by heading south the dow is hovering between two and a half and three percent down it's the first reaction to the downgrading of america's credit rating over the weekend with the eurozone debt crisis also spooked investors. in new york and joins us live looks like the u.s. has picked up the trend give us more details as to what's going on at the moment. as you mentioned things are heading south of the in the first minute of trading the dow opened down more than two hundred points within an hour it was down more than three point two percent now that number is going up and down and changing but clearly it indicates a climate of uncertainty this climate of uncertainty isn't just here here in the u.s. but it is all over the world and of course this is this comes after the us and poor's downgraded the u.s. credit from aaa to friday evening this is the first time in history the

country of the world's largest economy was kicked out of this triple a club and to sum it up he says of course as the u.s. government needs to get its fiscal house in order following all the drama surrounding the debt deal the credit agency believes that enough has not been done by u.s. lawmakers to balance its books in addition to all of the political posturing all of the bickering all of the bow and forth mudslinging hurt. over all confidence in the u.s. economy that is according to this credit agency and so after we saw that the u.s. credit was downgraded from aaa to doubly what else happened we saw the republicans in the u.s. blame president obama we saw the ministration or the surrogates of the u.s. administration blame the tea party so the blame game just continued even in the aftermath. of the credit of the united states being downgraded right now it's still

it's a climate of uncertainty the credit agency said that there is a chance that the u.s. credit rating could be downgraded even further if the u.s. does not get its fiscal house in order and does not stop this ongoing process of borrowing and spending. volatility came after friday's downgrade but of course a default was averted earlier in the week last week a last minute deal with congress what do you hearing about how all this turmoil. well what we're hearing is that essentially it's the actions as i mentioned the actions of the u.s. leaders the government all the bickering that took place led to this it's not just about the economics but the way in which a compromise can be reached by the leaders that are at the head of the largest

economy in the world and if investors are looking to the u.s. to invest here put their money here they want to feel secure and that security according to the you know the credit agency one out of three. very very much compromised but we do hear that even when it comes to the cuts that were agreed upon many are lawmakers and many americans believe that there is some imbalance in spending by the u.s. government for example the u.s. defense and security department of the u.s. government they spend and get a budget of seven hundred and five billion dollars per year we know and it's been recently reported that the pentagon spent twenty three billion dollars buying new global hawk drones and then twelve twelve million dollars have been cut from the food stamp program in the united states there's more than forty million americans living off of food stamps as you can imagine this is this is they feel a lot of america. feel that there is no priority put on the people right now that

the priority is still going towards military spending wars a quick meant arms and spending money overseas outside of the borders of the us when when the people living here are the ones that need the finding jobs and the attention and the spending most of all. from new york thanks for that update. now europe's stock markets are also in the red brick 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 are just daniel bushell is following the situation from brussels. the e.c.b. the european central bank made a risk announcement to try and reassure people saying that it will boil it. which no one wants to touch the moment. of germany's poti by saying that she wouldn't increase the e.u. bailout fund suggesting that if spain collapse if their economy goes on that she

germany europe's largest economy won't instead mcaleese piling the pressure on those states for even more painful measures that it's in these prime minister silvio berlusconi says hugh bring forward the savage government spending cuts you need to leave boy a year now italians already furious saying they'll oppose those measures so there are talk of a national strike committee at the moment obviously. the big g. seven g. twenty groups of leading economies have held an emergency conference call to say that they've got the situation on the 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. well johan over editor in chief of trans magazine which is belgium's leading business journal says although this plunge isn't as sharp as the two

thousand and eight fallout the two still bear comparison. lehman was a kind of big bang where it's now we are more in a situation where we are on a gradual path in terms of growth prospects in the united states in the eurozone and also with respect to. these are handling this crisis goes on to fundamental issues the lack of political union and the labor market flexibility. are still being. looked at as long as. these are not. taking of these problems and going for real incredible solutions to have this crisis situation. and asian markets have closed in the red following a rocky trading session archies prius reader 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 is over so everyone is watching this very closely india is the third largest economy in asia and asia as a whole actually hold three trillion dollars in the united states china being the number one u.s. debt holder in japan being number two so they have a huge interest in what's going on over in the united states actually gone analysts are saying that this point in found ways to 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 if clearly creating a domino effect across the world in asia is going to continue to watch to see what

happens. and our news business desk is keeping a close watch on the world's markets to me today is here how are russian stocks responding to this global volatility well one of the worst trading sessions we've seen since two thousand and eight actually the biggest one day drop for the r.t.s. it plunged more than seven and just one session the my six declining five and a half at the close so really a lot of panic a lot of selling a lot of last minute selling but that was pretty much expected after the dow fell almost free percent just at the opening of the session. in other news of burnt cars mash windows and looted shops london is recovering after a weekend of street riots the on ras follow the fatal shooting of a man by police and it has seen at least thirty five police officers injured and one hundred sixty people arrested and that 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 sort of. 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 of last night's looting and rioting police cars have been smashed up and attacked police and so. we're hearing reports of having been thrown at police. raids by right to shops just to. now i was in enfield last night where the the center of the violence started and. ranging three the streets smashing the whatever they could attacking shopfronts

particularly shop fronts with attractive things inside it started off on saturday night in top 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 a box 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 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 how 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 say people do feel ignored in these communities. well it's not the first time anger has spilled onto the streets of london walk on to argy dot com and watch how the public reacted to those watching back in march hundreds of thousands of people expressed their fury at the government's actions on the economy find more details that are to be done. three years ago georgia laws to 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 of capital city still struggling to come to terms with the losses. attacks suddenly around midnight and the first tribes have been hand the russian piss 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 stand in troops to protect the republic citizens many of which were russian passport holders and many old who were hiding in basements and bowing down to buildings over the han 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 and so 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 hundreds of people came last night to light candles and to pray for those who were killed three years ago in a brief but destructive conflict many came with a small children people were listening to the rag and they also released white balloons into the sky and the memory of what happened ham three years ago that will

last. but hundreds were killed and many injured timor was mostly destroyed after a bomb and of all the face of the city has changed within these years still the locals are trying to reach for 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 learn next to my dear boy. for the last three years stacey sydney has come to this cemetery and self-assertive where her son is birds five days to norco's two thousand and eight split her life into a before and after. when her son daughter a medical college graduate heard the republic's capital teen vall was under attack from georgia she rushed home to help the injured she died in her arms us they lay trapped for days on to the rubble of their apartment block that was in the georgian

military is firing line. yet. the only thing that makes her life worth living now is who twenty two year old daughter they now live together in a newly built house to rounded by families with similar tragic stories. in this area will leave specially built to those families who lost loved ones and loved with nothing in the touts across the street lives of women 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 you try to retake control of the downed breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire nursed my abuse dive i was on duty with them and witnessed average things that have. and that night

four kids i saw in volunteer fire when you know it was going to be our last night but it was still carried on peacekeeping mission and tried to be calm. most ghost town trained force meant to protect its citizens and prevent more civilian deaths within five days georgian troops had been retired three weeks late so russia recognized such a scheme to. the last three years have changed the face of this thursday i new residential air where new roads jobs and invest in new zealand have been built . but still the conflict remains 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. much in the question of reporting from scene vaal south ossetia. the regime in georgia is

similar to that of mubarak era egypt says so who are former georgian m.p. an expert on politics in the caucasus we are talking about the country that has no opposition represented in the real politic ally shaka zulu treats georgia as his own fiefdom the only difference to the size of georgia and egypt has really matter how much egypt was playing a great a great deal for the united states in terms of first ability in the middle east georgia does not in the region but the fact that we have political prisoners we have no free media we have autocratic rulers whose reckless behavior could pull through political decisions already played so many negative for my country he is the one who started this genocide against his own people and the cooperate the only cooperate and the one who started the war the one who is going to be responsible

for this action. just before the anniversary to meet him it's very difficult to r.t. in other media about the south of the conflict the president says georgia's leaders should face an international tribunals for crimes against russia and its nationals is full interview is available on r t v dot com. a document leads to britain's times newspaper has revealed a western backed blueprint outlining how rebels plan to control libya after moammar gadhafi is deposed it scribes aims to take over the security infrastructure with foreign help moderate. research associate at the center for globalization says nato's goals in libya are different to those it presents to the world. the people in the transitional council individuals are talking about a change. prime minister and. the british probably.

did it. with all the bombing campaign trip we actually get the population. of the population to overthrow the government. not bombing tripoli. i mean tripoli to. get out you're very different from what. most of the world might not normally be targeted. and been trying to create blackouts in tripoli and districts around. terrorist act. now to the violence in syria where there has been fresh attacks on anti-government protesters across the country gunfire and explosions have been reported in the cities of dare al gore and more than three hundred people have been killed in the past week the bloodiest in the five month uprising against president ourselves rule saudi arabia has been seen from syria adding to international condemnation of the

crackdown on protesters for more insight on this story i'm joined from brussels by a professor of history. who joins us on the line. thank you for being with us this evening president promises fair and free elections but at the same time continues a violent crackdown on protesters how do these things go together. yes. we have some very well about syria the country not. egypt it's not a revolution. population against. the government. and communities and groups own interests so i spoke in syria. for example at the beginning in march where we had to demonstrate to the street but.

no. mind because a. demonstration a big influence from. the movement. and. became afraid of the installation in syria of. state. you have to understand that each group interest and the population is divided so no support directly to not be specially said but because they are afraid that the civil war or. the other rights has led to syria's deepening isolation even without relatively close contrary and now saudi arabia joining this chorus of international condemnation what do you think the government wants to achieve and who will it be able to rely on in the future.

so the international police sinecure you know condemnation of the. international community is not to see that. we can so we can see in libya for example. because nobody. has interest. of the destruction into destruction of. syria. just to example to being able to israel and you will see. her. it could be other excel but bashar al assad is not a bad deal because since some years negotiation begin between the two states israel and syria and. us very careful about his border. because he is afraid that.

israel will enter in syria but because there is a big community. in syria and he assured the security of these border vote you will see. here for some years. to give a lot of good senior to syria so do you. and the syriac could be a good medium between you and iran for example so between russia. i think everybody preferred. it professor pierre five from brussels thank you very much for your analysis. well next hour we have more on the situation in syria and the arab world when we talk to iraq's foreign minister. do

stay with us for that next hour right now here with a live business update for you. welcome to business r.t. russian markets took an enormous hit on monday the r.t.s. is down almost eight percent my six five and a half percent at the close the biggest one day fall in three years reverses have been mirrored in markets around the world traders have been reacting to the downgrade of american dead on friday and concerns over europe's ability to get out of its merits. the situation is clearing nothing short of a panic we have seen a somewhat panicky mood in the markets last week and luckily we had forty eight hours today just the s. and p. downgrade over the weekend we seem quite volatile session this morning expectedly the market opened quite sharply down then with a pretty hard start of the losses and closing still lower and especially this is a bull cross the blue chip universe which is the easiest to get rid of and we have

so we have what we observe at the moment in terms of trying to see it is we've seen a hedge funds trying to get in the blue chip names and along with these situations trying to pick up some value plays in the second tier universe for let's take a look at those figures once again for you yes exactly those figures seven point eight percent my sixty five and a half percent as we mentioned before the biggest one day drop in three years since the crisis of two thousand knight if we look at some of the main outstanding i'd say movers ross telecom there are more than ten percent in this session the stock has been volatile even without the news about the s. and p. downgrade of u.s. foreign debt burbank down six point three percent one of the most liquid stocks on the markets but the only little game news poll is gold up point four percent because of higher gold prices will look at them and say the. u.s.

markets are trading deep in the red but we'll look at them in a second unfortunately was showing european figures here for three down three point three percent. for the hof let's move to u.s. market figures then dow jones down more than two percent nasdaq three percent this is pretty expected the bank of america top loser the down more than nine percent on the dow germs. back to european market figures then the footsie down three point three percent as i mentioned data. five percent this is of course despite statements from the european central bank that it will be intervening on the on the market to buy sovereign bonds and now it's moved to commodities gold a set of fresh record it's worth more than seventeen hundred dollars per ounce silver also gaining two percent this is of course as investors are looking for

a safe bet at a time of great volatility but drew prices are showing a different dynamic in light sweet down three dollars brant three dollars eighteen cents this is of course as investors are concerned the future demand for crude oil as that of the biggest group consumer the united states has been downgraded. now are russian stocks nosedive monday jacob now from morgan stanley says the country's economy will not be hurt and that's oil prices go below a certain level the key thing to watch for russia is the oil price if the oil 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 speak specked 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 headlines are next with a nice. it's easy it's. easy to. see.

wealthy british style holds a spot on the front. end of the. market. come to find out what's really happening to the global economy for a no holds barred look at the global financial headlines tune in to cause a report on our team.

at seven thirty pm in moscow these are the headlines probably seen global markets fever stops yoyo around the world in reaction to the u.s. credit rating caught and the spreading into the crisis in europe stock markets are once again in decline to spite the central bank promising to buy up spanish and italian govern. bombs. 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 is three years since georgia launched an attack on the people of the small republic of south is set to speak to those who bear the scars of the five day conflict which claimed hundreds of innocent lives and. nexus cross talk with peter about.