and the japan rebound that will happen due to reconstruction will also help in asia. but i think if we come to the global outlook, the problems in the u.s. and europe, clearly this is weighing very heavily on markets, and the fear that we're seeing right now i think will continue for some time and will continue to support yen, swiss franc, and gold. i don't think we'll get an immediate reallocation. we have seen reaction from the u.s. and europe. i think the e.c.b. has already been quite successful overnight in bringing down the bond yields in spain and italy. so this is exactly the kind of intervention that was needed to try to stabilize the risk in europe. i think now we need to see if the fed also shifts its position somewhat on whether we need a qe3 down the road to help the outlook in the u.s. as well. >> on the flip side, we're seeing price continuing to fall. oil at levels not seen since november. crude at $79. could this basically pressure some of the banks to hold off on the interest rates raising policy and maybe even cut interest rates to boost their respec

in south asia and southeast asia, the balkans, turkey, sufism has a large presence not africa. i would say with perhaps the single exception of the persian gulf region where i've not found it saudi arabia, uae, et cetera, there is a strong presence. and a lot of the practices such as these shrines believing in these saints so one would think and hope that with the saints their beliefs would also come in the ideal notion of islam, too, for many muslims it does and many it doesn't. formally very few muslims define themselves as muslims almost groovy, hippiest type culture. yes. hello. >> i'm an american muslim. i was born in monroe, wisconsin, and i became in 1995 and i can't help be encouraged by people as yourself and what you're trying to do because being a muslim for 16 years, prior to september 11 i've always had a concern that something might happen because of some of the elements in the community as many communities such as the kkk were christians and the tigers in southeast asia so that something might happen that would change the view of some or many americans and i'm ve

asia pacific markets thank you. both capitol hill as cash may be scarce but they'll be no dipping into what is the world's biggest military budget defense secretary leon panetta gave lawmakers a firm has softened said cuts should come from medicare and social services instead former pentagon official lawrence korb says america's defense bad mouth is in a drastic need of better management. well a secretary to france panetta is trying to basically keep the spirits up of the organization he took over but as former director of o.m.b. he knows that the defense budget now even if you control for inflation is higher than at any time since the end of world war two but i think the key thing to keep in mind is that when they talk about cuts up until now they've talked about reducing the projected level of increases not cutting when you and i talk about cutting means we're going to get less power that we got last week no in the defense department it means we won't get as much as we thought well we're still going to get more yo

there are the numbers, some of the numbers here in asia, and asia went the other way, asia started theon with some very heavy losses as well. many of the main indices were able to make up some ground at the close. let's look at these numbers. here are some of the worst performers, the kospi in seoul, down by about 9% earlier today, closing up by 3.5%. the hang seng down by 5.6%, that has just closed and that's a big fall because at one stage it had lost around about 7%, went back to losing 3%, and obviously as you see following what's going on in europe, back down sharp. the nikkei 5% down, clawed its way back, still in the red though. let's look at the other big markets around the region, the main index in australia finishing actually would you believe in the red, up by 1. %. i wonder how long those gains will last with those trends in london. shanghai investors not too ov overwhelmed by the inflation numbers and mum buy, sensex trading down by 1.7%. i think the story here or the indicator here is hong kong just flipping again back sharply negative, following what's going on in europe

what's going on in asia there's no question in my mind in asia including china but other parts of asia as well is very much on the rise and they seem to be much more sure footed and they get things done over there compared to what's going on in this country. to get the latest forecast for the global economy that's cost live not adonal to bush from c.l.s.a. asia pacific markets and a pound of brokers on the investment group joining us from bangkok thanks very much for being on the program nowadays and markets were reacting as usual reacting to wall street movement they plummeted very sharply now what does this mean for the asian economy it really is reminiscent of the lead up to the two thousand and four after crisis isn't it. yes it's true it's very similar and the concern that we have now is that we have to see growth rates in asia come down a bit further from where we had been expecting them and if you remember in the global financial crisis previously a lot of banks in asia got very cautious so they themselves decided to limit their lending and that's likely what we will face again

how big a problem are the declining birth rates across great -- across asia. -- across asia?the problem across asia is the industry is in northeast asia, like in japan, we already have low birthrates in korea, china, hong kong, macau, even in mongolia. there is a repressive level already. how much concern? there is very much concerned about the low birth rates because of the aging population. we also have problems with the other young people, alison people, but -- adolescent people, the path they choose because of the labor. >> what about thailand? kindhey also have the same of problem? >> yes, in the near future we will be approaching the taiwanese case. right now, the birthrate is 1.4 in thailand. >> in the long term, professor, what kinds of problems are posed for policymakers, and what should government do right now to be able to address this declining birth rate issue? >> in terms of the labor supply, we will focus more on the quality rather than quantity. looking at the economic structure to be less labor- intensive, invest in human capital. and in the future, in 2015,

live from moscow stocks in europe have plummeted sharply after a similar falls in asia investors are growing up more anxious about the european financial situation and its leaders ability to resolve the debt crisis. sure of course this all comes amid new fears that the world economy may be on the verge of another recession. you're picking up where the us left off on thursday which is the there's a big cocktail of ingredients poisoning investors at the moment so not only is america releasing toxic figures on unemployment housing and so on yesterday was the worst day for the footsie one of the world's biggest stock markets over in london in two and a half years on fears that the world will slump into recession taught by morgan stanley has slashed its forecast for growth for the world because to me a worrying sign there and asia is not being left out of this asian markets are also now there's a saying when the u.s. . sneezes the rest of the mall catches a cold and that's particularly true of asia which is export driven countries like china and india rely on the west to boy its products

well as you know india is the third largest economy in asia and asia will actually hold three trillion dollars in the united states china being the number one u.s. debt holder in japan being number two so they have a huge interest in what's going on over in the united states actually gone analyst third thing to this point in some ways benefit the asian economy because of the risk aversion that so if investors actually look away from u.s. treasury bonds they might actually want to invest more in certain factories in china but obviously we can't predict exactly what's going to happen yet but it's clearly creating a domino effect across the world and asia's going to continue to watch to see what happens. from new delhi thanks for that update on the markets. but i pre-assigned asian nations hold the lion's share of american government and they could turn their backs on its bones as the chairman of the hong kong based credit ratings agency has been telling our city. probably. country nature will try to help us right away so that means that they're going to my boys are the country. my versio

in peril the fair slide continues in europe's opening markets following a similar grim trading in asia and on wall street the sell off is being spurred by a group economic forecast for the u.s. as well as the deepening euro zone debt crisis. president medvedev says he's urging the assyrian leader to talk to the opposition and start reforms or expect a sad future that's as protesters reject the offer of changes from president assad has wrapped up its hearts on there. if you don't like the little ziplock of the place you live for in some way you do appreciate it was hard line muslims in britain are trying to run down under the control of sharia law critics during the campaign as a political tool designed to split the nation. and we take you to russia's far east where integration with neighboring china goes far beyond any borders that's in a close up of this hour. told no one here in the russian capital you're watching are to you thanks for joining us now on to our top story global investors remain spooked at this hour as europe stock exchanges open to another sales fleury echoing a simil

europe stock markets have plummeted sharply in early trading on friday following a selling binge in asia fresh recession warnings and the a piling debt in the euro zone has seen a red across the board while the stall in china's flying growth has contributed to trader concerns our asia correspondent priya shrewder has more. initially when we were talking about the s. and p. downgrade of the u.s. economy there was the markets here in asia were falling and initial reaction to that news but most economists and politicians here really thought that that was only an immediate reaction and that in the long term asian markets would rally however this is quite a surprise quite a shock to a lot of people here is an markets did fall friday today tokyo seoul and sydney all picked up on the mountings idea of what's happening over in the united states and in european countries regarding the euro zone a lot of this has to do with the news that came from work at the morgan stanley bank that the united states in the euro zone or that europe could be facing a double dip recession and we're seeing that anxi

we have insufficient knowledge of asia. we don't quite understand the economic implications of the rise of asia and what that means in terms of our own competitiveness. when you look into the 21st century, it's going to be a much different century because it will be a century based on economic competition. the players pretty much all reside in the asia east pacific reason aside from the united states. the implications are fairly profound. if you visited china 10 years ago versus today, the differences are absolutely phenomenal. i'm one who believes that in order to truly understand the economic implications of the rise of asia and the way in which society has so transformed itself, you have to have visited on a very regular basis because the rise of asia and specifically the rise of china, it's all happened so quickly and the change of society, the development of society, the rise of their economy is so significant, so consequential with profound implications for our own country, i don't know that we have focused enough att

thank you very much, ramy inocencio, our asia business analyst. >> we'll stay with asia after the breakile many countries are struggling to spur growth, china is struggling to contain it and also struggling to control inflation there. one product is driving prices way up. why china has a problem with pork. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. >>> welcome back. you're watching "world business today." >>> the markets are hoping for more tightening in china. chinese food prices up more than 14% over a year ago, partly driven by a 57% jump in the price of pork. pork prices are

dropped stock and apparel europe's shares a slide in early trading mirroring asia and wall street retreat amid a gloomy u.s. outlook and deepening at eurozone debt. president medvedev urges a serious leader to start talks on reforms with the opposition or expect a sad future protestors reject the offer of change from president assad whose tough attacks on their stronghold also this hour. is a lot the little's of the place you live find somewhere where you do appreciate the littles blind muslims in britain make efforts to have been sent by trying to put london under strict sharia law. and enter the dragon rushes of more regions arms are open to the neighborhood china in close up we hear how they're going far beyond the pale. just after three pm on friday here in moscow you with our roll receive shine it's been a rocky few hours on the global stock markets with europe's exchanges dipping again echoing similar drops in asia and america stock holders fear the worst after the prospect was raised of a sharp slowdown in the u.s. economy as well as the eurozone debt weighing on their minds and th

they are thankfully now into the weekend in asia. as for europe, it's gathering down but momentum, off 100 points now. down more than 2%. in paris, down 2% and in germany on the dax index, down right around 3%. and let's take a look at the commodities for you with the concerns of a global slowdown and lack of demand for oil. check out oil now. right around $80 a barrel. down 2% on the day and meanwhile, money continuing to funnel into gold. up $1865 per ounce. fox news contributor katie sergeant joining us by phone from singapore with more on the trading day. as i said, thankfully asia heading into the weekend now to lick its wounds. >> that's exactly right, ashley. it was a very negative day for asia and red numbers all around following bad news on u.s. jobs and manufacturing and thursday's wall street selloff. in japan, the nikkei gave up 2 1/2% and economic news wasn't bad enough, the market was also literally rattled by an earthquake today. it struck northeastern japan late in the trading session. and that added to the selling al

rocky few hours on the global stock markets with europe's exchanges dipping again echoing similar asia and america stock holders fear the worst after the prospect was raised of a sharp slowdown in the u.s. economy as well as the eurozone. debt weighing on their minds and there's no friday feeling for spain or italy both of seeing their boring costs shoot up again there will be speaking to our teaser daniel bushell in the near future to get the latest on this developing situation well our market giri has a hong kong based a business consultant who says that america and europe's financial quandary is forcing investors to look for safe havens in developing markets such as china we've seen you know china is looking at about nine percent growth this year india eight percent and don't forget indonesia at about six point five percent. that's about forty five percent of the world's population these are populations that have been has been growing. economic wealth has been growing so there are now significant spenders on retail themselves we've seen tremendous growth in the property markets part

in asia stocks are in the red investors are concerned about the slowdown in u.s. manufacturing japanese exporters away by strong yen with tender got over three percent and banking stocks are among the worst performers in the hong kong industrial and commercial bank of china three percent and it reports of the nation's share placement. now here in moscow the markets will start trading in two are signed on monday both the r.t.s. and the my six rows over a percent energy stocks among the main gate. hey did this call may have been avoided in the u.s. but mark rubenstein and i have seen measurable believes investors will remain focused on the other side of the atlantic for key indicators of the health of the world economy. a lot of this was going on sidelines taken the second june the second part of the week. anticipating the u.s. labor market rate on friday morning and this insistence that it's been coming out as sage is being painted the mixed picture and that's why i think a lot of into investors are going to be trying to stay in the sidelines until at least this nu

we have insufficient knowledge of asia. we don't quite understand the economic implications of the rise of asia and what that means in terms of our own competitiveness. when you look into the 21st century, it's going to be a much different century because it will be a century based on economic competition. the players pretty much all reside in the asia east pacific reason aside from the united states. the implications are fairly profound. if you visited china 10 years ago versus today, the differences are absolutely phenomenal. i'm one who believes that in order to truly understand the economic implications of the rise of asia and the way in which society has so transformed itself, you have to have visited on a very regular basis because the rise of asia and specifically the rise of china, it's all happened so quickly and the change of society, the development of society, the rise of their economy is so significant, so consequential with profound implications for our own country, i don't know that we have focused enough att

now we're taking a look at the storm system in east asia. and here are the clouds. and this will be typhoon muifa maintaining its strength. it's still a very strong typhoon packing winds of well over 160 kilometers per hour. it is currently heading northward but it is looking like it's going to be veering towards the west over the next couple of days. and it will start impacting the okinawa islands. first, stormy conditions will start up here. the high waves, you will start feeling them as early as today in towards even wednesday, thursday, friday, whether eathe also going to start turning stormy. watch out for those strongs winds and winds. muifa continues to head toward the west, likely aiming for the coast of china. could be getting even close to shanghai. we'll keep a close eye. a little too early to tell. keil keep an eye on its progress. >> ahead of that -- already deal with plenty of rain in the area, eastern china into the korean peninsula. this starborn frontal system. rainfall amounts looking to add up a little bit more in parts of central china. so you wa

this hour as europe stock exchanges open to another sales flurry echoing similar worrying dips at asia and america all stockholders fear the worst after the prospect was raised of a sharp slowdown in the u.s. economy as well as the euro zone stuff weighing on their minds more than an hour or so are trading in europe is about to start and we have donald bushell in brussels who i spoke with earlier who's following developments. the trouble is the news for the euro is going from bad to worse so the top banks have revealed their hits from the crisis and this morning all the years banks of the last billion dollars in calls and through. greek loans the e.u. bailout of greece requires investors to take a loss on what they hold and what of all lloyds are built an even bigger loss yesterday on morrish last. ok well just briefly why is the panic there was specially since america finally decided on dealing with its debts because greece reuland the scary design of what we really frightened italy's crisis talks with the european union biggest problem of the euro zone as number three economy or even

moscow europe stock markets have plummeted shop in early trading on friday following a selling binge in asia fresh recession warnings and the piling debt in the euro zone has seen red across the board while european banks and companies are rapidly losing in price now e.u. correspondent dan a bushel is across the latest. you're picking up where the us left off on thursday which is the there's a deadly cocktail of ingredients poisoning investors at the moment not only is america releasing toxic figures on employment housing and so on yesterday was the worst day for the footsie one of the world's biggest stock markets over in london in two and a half years on fears that the world will slump into recession taught by morgan stanley has slashed its for cost for growth for the world economy a worrying saw in there and asia is not being left out of this asian markets are also now there's a saying when the us when the us sneezes the rest of the world catches a cold and that's particularly true of asia which is export driven countries like china and india rely on the west to boy its product its comput

is there any feeling where you are in asia? though we could see a third round.ems as though the fed chairman, ben bernanke, already said enough in the last interest rate meeting. >> absolutely. he said the interest rate is going to stay low until mid-2013. that has many experts saying the quantitative easing very low which is what all of this is about. i think three or four days ago, yes, everyone was anticipating the fed chief would say something substantive in jackson hole about policy, but i think over the past couple of days that seems to have died down a bit. we've had gains on the back of the expectations, a little bit of a pullback since then. not much. and as we've been saying, it was helping the markets up today. i don't think -- that seems to be where the market is at the moment. there are a lot of people out there who say it's sort of throwing good money after bad and the u.s. is just going to have to sit back and take it. and all it does is sort of, you know support the stock market and the other side of it for asia at least is it does lead and has l

the headlines this hour -- shares in asia down. the new imf chief faces allegations she abused her a party which he was the finance minister. the u.s. suspends -- suspend sanctions against syria. latest figures success -- suggested that the people have died so far. this latest image of mars -- as a pollute -- prove there is water on the red planet? it is 11:00 a.m. in singapore and 4:00 a.m. in london. this is newsday. shares in asia have fallen sharply, reacting badly to the ongoing debt crisis. hong kong opened almost 5% lower. early on wall street, the dow jones index fell by nearly 4%. the eu failed to calm markets. our economics editor has more. >> two weeks ago today at their emergency summit, eurozone leaders said the future of the euro was safe. but somebody forgot to tell the financial markets. >> this is an abc news special report. >> the closing bell is just ringing now at the new york stock exchange. stocks have plunged this afternoon. >> tens of billions of pounds were wiped off the british and american stock prices as

china is the big player in asia. it's scary number of our allies in that region, and it's very important if we are going to participate in the economic growth and if we are going to continue to provide a stabilizing influence in asia as we have since the end of the second world war we need to be present in asia in every dimension with our diplomacy, with our military which has a reassurance effect with our allies and says to china but we have some capacity there if it adopts a more aggressive posture with respect to alice and the key to the military presence is the needy and the needy ten, 15 years ago as 500 plus ships now projected to go to something over 200 the role in the surface area that is covered by what is not any less. so, that's the point about we've got a problem in terms of trade. asia is to get there by trade agreements and we are on the sidelines so that's driven by the need by the united states to be present in asia. second of all, the point is we have spent since world war ii a lot of money and reso

has slashed its four caused for growth for the world economy a worrying sign there asia is not being left out of this asian markets are also now there's a saying when the us. does the rest of the world catches a cold and that's particularly true of asia which is export driven countries like china and india rely on the west boy its products its computers its toys and so on so you understand why the whole world is suffering at the moment this week's summit really raises more questions than it. is to single financial government for the. people of europe say they don't want to it's in opinion polls which raises real questions about the democracy of leaders just how democratic european leaders all it also doesn't for the real enemy which is that many countries have too much debt and their economies on competitive here in europe it really doesn't have issues and it's times like this where. they wish they had a safe job. for example. perhaps. a report saying that well it's been that way on that the asian markets while the stall in china is flying growth this contributed to trade it can only

all the markets in asia have pretty much a fall in indian markets were down two percent today the markets in south korea japan china new zealand and australia all fell today this wasn't a huge shock to most people most people predicted that this dog would fall most of the markets have been tumbling for days now in reaction to the often peak credit down grade of the u.s. economy so not a huge surprise especially after the us debt ceiling debate last week and the american dollar which has been tumbling for weeks now so all the markets are down here asia's reacting very strongly we're hearing strong words from chinese political leaders as well one chinese newspaper actually said the u.s. government has to realize that the good old days when it used to borrow its way out of masses is over so everyone's watching this very closely india is the third largest economy in asia and asia as a whole actually hold three trillion dollars of the united states china being the number one u.s. debt holder in japan being number two so they have a huge interest in what's going on over in the united states act

they're cutting back in europe but they're adding there are doing about five thousand people in asia pacific. to converse daniel toddler says the asian economy will easily would stab america and europe's turmoil concern that we have now is that we have to see growth rates in asia come down a bit further from where we had been expecting them and if you remember in the global financial crisis previously a lot of banks in asia got very cautious so they themselves decided to limit their lending and that's likely what we will face again and compared to the global financial crisis you may remember actually asian economies and banks didn't get that hard hit so again the situation today is is not that worrisome compared to the last two crises in asia for china remember in the past they were able to continue to grow their infrastructure program and banks were providing credit for that so china probably is still one of those countries where you'll still see acceptable growth remember they've been trying to manage down their growth to about eight percent and maybe we'll get there now but what y

there's no question in my mind in asia including china but other parts of asia as well is very much on the rise and they seem to be much more sure footed and they get things done over there compared to what's going on in this country well as europe's markets prepare to get going let's go to brussels and talk to our teens danielle a bushel hi there danielle. could you just tell us what's expected where you are following a one day drop in europe pretty steep there and the slump in wall street. absolutely has to come because the stock market isn't being lousy all week but sir the futures today point to a very sharp drop so investors here and obviously people are extremely concerned it came all the snow here berlusconi the prime minister of italy gave us a speech which was designed to reassure people but the very fact that he came out he waited till the markets close that day signaled the people there he was concerned i was a lot of people over it's a loser calling me of course we saw a crisis talks between italy and the european union this week on with their problematic economic situat

all southeast asia and asia there are a lot of similarities. >> he is a male entity. he is not -- are you referring to the story? >> it's interesting you should say that. a unique indian concept is one of half male, half female. and that is -- unlike some dances the solo dancer portrays all of the parts in the story. you can portray a feminine aspect and then masculine aspect with the bow and arrow. the male has to portray feminine and the female has to portray masculine. there is a very fierce dance and a soft sort of dance and every dancer has to learn all those aspects. it's very, you know, my teacher i call him a guru in this art form you have to study very, very hard. you have to learn about all the cultural aspects. he says it's liberating because he enjoys and has to learn to bring up the feminine aspect. he's a strong character it's a challenge for him and he likes it. the stories are metaphor cal. i don't look at this that this is a man or woman. there are qualities we all have that some of us are in touch with and are not. in our culture we think people shou

when asia went to bed, things were looking good. then wall street came online, the dow plummeted, so investors in asia woke up with anxiety. they were very confused. they weren't quite sure exactly what led to such a large dip since a lot of the economic fundamentals, at least from this perspective appeared not to shift that much. five minutes before the nikkei open, before the tokyo stock exchange officially opened for business, the economics minister here said europe, asia, and the united states needed to practice some good fundamentals, coordinated effort to try to make sure that the cycle of fear did not spread, that people tried to remain calm. when the tokyo stock exchange opened, we see what happened. it fell 4%. you see how the market day ended, down 3.7%. >> the japanese people, kyung, they have been in and around recessionary economic times now for close to 20 years, if not longer. do many of them play the stock market in japan or are the losses here more confined to the big institutional players? >> it is confined to more

well actually world market here in asia are rallying the stocks here are rallying people are obviously happy that this deal finally passed many leaders here are actually shocked at how long it took chinese newspapers are calling this entire u.s. debt deal debate irresponsible and even immoral so although people are celebrating the fact that this did pass there is a lot of caution some optimism here people really don't want to jump the gun and they're worried that. you know aren't finalized yet ok well what does this a near miss you know we've been watching this mean what does it mean for the confidence in the u.s. economy worldwide well it's important to note that a shell has a huge vested interest in what's going on in the united states three trillion dollars of united states that is held by asian countries china being number one japan being number two so confidence has really gone down here to another thing that a lot of people are worried about is the fact that two point four trillion dollars is said to be cut in the united states funding but a lot of that hasn't been decided and se

this is the shadow of the future, really hard to asia at this point.d the shape of that shadow is shifting. and unless we get our act together better it's not shifting in the right direction from our perspective. in terms of the irony, china will continue to do very well. i think the reality is that's not certain. if you look to china for the next in this program, you're going to have a very long wait before they will move in that direction. inflation, asset bubbles and decline in exporting markets, all kinds of problems, and very substantial levels of potential instability. so they are not about to start turning on the money spigots again. especially when their level of bad debt at local levels is very high. so that they're still trying to figure out how deep in the hole they are. they can manage it but we are talking trillions of dollars, not billions of dollars. picture. we'll have to see how it plays out but i think we're all much better off if china does well. but china may not do well in which case i think all the problems we talk about are furth

present in asia in every dimension. with our diplomacy, with our military, which has a reassuring effect on our allies, and says to china, we have some capacity there if they adopt a more aggressive posture with respect to our allies. our navy 15 years ago was 500 ships. now we are predicted to go around 200 ships. and the. that needs to be covered by water is not any less. we have a problem with trade. asia is being knit together with trade agreements and we are on the sidelines. that is driven by the need to be present in asia. second, the point is, since world war ii, we have spent a lot of money and resources to learn how to recruit, train, exercise, fight, and improve our military. and it has given us the best military in the world by far. it is a huge resource. that is why when we talk about defense cuts, we have to be careful not to squander that resource. we have not made anything like that effort to develop the civilian capabilities that will go in after a conflict and help rebuild countries and governmental in

kids another day of global salt so long as the european shares promotes again after sharp falls in asia or in the us and made new fears of old world recession. russia's cautions against international calls for change in syria as the us and the new president to step down. most to size the syrian regime needs time to implement promised changes and should be given the chance to sort out its political future from or join the race notion of from damascus in just a few moments. plus it's twenty years to the days since an attempted coup by a group of college lined communists against mikhail gorbachev helped bring about the end of the soul the. council mazin losses call raised to gripped by terror often seen people with some of its price shots in today's attack that have never been seen there before a. very warm welcome to you this is our see live from moscow stocks in europe have plummeted sharply after a similar falls in asia and in the u.s. investors are growing more anxious about the european financial situation and as leaders ability to resolve the debt crisis the result is down to reports

hours on the global stock markets with europe's exchanges dipping again echoing some worrying drops in asia and america stockholders fear the worst after the prospect was raised of a sharp slowdown in the u.s. economy as well as the eurozone that weighing on their minds and there's no friday feeling for spain or italy i think seeing a boring costs shoot up again he's done a bushel is following the trade session and breasts. stations because. more than eight percent on the news that it took over a billion dollar loss related to greek problems and of course many european banks have exposure to greece and the problems there so they are suffering their shares the suffering at the moment as well we saw a fall and then a slight correction and now again the may just thought markets germany france and britain in europe are suffering and the lloyds bank saw from the beeb a greater loss fourth quarter two related irish debts of the successive days of falls all the major bourses are again suffering greece neulander worrying you know it but what investors even more concerned about italy's current crisi

about what asia, andrew?ll, charles, as we've been saying, a much worse reaction, stronger reaction in asia to that downgrade today pretty much right across the region. obviously asia is an exporter. obviously u.s. is such a key part of the markets. if you take a look at the numbers there, you see it. that's the damage today. what i would say is it was worse earlier, so there's something at least a little bit of relief toward the end of the day. the nikkei down 2%. all the key markets there. shanghai falling more than 3. 3..77%. there has been a catch-up going on. the strategists now in bad territory. down more than 20% from its high in the current cycle so australia certainly feeling the brunt of the selling globally as the concerns about the site of the global economy and still the euro debt crisis concerns play havoc, certainly in this part of the world, charles. >> okay. we're going to return to a key partet of the main story, that is moves by european central bank to buy up government bonds. by the way,

sneezes the rest of the world catches a cold and that's particularly true of asia which is the export driven countries like china and india rely on the west and boy its products its computers its toys and so on so you understand why the whole world is suffering at the moment and also you know this is happening on the back of german and french leaders announcing their new save the euro zone and this certainly is not the reaction they were hoping for is that. this week's summit really raised more questions than it owns the to single financial government for the european union but the people of europe say they don't want it in opinion polls that which raises real questions about the democracy of just how democratic european leaders are it also doesn't force the real enemy which is that many countries have too much it and their economies on competitive here in europe it really doesn't tackle those issues and there's times like this. they wish they have a safe job like the gentleman you for example ok thank you very much for that update to our correspondent there daniel pushup thank you. o

almost all of monday's gains across asia reversed.lief other the washington debt deadlock has given away to gloom. the fundamentals are weak manufacturing out of the u.s., which hit exporters around asia, strong yen chrk is making life hard for the sector in japan. nikkei at 1.2. virtually 1.3% yesterday has now disappeared. likewise with hong kong shanghai down 1%. australia also down by 1.4%. there's also news out today, charles, that there's speculation that both china and india are planning to increase their interest rates further in the next month or so and that's going to cast it over the markets there. >> indeed. okay. interesting to see how that's going to affect the dollar. now, in u.s. markets, a weak report on manufacturing, quickly deflated the earlier rally we saw. we did see that pushing the markets high, but once the report came out on u.s. manufacturing, they were lower, particularly the s&p 500 and the nasdaq. the techs and the broader market off by nearly half a percent, just edging down there for the blue stocks of

china is the big player in asia.it's scary number of our allies in that region, and it's very important if we are going to participate in the economic growth and if we are going to continue to provide a stabilizing influence in asia as we have since the end of the second world war we need to be present in asia in every dimension with our diplomacy, with our military which has a reassurance effect with our allies and says to china but we have some capacity there if it adopts a more aggressive posture with respect to alice and the key to the military presence is the needy and the needy ten, 15 years ago as 500 plus ships now projected to go to something over 200 the role in the surface area that is covered by what is not any less. so, that's the point about we've got a problem in terms of trade. asia is to get there by trade agreements and we are on the sidelines so that's driven by the need by the united states to be present in asia. second of all, the point is we have spent since world war ii a lot of money and resou