weightings standard and poor's has downgraded the country by one notch deepening economic woes he agency also gave a gloomy forecast for the country's ability to get itself out of trouble with these premier silvio berlusconi's criticize the decision calling it out of touch with reality but i simply said it was prompted by italy's weak economic growth and fears the government will fail to deal with its huge debts despite parliament recently passing an austerity budget the downgrade now means it could be more expensive italy's have borrow money to pay its creditors meanwhile cash strapped greece has been given an ultimatum by e.u. and i.m.f. officials to enforce deep budget cuts if it wants to avoid going bankrupt early next month that solved the eurozone leaders choose to wait until october before ruling on whether to release the next eight billion bailout that's all more on this now with any be called he's live in brussels for us many thanks for being with us

here mr blue now what does this downgrade of italy's rating mean for the country and the whole eurozone. well it's a natural progression is it not grading bombs it doesn't matter whether you buy. tesco balms italian bonds american. they will all have a risk assessment on the risk assessment the market has decided today or rather last night is that italian bonds are graded today some of us might argue that that's quite a generous grading in its own right so you're not surprised by this. no better than i used to do this for a living unlike most politicians i used to be an investment manager specializing in fixed interest i'm a little bit surprised it's taken so long for italian bonds to be downgraded. and i have to say something else i'm very surprised that the u.k. guilds have been downgraded if everybody bothers to sit down and work out the not.

those. case forward has just passed new will stairs the measure is seen as the first step in the country's recovery say why do you think sound and poor's has made this decision and now is this highly significant. well yes it is significant and of the first time i mean i'm under financial economist by profession i've only been in politics for about seven years and i'm speaking to you from the european parliament what is the most frightening thing the most terrifying thing is almost nobody here really understands the sort of danger the global economy is now in it's extremely frightening we have a bankrupt country is we have a european central bank which is underwriting john sovereign debt with taxpayers' money and this is exactly the sort of problems we had in two thousand and eight with lehmann brothers we're getting exactly the same route the difference is that they're not junk mortgage bonds from the united states they are junk sovereign bonds and i made the point to mr tracy only

a few weeks ago that he's following exactly the same as we did in two thousand and eight and i see no reason for the outcome to be any different so do you think this is a contagion that could spread further across year at how can it not how could it not . portugal's broke greece is broken is broke spain be broke. the french are talking a good story but if you look at the numbers the french are in no better position you look at the numbers you'll see that the french three bailouts that they've agreed is round about the equivalent to two thirds of entire year's french income tax this is going wrong as it was always bound to do it's a failed project it's a failed currency project fear is appalling across the world gold isn't rising people think gold is rising. fit cohen says a falling and i tell you something else if i may this is been a political project from the beginning and i would have the people responsible incarcerated in jail at this very moment ok yeah strong. talk about

politics that's and p. has criticized by the government saying it might not be able to handle the current crisis is this a political decision and not purely an economic one do you think this is all about politics the euro has been about politics since the very beginning the e.c.b. is a virtual bank was no lender of last resort except the taxpayer and the taxpayer is already rebelling there rioting in greece i gather today that they're rioting in rome they simply can't go warm this project has no political democratic mandate it is doomed to end in tears it's just a question of exactly when before christmas or after christmas break a pretty prospect scott free believe any p.f. member of the united kingdom independence party many thanks those thoughts. now italy's credit rating downgrade is just another blow for the already weak euro zone

as we were hearing let's cross lives out of business desk to find out how the financial world reacting to the latest news delia can you give us the latest market reaction to what's happening in. the european markets are trading in their blood like on tuesday and this hour german dunces more than two percent up meanwhile the london food c. is more than one point two percent up as well so that's despite standard don't cause downgrade of italy's credit rating that could cause a drop in demand for their goods obviously but some analysts are saying that it's unlikely to have much impact on the you are also the positive sentiment is supported by by this speculation greece could receive the next a transfer from international creditors plus investors are sitting on lots of cash as well and although most of them are still very cautious some are directing their cash into new york but the overall sentiment is negative as they say italy is this third european europe's largest economy and this downgrade will have

a negative impact on economy and of course we'll get a better idea of direction with germany economic data which is out later today and of course the fed interest rate meeting which ends to morrow so back to you for the moment good to have those markets on the block at the moment though of course we'll get more from about twenty minutes time in the hour full business bulletin but for now thanks. to the palestinian leaders rejected an unofficial israeli invitation to restart peace talks in new york where world leaders have gathered for an annual u.n. meeting the call for negotiations was one of the latest attempts by his head of you to hold his ambitions to win u.n. recognition and as a chicken there are reports now on the counter efforts russians taking to see the palestinian plan go through. russian foreign minister sergei lavrov held an urgent meeting with the u.s. secretary of state hillary clinton now members of the delegation are telling us that even though this is

a closed door meeting the assumption is that lavrov and clinton were negotiating the future of talks on the israeli palestinian relationships the palestinian bid for statehood at the united nations security council is really stealing the show this year we know that palestinian leader mahmoud abbas is expected to present palestine's bid for recognize statehood to the u.n. secretary general ban ki moon in the next days to come and this is something that we know israel and the united states are really not favoring they have been calling for the whole to negotiations between israel and palestine to kick start again on a bilateral level this is something that palestine is already seems to be tired of so it is taking these specific actions to try to get its state recognized within the within the international community so an extremely busy week lies ahead at the united nations of course often the highlights of the week become speeches of world leaders addressing the general assembly hall and this year is promising to be no

exception for a look back at some of the more historic moments that have taken place throughout the last two years let's now go to our report if only these walls could talk. tension a pumped up wow factor and center stage drama would be their story every year for about ten days the united nations becomes a mecca for world leaders from the confrontational to the surprising to the out right the u.n.g.a. pilgrimage never fails to impress what happens right here becomes a mirror image of what i mean gauging game politics can be over a hundred in one thousand members make up the general assembly to get attention leaders have to get creative if you want a lot of the tension you could try to like streak the united nations nobody nobody has come in but naked. with a goat on their back i mean so far none of this has happened but i wouldn't rule it out in the future that's one of few tricks that have not been performed here yet i think the one that i remember the most i mean there was cut off he with who i guess

will never be back here again so it becomes memorable becomes it's a collector's item now his long speech and tearing up tearing up the u.n. charter and falling asleep so we're just like in your corner you're out of a corner to hide but you are my current should not be discouraged the constitution comes on the record holder for speech length and indian envoy in the fifty's nobody remembers what he said but they remember that he went on for eight and a half hours exhausted the diplomat collapsed at the podium only to return and carry on the un is really owned it's owned by its member states so it's not really anyone's role to you know be kanye west and grabs you know you've got to when they're up there they can go as long as they want they can also see whatever they want and accusations often go flying towards the u.s. yes so many of them came here. thank you. to me right here and it's made as a sapphire still today and from the u.s.

the greatest obstacle to this future is that your rulers have chosen to deny you liberty and the media obsessed with creating legends out of these performances from she could clad carla bruni becoming a headliner for the simple act of showing up to sob yet leader nikita khrushchev allegedly banging his shoe against the podium a grave for colonial slavery it should be buried deep in the better half a century later the story is rumored to be a favorite among tourists visiting the u.n. the soviet leader so on says the episode is a legend as the shoe banging was never captured on video was sure the power over the media over the. whole. form older that you can believe in many thing that never to showcase word as deed officials pull out so-called facts sparring accusations backed up by wooden

seal the need to invade iraq by nonexistent weapons of mass destruction but we're giving you our faction conclusions based on solid intelligence the key players come and go. again it was you have the firm from one side a mother so and just drank two so who are to your team and opens a deal with the fierceness clearly not for into this international political stage drama year after year is the number one guest to r.s.v.p. and r.t. new york and the west bank israeli settlers police and defense forces are gearing up to bear the consequences of the palestinian aspirations for softer n.t. as they expect mass marches in support of the new the land mines are being planted on long side the border or his policy is watching the preparations in israel. there's a growing sense of isolation among israelis for months they simply named it. and

elsa timber is here and with it the ease and uncertainty about what to do when palestinians ask the united nations to recognize the state i think the responsible thing to do from the idea of sport interview is to prepare for any eventuality prepare for the worst case scenario and hope it doesn't happen the worst case scenario is violence there's even talk of a third intifada the israeli army has been preparing for months beefing up security on settlements and planting new land mines along israel's northern borders but many complain these measures go too far now they are going to mines. maybe it's more come for. the last thing tel aviv once is a repeat of the chaos at its borders three months ago when hundreds of demonstrators stormed the israeli syrian border in a show of sympathy for the palestinians twenty protesters were killed by israeli fire the area is littered with mines and add

a danger to those clamoring the mines are not necessarily very to deal with people who have peaceful intentions but mines are a legitimate form of defense many countries have mines on their borders for that reason in one of its internal magazines the israeli army said it was planting new mines in the area as a deterrent against any future demonstrations that might take place cards are expected to surge forward when palestinians put forward their case at the united nations the army refused of request for an interview the most they give us was an e-mail response in which they said they were performing ongoing situation assessments and doing everything required in order to ensure that the daily routine and security on israel's northern borders was maintained but it wasn't security there tof the right half of salad bars body he lost a leg a hand and an eye when he picked up a mine when he was thirteen years old. or. what happened with you

and sometimes. maybe it was. if he did because. we continue the life he have. he got little sympathy from the israeli government that blamed him for being in an area infamous for mines but instead of hate and anger sally wants his misfortune to be a warning to others and is now dreading what will happen if thousands of people surged towards the borders later this week i feel very very very sad because i know in or. make just just. give flowers or good life for the people it's nine months since the arab spring began and as palestinians lobby the united nations the last of the region's old certainties are being swept away but fears in the region are growing

that what happens in new york will sit the stage for the next middle east crisis. r t. we've got more on the continuing turmoil in the arab world in just a few minutes the fight is valid finished on the down remaining supporters in libya while the west anticipates cashing in on new business opportunities in the country . the european human rights courts ruled that russia acted within the law when it launched attacks ford probe the now defunct oil giant you cos the verdict states that there are no indications the case was politically motivated but judges also found that between two thousand and two thousand and one moscow rushed the proceedings leaving the company with little time to prepare its defense the freezing of its assets left you cost with no ability to operate causing its eventual collapse due course which was once headed by jail tycoon mikhail khodorkovsky to. did almost one hundred billion dollars in damages but the court says it needs more evidence from both parties before ruling on that plane.

we can breathe for some other world news this hour now and turkish officials fifteen people have been injured in an explosion in the center of the capital ankara eyewitnesses claim to have seen a burning canister thrown upon vehicles from a nearby building however if their bomb had been planted in one of the cars one person is reportedly been detained in connection with the incident the area's been sealed off with an investigation underway the residential district also houses municipal offices and the presidential palace techies considered to have a high terror threat kurdish separatists recently intensified their attacks killing over forty turks in the past few months. activists in yemen say security forces have killed more than fifty people in the past two days during clashes with anti-government protesters across the country in the capital sanaa snipers a fire from rooftop shooting among others protester in those filming the violence

the crackdown follows reports that the country's vice president would sign an initiative arranging the transfer of power something protesters have been calling for for months. the week of heavy rain in southwestern china is cool severe flooding and landslides that of claimed at least fifty seven lives with dozens still missing floodwaters have reached new highs and millions have been forced to evacuate the drenching downpours turned streets into muddy rivers that swept away cause toppled homes and blocked roads forecasters say more bad weather is expected in the coming days in what's already the worst rainfall in recorded history. the turkish president is in berlin discussing even bishop any issues faced by some three million turks living in germany today the multiculturalism a debate comes at a time of the country's marking a fifty years since inviting in a wave of turkish workers to help boost efforts to build the balun wall looks at

the changing demographics of one of the world's most ethnically diverse countries. it's the end of school for thirteen year old malik to college in frankfurt germany his grandparents escaped from morocco in the one nine hundred seventy s. joining a largely white german society his mother niger grew up here and she's seen things change and we have a time where everything was perfect you know we don't feel like that we had a mic when i met ben there i'd like since my son was born as a after five hears then i feel like something is happening in the politics not just problems are at least partly down to a massive demographic change statistics show that the overall population of young people in germany has fallen by two million in the past decade of so you cannot make a situation also of population. increase so. not

to have as much children as we need increasingly wealthy germans see raising children whilst holding down jobs as a waste of time and money the only parts of the population that are growing are immigrant communities the changes in culture and ethnicity are leaving some germans feeling threatened but the islamic leaders forty years law make model of society it is very different from the democratic german money we find that islam prevents people from properly integrating into germany for instance if we see ten year old girls being sent to school wearing headscarves we can already predict there are developments. too late say immigrant communities arguing about immigration now is outdated and may even border on racism here we're still have a discussion about the his that being now we are like the middle age. and with

a serious labor shortage looming experts say germany needs all the workers it can get to have solutions. or demographic problems we need people so y'all need to. make people these teenagers from poor immigrant backgrounds are being welcomed into a new educational program great start which helps them with money and support towards their final school exams. we were poorer than others my family was discriminated against it was a very difficult time for me now without warning so much about money i can focus on my studies and graduate from school. the demographic future of germany is difficult to predict but if programs like this work they could help germany accept these students as part of its multi ethnic feature the changes in germany's population the debate surrounding them will take many years to play out but life goes on and

by the time these teenagers have children of their own it seems likely the face of society here could look rather different tom watson r.t. minds. more stories in videos waiting view on our website r.t. dot com here's what's online right now lethal cocktail played its air and bad weather investigators find traces of alcohol and one of the crew members of the plane that crashed in northwestern russia in gene. pool in the us a study finds a car crash deaths of fall but drug abuse deaths. find out what's behind the switch on r.c. dot com. to libya now where i'm to gadhafi forces claim they'll cross remaining resistance from the colonel supporters within the next few days but their progress is taking three perceived cities is slowing with ground often switching hands several times throughout the day loyalist forces are dug in and i said to be

using civilians as human shields we were libya's new ruling body the national transitional council is having trouble. forming a new cabinet due to disagreements among its members could happen himself been on the run for a month now his whereabouts unknown nato still engaged in the standoff citing the need to protect civilians but some analysts believe the west is ability after its own interests. it's very hard to believe that they are getting involved militarily out of the bodies of their hearts but of course as we've seen lately there was a paris conference held were very aware business interests were discussed and the whole purpose of that meeting was of course to make the military adventure worthwhile and to discuss business opportunities involving the rebuilding rebuilding of libya with energy companies telecom firms and construction companies from britain and france in a very good position to get very lucrative business deals done for libya the

national transitional council has made it clear that it wants to reward the countries who took the lead role in backing of the rebellion but we also have seen resistance from jihadists movements who have called for the members of the national transitional council to resign and who are making it abundantly clear that they are determined not to lead the west plunder the country's assets now in just a few minutes. the roads among the financial world's big players to get south business update with you here. thank you alex hello and welcome to business archie great to have you with the russian ruble continues to retreat again is the main currencies it has been at the lowest level against the u.s. dollar in ten months the central bank says the value of a free floating ruble will be decided by the market. knew very deeply

appreciate it actually very seriously so you have no god gets in the church radio show you not only for this applaud them out of the most suppose you've. said you don't ever show you should know believe it so you know that even though it's a good habit they could put you to school board election. let's have a look at that markets right now while prices bounced back from losses in the previous sessions however escalating fears over the eurozone debt crisis continue to stoke concerns of the demand light sweet is currently trading at around eighty six dollars a barrel while brant is at one hundred ten dollars per barrel. european markets are trading on a positive note the sentiment is supported by speculation greece could receive the next eight trials from international creditors. and the russian markets are also up the r.c.s. is gaining point five percent while the my six is up one point eight percent this hour. and let's now have a look at the index moves on to my sixth as burbank is on the rise on speculation

it might increase the amount of show has to be converted into depository receipts they have traced it to sectors also in the positive territory the on russia's continuing gains up to its reported and almost sixty percent increase in that profit for the first top of the dixie's among the big gainers in retail sector the company's first home profit hans jumped more than four forward significantly expanded its network. russian equities may be seeing a bit of profit taking this week but michael stein at creech here believes the high oil prices will continue to make commodity stocks look promising. given the very high level of uncertainty out there a word by using our clients to take advantage of the fact that the world price remains such stubbornly high and also noting that the ruble has weakened a lot we like the world stocks which benefit from ohio personal one thing and also the impact of the favorable impact of the weaker ruble another stock that merits attention right now given investors desire to shelter themselves from. the

commodity price volatility is a company called o g t four this is a power generation company which is trading at attractive valuations it has low cash flow volatility and yesterday the company released a very favorable first tough financial results showing a five percentage point improvement in the profitability of the dollar bill and also very strong topline growth. germany's siemens is quite quitting its nuclear joint venture with the russian energy corporation they enter nearing giant says it's not going to focus on alternative energy two years ago the company's agreed to jointly build new generation nuclear reactors is expected to construct four hundred plants by two thousand to thirty requiring a total investment of more than one trillion euros but following the disaster that siemens decided to phase out its nuclear power business the collapse of the tie up could put on hold on terms of additional stock stand it's international week which . in tehran have agreed to join to develop the world's largest untouched zinc lead to pulls it in central iran and it will be run by russia's i'll stick in

a low key and the biggest private bank of iran b. if i analysts estimate the project to be worth up to one point two billion dollars however its implementation could be hunted as the iranian buying gets subject to un sanctions. russia's young six has expanded it with a turkish search engine it's opened a web portal in turkish and an office in istanbul this is the first under the normal russian speaking market the company is in full some top competition as google brady has about children openly of the search market in tech. it's all the business news but now the most story's going always going to a website called slash business.

loulou. lead.

as. this is our team rowing on the right. launches the economy takes a hit i think it's credit rating goes down sparking fears of an even deeper financial crisis it's the latest of six years in conferences taking credit to hold this year. israel calls for peace talks with the palestinians but plans minds on that border president abbas has rejected any minister not use offer ahead of the palestinian bid for a seat to compliment my. day. and multiculturalism under the microscope the turkish president visits balin trying to break down a wall of issues facing immigrants in germany to convert some german say baker threatened by the ever growing wave of immigration.