india oh she's available in the movie the joint the hotel rooms the movie that's the gateway hotel the grand imperial truly the george west coast coromandel new kind of letter to socialism which i say don't need to go and. read this in the kernel was her job as used to retreat. global market fever stocks yoyo around the world in reaction to the u.s. credit rating cut emphasis reading european debt crisis. anarchy in the u.k. parts of london turn into a battlefield for a second night as rioters and looters reaction afraid o. police shooting. and war stories three years after georgia's attack on south and central we've talked to those who bear the scars of the conflict about how they're rebuilding their lives.

it's five pm in moscow you're watching our team and now with our top story this evening world markets are struggling through a turbulent session thanks to the downgrade of the u.s. credit rating over the weekend and the ongoing eurozone debt crisis europe's 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 argues daniel bushell is following the situation from brussels. is over black monday all growing as the stock markets across europe had still been in the cells today for the e.c.b. the european central bank made a risk on the announcement to try and reassure people saying that it will boil entirely and spanish that which you know most talked about the moment. germany spoiled the polls. why saying that she wouldn't increase the e.u.

bailout fund suggesting that if it's only and spain collapse if their economy goes under that she 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 only as prime minister silvio berlusconi says he'll bring forward the savage government spending cuts it's only by a year now it's already furious thing bill oppose those measures so there are talk of a national strike you need to be at the moment obviously worrying news there expose thing for more moves to be gone for europe to recover from this crisis the italian government one point eight 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 the year it will need to sell bourne's debt which is equivalent to the whole greek government bond market in other words all of

the greek debt that we've been talking about for weeks and weeks and weeks is being . italy is huge need is just big to manage to anyway be rescued in the way that all their economies have so far been bailed out by the e.u. and 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 we just don't trust them the fact that's america's in panic after losing its aaa credit rating and it's squeaky bum time for investors at the moment. dr stephens from frankfurt school of finance and management says conflicting opinions on the e.u. leaders are contributing to market uncertainty. the market reaction is very clear it's a global downgrade as far as equity markets but also as as far. is. because it's

going so and so we have some kind of promos in the market and it kind of unsurety on security of how the national bangs european central bank and also the u.s. fed will react to that market always will react to policy decisions and i think the certainty has come to the market because we have still different voices within the european community i think and this is the basis of the problem. asian markets have closed in the red following a walking trading session. has more from asians third largest economy india 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 way out of math this is over so everyone is watching this very closely india is the third largest economy in asia and asia as the whole actually holds three trillion dollars

to 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 some analysts are thing that is quite in some ways benefit the asian economy because of the risk aversion that's happening so if in fact there is actually looked 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 exact price is in the u.s. triggered uncertainty despite a default being averted by a last minute deal in congress last week and as reported by reports there's a mood of the u.s. government to spend more money on peace of home and war abroad. relate to.

george carlin always spoke frankly about his nation the only true lasting american value that's left buying games buying things people spend money they don't have on things they don't need today country longer even by borrowing and consuming is in desperate need to cut it spending us defense and security spending has remained untouchable soaking up seven hundred five billion dollars we're 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 right now with fourteen point four trillion in the hole some economists say it's time for the u.s. to compromise a world domination for domestic stability also probably have to see a significant request coming 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 that 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 it 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 low income health care an empire costs a lot of money because you have to spend a lot of money to spend 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 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 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 all-star. fire departments to more than forty million americans on food stamps they also make sacrifices to just cut the food stamp budget by twelve billion dollars we have multiple experimental ongoing programs in the defense department each of which is large enough to offset the food stamp cuts and i think if we have forty one million people already who are dependent on government aid for food getting food to them it's 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. there are military must be prepared to confront from church networks to rogue nations that are making efforts to change a nuclear capability to dealing with

a rising power it's. always look at us to determine whether or not we will in fact mean a strong defense here and throughout the world eyes on the world all citizens face mounting struggles at home rescuers count the fact that americans will probably remain willfully ignorant of the red white and blue. because the owners of this country know the truth it's called the american dream because you have to be asleep to believe that arena court party new york. well it's his business to ask is keeping a close watch on the world markets is monday to me three is standing by how our russian starts responding to the volatility well there was called they responding with a sharp drop actually on the r.t.s. we're seeing a nosedive of more than five percent my sense is not far behind the point seven percent this hour so you see of red all across the board was seeing all blue chips

the least three percent more than that in around fifteen minutes. all right thanks for that more details for me of course thank you said in just a few minutes. burned cars smashed windows and looted shops in london is recovering after a weekend of street riots the unrest while the fatal shooting of a man by police there has seen at least thirty five police officers injured and one hundred sixty people were arrested. 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 are still hearing reports of pockets of already sort of creeps if you. ranging around particularly in the areas of brixton in south london and fields and the surrounding area in the north 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 going to tax police themselves have. been reports of petrol bombs having been drained of police and certainly they were attacked by riots is shops with that far too and looted no i was in enfield last night where that the center of the violence started and. you see ranging through the streets smashing. whatever they could attacking shop fronts particularly shop fronts with attractive things inside stores he's all for and saturday nights in taught and what started off as a peaceful protest outside the police station following the face all shooting by police of a man called mark there about three hundred people holding a silent vigil outside the police station we're hearing reports that were six. member of the police attacking a seventeen year old girl with

a proxy 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 provocation there's a lot of. the police is relationship with the community and there has been for many many years there's also huge amounts of unemployment and has one of the highest on the youth unemployment. 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. reporting there and she's continuing to keep us informed of all the developments on the streets. our twitter feed and you can follow her underscore column in her latest tweet that readers could move the market westfield

shopping center is behind barricades and there are rumors that suggest oxford street tonight that of course a big shopping center lots of tourists stay with what's happening in london and here from the wrath of our worldwide correspondents underscore cops. three years ago george will attack on the people of the small republic of south of setia the five day war in which georgia trying to reclaim its old territories claimed hundreds of innocent lives. in the south of capital a city still struggling to come to terms with the loss of. georgia attacked suddenly around midnight and the first tribes happen here at the russian pairs keeping base now which you can see behind me i was slumped over base there were around two hundred fifty soldiers here and the force we think with the russian troops to iraq russia sent in troops to protect the republic citizens many of which were russian passport holders and we all sure were hiding in basements and blown

out buildings overhand twenty three soldiers were killed and many injured and sound we managed to told to they told us that they want to keep of this building untouched and of the memory of what happened here meanwhile memorial service began last night or will be held throughout the day the ceremony starts at eleven thirty five pm that's exactly the time when george opened fire over the city 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 and then he 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 they will last it will follow days but hundreds were killed and. many injured in what was mostly destroyed after warming so out of all the place of the thirty has changed within these years still oracles

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 rigidly i sit and talk to my son so i know i will lie next to my dear boy. for the last three years has come to the cemetery in self-assertive where her son is great five days unorganised two thousand eight split her life into a before and after. traces as one her sound you wallachia medical college graduate i heard they were public's capital tina 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 i'll tear ease of 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. in this area where we're live with specially built those families who lost 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 of the terms of georgia's military aggression in all those two thousand and eight when you try to retake control of the breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire and nursed my abuse dive i was on duty with them and witnessed average thing that happened that night or i saw violent fire when you know it was going to be our last night but was still carried out peacekeeping mission and try to the car in all schools santry

enforcement to protect its citizens and prevent more civilian deaths within five days georgian troops have been repelled three weeks later russia recognized that he has independence. the last three years have changed the face of this thursday a new residential air where new roads sharp and have been burst and you have been built. ins of the conflict remain behind my back are all that's left of the russian cold for those who lived through the horrors of the brief but gladly conflict the memories are still very raw. much of the question i see reporting from the scene volved south ossetia. just before the anniversary to meet him is razor spoke to our city and other media about the south the setting of the conflict the president says georgia's leaders should face an international tribunal for crimes against russia and its nationals his interview is in full at

the top. syrian forces have launched a fresh attack on antigovernment protesters across the country gunfire and explosions have been reported in the cities of their own door and hamas more than three hundred people have been killed in the past week the bloodiest in the five month uprising against president also this rule kuwait and saudi arabia have pulled their ambassadors from syria adding to the international condemnation of the crackdown on protesters international relations expert professor mark allman says syrian politics are riddled with intrigue and it's not everything and everything i should say is not as it seems. very good and we were bombed. iraq along with.

yours or your. questions are. also. what are. the real granger is. there also war inside of the. next hour more on the situation in syria and the arab world when our team talks to iraq's foreign minister a look at some of world news in brief for you this hour a document released to britain's times newspaper reveals plans for ruling libya after moammar gadhafi is deposed it can. not 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. another 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 this latest incident and said the cause is under investigation there is not far to be any enemy activity in the area at the time and all this comes amid the handover of security from foreign to afghan troops in some regions. another shock for a nato country in afghanistan as we report. dot com a british soldier is under investigation for allegedly chopping the fingers off the dead taliban fighters as keepsakes also. a passenger plane crashes in russia as far east but there are no fatalities thanks only to a miracle says i when it says we report on that find out more on this and other stories that are.

just under ten minutes away here on our to recap of our top stories after business with dimitri. thanks in the saloon welcome to business artsy russian equities deeply in the red at the end of the trading day following losses in asia and europe market watchers say it's choppy a volatile after friday's american downgrade of e.c.b. ends. mention door to me now is not the you cannot be the sales manager the police your financial corp so a lot of good to see you right now yes is down five percent my sex three and a half percent how would you describe the situation. well as the situation is clearing nothing short of a panic we have seen

a somewhat panicky mood in the market last weekend luckily we had pushed out our suggest the s. and p. downgrade over the weekend we seemed quite volatile session this morning expectedly the market opened quite sharply down then recuperated parts part of the losses and closing still lower and especially this is a bull cross the chip universe which is the easiest to get rid of and what we observe it will be observed at the moment just turns a blind to to see is we see hedge fund stranger period of the future needs and little new situations trying to pick up some value plays in the second tier universe in what is a good time to look so interesting a blog you know opportunities ought to stay clear and wait for another day. there is clearly going to be a balance of some sort in this market because all markets are to not move in that the same direction all times the switched directions my personal view would be that it's too early struck about just a serious bargain so even even if we are to do. a little bounce at some point

tomorrow next week it's still too early things still have to get worse when they get better because they're still quite substantial problems on the t.v. p.c.b. problems the. federal reserve which we're looking at tomorrow we're going to stick with it to see whether there's any reaction to the european debt crisis but there is any reaction to the s. and p. downgrade when you change up in two words if you leave me on the table and all that obviously is a risk to the markets suggesting that still a lot of uncertainties talk about a long term rally because so many verses right now have sold as well. do they put them on t.v. or do they look for some kind of safe haven i mean we've seen gold reach one thousand seven hundred dollars. is it too expensive right now. gold to buy old technical means is somewhat oversold at the moment however it can continue being oversold that for the next several months or even quarters to come in this

environment ironically despite the s. and p. downgrade what we have seen is that the safe haven is still the u.s. dollar which is backed by u.s. treasuries in the short term there's no immediate solution to that we've seen the u.s. dollar somewhat just selling off against some political parties however strengthening ironically again ever against emerging markets piracies today and this is going to be the case in the near term we haven't seen any more selling dramatic the magnitude so far in terms of future indicators in the treasuries we don't expect that to happen again and near term the u.s. is no closer to bankruptcy or to default today versus what it was last friday and everyone clearly understands that and there's no selling in treasuries because the s. and p. downgrade just one downgrade out of four nationally recognized rating agencies therefore according to these secular market money money market funds are not forced

to sell based on this a technical downgrade so apart from statements coming like from china to get rid of the goal as a reserve currency its position has such a currency has not really been undermined by this downgrade. exactly how with the big three with that it's just that there's no alternative in the medium term the euro seems to be somewhat. more expensive versus where it should be trading at the moment by logical means however there are other technical indicators that basically would require some time for the finances to just to where they should be trading following the catches it was you supplied so. for the u.s. dollar perhaps in the medium term there should be so much appreciation but in the short term we don't expect any significant sell off the e.c.b. is more at risk at the moment there for the euro currency is more at risk for the moment in our view and to the soul than say of the c.b. has been the question for many investors given the these safety fund the european

union has close to five hundred billion euros against a potential trouble italian debt near two trillion. euros and given that people are about obviously asking for potential lending of last resort which could be the federal reserve there are still the reserve the u.s. treasury says the ultimate seed have been the ultimate final lender and in this mark in this market environment at least a lot of final question for you how you aren't seeing money for as short as long as the market requires and the only downside risk from just printing money is clearly potential inflationary pressure on the market. while the how long do you think it will take before this will settle down. i think we will have to see some positive indicators of. the growth coming out of the united states in a second up here to be confident that we're not in a double dip recession historically the. u.s. g.d.p.

pulling below two percent means we're not out of ten times that the u.s. market will go into recession hopefully this is not the right indicator for us at this point because this has been somewhat of a special situation to get there so clearly you see some indicators of sluggish growth so far in the second quarter and it's sluggish even outside of these walls of you have seen the japanese earthquake and these spikes in the oil price. we just see some hot growth in employment relief to see some reaction from the federal reserve that's what more is there narky statement is quite important. because attention. indication of we have some monetary intervention is here in this environment given that the fiscal intervention is out of the question at the moment calling us debt ceiling resolution whereby the u.s. government pledged not to increase their their their budget pledge to cut their

spending somewhat tend to take their debt under control therefore in this environment when the government stimulus is impossible the monetary system was basically that is the ultimate hope that we have so i guess the potential monetary montrachet end up by the fed and some indicators that growth is still there in the second quarter is going to help the markets or it was great so much all right most of the ground thank you so much we will be looking to that statement by. choose they thank you so much for your comments are you can they get the sales manager to see a financial corporation talking to business of the like. and that's all we have time for just a reminder the r.t.s. is down five and a half percent you might say it's a free and a half percent more on those figures for your next headlines and i still nothing. wealthy british style. time.

market why not. come to. find out what's really happening to the global economy with mike's cars or for no holds barred look at the global financial headlines tune into cars report on our cheap. world. bringing you the latest in science and technology from around flushing. we've dumped the future coverage.