rumors that portugal is being pushed to ask for one hundred billion dollars package will to discuss this and more i'm now joined live by a member of the european parliament is it really a very this is about as many thousands are joining us now we see officials shaking their heads to all this big reason darlin how do also denied that they need to be bailed before it eventually happened so we is portugal next in line for couch. i'm sorry if i didn't hear you perfectly well but well at this point of the debate in portugal while to admit that. i feel a certain schizophrenia because from the outside there is a. pressure mounts for portugal to. recur to the i.m.f. and the stability fund and on the other hand domestic news tell us that the government today presented its deficit numbers and that they were quite good that they have raised been able to do to lower our deficits to less than seven percent so while i think that there are mixed messages there are everywhere on the back on the background of great instability of the eurozone and of the great institutional weaknesses of the euro zon

. portugal's breathing a faint sigh of relief after raising over one and a half billion dollars in its yearly bond auction but it's come at a price with investors demanding high interest rates for risking their money in the debt strained country it's being seen as a test of whether portugal will need a years in bailout like a struggling currency part is greece and ireland total market cap is applicable scientists from palin university says portugal would cave better with its problems if it wasn't. 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

that. portugal's with a faint sigh of relief tonight after raising over one and a half billion dollars in its yearly bond auction but it's come at a price with investors demanding high interest rates for risking their money in the debt strain country it's been seen as a test of whether portugal will need a eurozone bailout like its struggling currency partners greece and ireland that two markers kerber spoke to us he's a political scientist from berlin university says portugal would cope much better with these problems if it wasn't an e.u. member. 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 ca

struggling eurozone members like spain and portugal need help there are concerns from germany which is pushing for a more comprehensive approach for more insight on this let's talk to danish morton . and his tales now waiting for us live here and so let's let's talk about this and the expansion of the e.u. bailout fund is the u.s. just digging yourself into a deeper hole what was your take on the proposal. well the big question here is how much money are we willing and prepared to waste of the taxpayers' money to cover up the wishes of the euro pratt's is evidence of that that the euro is not going to be saved just pulling good money after bad money or poorly spent money the very construction of the euro is a failure because we have tried all the federalists have tried to unify something which is quite clearly. so different that economies cannot be integrated fully and that's what we're paying the price for now that's what the taxpayers are paying. as for now so spending more money on a poor prachi going to bad project is not a good thing for the european union on a let's just turn

problems senior officials from the country have been resolutely denying media room is that portugal is being pushed to ask for a hundred billion dollar package but a member of the european parliament there it is says portugal is likely to be next in line to suffer from the cusp of the euro saying. there are mixed messages there are everywhere on the back row on the background of the great instability of the eurozone and of great institutional weaknesses of the eurozone that are ultimately the causes of all of this so. 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

how one of the great shows on earth makes its magic those stories and all the. portugal will try to raise much needed cash on the bond market on wednesday while trying to convince the 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 co

in germany even ones bank are still difficulties but the main issue is niall and portugal greece to be spayed officials who are related to the situation of a sovereign which is having an impact on the speaking making systems what do you think that the e.u. finance minister didn't come up with the measures like the street how strict stress tests could be in the future well what's the stumbling block and that's where the issue is that europe is doing its best to force to avoid the risk of default being greece it is helping island stands ready in case of need to help portugal and 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

portugal's prime minister repeatedly insisted that his country can deal with its own financial problems and does not need a bailout shows a socrates to continue with a strict staring measures such as pension cuts and tax increases well portugal managed to relieve some concerns as it raced over a billion euros in a bond auction but this might not be enough for it to escape the fate of bankrupt greece and are and experts fear portugal's demise could trigger spain's collapse and economy which could be simply much too big to bail out but for the national advice or market paul he says any survival package would not 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 able to 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 and the jury i

>> and portugal's freres -- the 10-year bond dropped in a highly anticipated auction. 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 qu

week portugal's prime minister repeatedly insisted that his country can deal with its own financial problems and doesn't need a bailout george socrates vowed to continue with strict austerity 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 the block's financial stability experts fear portugal's demise could trigger spain's collapse which could be too big to bail out but financial adviser to pauline says that any survival package won't solve the fundamental flaw 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

dot com . and this week portugal's prime minister repeatedly insisted his country won't be asking for a bailout from the e.u. because it doesn't need one shows a socrates said the country was on track to restoring its economy and vowed to continue with strict stare any measures such as pension cuts and tax increases his comments follow speculation the 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 the walks financial stability and exports to europe portugal's demise could worsen the spanish economy financial advisor marco pierre poly says a bailout wouldn't 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 on 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

will be out of a vision. now this week of portugal's prime minister repeatedly insisted his country can deal with its own financial problems and does not need a bailout so they socrates' valid to continue with strict austerity measures such as pension cuts or tax increases portugal vanished to relieve some concerns as it raised over a billion euros in a bond auction but this might not be there for it to escape the fate of bad and our want this fear that portugal's demise could trigger spain's collapse an economy which could be simply too big to bailout but that ash will advise our mark opiates are poorly says any survival package would not solve the fundamental flaws in the concept of the you are selling. this is not in any kind of 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 their debt moving forward in reality what's happening is burdening this country with these countries

portugal shares an abcess parent a g.s.r. mind the strongest for most rising three point seven percent up to a bus announced an order for one hundred eighty new jets from indian budget carrier in do go h.s.b.c. continues its winning streak taking from tuesday its shares up three point two percent off to enlist at citigroup looked at the courts raising all the stuff to find from hold you case for it see it's getting hotter percent of texas posting strong gains a one point three percent. and here in russia the r.t.s. and the mice it's a trading in the black both i giving more than one of the hospice sent. telecom has jumped eleven percent on the my successor good nafta guys sound off on to exchange their ten percent stakes in national telecommunications push as in the us telecom the price of oil continues to advise produce a straw snafus month that lead us aldersgate of almost two percent this hour there also has the terms to pre-crisis levels and a smaller trading media story why on the expectations the company will live up to six point two percent of its stock to around at around two hund

to provide a loan if the struggling euro zone members like spain and portugal need help european finance ministers are meeting in brussels to discuss the plan already concerns from germany which is pushing for a more comprehensive approach. mortons messerschmitt says the e.u. strategy is not a permanent. bailout is always only a temporary solution since the cover up for the lack of. unity within the euro zone is evidence of that that the euro is not going to be saved just pulling good money after bad money or poorly spent money very construction of the euro is a failure because we have tried all the federalists have tried to unify something which is quite clearly. so different that economies cannot be integrated fully and that's what we are paying the price for now you can only have a common you're a common currency if you have the same financial policy that's also why the commission has suggested or demanded that all of the euro countries now shall have their budgets accepted in brussels before the national parliaments can discuss the budgets you can only have a common currency

portugal's economy material stocks are taking quite a beating here with the sector losing one point four percent the dow is off four point six percent nasdaq point four percent. european stock markets also in the red the banking sector is coming under pressure again over portugal's debt in london for years down well around half a percent oil giant british petroleum is slipping off a leak at the transom alaska pipeline forced it to virtually shut down production of its biggest fields in north america and frank for the dax is off almost two percent now with commerce back down two percent boys are back point six percent. meanwhile in russia trading will begin on choose they where at the end of the holiday season here the past year was a game of two hogs for the russian markets the head of strategy at u.b.s. and moscow explains how investor attitudes changed two thousand it was very difficult here for the russian equity markets it was characterized by increased volatility that was a function of what has been happening globally like concerns about sovereign defaults concerns about capitalizat

country though been resolutely denying media reports that portugal is being pushed to ask for a hundred billion dollar package but member of the european parliament really to viruses that portugal is likely to be next in line to suffer from the curse of the eurozone there are mixed messages there everywhere on the back or on the background of great instability of the eurozone and of the great institutional weaknesses of the eurozone that are automatically the causes of all of this so all. certain stage it reports of all goes to the fore 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 modern america misses a horsey have told us in december that they will do everything to save the euro that is that the union has not done its homework from december to january and now the pressure is back again possible throughout all center of a looter virus the work of the u.k.'s border agency is being slammed in a report by british m.p.'s the document

organized by unions and human rights groups and in portugal activists and workers gathered in the capital in lisbon to protest low salaries the government is being blamed for not doing enough to fulfill its promise of increasing the minimum wage. was killed at least eight people as it ripped through a supermarket in central kabul not far from the british embassy among the dead three foreigners a child of all six others were injured the taliban has claimed responsibility saying that it was targeting security contractors comes as violence in afghanistan reaches its worst level since the u.s. led invasion in two thousand and one. what has been a long time coming but finally a key nuclear reduction treaty between russia and the us has been fully approved by both sides present dmitri medvedev signed the start ratification document on friday the last step in a lengthy process. reports. after more than a year of hard line negotiating and ten more months of internal dispute it's finally done moscow and washington are stripping down their nukes which is less missile but this is a very sign

hundred billion proximately and portugal is in trouble and greece is still in trouble so i don't think it's going to work on the course of the german constitutional court challenge as well which may well it does allow the germans from actually backing any rescue package you know under their own legal rules so i think the euro's in serious trouble i think i welcome the end of the euro politically but i do acknowledge that the economic cost of the euro clamping will hurt as all the many economists now doing to agree with you today they're saying that they won't collapse imminently and that germany has such a vested political interest in supporting it that it will keep on doing that is that the view from inside the european parliament well i mean the german has a lot of political interest in euro's a political project it was in fact i became u.k. . when i was sitting next to george osborne and the former german. girl ring's former air ministry of berlin which is now the finance ministry and it worried me there in those many years ago just before the euro was was launched because they were

end of the day countries like greece and portugal and possibly we should never have joined the euro. they are now trapped inside the economic and with a whole set of policies. and i think the more we build up the buy out the morning with always. and this really is a tragedy if at any point in time the german people have been asked initially whether they wanted to give up the deutschmark they have said no and if you ask the german people now do they want to pick up a liability that in financial terms will be six times bigger than the liability they picked up when eastern germany joined them twenty years ago. so my guess is that the german finance minister the german chancellor will make skeptical noises will voice a bit of disagreement but in the end my guess is they will go along with it because they are part of this european political class that have created this monster. and in the end they're going to do whatever they translate what they. buy out and by carrying on this lunatic policy of buying their own debt and then after last week's auctions in portugal patting themselves on t

immediate cash on the q c for bailout fund fell flat this week even though portugal and spain are teetering financially and the finance ministers meeting full six of the wealthiest nations including germany and france reluctant to boost the four hundred forty billion euros that. bush. says pumping up the fund will only keep struggling in an economic stranglehold. i think what they're doing here is they're reinforcing failure at the end of the day countries like greece and portugal and ireland and possibly. should never have joined the euro in the first place trapped inside of economic. policies that. i think the more we build up. the more in fact. this really is a tragedy because these people. we have. had people actually killed. going to get worse and what it really is a frank assessment which is the reason. we're. in the hall in the few countries possibly france as well that there is an optimal. but for the north and south of europe to be stuck inside a monetary union is never ever going to work all we are doing. what you've got behind this whole european project when we talk ab

credits interest in the company could boost the price. and despite portugal successful bond issue on wednesday experts are still wary of the european union's prospects their chief strategist at the time capital told us the political and economic structure of the eurozone was to blame i would think that default to some point probably is imminent or unavoidable i should say but the buy themselves time and the problem with the euro even though i'm a supporter of the euro area such the problem when you have this imbalances is that you have a situation where countries so different big differences structurally have the same interest rate so it becomes extremely inflexible and this at some point has to give probably with the likelihood of a default if that happens you know forty five years. to the euro is possible at this time we're not forecasting that yields on russian state bonds drops to a four month low as high oil prices boosted confidence and the world's largest energy.