roulston is on the back of american getting its credit rating cost as well as debt and we're just refuses to hail a bushel is in brussels for us daniel everyone's been expecting a manic monday but europe's markets haven't quite to hit the panic button and why is that. when markets are mixed of the european central banks the spanish have been fleeing spain on fear of the out of control the g seven and g twenty group of leading economies also said they would coordinate a global response to this crisis but asian markets are. still a sea of red after south korea's deputy finance minister said there was quote no cause for concern for the world economy the south korean index was temporarily closed it was shut down of the shares there collapsed in the wake of those statements as investors feel politicians don't get just how serious the situation is the moment but the oil of the storm continues to be your

a pretty concerning italy where prime minister silvio berlusconi promised to speed up spending cuts government spending cuts in the country but the expose thing for more needs to be done for europe to recover from this crisis. the italian government one point it 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 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 as being . italy is huge and it is just too big to manage any way be rescued in the way that other economies have far been bailed out are you. by

the e.u. . is an across the. credit rating was downgraded on friday. late comedian george carlin always spoke frankly about his nation the only true lasting american value that's left by an days buying 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 u.s. 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 hole some economists say it's time for the u.s. to compromise world domination for domestic stability will also probably have to see 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 defend that 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 consequences the money is leaving the united states going to other. this is 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 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 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 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 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 marina porter r.t. new york. asian stocks tumbled on monday what is a string of torrid trading around the claim. in the region's third largest economy

india with the. 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 is 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. well they should nations which hold the lion's share of american debt and the banks on its balance as the chairman of the hong kong based credit ratings agency has been telling us he. will be. a country and a shrewd try to do with them is that going to buy. the country not simply u.s. one person who is. doing

a studio. the budget cuts are coming. in the coming coming years so. many corporation will be short of funds. whole economy you know long term and short term. policies business that have the world's markets close watch of the green is there for us now marina how the russian stocks responding to all this well russian stock markets are actually limiting losses after opening deep in the red the latest from europe is offsetting the damage brought on by the states and we'll have more about that in our business bulletin in about ten minutes from now. we will of course to check in for that info in just a few minutes from now. three years ago the people of the small republic of south

of setia came under attack by neighboring georgia the brief war in which to see trying to reclaim its territories took hundreds of lives and did the courts numbers in the south the city capital which still has many. attacks around midnight and the first happened ham of the russian peacekeeping base now what you can see behind me are ruins of what's left of the base there where around two hundred fifty soldiers over here and they fought all night waiting for the russian troops to rice russia. the republic such as many russian passport holders and many were also hiding in basements and going to buildings all of a hand twenty three soldiers were killed and many more injured and as we spoke to some of them they told us that they want to keep this building untouched in memory of what happened here meanwhile memorial services began last night will be held

throughout the day the ceremony started eleven thirty five pm exactly the time. when georgia opened fire over the city hundred k. me at the central square it's light candles and pray for those who died at three years ago in that brief but destructive conflict many came with a small children every one was holding candles they were listening to the rock family and also they released why to bellew into the sky in memory of those who were killed the war lasted for five days but hundreds were killed and many more injured while was mostly destroyed after a bombing so the whole of the face of the city has changed within these years still local such trying to restore their lives and women is just speak to some of them still struggling to bring their lives back to normal. 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. has come to this time of year where her son is burritt five days to norco's two

thousand and eight split her life into a before and after. when her son daughter a medical college graduate heard the republic's capital teen vaal was under attack from georgia she rushed home to help the injured he died in her arms as 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 rounded by family similar tragic stories. of. this area where we're live with specially built to the families who lost loved ones and were left with nothing in the turnouts 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 george's military aggression in all those two thousand and eight when they 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 fall on 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 forstmann to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks later russia recognize that he has independence. the last three years have changed the face of the state i new residential air where new roads jobs and even worse a new g.m.

have been built. but. the conflict remains this behind my back are all that's left of good russian peacekeeping poles for those who lived through the horrors of the brief but badly conflict the memories are still very wroth. much of the question r.t. reporting from team volves officers here. well to mess down says a u.s. citizen who lives in the south and set back and see thousand and eight he made a note to his daughter's hand soccer ball makes when he recalls the news from the american media or little resemblance to the reality it's the american press was very biased in in the reporting of the whole conflict i was here in a city 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 with 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 what's going on and they basically cut her off. when i said we here in more detail about the difficulties the south assassin people had to come 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. hoping dreaming dreaming is. two days of angry clashes in parts of north london have seen twenty six police officers injured on eva one hundred sixty arrests smallpox virus remain active according to scotland yard it began as a peaceful protest among the justices on the death of a twenty nine year old man who was shot by police last thursday but things turned ugly when demonstrations began attacking police and station fire to cars and buildings the bonnet then spread to a neighboring district on his or m. it was packed. to the scenes in enfield town center tonight with prior to his

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 a choice of 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 aaron some of the moves rid off on the bike shops stock up police obviously are coming in to quell with 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 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 taking place i was in c. you see what's very much of the scene the e.c. had tonight lou two young people some people reportedly as young as seven year old children being arrested or at least in these shops and that isn't an easy relationship kid and if these people. between the people. people say they might have been state should know. well and definitely a city on the right now and there's one group that house an extreme solution to it all since we reporters holocene don't call. it's want to nail down the sharia law or the person's capital and it's not all going down well over the long term as find out more on their plans to get streets with senate. flying high. while scary hold another tug competition for his to at least trying to reach for

the sky watch their attempt at aussie dot com. 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 respondents continued across the country on sunday the syrian forces stormed the eastern city of death to crush anti-government protests during the midst of holy month of ramadan heavy shelling reported on the black clouds of smoke was seen rising from buildings in the city more than seventeen hundred people have been killed since the uprisings began in march went to national relations expert professor mark syrian policy riddled with entry.

for. the rock. groups who are. very fearful. their workers are. also. working real grinder is. a very long war in sort of the. well later on our team or the situation in syria and the arab world when we talk to iraq's foreign minister that's about fifteen minutes time but before that a brief look at some other world news in brief and the u.s. that launched an investigation into saturday the 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 conflict twenty two of those who died belong to the unit that killed osama bin laden in may investigate it say the aircraft was hit while the parting from helping the u.s. rangy unit was under fire. venezuela's president awaiting a second round of chemotherapy in cuba hugo chavez had a poll victory in a removed in june but the exact nature of his cancer has not been disclosed his illness has been casting down and saving his fitness to stand for reelection next year but president chavez says he's responding well to his treatment plans to go ahead with the campaign. on the most powerful storm in decades heading to its eastern china topical storm moves high winds and torrential rain causing huge destruction over the weekend more than three hundred thousand people have been evacuated to safety around shanghai thousands of homes were left without power in

south korea as the storm power lines and trees it's expected to reach western parts of north korea by monday. or more on the impact that america's credit rating drop is having on stock markets worldwide in the business now with marina. hello and welcome to business here on ars the global markets have been under pressure for weak spot have now reached the selling crescendo asian stock markets so that is. into the red with exchanges in tokyo and hong kong dropping between two and four percent well russia markets have also been the negative towards terry and let's cross live now to our to our fourth who's puffy our test exchange headquarters. now what can you tell us about the russian markets what's the sentiment right now. well we've certainly seen

a lot of volatility this morning that of course is expected of the standard and poor's downgraded the u.s. for one not sure this aaa rating a for the week and now what we've seen is that these that russia is playing in negative territory this morning they are actually managing to close the gap slightly the morning started with r.t.s. and my takes down about three percent currently trading down about two percent and my takes about one and a half percent but they've been given a piece by what's been happening in the european markets we still hold a the fitzy also a pinned in the red they then are trading just in the black. to say currently trading in the red that are certainly meant that russia hasn't suffered such extreme losses that we've seen in asia that's given them a bit of a base but as we said there's an increase jitters amongst investors about what's happening with the economic situation in the u.s. in the usa we first seen the european central bank step in and they said they'll be

willing to prop up its sleeve in spain if that's necessary will the market take heed or will that come some of the fears that they have it's very unclear yet just how this is going to play out we've had the russian deputy finance minister say the russia doesn't intend to change its investment policy over the u.s. downgrade but it certainly is a major hit to the u.s. is that reputation a lot of people saying that downgrade really was a wakeup call for the u.s. is there is trading goes on today remains to be seen yet exactly how it is going to be playing out but certainly we could be saying this. continued volatility in the global markets and here in russia. and of course we'll have all the latest information on the stock markets in just a second thank you very much that was artie's surf worth reporting from the headquarters of the r.t.s. stock exchange thank you. well the debt downgrade may undermine the dollar's position as

a global reserve currency some countries are considering reducing their reserves into other less risky currencies boxing you die evolves burbank sees it as a great chance to hedge against a falling oil price. but american did a number of people who correlated with the oil price you know if you look at it even the last few years every time when we praise. the price of american did vice versa. she gives the prius for this is why. he had been american that this is the. price will go down. and let's take a look at the markets now gold has set a fresh record today as investors turn to assets which offer less risk gold is adding over forty dollars per ounce while silver is gaining about a dollar there. is that the look of what's happening with crude prices today are at

lower following the downgrade of the world's largest oil consumer there's no confidence in the market and investors are concerned about future demand for crude both light sweet and bright are losing over two dollars. and they show markets have closed the negative territory banks were mostly lower and exporters were also on the pressure amid the worries about future demand all of this was of course the result of what's been happening in the u.s. and europe prompting market jitters. european markets are breaking the negative sentiment the footsie is slightly off while the dax is losing almost five percent there and that so after a pledge from the european central bank so by sovereign bonds which helped boost the investor confidence let's take a look at what's happening here russia markets are limits in losses after opening them there rather as our correspondents are for earth reported earlier that the arts yes is losing two and

a half percent of all the my success on their almost super sides. if you know weston from athens says with a downgrade monday isn't harris in 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 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 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 artsy dot com business in the meantime states and for the headlines with.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations to rule the day .

it's. a slight it's a breather for european stocks which i know we're going to hold steady for now but it is a downward spiral for the way to a head start us credit rating reduction. three years george on the ships war machine to try and see self assess if we need days to bad the skulls of the conflict tearing how they're rebuilding their lives. and looting and rioting spreads in north london dozens of officers injured trying to contain what started as a peaceful protest against the fatal police shooting of a man. that was changes sweeps through the arab world some countries find it easier to adapt than all the objects around foreign minister tells how the revolutions in the region have been positive for his country.