of an economic european government, but there may be some muted support for that. you certainly will see the berlin parliamentarians, along with other countries in the euro zone, coming up with a debt ceiling. all of that sounds very good from berlin. the idea of a financial transaction tax has been bandied about for a long time and it is doubtful that that will get much support. >> leaders saying no to bonds, can they hold the line? >> the two leaders said that this is not the time to talk about bonds, but i can expect that in the future, if those underlying economic structures are put in place, and i can imagine that the discussion of eurobonds might come up again in the future. >> thank you very much. as if all of the talk of new government borrowing at higher rates was not european at the same time as these talks were being held, europeans were buffeted by the release of the latest economic figures for growth. just a few days ago, economic data showed the economy was spot growing entirely in the second quarter. fast -- france is one of the world's largest econo

the other lessons we have seen regarding the european union is, the european union -- it has not been the intention of the european union. the intention is to support nato in its efforts. we have seen that over the last couple of weeks. they have provided 200 million u.s. dollars for the transitional council for measures that need to be taken in the next months to come. first and foremost, the european union will always take the civilian side and not answered the security force. mcalester germany, unfortunately i have bad news -- when it comes to germany, unfortunately i have bad news. the security academy in berlin, he was acknowledging that germany and its allies made msitakes, but it indicated germany is against boots on the ground in libya in the months to come. the first panle drafted a new resolution for a new peace corps in libiya. but he also said he hopes no one will ask for german troops in libiya. [laughter] then that is a perfect indication of where german politics is going right now. the former german chancellor helmut kohl cannot -- came out this week where he was critic

there are european investments at stake. the our european oil and gas supplies at stake. there's a risk of libyan migration if things really go to hell in handbasket. there's a risk of libyan migration, which should concern the europeans and which is not as much a concern to the united states. so i do believe in all what i'm going to talk about now, i deeply that the europeans should play a leading role and that the american role is in part to get the europeans to stand up to their proper role. we did this somewhat successfully with the military effort. i haven't seen the same kind of success yet with the civilian effort. looking at the longer-term. libyans are going to want rule of law, at least in karim's center. they will want rule of law and i'm going to keep myself in his fourth relatively benign scenario. this is a long-term project. it's not going to happen tomorrow. training and retraining of the police, the judiciary and corrections. you've got to start pretty quickly now. because it's going to take a long time. it can't wait three or four years and then begin it

we don't wait until european legislation or regulation coming up. we also have no brussels, no belgium, but european towns, towns in europe, trying to find one another and to press, to put pressure on mayors and regional ministers to commit themselves to invest in bicycle policies. so those towns can learn from one another. as i told you, brussels, i have found several similarities with the two towns i have been getting to know now yesterday and today. we have about one million inhabitants. brussels is 10 to 10 miles on distance and i agree with what has been told here that that is in favor of promoting cycling because the distances are never too long, although we also have a difference of height. i mean, like amsterdam is plat as a pancake we would say. brussels does have some, well, ups and downs. an important issue politically is that we have -- we are, in fact, giving big gross national product to the country, 20%, although we're only 10% of the population, but yet most workforce is coming from abroad, from flounders, from outs. so they are comi

central bank and the european financial authorities. there has to be some coordination here because the other problem underneath the debt crisis is the european banking crisis as well. we have very undercapitalized european banks that affects liquidity here. >> woodruff: they're tied together. >> absolutely. >> woodruff: and again just to stay with this question, scheherazade, about the effect on the united states. for americans looking at this the hope is is let's hope europe gets its act together. >> we've been trying to tell them to do this. >> woodruff: i'm asking. is that the question? is that the hope of america? >> absolutely. please get your house in order because it's not helping us. gordon brown who was the former prime minister of the u.k. had a wonderful piece in the "washington post" last week where he said a loose statement anywhere by anyone will sink markets everywhere. he's right. >> woodruff: so the one thing americans can hope is that europe finds a way to get through this? meanwhile the europeans are hoping that the

the president is probably more right than the european politicians the. moment they have a monetary union here in europe that has really very important structural handicaps and would go through. we have and i would situation that has become a full blown crisis that is threatening. the existence of the euro zone why are we being told the opposite i mean why not tell the truth let the markets take a hit recover instead of just continually bleeding and trying to encourage non eurozone countries to keep him coming in and joining the bloc well i think so much there is so much political capital invested in this project that it's very hard if not impossible for the problem patients who are at the moment running the european council to give give up on the idea of a monetary union so it's a question of politics if you look at it from the economic point of view we have the situation. is a lot more than the publications like to admit. germany's ruling party has announced it wants a eurozone exit mechanic for countries unstable to meet criteria for membership is a bi

european stock markets are diving outer wall street hits the low not seen since two thousand and eight panic investors abandoned global stocks. and as the u.s. credit downgrade triggered freefall in international markets india claims its economy could actually benefit from the situation. plus russian markets are taking a beating with the r.t.s. down almost eight percent more and that's in business in twenty minutes. live from our studios in central moscow you're watching r t with me and use in our way it's two pm here in the russian capital eleven am in london where buildings on fire windows smashed and shops ransacked are the scenes devastating the streets at least officers in their thousands are deployed to tackle the lawlessness that's now spreading to other cities the prime minister has flown back from his family holiday and is in emergency talks to decide how to deal with the crisis fourteen people have been injured with police making over four hundred fifty about one hundred eight emergency services and pushed beyond their limits with the london fire brigade saying it faced its b

and the europeans are saying right now. the military wing of hamas has announced it's no longer committed to a cease fire with israel the statement comes as the jewish state continues retaliatory air strikes on the gaza strip for a second day more than a dozen palestinians have been killed in the attacks tel aviv began its campaign following an alleged terrorist attack that killed eight israelis on thursday popular resistance committees based in the gaza strip were blamed for the original incident the palestinians responded by launching more than twenty rocket attacks the rising tension comes less than a month before the line of the u.n. vote on the recognition of the palestinian state gaza based political analyst dr honey. thinks israel wants to sabotage the vote in divert attention from recent domestic unrest. all palestinian political factions have their mind and they link or sponsibility with this attack on the israeli side on despite this fact we have witnessed last night military operations against the gaza strip i gu

kind of well the central european parliament and all the things that the muscles. particularly to to basically protest that we're not having our human rights respected in the place where this is going to say that it will take them two months to march this fifteen hundred plus kilometers to reach brussels where the last thing on their mind will be putting their feet up greece portugal spain people those in their jobs and their homes and while the politicians in these countries insist the situation could get better common people believe current economic policies are the eurozone lead down the road to nowhere in the last party. but to discuss the situation in the e.u. we can now talk to dr richard wellings from the u.k.'s institute of economic affairs he joins us live now from london thank you very much for being with us here on. the e.u. commission president wants to inflate the bailout fund but if italy or spain do succumb could money to bail him out really be found. where we're looking at such huge amount the phone could end up being over a trillion euro so the pro

european markets tumble on news of economic stagnation across the continent that's wrong seeks to convince an already skeptical germany to shoulder even more of the euro's book. another kind of market a gruesome all didn't trade in india is on the rise before he's accused of colluding with those illegally preying on poverty stricken people sacrificing their health for life. just after five pm here in moscow this is artsy with me roll reception. jetson the latest gleaming airline is a piercing the skies all over the moscow region where the world's biggest aircraft makers are at russia's max two thousand and eleven asher showing off their newest designs and it's awesome he is there at the airfield and oh dear me eve gotten tired of driving around moscow now you fancy going to fly around moscow how's it going there at the show. it's going great i did find myself a nice story just the right size for me but i'll tell you about that in the second of all you here at the max two thousand and eleven it has reached a climax actually we've seen a quite a number of planes are going up in the sky the m

european markets same story. the dax index in frankfurt, another rough day to down more right around 3%. let's take a look at the commodities for you and get you up to speed there and we've seen all moving lower. again, right around now $80 a barrel and concerns with the global economy slowing down the demand for oil just won't be there. but look at gold, up 44 bucks at $1866 per ounce. are we headed towards 2000? it looks like we might be in the near future. check out things are doing in europe on the heels of yesterday's steep declines there. lauren has been following all the action in europe on this friday morning. good morning to you. >> good morning. i have held on to a gold necklace i've been meaning to sell. now might be the time. they keep going up and up and up. here's how europe is doing. as you said, the selling is intensifying across europe. now, yesterday, if you recall, morgan stanley put out a note where he said u.s. and euro zone markets are close to heading to another recession. they cut their gr

the european central bank said this is the worst crisis since. and it requires quote unconventional measures no central bank has a famous big call for being reassured and when you hear someone like that coming up with radical phrases you want the investors in the markets upon making. the european central bank boy a spanish italian which wants to talk to the moment with the president as you can see the reaction on the stock exchange is. actually for. what the e.c.b. is doing is only bringing defaults closer is forcing e.u. states to slash spending less money going in to create jobs and build things when really the only way out of this crisis is for the countries themselves to grow out of it with their economies which means putting more and spending more on the economy and creating new jobs now barack obama has consulted with the heads of spain and italy which are the latest countries to join this euro storm now economist warned that the united states has a common problem with the eurozone they both have unsustainable bets with no real plan b. and

strong income growth something that the european union doesn't have. that's something that bodes well for the indian economy there are other things as well if there's a recession in the world as is being talked about that's going to reduce the price of oil into imports a lot of oil so that's going to reduce its import bill there are other factors if there's an expected depreciation in the value of the dollar in other words of the dollar weakens and if india's rupee therefore strengthens views of you the dollar it's important it will go down as well so on the import side in terms of oil bad bodes well for india in the short term the risk is somehow whether india can finance its current account deficit because of the general climate of risk aversion in the economy if investors are less willing to invest in emerging markets how does india continue to finance its current account deficit asian markets have recovered around how their overnight losses by the close what's behind this climb. part of the initial selloff was was panic and i think the panic respon

heads for sixty plus years and the next head is likely to be european as well i mean that's clearly. the fact that america which has less than five percent of the world's population has a veto while the i.m.f. does is clearly undemocratic but also in other ways so for example one reason politicians really like the i.m.f. is that it is often unable to them to. abdicate responsibility for austerity so in other words if they screw up and there are problems with their economy or even if there are problems which are not of their own making rather than take the blame for it they bring in the i.m.f. and they can say well if the i.m.f. is imposing austerity it's not really my fault i would really like to do it so it's a way of bypassing the democratic debate and the democratic process ok jeffrey in cambridge would you agree with i mean i mean just from a purely democratic point of view daniel's got a pretty good point. well i would probably come out on the bottom line the same the same place which is i think it's time for a candidate from emerging markets but i disagree completely about the

why do i point that the europeans? i point that the europeans because they have violent trysts at stake in libya and the united states does not. -- they have vital interests at stake in libya and the united states does not. libya is connected by a liberal umbilical gas pipelines to europe. there are european oil and gas supplies at stake. there is the risk of libyan migration if things really go to hell in a handbasket. there is the risk of libyan migration which should concern the europeans, which is not such a concern to the united states. so i do believe in all of what i am going to talk about now. i believe the europeans should play a leading role and the american role is to get the europeans to stand up to their proper role. we did this somewhat successfully with the military effort. i have not seen the same kind of success yet with the civilian effort. looking at the longer-term, libyans are going to want rule of law, at least in terms, i'm going to keep myself in a relatively benign scenario. this is a long-term

european stock markets are diving out the wall street hits a low not seen since two thousand and eight panic investors abandoned global stocks . and as the u.s. credit downgrade triggered freefall on international markets india claims it's a car that he could actually benefit from the situation. is three pm in moscow this is r.t. coming to you live from us now with our top story this hour buildings on fire windows smashed and shops ransacked these are the scenes devastating the streets of london police officers and their thousands are deployed to tackle the wall that's next that's now spreading to other cities the prime minister has flown back from his family holiday and is in emergency talks to decide how to deal with the crisis fourteen people have been injured with police making over four hundred and fifty arrests since saturday emergency services have been pushed beyond their limits with london fire brigade saying it's face it the busiest night in recent history argues or emmett is keeping a close eye on the situation. london's burning rises and police take over the capital for a g

discord over closer european harmony france and germany a unified economic front to save the struggling hero while investors are left unimpressed with. the stuff for twelve noon here in the russian capital watching r.t. however the british inquiry into its agents use of torture overseas has been slammed before it had a chance to get started it was revealed that britain was prepared to use harsh interrogation if the potential information that was gained was considered important enough about flood human rights groups to boycott the inquiry saying it lacks credibility as a lawyer and that reports. walking a tightrope of pay. first it's emerged that's how britain security agencies were encouraged to decide when to talk terror suspects. held ground in afghanistan and in guantanamo bay between two thousand and two and two thousand and five he says he was tortured and accuses the u.k. of being complicit in that torture only now is the level of the official complicity being revealed i am completely one hundred percent sure but i would not have gone to guantanamo autoblog wrong headed papin coul

from this country france germany to a european institution and that's what why. that's why it's going to but we all need. to get driver more. away to think about europe and then probably. part of the. case germany would not. really be the chief we have two things because we know it's not. if we all go together in the same way you feel it best to thank you so much i'm sorry about the some problems there but did manage to get a conversation together thank you so much indeed chief economist at not texas asset management joining us live in paris thank you. well the european central bank has announced it spent an unprecedented twenty two billion euros in just one week the money went to prop up the shaking economies of italy and spain but it's all going to reports public faith in the ailing euro may already be beyond a quick fix. some work to live others live to work hockey market combines the two today he and his nephew run the picture frame shop set up by hawking grandfather almost a century ago but the family firm is in a rough spot. like all in spain my business ha

the most opposition came from the european commission. they said it is good that germany and france called for more coordination in economic policies, but they were critical when it came to the joint economic governance. how can it work if there are only two meetings per year schedule? how can it work if none of the member states actually wants to hand over power to the european level? the other problematic part of financial transactions -- it will be difficult to convince great britain to join the idea. i think the ideas were well accepted. there is a chance that next summer they will be accepted. all those ideas were in the discussions before. many people have already approved the ideas in general. i think it is likely they will adopted. >> let us go straight to monica with a look at inflation in the eurozone. >> inflation has fallen slightly in the 17 eurozone countries. in july, the inflation rate was 2.5%. that is 0.2% less than in the previous month. the decline in inflation follow signs of slower global growth. prices surged on the

and european stocks are volatile following the biggest slump in the u.s. for years amid fears the downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. but from our headquarters in central moscow you're watching our team with me and he said now wait it's four pm here in the russian capital one pm in london where the random violence which is gripped the british capital for three days spread like fever across the u.k. overnight leaving a trail of destruction smashed windows looted shops and thousands of cars on fire in a number of cities all sparked from what was initially a peaceful protest over a police shooting in south london bennett is following the story. there's no guarantee things won't flare up again tonight like they have done the last three nights because last night certainly in several areas of london the police simply didn't have any control whatsoever the word to describe it is lawless it was complete mayhem in places like ealing in west london clapham in southwestern croydon in the southeast where it wa

the cell mate claims to it -- may create belgian and european unity. the king is a powerful symbol in the divided nation. >> this is a popular tourist destination and many people believe that the king is the only thing holding their country together. >> he is more important than before, the only person who is still there, in contrast to the government, which we do not even have. >> the king called on lawmakers to put their differences behind them and to form a government. he also had a message for the people. >> the people must not only remind their representatives to make brave and necessary decisions, they must also endeavored to create harmony in society >> they are doing just this. their web site aims to bridge the cultural and linguistic divide between the flemish and the walloons. >> we wanted something that was not critical, something constructive for society that was not political. we wanted to show people that they can and want to live together. >> the say their web site is not about preserving the unity of the country, they just want people t

especially for the europeans.n indication of how big this crisis is, not one but two conference call for the g-7. france, germany, the united kingdom, japan, u.s., candada, they put out a vaguely worded statement promising coordinated action to support financial markets, financial stability, economic growth. officials from the g-20 have been talking. but overall, there is a growing anxiety. richard touched on it a short time ago about what the downgrade might mean for europe. especially for the countries which have a high level of sovereign debt. we keep talking about spain and italy. they're ones who are particularly in the firing line of the bond markets right now. what we saw last week is that concern over their position pushed up their costs of borrowing. essentially if you have a bad credit history or a bad credit rating, it costs you more to get a house or a car, the same is true if you're a government. that's what's happening to italy and spain right now. that was one of the big reasons why there was such a

we can be hopeful that the european economy will just for. there in the summer and into an economic upswing do you often. how do you view the plan of the european central bank buying government wrong spanish and italian government bonds is that going to work. yes i think it's going to work it's shows already signs of working and i think it was a very helpful measure in restoring of confidence because what we have seen before the weekend was that confidence was very very low due to the downgrading of the u.s. economy due to the bad outlook on the business cycle and so it was necessary that. said ok we want to restore confidence in order to achieve that we will buy some boards of of italian of the italian and spanish economy i do think the eurozone will be able to avoid bailing out another member. well we're not bailing out members we just giving them money can restore the economy and find a track back to competitiveness. being charged interest rates on that so presently all the countries we get money out of the euro years are found make some p

european leaders and the u.s. issues strong statements calling syria's president assad to step down just as he promises a halt to all domestic military operations and the u.n. these said to send in a humanitarian mission mission to assess the extent of.

amongst the europeans and between the europeans and the americans on the sovereign debt crisis in europe there are going to be discussions on the present the managing director of the i.m.f. that probably will be settled over the next couple of days effectively these are important issues which are not really appearing on the agenda but they'll certainly be dominating the margins of the meetings and that probably is where journalists and other people will look for the most important outcome of the meeting i doubt very much if they're really going to commit large sums of money to support the arab countries of the middle east and north africa i'd like to think that they would but i think they're quite serious differences of opinion that i'm trying to commit billions of dollars to support tunisia or wherever it is i think is probably a step too far at this stage pollen fine go to you know i'm not going to ask anyone here to be a middle east expert here but i think it's quite interesting in this picture of aid for a tunisian egypt and you know a lot of people that are critical of western invol

some think it would take a european version of tarp to put concerns to rest. >> we need the european leaders to come to a final decision and quickly push through measures so their existing bailout fund can be used to support not just governments but banks. >> reporter: but there is some good news-- europe is just one of many factors influencing the market's direction. some strategists think stocks can move higher, as long as the european situation doesn't get worse. >> if it wasn't for the fear that is out there, stocks would be much higher. even taking into account a certain amount of an economic slowdown, stocks are very undervalued at these levels. >> reporter: that may be true, but even he doesn't expect a major stock market rally soon. kaufman predicts the market will retest its lows before investors become convinced it's time to buy. erika miller, "nightly business report," new york. >> susie: late today, a european market regulator announced a ban on short selling of financial stocks in several countries. effective tomorrow, short selling is banned in france, belgium, italy an

and european stocks tumble following the biggest slump in the u.s. for years plunges calls by fears the downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. up next spot my talks to the winner of the twenty ten world press photo competition today's cast jodi bieber.

we're there all week long now european stocks plummeted on news that economic growth across the u.s. has stalled all as france and germany meet to work out a way to end the debt crisis sweeping the eurozone but europe's two financial powerhouses are at a dead end even before the negotiations have started but lynn is refusing to throw more money at the crisis daniel bushell reports from brussels the magic pill that's supposed to spread the euro across the european union is something called euro bonds that in effect would transfer northern european stability to the southern states it would create a single. people could boy into the suppose it would begin to calm investors to show that there is a united front and the stronger states need solidarity with the weaker than periphery countries like greece portugal also spain and italy now germany for reasons doesn't want to discuss it particularly at the moment it doesn't want to lose its hold the reputation as the locals. by signing up to this and it has actually said that euro bonds will play no role in the talks today some investors a bit

people the european finance ministry is the european central bank and the european commission they took on these socialize all these bad debts they if you listen clean or explicitly current keep all the banks and so now the banks are bigger they are sicker they have bigger exposures so when you have another crisis it's going to be worse this is what happens when you kick the can down the road this is the position we're in now and our system of course as you know are transparent is now more regulated thank god frank i have one good example of that and i think you know not the only way that's out there saying this right now and yet we still have all the officials saying a very good a way that they have plans and they'll unveil it at some point in time and i think that they're worried right now because i want to thank you for joining us tonight. now when we return we have our when fate isn't of use that it i read it also ahead defense cuts that deal calls for commuters in the d.o.d.'s budget and now there's a threat of larger cuts this fall the will to know is very industrial complex ever

and the europeans are saying right now. the final bell on wall street has see is u.s. and e.u. markets and on a low after a volatile week of trading investor confidence has been shaken amid the slow pace of market recovery and european debt this comes as america's three major banks warn of the possibility of a looming global recession artie's marina porton i has more from new york. the bad forecast the most recent one is coming from morgan stanley and goldman sachs and j.p. morgan chase all three banks in the past day have released reports slashing their expectations for u.s. and global growth now morgan stanley believes that the global economy is hovering close to a recession j.p. morgan chase says the risk of recession has been elevated now this news of course will only cause investors to lose even more confidence and trust in the markets in the u.s. here and around the world we've been seeing that play out with all the volatility hitting the markets around the world and of course the debt crisis in europe is causing great concern for investors all the debt drama and debate t

of course the green and the liberal european parliament has been very hysterical about it. i can understand some of their criticisms but on the other hand in this country we have a long history of where people from outside try to tell us what to do for a long time it was for moscow for fifty years now we have people. coming around from brussels from washington rating hungary and freedom of press freedom of speech and trying to tell us what kind of rules are the best for hungary and we had in this country in the past twenty years during the history of hungary and democracy so to speak previous media law which was very far from perfect. and there are a lot of instances where the freedom of speech has been very seriously attacked on the the on the the embroil of this media law that we never heard anybody say anything in europe or outside of europe criticizing this media law so i think that we have to be very careful when we when we judge this of course we have our valid criticisms against this law. to say about the ways in which the law itself was introduced had some people sa

the people of europe between polls in opinion polls they say that they don't it won't close the european integration angela merkel the chancellor of germany says they showed great courage to do this but they dismissed the use of your abortions which many have said would be the solution agreed eventually they said that you are not a miracle they're not a cure and france and germany won't guarantee other countries that so they refused to bail out the rising problems in countries like italy and spain they also denounce the rumors and speculation and said they'd fight against this the rumors that they say are trying to bring down the euro so there will be a single government they'll elect the president be very official attacks on financial transactions was also announced. that the purpose was to home annoys economies and taxes across europe so a very wide ranging proposals on offer here today. dr raymond shares zada professor of business and international affairs at the george washington university says the decisions taken at the meeting reflect only the political aspirations of german and f