oh she's available to move the joint be the children's home of venus the gateway to the ground in theory truly the torch was there. you can a letter to. see dodi to go and. read this the colonel was which is used to retreat. for the market stocks to go you know around the world in reaction to the u.s. credit rating and the spreading of the in debt crisis. anarky in the u.k. parts of london turn into a battlefield for a second might as rioters and looters react to a fatal police shooting. and war stories three years after georgia's attack on south of santiago we talk to those who bear the scars of the conflict but not how they were building their lives.

come to you live from our headquarters in central moscow you're watching archie with me and he says now way it's four pm here in the russian capital two pm in brussels and world markets are struggling through a turbulence thanks to the downgrade of the u.s. credit rating over the weekend and the ongoing heroes debt crisis europe stock markets are once again in decline a brief rally after the central bank said it would start to buy up spanish and italian government bonds to restore confidence proved to be short lived archies daniel bushell is following the situation from brussels and now joins us live daniel a volatile session we're not seeing the kind of nosedive many were predicting but it does not look good out there does it. is over black monday all growing. because across europe. today the e.c.b. the european central bank made a really the announcements. try and reassure people saying that it will blow up

italian and spanish which know most of the top at the moment the chancellor of germany spoil the party by saying that she wouldn't increase the e.u. bailout fund suggesting that it's only and spain collapse if their economy goes on and that she and germany europe's largest economy won't help instead merkel is piling the pressure on the states for even more painful measures that it's at least prime minister silvio berlusconi says he'll bring forward the government spending cuts in italy boy a year now italians already furious saying they'll oppose those measures so there were talk of a national strike and it's really at the moment obviously worrying news there the g seven g twenty groups of leading economies have held an emergency conference call to say that they've got the situation under control but investors are voting with their feeds here in europe and they say they just don't trust them the fact that's america's in panic off the losing its aaa credit rating and it's squeaky bum time

for investors at the moment. right daniel bush told live from brussels thanks for that. now the debt crisis in the u.s. trade or it uncertain despite athol being a very good buy a last minute deal in congress last week as were important i reports there's a mood in the queue last that the government should spend more money on peace at home and a war abroad. late comedian george carlin always spoke frankly about his nation the only true american value that's left but i am days buying 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 us to compromise world domination for domestic stability but also probably have to see a significant request joining 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 or defense and it probably needs to be cut more than is presently proposed for the pentagon priorities may be different because partment 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 a low income health care an empire costs a lot of money because you have to spend a lot of money to defend that yes i spent

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 of 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. as 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 to just cut the food stamp project by twelve billion dollars we have multiple experimental ongoing programs now defense department each of which is large enough to offset the food stamp cuts and i think if we have forty one

million people already who are dependent on government aid for food getting food to them is probably a first priority but defense secretary leon panetta is looking further afield for his priorities we are a nation at war. we face a broad and growing range of security threats and challenges. we are 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 looking at those to determine whether or not we will in fact maintain a strong defense here and throughout the world 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. r.t. new york. asian markets have closed in the red following a rocky trading trading session i should say arsons previous reader has more now from asians third largest economy india 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 australia all fell today that's why that huge shock to most people most people predicted that the stock football 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 the private specially after the u.s. debt ceiling debate last week and the american dollar which has been tumbling for weeks now 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 a way out of math is that over so everyone is watching this very closely india is the third largest economy in asia and asia as well actually holds three true. dollars and 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 are actually gonna handle it very thing that is playing in some way benefit the asian economy because of the risk aversion that's happening so if in fact there is 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 fifty what happens. when you discuss what's going on in the global markets when else when live

by dr stephens the president of frankfurt school of finance and management thanks for being with us this afternoon it looks like the european central bank's confidence measures are being overshadowed here by the u.s. downgrade how do you interpret the market reaction. well the market reaction is very clear it's a global tone good as far as equity markets but also as far as markers us concerned so we have some kind of trauma in the market and kind of unsurety security here of how the national bang's european central bank and also the u.s. fed will react to that. and u.s. markets of course are opening what do you think we can expect on side of the atlantic. well outside the island do we have a situation where finally after announcements started and poor's downgraded the sovereign bonds of the united states but this is only

a slight correction as such so it will not really hamper the functioning of the global markets but certainly it may result in a more expensive refinancing of the u.s. that everyone expected this to be a straight nosedive basically may have. this monday that hasn't been the case so far it's been limited before do you think the worst is yet to come. so it couldn't get can't hear that you're question it would have told us a little bit this is not a very good everyone next we have to complete maybe get a little bit on the markets this monday so far the fall has been limited do you think the worst is yet to come. i can't understand your question sorry. could you speak not too loud please we seem to be having some volume problems with our guests there in frankfurt we're going to say goodbye dr stephens

on the line for us of course just for a bit live there from frankfurt thanks for that. r.t. business sas is keeping a close watch for you on the world markets dimitri is there standing by for me how are russian stocks responding to the volatility over the situation of a global panic a global sell off so russia is no exception with the odds yes falling down for you know how it was that night sixty two point seven percent and this is ahead of the opening of the u.s. markets which are looking at a loss of two percent at the very more on that in around ten minutes all right looking forward to that update from you a little later in the program thanks for that to me please. burn cars smash windows and looted shops london is recovering after a weekend of street riots follow the fatal shooting of a man by police that is seen at least thirty five police officers injured and one hundred sixty people arrested parties more emmett is in the british capital.

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 hearing reports of talk it's of on rat city. 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 a massive cleanup operation after last night's looting and rioting police cars have been smashed up and attacked police themselves have. been reports of actual boulders having been firing at least with me they were attacked by rights is shots with that far too and now i was in enfield last night where that the center of the violence started and there were guying of you ranging through the streets smashing into whatever they could attacking shop fronts particularly shop fronts with

attractive things inside it started off on saturday nights in talking and what started off as a peaceful protest outside the police station following the fiesole shooting by police over a man called mark there 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 party that quickly circulated around the crowd and we're hearing that that's what sparked this violence that these areas that we're talking about particularly tottenham where this all sparked off it's an area of massive social privation there's a lot of. the police is relationship with the community and there has been for many many years there's also a huge amount of unemployment and has one of the highest on the 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. no time in the future in which they will have a job and be able to better themselves safe people do feel ignored and neglected in these communities. those are the first time anger has spilled onto the streets of london r.t. dot com you can watch how the public reacted to proposed budget cuts back in march hundreds of thousands of people expressed their fury of the government's actions on the economy by more on this at r.t. dot com. three years ago georgia an attack on the people of the small republic of south of setia the five day war in which georgia tried to reclaim its old territories claimed hundreds of lives of course is in the south of serbian top little city still struggling to come to terms with the losses. attacked suddenly around midnight and the first tribes have been here as of the russian pairs keeping based now what you can see behind me and what's left of the base

there were around two hundred fifty soldiers here and they fought all night with your good russian troops to iraq russia's done in troops to protect the republic citizens many of which were russian passport holders and me all through were hiding in basements and bone counted 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 it will be held with throughout the day when he started eleven thirty five pm that's exactly the time when george opened fire over the sochi hundreds of people again 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 their wall lost its were followed. but

hundreds were killed and many injured in what was mostly destroyed after bombings there and of all the place of the thirty has changed within these years still the 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. i come here almost to reduce i sit and talk to my son to a new low next to my dear boy. for the last three years stacey signet has come to the cemetery in self-assertive where her son is it five days unorganised two thousand and eight split her life into a before and after. hours when her sound a medical college graduate heard the republicans capital t. involved 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 is 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 surrounded by families for similar tragic stories. in this area where we're live with specially built for those families who lost their loved ones and were left with nothing in that house across the street lives of women who lost their 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 august two thousand and eight when we 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 things that happened that night

forgive violent fire when you know it was going to be our last night but it was still carried out peacekeeping mission and tried to be calm. cool sound reinforcement to protect its citizens and prevent more civilian deaths within five days georgian troops had been recount three weeks later russia recognized such as independence. the last three years have changed the face of this thirty a new residential air where new roads sharp and have been a new strategy and have been built. but still signs of the conflict remain this truants behind my back are all that's left a good russian peacekeeping post for those who lived through the horrors of the brief but badly conflict the memories are still very raw for my cynical tional i see reporting from scene vaal south ossetia. well just before the anniversary to me

three news related spoke to our two you know other media about the south of said the conflict the president says georgian leader saakashvili should face an international tribunal for crimes against russia and its nationals his interview is in full for you at party dot com. syrian forces have launched a fresh attack on time to government protesters across the country gunfire and explosions have been reported in the city as i've thought and amar more than three hundred people have been killed in the past week the bloodiest in the five month uprising against the president also its rule saudi arabia has pulled its about sudar from syria adding to the international condemnation of the crackdown on protesters international relations expert professor mark almond says syrian politics are riddled with intrigue and not everything is as it seems. her biggest losers. are good. for.

her. with iraq. so what was. yours or your. org. or. our. real ground there. are also war in syria. but later this hour more on the situation in syria and the arab. when we talk to iraq's foreign minister. look now at international news in brief for you a document released to britain's times newspaper reveals plans for ruling libya after moammar gadhafi is to close it includes not only could ses regime crumbling from within is likely to force him out but critics mass defections from the

security forces are likely the plan was drawn up by the national transitional council with the help of britain and other western nations. and other nato helicopter has crashed landed in southeastern afghanistan just days after one was shot down taking the lives of thirty american and eight afghan soldiers the alliance hasn't reported any casualties in the latest incident and said that the cause was under investigation there was not front to be any enemy activity in the area at the time all this comes amid the handover of security from foreign to afghan troops in some regions. candlelit vigil has been held in the u.s. state of ohio after a man killed seven people including an eleven year old boy in a shooting rampage the incident on sunday it was found to have been caused by a family argument among the victims was the gunman's girlfriend and her brother he was later shot dead by police. i'll be back with a recap of our top stories after

a wife business update with me. thanks and he said i learned welcome to business artsy global markets have been pressure for weeks at the opening there was a crescendo of selling out of the american downgrade asian stock markets in the deep into the red but so here in hong kong managed to claw back a little bit of closing about two percent russian markets also trading in negative territory deep south of reports from the headquarters of the articles stock exchange. well we're seeing that increased volatility in the markets from this morning continuing into the all spinning the biggest losses of being held at the name it's in the oil and energy mages that gazprom liquid ross now that we see in the end that suggests is about the economic situation in the u.s. and this year is a having this impact and pushing the price of the crude oil down there are still

some stocks that are trading in the plight we see in the price of gold rises in the past it's a looking for a safe place to park their money and we've also seen the effect from the european markets today are there is a bit of positivity coming from them when the european central bank said another they'd be willing to prop up spain and italy if that's required days but it seems to have some confidence to the investors that may be pretty temporary people are still very unsure about exactly how this is going to play out how we've seen a lot of times the year isn't really taking it to the brain can being able to pull back from the cold last week again we've seen the u.s. be downgraded by standard and poor's over the weekend losing that chip pull a rating the first 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 certainty that the man that is taking the market will be able to ride this out and find some stability. well russian markets as we mentioned are

deep in the red to jacob now from morgan stanley as the country's economy won't be hurt and that oil prices go below. the key thing to watch for russia is the oil price if all the price goes below about eighty dollars a barrel then russia's in trouble and if it stays above eighty dollars a barrel russia's foreign because the oil is so crucial for both the parent balance of payments and exports and for the projects. we don't expect a repeat of two thousand and eight when you had a funding crisis in developed markets which it growth and then hit commodity prices and then hit russia at the moment we still see the support for commodity prices is still there so although we see expect some volatility some choppiness. looking ahead it looks like russia is reasonably well supported with oil at around one hundred dollars a barrel at the moment. from asset

management believes ripples in the world economy have spurred russia to be more careful. russia's a country in general we are very very poor additional here and of course we need. some type of crisis in order to make things change i believe that the crisis of the need was a very good indicator of the russian authorities show in the country shouldn't be very much dependent on oil prices metal prices and i believe that this year sovereign debt crisis in some weston kind of writers of russia also assures that russia sure should be choosing partners more carefully. when finally two figures on the market stall the set of fresh record as investors turn to assets worth less risk gold is adding over forty dollars per ounce over the seventeen hundred dollars per ounce threshold through prices are lower following

downgrade the world's largest oil consumers no confidence in the markets and buses are concerned over a future demand for crude of light sweet crude and brant are losing more than three dollars a barrel. european markets have gone back into the red despite a pledge from the european central bank to buy sovereign bonds and forty's down to one point six percent the dax is more than two percent lower this hour. finally has moved to moscow and markets there really slipping r.t.s. down three point six percent the r.t.s. . three point six percent as i said m i six two point seven five percent this hour sic look at some of the main movers if we can and i will do that next i'm fraid peter wester from out on says with the downgrade monday is inheriting last week's yes this week we're back in business again and people will be looking at the new the new slow data feel extremely closely because the markets are extremely volatile and there's no conviction for any sort of strong recovery in my view the situation

that were problematic last week are still problematic this week so any improvement in later will you know support the market but it could also be a very short term it looks like we could have the dollar fall into eleven hundred i think without any problems. you can always log on to our web site i.t. dot com forward slash business for more on these stories join me in fifteen minutes time we'll have the latest market scores for you and the latest analysis on the situation after the s. and p. downgrade us under.

the big.

wealthy british. market. what's really happening to the global economy. me with max conjure for a no holds barred look of the global financial headlines tune in to kaiser report on r t hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers.