debt downgrade in europe's debt wound refuses to heal he's pretty sure it isn't asia's third largest economy india with the latest outlook from the region. the asian markets are tumbling today which is what many analysts predicted on friday when this credit downgrading rating was released but obviously this is what many financial analysts had predicted on friday we were already starting to see the markets tumbled on friday in reaction to the u.s. debt ceiling debate and these new credit ratings downgrade so the asian markets are reacting very strongly they have a vested interest in what's going on in the united states they are holding three trillion dollars in united states debt so everyone's watching very closely here to see what's happening in china is the number one holder in u.s. dad chip pan is number two they both have reacted very strongly to this crisis china calling all of this immoral and responsible and saying that the united states must to deal with this immediately and obviously there has been

a lot of talk about moving away from the u.s. dollar as the reserve currency in the world and obviously there's been a lot of talk about adding asian currencies into that of basket currencies that would be used in substitute for the american dollar the cheese seven the leading industrial countries in the world actually had an emergency phone call yesterday addressing all of this and that was one of the things that they had to talk about they also issued a statement saying that the united states must deal with this crisis immediately so asian markets are definitely being impacted greatly by what's happening in the united states. what is the nations which hold the share of american government debt bonds on its bonds as the chairman of the hong kong based credit ratings agencies telling aussie. would be. country and a shrewd try to that was right there which means that they're going to buy. the

country not simply u.s. one person who is. giving such a long way to. the. the budget cut you know all of us in the coming years. the market to be one of. the coming coming years so. banks definitely will tighten lending money corp will be short of funds. whole economy in the long term and short term. the russians also expected to feel the pain they paid in a couple of hours time with friday trend ending in the negative territory with his move from outside the major almost yes exchange. we saw russian shares dive in line with the global markets at the end of last week and of course save the weekend we saw the credit ratings agency standard impose a downgrade of the u.s. one notch from this aaa rating but now the kiss that downgrade happened all to close of trading on friday we have to wait until the markets open here ten am in

a couple of hours time before we can fully assess the impact of the loss of america's aaa rating now some analysts predictions have pointed towards a possible initial negative impact the possibility of an initial reflex panic selfish as a whole though on the more optimistic side they've also said that there are they think that traders will be able to resist a black monday type of situation the much of the markets as he said we're expecting something like this could potentially happen and other analysts have been quick to point out as well that the double a rating of the u.s. now still that is the first time in the u.s. history that that's happened is still a reliable racing but nonetheless we have really seen a global crisis of confidence in the u.s. economy over the weekend because really coming off with criticisms covering it coming in from india and from china what are the chinese official news agency

school this u.s. debt addiction now as their concerns and lots of anxiety over exactly what will happen in a couple of hours' time when the markets do a pin here and that's continuing calls the u.s. to get its financial house in order my colleague growing up or not has been taking a closer look at u.s. spending. late comedian george carlin always spoke frankly about his nation the only true lasting american value that's left barren things aren't things people spending money they don't have on things they don't need today country long driven by borrowing and consuming is in desperate need to cut it spending us defense and security spending has. maned untouchable soaking up seven hundred five billion dollars or twenty percent of federal funds every year since two thousand and one more than one point two trillion dollars have been spent on the wars in iraq and afghanistan but now with fourteen point four trillion in the hole some economists

say it's time for the u.s. to compromise world domination for domestic stability will also probably have to see a significant requestion or questioning and downsizing of the several hundred foreign military bases we have given the size of the budget problems and the growing issues around the national debt and the debt ceiling it is fairly well assured that the budget will be caught for defense and it probably needs to be cut more than is presently proposed for the pentagon priorities may be different the department reportedly spent twenty three billion dollars on global hawk drones alone this year taxpayers are estimated to spend one hundred twenty two billion dollars on the war in afghanistan the same amount that could cover an estimated twenty five million americans with low income health care an empire costs a lot of money because you have to spend a lot of money to defend it you have to spend a lot of money to promote it you have to have a lot of people working on various aspects of economic support for imperial

adventures around the world the consequence is the money is leaving the united states going to other places not to the places in the united states that need it the most needing it most is the country's neglected infrastructure and jobs that come with rebuilding according to the american society of civil engineers a quarter of america's six hundred thousand bridges are listed as deficient and nearly half of american households don't have access to public transportation ongoing federal budget cuts are expected to force thousands of post offices and fire departments to close more than forty million americans on food stamps they also accept. we just cut the food stamp budget by twelve billion dollars we have multiple experimental ongoing programs in the defense department each of which is large enough to offset the food stamp cuts and i think if we have forty one million people already who are dependent on government aid for food getting food to them is

probably a first priority but defense secretary leon panetta is looking further afield for his priorities we are nation at war. we face a broad range of security threats and challenges. but our military must be prepared to confront from terrorist networks to rogue nations that are making efforts to have turned a nuclear capability to dealing with rising power it's. always look at us to determine whether or not we will in fact maintain a strong defense here and throughout the world eyes on the world we're all citizens face mounting struggles at home that's what the owners count on the fact that americans will probably remain willfully ignorant of the big red white and blue being jammed up there every day because the owners of this country know the truth it's called the american dream because you have to be asleep to believe that marina porter r.t.

new york. markets braced for monday morning off today i'm wearing last week meanwhile european central bank officials have agreed to buy new bonds to fight the constant crisis all those thoughts clear yet which bonds the bank is going to buy ex-pats expect them to be from debt laden countries like italy and spain the german government reportedly. found won't be able to save. it because to call me if it needs help the g seven group of the most industrialized nations are also vowing to support financial stability and welcomed what he called decisive actions taken by the u.s. and europe but he cannot accept just happened so he needs to change tack and it. let's try and understand both sides of the numbers here the italian government one point eight trillion euros now that means nothing to anybody but that is bigger

than the total government debt arland portugal and greece put together and for the end of this year it will eat needs to sell baldwins gas which is equivalent to the whole. all of the greek government bond market in other words all of the greek debt that we've been talking about for weeks and weeks and weeks is being looted. italy is huge need is just a true big to manage to anyway be rescued in the way that other economies have so far been bailed out by the e.u. what the euro zone needs to do is completely rethink the approach that they currently have so we're going to actually a completely new approach some time by september october or maybe november we are in severe danger that the euro zone is going to collapse. his team has the world's markets on close watch on now have an update for you in just a few minutes time but also a couple are coming up on the program

a new great fire of london burning buildings torched police cars looting and mob violence we report on the two days of violence that's grips parts of the british capital. and syria now under pressure from the arab world's most powerful nation is saudi arabia calls it envoy in order as the bloodshed to stop. three years ago the people of the small republic of south are set it came under artillery attack by neighboring georgia the brief war in which the p.c. tried to reclaim its territories claimed hundreds of lives r.t. if we did of course there is in the south a setting capitol where memorial services are being held with a very sad day for the public just how is it being marks. one memorial services began last night and will be held throughout the day the ceremony started thirty five pm that exactly the time when george opened fly over the says hundreds of

people came into the main square to light candles and pray for those who died in that breeze but dadley conflict people were listening to the rescue and they were looking at pictures taking. at that period of time god's word shone on wise screens placed across the city center they also released. in the memory of those who dies at three years ago the atmosphere was of course very sad to many king with small children everyone was holding candles the moral services will continue in different parts of the city on a monday the war lasted for five days but hundreds were killed and many injured was mostly destroyed after bombings but. the face of the city has changed within the last three years still people are trying to restore their lives and we managed to meet some boys still struggling to bring their life back to normal.

come here almost every day i sit and talk to my son. next to my dear boy. for the last three years. has come to this cemetery where her son is burritt five days to nor two thousand and eight split her life into a before and after. her son a medical college graduate heard the republic's capital t. vall was under attack from georgia she rushed home to help the injured she died in her arms just they lay trapped for days on to the rubble of their apartment block that was in the georgian alterian firing line. the only thing that makes her life worth living now is her twenty year old daughter they now live together in a newly built house to roland it by family tragic story. this

will leave specially the bill to those families who lost loved ones and were left with nothing in the towns across the street. to. children into the house opposite lives a man who lost both his wife and his child. all these people are victims of georgia's military aggression in all those two thousand and eight when you try to retake control of the breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire nursed my abuse dive i was on duty with them and witnessed average thing that happened that night for i saw him violent fire when you know it was going to be our last night but was still carried out peacekeeping mission and tried to be calm. most cool sound trained force meant to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks later russia recognized

such as independence. the last three years have changed the face of this thursday i new residential air where new roads jobs and even worse a new g.m. have been built. but still kinds of the conflict remains this behind my back are all that's left of good russian. for those who lived through the horrors of the brief but badly conflict the memories are still very wroth. much of the question will archie reporting from sea involved. want to invest as a us citizen who lives in south ossetia back in two thousand and eight in lost his daughter answers for these bombings he recalls the news from the american media bore little resemblance to the reality then two years. the american press was very biased in in the reporting of the whole conflict i was here in

a city and my family my in my siblings and friends in america and i spoke with them and there was nothing in the press about george attacking south of said it wasn't until russia responded that it was being televised that russia is attacking georgia my sister after i told her the truth about what was going on she saw a live t.v. show on. fox thirteen they're talking about the war and so she called it in and she said what you people are talking about is not the truth she said my brother is there he called me he told me what what happened what's going on and they basically cut her off. when we have any more details about the difficulties the south assassin people had to overcome on their way to a peaceful life. the history of this place runs through the centuries. a paradise for archaeologists.

and ecological tourists. but one fateful night shots destroyed the harmony of life. how this republic got its my spine. hoping dreaming dreaming it's. now two days of angry conscious in parts of north london have seen twenty six police officers injured on something fifty five began as a peaceful protests demanding justice and the death of twenty. an old man who was shot by police last thursday evening turned on the demonstrators began attacking police and setting fire to cars and houses there and it was there. these are the

scenes in enfield town center tonight with prior to this essentially taking over the town i'm standing here in enfield retail park behind me you can see legions of police in riot gear they are going round marking up what we're saying is between one hundred and two hundred rioters essentially people who are looting the shops that you can see around me behind me is no choice or else just that it's carries we've seen young men mainly but some women as well looking out of these shops with literally anything they can carry in their hands from televisions to vacuum cleaners but there's also bike shop erin some of them of rigid off the bike shops stock up police obviously are coming in to quell this these disturbances that are breaking out but this has been going on since saturday evening here in north london right stores who didn't talk to him which is not very far from here where there was a side of a big show to protest the shooting by police so someone called mark duggan three

hundred people turned out at the police station to ask questions about how that shooting out fatal shooting taking place and was in future what's very much the scene the e.c. had tonight lou two young people some people reportedly as young as seven year old children being arrested at least in these shops and that is an uneasy relationship here in that they have these parts of north london between the people here and the police and this is people say a manifestation of that is. from london and definitely yes you see only the dry now and there's one group that has an extreme solution to report dot com hardline was that the sharia law in the british capital is not going down well with them to find out more more. pownce to get strict he sent us. flying high all noughts. another fluke the tug competition for amateur radiators to at least try to reach

for the sky watch their attempts at aussie dot com. saudi arabia has pulled it sound data there from syria adding weight to the international condemnation of president assad's crackdown on protesters more than fifty people were reported killed as violence continued across the country on sunday while syrian forces stormed the eastern city of dallas to crowds across government protester in the muslim holy month of ramadan and heavy shelling was reported off the black clouds of smoke was seen rising from buildings in the city more than seven hundred people have been killed since the al prizing began in march

international relations expert professor mark owen inside syria and politics are riddled with intrigue. who. were what. is who work. with iraq are long. years old. they are criminals or google or. there are. also. intrigue going on behind the rhetoric of. who represents i think the real granger is we are a very large scale civil war and sort of. more later on all the more on the situation in syria and the arab world when we talk to iraq's foreign minister in the next hour but a brief analysis mother world. news in brief in the u.s. has launched an investigation into today's helicopter crash in afghanistan that killed american servicemen seven afghan soldiers and

a civilian and it's the greatest single loss all of american life since the beginning of the conflict twenty two of those who died in the unit that killed osama bin laden in may investigate to say the aircraft was hit from help me us ranging unit that was under fire. venezuela's president is awaiting the second round of chemotherapy in cuba hugo chavez. the exact nature of his cancer have not been disclosed his illness has been costing him his fitness to stand for reelection next year but president chavez insists he is responding well to his treatment and plans to go ahead with the campaign. the most powerful storm in decades is heading towards eastern china tropical storm move high winds and torrential rain causing huge disruption over the weekend more than three hundred thousand people have been evacuated to safety around china high thousands

of homes were left without power in south korea as the storm brought down power lines and trees it's expected to reach western parts of north korea by monday. has got some more now on the impact of america's crisis and credit rating drop is having on the world's top markets that's the business that's now with the. hello and welcome to business here on r.t. now we start this hour with global markets which have been under pressure for weeks but have now reached the selling crescendo asian stock markets continue to slide as the u.s. credit rating downgrade fan fears of a global recession so hong kong seoul and sydney are down between two and four percent analysts think the volatility will stay high while strong economic data remains in. but we seem to be in the line structural problems of still the us

employing the still over nine percent european employing the slower nine percent growth has slowed materially over the past few weeks and actually we still have the overarching problem of the here pin sovereign debt crisis think what we need to see is a sustained run a positive economic data and a resolution to the european debt crisis before markets really start to calm down. a second look at the markets now precious metals are edging up as investors look for assets which are for less risk gold is adding almost thirty eight dollars per ounce while silver is gaining over a dollar a second look at the crude prices they are lower following the downgrade of the world's largest oil consumer there is no confidence in the market and investors are concerned over the future demand for crude. over in asian markets are in negative territory banks are mostly lower and exporters are also on the pressure and the war is about future demand then all this is of course the result of what's happening in

they don't last and europe prompt and market jitters. here in russia markets will open in an hour's time on friday they close the on the right after international stock markets fell to their lowest since late two thousand and ten. but a western from absence as with the downgrade monday is likely to inherit last week's fears. this week we're back in business again and people will be looking at the news flow of the data flow extremely closely because the markets are extremely volatile and there's no conviction for any sort of strong recovery in my view the situation that were problematic last week are still problematic this week so any improvement in data will support the market but it could also be a very short term it looks like we're going to have the dollar falls into eleven hundred i think without any problems. well you know us has managed to stave off a potentially crippling default not

a downgrade on let's long term debts some countries are consider reducing their dollar reserves and all their less risky currencies but you dive all of sperm bank argues they're a great way to hedge against the falling oil price the american that are negatively correlated with oil price near if you look at it even the history of the last three years every time when oil. prices american the vice versa. she gives the world praise for this is why russia should have been american that this. price will go down and that's all the business news for now the headlines are next with alice.

the history of this place runs through the centuries. a paradise for archeologists zoo all ages and ecological tourists. one fateful night shots destroyed the harmony of life.

past. how this republic got its life by. hoping dreaming and recreating. the feel of. the up. down the field official on t.v. application to your i phone or i pod touch from the i choose amps to. charge the life on the go. the. street with the palm of your.

wealthy british style it's. right in front. of the. market why not. find out what's really happening to the global economy is.

a very warm welcome back it's now i hear a moscow says continue that sinking feeling asian stocks are down off of the historic us debt rates and cut them in ten straight is expected to be here and america. c.n. raw you're seeing spreads in north london dolls means of all this is the engine trying to contain a peaceful protest against the fatal shooting often. to georgia war machine to try and see if we need those too bad as skulls of the hell they were building their lives. to get their country back on track off the wall that's next and all special report. during the the tsunami.