>> hello, everyone. lce "the journal," in berlin. our headlines. more heavy losses onherang floor as market stumbled in the u.s. and europe. avid cameron says that the fight back has ard te days of rioting. the u.s. national soccer team takes on mexico in a friendly but can theew coach inspire the americans? so much for that rebound.

internationalto mke rallied early on wednesday but then the worldwide market sell- off kicked into tears. >> the dax fell over 5%. there are rumors that france could lose their triple a credit rang >> a paris was the financial hub at s rocked by volatility. they could lose their top-notch credit standing. th cdit rating agencies to deny it. president sarkozy interrupted his caono attend a crisis meeting. the result was austerity measures. among the losers, bankingit which have high exposure to greet dead. analysts blame -- for the lali. >> i am convinced that those

rumors are unfounded and spread by participants to make profits on market swings. the ecb will do their utmost to eliminate any problem in the banking sector. >> in new york, the positive mood from tuesday disappeared. the fed lost desi t ep interest rates low only listed shares temporarily. >> the a very real sense of fear in the overall market. the trading floor is orang ast always does. there is fear in the market and this is driven by multiple points which ldso a sense that there is a lack of calm in global markets. >>the dow jones was no exception to the bearh mood on wednesday. it also fell sharply. >> nothing to cheer about on

weesy. a u.s. bank shares led the charge. i asked if this is what we can expect. >> the market at this point is extremely nervo aalofhe rumors might go on with france and this did put pressure on financial stocks. look at the banking industry. monday, we had bank of america losing almost 20%. we had bank of america gaining almost 20%. baamic lost about 10%. depending on how the news is, maybe that is what we haveo live with. >> let's go to frankfurt where the new round of market free fall highlights how the sentiment is right now.

>> traders prepared for a very strong rebound. the recovery of german shares did not last until midday ading and the opening bell on wall street because the markets in new york went down sharply driven by concerns about the economy. financial shares have been hammered all over europe. there has been some rumors that there might be problems for the french. the banking shares in europe lost up to 15%. >> staying in frankfurt to give you the lowdown on the market numbers, if you have been on holiday, this will give you a nasty shock. the dax down well below the 6000 mark. it was down 6%.

the dow industrials ended the session in negative territory. from the trouble on the markets to the trouble in london. >> in london, the british prime minister had said that a fight back is under way to restore law and order where areas of arson and looting have shocked the nation. a police forces on the streets in london. groups have been out in full force. birmingham and manchester are the latest to be hit by the violence. >> opposition leader visited central manchester to see the damage for himself. politicians have been caught by the violence. there needs to be a debate on the reasons for the riding. >> the party will have to look at this and understand. why we have people who go out

and commit to these criminal acts. the truth is that the reasons for this are complex and not simple and we must resist simplistic explanations or responses. >> the government says that order has to be restored. "whatever resources the police need, they will get. whatever tactics they need to employ, they will have legal backing to do so. we will do whatever is as scary to restore law and order. >> the police have been authorized to use water cannons while officials are making space in prisons. nearly 12 unrest have been made since saturday. in birmingham, events took a deadly turn when three men trying to protect their community from rioters were run over and killed. birmingham police have opened a murder inquiry. the violence and destruction has left the country grafton with

one question -- why? >> one of the london district that has been hit is close to the center of the city. our correspondent went there and i asked to tell us more about the situation. >> it came to business as usual quite quickly. you can see shops boarded up. some of them are still open. if you talk to people on the street, they are quite confident that these rights scenes will not return to the streets any time soon but also because of the highly visible police following. >> david cameron has promised to fight back but to what extent is his government responsible for all of this? >> there is lots of discussions in the media and there are sweeping cuts in social budgets and which way these cuts have

played a part in these rights. the opposition has been very careful on political attacks on camera but that will change tomorrow. -- on cameron but that will change tomorrow. cameron will face some tough questions and about the government spending cuts in the social department. the clean-up operation here is well underway, the political cleanup will only begin tomorrow in earnest. >> thank you very much for that assessment. coming up later, we will take an in-depth look at the unrest in britain, stay tuned. is any chance of similar scenes here in germany? opinion is divided. we have a report on the inner- city district. >> unemployment is high here.

both its chairman and its sizable immigrant population are largely unskilled. while london is burning, it is peaceful here. german police fear that there will be the possibility for violence here. >> there is cultural neglect and uprooting, all of this makes for a dangerous mix. these factors existed germany. >> the german politicians to not expect to see violence as the time currently sweeping across england. they say that germany has a more robust social welfare system. >> there are lessons we can learn from london, we need to put all of our energy into social migration and it sure that young people don't feel excluded from society. that is the issue. >> politicians and experts are keeping a close watch on

troubled inner-city hotspots. they have not completely ruled out the possibility of violence. >> the u.s.s. increased their pressure on bashar all the sun falls regime. -- the u.s. has increased their pressure on president assad's regime. the regime's forces killed 15 people. the government troops are in control of an entire regime protest center. as somalia deals with drought and famine, the country's president has vowed to drive the militant rebel group out of the country. he is also offering amnesty to

rebels to put down their arms. the militia has interrupted aid shipments to seven somalia where tens of thousands are suffering from starvation. >> they are fighting for their lives. they are even a city, week, sometimes too weak even to cry. this is the worst famine that somalia has seen in 60 years. the hospitals can barely cope. for many parents, that the last hope for their children. >> i have been in the hospital with my daughter for seven days. she has severe malnutrition. she is showing signs of recovery, then god. >> unicef estimates that some 640,000 children are not getting the food they need. militias are still blocking many deliveries. that is why so many are undertaking the long trek to hospitals like these in the

capital. by the time they arrive, often it is too late. >> almost every day more than 50 children arrive at the hospital suffering from severe malnutrition, measles and diarrhea. nine have died in the past two weeks. >> the u.n. says that tens of thousands have died as a result of the famine. tens of thousands more will die soon if nothing is done. >> we have some shocking news from one of the biggest energy suppliers in germany. >> shares are at 11% on wednesday after the company announced a quarterly loss. they would like to cut costs by one and have believe euros a year. the government is planning to abandon nuclear energy in the wake of the disaster in japan. >> they have confirmed their first ever lost. the energy giant is responding with major cost-cutting measures including massive

layoffs. up to allow for -- up to 11,000 physicians could be affected. >> we regret working -- we regret losing workers. it is better to improve our business and to hold on to outdated structures. >> management says that the company is not viable without cuts. they lay the blame on the new tax on nuclear fuel rods as well as expensive gas projects. workers representatives say they cannot fathom why so many jobs would have to go. >> the company has come up with a number and this has shocked employees. you can imagine what is going on. they have simply stated a number. we consider the actions to be a fatal error and irresponsible. >> it is on clear which locations would be hit by the job cuts and how many would be

in germany. they're expected to qualify the situation in the coming months. >> tax evaders beware, switzerland and germany have been in a long-running dispute. under the deal, the swiss banks will impose a one off tax on germans who have already amassed wealth and strips of land. a rather flat rate will be imposed in 8 years. the deal will mean billions of euros in revenue for berlin. the costs in germany continued to rise. consumer prices for almost two and a half% higher than a year ago. higher energy costs played a role. edie doyle salt and 25% increase. economists are concerned about rising inflation in germany. there has been higher than 2% exceeding the target of the european central bank.

>> my heating bills have gone up. >> i am not looking at mine. >> there has been a major organized-crime bust in italy. the tories have arrested a 30- year-old. he was detained as part of an operation. police seized suspected assets worth 190 million euros. this is heavily involved in the construction industry and they are suspected of playing a role in the drug market. turning to some soccer news now, the u.s. will meet mexico and philadelphia. the gold cup final, the u.s. squandered a 2-0 lead to mexico

and ended up losing. the americans will be looking to make up for that blunder and the new coach will be looking to prove that he is the right man to help them. >> he is in his element as the new u.s. coach. the team made it to the final 16 during the last world cup but have since had some disappointing results. a friend against mexico is his first chance to inject new life into the team. >> we will give them a fight and we want to see how the players expressed themselves, how they take that risk, how they take the responsibilities on the field. >> he has avoided making any radical changes but there will be some fresh faces. he has a very simple aim for the opening match, victory. >> that is everyone's goal.

stay tuned.

>> it was apocalyptic, that is how one resident describes the scene outside his window on saturday night when the worst rioting in decades flared up. the unrest has spread as far north as manchester. thousands of people have been out on the streets setting buildings on fire and attacking the police. most of them are in their teens and early 20's. the looting has had little to do with the initial incident that sparked the violence. we have pieced together a timely basis and the information available. >> more riots but this time

above the capital in birmingham, liverpool, manchester. in london, 16,000 police officers were on the streets tuesday night to maintain order. this is a policy that seems to have worked. it was the death of mark duggan that set the events in motion last weekend. he was shot by police who claimed that he fired at them. they believe that he was active in the gangland and drug scene. many in his community believe that the police killed him in cold blood. in north london, rioters set fire to businesses. one police officer and several other people were injured. mark duggan's family distance themselves from the violence. >> this to be taken in my

brother's name. >> they paid no heed. massive violence spread to other parts of london, another flashpoint. the police sent these writers and that they were copycats. more than 100 were arrested. >> let's be clear, the violence that we saw last night had absolutely nothing to do with the death of mr. duggan. this was needless and opportunistic. this is completely unacceptable. >> david cameron called off his vacation and returned to the british capital but the unrest continued. on monday night, one man died in the violence. emergency services were stretched to the limit as this spread to cities outside of london. >> let's get some analysis on the situation now. we're joined by 8 -- from the

london school of economics. thank you very being with us. there is no doubt that many of these areas are deprived. is that what is causing this unrest? >> i think that is right. i think that in london you have a community of extreme wealth and extreme poverty existing so close to each other, and physical proximity. this breeds jealousy and anger, particularly those who feel excluded and did not have the access to the riches that they see displayed a round them, many people point out that in britain there is a growing gap between the rich and the poor, is that also part of the problem? >> i think that is very much part of the problem. the center of wealth is opening ever more widely. this has the consequence of this pudding many more people at the bottom of society and not

allowing them access to the labor market or the kind of education that they might have taken for granted. this will take some measures to relieve. >> don't go anywhere, we will join you in a few minutes. >> other nations have experienced unrest and social inequality and unemployment is a big problem in many countries. those problems have often spilled out into the streets. sometimes, the writing is sparked by a number of issues. years of frustration can reach a boiling point. in our next report, we look at the unrest has been seen in greece, spain, france. >> these images show french society in the autumn of 2005. riots were in the suburbs of paris, a series of -- started by a single event.

this gave way to violent protests and an expression of frustration among the immigrant population. politicians struggle to find a solution. >> what have we been doing for the past 30 years? we sent young people to camps and introduced social programs and it has not worked. we need two things. they need hard measures against those who don't seem to understand that this applies to them. >> despite the statements of good intent, the suburbs continued to burn. flowers commemorate a 15-year- old boy shot dead by the police. some have paid their respects peacefully. protesters used the occasion to vent their frustration with the

economy, a situation that would only get worse. >> less than two years later at the height of the debt crisis, thousands took to the streets. [chanting] >> they take taxes, they take those things that the working class has struggled. >> spain has also seen a wave of protests this year though they have remained peaceful. calling themselves the indignant, the spaniards are better educated than previous generations but are struggling to find work. the unemployment rate is 45%. >> the system is not working, the working class and up for

classes are paying the price of the disasters caused by the bankers and speculators. >> weather in madrid, athens, or london, politicians have been quick to express their shot at the anger displayed by citizens but are slow to provide solutions. >> examples they're from different countries, are there parallels? >> there are palos, of course, even though there are also differences. particularly in greece and spain, you have large groups of highly educated young people who are simply excluded from the labor markets and perhaps suffer from some dissolution. i believe in london, you are really dealing with the class at the bottom of society that is so structurally as good as they are a parallel society.

in london, there is also the issue of a gang culture that has emerged over the last few years. this seems to have exacerbated the situation and the sense that these gangs that fight each other, they have turned and unified. >> is anything that european governments should be doing to address these problems? >> absolutely. we need to fight the high levels of unemployment. my great committees are split it and are not brought into the mainstream. we also need to ensure pathways to education. >> we thank you very much for joining us. >> you're welcome. >> that has been our cloaked in depth. as we try to uncover the reasons behind the writing in

london. -- that has been our "in debpth"