the joy to be able to be on the view that's a great way to get to know the grand imperial valley the george weston bush coromandel neutrino let's build those which are good to see don't need to go and. run this in the county was her job as a retreat. britain is on full scale of words as scenes of violence and destruction flare beyond london after three days of clashes between rioters and police. wall street hits a new low since the two thousand and eight financial crisis as fearful investors withdraw from the u.s. stock market sending shock waves across the world. plus as the eurozone tries to whether its economic storm poland's shelving of plans to adopt a single currency highlights a broader european desire to stay out of the euro crisis.

it's noon here in the russian capital you're watching r.t. now buildings on fire windows smashed and shops looted and these are the events devastating the streets of london as police officers in their thousands are deployed to tackle the lawlessness now spreading to other cities are these lower emmet is keeping a close eye on the situation. in the blogging where the streets are full of police and all the streets are full of rioters i believe it is just about a hundred meters behind me a car is on fire the air here is full of great smoke you might be able to hear the police helicopters circling above me as police try to get control of the situation there about one hundred fifty people in the street just around the corner we went round there but we just thought it was too dangerous to stay and it's not just here in hockney there has been violence in brixton because the kreutzer on fire and we're hearing the collatz is also spreads writes to forming that there are all

sorts of people on the streets here but it is no it's not being perpetrated by ethnic minorities it has to be said that there's a lot about arrest and this is certainly the worst violence that we've seen so far it hasn't been confined to the hours of darkness at this as i say has been going on for three nights in business make the parts of london that hot soup are being affected and here's my report from. london's burning rioters and police take over the capital for a third night as looters target yet more areas of london in a spiraling cycle of violence on monday night the violent shoot a few signs of abating in fact it spread further around the city said here in east london it had any right to set fire to cars and tried to break into more shops meanwhile terrified residents of london could do nothing but no court and police sealed off streets and treat whole areas as crime scenes with local communities

trying to come to terms with the wave of looting engulfing north east and south london in enfield looted shops making off with whatever they could carry in nearby edmonton a man was stopped south in princeton wired to strew rocks at police and in tottenham where it all began the high street is a burned out shell of the police the job center are the banks. everything that's happening the recession you know there's a lot of anger about that no jobs nothing for the youths to do so yeah i don't know our first race in america you know i mean it is sad that it's the it's the poor people that's suffering it was sparked by the fatal shooting by police of this man mark duggan tottenham once on says about why and how he was killed but his shooting with just the spark in an exceptionally dry tinder box tottenham and other london boroughs have long been simmering with resentment towards the police towards social

injustice and towards unemployment this is a community which is a fantastic preciously have levels of unemployment and are losing their lives and services if clubs been closed there is never an excuse for violence but when it is a tinderbox the war isn't concerns untreated of a couple with a spark which is a far tottenham has one of the highest unemployment rates in london particularly amongst the young black people are far more likely to be stopped and searched by police than whites and together with hackney brixton walthamstow and lewisham which also saw violence it's become a victim of what prime minister david cameron is now calling failed multiculturalism this. powers are some of the best groups. these groups interest. groups are usually you know the people the.

spirits. to be sure you all know races for the breeze. but. you know something should be done unless these gangs of youths tire of the violence there doesn't seem to be a real reason why this looting should stop it's unlikely the perpetrators. have jobs to go to and school's out for the summer residence clear more on rests on the streets in the coming days the losers on making a political point and hardly anyone in these communities supports them but many are saying that there actually is a political point that social integration in parts of the country is deplorable social mobility is nil and the relationship with the police is that bad as it's been for years and with the cuts in government spending looming over the next few years the situation is very unlikely to get any better. or to pack the east of the

bullet scene of already correspondents is currently in london bringing you the most recent updates on the situation on our twitter account follow all the latest developments there that's twitter slash r t underscore com now armored vehicles have been that support onto the streets of ealing in the west london looting continues of course the country police have already arrested over three hundred people so far again you can log onto our other score card for. always police stretched beyond their limits a looter some as young as fourteen have been clearing the shelves of abandoned shops andrew gilligan from the british newspaper the sunday telegraph was just one of the many victims of the violence. i was i was mugged i was pulled off my bike and my bike was stolen by. it's. on the way to the studio miter about forty five minutes ago i spent most of the day in tottenham which is where it all kicked off interviewing people who had lost their homes as

a result of these riots and they are furious with the writers they say that what happened to mark duggan the man who was shot by police is absolutely no excuse at all for what happened to them they blame the police for not being quick enough to contain the trouble in time in the first place and quite clearly what's happening in hackney and. croydon and all the other places where this order has broken out tonight there's absolutely nothing to do with the police shooting of a man ten miles away and it's not anger at all i think it's criminality and people are taking advantage of what they see is a lawless situation and overstretched police force to do their worst and help themselves to free goods little is it spreads very quickly this kind of thing we've seen its impact in the arab world we've seen it social media spreading unrest in the arab world probably for the good there but here it's spreading exactly the same way arguably for the virus. lots of kids on blackberries and instant

messaging and twitter and all the rest of it spreading the word about where the next rock is going to be and they might be able to move faster than the police i think perhaps i mean if this carries on like this it is quite worrying to seem to be breaking out in four or five different parts of london where you can share your opinion of the u.k. riots by participating in our latest podcast log onto our website our teeth are hard to contribute to today's start because we're asking you what's the driving force behind the u.k. riots also far the most part of the response is the dismay over the economy a quarter of you say it's a failure of multiculturalism and some of you think that criminals are going for a profit and have. releasing are to blame. moving to america now where the stock markets are in freefall as investors rush out in reaction to the u.s. losing its aaa credit rating and that's despite president obama's speech in which he declared america was still an economic powerhouse are these medina portnoy has

more from new york. market reaction to the historic downgrade of america's credit are sure it is the worst day on wall street since the two thousand and eight financial crisis all three major u.s. stock indexes plummeted between five and seven percent on monday now all of this coming just hours after standard and poor's downgraded the u.s. credit kicking america out of the triple a club this is already creating a climate of uncertainty or increasing this climate of uncertainty and lack of confidence among investors when they look to the stability of the u.s. economy the u.s. president barack obama of course try to inject some optimism into the public and into the markets on monday saying that america has been and always will be our aaa economy he says that washington's problem is not a lack of policy or plans but

a lot of lack of political will and he says many lawmakers have been insistent on drawing lines in the sand and now it is urgent for all parties to come together to come up with a long term approach on how to reduce the deficit in the u.s. the u.s. has a debt of fourteen point three trillion dollars and growing and at this point many investors as we saw on monday are selling now and asking questions later clearly the markets have not been reacting favor favorably to the fact that standard and poor's did downgrade america's credit for the first time ever in history so asian markets have been hammered and here's the u.s. is heading for a recession with india has reacted with optimism c. gets ready to implement a fast track reforms to encourage the mess to consumption and would stand to be economic struggles are bringing us the latest on the financial situation in asia

from new delhi. asian markets have been tumbling in reaction to the latest news of the athan p. downgrading of the u.s. economy but actually many politicians and many analysts in india think that this country will only be affected in the short term by what's happening that they're actually better than many western countries especially your key in countries that handle what's going on in the united states we have india finance minister pranab mukherjee coming out and saying that this is only going to be really a short term impact analysts are thing that the bric countries will in the long term be a lot the fact that by what's happening in the united states but actually if investors move if they continue on this risk aversion and move away from u.s. treasury bonds they might actually feel more comfortable in investing in these emerging markets like china and india china has taken a much stronger stance on what's going on they've called us. immoral and irresponsible and they're saying

a chinese newspaper recently said that the united states really needs to move away from borrowing its way out of its massive india on the other hand has had more of an optimistic response to what's going on than china and they're really hoping that in some way they might be able to benefit from all of this for more perspective on the asian optimism we cross live to peter t. treadway chief economist for of asian based rating agency who is of the region right now thanks very much sir for being on the program and as you heard there india's the finance minister is full of confidence for the country's economy quoting that the fundamentals are strong what are the chances of a brics nations to turn this financial may have it to their advantage and can they do so. well i don't see how they can turn to i would agree that india is probably the least vulnerable if we're talking about trying to prove zero. or differently or girl role. i think they're really each country they're really

quite different they did love together in this in this acronym works but the there india there's where i was for some optimism in india india has a number of problems that are india structural inflation corruption in the government infrastructure there's a long list of things and they're not related to the us crisis or the european crisis china on the other hand is part of the system in a much deeper way and i would have to say that the reason why china has so much u.s. debt is because it basically has held down the value of its currency and so that it can maintain its export competitiveness and by holding down the currency it has to buy dollars and then those dollars get invested in u.s. treasuries and it creates renminbi at the same time which if put in the chinese

banking system is inflationary which i'd say some inflation numbers came out which that are a little higher and it looks like china will have to be tightening here and it's a tragedy i want to focus on what's happening in the u.s. we heard president obama yesterday telling the american public that his administration knows what needs to be done to solve the problems he didn't need a ratings agency to tell him what was wrong so what does washington know now that it didn't know on the eve of its potential default. you got me i think most investors would view those comments as being just simply political rhetoric the u.s. has some underlying problems here it's in its coming out of a recession where housing is still in the really not out of the recession and the majority of the u.s. consumer is still in a d. leveraging phase and no reason no recovery. have been strong without housing and

housing is not there there's still probably in excess of zero to two and a half million houses in the dory of houses plus the normal inventory and this is going to take several years so the u.s. economy was limping anyway and then you throw on the political dysfunction. which we just witnessed you put on you throw in the big budget deficit that the u.s. has now the standard and poor downgrade which i think is more symbolic than anything else because the u.s. isn't going to default to prince its own. bars in its own currency it can print and so the u.s. in a legal sense will never do for us. and i think that to some degree the the reaction of the markets to the standard for the downgrade is really interesting because the treasury's have rallied and they're the ones that got downgraded whereas other including the stock market has been really heavily hit so it's really

been more of. a flee from risk and that's entered the downgraded instruments surely you know it's sort of ironic here interesting you mentioned there to follow suit and in that we're seeing that the danger there in the euro zone and also you had mentioned in one of your articles that governments are going to have to default i mean there's a lot of worry now that this is going to be similar to two thousand and eight if you say that governments will have to default is this the only solution really. you know i think it's the most likely solution i have kind of a pessimistic view of democracy and populism i'm not against democracy but there's a tendency toward for voters to vote for things that they can't pay for and we've got a. demographic situation a long term which is negative of you know falling birth rates and large numbers of retirees so default now i use the term defiance. it is

a very broad economic sense not in this you know when great if greece defaults that's a that's a legal default they don't pay what they owe in another current they they they borrow in euro's but the us bars and dollars pandoras in. japan in the u.s. for example aren't going to default in a legal sense europe trickier because the european central bank is not connected with any one country and so the greeks care just print money to pay their creditors so agree with the u.s. though the u.s. is really. its growth rate would be slow anyway and the enormous debt that has been piled up during the recession also due to the obama policy it weighs on the country plus the consumer debt. and for the u.s. to reduce unemployment it probably has to grow faster than three percent that doesn't look like that's going to happen you know there's

a growth of the population. there's certain amount of productivity increases so you need to have a sort of a lot of economic growth to pull down the unemployment rate it looks to me like many other economists like the unemployment rate is going to stay high. and i think that the u.s. doesn't resolve its problems if it does the last chance in the two thousand and twelve election ok well thank you very much for your insight there mr peter teach friday chief economist fred asia based rating agency talking to us from hong kong thank you. well as the a euro zone members join forces to save their common economy one e.u. state is happy it isn't a bailing out the single currency poland was supposed to join the euro zone next year but those plans are now a nice it was so eager to stay out of the crisis he said makes a lot of shots he reports. the rioting in greece shook greece from the country's economic crisis were felt across the european union shaken international

markets worldwide. i while parts of europe have been teetering on the edge of economic abyss poland has remained stable in the storm along with this currency. there is a widespread belief in the country that being outside the euro has helped keep poland well out of trouble. if we were part of the eurozone and we would have been obliged to help countries like greece and portugal help out someone else without solving our own problems it's almost guaranteed that prices would go up and join the euro zone which would damage my business recent opinion polls suggest that more than sixty percent of balls want to keep their own currency a dramatic turnaround from just a few years back a few years ago the euro was seen as the euro club was seen as something very exclusive polls aspired to that they wanted a country that. now the name of the euro has been sought. by the troubles in greece and italy polls don't want to be dragged into this crisis if the government forced

the euro issue try to bring in. it could be political suicide poland has fared much better than many of its e.u. partners in the global crisis several countries like greece ireland and portugal are on the brink of disaster partly due to a boring binge allowed by your membership and associated low interest rates being outside the euro zone meant could not join the party but now it does not have a hangover poland was meant to have the euro by next year the time when the country is co-hosting the twenty twelve european football championship but with the latest developments these plans may be shelved for another four years you rule say poland is obliged to adopt the euro once it meets the economic rules for joining but politicians are now much cooler on the idea with minister saying the eurozone needs to get its house in order first place very important for us. they need for.

traditional changes in the euro zone i mean these economic governance a few of them and also some crisis management terms we see some need for a term in the eurozone before. character date will be. set up the game has changed and the you will look everyone once wanted to join we know be the no one wants to accept. it will do for your soul. and now to some other top news from around the world this hour the leader of libya's rebel movement has dismissed his executive committee and response to the killing of the opposition military chief last month members of the national transitional council that's libya's highest rebel forty support the reshuffle well they saw the move was a response to be incompetent surrounded by generals protection and subsequent death meanwhile nato airstrikes continue in tripoli the ongoing civil war in libya

started over four months ago with nato forces joining in march. the hotel maid who accused former i.m.f. chief dominique strauss kahn of sexually assaulting her has filed a civil lawsuit against him enough he saw he was seeking unspecified damages claims she was left humiliated by the ordeal trials card was detained in new york back in may and was originally placed under house arrest he has pleaded not guilty to the charges and has since been released on a one million dollars bail. the united nations refugee agency has airlifted humanitarian aid into the war torn capital of somalia for the first time in five years it comes as the country battles with a devastating famine caused by the worst drought in sixty years but the first of three planned plagues delivered tons of emergency supplies including shelter materials the shipment was made possible after

a local as long as groups who earlier prevented a delivery is pulled out from mogadishu more than twenty nine thousand children under the age of five have died in the last ninety days in southern somalia alone. more news for you on our web site r.t. dot com along with latest updates videos and blogs and here's a taste of what you can find there right now the so-called hearts of this have carried out an attack against the syrian regime by hijacking the country's the plant's ministry website. and secret tapes of jackie onassis cherie who she felt was behind her husband's assassination have been on earth and will soon be released to the public. we'll have a recap of our top story shortly but first our business steve is here next.

hello and welcome to business here on r.c. now emerging markets are plunging to their lowest levels in months the talks a combination of the u.s. credit downgrade and the eurozone crisis this point so a brawl in financial markets russian stock exchanges were among the worst performers on monday with the r.c.s. news an eight percent and the my sex over a five percent let's not cross slice of our team our firth those are the headquarters. now what can you tell us what's happening with the russian markets this hour and today in general. well still a joy for the markets today as things following a disastrous day of trading yesterday we continue to see the stocks plunge currently ts is down about four percent. down about two and a half is much the same story year we think they could. be down at about three

percent at the moment and we're feeling the losses that here oh we're also seeing coming particular impact to russia is this ongoing economic situation in the u.s. and in europe it's continuing to weigh down on the oil prices and that's certainly having an effect. here amongst the oil and energy major yesterday we saw. the markets react to the decision day for the weekend as standard and poor's downgrade the u.s. the noise from its aaa rating and that we really saw a loss of confidence that the european central banks that scene yesterday to prop up its the in spite of president obama gave it just trying to calm the markets they thought america was a aaa country the investors don't seem to be buying that at the moment we've heard from a lot of the trade is that much of what we're seeing at the markets and then maybe it is sentiment driven. to really having an impact driving the market down that's what we're seeing at the moment. all right thank you let's take

a look at. the latest figures on the markets. now as sarah just said russia markets are heading towards heavy losses the r.t.s. is over four percent or my sex is losing almost two and a half percent there let's take a look at some individual share moves on to my sex and there she majors are the top losers gastro ever all snuffed out both deep in the red bull a producer will tell me is gold is also trading in the guts of territory this by gold prices surging to record highs. in european markets have reversed earlier gains and are heading south as well the footsies low a ball most three percent of all the dax is down almost two and a half. in asia stocks made a comeback after deep losses following the sell off on the wall street but they are still in their eyes and hank sign is actually going back to previous levels among the worst performers are banks and exploiters bank of china is there and over six

percent and sony's losing over four percent. gold has hit a new record high for the second day in a row precious metals are seen strong safe haven the admin markets are going to answer and the massive sell off across the board but it's a different picture with oil prices are down to the lowest level in more than eight months well prices have shot fifteen percent since the start of all this the way by fears that economic recovery in the u.s. has that a rough patch sedative poor's downgrade of us that alone stunned prices down by six percent on monday. well major b.p. is taking this russian shareholder and it's ventured seeing k v p two courts commerce on daily reports that b.p. has charged one of its russian partners for an over group of breaching the shareholder agreements now under the agreement shareholders in the us than klute be others in any ventures in russia and ukraine run i've always hold twelve and

a half percent of teams that you can shares is currently operating its energy assets in both countries alone for support for the over says it's ready to defend itself in courts even these russian shareholders and seeing the charge b.p. for not including them in the the phone to arctic exploration deal with ross laughed. and that's all the business news for now for more stores you can always check out our website r t dot com slash business in the meantime statesman for the headlines with.

because he used. to be able to. see.