europe is facing unprecedented challenges. financial crisis, the refugee crisis, and the ukraine crisis. to address those done lands, europe needs leadership. some are looking for germany. others are worried that berlin is becoming too powerful. nobody wants germany to go it alone. if germany gets too strong, it will be isolated. if it is not strong enough, it can't lead. what lies ahead for europe and its ideals of peace and prosperity? coming to you from berlin, "quadriga," the international debate. your host this week, peter craven. peter: welcome to this latest edition of "quadriga." as you've already heard, the question we are asking on today's show is, a german europe or a european germany? it is part of a week of special programming we are doing on dutch about -- deutsche we lle, asking where will europe go next? to talk about all this and more, i'm joined by three seasons observers and analysts. let me introduce them to you. beginning with judy dempsey, a writer and analyst for the carnegie financing who has always wor

it is an opportunity for europe's decision makers of tomorrow to tackle the problems of today. >> europe is their home and their passion. these young europeans are training at a summer camp in berlin. their main goal is getting other young people interested in europe as well. >> we shouldn't be the only leaders of europe, or future leaders. it should be all of us doing things for society, and for european society. >> every year, several hundred delegates come to international plenary sessions, and politicians get a chance to hear what is important to these young people. a top priority now is refugees working asylum -- seeking asylum. >> in hungary and the u.k., heads of state and national governments have their own political agendas and are completely unwilling to it here to even already exist ding eu agreements, let alone come up with new solutions, which obviously, we so desperately need at the moment. >> weather finish, british, or german, they all agree that change is needed. >> i would probably have more governments -- governance done on the european level. give more say to the euro

visions of europe. nevertheless, the eu has come a long way, even if the british decide to set a different course. so what do the decision-makers of tomorrow make of all these various visions of the eu? dw headed to berlin's harlem in building to ask him people how they would like -- how they would like europe to move forward. >> watching your hopes and -- what are your hopes for europe in the future? asked that there is less war and people become better at living together. >> that children are looked after better because there are so many who suffer. that, and the environment is very orton does well. >> that thing about greece should finally get fixed. i don't watch the news that much, so that's all i can think of. i expect europe to do more about refugees. >> i hope europe would give me a good work or something like that. >> i think the whole migration policy needs to be graded. >> of europe unites in self, a strong europe will make a great difference in the world. against america or china or russia.

it is an opportunity for europe's decision makers of tomorrow to tackle the problems of today. >> europe is their home and their passion. these young europeans are training at a summer camp in berlin. their main goal is getting other young people interested in europe as well. >> we shouldn't be the only leaders of europe, or future leaders. it should be all of us doing things for society, and for european society. >> every year, several hundred delegates come to international plenary sessions, and politicians get a chance to hear what is important to these young people. a top priority now is refugees working asylum -- seeking asylum. >> in hungary and the u.k., heads of state and national governments have their own political agendas and are completely unwilling to it here to even already exist ding eu agreements, let alone come up with new solutions, which obviously, we so desperately need at the moment. >> weather finish, british, or german, they all agree that change is needed. >> i would probably have more governments -- governance done on the european level. give more say to the euro

visions of europe. nevertheless, the eu has come a long way, even if the british decide to set a different course. so what do the decision-makers of tomorrow make of all these various visions of the eu? dw headed to berlin's harlem in building to ask him people how they would like -- how they would like europe to move forward. >> watching your hopes and -- what are your hopes for europe in the future? asked that there is less war and people become better at living together. >> that children are looked after better because there are so many who suffer. that, and the environment is very orton does well. >> that thing about greece should finally get fixed. i don't watch the news that much, so that's all i can think of. i expect europe to do more about refugees. >> i hope europe would give me a good work or something like that. >> i think the whole migration policy needs to be graded. >> of europe unites in self, a strong europe will make a great difference in the world. against america or china or russia.

back andot stepped really look at where europe is going and what is the future of europe. let's assess the problems and what the u.s. strategy should be. withpen to be affiliated the atlantic council, who is launching the assessment that is long overdue. it is crucial that this is done for the reasons that were stated. >> i want to talk about the ttip . we will go to questions shortly. a mechanism, aside from defense, diplomacy, is the economic partnership between the two sides of the atlantic on par with security and diplomatic ties. >> absolutely. ttip matters greatly and the ambassador mentioned the importance of the economic relationship and at the volume of our trade. it is a win-win. we have a challenge with the european commission and the regulatory challenges that some of the businesses are encountering. that is in the mix. it has to be sorted. ttip, absolutely. >> we have been preaching for the free economy and we with everybody and in both the u.s. and the eu. where not punching below our way and we will not meet -- reach agreement. there is a political message t

we are to three under 22,000 people crossings into europe -- 322,000 people crossing into europe. with four months to go and is ear 2015, we are 100,000 above last year. these are people fleeing handful of a countries. syria summer one, somalia, in afghanistan has become prominent as well. generally, merritt consideration for asylum. the tragedy is being treated as refugees by europe under a list any circumstance, risking their lives for the opportunity to petition the most countries think they already deserve. fuelingk about what is this mass migration. from africa, from the middle east, from around all of the surrounding countries around europe. >> we can't be naÏve. what is feeling it is the conflict in a few societies. however, it is a lawlessness of places like syria and libya right now that deny europe and the rest of the world any kind of [indiscernible] to try to control and manage the migration flow. we understand our demographics involved. there's a huge demand for cheap labor, skilled and unskilled. but the fact is, this is not a new condition. this has gone on for deca

stocks in europe and the u.s. rallied on tuesday, getting back some of those massive losses from monday's major selloff. kristof joins us. is this the happy ending? kristof: i don't and we have seen the ending of this whole mess because the fundamental questions and concerns investors have regarding china have not changed. on tuesday, the chinese central bank may have cut the benchmark interest rate, but it has done that now for the eighth time since november hoping to increase lending, to prop up business, and to pull up plunging stock markets. european and u.s. indices rallied big time, but before the shanghai composite index again sought a sharp drop. the situation in china is not only business but also political leaders concerned -- has not only business but also political leaders concerned. the german and french foreign ministers offered a surprisingly blunt judgment of chinese economic growth prospect. at their meeting on tuesday, they cautioned against underestimating the dangers looming in china. germany i

that is what we are doing in europe. giving money to greece to pay the debt to the ecb, imf, and europeans fusions. it's not a long-term program. which is what is needed for greece. greece is a country that has to be rebuilt from scratch, let me put it this way. in order to do so you need a ten-year problem, not a three-year program. -- ten-year program, not a three-year program. sarah: what else do we need? we have seen that the euro has hit a couple of pickups, to put it mildly. some have said that the european union needs something that is a formula more like the united states. further integration. that's the only way the euro will work. do you agree? >> i fully agree. as i said before, the united states has a common government, currency, and language. we cannot go towards a common language because we speak languages, even if it english is be -- even if english is becoming a working language for most in europe, but we will never have a common language. a thing that we need is more common government. we need more integ

that is what we are doing in europe. giving money to greece to pay the debt to the ecb, imf, and europeans fusions. it's not a long-term program. which is what is needed for greece. greece is a country that has to be rebuilt from scratch, let me put it this way. in order to do so you need a ten-year problem, not a three-year program. -- ten-year program, not a three-year program. sarah: what else do we need? we have seen that the euro has hit a couple of pickups, to put it mildly. some have said that the european union needs something that is a formula more like the united states. further integration. that's the only way the euro will work. do you agree? >> i fully agree. as i said before, the united states has a common government, currency, and language. we cannot go towards a common language because we speak languages, even if it english is be -- even if english is becoming a working language for most in europe, but we will never have a common language. a thing that we need is more common government. we need more integ

stocks in europe and the u.s. rallied on tuesday, getting back some of those massive losses from monday's major selloff. kristof joins us. is this the happy ending? kristof: i don't and we have seen the ending of this whole mess because the fundamental questions and concerns investors have regarding china have not changed. on tuesday, the chinese central bank may have cut the benchmark interest rate, but it has done that now for the eighth time since november hoping to increase lending, to prop up business, and to pull up plunging stock markets. european and u.s. indices rallied big time, but before the shanghai composite index again sought a sharp drop. the situation in china is not only business but also political leaders concerned -- has not only business but also political leaders concerned. the german and french foreign ministers offered a surprisingly blunt judgment of chinese economic growth prospect. at their meeting on tuesday, they cautioned against underestimating the dangers looming in china. germany i

the dangerous and deadly passage into europe.on land and by sea, casualties rise as hundreds of thousands make a desperate journey. we continue our series on katrina, ten years later. an ambitious experiment to turn around failing public schools. but have charters succeeded by bending the rules in their favor? >> they wanna have great test scores. if you're a low tester and i really want to get you out of my school, one of the tools i've seen used is suspension. >> woodruff: and it's friday. mark shields and david brooks are here to analyze the week's news.

reporter: that will show you really want to get to europe. >> yes. friend!g to germany, my reporter: it is still a difficult journey ahead. but this is a time to give thanks, even if they are still searching for a home. one step closer to a new life. tracks from serbia to hungary. every day, thousands are on the move. >> if i go that is good for me. reporter: is that we want to go, england? >> yeah, i like this country. reporter: difficult for his brothers and nephews to it is hoped that keeps them walking. >> freedom to have a good country, to have children learning every day. reporter: to leave, to get out. >> to have a good life. reporter: so far this year, more than 140,000 have made this journey. afghans, and iraqis escaping war and brutality together. >> we are not only syrians. we are muslims, christians. we have no differentiation between us. all of us can we are praying for the same thing. why europe is trying to do so for us. reporter: and so they go on together. searching for a place to call home. reporter: at the age of just he has traveled more

it was a similar story in europe during wednesday's session. we did see europe essentially taking a page out of china's playbook with the ftse down 1%. it was the biggest hit. let's talk you through whether the u.s. -- where the u.s. markets are this hour. we've seen some gains on durable goods orders in the united states. we did see a little bit of a wobble earlier when an official from the federal reserve warned that china's woes could spill over into the u.s. economy. that brought the markets down somewhat earlier, as i say. still though this hour we have seen those markets firing on all cylinder once again. the dow, the nasdaq and the s&p 500 trading higher. let's bring you up to date with a few other stories we're watching for you. the world's biggest advertising firm say he's upbeat on china despite the growth woes. the chief director expects the chinese market to rebound in the second half of the year. soros spoke after wpp posted rising earnings. and it has been outweighed by a strong performance of developed markets like the united sta

is europe betraying its values? all european countries going to be building fences and walls internally and externally? katarzyna: that is really terrible. we know from old times that doesn't help to solve the problem. favorable reaction from hungry to build such a fence. you are transferring the problem to neighboring countries. peter: i was looking at the figure for slovakia. refugees have4 been taken in by refugees -- by slovakia, compared to other huge numbers. erik: they have to be christian or something. peter: they are being very selective. if we have countries around ,urope saying, we do not care how are we going to get a common european policy on the refugee question? christoph: we need to come to a solution, but not in this mathematical matter. it is a difference if they are countries like lot via or estonia. they have a 30% or 40% population not -- peter: does ethnicity factor in? countries there are that can afford to take in more people, like germany, a growing economy. it's easier than a country with a

to come from europe itself. how could this be arranged? this could only be arranged by solving a trio of interlocked problems. accessing the right networks, conjuring up payment and transporting material back and forth across the ocean. given the scale remember, they need a lot of all of this stuff. overcoming these challenges would have been difficult even in the international market. but colonists in the 18th century america did not happen international open market. mercantilism might have been fraying at the edges, but economists were still traveling across the economy that mercantilists built. they were for bid and access to most foreign markets, deprived of hard cash, and mostly bereft of oceangoing ships. consider first the problem with networks. where could private persons go to buy an army worth of guns and ammunition in the late 18th entry? -- century? that required not only timely market knowledge, but reformed -- informed and reliable contracts abroad. exchanges involved 3-5 commercial partners in mul

i asked him why europe and the u.s. were so vulnerable to china. ,> i think in terms of europe some of the most current economic data we have seen, germany has a significant component of its economy which relies on chinese exports. 08/24/15 08/24/15 [captioning made possible by democracy now!] amy: from pacifica, this is democracy now! >> here is the idea we are going to test, referendum president, a candidate who runs for president making a single promise that if elected, he would serve as long as it takes but only as long as it takes to pass fundamental reform to finally achieve citizen equality. once the reform is passed, this president would step down. amy: as 2016 shapes up to the

if they were as reliant on chinese consumers as europe.ts lowest level since the initial public offering. the big problem for the commodity exporters is not so much the devaluation, they were already feeling a pension as a result of a slowdown, the big concern there is the slowdown will continue. , when you havet commodities going through these cycles, we are seeing a bounce back in oil, copper, and iron ore, you talk about commodities going down to a 13 year low, some people might be inclined to think that perhaps we're at the bottom. jonathan: thank you. an ugly few days for many mining stocks. let's bring in paul to talk about it. he is a mining research analyst. paul, i was reading your latest research, you look at the dividend yield, higher, higher. it tells me that these guys will cut their dividends, or the stocks are too cheap? paul: i think it depends on the quality of the balance sheet. if you look at the highest quality names, probably rio tinto, the reaffirm to their dividend last week. they have plenty of headroom, they are ge

which areas of europe? is it about banks and europe, too? >> it is.sitive review in the biggest overweight position we have is within europe. and i think the real key here is the economy and the signs that there is a domestic economic renaissance. that is crucial. it is not all about the euro. at the beginning of the year the consensus was that qe would lead to a decline in the euro. it already happened as we got to the announcement. perhaps the new news has been that qe is having a more pronounced effect on domestic economic conditions. so all of the upgrades to gdp for 2015 have come through consumption not net exports. that is key. that favors more domestically and front and center there are the banks. we have had a pretty good earnings season and the second quarter for european banks. guy: are you comfortable putting more money into equities right now and are you couple putting the bulk of that money to work and europe? >> yes on both counts. i think the equity cycle globally is long in the tooth. we have had a very long run, but we came from an e

on this week, we are focusing on challenges facing europe and our special series, what next for europe? we're looking at the huge influx of people to the continent. many of them are fleeing hunger, war, and poverty. this migration crisis will define the decade. the challenge has become increasingly urgent for the european union. a dramatic increase in the number of people heading to europe. greece alone has seen a 750% increase. most of them are not planning on staying there. many are trying to get to more prosperous countries like germany and other european countries where there are no border controls. they follow what is known as the western balkans route. our correspondent joined a group of refugees that are trying to make that journey. >> they crossed the border on foot, carrying what little they have left in backpacks. more than 2000 people arrive each day. it is already overflowing in the early hours of the day. everyone here wants to travel further north as soon as possible. but it is not easy to come by. mohammed has been waiting for a day now. he is an english teacher. now he'

and europe. i would argue that there are a lot of differences also in terms of dynamics between the two sides of the ocean. in europe, i'm simplifying things a lot and generalizing i think we see a lot of clusters and a lot of peer-to-peer radicalization and mobilization. as i said the online propaganda, social media, has a huge role to play here but the personal relations that people have are unquestionable. people who radicalize and eventually leave for syria and iraq. if you look at maps where individuals who go to syria and iraq from different european countries come from, you will see they are not evenly divided in any country but they come from certain towns, certain cities and actually certain neighborhoods in both cities and generally bears a human factor there, there is a connection. there are two or three guys that go first. then they call friends, cousins, classmates. they talk to them through social media. social media is the conduit, the means which they reach out to people back home

they now it has political ties with europe. it has the backing of germany and russia and they can go ahead with this. and the only people hurt if they close this deal would be america. back to you guys. >>> the inequities have largely trades, the shanghai composite has closed down 12.5% for the month of august. the pboc is finally waking up to the reality they have to be, quote, more cautious to interfering with the markets. speaking to our colleagues in asia, he said he's expecting more policy action in the central bank. >> i think they're going to have to do more going forward. they're going to have to loosen up more. i think the problem in china was the government intervening in the market. that creates too much confusion. and had the opposite effect of what was expected. but i think now they're beginning to wake up to reality that they have to be more cautious in interfering with market mechanisms. >> we're going to continue that discussion in just one second. >> you absolutely should. >> but let's discuss further the profe

back andot stepped really look at where europe is going and what is the future of europe. let's assess the problems and what the u.s. strategy should be. withpen to be affiliated the atlantic council, who is launching the assessment that is long overdue. it is crucial that this is done for the reasons that were stated. >> i want to talk about the ttip . we will go to questions shortly. a mechanism, aside from defense, diplomacy, is the economic partnership between the two sides of the atlantic on par with security and diplomatic ties. >> absolutely. ttip matters greatly and the ambassador mentioned the importance of the economic relationship and at the volume of our trade. it is a win-win. we have a challenge with the european commission and the regulatory challenges that some of the businesses are encountering. that is in the mix. it has to be sorted. ttip, absolutely. >> we have been preaching for the free economy and we with everybody and in both the u.s. and the eu. where not punching below our way and we will not meet -- reach agreement. there is a political message t

as well impacting everything in europe. -- inf the major players europe as well we saw carmakers the mulberry and swiss watchmaker's. any further slowdown in china is going to be hitting europe in a more specific way than it would if it was going to be in the u.s. turned this week has into the worst week for global equities so far this year. how long do you think the stock market route will continue, and how deep will it be? joshua: quite honestly, i think that it quite likely will get a bounce in the near future but the question here is whether any sort of balance will be lasting. -- bounce will be lasting. there is always a relief rally and therefore, i don't necessarily think it will continue into the next week or 10%.% or but if we see any sort of upside, the negative sentiment we are seeing in the market mean that people are likely to sell into it rather than the by the dip mentality that people had in 2014. now it is the complete opposite, sell the bounce. markus: slowing growth in china sparked concerns about knock on effects in many other countries. china announced it would d

that is the most famous part of his time in europe. he also negotiated a treaty with the british, which the british signed. the americans never did. that treaty could have prevented the war of 1812. host: many people forget that there was a rivalry between the u.s. and france during this time. can you explain? cassandra good: it was a three-way rivalry, spain has fallen in importance, but the french, the british, and the americans are all fighting over topping to each other and the colonies, and especially to their armies during the napoleonic wars, so the u.s. could have easily gone to war with france as well. the french had been seizing the american ships, just as the british had but the french did , not have the level of naval power that the u.s. did. it was not able to escalate like it did with britain. go back to the time in the early 1800's and walk us through how monroe would travel to europe, how he would arrive, the time it took to get over there, and then meet with leaders and get that information back to the u.s. by today's

we got out through turkey hoping to make it to europe. they placed us in a boat in the middle of the sea. three times we almost drowned in the middle of the sea. the whole family was about to die, but i kept praying to got, dear god, we are your servants, spare us and protect us. thanks to god and by the grace of god we managed to make it safe. in greece they put us in a boat. they robbed me. they took 1,000 euros, $200, 200 turkish liras along with my personal syrian identification card. they left me with nothing. no sion documents, nothing to identify me, not a single penny. for five days it was yo humiliating in athens. some young men helped me to see my own children. it's been 20 days and i have not washed my clothes. what can i do. what can i do with these young people? what can i do to help them? there is no water to wash them with, no food, no decent water to drink. there is nothing for them at all. look at this. this is their meal. this is what we're supposed to speed our children with. what can keep them alive? is this a meal? is

people are dying in europe and on the border of europe, and while europe is skaubling about what to doople are dying. this is a refugee crisis predominantly, and it is the first time europe has faced a mass influx of refugees from outside of the region, and politicians are passing it around like a hot potato, failing to take decisive coordinated action. >> what sort of coordinated action is needed right now? >> i think we need a comprehensive refugee policy for europe. it needs three levels of action. firstly we need to show better solidarity with regions of origin. 95% of the world's refugees are from countries in conflict. we need to recognize that and support it with development systems and then ables neighboring countries to cope better. nextly we need coordination and responsibility sharing in europe. 300,000 have arrived in greece and italy this year. we have 28 member states. 300,000 divided by 28 should be mangle. but the current system places responsibility on front-line states like italy and greece, and leaves others further away with less responsibility. we need renewed coop

plus the long walk across europe continues for thousands of refugees. some are taking extreme risks to find a new life. >> back in doha, we'll have all the sport including the latest in beijing. usain bolt has won his third gold medal. >> hello, the legitimate journalists unjustly convicted. that's how al jazeera is describing the sentencing of three of our journalists to three years in an egyptian prison. canadian mohammed fahmy and egyptian baher mohammed, and peter greste were sentenced to three years in egyptian prison. they were arrested in december of 2013. they were convictewent to trial in february 2014, and in june they were found to supporting muslim brotherhood and working out a permit. they would spend 400 days in detention. al jazeera has always vigorously denied the allegations. the next legal step is to file an appeal before the egyptian court of concession. >> hope, then heartbreak in an egyptian courtroom as two journalists returned to prison. a retrial was supposed to give mohamed fahmy, baher mohammed and peter greste a second opportu

is that a burden that europe cannot manage?ll, it is not enormous. >> eve, i'm afraid that at that particular point, that really interesting point and interested to hear what you have to say but the sound is gone and we will try to get you back and see if you can respond that and i was suggesting 300,000 or double that 600,000 entering into european territory, this hugely rich area is not a massive burden. >> yes, it is and clearly if we compare the figures 500 million and 300,000 and even 600,000 and this is not also a big figure if we have looked to what turkey, jordan and also lebanon have done in order to cope with this situation. but we have also to consider as i said before that the political climate in which this issue is coming up, on the agenda is extremely tense and some member states are making it extremely difficult to provide for the solutions. eu citizens are now in a situation where they have some kind of identity crisis in some member states and so the idea of receiving more people in the economic situation wher

to keep refugees out of europe. most are fleeing war and persecution in places like syria. if they manage to survive crossing the mediterranean, they make it to greece, they then have to walk hundreds of miles through the balkans to hungary, because, if they make it across the hungarian border, it can then be easier to reach western europe, the final aim. but it's a perilous journey as our reporter found out. ((when -- out. reporter: it's a risky endeavor. ahmad shehabi is trying to reach germany. a syrian of palestinian descent, he's already made it to greece. he came on a rubber boat to the island of samos, where he then landed in jail. >> they don't take gave us any cover or any sleeping bag. we sleep like this, on our back, like this, without anything. and it was cold, very cold. we have children, we have families. reporter: every day, hundreds set out from thessaloniki in hopes of crossing the balkans to western europe. they're supposed to apply for asylum in greece, but that's an unattractive option. and the g

there was a fear increasingly in the united states if germany won in europe it would be a europe hostile to the united states and that the united states would then find itself in a position where it would be more vulnerable eventually as technology was clearly changing and advancing, it would become more vulnerable to threats from europe. in any case, december 15th, december 1915, wilson and his state of the union speech talked very focused, it was very focused on military preparedness. he developed new an approved new five-year plan for the navy and approved by the senate in june 1916, after a great deal of debate. in congress, a national defense act was approved which increased the army to some 223,000 people and had been an army of less than 70,000 people so this was a very, very marked increase. again, this was cast in terms of defense of the united states. not of getting into war. i think you can see the similarities between the sort of debate that took place in the united states before 1941. a similar debate that the united states doesn't want to get involved in war. doesn't approv

that is the most famous parts of his time in europe. he also negotiated a treaty with the british. that treaty could have prevented the war of 1812. >> many people forget that there was a rivalry between the u.s. and france during this time. cassandra good: it was a three-way rivalry, spain has fallen in importance, but the spanish and french and americans are fighting over shipping to each other and the colonies, especially with the armies. have easilycould gone to war with france as well. french were seizing american ships, but the french did not have the level of naval power that the u.s. did. back to the time in the early 1800s and walk us through how monroe would travel to europe and the time to get over there and meet with leaders and get that information back to the u.s., it had to be very long and cumbersome. cassandra good: it was a long journey to get to europe, weeks, depending on what time of year it was. four weeks.han you do not have international mail, so if you had to send a letter, you had to find somebody who you trusted to be going where you needed to go. you mig

we have to remember this is a refugee situation in europe.eople live for the push factors and not the pull factors. the simple reason is countries in the reson are full. lebanon hosts 1.1 million refugees. that's 25% of its population again in refugees. so these syrians have hosts refugees for a very long time. they've hosted palestinians and posted iraqis. they do deserve to be treated with dignity and respect, and for countries to have open borders and enough assistance in the immediate region or further afield. the scale is so huge we can't leave it to the countries neighbors syria alone. we need mour countries to open the border and remember that refuse skwlees are pushed out of their home, not pulled. >> good to get your thoughts from geneva. thank you. >>> isil has reportedly stepped up its defensive in the syrian province of aleppo in an area where turkey and the u.s. are planning to open a new front in their battle for control. the group is said to have launched intensive attacks in the north towns of aleppo. isil gained control of fi

we do not see recruiting networks like in europe. i think in europe we have significantly more accomplished and sophisticated structures of recruiting networks that do not exist in the united states and even though the internet, social media to some agree substitute. a lot of people would agree that it doesn't complete the face-to-face interaction. it does happen in some cases. in the majority of cases you join isis because you have some personal connection to somebody that has personal connections there. there's a third reason which is more on a macro level very different levels between european and american muslim communities. i do not want to overstate the problem, when we see analysis, environment, i think the analysis of the social situation in the muslim community and radicalization were exaggerated. there are problems in europe that are significantly higher than in the united states. we do not see in the united states the groups all these groups that have been instrumental in european setting in radicalizing, mobilizing a lot

before europe. the real engagement of u.s.nto europe has been a big theme over the last 12-18 months. i think that continues. from my perspective, i think it is more a u.s. story. from a european perspective, you will have a lot of u.s. capitol coming into europe and we need to see european earnings picked up. guy: a huge premise, though. i have heard various people tell me that, if we do not get that earnings story, you need to fundamentally reassess the way you look at european equities. it is almost a given it is going to happen, but should it be? >> i think you are right. over the years, we have seen expansion. only this year, you have seen the earnings really coming through in terms of numbers and expectations, which are much higher this year. for the next six months, you are right. we will be putting far more stress on earnings. there is a big question. there is no doubt about that. if you look at the amount of credit flow going into the economy, which was not the case last year, we have seen from the bank lending sector

it is not a potential black swan in europe.s not a solution that is need to probably come with elements in order to make it more sustainable and mak e the the possibilities of decreasing the debt level more practical and pragmatic. the good thing about the plan is that it leaves the sum time for them to have the reform having an effect. that is the good element in the deal. a half -- have a challenge. it is expected at the very end of the contract. it is not sure if they will be able to achieve it. europe has to have a community to do with the long-term problems. that is a very important element. rebecca, they keep having immediate crisis. public with the long-term governance issues -- rebecca: there are competing pressures on all involved. for any of these long-term changes made the needs to be a stable framework for everyone to work and. there is a real feeling that if political approvals aren't handed out in an a commando factor, it might weaken the pressure to follow through. when you are coming back every two weeks to reco

both europe and u.s.closed with mixed numbers on friday with some suffering th biggest swings in history andrew stevens has the story. >> what a week, an absolute rollrol rollercoaster, ending like this on friday. the shanghai down almost 8%. hong kong closing out the week by 3.5% down. but japan only 1.5% and the australian markets actually finishing higher. it could have been so much worse. it all traces back to august 11, when china's central bank first allowed the yuan to slide in value. that worried the investors the world over with some speculating that this was a way to boost the economy through exports. but thin on friday august 21st. >> a major manufacturing activity hit the lowest level in 77 months. >> to say it rattled the markets would be an understatement. markets across asia trading lower, but it was shanghai the following week where the real selling took place. >> asian markets suffering huge losses in monday's session. >> europe followed suit with the dex tentering a bear march kit. then

it concerns everybody in europe. this is, in a way, the mirror of the future of europe.om: talking about labor issues, you have the forms, the taxes that will start, particularly those very unpopular property taxes. it's important to you and the prime minister that these elections happen quickly so that you can get that mandate before the pain kicks in. >> people are not idiots. they know the context for the agreement. this taxntioned, burden -- it is one of the measures that we would avoid. the greek electorate should know that it exists within the agreement. will they continue to support us? tom: a quick one about the party and the split that we have seen -- what is the new cabinet going to look like, it tsipras gets the mandate? >> as it looks now, we have lost a few key members of the. -- of the cabinet. tom: and that split hasn't completely damaged, eroded the original purpose of the party? >> no, quite the opposite. that it came for the t i think we are going to keep our character as a party for the social character of europe. tom: minister, thank you very much. th

growing number of people trying to reach western europe, that station on the border of europe, very crowrde crowded and organi. >>> across the border to muniing ick, germany has considered it will grant asylum to all refugees. hungarian capital, andrew simmons is there. >> this is the latest train to arrive on the austria hungary border. people without visas have been allowed to carry on if such numbers. an extraordinary thing happening in budapest, thousands have been kept really tucked with nowhere to go. not allowed to get on trains. stuck living rough in the pavement outside the three main rail stations in the hungarian capital. but now we have a situation where the only thing delaying things here is how overcrowded these international trains have become with so many people on board. not just srnz. thersyrians, there's alsoiraqisd afghans as well. the hungarian government contacting the german government to clarify the status of syrian refugees, suggesting that germany will seven asylum applications from people fleeing the syrian war. whether or not there will be effectively a free-runn

says 300,000 people have arrived in europe so far this year.ungry is also under fire for this fence it's building along its southern builder and french foreign minister criticized the fence saying that it doesn't respect europe's common values and a short while ago we put those criticisms to a spokesman from the hungarian government. >> let me put this clear it's not about asylum law but illegal border crossing we are trying to fix and it's unacceptable 150,000 people come through the green borders with no order, discipline and law and we try to establish the borders of hungry or serbia which is a border and it's law an order and puts some kind of discipline into this huge influx of illegal migrants. >> discipline, order and law for refugees who are escaping from an absolute appalling war in syria, is that really the right approach? >> it's the best interest of those arriving through them who might be refugees or only economic migrants, we don't know because they don't have papers and don't have any way of proving their identities and the estab

the refugees crisis currently affecting europe. countries up sift this growing crisis is forcing them to be more flexible. john psaropoulos reports from greece which is one of the main entry points for the thousands arriving every day. >> reporter: another group of syrian refugees arrives from the greek islands in the port. among them many young men escaping army service or conscription by the islamic state of iraq and the los levan. mohamed is a 25-year-old economic student. he says his family dislikes syrian president bashar al-assad, but he doesn't want to die fighting him. he wants to finish his studies. >> the situation in syria is very, very bad. because the war is big. and there are many, many groups in syria. >> reporter: and what is happening now on the streets? >> the people killed, the people killed in any any, any, any place in syria. >> reporter: these numbers monitored by the united nations overwhelm not only the greek authorities, they have cut through the treaty which established border controls and they have forced