anchor: this is "dw news" from berlin. german leaders about to write a racism. -- vowed to fight racism. meanwhile, coming up on the program, turn around tuesday. stocks in the united states and europe rebound, but is the turbulence over? china and japan still deeply in the red. the united states condemns what

it calls a clear miscarriage of justice when a russian court sentence this in ukrainian filmmaker to 20 years hard labor on terrorism charges. i'm sarah kelly. thank you for joining us. one day after chancellor angela merkel condemned protest as repugnant, suspected arsonist torched a shelter, depriving 130 migrants of a safe place to sleep. a few hours later, a threat targeted the headquarters of merkel's coalition partners. german leaders are seeking to reassure incoming migrants that they are indeed welcome, but the images of smoldering ruins tell a different story. reporter: germany's's social democrat party received a bomb threat by telephone.

security officers ordered an immediate evacuation of the building. there was no bomb, but the shock was real. >> this was a threat to us all. this was meant as an attack on our constitution, and a attack on our democracy, but the social democrat party will not back down one millimeter to such threats. reporter: germany's deputy chancellor visited a shelter on monday, promising refugees living there government help. since then, he and his party have received a wave of abuse from far white -- far right supporters. too often, the threats materialize into real attacks here in authorities had planned to house refugees in this support center, but on tuesday, the center burned to the ground. authorities say they think far right extremist are behind the

attack. the interior minister makes a point of visiting an accommodation center in lower saxony asylum-seekers live here, but the shelter is hopelessly overcrowded. he makes a point of taking time to talk to refugees, but there's little he can do for them at present. >> we've been outraged by the attacks that have been taking place against asylum-seekers in the places where they live. but the attackers are not in the majority. values. reporter: the minister is sure most germans want to help the many refugees arriving in their country. sara: when we look at the procedure for refugees entering

the european union, it is that they must apply for asylum in the first member state where they arrived, at least according to dublin rules, but germany has suspended those rules for refugees from syria. most of them reach the eu by crossing the mediterranean into italy and greece. these syrians are leaving the island for the mainland, meaning syrians in germany will no longer face the prospect of being turned back to their country of entry. let's break down what is going on with our correspondent, simon young, from berlin. i want to talk about these attacks we've seen against asylum-seekers in germany. the majority of germans actually support asylum-seekers in the country, so why are we being these attacks, and what is the mood -- why are we seeing these attacks? what is the mood? simon: a majority of posters say they believe germany can get a grip on the situation, despite the huge numbers of people

arriving. 800 house and expected this year alone -- 800,000 expected this year alone. ministers and government have said that does present a huge challenge, but most are optimistic that challenge can be met, and we've seen a lot of germans come out to offer people help. having said that, a lot of people have grown increasingly alarmed. these attacks have gone on almost on a daily basis, attacks on asylum hostels or places designated as such. not many cases in which asylum-seekers themselves have suffered harm at the moment, but they have certainly seen this threatening behavior on the street. today, the whole thing took on a new level, as we saw this bomb threat against the headquarters of the social democrat party, so i think a lot of people around germany look at these incidents and the preparedness by a small minority to issue violent threats, and that has alarmed a

lot of people. sara: it is certainly alarming, especially in a country that rides it on just prides itself on openness. germany has taken measures to increase that openness to refugees from syria. walk us through why the country did that. simon: this is an announcement at a federal agency that has a responsibility for migrants and refugees, and they've said that in the case of syrian refugees, they are not going to apply these dublin rules that would require them to send people back to the country where they first arrived in the eu. they said they are doing this, taking account of the special humanitarian plight of syrians, who have come escaping from war. they are also doing it in order to speed up the asylum process, which means these people can be dealt with more swiftly, and that is a big advantage, a big relief to them.

sara: absolutely. thank you very much. stocks in europe and the u.s. rallied on tuesday, getting back some of those massive losses from monday's major selloff. kristof joins us. is this the happy ending? kristof: i don't and we have seen the ending of this whole mess because the fundamental questions and concerns investors have regarding china have not changed. on tuesday, the chinese central bank may have cut the benchmark interest rate, but it has done that now for the eighth time since november hoping to increase lending, to prop up business, and to pull up plunging stock markets. european and u.s. indices rallied big time, but before the shanghai composite index again sought a sharp drop. the situation in china is not only business but also political leaders concerned -- has not only business but also political leaders concerned. the german and french foreign ministers offered a surprisingly blunt judgment of chinese

economic growth prospect. at their meeting on tuesday, they cautioned against underestimating the dangers looming in china. germany is also warning people will be waking up to reality is very different to what they had previously believed. even in terms of his nose, it seems that long-established certainties, processes, and rules are now in a state of >> -- a state of flux. on tuesday, the self-confidence was not shaken at all. in hong kong, the interest rate cut the chinese government showed an immediate effect. investors seem to believe the measures will stabilize the chinese economy. on the frankfurt stock market, the blue-chip dax recovered all of its losses. some economists argue a slowdown

in china's economy will not be so bad for german businesses after all. in new york, stop presses were up all day and lost only towards the end. still, investors were calm. >> i generally feel pretty good. good to see a recovery, so i'm happy to see things bounce back today. kristof: in europe and the u.s., investors losses remain within bounds for now, but investors when the crisis in china is far from over. stock markets mostly recovered on tuesday, but doubts remain. our markets reporter in new york joins us. during the day, the dow surged. towards the end of the trading session, those gains just evaporated. how come? jose luis: basically, uncertainty took a toll on investors with the dow jones losing more than 200 points by

the end of the session. we also have to take into consideration that the s&p 500 is still fighting with a correction and nine out of its 10 sectors are actually in correction territory. there was some optimism at the beginning of the day, down on the trading floor, but apparently traders remain cautious, and that's why we saw that selling in the last hour of the trading session. kristof: if we look at the optimism throughout the day that you mentioned, was it just news coming from the chinese central bank? jose luis: that new interest rate cut coming from china help, but also oil prices and new home sales in july, the largest increase this year. also, only 21% of the market expects the fed to increased rates in september, so that always brings some room on the trading floor to keep buying,

even if volatility is still quite high, but in the end, we saw uncertainty taking a toll and investors selling in the last power -- last hour of negotiations. kristof: some say the storm we're seeing is far from over. we just may be in the eye of the storm. what do people on the floor think? jose luis: traders here think u.s. equity markets will come out fine even if markets in china keep worsening. global risk still high, and if the fed increases interest rates before the year and, a stronger dollar could take it -- could keep taking a toll, so for now, it is more of a wait and see attitude on the trading floor. kristof: thank you for your analysis.

>> it will be interesting to see how this story develops. sara: and how markets in asia open in a couple of hours. thank you. now to some other stories around the world, french prosecutors have opened an investigation into the case of a 25-year-old moroccan man suspected of planning a terrorist attack on a high-speed train last week. the man was subdued by a group of passengers after he opened fire. prosecutors say he watched a video calling for jihad shortly before launching the attack. a court in south africa has found eight former police officers guilty of the murder of a mozambican taxi driver who died of head injuries in a prison cell after being tied and dragged behind a police car through johannesburg. the incident was captured on video and sparked nationwide protest. a russian court has sentenced a ukrainian filmmaker to 20 years in a prison colony. prosecutors accuse him of

organizing a terror cell in the crimean peninsula, charges he sharply denies. the u.s. and amnesty international say the trial was on there and unjust. reporter: a 20-year sentence, but you would not know it to look at the ukrainian filmmaker. he remained upbeat as the sentence was read out. the father of two has been convicted of terrorism charges and weapons smuggling. his codefendant, an environmental activist, was sentenced to 10 years in jail. both men, who had spoken out against russia's annexation of crimea, were accused of setting fire to the office of a pro-russia political party last year. they were also accused of landing to explode a statue of lenin. since off was arrested in may 2014 during a demonstration against the annexation. he wants crimea to remain part of ukraine. as the verdict was announced in

the russian courtroom, people broke into ukraine's national anthem. ♪ human rights activists have long maintained that this has been a show trial for love falsified evidence. in the ukrainian capital kiev, demonstrators demanded freedom for both defendants. >> there's nothing we can do to stop this russian machine, but we're here to show our solidarity. we will do everything possible to get these two men read. -- two men freed. sensoff said in his testimony he was tortured in detention. his lawyer has called this the height of injustice. he also said they will appeal the conviction. sarah: still to come, we will focus on the future of europe. the eu concept is increasingly

being modeled around the world, while some of its fiercest critics reside right here inside the eu. you will hear from an analyst with a fresh perspective. that and more in just about a minute time -- a minute's time. i'm sarah kelly. don't go away.

sarah: welcome back. you are with "dw news." german leaders vowed tough action against xena phobic violence after an overnight arson attack on a refugee shelter. it's time to talk you about now. our big topic this week is what the future holds for the european union. some love it, some do not. it seems now that more than

ever, people are divided in their opinion of the eu, but beyond european borders, the union has become a model others have tried to emulate. it has been an inspiration for other regions in the world. southeast asia, or example, 1967 saw the founding of the association of southeast asian nations. today, it has 10 members, including large countries like indonesia down to tiny ones like allowed -- tiny ones like laos. their challenges are not that different from the ones faced by the eu, but they handle them differently. here's more. reporter: both unions have a similar goal -- regional integration -- but their models could not be more different. while the eu has already established supranational institutions, asean's members would rather retain their national sovereignty. >> i think the eu is something unique, different from other

types of regions. this is a regional institution that agrees with this eu notion with a nationstate has to lose some of its sovereignty in order to make sure that the cooperation becomes much closer, the integration becomes more intense. reporter: but there are signs of progress. asean countries want to establish a joint economic zone that allows free movement of labor and capital without tariffs at the end of the year. that poses a challenge for the asian economies, which are at very different stages of development. that's why they are looking westward. >> we will be able to gain knowledge from the eu, how it is narrowing the development gaps between the countries in the eu. reporter: but the eu cannot serve as a blueprint for asean.

"if rotation that is common in much of asia. >> it would be not good for asean to say that europeans are impatient, but this is how we see them. but in asia, particularly in asean countries, we are patient. we will find ways to reach a common consensus on important issues. reporter: and consensus is one hallmark of a common cultural identity. that is something asean countries still find hard to define. >> if i go to europe and talk to different people, i think they see this identity emerging and they see problems that all of them have to deal with. in asean, it has not progressed very well. they have not started this process of creating this cultural identity within the region themselves. reporter: the eu, much like asean, started as an economic

and political union. getting to a common cultural identity is a much collar order, but it is one that is necessary to bind regions together in both continents. sarah: some of the biggest critics of the european union come from within europe itself. right-wing populist parties have used issues like migration to whip up xenophobic and anti-foreigner sentiment. these parties are often hostile to the idea of a united europe. in recent years, eurosceptic parties have made significant electoral gains across the political spectrum. reporter: britain's ukip wants out of the eu. podemos in spain would like a different eu. one party in france would even like the eu to just go away. these are political extremes on the far right and the are left, but all of them are attacking the very principles of the eu --

these are political extremes on the far right and far left. >> we have radically different positions on many issues, but we want to give the people back their voice and fight the european and technocratic dictatorship. reporter: marine has repeatedly claimed france's being led from brussels, with success. the right-wing populist could easily be a factor in the next elections. nationalistic also fits the bill for nigel and his you could -- his ukip party. britain needs to leave the eu, he claims, or the country will be flooded by immigrants. alexis tsipras, a left-wing populist, managed to become prime minister.

his enemy number 1 -- angela merkel and her focus on austerity. that is what the left wing has rebelled against. >> for a greece without rail out, without austerity, without guardians, a greece that is democratic, progressive, and at the end of the day, socialist. reporter: no more guardians from brussels. that's what they all want. unsurprisingly, a majority of people in populist strongholds tend not to trust the eu. according to the european commission, in france, 51% distrust the eu. in pajamas, spain, it's 54%. -- in podemos, spain, it's 54%. in greece, it's a whopping 73%. all of these countries are above

the eu average, but that is still 46%. that is fertile ground for europe's populists, if they are from the right or the left. sarah: for more on all of this, let's bring in a transatlantic assist test transatlantic analysis and an expert in eu foreign-policy from brookings institution. thank you for joining us. we just heard about the populist movements. that's not the only threat facing the eu. there's also the migration crisis, financial crises. you have the view from the united states. how is this being viewed their? costanza: right now, europe is a minor consideration is the american presidential campaign heats up. pretty much everyone's attention here is consumed by bernie sanders and donald trump, above all, but inasmuch as people think about europe, they are worried about what seems like the disintegration of europe,

european politicians flailing under the onslaught of these different crises that you have named, the publics being distrustful, turning to populist parties. sarah: perhaps not a lot of thought in the united states, but what about in europe? do you see the current mood becoming a real threat to the african the union? costanze: i think it depends. what we're seeing now seems like the worst combination of potential crises in europe since, say, the end of the cold war, and that is something we have forgotten. it seemed as though the cold war could turn into something much more dangerous, as the soviet union fell apart, as we wondered what would happen with russia's nuclear weapons, and as yugoslavia fell apart, ending in the balkan wars, which were very bloody. certainly there is a tremendous

amount of risk, and it's the hour for europe's politicians to get this resolved, to come to some consensus on solidarity regarding greece, regarding other countries in financial and economic duress. where this onslaught of refugees that need to be distributed in an equitable fashion across europe. sarah: we heard from the populist. do you expect them to win out, or do you expect greater integration to win out, to cope with all these challenges? the stanza -- costanze: for the populist to win out, they would have to be much better organized and have something like a political program. the program of the populist is negative. it is criticism of a caricature of the european union as -- i don't know come the playground of decadent and fascist forces. none of that is true. still, what's necessary now his

leadership from european politicians to broker compromises on distributing refugees on a way forward or greece, on a way forward out of record youth unemployment. this kind of thing when not happen on its own, and it overwhelms even large naionstates, as we currently see in germany where angela merkel took a very long time to understand that she needed to address the refugee crisis publicly. sarah: thank you very much for that perspective. we just want to remind you of the top stories we're following for you before we go. german police believe right-wing arsonists are to blame for an overnight arson attack on a refugee shelter. i ended the empty building that was being prepared for migrants. -- iron gutted -- fire gutted the empty building that was being prepared for migrants.

the shanghai stock exchange ended trading deep in negative territory. the dow also lost more than 200 points in late trading. more coming up at the top of the hour, but you can get all the latest news and information on our website, dw.com. you can also follow me on twitter. i will see you next time. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]

ayoub el khazzani you're watching live from paris "france 24 ago a moroccan man who boarded a train with an assault rifle and hundreds of alerts was planning a terrorist attack. -- beforefor a judge a judge for the first time. crossedn 2000 migrants into hungary from serbia in a single day. to reachly trying wealthier countries in northern europe.