a very short break keep it here.
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wealthy british style it's time to explain. markets why not. come to. find out what's really happening to the global economy with mike scott brown no holds barred look at the global financial headlines tune into kinds a report. and
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