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 daniel bushell is following the situation from brussels and now joins us live danielle a volatile session we're not seeing the kind of nosedive many were predicting but it does not look good out there does it. feel over black monday all growing as the stock markets across europe. today the e.c.b. the european central bank made a wrist some the announcement to try and reassure people saying that it will boil it tullie in spanish which no one wants to touch at the moment but chancellor merkel of germany poti was saying that she wouldn't increase the e.u. bailout fund suggesting that if 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 those states for even more pain from the measures that italy's prime

minister silvio berlusconi says he'll bring forward the savage government spending cuts in italy by year now italians already furious saying bill oppose those measures so there are talk of a national strike committee 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 feet here in europe and they say they just don't trust them. that's america's in panic off to losing its aaa credit rating and it's squeaky bum time for investors at the moment. right daniel bushell live from brussels thanks for that. now the debt crisis in the u.s. triggered uncertainty despite a default being a very good buy a last minute deal in congress last week as were important i reports there's a mood in the new apps that the government should spend more money on peace at home then. broad. late comedian george carlin always spoke frankly about his nation

the only true lasting american value that's left buy and days buy 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 caught for defense and it probably needs to be cut more than is presently proposed for the pentagon priorities may be different the department reportedly spent twenty three billion dollars on global hawk drones alone this year taxpayers are estimated to spend one hundred twenty two billion dollars on the war in afghanistan the same amount that could cover an estimated twenty five million americans with low income health care an empire costs a lot of money because you have to spend a lot of money to defend 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 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 office 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 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 powers. always look at those to determine whether or not we will in fact mean to you know 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 marina porter r.t. new york. asian markets have closed in the red following a rocky trading session trading session i should say our team's prius has more now from asians third largest economy india all the markets than 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 this was then a huge shock to most people most people predicted that the stock would fall 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 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 it's way out of math is it is over so everyone's watching this very closely india is the third largest economy in asia and asia as a whole actually holds three true. in dollars of 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 are actually coming 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. well to discuss what's going on in the global markets we're now joined 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 don't do it as far as equity market but also as far as markers of concern so we have some kind of trouble most in the market and kind of unsure of tea and security of how the national bangs 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 side of the atlantic . well outside the atlanta we have a situation where finally after announcement standard 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 straight nosedive basically may have. this monday that hasn't been the case so far it's been limited the fall do you think the

worst is yet to come. sorry couldn't get can't hear the you're question and we're told as a little bit this is not a very good everyone except we have to complete maybe 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 guest 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.c. business as is keeping a close watch for you on the world markets to me three is there standing by for me how are russian stocks responding to the volatility over the situation of a global get a global selloff so russia is no exception would be. 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 kick of more of that in the round ten minutes and he said all right looking forward to that update from you a little later in the program thanks for that to me. burned cars smashed windows and looted shops london is recovering after a weekend of street dry it's the on ras follow the fatal shooting of a man by police it has seen at least thirty five police officers injured and one hundred sixty people arrested or emmet 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 pockets of on the right sort of. ranging around particularly in the areas of brixton in south london and fields and the

surrounding area in the north but the what's underway at the moment is a massive cleanup operation off to last night's looting and rioting police cars have been smashed up and attacked police themselves have. been reports of petrol bombs having been thrown at least if they were attacked by rights is shops with that far too. now i was in enfield last night where that the center of the violence started and. ranging through the streets smashing into whatever they could attacking shop fronts particularly shop fronts with attractive things inside it started off on saturday night in talking and 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 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 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. police is relationship with the community and there has been for many many. huge amounts of unemployment and has one of the highest youth unemployment figures. and 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. 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 at the government's actions on

the economy by more on this at r.t. dot com. three years ago georgia launched 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 innocent lives. in the south said the capital city still struggling to come to terms with the losses. 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. the russian troops to iraq russia sent in troops to protect the republic citizens many of which were russian passport holders and we also were hiding in basements and blown out to 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 han meanwhile the morial service began last night or will be held throughout the day these ceremonies started 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 canes with 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 there will last it will follow days but hundreds were killed and many inches tall was mostly destroyed. and of 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 signior has come to this cemetery where her son is birds five days unorganised two thousand and eight split her life into a before and after. her son a medical college graduate heard the republic's capital teen vaal was under attack from georgia she rushed home to help the injured she died in her arms as they lay trapped for days on to the rubble of their apartment block that was in the georgian alterian firing line. the only thing that makes her life worth living now is her twenty year old daughter they now live together in a newly built house to rounded by families with similar tragic stories. here this

area where we're live with specially built to those families who lost loved ones and were left with nothing in the targets 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 they try to retake control of the breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire nursed my abuse dive i was on duty with them and witnessed average thing that happened that night for i saw him fall on fire when you know it was going to be our last night but was still carried out peacekeeping mission and tried to be calm. most cool sound trained force meant to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks later russia recognize the city has independence. the last three years have changed the face of the state

i new residential area where new roads jobs and have been burst a new g.m. have been built. but signs of the conflict remain this behind my back are all that's left of the russian peacekeeping post for those who lived through the horrors of the brief but dadley conflict the memories are still very role. much in the question of reporting from seen volves self a statue. well just before the anniversary to meet the needs we do have spoke to our two you know other media about the south of said 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 r.t. dot com. syrian forces have launched a fresh attack on anti-government protesters across the country gunfire and

explosions have been reported in the cities and more than three hundred people have been killed in the past week the bloodiest in the five month uprising against president also its rule saudi arabia has pulled its a vaster 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 that everything is as it seems. is what. a lot of the sort of groups who are. yours or your. girl. who were also. at.

work who represents the. real grain girl is. a very long war and sort of. well later this hour more on the situation in syria and the arab. when we talk to iraq's foreign minister. well look now at international news in brief for you a document to britain's times newspaper reveals plans for ruling libya after moammar gadhafi is to oppose it includes that only gadhafi regime crumbling from within is likely to force him out but predicts 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. a 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 thought 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 live business update with. thanks and these i learned welcome to business artsy global markets of pressure for weeks at the opening that was a crescendo of selling after the american stock markets deep into the red but so here in hong kong managed to claw back

a little with both closing about two percent down russian markets also trading in negative territory there reports from the headquarters of the r.t.s. stock exchange. well we're saying that increased volatility in the markets from this morning continuing into the alternating the biggest losses of being in credit the events in the oil and energy mage's that gazprom lick will roll snags we see in the end that just says about the economic situation in the us and this year is a having this impact of pushing the price of the crude oil down there are still some stocks that are trading in the black we've seen the price of gold rise as investors the looking for a safe place to park their money out 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 rather they'd be willing to prop up spain and italy if that's required days but say 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 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 full last week again we've seen the u.s. be downgraded by standard and poor's over the weekend losing that aaa 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 uncertainty at the moment is taking the markets 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 says the country's economy won't be hurt and that oil prices go below a certain that. the key thing to watch for russia is the oil price if the 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 following because the oil is so crucial for both the parent

balance of payments and exports and for the budget. 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 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 account in general we are very weird traditional here and of course we need. some type of crisis in order to make things change i believe that the crisis of the fall of the need was a very good indicated to 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 count of voters of russia also shows that rush issue should should be choosing partners more carefully. smoove finally two figures on the market stall the set of fresh record as investors turn to assets with less risk deserving over forty dollars per ounce over the seventeen hundred dollars per ounce threshold through prices are lower following downgrade the world's largest consumer there's no confidence in the markets investors are concerned over 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 one point six percent the dax is more than two percent lower this hour. finally has moved to moscow and markets really slipping r.d.s.

down three point six percent. three point six percent as i said m i six two point seven five percent this is our second look at some of the main movers if we can and i will do that next i'm afraid of peter western from out on says with 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 new the new slow the dataflow 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 data will 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. all right you can always log on to our website 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 of u.s. open that.

it's wealthy british. split.

markets. find out what's really happening to the global economy. with mike stronger for a no holds barred look at the global financial headlines. hungry for the full story we've gone to. the biggest issues get a human voice face to face with the news makers.

at four thirty pm time these are the top stories from our global market fever stocks yoyo around the world in reaction to the u.s. credit rating cost and the spreading debt crisis europe's stock markets are once again in decline despite the central bank promising to buyouts baddish and italian government bonds. anarchy in the u.k. parts of london turned into a battlefield for a second night as rioters and looters react to a fatal police shooting thirty five police officers were injured and over a hundred and sixty people arrested. and it's three years since georgia launched an attack on the people of the small republic of south of setia we spoke to those who bear the scars of the five day conflict which claimed hundreds of innocent lives. as changes sweep through the arab world some countries are finding it easier to adapt than others next iraq's.