very welcome to this is a life from asian stocks tumbled based on what's likely to be a string of toroids trading in europe on the u.s. they say this is from isis america's got the debt downgraded europe's debt refuses to heal pretty street is in asia is the largest economy in india with the latest outlook for the region. the asian markets are tumbling today which is what many analysts predicted on friday when this credit downgrade 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 the 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 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 asian nations which hold the line share of american government

debt turned their backs on his bones as the chairman of a hong kong based credit ratings agency has been telling our. country try to. buy. my version of. giving such a. bank up it with. many cooperation of funds. along. with markets have to start their monday session after taking a hammering last week. with the latest figures for us daniel how well the.

market futures have suggested the stock's down and will continue to slide over the course of the day asia still to this morning korea's index had to be temporarily suspended when it collapsed of course this is on the back of last week which was the world's markets worst performance since october two thousand and eight now this is the first more reaction to the historic downgrade of the u.s. on friday evening but the epicenter of this financial tsunami is europe where the crisis does appear to be spreading out of control in a risk. the european central bank said it will tell you. which investors have been avoiding growing fears those states will default throw them pay back those safe havens having a field day at the moment the swiss franc and gold have reached record highs as investors flee the. series of international emergency talks were held in the past. as happens with any question all decisions to come out with aids

yes the g seven g twenty group or the leading economies have held emergency conference calls they've put out a series of calming messages south korea's deputy finance minister says there's no cause for concern now that has caused a lot of concern among investors around the world that our leaders just don't get how serious the situation is at the moment italy's prime minister silvio berlusconi has also pledged to speed up spending cuts those. measures the to italy is going to have to go through to cut its that however economists are saying that that will make the situation worse because that will mean less job creation and a shrinking economy which is the last thing that it's only needs let's hear more now from an economic take. the italian government one point it trillion euros now that means nothing to anybody but that is bigger than the total

government debt of arland portugal and greece put together before the end of this year it will be need 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 and it is just too big to manage it in any way be rescued in the way that other economies have so far being bailed out by the e.u. . situation in the united states is also worrying investors our correspondent very important now looks at the situation. comedian george carlin always spoke frankly about his nation the only true lasting american value that's left by an days by people spending money they don't have on things they don't need today country long driven by. our wing and consuming is in desperate need to cut it

spending us defense and security spending has remained 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 hold some economists say it's time for the us to compromise world domination for domestic stability 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 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 spend 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. fire

departments to 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 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 a nation at war. we face a broad and growing range of security threats and challenges. that our military must be prepared to confront. networks to rogue nations that are making efforts to have two nuclear capability to dealing with rising powers. 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. because the owners of this country know the truth it's called the american dream because you have to be asleep to believe marina porton r.t. new york. lost his business death count. on the close watch a movie is the. arena how the russians lost responding to all this well the russian markets are obviously respond the same way as a lot of markets around the world there are losing both the arts yes and the my sex open deep in the red extending for those losses currently they're trading lower by about three percent and that's because investors are of course hostess about where it's their money and while of course all expert analysis as well as more reaction

about the russian markets in our business bulletin in about ten minutes from now. two days of angry clashes in parts of north london have seen twenty six police officers injured and some fifty five arrests it began as a peaceful protests demanding justice save the death of a twenty nine year old man who was shot by police last night things turned ugly when demonstrations began attacking police and setting five it's a cars and buildings. it was that. these are the scenes in enfield town he said it's you know right prior to this actually. taking a view 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 moving up what we're saying is between one hundred and two hundred rioters essentially people who are looting the shops so you can see around me behind me is no choice only 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 televisions to vacuum cleaners but there's also bike shop air and some of the moves rid off on 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 stores they didn't talk to them which is not very far from here where there was a silent 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 that fatal shooting had taken place i was in future what's very much the same 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 kid if these parts of north london between the people here the mountains the police

and this is people say a manifestation of that is. a long death and they're trying now and there's one group that has an extreme solution to its troubles to the poor. don't like muslims want to lay down a sharia law in the british capital it's not going down well as long as find out more of their plans to get stripped the senate. and the flying high oh not more scary holds another few pug competition for aviators to at least try to reach for the sky watch their attempt. now three years ago the people of the small republican south is that it came under

attack by neighboring georgia the briefer war in which to b.c. trying to reclaim its old territories claimed hundreds of lives do the courts for those in the south say capital whether morial service is being held today you will standing on a very poignant sport right now wants is exhibit a for kids. george attacked suddenly around midnight and at the first try to happen hand as a russian peacekeeping base now which you can see behind me what's left of that base their way around two hundred fifty soldiers over and they fought all night waiting for the russian troops to rife russia stunting troops to protect the republic citizens which were russian passport orders and also many were hiding and basements and a bombed out buildings now overhand twenty three soldiers were killed and many more injured and this we spoke to some of them they told us that they want to keep this a building untouched in memory of what happened here. i mean do you know what of

all the memorials in the republic what's been taking place. well the memorial services began last night and so they will be housed throughout the day you. know many start it's thirty five pm that's exactly the time when you're open to fly over the city hundreds of people came last night at the central square to light candles and pray for those who died just three years ago in the destructive conflict many came with the small children one was holding candles they were listening to the recreate them and also they released why. balloons into the sky in memory of those who were killed the war lost it for five days but hundreds were killed and so many more injured ball was mostly destroyed after bombing stuff but the face of the city has changed within these years still a locals are trying to restore their lives and we managed to speak to some of them

while still struggling to bring their lives back to normal. and come here almost every day i sit and talk to my son i will lie next to my dear boy. for the last three years stacey sidney has come to this cemetery where her son is birds five days to nor goes two thousand eight split her life into a before and after. when her son a medical college graduate heard the republic's capital tin vall was under attack from georgia she rushed home to help the injured she died in her arms us they lay trapped for days on to the rubble of their apartment block that was in the georgian alterian firing line. yet. 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 rounded by families with similar tragic stories. of this area where we leave specially built to those families who lost loved ones and were left with nothing in the towns across the street lives of women 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 all those two thousand and eight want to try to retake control of the ground breakaway republic of south ossetia a russian peacekeeping mission in the region also came on to for. oir nursed my abuse dive i was on duty with them and witnessed average thing that happened that night for kids and 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 santry enforcement to protect its citizens and prevent more civilian deaths

within five days georgian troops had been repelled three weeks later russia recognized the sacha's independence. the last three years have changed the face of this s.d. i new residential air where new roads jobs and invest in you have been built. but signs of the conflict remain this ruins behind my back i got all that's left of the russian peacekeeping poles for those who lived through the horrors of the brief but badly conflict the memories are still very wrong. much of the question the r.c. reporting from sea involves officers here. well jay math is a u.s. citizen he lives in south back in two thousand and eight he knew you know. when he recalls the news from the american media paul little was that the reality was. the american press was very biased in in the reporting of the whole conflict i

was here in said he and my family in my in 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 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 with foreigners and they basically cut her off. and i saw see here in more detail about the difficulties that south people had to overcome when 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. hoping dreaming dreaming and. saudi arabia has pulled its ambassador from syria adding weights to the international condemnation of president crackdown on protesters more than fifty people were reported killed as violence continued across the country on sunday will syrian forces stormed the eastern city. to crush antigovernment protests during the

muslim holy month of ramadan heavy shelling was reported on after black clouds of smoke was seen lines in the buildings in the city and then seventeen hundred people have been killed since the uprising downing mox international relations expert professor mark almond says syrian policy is. good intrigued. by rock. groups who of course. years ago. there were. also. intrigue going on behind the rhetoric. and i think the real granger

is. a very long war in sort of. well later on r.t. more on the situation in syria and the arab world when we talk to iraq's foreign minister in the next hour on a briefing on the wild news in brief in the u.s. has launched an investigation into stop today's helicopter crash in afghanistan that killed thirty american servicemen seven afghan soldiers and a civilian interpreter it's the greatest single loss of american life since the beginning of the cold plate 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 a u.s. ranger unit that was under fire. from as well as presidents awaiting a second round of chemotherapy in cuba hugo chavez the how the pelvic tumor removed in june the exact nature of his council has not been displays the illness has been costing down over his fitness to stand for reelection next year but president

chavez insists he's responding well to his treatment plans to go ahead with the campaign. most powerful storm in decades is heading towards eastern china topical storm a move for high winds into renshaw rain causing huge disruption over the weekend more than three hundred thousand people 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 . i'll be back with a recap of our top story shortly but first the latest business news marina. hello and welcome to business here on artsy global markets have been under pressure for weeks spot they have now reached the selling crescendo asian stock markets continue to slide with exchanges in tokyo hong kong dropping between two and four

percent. well russian markets have opened sharply lower following the losses let's not cross life choices firth who's the headquarters of the r.t.s. stock exchange hello to you and what can you tell us what's the sentiment in the market right now. we saw the russian markets a painting in negative territory this morning that was largely expected after the decision by standard and poor's this weekend to downgrade the u.s. from its aaa rating down one notch now the russian markets are currently tracking the asian losses we've seen r.t.s. in my techs dropping around three percent in the last hour another key liza's being the oil and energy mages are rolf not look well and gazprom we've seen invested jitters about the economic situation in the u.s. and in europe fishing the price of food oil down even lower but there are still

some stocks to do trading in the black we think gold prices continuing to rise as investors are looking for a safe place to put their money but certainly a large amount of uncertainty remains waiting to see how this plays out now we've heard from the deputy finance minister that russia has no plans to alter its investment policy over the u.s. downgrade that we've heard from other honestly of course this is the first time in the u.s. history of its receipt this downgrade certainly applies to its reputation especially going to cause a lot of concern amongst investors some people despite that downgrade as a wakeup call the u.s. well as investors absorb that decision certainly we could see increased volatility in the global markets continuing this week and here in russia of course. thanks to the russian markets have actually minimize their losses slightly and they're losing about two percent this hour so maybe that means that the losses won't be as big of

a song friday or thank you very much sir for that. but boy oh let's take a look at those markets will start with gold which has set a fresh record as investors turn to asses what's off the lustrous gold is adding over forty dollars per ounce while silver is gaining about dollar fifty there for a second look at oil prices and they are lower following the downgrade all 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 brant are losing over suit dollars this hour. i mean they show markets are in negative territory banks are mostly lower and exporters are also on the pressure amid worries about future demand and all of this is of course the result of what's happening in the u.s. and europe problems in the market jitters. well here in moscow as we just said both the markets are open and they are in the red both the r.t.s.

and the my sites are losing just over two percent this hour. but a weston from athens says with a downgrade monday is inherits into last week's fears this week we're back back in business again and people will be looking at the news 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 superman to be sweet 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 fall into eleven hundred i think without any problems and that's all the business news for this hour for more stories you can always check out our websites r t dot com slash business in the meantime states and for the headlines without us.

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now i hear a mosque a this is seen as around the world the song of the week with that sinking feeling european in asia included in the red also the historic u.s. credit rating cut off similes head is trading as expected and american. led rampant looting and rioting spreads in north london dolls and of offices that injured trying to contain what started as a peaceful protest against the face of the shooting of a man. three years after georgia on nation's war machine to try and seems sound the same we meet there use him to bed the skulls of the conclave tearing how they're rebuilding their lives. time now for another heated debate with people of crosstalk stay with us.