it comes after last week's route and it's on the back of america getting its credit rating cut as well as the euro zone that refuses to heal or to his previous reader joins us now from those third largest economy india. of course reacting strongly what are people saying about why specifically. that's right a need all the markets in asia have pretty much fall in indian markets were down two percent today the markets in south korea japan china new zealand and off really all fell today this wasn't a huge shock to most people most people predicted that this dog would fall most of the markets have been tumbling for days now in reaction to the often peak credit down grade of the u.s. economy so not a huge surprise especially after the us debt ceiling debate last week and the american dollar which has been tumbling for weeks now so all the markets are down

here asia is reacting very strongly we're hearing strong words from chinese political leaders as well one chinese newspaper actually said the u.s. government has to realize that the good old days when it used to borrow its way out of math is over so everyone's watching this very closely. what does this mean for ages major emerging economies such as china and india you spoke a little bit about the chinese reaction but give us some more details. well as you know india is the third largest economy in asia and asia as a whole actually hold three trillion dollars of the united states china being the number one u.s. debt holder in japan being number two so they have a huge interest in what's going on over in the united states actually gone analysts are saying that this point in some ways benefit the asian economy because of the risk aversion that's happening so if investors actually look away from u.s. treasury bonds. they might actually want to invest more in certain factories in

china but obviously we can't predict exactly what's going to happen yet but it's clearly creating a domino effect across the world and asia is going to continue to watch to see what happens. from new delhi thanks for that update on the asian markets. but like korea said asian nations hold the lion's share of american government and they could turn their backs on its bonds as the chairman of the hong kong based credit ratings agency has been telling r.t. . probably. try to wish that means that they're going to buy. my. mistake because giving such a. coming. to be one of the. coming years. bank.

lending money cooperation and fun. economy long term. europe's exchanges are on the slide again after already dipping in early trading artie's daniel bushell in brussels explains why. markets in europe are expected to further slide over the course of the day that's despite the pledge by the european central bank to boy up spanish debt investors have been fleeing spain on fears that the country's debt of control so this was supposed to calm the markets the g seven g twenty group of leading economies also said they would quote a global response to this crisis but asian markets are. still a sea of red off the 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 at the moment but the oil of the storm 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 but the 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 arland portugal and greece put together before the end of this year it will be 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. it really is huge need is just too big to manage it any way be rescued in the way that other

economies have so far being bailed out by the e.u. . in a crisis of its credit rating was downgraded on friday morning from a correspondent. late comedian george carlin always spoke frankly about his nation the only truly 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 for the 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 request for 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 taxpayer. are estimated to spend one hundred twenty two billion dollars on the war in afghanistan the same amount that could cover an estimated twenty five million americans with low income health care an empire costs a lot of money because you have to spend a lot of money to defend it you have to spend a lot of money to promote it you have to have a lot of people working on various aspects of economic support for imperial adventures around the world the 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 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 a 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 a nuclear capability to deal with the rising powers but only just look at those 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 that marina port arthur new york. business desk has

a close eye on the world markets were in there for us and joins us to tell us how russian stocks are responding to the supply of well on this of the russian markets are very volatile at the moment they're going back to the heavy losses that we saw this morning and actually the arts yes there's news in almost three percent but of course we'll have all the details on what's going on in the markets and our business but let's end about ten minutes from now. all right thank you marina will be joining of course a little bit later in the program for more details on what's happening on the world markets thanks for that. three years ago the people of the small republic of south a six year came under artillery attack by neighboring georgia the brief war in which to the sea trying to reclaim its territories claimed hundreds of lives artie's medina course is in the south the capital which still bears many scars. georgette 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 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's. and in troops to protect the republic citizens many of which were russian passport holders and we also were hiding in basements and bonet out buildings overhand twenty three soldiers were killed and many injured and sound we managed to talk to they told us that they want to keep this building untouched and of the memory of what happened ham meanwhile the morial service began last night and so 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 with a small children people were listening to the rec room and they also released white

balloons into the sky and the memory of what happened ham three years ago that will last it will follow but hundreds were killed and many inches tall was mostly destroyed. and as all of the face of the city has changed within these years still the locals are trying to restore their lives and we managed to speak to some of them who are still struggling to bring their lives back to normal. i come here almost every day. and talk to my son. next to my dear boy. for the last three years. has come to this cemetery where her son is buried five days to. split her life into a before and after. when her son a medical college graduate heard the republic's capital teen 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 military is firing. he says the only thing that makes her life worth living now is your old daughter they now live together in a newly built house to rounded by families with similar tragic stories. in this area will leave special the bill to those families who lost loved ones and loved with nothing in the touts across the street the two children into the house opposite lives a man who lost both his wife and his child. all these people are victims of georgia's military aggression in august two thousand and eight when he tries to retake control of the downed 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. i saw him falling far 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 returned to three weeks late so russia recognized the status to. 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 the conflict remains this ruins behind my back go to good russian peacekeeping poles. who lived through the horrors of the police but down the conflict the memories are still we. are she

reporting from tivo. to me spoke to archie and other media on the south the setting of conflict as the third anniversary approached the president says georgian leaders cyprus really should face an international tribunals for crimes crimes against russia and its nationals this interview is in full for you to meet. two days of angry clashes in parts of north london have seen twenty six police officers injured and over one hundred sixty arrests it's not small pockets of violence are still active the rest followed a peaceful weekend protest against the fatal shooting of a man by police. in the british capital announce joins us live laura have police brought the situation under control. well obviously it's much less attractive to shops in the daylight and i think that's part of the one of the factors that has brought this situation much more under control this monday morning we all still as

you say here in reports of pockets of on the right sort of groups if you ranging around particularly in the areas of brixton in south london and fields and the surrounding area in the north but mostly what's underway at the moment is the massive cleanup operation off to last night's looting and rioting that happened in large parts of north london and it started off in the enfield area and then seemed to spread outwards towards the city center and also broke out in the south of the river thames here in brixton. parts of those towns are still closed off the police are treating the entire area as a crime scene they worked. all the pavements there examining the broken glass through the shop windows and picking up any clues that they can find as to who did this in order to try to make arrests they've made one hundred sixty arrests altogether over the last couple of days. of these disturbances police cars have

been smashed up and attacked police themselves have we're hearing reports of petrol bombs having been thrown at police and certainly they were attacked with bricks by riots is shops with that far too and looted now i was in enfield last night where that the center of the violence started and there were guys. ranging through the streets smashing and running whatever they could attacking shop fronts particularly shop fronts with a tract of things inside computers stores phone stores bike shops you saw people making off with televisions literally as big as they could carry i saw one man making off with a vacuum cleaner so literally they were just grabbing everything they could in some cases loading them into the cause and then and then driving off with the loot they even attacked pharmacies in enfield town center and also starbucks coffee shops and stuff and the violence then quickly spread to other areas as these thieves travel between this small area in north london they were communicating on twitter and

blackberry to tell each other where they were and where the police weren't i don't mind telling you that it was pretty scary up in enfield last night seems like the violence really spiraled out of control and quickly why did it sound so destructively. well it started off on saturday night in tottenham what started off as a peaceful protest outside the police station following the fatal shooting by police over a man called mark duggan there about three people holding the story three hundred people holding a silent vigil outside the police station we're hearing reports that what sparked it was a member of the police attacking a seventeen year old girl with a baton that quickly circulated around the crowd and we're hearing that that's what sparked this violence these areas that we're talking about particularly tottenham where this all sparked off it was really sort of a sort of sprawl of gun powder keg this this fatal shooting of mark duggan.

it's an area of massive social privation there's a lot of. police is relationship with the community and there has been for many many years the police in that area and in many other areas in london operators stop and search policy which basically means they can stop and search the belongings of anyone that looks george even if they haven't actually done a thing and people in those areas particularly ethnic minorities feel that they're unfairly targeted by these policies there's also huge amounts of unemployment talking has one of the highest on youth unemployment figures. and living off benefits has become a way of life in these people some of them are literally hopeless they live on benefits at the moment they see no time in the future in which they will will have a job and be able to better themselves so people do you feel ignored and neglected in these communities they're not making a political point we should make that clear these are looters and they're criminals and they're running around grabbing whatever they can but also people are saying

that it's pretty important a political point is taken from this that these people feel disassociated from society and this should last in debate on policing and social integration. of course we'll continue to keep an eye on the situation in london for us live. from the british capital artie's. now london's definitely a city on the abs right now as we heard and there is one group that has an extreme solution to its troubles as we report at our team dot com hardline muslims want to lay down the shari'a law in the british capital and it's not going down well with londoners find out more on their plans to get strict with centers. and flying high or not hold another flugtag competition for amateur aviators to at least try to reach for the sky box there attempts at art dot com.

saudi arabia has pulled its ambassador from syria adding weight to the international condemnation of president also its 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 derails or to cross antigovernment protests during the muslim holy month of ramadan heavy shelling was reported after black clouds of smoke were seen rising from buildings in the city more than seventeen hundred people have been killed since the uprising began in march international relations expert professor mark all meant so syrian politics are riddled with intrigue. and there is a congress that. is what. i want. to

hold. for years old. girl. who have also. had. the rhetoric. about. who represents. the real grain girl. who cooks your. war and sort of. well later this hour more on the situation in syria and the arab world when we talk to iraq's foreign ministers to do stay with us for that up next it's the latest from the world of business and of course the markets with marina. hello and welcome to business here on r.t. the global markets have been under pressure for weeks and the opening there was a crescendo of selling asian stock markets deep into the red but so clear and hong

kong managed to claw back a little with both closing down about two percent well russia markets are also trading in negative territory less costs live now to our two sara firth who's off the headquarters of the r.c.s. stock exchange hello sorrow what can you tell us what's happening with the markets right now. what we're seeing that increased volatility in the markets from this morning continuing into the off. the russian markets began trading today in negative territory we saw my thanks and yes begin to be able to close that gap a little bit earlier on but again now ts trading down at about three percent and my sixth at about two in a hospice and now the biggest losses of being in credit the moment in the oil and energy mages that gazprom. that we've seen the best guesses about the economic situation in the us and the year it's a having this impact of pushing the price of crude oil down there are still some

stocks that are trading in the black we've seen the price of gold rises investors are looking for a safe place to park their money we've also seen the effect from the european markets today and there was a bit of positivity coming from them when the european central bank said that they'd be willing to prop up spain and italy if that's required. it's going to have some confidence to the impact this that may be pretty temporary people are still very unsure about exactly how this is going to play out we've seen a lot of times the euro zone really taking it to the brain can being able to pull back from the boat last week again we've seen the u.s. downgrade. by standard and poor over the weekend losing that aaa rating the best time in u.s. history as of today take that deal to raise the debt ceiling in the u.s. right up until literally the eleventh hour so there's still a lot of investor uncertainty at the moment is take the markets will be able to

ride this out and find some stability we've heard from the deputy finance minister here in russia the russia doesn't intend to change its investment policy. the u.s. downgrade that we've heard from a lot of analysts this is remember only one of the major three ratings agencies it has downgraded the u.s. has seen really is most symbolic than necessarily having this huge apocalyptic impact that some people were fairing today say more of a ripple effect rather than the ways but certainly people are saying you know this is really challenging the perceptions that were in place that the u.s. is this understandable superpower that completely change we're now in a new financial territory and says you can see increased volatility it doesn't seem that the global markets are out to the choppy waters just yet. thank you very much for that. the downgrade may undermine the dollar's position as a global reserve currency some countries are consider reducing their reserves and

so although let's risk the currencies but i have always burbank sees it as a great chance to hedge against the falling oil price. it never can go to negatively correlated with the oil price you know if you lou could even the history last three years every time one who prays lose the price if american did lose my spirits is not going to include hate she gives blue prius ratio this is why. you have been ignoring that p.c. p.c.r. . price. out a lot still to look at the markets now gold has such a fresh record as investors turn to asses lustrous gold is adding over forty four dollars per ounce while silver is gaining about a dollar fifty this hour in crude prices are a new low we're following the downgrade over the world it's the largest oil consumer there's no confidence in the market and just as open cerned over to the

man for crude both why it's so weak and brands are losing over three dollars this hour. and then they show markets have closed the negative territory banks were mostly lower and exploiters were also on the pressure and other worries about future demand and all this was of course the result of what's happening in the u.s. and europe it's a market jitters. the european markets have gone back into the red and that's the spy it's a pledge from the european central bank supply silver involves the footsies down one and a half percent small the dax is losing two point three percent this hour. and here in moscow markets have slipped back to have you also this after getting a slight boost from european markets the r.t.s. is losing three percent the sour and the my psych's is almost with a half percent in the red. it was sent from its and says the downgrade monday is inheriting last week's fears. this week we're back back in business again and

people will be looking at the news 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 fall into eleven hundred i think without any problems. that's all the business news for now the headlines are next. wealthy british soil it's time to. market why not. find out what's really happening to the global

economy in the reports on r.g.p. .

it's two thirty pm in moscow these are the headlines on our world markets take a jolt on the back of america's credit rating cut asia's sar play down with european stocks continuing to slide. three years after georgia unleashed its war machine to try and seize south of santiago we need those who bear the scars of the conflict here and how they're rebuilding their lives. and rampant looting and rioting spreads in north london dozens of officers are injured trying to contain what started as a peaceful protest against the fatal police shooting of a man. now as changes sweep through the arab world some countries find it easier to adopt than others next iraq's foreign minister tells r t how the revolutions in the region have been positive for his country. they put the.