refuses to heal all these pressures in the engines largest economy in 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. 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 and his 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 a set 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. well those nations which hold the lion's share of american government debt could turn their backs on its bonds as the chairman of the hong kong based credit ratings agency has been telling r.t. . probably. country sure will try to. they're going to buy. the country lots of my personal. christmas tree

because. the budget cut you know us in the coming years. to be one of. the coming coming years. definitely will tighten lending money corporation will be short of funds. you know long term and short term. stocks are also expected to feel the pinch with friday trading ending in negative territory also. has more for us now from outside the major arteries that seem to moscow which has just. having so far. what we've already seen this morning the asian markets. you said the russian markets have just been a very much the same story an expected to play out here this morning as investors exude the decision by standard and poor's credit rating agency for the weekend to

remove the u.s. is saying. we've heard from a lot of analysts that there's certainly this downgrade reflects increasing global uncertainty in the u.s. economy it's not all bad news some analysts have also said that they expect traders to be able to resist a black monday start situation and indeed the deputy finance minister here in russia has said that russia has no plans to change its investment policy. the u.s. downgrade nonetheless this is the first time in history that the u.s. has received a downgrade. the government received the downgrade is taking between nine to eighteen years to recover that status so it says you know thing is going to bounce back very quickly and it is also important to recognize that a lot of people have pointed to the fact that a double a rating is still a reliable rating but we're seeing a lot of uncertainty in the markets at the moment as we're waiting to see how it plays out here this morning we think very strong puts business coming in pointed at

the u.s. from countries such as china and india the chinese official news agency that we had that this is us that addiction and now my colleague has been taking a close look at u.s. spending. comedian george carlin always spoke frankly about his nation the only true american value that's left bahrain days bahrain 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 it wants defense and security spending has remained untouchable soaking up seven hundred five billion dollars we're 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 ing 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. 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 make sacrifices 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 costs 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 and growing range of security threats and challenges. that our military must be prepared to confront from terrorist networks to rogue nations that are making efforts to obtain a nuclear capability to dealing with rising powers that 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 while 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 it marina port naya r.t. new york. for europe's markets a braced for monday morning after taking

a hammering last week meanwhile european central bank officials have agreed to buy government bonds to fight the continental debt crisis although it's all clay dead which bonds the bank is going to buy experts expect them to be from debt laden countries like italy and spain not fast the german government reportedly admitted the new rescue fund we won't be able to say here is aims third biggest economy if it needs help the g seven group of the most industrialized nations are also valid to support financial support missy and welcomed what it called decisive actions taken in the u.s. and europe but financier and author patrick youngs is the easiest to change tack immediately. and let's try and understand both sides of the numbers here the italian government one point it trillion euros now that means nothing to anybody but that is bigger than the total government debt of our land for two golds

and greece put together before the end of this year it will lead needs to sell bourne's debt which is equivalent to the whole 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. italy is huge need is just a true big to manage to in any way 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 which i'd 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 business team has the world's markets on closer watch and i'll have an update for you in just a thing of a mix but also coming up on the program a new grade. buildings torched police cars b.c.

i'm all violence we report over two days of violence that's gripped hearts all the british capital. and syria now under pressure from the arab world's most powerful nation as saudi arabia pulled its boy does the bloodshed. three years ago the people of the republic of south ossetia came undone tenderly attacked by neighboring georgia the brief war in which to try to reclaim its old territories and hundreds of lives to the cost of aids in the south as capital where memorial services are being held. the morial services began last night and will be held throughout the day the ceremony started eleven thirty five pm that exactly the time when george opened fly over the city hundreds of people came to the main square to light candles and pray for those who died. conflict people were listening

to the rock 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 guys at three years ago the atmosphere was of course very sad with small children everyone was holding candles the war lasted for four but hundreds were killed and many injured was mostly destroyed after a bombing some. of the things of the city has changed within the last three years still people are trying to restore their lives and we. are still struggling to bring their life back to normal. 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 five days to north two thousand and

eight split her life into a before and after. her son a medical college graduate heard the republic's capital team vall was under attack from joy he rushed home to help but he died in her arms just they lay trapped for days on to the rubble of their apartment block that was in the torture. the only thing that makes her life worth living now is twenty two year old daughter been. live together in a newly built house surrounded by families with similar tragic stories. in this area will leave especially the bill to those families who lost loved ones and loved with nothing in the touts across the street lives of the men who lost two children and to 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 august two thousand and eight when you try to retake control of the downed breakaway republic south the sacha 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 kids when all i saw valon fire when you know it was going to be our last night but it was still carried out the security mission and tried to be calm. most cool sound trained force men to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks late so russia recognized the status in. the last three years have changed the face of this thursday i new residential air where new roads jobs and have been burst and have been built

but still signs of the conflict remain behind my back i got slapped a good russian peacekeeping poll. results who lived through the horrors of the police but doubt the conflict the memories are still revolved. arcee reporting from team ball the stats you. want to messed up as a u.s. citizen who lives in south ossetia back in two thousand and eight when they lost his daughter in socrates 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 my siblings and friends in america and i spoke with them and there was nothing in the press about george attacking south is that 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 in 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 with foreigners and they basically cut her off. when they said hearing about the difficult. people to come and that way to peaceful life. the history of this place runs through the centuries. a paradise for archeologists zoo ologists and ecological tourists. but one fateful night shots destroyed the life.

how this republic got its life by. hoping dreaming. dreaming. two days of angry clashes in parts of north london twenty six police officers injured some fifty five aracely began as a peaceful protests demanding justice over the death of a twenty nine year old man who was shot by police last thursday but things turned ugly when demonstrators began attacking police and setting fire to cars and buildings on his door and it was that. they did the same to him and failed town center tonight 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 mopping 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 a toys r us just that it's carries we've seen young men mainly but some women as well looking out of the shops with literally anything they can carry in their hands from television to vacuum cleaners and there's also bike shop parents some of them of raise it off the bike shop stock up police obviously are coming in to quell this these disturbances that are breaking out but this has been going on since saturday . even aka mil slotting did write stories he didn't talk to them which is not very far from here where there was a cited big show to protest the shooting by police so someone called my dog at three hundred people turned out at the police station to ask questions about how that shooting out fatal shooting to take a place i was in the future the woods very much the same that you see had tonight

lou takes young people some people reportedly as young as seven year old children being arrested the only city so city that isn't an easy relationship am that if these parts of north london between the people here have the minds of the police and bases people say they might have been state should know that it's. definitely s.s.e. on the drive now and there's one group that has an extreme solution to its troubles and to report us all to dot com by muslims all is made on the sharia nor the british capital is not paying down well with long term let's find out more on their plans to get strict to sit. on flying high and moscow holds a hell of a frugal tug competition for how much aviators at least i try to reach for the skies wars are attempts that are sometimes called.

the. wealthy british style. time. market why not. find out what's really happening to the global economy

with mike's conjure for a no holds barred look at the global financial headlines tune into kinds a report. saudi arabia has pulled its ambassador 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 syrian forces stormed the eastern city of. to crush anti-government protests during the muslim holy month of ramadan heavy shelling was reported after black clouds of smoke was seen rising from buildings in the city more than seventeen hundred people have been killed since the uprisings of the down in the march international relations ads that are passing syrian politics a little and even. before

stalled american women should be able. to. represent. the real going to. be more on the situation in syria i mean arab world when we talk to iraq's foreign minister in about ten minutes time. now a brief look at some all the news in brief this hour and the u.s. this morning and asked a question in just saturday's helicopter crash in afghanistan that killed thirty american servicemen seven afghan soldiers and a civilian in it's the greatest single loss of american life since the beginning of the conflict twenty two of those who died belong to the unit that killed osama bin

laden in may investigators say the aircraft was hit while departing from helping us range unit that was under fire. that is. whaley's perkins raising the second round of chemotherapy. hugo chavez had apparently she renewed to be exact nature of his coming has not been disclosed his illness has been a constant down say to have fitness to stand for reelection next year but president chavez insists he's responding well to his treatment and plans to go ahead with the campaign. the most powerful storm in decades having towards china tropical storm brought my winds and torrential rain causing huge disruption over the weekend more than three hundred thousand people up evacuated to safety around shanghai 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. well be about with

a recap of our top story shortly but first it's the latest business days now. hello and welcome to business here on r.t. now we start this hour with the global markets which have been under pressure for weeks but have now reached a selling crescendo and 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 and analysts think the volatility will stay high while strong economic data remains thin but we've seen that in the long structural problems of store u.s. employment the still over nine percent european employment slogan our percent growth has slowed materially over the past few weeks and actually we still have the overarching problem of the european 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. the downgrade may own them on the dollars position as the global reserve currency some countries are considering reducing their reserves and so all their less risky currencies but it's in a dive always burbank sees it as a great chance to hedge against the falling oil price of american bit or negatively correlated with the oil price new fuel lou could even the last three years every time one who prays lose the price of american did. not in the. previous pull this is why i. have been american that this is. the. price. let's take a look at the markets now gold has such a fresh record as investors turn to assets which offer alerts for gold is adding

almost forty eight dollars per ounce while silver is gaining almost two dollars let's take a look what's happening with oil crude prices are lower following the downgrade of the world's largest oil consumer there's no confidence in the market and investors are concerned over future demand for crude both light sweet and bronze are losing over three dollars this hour. and asian markets are in negative territory banks are mostly lower and the export of us are also in the pressure on the war is about future demand and all of this is of course the result of what's happening in the u.s. and europe problems and market jitters. and here in russia the arts yes has opened in the red it's down over three and a half percent but my stocks will start trading shortly on friday both exchanges closed deep in the red after international stock markets fell to their at lowest since late twice the time. that it was the formats and says with

a downgrade monday is likely to inherit last week's fears. this week we're back in business again and people will be looking at. extremely closely because the markets are extremely volatile and there's no conviction for any sort of strong recovery in my view the situations that were problematic last week are still problematic this week so any improvement in data will you know support the market but it could also be a very short term it looks like we could have the dow falling to eleven hundred i think without any problems. and that's all the business is for now join us for another last an hour simon in the meanwhile the headlines for that. the.

mind in motion would be so much brighter than if you knew about the sun move from funds to impressions and some. stunts on

t.v. don't come. this

is all to me she has continued that sinking feeling of age and stocks are down to the historic u.s. debt regime called fall similar tense trading expected in europe. losing and rising spreads in north london dolphins of officers injured trying to contain what started out as a peaceful protest against the fatal shooting of. three years all to georgia on the east it's war machine to try and seize self assess yet we meet those who have been the sculls of the conflict tearing out the rebuilding that lives. changes sweep through the arab world some countries find it easier to adapt than all the next iraq's foreign minister tells all see how the revolutions of the region have been positive for his country.