joy see the jones a movie that's a great way to go to the grand imperial should the socialist push coromandel you can a letter to the socialist that you see don't need to go and. read the sun the colonel was toto as used to retreat. world markets take a job on the back of america's credit rating agencies are played down with european stocks continuing to slide. three years after georgia unleashed its war machine to try and seize south of santiago we meet those who bear the scars of the conflict hearing how they're rebuilding their lives. 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. it's

three pm in moscow this is r g coming to you live with me and he's in our way first this hour asian stocks plummeted on monday following a rocky trading session 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 stepped drain prius streeter reports from asians third largest economy india or synthroid a grim session. all the markets in asia have pretty much a fall in indian markets were down two percent today the markets in south korea japan china new zealand and australia all fell today this wasn't a huge shock to most people most people predicted that this stuff would fall and most of the markets have been tumbling for days now in reaction to the often peak write it down grade of the u.s. economy so not a huge surprise especially after the u.s.

debt ceiling debate last week and the american dollar which has been tumbling for weeks now still all the markets are down here 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 is it over so everyone's watching this very closely india is the third largest economy in asia and asia as well actually holds three trillion dollars in the united states dad 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 some analysts are saying that this point in some ways benefit the asian economy because of the risk aversion that power 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. well asia's nations which of course hold the lion's share of american government could turn their backs on its bombs as the chairman of the hong kong based credit ratings agency has been telling her to. probably. country in nature will try to. buy. my version of. mystic because getting such a. waiting. for. us coming years. coming coming so. bank that it will. make operation an. economy. that. europe's

exchanges are on the slide again after already dipping in early trading argues daniel garcelle 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 debts investors have been fleeing spain on fears that the country of control so this was supposed to calm the markets the g seven g twenty group of leading economies also said they would quote to major 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 they collapsed in the wake of those statements as investors feel politicians good just how serious the situation is at

the moment but the owner of the storm continues to be europe a key concern is italy where prime minister silvio berlusconi promised to be spending cuts government spending cuts in the country but expose thing for more needs to be done for europe to recover from this crisis the italian government one point eight trillion euros now that means nothing to anybody but he's bigger than the tone. government debt are one or two gold and greece put together before the end of this year it will be needs to sell bourne's debt which is equivalent to the whole of the greek government bond market in other words all of the greek debt that we've been talking about for weeks and weeks and weeks is being. italy is huge and it is just a true big to manage to anyway be rescued in the way that other economies have far being bailed out by the e.u.

. isn't a crisis of its 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 and 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 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 hole some economists say it's time for the u.s. to compromise and world domination for domestic stability will 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 taxpayers are. estimated to spend one hundred twenty two billion dollars on the war in afghanistan is same amount that could cover an estimated twenty five million americans 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 consequence is the money is leaving the united states going to other places not to the places in the united states that leave 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 words 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 experiment the ongoing programs of 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. but our military must

be prepared to confront from church networks to rogue nations that are making efforts to change nuclear capability to deal with rising powers but only just look at those can 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 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 it and reno r.t. new york has the control well arty's business task has the world's markets on close watch arenas there for us now are russian stocks joining the international side today yes arnie's so they are the arts yes right now is losing over three percent

well then my sex is approaching two and a half percent in the red and in general russian markets have been very volatile today this quiet good news from europe but we'll have all the details on that in our business program at about ten minutes from now. three years ago the people of the small republic of south and sense you came under artillery attack by neighboring georgia the grief war in which to be trying to reclaim its alternative killing hundreds of people are just medina course is in the south and said capital would still bears the scars. attacks suddenly around midnight and the first trikes happen here of the russian pairs keeping basis now what you can see behind me what's left of the base there were around two hundred fifty soldiers here and the force almost waiting for the russian troops to iraq russia sent in troops to protect good republic citizens many of which were russian passport holders and we

also were hiding in basements and blown out 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 of this building untouched and of the memory of what happened han meanwhile the morial service began last night and it will be held throughout the day of these her 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 this struct of 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 here three years ago the wall lost its will follow days but hundreds were killed and many injured was mostly destroyed after bolling's 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 i sit and talk to my son so i know i will lie next to my dear boy. for the last three years stacey sidney has come to this cemetery in self-assertive where her son is burritt five days in august two thousand and eight split her life into a before and after. cases as one her son a medical college graduate heard the republic's capital teen vall was under attack from georgia he 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 is firing line.

play says 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 round it by families with similar tragic stories. here in this area where we leave were specially built for those families who lost loved ones and were left with nothing in that house across the street lives of women who lost two children and to the house opposite there was a man who lost both his wife and his child. all these people are of the terms of georgia's military aggression in august two thousand and eight when we try to retake control of the breakaway republic of south this saturday at 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 it's i saw him fall on fire when you know it was going to be our last night but it was still carried out peacekeeping mission and tried to become. more school

sound 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 have changed the face of this thursday i new residential air where new roads sharp and have been burst a new strategy and have been built but signs of the conflict remain behind my back are all that's left of good russian. for those who lived through the horrors of the brief but sadly conflict the memories are still very raw. that's the question all r.t. reporting from t. involves office as you. well joe maestas is a u.s. citizen who lives in south santee and back in two thousand and eight he nearly lost his daughter in some cities bombings he recalls the news from the american media board little resemblance to the reality george. the american press was very

biased in in the reporting of the whole conflict i was here in the city and my family in my in my siblings and friends in america and i spoke to them and there was nothing in the press about george attacking south that it wasn't until russia responded that it was being televised that russia is this attack in 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 proof she said my brother is there he called me he told me what what happened with going on and they basically took her off. to meet the needs may have spoke to r.t. and other media of the south and said you know conflicts as the third anniversary

approaches the president says georgian leaders and thanks to an international tribunal for crimes against russia and its nationals his full interview is it is available for you are to meet dot com and in two hours time watch our special report on how the republic of south a sense yet has recovered since. the history of this place runs through the centuries. a paradise for archaeologists sue ologists and ecological tourists. was one fateful night shots destroyed the harmony of life. to publish my. hunting dreaming dreams of.

two days of angry clashes in parts of north london had twenty six police officers injured and over one hundred sixty around the rest followed a peaceful weekend protest against the fatal shooting of a man by police and while the rioters were focused on a political point the disorder underlines certain points the authorities might want to consider and found out. mostly what's underway at the moment is a massive cleanup operation after last night's looting and rioting that happened in large parts of north london it started off in the end field area and then seem to spread outwards south towards the city center and also broke out south of the river thames harry it started off on saturday night in top know what started off as a peaceful protest outside the police station following the fatal shooting by

police of a man called mark duggan about 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 plaque that quickly circulated around the crowd and we're hearing that that's what sparked this violence in these areas that we're talking about particularly tottenham where this all sparked off it was really sort of a sort of spark in his gun powder keg this this fatal shooting of mark duggan. it's an area of massive social privation there's a lot of. police's relationship with the community and there has been for many many years the police in that area and in many other areas. in operations stop and search policy which basically means they can stop and search the belongings of anyone that looks even if they haven't actually done anything and people in those areas particularly ethnic minority still it unfairly targeted by these policies

there's also a huge amount of unemployment has one of the highest on youth unemployment because . living off benefits has become a way of life in these people some of them are literally how they live on benefits at the moment they see no time in the future in which they will have a job and be able to better themselves so people do you feel ignored and neglected in these communities 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 political point taken from this that these people feel disassociated from society. the last thing to be told on policing and social integration. well london's definitely a city on edge right now and there's one group that has an extreme solution to its troubles as we report at our t.v. dot com hard line muslims want someone down the street real law in the british

capital and it's not going down well with londoners find out more on their plans to get strict with the center. and flying high or not moscow to hold another food competition for amateur aviators try to retrieve the sky watch their attempts at r.t. 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 your outdoor across anti-government protests during the month of the muslim holy month i should say

ramadan heavy shelling was reported after a black clouds of smoke were seen rising from buildings in the city more than seven hundred people have been killed since the uprising began in march international relations expert professor mark almond says syrian politics are riddled with intrigue. and. were. very raw i want. to also remark was given that should be yours or your player or. american service or. money also. later today more on the situation in syria and the arab world when we talk to

iraq's foreign minister. zarif look now for you at international news in brief the u.s. has launched an investigation into saturday's helicopter crash in afghanistan they 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 were gone 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. most powerful storm in decades is heading towards mainland china tropical storm we've brought winds and torrential rain causing huge disruption over the weekend more than three hundred thousand people have been evacuated to safety around shanghai thousands of homes are left without power in south korea as the storm brought down power lines and trees and it's

expected to reach western parts of north korea by monday evening. rain is here next with a live business update for you stay with our team. hello and welcome to business here on arts now russian equities are diving in line with the global markets following losses an aids or any europe within hours of opening russia's my substrata almost three percent spurred by falling commodity spices market watchers say trading is top the end of all it's hard with many of them prefer nstic risk off the table well joining me now is jacob knowledge in for economist at morgan stanley thank you very much for joining us thank goodness alison what's the downgrades in fact well it's a good question because all the. s. and p. downgraded the u.s. u.s. treasury bills actually rallied the people found that it was a safe haven in a time one certainty. more of the downgrading over in instruments i think

this shows the basic problem about the downgrade because u.s. treasury bills are the deepest and most liquid financial instruments help there and everybody measures their credit worthiness by a relation to u.s. treasury bills so what does it mean to grade the treasury bill it's a very difficult question and markets are still trying to work out well you mentioned the effect of global markets about the effect on russia and particular the effect of no direct link the key thing to watch for russia is the oil price if all price goes below about eighty dollars a barrel then russia's in trouble and if it stays above eighty dollars a barrel russia's fall because the oil is so crucial for both the balance of payments and exports and for the budgets. we don't expect a repeat of two thousand and eight when you had a funding crisis in developed markets which hit growth and then hit commodity

prices and then hit russia at the moment we still see the support for can refute prices is still there but basically. the force that keeps oil prices are is the consumer in the emerging world let's say in china and they continue to pour in more oil and not supporting your prices around the world at the moment so although we speak specks of volatility some choppiness. looking ahead it looks like russia's recent people supported with oil at around one hundred dollars of them are. now let's talk about the rating agencies for a second standard and poor's gave a triple a rating to sub prime mortgage securities during the peak of the financial crisis could you say could we trust them well i think rating agencies are useful as a source of information to help you think of the risks that you're facing but everybody operates in the wholesale markets should be trying to think things

through for themselves. and so i think that it was useful the s. and p. downgraded the u.s. because it's provoked a debate about what does it mean to be three aaa what does it mean to be a highly rated credit i think that it's going to be. wrong too soon that rating agencies somehow have better information or no more than other participants in the wholesale markets and i think that probably we're going to see the traditional all agog believe standard and poor's and moody's and fitch be challenge by new entrants with different perspectives because in the past they've tended to travel in a pack and they have been prosecuted or when everybody thought there's no risk they said there's no risk and when everybody sees a lot of risk they say there's a lot of risk but i think that that can lead to volatility rather than reduce it was a dollar for second leg doesn't stand as

a global currency after the downgrade well i think that the dollar is so widely used in so many markets in the oil market in demand. such as russia in the ukraine so widely that it takes a long haul him for it to lose its called role as a reserve currency but where else would you go you could go into the euro but europe's got problems you could go to japan but your parents debt is over choices or is the u.s. you could maybe go into the swiss franc or the swedish kronor with your story in dollar or the canadian loony but these are all relatively small economies they're not deep enough and liquid enough to perform the function of a reserve currency of scale so i think that we're going to be stuck with the dollar for some time to come if you look at the history of the parent sterling that used to be the world's reserve currency and britain stopped being the major economy in the world me eighteen eighteen years but it stopped being the reserve currency only the nineteenth sixteen's so it can take decades for this effect to work its way

through. all right jake of now a chief economist at morgan stanley thank you very much for your insight from here . now let's take a look at the markets now and asian markets have closed the negative territory grants were mostly lower and export is for us on the pressure and the worries about . how this was of course there is sort of what's going to happening in the u.s. and europe problems and market jitters. european markets have gone back and so the read the sign the pledge from the european central bank surprise stop or involves the footsie is that one and a half percent the south are the ducks is losing support and three percent. and here in moscow markets are slow back to heavy losses after getting a slight very strong european markets the arts yes as number three percent more than my sex is very concerned a half the size in the read. that's all the business is for that's our new theme

of the day and go have another update for you and less than an hour's time that lines are next. emission free critic asian free comes for charges free from a german free. three stooges free. zone free blood cancer funding video for your media projects and a free media gone to hard teeth dot com. for the full screen we've got it for. the biggest issues get a human voice face to face with the news makers on the t. .