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a letter to. say don't need to go and. read this in the kernel was her job as a retreat. washington takes the first step to approve the long awaited deal to increase the u.s. debt limit just a day before a potential devastating default. destiny of the bill is now in the hands of the u.s. senate after months of political bickering will it be enough to afford financial crisis. russia says u.n. action that could help bring an end to violence in syria but once against excessive measures that could lead to a libya style intervention. the voices of tens of thousands of anti-government protesters in easy calling for the prime minister to step down are going on reported by the international media. and in the business we examine why the optimism from the u.s. avoiding

a dead default has been particularly short lived for the markets join me for a warm that another business bulletin. just after nine am here in the russian capital you're watching r t thanks for joining us now to the top story in the lower chamber of the u.s. congress has passed a last minute deal to prevent a devastating full scale default after months long political confrontation well the only remaining hurdle for the legislation is senate approval which is expected later on tuesday artie's lucy cough and i'll visit washington with more. not a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it averts the self imposed potential crisis of a u.s. default which would have been the first time this country faced could have

defaulted in its history what we do know in this legislation is it does sort of cut spending by about two point four trillion dollars over the next decade what that means in the short term for the u.s. economy is potentially a lot of feeling of growth now we have to keep in mind that the united states has grown the g.d.p. has grown by just a mere one point three percent in the second quarter we saw that unemployment rates are still astronomically high at nine point two percent and so a lot of economists are saying this is not really the time to be cutting the spending to be capping spending it does of course satisfy a lot of the political desire by some of the more tea party oriented republicans but it does potentially threaten domestic spending meanwhile we also have to keep in mind that this deal doesn't actually do anything to assure world markets about the long term direction of where the u.s. economy is going a lot of the big critical decisions are left to a sort of super committee

a bipartisan committee of lawmakers which is really just another way of saying they're kicking the can down the road so they don't have to make those difficult decisions now this whole battle over the debt limit is kind of a proxy war an ideological proxy war between the republicans in congress and the democrats in congress what we saw with the past election is the rise of the so-called tea party wing of the republican party and ideologically what a lot of those folks want is they want a lot of major cuts in government spending almost no government spending with the exception occasionally on defense they also want to lower tax rates they believe that this is the way to really stimulate the economy now this is diametrically opposed to the democrats worldview the democrats argued for you know closing tax loopholes. for example well cup corporations and other life march companies they want tax reform they want a social spending for the poor and they don't want middle class americans low class americans to sort of face the brunt of of the economics just

a crisis but really what this is all about and of course we wouldn't have seen this this whole fight connected to the debt limit if republicans didn't want to make a lot of that point and we have to keep in mind that the two thousand and twelve election is coming up for both the congress and of course president obama and a lot of political analysts are saying this is just another way for the republicans to try to embarrass the president to make them look bad the irony in all this is that neither the left and nor the right really liked what came out of the deal at the end we saw one democrat said that this was a sugar coated satan sandwich you lift the bun and nobody likes what they see they certainly don't like what they see in this deal and of course by creating this special commission that will sort of figure out where to cut spending over the next few months that issue is still going to come up right in time for the elections so no one really wins in this deal but jason johnson a professor of political science says there are no winners in the u.s. debt deal with president obama no exception. who wants to claim victory for settle

for and that's all that's left congress's approval ratings have dropped to twenty percent the president's approval ratings have dropped no one wants to claim victory over a bill that no one is really happy with so we're not going to hear a lot of crowing you're not going to hear a lot of people so for a while where know what you're going to hear people say let's move forward and try to get their other policies through before the end of the year it's going to a huge impact on two thousand and twelve at least in the short term or overall it's most of who overrated because overhead yes strangely he still has a higher rating now because reagan did at this point in his career he did at this point in scooter or jimmy carter so he can recover if he can reassert leadership and do something about the economy is still sixteen months away but a president has got to do something to reinspire the public because those laws. well the risk of america's possible full scale default has resonated far and wide to be a shooter brings us global reaction from new delhi. world markets here in asia

are rallying the stocks here are rallying people are obviously happy that this debt deal finally passed chinese newspapers are calling this entire u.s. debt deal debate fair response to the bill and even a moral so although people are celebrating the fact that this did pass there is a lot of cautious optimism here well it's important to note that a she has a huge vested interest in what's going on in the united states that is held by asian countries china being number one szczepan being number two so confidence has really gone down here another thing that a lot of people are worried about is the fact that two point four trillion dollars is said to be cut in the united states spending but a lot of that hasn't been decided and seeing as how long it took for the jet deal to be finalized a lot of people are worried about whether or not the spending cuts will actually become another sort of political game many critics of this deal are thing that this

isn't going to do anything to help american unemployment which directly impacts the asian economy as well as you know asia is the manufacturing center of the world so is the unemployment problem isn't solved in the united states that also means that consumer confidence goes down for america and that means that they're not going to be buying exports from asia so that can really impact the people's jobs here in this continent so people are definitely worried there's also been a lot of talk about the fact that the dollar has been a some of the lowest rates we've seen in in the past year and so there has been a lot of muttering here in asia about perhaps an alternative reserve currency or perhaps looking into a basket current the including japan and china as well you can all mix professor patrick chovanec believes that the deal is just a sticking plaster for the u.s. crisis. i think it highlighted the fact that there are growing concerns about

the big gap that's emerging between revenues and expenditures not just immediately but especially in the out years ultimately cutting. cutting cutting spending and raising taxes those things can provide an interim solution in terms of revenue but they don't really provide an ultimate solution the ultimate solution is to get the economy growing again and there still is the possibility of a downgrade of u.s. debt because this is this compromise didn't reach the levels of savings three to four trillion and that some of the rating agencies said that they wanted to see in order to avoid a downgrade so there still is some uncertainty but i think this is taking a lot of the more immediate uncertainty out of things and the markets hate uncertainty above all else they might not like this as the best outcome but they would prefer a certain outcome and this is the least what this provides will russia is keeping a close eye on washington's political struggle to resolve the crisis prime minister

vladimir putin says the american economy stays at risk despite the deal which means that washington can no longer be a symbol of economic stability around the world. actually there's nothing good about it we're just postponed making more systemic decisions this colossal debt fourteen trillion normal means that the country has been living on credit which is really bad for one of the world's leading economies this means they live beyond their means and put a part of that burden on the entire world's economy to some extent they sponge on the world's economy and on them on a political position this means that firstly other reserve currency should show up in the world not just the dollar and the euro should be consolidated and you should come up with a regional reserve currencies the ruble can become a regional reserve currency. and coming up ahead in the program under reported voices. i haven't seen anyone from c.n.n.

or fox news or any other big news channel here and it's really sad we also deserve a chance to be heard out. tens of thousands of israelis demanding that their government stands down all say the international media is turning its back on the country's problems. and moscow says limited u.n. security council action on syria could bring quote good results in helping stop the ongoing violence in the country russia's un envoy vitaly churkin warns that any measures must be restricted to solving it not aggravating the conflict the security council has held a closed emergency session on syria reports government forces there killed over one hundred protesters on sunday moscow has already issued its strongest condemnation of the violence calling on both sides of the conflict to refrain from using force

or russia's been cautious about international action on syria fearing a repeat of what it calls the violation of the un mandate on the libya along one day the e.u. slapped a fresh round of sanctions on damascus washington's also. calling for action against president bashar al assad's regime but a former u.k. basser to syria told r.t. that internal developments in the country are likely to oust the leader. the economic sanctions are not of themselves going to bring down but what will undermine him over time is the fact that the economy is collapsing it is a truism of syrian politics that if he loses the sunni middle class support from damascus and aleppo to a lesser extent. he will not be able to maintain his hold on power and when they see that the road he is leading them down is leading to economic

disaster then they are more likely to turn against him the moment he has talked about reform but not done anything he's talked about checking the security state but in fact as unleashed it i don't see that intervention militarily would be anything other than disastrous within syria all syrians would object to that would be the one thing that might unite all syrians behind the government in fact. so i don't see any prospect of it a western officials have ruled out military intervention in syria but economic sanctions against a mask is are being stepped up while middle east expert joshua landis thinks this will eventually backfire on the syrian people. all of the syrian opposition leaders who have met and elected executive committees have all demanded that there be no foreign intervention now of course foreign intervention is a very broad and gray area there is military intervention like libya but there is

also economic strangulation of the country which could come along the united states already has sanctions fairly severe sanctions on syria the west feels it needs to do something it doesn't want to stop trade you know we've tried sanctions in iraq in iran libya they haven't worked very much and when they have work they starve the people and not the government and that's the danger of sanctions they feel good because you feel like you're doing something and you could tell the opposition you're on their side but they in fact they often hurt the people you don't want to hurt and we're following events all the events taking place in the middle east where the unrest continues on our website you can go to our team dot com to get the latest news updates and videos and waiting there for you right now it's option police clashed with activists of the long lasting demonstration on cairo's stuff we're square trying to disperse of those angry at the interim government for a lack of political improvement. it's also on our website

a hacker group who hijacked the twitter page of the norwegian mass murderer anders breivik claimed the breach was an attempt to undermine the killers on my posts and ideological statements from. him and a wild west meets the east in russia where people turn into how boys and indians for the start of the annual cowboy festival. in the israel foreign media are being accused of burning their heads in the sand over coverage of the biggest anti-government protests the country has seen in decades well tens of thousands of people fed up with deteriorating living standards are staging demonstrations calling for prime minister binyamin netanyahu to stand

down but as paulus leader reports from tel aviv protesters voices are simply going on heard by the rest of the world. tens of thousands on the streets of israel angry today and protesting for change but is anyone listening or going to zero a lot of the foreign media want to see more of an action movie and this has been very violent it's been very hadn't been violent at all it's been very positive. well into week three the largest demonstration in israel in over a decade and how did a.b.c. c.b.s. and n.b.c. coverage they didn't a younger woman set up the tent while the editors of france twenty four b.b.c. and sky coughed up just a few meager seconds perhaps not even that interesting to. back. in the studios ok there's a protest well what exactly is a protest a social protest for the revolution it's not the same kind of story that they're

used to it's not as big and dramatic as some of the bigger revolutions happening around the middle east and i mean isn't surprised by the worldwide lack of media interest he's worked in the israeli press for decades reporting from media both foreign and local there is a box that the international media has put israel in and israeli palestinian conflict or so it is really syrian conflict and anything that doesn't kind of further into that. type of of news item which is unfortunate mistreats has been dubbed top your corner by some of the people here an optimism perhaps that they can bring down the government in the way the neighbors in turkey is square. but where's the cameras there were warning nonstop till they put you up so that just makes hundred wayas and others angry for nine days she's been camping here furious that she can't make ends meet as

a university student to make sail said that when egypt decided to stand up and say we've had enough and where eleven. they've decided to say we've had enough the media was all over there i haven't seen anyone from c.n.n. or from fox news or any other big news channel here and it's really sad we also deserve a chance to be heard out but according to independent media consultant jeremy rudin the protestors need to be patient has really reached international proportions yet it's out of the government. this is like an inside. story and that is a bit of a problem when you're looking from overseas trying to figure out what to cover it's not that you know the economy is collapsing but long before the economy collapses the protesters him might have to throw in the tone because as demonstrators have learned to run the world without the international press and without the push of a foreign governments a protest can go only so far. television is

a liar. and a blogger danny schechter says that the reality of life in israel often goes son noticed because they contrie only attracts coverage for its role in conflicts. many americans think somehow the israeli government is very popular the leaders of israel get a lot of attention in the american media israel is presented almost as a monolithic country when it's actually an extremely divided country a massive protest of the kind we've seen in israel about just the economic realities that people there are experiencing is something americans have no understanding of because there's no context in the reporting israel's only reported in the context of its conflict with iran or its conflict with palestinians the actual reality of life in israel and what's happening to people there and how this right wing government in israel is handling the economy is something that we never

really hear about whatsoever it's a very unstable situation the economy there is very unstable as well you know when you look at the middle east generally speaking they talk only about the arab countries only they have internal discord never hear about israel's internal discord and the fact that this uprising essentially is taking place in israel while the same time as one going on in syria this one going on in egypt you know shows that the same pressures are you know being experienced by israeli people as well which is inflation economic pressure food prices rising oh all kinds of economic uncertainty. well more news is coming from the easy where the a prime minister has announced he is ready to discuss israeli borders with palestinians when given netanyahu has agreed to negotiate

a possible return to pre-one thousand nine hundred sixty seven territory lines now israel has been occupying land in the west bank for palestinians hope to build their own state since the sixty war was over forty years ago and peace talks over borders have been stalled since last september due to construction of jewish and jewish settlements in the area. afghan officials say at least four people were killed and ten wounded in a suicide bombing in northern afghanistan when an attacker blew himself up at a local guesthouse two other insurgents broke in and then gauge police in a two hour shoot out this comes two days after eleven people were killed in an assault on police headquarters in the south of the country. japan's energy operator tepco has detected the highest level of radiation be

a fukushima nuclear facility since the march earthquake and tsunami hit the plant the reading it taken between the first and second reactor buildings registered at levels considered a fatal to human health of the company and governments say they remain on target to bring the reactors to a safe state of cold shutdown by january tens of thousands of people remain in temporary shelter after a no go zone around the complex was in force. a legendary russian military helicopter which has been in service for decades is coming back to the front line in afghanistan where the u.s. has bought over a dozen choppers from russia for the afghan security forces are. reports. again it's is the nickname soviet soldiers gave to the strong sending wind of afghanistan or twenty years ago they regarded as their main enemy as they struggled

through air missions over high mountains in extreme weather now it's these the soviet designed and why seventeen which made its name as of guided survivors. the engine of this helicopter may not be the most advanced but it's well protected from the destructive sound unlike many of its alternative is very powerful and perfect for the extreme climate of afghanistan it will be able to operate here for about twenty five years. the u.s. led mission in afghanistan will end soon when nato is troops go to m.-y. seventeen's will make it come back to face the afghan is whence once again russia will ship twenty one helicopters to afghanistan to help the country's security in years and pilots work together to perfect and ease operating of m y seventeen and while it seems quantum physics to me afghan pilots are already familiar with the machine many of them trained under soviet air force instructors even now twenty

years later speak perfect russian you know when. i graduated from a pilot school in the russian city of christendom in one thousand nine hundred four when i got back to afghanistan to serve in the army we only had soviet aircraft those machines were the best to get to the most difficult and isolated parts of the country with the us will be for afghanistan's m.-i seventeen's something which put american helicopter manufacturers in a spin with congress and using russian military aircraft the countries had plenty of helping hands after the soviet invasion and russia provided millions of dollars worth of military hardware and wrote off a ten billion dollar debt to the u.s.s.r. but it wasn't enough if nothing else it is the most american where. of thinking that if you ask for something you pay for there so that's why i think it was for me it was ridiculous in a way because it sounds like a socialist approach now the deal is sealed russian engineers are working to

assemble the helicopters to m.i. seventeen's prove that military might doesn't always mean advanced technology as long as it's got the tough stuff for the terrain and they've beaten them guidance wins before and then we go r.t. as an. op next it's a business update with kareena. hello welcome to business as our very creative alec thanks for joining me the united states has avoided a debt default but the optimism that has been particularly short lived for the markets instead investors are focusing on the poor state of the world economy also concern is the fact that washington will be cutting spending by two and a half trillion dollars over the next ten years. we do you in plays we're going to see some significant cuts in public spending in the second half of the year exactly at a time when the u.s.

economy is slowing down so obviously i can use to imply some good old divisions downward revisions in green growth united states and united states is still the beauty quantum in the world i think the two are going to see some growth down double digits in the world and such kind of environment usually russia doesn't do very well we have done a couple of calculations we estimate that if. growth united states for example is very easy to reduce by one percent growth you in russia could actually suffer by two percentage points which is not non-trivial nontrivial impact. looking at the markets now or prices are under pressure following a disappointing report on u.s. manufacturing boosted concern over crude demand light sweet is trading below ninety five dollars per barrel while brant is losing thirty five cents and it's trading at over one hundred sixteen dollars a barrel and precious metals are gaining this hour as investors look for safe haven gold is a quarter of a percent while servers almost a percent in the black asian stocks are in the red investors are concerned about

the slowdown a slowdown in u.s. manufacturing japanese exporters away by strong the yen with the tender down over three percent and banking stocks are among the worst performers in hong kong industrial and commercial bank of china lost three percent amid reports of a major share placement. here in moscow the markets will start trading in just one hour. rows over a percent on monday with energy stocks among the main gaiters. investors have game confidence over the u.s. debt resolution but mark rubenstein i have seen metric believes they will remain focused on the other side of the atlantic indicators about the health of the world economy. a lot of this was going on sidelines particular the second june the second part of the week i anticipating in the u.s. labor market rate on friday morning and this statistics that has been coming out now is sage is being painted a mixed picture and that's why i think

a lot of into investors are going to be trying to stay on the sidelines until at least this number comes out and particular this is going to coupled with a seasonal slowdown in august so. a lot of investors given all the uncertainties in the market prefer to sort of stand aside law ends and take conservative positions but i mean we're still in the bull market and this is just the pause and i think now when we pause in the good time to look at their winners or rather maybe losers . that's all the update for now but remember a fine wall stories on our website are. facts.

wealthy british scientists are some time to. market. fund. why.