international news and comment live from moscow this is r t with you twenty four hours a day just turned one pm here. sporadic violence has broken out in cities across the u.k. for a fourth night in a row more than half a dozen violent hotspots of flared up over the past few days buildings were set ablaze and shops looted hundreds of people have been arrested and one man's been confirmed dead nor emmett's is in the british capital with the latest for us. we saw a lot of trouble in birmingham last night which we also had seen on the previous night manchester and selfish i will say flat off in quite a serious way as states variety of sort of small towns in the surrounding area say this violence has now spread from the capital into really improbable small towns all over the country we're hearing reports that three people were killed in birmingham when they were run a foot by a car that was just running amok and the police are looking at investigated

launching murder inquiry the reason that it was under control last night we think is because an additional ten thousand police bringing the number of police to take it sixteen thousand were working on the streets of london last night they had permission to use rubber bullets if they had to a supply of rubber bullets was available to them we haven't heard any reports of us having the t.v. actually deployed we still fires in other parts of the country police being attacked with rocks and with petrol bombs so really this is this is something that is now nationwide parliament will come back and meet today coming back from that some a break to deal with the situation but i have to say that a lot of people were very disappointed in david cameron statement yesterday they were expecting him to come in here and say this is out of control we have to do something concrete about him what we're going to do is this this and this in fact he didn't say that parliament is coming back today they're going to going to hold

a debate which a lot of people said you know we don't need a debate right now what we need is actual action but the government and not proposing to introduce any emergency legislation to deal with the situation and i'm here this morning in tottenham where of course it all began it will spot up as a result of the shooting of a man called mob doug and what the building you can see being demolished behind me was set on fire by you says on the first night of these troubles and these communities in which the violence is taking place are hugely socially deprived there's nothing for young people to do around here i suppose. the youth worker in clapham yesterday he told me that people are on their summer holiday and would you rather sit in and watch a television or would you rather go out and listen shops and she said even she knows which one she choose you know people are out for excitement essentially and and and they're just looking for something to occupy themselves and that hole in their level of occupation is being exploited by other people who are who are coming in and older people older criminals who are coming in and inciting them to violence at least that's what she told me so really really large social problems at

a time when when the u.k. is spending an awful lot of money a broad base in libya and in afghanistan and that's the subject of my report. across england and wales more than eleven thousand police have already been laid off in austerity measures by two thousand and fifteen a total of thirty four thousand will go meanwhile london and other cities are taken over by thugs the police have not been anywhere where the police if the police were hit that would have been i think any surprising soudan little bit better i don't think they're doing everything they can i don't mean to be more violent i think they need to be more competent while police numbers are being cut the estimated cost of the war in afghanistan from two thousand and one to the end of last month was thirty billion dollars all taxpayer cash british forces are also heavily involved in libya despite the ministry of defense being required to lose thirty two thousand stars m.e.p.

gerard batten says money's being spent on foreign wars that should be spent home i think that the point has come where we have to call in the armed forces what we've seen now and. criminality across the whole of london what we should do in my view is pull our troops back from these pointless wars in afghanistan and iraq. as money spent on two wars in foreign lands parts of london birmingham liverpool and bristol i sensually get. partly because of high immigration but also because young people in these communities have no prospects they're bored and disaffected and as the cuts bite that's not going to improve a class youth worker told me four out of eight youth centers have closed since last year it's about investing in our communities we take away the money from the police in the way the money from the youth work. i mean i could never have imagined such

consequences to be only. a consequence of tuesday night still sixteen thousand police officers on the streets of london according to the metropolitan police the force is being stretched more than ever before and increasingly londoners are talking about taking matters into their own hands bringing with it to ation under control is just the beginning of folding this problem and it's not just about cleaning up it's about communities coming to terms with the fact that even at the current numbers if violence is widespread enough the police the neighborhood to retain control the feeling of insecurity in these communities is likely to remain for some time particularly if the police keep disappearing from the lower and r.t.e. london or correspondents are keeping a close eye on the events as they unfold in london and beyond bringing you the latest updates on twitter you can follow them and underscore com. where we

see the latest tweets. or correspondents. taking to the streets of the british capital in a mass cleanup operation people. brushes unite together to tidy up the mess or you can log on to underscore column for the latest from our correspondent there in the. prison because of course he is true hold an emergency meeting on the euro crisis amid the latest speculation the french economy is on the brink of a downgrade he's interrupting his summer holiday after criticism for staying away while turmoil grips financial markets it's this reluctance to put work first which some economists blame for getting europe into trouble in the beginning and daniel bushell has more. of the united states the french next on the credits a hit list to surrender their top rating france this according to a lot of people at least probably going to lose its replace status.

known for its loike thirty five working week economists say the real reason why france like e.u. neighbors is in trouble they just don't work hard enough. is coming from heaven europeans are somewhat. titled to the world without actually doing something for them so the e.u. dream is becoming a nightmare as citizens demand better services working less exposed just three states should stay in the euro germany the netherlands and belgium against share the same currency without having economic costs those nations now lead a growing resistance against fellow members position to the bailout centers on three issues people don't want to pay for others' mistakes they haven't been consulted and the money doesn't even seem to be helping italy this week became the

latest country to bring out the big bowl but economists think it needs to deal with its own problems i think it is uncompetitive italy is growing relatively slow italy and spain have announced spending cuts but it's feared nowhere near enough to balance the books the e.u. citizens of being tricked into picking up the tab say analysts italy and spain debt is being bought by the european central bank because all people can't grasp their fancy methods yet the e.c.b. funded by europe's taxpayers they don't want to pay for these lousy creek spanish people but when they use the e.c.b. . nobody understands it's going to fridge finance minister of france will blow ruins but it's a big. deal is fears group frauds is mixed with the looks of boys move boys the last remaining states may have already how do you know if the city.

could top the list of the world's strongest economies pushing the us off its centri old seat earlier than expected that's according to the international monetary fund which says the power shift in the financial arena place as soon as twenty sixteen. is in asia with. the latest international monetary fund predictions are showing that china's economy will actually grow bigger than the u.s. economy by twenty sixteen which will be the first time in more than a century that the united states economy will not be the biggest economy in the world initially we were seeing asian markets falling but people are saying that there really is only a short term impact and that in the long run that asian countries are actually better equipped at dealing with this financial crisis india china and japan have actually been growing since two thousand and eight while obviously that's not really happening in the west as significantly also you know foreign investors if

they start following the path of risk aversion and moving away from u.s. treasury bonds many people are saying that they could start investing more in asian markets like india and china so many people over here are actually seeing all of this as an opportunity for that shift to really happen and for more of the international community to get on board and move away from the dollar as the reserve currency into some sort of basket currency that could include a lot of the asian powerhouses like japan and china. well for more on the power transfer in the global economy we can cross live to martin who is associate director of financial advisory tice group limited joining us live in hong kong now what makes the i.m.f. think that china could leap frog the u.s. for years ahead of the initial predictions.

i don't know which original prediction proved predictions he was referring to now you mean china overtaking the united states as the number one economy actually there are different projections let's say the i.m.f. is saying that china will overtake the u.s. by two thousand and sixteen you have the road economic forum that's an independent think tank based in new york they actually said. that china might over the u.s. next year in many in many regards china has already overtaken clearly. the suppose it number one economy in the united states and that's when you're looking at the physical economy physical production there on the purchasing power adjusted basis because they're renminbi is undervalued and you need to reflect that when looking at economic sizes it does seem a bit ironic though doesn't it that china is the biggest foreign buyer of u.s. treasuries so you would wonder how a country with approximately seventy percent of reserves invested in dollar assets could really benefit from the u.s.

as current problems. well i didn't say they go you said that. but basically you know you have to put your money somewhere at the end of the day and what you need to understand is first of all what's the nature of the rest of that crisis projection by standard and poor's made in the year two thousand there were six years before now where they actually projected that all the major western governments were heading for junk status including france the u.s. germany and the u.k. and they started actually saying that the u.s. would lose the aaa rating staters in. two thousand and sixteen so not actually five years ahead of that original projection and there was a major rating agency saying this things might happen even before the financial crisis hit and now the balance sheets of this country if anything would have only gotten worse bitches why the u.s. has lost the aaa rating they needed to fund the bank bailouts now all of the

eurozone funding all of these countries bailouts and soon after the triple rating was to be lost you could see the downgrades projections that man made back then leading quite soon to junk status and what that means is when you have economies in asia economy is rather deficits and then out of control and you have this kind of projections on the line that means that these countries are usually going to print have a out of the problem so you the main risk and the new form of this financial crisis will probably be very high to hyperinflation in the western kansas and that means investment wise you need to look at other areas particularly gold precious metals is something we have been advising for the past ten years we're still optimistic on that and then asian emerging market economies look a lot better than the western countries and even equity is generally and those emerging market economies such as china they represent some form of assets that are more inflation proven and one saw in two thousand and eight commodities in equities

where the worst thing to be in order to mentally as an end result of the crisis this time around commodity is maybe the real safe haven will be in equities may actually be outperform bonds because equities are more inflation than balance about the end result of the crisis what are we looking at another global recession. looking at potential national bankruptcy of the western countries as projected by by standard and poor's quite a while ago so that's what we're looking at we're looking at a government bond prices that cries as a banking crisis. as a stock market crash now we're looking at the heart of the financial system which is the government bonds and then when people lose trust in those government bonds then they will also lose trust in their currencies and sell of their currencies and of course. rating agencies they cause people to lose trust as well then they just how credible are these ratings agencies and how responsible are they for this panic now. some people say it's only because of the credit rating agency where

first of all i don't like them at all they're not reliable remember that. in two thousand and eight they were rated aaa and then the next thing you know they were basically frozen you know and this appears to have been quite a bit of conflict of interest so i think actually the chinese rating agency dugong is a lot more reliable than the western ones but i have already downgraded the u.s. to a single a now with a negative outlook and there are few others a more reliable ones but certainly i don't think that it's only the rating agencies that are causing this mess in europe and the united states now in fact these ratings are valid but you're probably more realistically when you're looking at a total fiscal gap the whole shortfall of the united states finances that number is two hundred eleven trillion u.s. dollars you google lawrence of professor of economics at boston university in the united states he is writing for the federal reserve bank for the i.m.f. and so on look it up fiscal gap two hundred eleven trillion us dollars that's that's not too far from greece and therefore i mean the u.s.

even double a rating that's ridiculous they should be follow up to the rating agencies and exaggerating here even in europe they are should all be far lower rated far far lower than they are and there they have their own problems not just because of the rating agencies most in thanks for showing us your thoughts martin had a kid that's all we got time for associate director of tides group ltd talking to us live from hong kong thanks very much indeed. well of course we would like to hear your opinion you cannot go onto our website it is r.t. dot com to participate in our latest poll and we're asking if eastern economies will be able to use current financial turbans to their advantage and at present the most popular response is yes the east will rule the world closely followed by the view they'll become a strong as the west go online to r.t. dot com to contribute to be good to hear what you have to say. south korea's navy is open for towards north korea after shells from the north pole

close to their western seaboard relations between the two countries have been unstable since an artillery exchange in november last year claimed four lives let's talk more on this with professor dr ruediger frank from the university of vienna thanks so much for being with us here on r.t. now could we see a repeat of that young pyong island incident when the north fired shells killing four people claiming it was responding to provocation are we going to see an escalation in tension again well of course we all hope that this will not be the case that information is here to boost personal we don't know exactly what was going on it's a little bit surprising in the short term because there were hopeful signs of talks in indonesia between north and south korea. your little bit surprised to this is happening now on the other system as the situation is complicated and you might have to show some force to do population so you're still struggling to find out what that really means and how this could go where the two countries technically remain at war following the nine hundred fifty to fifty three korean war. people

wonder of course will ever be a peace agreement and if we do see tensions escalating and things getting worse what could be the consequences if those two really made matters worse between themselves. well of course eventually we all think that there's going to be a peace agreement because the current situation is obviously not sustainable the question is when and under which conditions and right now north korea are struggling to have a succession problem there however the mess the economy that is really dollar also worsened by the recent floodings and next year to have a big event coming up with the need to show some success to their people so that this is a time many things are possible and it's enormously hard to say how this will develop in the short run it could you explain a bit more about the succession problem or was he was seen kim jung il bringing his son more into the spotlight as his successor so what can we expect if any changes in the future if indeed his son does take power. so far it's not even clear

word of his son will really take power because he has not yet officially been announced as successor we expect this to take place next year even if you just heard still not clear what type of success that he will be will be a third grade neuter or will he be more like a head of a collective like to be seated in china and all those questions are not only aust by us in the worst but also by people in north korea it creates a lot of uncertainty and insecurity and for such a monolithic system as north korea such questions and such insecurity is really dangerous one issue of course is really isolating north korea is the potential or perceived nuclear ambitions of the country how do you read the situation there at the moment you think eleven give up these ambitions everybody suspecting them of having well i think it is of course going to be possible that north korea will eventually give up its nuclear ambitions but for the time being this is very

unlikely it's about the only thing that they have got to keep them involved with the international community about the only success that kim jong il can show to his people ever since he took paul or distribution is way to ten. to give up the all you bargaining chip to do actually so i decided to do the long run dogra good chances for resolution right now would be conducive to trying to prevent proliferation and look for a solution just briefly on that point then could it be argued that some countries actually stand to gain from this ongoing tension between the two koreas just briefly. there's a good chance those who do not want to see any traditional strategic because of the usual sort of benefit really interesting to hear what you have to say thanks so much your time professor dr really good friend chair of the east asian economy and society joining us live there from the university of vienna thank you thank you. russia's high court will reopen the case of a suspected peter far today who walked away free after his first trial as hundreds

of child abuse suspects escape justice in russia each year the authorities are being called to take a tougher stance already done to push curb reports on health mothers and activists are taking that is into their own parents. and mother in grief. i even thought of buying a pistol and shooting him myself i simply don't know how else to protect my family live on the first floor with curtains constantly drawn i go to work every day sick with fear for my daughter which are on the website. it was hard for the barrier to admit she trusted someone who harmed her daughter she brought the man into the house is a common law husband to live side by side with him for more than no news. so you know with that my brother told me he threw a stray cat on the roof and said he'd do the same to her if she ever confided in me about the things she was doing to her. so. when the dalia finally managed to get things to the court the jury acquitted the man who she says is now off to her

family hungry for adventure now that his experience is just one example of many in a recent controversial case a man suspected of raping a seven year old girl was released without charge. yes i called her underwear and she started crying i squeezed her neck and pressed her into the ground it only took a couple of minutes then i told her to go home and tell no one. only after an enraged crowd nearly killing the men did police launch a fully fledged investigation into the case and record that confession authorities also disciplined the original investigating officer will summarize this proposal the words that happened here is the mother was treated like a football she was kicked around from office to office a tragedy had happened to her shouldn't know what to do but no one wanted to even talk to her alone except her statement where. russian authorities have a number declared a fight against the sexual abuse of minors but results seem to have been meager

with estimates claiming thousands still fall victim in an attempt to put things right activists have started taking matters into their own hands. i'm underage but that's fine i like small boys and would love to kiss you and hug you and do many other things to you this video has been put together by a group of volunteers as they track people they believe are paedophiles and you go online pretending to be an underage boy or girl and they set up meetings with people who wouldn't need to preferring minors the idea is to film their faces and expose them on the web because they will but i want to show we are simply a group of people who decided to fight this evil in our own way because our families live in the city our children walk in these parks and we don't want them ever to meet those perverts it was like honest work which when they try to act within the law but often operate and it's edge volunteers tracking paedophiles online say most people will sign off when they learn the person or chatting to is

under age but they also say the out of one hundred contacts one is said to be looking for easy prey currently the maximum sentence for child sex offenses is twenty years in prison an amendment to the board is meant to introduce tougher penalties including life in prison and conditional chemical castration but until the changes are implemented and proven to be effective the activists say they'll continue with their teaching ninety campaign diary pushed over arching school. well in about ten minutes from now a special report about those who try to find the truth behind the deaths of their relatives before that marina up with some financial news was the business update that's next. hello and welcome to business here on ars you know we start this hour with the russian markets which are having a volatile day after

a positive open encouraged by the strong performance on wall street overnight they have been bouncing and in the out of negative territory it seems investors here have little faith in the measures announced by the chairman of the u.s. federal reserve to stabilize the situation bernanke. he didn't. give to the markets sure and so that they will be taking care of all the situation in the markets she just. told the usual stuff that they will be doing whatever it takes just to promote the stability and to prevail in their inflation for the rest of the week there will be usual its military again. just after this slump a lot of people will be choosing bare bones it seems to me that not all the redemptions in the markets maybe the investors will be putting off money from the table especially from the recent the. high b. the countries like russia. and let's take

a look at the equity markets here in russia which on usually are not tracking the more positive moves in europe and the u.s. the arts yes is just slightly off all my sex as down over half of the sentence. european markets are in the black helped by the rally on wall street the footsie is up one point three percent of all the dax is over two percent and the black german lender commerzbank and carmaker volkswagen are among the top performers there. in the oil prices are bouncing slightly however the international energy agency is now predicting the zoo's demand in twenty eleven and that's due to fears there will be another recession both light sweet and brands are adult. about three dollars this hour with just slightly higher they're more than three dollars fifty and let's have a look at the precious metals they are getting in the sour after seen mix traded in all the cheese day right now gold is at an almost one percent and silver is higher

it's currently trading at thirty eight dollars. and that's all we have time for this hour the headlines are next with bill.

for the full story we've got it from. the biggest issues get a human voice face to face with the news makers on.

live from the russian capital this is twenty four hours a day top stories massive all sturdy cuts in the government's budget policies are blamed for losing control of the streets after four nights of riots in the u.k. . president you can also cause he is cutting short his summer holiday to hold an emergency meeting on the euro crisis as fears grow france could be next in line to lose its top credit rating. activists in russia are taking matters into their own hands when it comes to catching paedophiles who escape justice kogan sex crimes laws of slammed for being in adequate thank you in the threats from the playground . that's all from me bill dodd and he said no he should be here in thirty minutes time with the latest news as it continues here on r.t. in the meantime we follow the journey of two colombians as they try to find the truth behind the deaths of their relatives in a mysterious military operation.