i. mean in london where the streets are full of police i'm told the streets are full of rioters i believe it is just about a hundred meters behind me a car is on fire the hair 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 judge that it was too dangerous to stay and it's not just here in hockney that has been volatile in brixton parts of florida on fire and we're hearing that the violence is also spread rights to forming that there are all sorts of people on the streets here but it is largely a big perpetrated by ethnic minorities that has to be said about rest 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 so i mean business take the parts of london that had soup are being affected and here's my

report from some of. 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 center here in east london in hackney where rioters 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 brixton riots as threw rocks at police and didn't tottenham where it all began the high street is a burned out shell 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 yet our source strange in america you know and 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 was 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 precious farhad levels on a ploy moment then are losing jobs their lives and services he's clubs have been closed there is never an excuse for violence by the community as a tune the pull. of the war isn't concerns and complaints about the death of well

the question 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 wolf them stay and lewisham which also still violence has become a victim of what prime minister david cameron is now calling failed multiculturalism this. bearers of so many groups. these groups. you know that. do not respect. nor a racist. 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 who. jobs

to go to and school's out for the summer london residents fear more unrest 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 seeing is with the cuts in government spending looming over the next few years the situation is very unlikely to get any better. or to crack the. well a team of correspondents is currently in london bringing you the most recent updates saw the situation our twitter account follow all the latest developments there that's twitter slash r t underscore com now armored vehicles have been a deployed onto the streets of ealing in west london looting continues across the country police have already arrested over three hundred people so far again you can

log on to our other score com for. well with 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. on the way to the studio 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 home as a result of these rights 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 tottenham 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 pure criminality and people are taking advantage of what they see is a lawless situation and overstretched police forces to do their worst and help themselves to free goods spreads very quickly this kind of thing we've seen it in fact 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 bad and 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 or you can share your opinion on the u.k. riots by participating in our latest poll again log on to our website our teeth are

hard to contribution to today's topic and rascal you what's the driving force behind the u.k. riots also far the most popular response is the dismay over the economy a quarter of you say it's a failure of multiculturalism and some of you think there have been also harder for profit and heavy. policing 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 the spy president obama's speech in which he declared america was still an economic powerhouse. has more from new york. market reaction to the historic downgrade of america's credit are sure to in 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 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 now the u.s. president barack obama of course tried 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. now asian markets have been hammered amid fears the u.s. is heading for a recession but india has reacted with often ism say gets ready to implement a fast track reforms to encourage domestic consumption and withstand the 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 us and 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 in that they're actually better equipped than many western countries especially your pm countries to handle what's going on in the united states we have india's finance minister

pranab mukherjee coming out and saying that this is only going to be really a short term impact analysts are saying that the bric countries will in the long term be last the fact that by what's happening in the united states but actually if investors move if they continue on this risk aversion path and move away from u.s. treasury bonds they might actually feel more comfortable investing in these emerging markets like china and india china has taken a much stronger stance on what's going on they've called the 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 masses by 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 fun way they might be able to benefit from all of this well for more perspective on the asian optimism we cross live to peter t.

treadway chief economist for the asia based rating agency who is in the region right now thanks very much 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 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 and. i would agree that india is probably the least vulnerable if we're talking about trying to brazil. are definitely more vulnerable. i think they're really each country they're really quite different they've been lumped together in this in this acronym brics but the there india there's grounds 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 gets put in the chinese banking system and is inflationary which i would say some inflation numbers came out which are a little higher and it looks like china will have to be tightening 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 us 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 recoveries have been strong without housing and housing is not there there's probably an excess of zero to two and a half million houses inventory 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 on 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 a prince it's own it bars in its own currency it can print and so the u.s. in a legal sense will never default. and i think that to some degree the the reaction of the markets to the standard import downgrade is really interesting because the treasuries 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 interesting you mentioned there defaulted i mean 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 default in a very broad economic sense not in this you know when or 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 u.s. bars and dollars japan bars in. japan in the u.s. for example aren't going to default in a legal sense trickier because the european central bank is not is not connected

with any one country and so the greeks can't just print money to pay their creditors so ago 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 certain amount 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 of the two thousand and

twelve election ok well thank you very much for insight they have mr peter t. tried a chief economist for an asia based rating agency talking to us from hong kong. thank you. well as the heroes are members joined forces to save their common economy one e.u. state is happy it isn't bailing out the single currency poland was supposed to join the euro zone next year but those plans are now on ice with warsaw eager to stay out of the crisis. reports. rioting in greece from the country's economic crisis were felt across the european union shaking international markets worldwide while parts of europe have been teetering on the edge of economic abyss bolen 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 out of trouble. if we were part of the eurozone then we would have been obliged to help countries like greece and portugal how can we help out someone else

without solving our own problems it's almost guaranteed that prices would go up to 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 scene or something very exclusive polls aspired to this they wanted their country to join now the name of the euro has been sought. by the troubles in greece and italy don't want to be dragged into this crisis if the government forced the euro issue tried to bring. 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 to poland could not join the party but now it does not

have the hangover poland was meant to have the euro. by next year at 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 e.u. rules say poland is obliged to adopt the euro once it meets the economic rules for joining but polish politicians are now much cooler on the idea with ministers saying the eurozone needs to get its house in order first place very important for us. the need for institutional changes. in the euro zone konami governance of euro zone. crisis management we see some need for action in the euro zone before. the target date will be. set up the game has changed and the euro club everyone once

wanted to join may now be the invitation no one wants to accept. 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 libya's highest rebel forty support the reshuffle well they saw the move was a response to be incompetent surrounding the general's 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 to accuse former i.m.f. chief dominique strauss kahn of sexually assaulting her has filed a civil lawsuit against him. he was seeking unspecified damages claims she was left humiliated by the ordeal straus 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 start in five years it comes as the country battles with a devastating famine caused by the worst drought in sixty years well the first of three planned claims delivered tons of emergency supplies including shelter materials the shipment was made possible after local islamism groups who earlier prevented a deliveries 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 website or to 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 to this have carried out an attack against the syrian regime by hijacking the country that's ministry

website. secret tapes of jackie onassis cherie who she felt was behind her husband's assassination have been on earth will soon be released to the public. we'll have a recap of our top story shortly but first business state news here next. hello and welcome to business here on ars now emerging markets are plunging to their lowest levels in months that's a combination of the u.s. credit downgrade and the eurozone debt crisis this points to a broad selloff in financial markets russian stock exchanges were among the worst

performers on monday with the r.c.s. losing eight percent and the my sex over a five percent well let's not cross live to r.t. sara furthur news on the headquarters of the r.t.s. stock exchange hi sarah now what can you tell us what's happening with their washing markets this hour and today in general. well still no joy for the markets today 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 that much the same story in years. and the down at about three percent at the moment and we're feeling the losses of that here we're also seeing having 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. we hear amongst the oil and energy major yesterday we saw

through the markets react to the decision day for the weekend as standard appears to downgrade the u.s. a note from its aaa rating and that we really saw a loss of confidence that the european central banks that in yesterday to prop up its the space that 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 at the moment is sentiment driven and this to really having an impact on driving the markets down that's what we're seeing at the moment. all right thank you and now let's take a look up. the latest figures of the markets. now as sarah just said russia markets are heading towards heavy losses the r.t.s. is that over four percent while my sex is losing almost two and a half percent there let's take a look at some individual share moves on the my sex and there jim majors are the top losers gastro enrolls left out both deep in the red bull producer the home is

gold is also trading in negative territory this spied gold prices surging to record highs. and european markets have reversed earlier danes and are heading south as well the footsies low of almost three percent while 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 ad and hank song is actually going back to previous levels among the worst performers are banks and exploiters back of china is down there were 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 safehaven divide amid markets robel and send a massive selloff across the board but it's a different picture with oil prices are down to the lowest level in more than eight months or oil prices have shot fifteen percent since the start of all this the way

by fears that economic recovery in the u.s. has hit a rough patch sedative poor's downgrade of us that alone sent prices down by six percent on monday. all major b.p. is taken it's russian shareholder and it's ventured seeing to b.p. two courts commerce sunday live reports that b.p. has charged one of its russian partners for nov a group of breaching the shareholder agreements now under the agreement shareholders must include the others in any ventures in russia and ukraine run i've always holds twelve and a half percent of who shares is currently operating its energy assets in both countries alone for its part of us says it's ready to defend itself in court he's russian shareholders in charge b.p. for not including them in the defunct arctic exploration deal with balls left. 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 stay tuned for the headlines with tessa.

he used to. be.

welcome back now here's a recap of the main stories we're covering today on all. britain is on a full scale alert the scenes of violence and destruction of flare beyond london after three days of clashes between rioters and police the prime minister has cut short his holiday to make it to hold emergency government talks on how to deal with the may have. wall street hits a new low since the two thousand and eight financial crisis despite a public message of defiance from president obama but as the u.s. credit downgrade triggers freefall and global markets india claims its economy could actually benefit from this situation. plus the eurozone tries to whether its economic storm pulled its shelving of plans to adopt the single currency highlights a broader european desire to stay out of the euro crisis. over the u.s. stock markets dropping heavily and with debt crisis spreading over a year.