around the globe that last week's round the back of america getting its credit rating cut as well as the debt that refuses to heal. invasions has to call me india with the latest outlook 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 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 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 has 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. where the age of nations which hold the lion's share of american dead. bones as the chairman of the hong kong based credit ratings agency has been telling us he. will be. country and try to.

go into. the country not simply us one. giving such a. project. coming years. the market will be. coming coming so. bank. lending. operation will be short of funds. economy long term. europe's exchanges are stabilizing after a day trading. is in brussels and explains why. markets are mixed of the european central banks the spanish have been fleeing spain on fears the out of control the g seven g twenty group of leading economies also said they would quote the need for global response to this crisis but asian markets.

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 they 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 story continues to be europe a key concern is italy where prime minister silvio berlusconi promised to speed up spending cuts government spending cuts in the country would expose thing for more needs to be done for europe to recover from this crisis the italian government one point trillion euros now that means nothing to anybody but that is bigger than the total government debt of our land portugal and greece put together before the end of the year it will lead. needs to sell ball 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 too big to manage it in any way be rescued in the way that all their economies have so far been bailed out by the e.u. . in a crisis of its credit rating was downgraded on friday from a corresponding very important. late comedian george carlin always spoke frankly about his nation the only true lasting american value that's left by an days by and things people spend 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 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 cut 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. it's with the 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 consequences 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 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 have two 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 it marina portnoy r.t. new york. well aussies business has the world's markets on quote sports arenas for us to how are the russians responding to all this well it's the arts yes the my sites are limited losses are after positive news from europe they opened in the right but on another change in direction and we'll tell you all about it in our business bulletin and about ten minutes. ok thanks very much about where we're looking forward to seeing shortly. three years ago the people of the small republic of south. korea tug by neighboring georgia the war in which to be trying to reclaim its territories to hundreds of lives a quarter of those in the south a setting capital which still baz many. attacks suddenly around midnight and the

first tribes have been hand of the russian pairs keeping base and now what you can see behind me are what's left of the base there were around two hundred fifty soldiers and they forced all knowing what the russian troops to iraq russia sent in troops to protect the republic citizens many of which were russian passport holders and me all through were hiding in basements and bowing down to buildings overhand twenty three soldiers were killed and many injured and some we managed to talk to they told us that they want to keep this building untouched and of the memory of what happened here meanwhile the morial service began last night and to will be held throughout the day these are many starts at eleven thirty five pm that's exactly the time when george opened fire over the century hundreds of people came last night to light candles and to pray for those who were killed three years ago in a brief but destructive conflict many came where the small children people were listening

to the rag and they also released white balloons into the sky and the memory of what happened three years ago the wall lost its will follow. but hundreds were killed and many inches or more was mostly destroyed after a bombing so and of all the face of the city has changed within these years still locals are trying to restore their lives and we managed to speak to some of them are still struggling to bring their lives back to normal. come here almost every day i sit and talk to my son and i will lie next to my dear boy. for the last three years has come to this. where her son is burritt five days unorganised 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 under 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 families similar tragic stories. this area where we're live with specially built to those families who lost their loved ones and were left with nothing in that house across the street lives of woman 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 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 or i saw him fall on fire when you know it was going to be our last minute but it was still carried out peacekeeping mission and tried to be calm. down 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 app changed the face of the state i new residential air where new roads jobs and have been burst a new strategy and have been built. but. the conflict remains this behind my back are all that's left of good russian peacekeeping polled for those

who lived through the horrors of the brief but deadly conflict the memories are still very raw. much in the question there are reporting from scene valves. one's own methods of us this is that he lives in south ossetia back in two thousand and. he recalls the news from the american media little resemblance the reality. the american press was very biased in in the reporting of the whole conflict i was here in the city and my family my my siblings and friends in america and i spoke with them and there was nothing in the press about the george attack itself that 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 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. russia's president spoke and all the media. just i think that meant that it says president saakashvili should face an international tribunals for crimes against russia and its nationals his interview is in full. dot com and later this hour watch all special reports on how the republic of south of seattle has recovered since the. history of this place runs through the centuries. a paradise for archaeologists. and ecological tourists.

but one fateful night shots destroyed the life. how this republic got its life back. hoping dreaming dreaming. two days of angry clashes in parts of north london have seen twenty six police officers injured and over a hundred and sixty arrests small pocket fire from a gnat's have according to scotland yard it began as a peaceful protest a model justice on 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 cars and fire to cars and go things the violence that spreads to

a neighboring district ask is there any chance that. 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 the 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 televisions to vacuum cleaners and there's also bike shop erin some of the moves rid 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 it started in tottenham 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 she. to take you to places i was in future it's very much the scene that you see it tonight with young people some people reportedly as young as seven year old children being arrested or at least sixty shots it's an uneasy relationship. these parts of north between the people and the police in this case people say they might have been state should know that. all of this is definitely on the air dry now if there's one group that has an extreme solutions to its troubles as we report dot com hardline listeners who want to lay down the sharia law or the british capital and it's going down well with london this find out more about pounds to get strict missives. on flying high or no moscow holds another. position for aviation is to try to reach for the sky watch

their attempts that. well saudi arabia has pulled back 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 syrian forces stormed the eastern city of dallas to crush antigovernment protests during the muslim holy month of ramadan heavy shelling was reported after a black clouds of smoke was seen wrong thing from buildings in the city more than seventeen hundred people have been killed since the uprisings began in international relations expert mark almost says syrian politics all riddled with

intrigue. but there's a lot of weapons have come into syria and screwing some from iraq i've only through the sort of song groups who whole self the american was fearful feel fresh in the way of friends all google are you markham's don't like assad because he's a friend and we are also writers of color who like intrigue going on behind the rhetoric of open sides talking about democracy talk about who represents the people involved and i think the real danger is that we conceal very low scale civil war in syria. more later on our team more on the situation in syria and the arab world when we talk to iraq's foreign minister next hour before about their brief look at some other news in the u.s. has launched an investigation except that a helicopter crash in afghanistan that killed thirty american servicemen seven

afghan soldiers and a civilian interpreter is 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 the best way to say the aircraft was hit was the paul singer from the helping the u.s. range unit that was under fire. but as well as president is awaiting a second round of chemotherapy in cuba hugo chavez had a pelvic schumer meeting. that nature of his counsel how's it been disclosed his illness has been calls in doubts 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. hopeful storm in decades is heading towards china storm high winds down to ranchi 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 south korea as the storm brought down power lines and trees what is expected to reach western parts of north korea by monday evening. and more and the impact that america's credit rating drop is having on stock markets worldwide the business news down. hello and welcome to business here on r.t. global markets have been under pressure for weeks at the open and there was a crescendo of selling asian stock markets deep into the red but tokyo and hong kong managed to claw back a little with both closing down about two percent russian markets are also trading a negative territory and for more on the let's close a live to some refer through the headquarters of the r.t.s. stock exchange hello to sarah no tell us what's the sentiment in the market right

now. we've seen increased volatility in the markets today. starting trading in negative territory what we've seen. today is that sort of dipping up and down in that negative territory those sort of managing to close the gap a little bit but they've been dipping down again they were some will be steered by what was happening in the european markets we saw the fitzy begin trading negatively but then able to pull it up into the black it's now gone back into the red again but we've had statements from the european central bank saying that they'll be willing to prop up italy and spain if necessary that gave some unused confidence to the market and we saw. that that had a very positive impact here for a short time i've just as we said a lot of uncertainty at the moment this really is a very new situation the standard imposed reducing the u.s.

his credit rating from the aaa status a for the weekend the first time in history that's ever happened in the u.s. and we've heard from a lot of people saying that that's really a very symbolic gesture it's certainly going to affect the u.s. his reputation and i here in russia we've seen the biggest losses being incurred in the oil and energy mage's a roughneck look oil and gas. as the invested jet is about the economic situation has driven down the crude oil prices there are still some stocks trading in the black we see in the gold prices continuing to rise investors are looking for a safe place to put that money and the deputy finance minister here has said the russia doesn't plan to change its investment policies or the u.s. downgrade says to me this is being described as a wake up call for the u.s. as we said a very symbolic move by standard and poor's the downgrading them from that ship late status is hopes that the markets will be able to take that in their stride but a lot of people saying this is

a new financial landscape now and say certainly over the course of today and the next week we could be seeing this increase productivity continuing. for us sara thank you very much for that. downgrade may undermine the dollar's position are cyclo the reserve currency some countries are considering reducing their reserves and other a less risky currencies but. bank sees it as a great chance to hedge against a falling oil price. but here in canada negatively correlated with the price new fuel lou could even the last three years every time when. the price of american did vice versa. she gives the blueprints 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 such

a fresh record today as investors turn to assets which offer less risky gold is adding over forty dollars per ounce while silver is gaining but a dollar fifty. now 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 the merits of the crude both light sweet and brands are losing over two dollars this hour. in the asian markets have closed the negative territory banks were mostly lower and exporters were also on the pressure amid the worries about future demand than all this was of course the result of what's been happening in the u.s. and europe problems and market jitters. and european markets have gone back into the red this by it's a pledge from the european central bank supply silver and bones the footsies down point eight percent while the dax is losing almost one and

a half percent so let's take a look at what's happening here in russia markets are now slipping back into heavy losses after getting a slog through strong european markets the r.t.s. is losing two and a half percent while my psych's is down one point eight percent it's. been a while so from ats and 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 the news flow in the bay to fill it streaming 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 or so problematic this week so any improvement in data will you know support the markets but it could also be a very short term looks like we're going to have the dollar for them to eleven hundred i think without any problems that's all the business is for now the headlines are that.

wealthy british style signs it's time to rise. the. market. has come to. find out what's really happening to the global economy with mike stronger

for a no holds barred look at the global financial headlines kaiser report on our. world with. bringing you the latest in science and technology from the realms of russia. we've got the future covered.

it's all. this is on t.v. the wall we go with the sinking ships trading negatively but relatively stable but asian markets are closed on a tough day plunging as well stocks it's a jolt from the u.s. credit downgrades. three years after george on the ship through a machine to try and seize self assess here we've seen bed with skulls and conflicts hearing how they're rebuilding their lives. rampant looting and rioting spreads in north london dolphins' of offices that injured trying to contain what started as a peaceful protest against the faithful to see. more now on what's all those actions have to overcome to get that country back on track after the war that's next non-special.