to resign saying president assad has to be given time to implement reforms meanwhile the european investment bank suspends assistance. for an embargo on syrian oil. global markets close in the red after a roller coaster week with major american banks warning a new global recession. if the crisis is not solved meanwhile investor confidence is shaken continue to look for a way to repay the. predator.

to resign saying president assad has to be given time to implement reforms meanwhile the european investment bank suspends assistance to damascus and the e.u. draft plans for an embargo on syrian oil. global markets close in the red after a roller coaster week with major american banks warning a new global recession is on the horizon if the fiscal crisis is not solved meanwhile investor confidence is shaken as the world leaders continue to look for a way to repay their crippling debt burden. the pacific predator shark attack on russia's eastern seaboard has experts by the rare incident and while local authorities are offering a bounty for the fish. demanding a refund.

reforms meanwhile the european investment bank suspends assistance . for an embargo on syrian oil. global markets close in the red. week with major banks warning of a global recession on the horizon a fiscal crisis. meanwhile investor confidence is shaky world leaders continue to look for a way to repay their crippling debt. pacific predator. experts baffled by the rare incident and while local authorities are offering a bounty for the fish some tourist site.

investment banking operations. those cuts come as rbs completes its integration of the dutch lender abm amro. >>> andrew, layoffs among european investment banks it seems at the moment are coming at quite an alarming rate. earlier this week, hsbc said it would be slashing no less than 30,000 jobs over the next two or three years to come. and then barclays says it will be cutting 3,000 jobs by the end of the year and ubs is going to lay off 5,000 stof over the years to come. and credit suisse, about 2,000 jobs. that amounts to 4% of the work force and societe generale said it will be missing its forecast thanks to a $500 million writedown on sovereign debt. the stock lost more than 8% and was temporarily suspended from trade yesterday. as you can see, there's quite a bit of turmoil in the banking sector. the question is how worried should we be and how likely is it we might even be in for another banking collapse like the one we saw during the global financial crisis a couple years ago? joseph stiglet said the banking sector lacked sufficient capital to ensure it against another big disaster. he told a u.s. senate banking commi

concerns over the impact of worsening financial health at european banks are also weighing on the stock price. focus is whether the investment in bank of america will be enough to ease worries over the financial systems in the u.s. and europe. >> let's check on the markets here in tokyo. the dow jones declined after three days of gains ahead of a key speech by federal reserve chairman later today in jackson hole, wyoming. we are going to cross over now to the tokyo stock exchange to see how stocks are changing this friday morning. good morning. we had consumer prices out for japan. how are markets reacting? >> good morning to you, ai. showing consumer price index in july excluding fresh food was up 0.1% from a year earlier. both indexes, nikkei and topix in the negative. not a major move, but following on with the dow and nasdaq and s&p 500. as you mentioned there, a lot of focus is going to be on fed chairman bene bernanke's speech later today at jackson hole, wyoming, in front of a lot of central bankers and policy makers. we did see a little bit of selling in the u.s. ahead of that event. not enough to wipe out the gains

european banks. and other news direct investments in russia in the last quarter sora shot to climb compared to the end of last year at thirteen billion dollars the total was twenty percent down on the previous over these central banks because sure on the allies basis the best month was up finally to facts. and that wraps up the business bulletin will stories you can log onto our website or to dot com slash business. feel. limited. to. the east so. the beasts. feel. sick next.

banks are owned money by european sovereign nations . if they are looking shaky, so do the banks. hot european money comes straight over here invests in our downgraded debt and pushing our interest rates down to historical lows. i think you are going to see 3 and half percent 30 year fixed rate mortgages within a couple of weeks. >> bret: thank you for your insight. now to politicings. number one issue on the campaign trial. joining us from austin, texas. karl rove. he founded a group to elect as many republicans as party . here in the studio democrat bill burton. he is heading up a group designed to put democrats in office. bill, start with you. economist jeffrey sacks said this week. we are almost three years in the administration and there's never been a plan and the people feel he didn't lead. we have no agreements and leadership . i think it is odd that the vacation is on vacation . it is no joke. it is not just a august up and down little blip but a serious situation. this is not a republican candidate or lawmaker, but it is an economist that supported president obama. is this a problem for the president on vacation. >> you d

value of the deal still has to be accepted by the shareholders of the east european bank and another new so direct investment in russia in the first quarter saw a shop decline compared to the end of last year at thirteen billion dollars the total was twenty percent down on the previous quarter although the central bank statements showed that so on than otherwise basis investment was up one or two thirds. but threats all the business bulletins of course will bring you more on this huge deal ross nafta and u.s. energy giant x. mobile have just struck but so you can always log on to a website for more analysis that starts you dot com slash prices. and discoveries. communicate with the wind.

european bank shares are among those taking a battering a meeting between the french and german leaders failed to ease worries after plans for a new economic system on the continent were discussed me tell investment bank morgan stanley's put a police forecast on american and european growth saying both were quote dangerously close to recession now political scientist dr jason johnson told us he thinks the u.s. might hit another devastating downturn in less investors reassured. the companies that have lost start value orbital last two days or two these companies aren't magically not working anymore it's just that people's confidence is at an all time low so if confidence these what we will see another recession of confidence improves the economy the only problem with that is when someone actually wants to call it most of the u.s. right now is owned by china china is not about to reclaim the state of virginia they're not about to reclaim new york city by calling in their debts they primarily want to see america so he just leashing to be passed united states if the president can sort some control and there's still some confidence in our future economy. inertia and inability right now to get the econ

european banks. shift to some other news direct investment in russia in the first quarter saw a sharp decline compared to the end of last year at thirteen billion dollars the total was twenty percent down on the previous quarter and although the central banks show that on an annualized basis investment was up by a new two thirds. that wraps up the business bought in from. stores you can had told website are two dot com slash business or join me for another business updates in the us and wants to. feel. the urge. to. do so.

money markets are holding a lot of exposure to the european banks that have exposure to european sovereign vet. >> money market investment funds. >> and we are learning here, every time the fed interest rates too low for too long. money markets start to go to the other places where there is more risk where there is more yield. if they couldn't get return in the u.s., they have gone to europe and they have bought french banks that have big exposure to italy and spain and a lot of nervousness about what may happen. >> there is something else going on in europe that is very much glossed over in the united states. europe also has had 40 years obese welfare states incredibly generous entitlement programs and the weight of that system is kind of collapsing on collective europe and that should be a warning signal in my opinion for the united states. >> but the fact of the matter, the concern is the exposure that u.s. money market funds might have to that collapse. >> the federal reserve would extend near zero interest policy for two years and to the middle of 2013 to reassure interest rates are not going up any time soon, is th

loufr, jean-claude trichet and the european bank had every opportunity and investment to preserve the euro. those who want to leave it, the italians, maybe the greek, we don't want to deal with it. the fact is the moment jean-claude treesh heir wajea jean-claude trichet walks into the room and will buy every greek, italian bond, much like ben bernanke relieved our problems in 2008, trichet is eventually do the same thing. no one wants to buy our national debt. the central bank does but it does go to the actual problem, hiding in treasureries or resolution in europe we are not getting investment, not getting production and not getting employment in western europe or in north america. >> all right, well, first of all, i think the bottom line is, that the story we were, have been told about our debt and our deficit as being problematic is a lie. i mean -- >> how so? >> the fact of 9 matter is -- >> a lie it's a problem or what it's origins are? >> a lie insofar as we were told we need to get the debt and deficit down because we won't get loans. >> a complete lie. with a reserve currency.

if it was a bipartisan effort to encourage investment and capital formation which would lead to jobs. or the european central bank deciding to increase the sheet to solve some of problems there. either of those would get me more excited than a qe3. >> susie: let me go back to the debt deal and the credit rating. one of the credit rating agencies says it will set a path. it's fine on came the u.s.'s triple a credit rating. what do you think s&p and moody, what do you think they will do and what's it mean to the market. >> i think they will be watching like all of us with uncertainty like okay what are they going to do with this remaining trillion and-a-half plus. where are those cuts going to come from. so hopefully they'll give the u.s. the benefit of the doubt until we get that theory but that's not a foregone conclusion. they were asking for four trillion. we're not going to get to four this round. if there's a debt down grade, i don't think that's the end of the world. so many of us have been talking bit, preparing for it and perhaps we're already trading if that's the case. >> susie: that's a reassuring way t

market jitters as a more active solution was expected meanwhile investment bank morgan stanley put a bleak forecast on american and european growth the saying that both were dangerously close to recession patrick meant for an economics professor at the cardiff business school believes that hieron material prices and financial uncertainty is putting the brakes on. those being inflation in the world economy and there's been quite a tightening of monetary policy around the world especially in china and india and some of the other emerging markets and that has led to a fall back in growth in those countries and elsewhere and so the markets are worried about slow growth but really they shouldn't be too surprised because with the situation of raw material prices so high oil prices so high there is a big factor of a slowdown in the world economy because obviously a lot of uncertainty about the eurozone and what will happen the. close of the eurozone summit wasn't very conclusive all helpful in that respect so that's a great deal of uncertainty which is worrying the markets about the situation of buying seen europe i don't think t

invest in quality debt instruments. bonds that pay interest. >> reporter: analysts said traders are shifting out of the bonds and european banks are snapping up u.s. debt to shore up for a finance crisis but there is still debate on whether the credit rating will have an effect. jade hernandez, ktvu channel 2 news. >> thank you. >>> we have more details now on what is behind the sell off and more perspective on the situation. ktvu's tom vacar joins us live in the news room. we expected the was going to be a sell off but do you think this big of a sell off was a surprise? >> reporter: no. if it happened friday, standard and poor's lowered the rating friday after the market closed it would have been bigger on friday so people had time to think about this. when you are down more than 500 points for, a moment we are down 600 points, tells you the confidence in the market is not there. what is that about? that big deal everybody was talking about a week ago to do it the debt ceiling, it is so unimpressive and kicks the can down the road. that has not impressed the market at all and then we have the problem in europe, with the debts of spain and it

invest. europe's top bank is the continent's going through the worst financial crisis since world war two european markets sudden uncertain day to day despite the central bank's move to buy bonds from the region's crippled economy. next the kaiser report is on r.t. . for the full story we've got. the biggest issues get a human voice face to face with the news makers.

eurozone debt continues to wreak havoc with investments fearing italy and spain with the next economies to fail despite president obama and european central banks trying to reassure the markets. three years after georges a time of the setting of remembrance ceremonies are held for the victims of the.

zone debt continues to wreak havoc with invested spearing italy and spain could be the next economies to fail this despite president obama and european central banksrying to reassure them all. three years after georgia has a time i can solve to set a remembrance ceremonies that.

european sovereign nations. if they are looking shaky, so, too, do the banks. meanwhile on the positive side of the ledger, hot european money running away from the anxiety in europe comes straight over here, invests oddly enough in our downgraded debt. i think you will see 3.5%, 30 year fixed rate mortgages within a couple of weeks. >> bret: interesting to watch. stuart, thank you very much for your insights. now, to politics and the number one issue out on the campaign trail. the struggling economy. joining us from austin texas, former bush senior advisor karl rove. he founded the group you american cross roads whose goal it toss elect as many republicans in 2012 as possible. and here with us in studio bill burton. he heads up priorities usa action, a similar group designed to put democrats in office. gentlemen, welcome back to "fox news sunday." bill, let's start with you. economist jeffrey sa sachs whos been a supporter of the president said this week this "we are almost three years into the administration. there has been been a plan. the president didn't lead, he waited. we have no agreements and no leadership and i do think it is pretty odd the president is on vacation right now. norm ally i

the european central bank is taking steps the to try to keep that region's debt crisis from spreading. oil is sliding below $84 a barrel. gold, one of those safe haven investmentshas breached a record $1700 an ounce, trading at around $1708 for $56 gain. many think they have been exp t expecting the downgrade so the impact on the bond market should be small. and it shouldn't force mutual funds to have to sell. people will continue to put money in u.s. treasuries because we're still the safest and most liquid market in the world. on a week that saw the markets fall more than 6% the dow closed up 60 points to 11,444. the nasdaq did lose 23 to 2532. so, we'll have to see what's going to happen today. as of now it looks as if stocks will open to the down side. >> thank you very much. this morning more fallout over an angry tweet directed at a giants pitcher. bruce boche getting into the fray. it started friday after the brawl cleared dugouts during the phillies game. the players fighting after giants reliever ramirez hit a batter in the lower back. radio host tony bruno tweeted gutness giants, bochy is a coward for having his illegal alien pitcher hit a guy since m

investment bank decreased the growth for the u.s. and europe for this year and next. >>and they said, united states and europe are dangerously close to a recession. >> reporter: the european union and the member nations are in deep debt trouble. most of the world's economies are stopping. >> and that was just fear that we are going from a slow growth to no growth to negative growth. >> without exception usually decisions about money made under pressure are bad decisions. >> reporter: financial educator and valerie coalman morris says this is no time to panic. >> the best time to sell is in a rising market. the best time to buy is in a declining market. get your conscious and your stamina together and ride out these ups and downs. >> reporter: even if you don't have a penny in the market golden gate university psychologist said you are impacted. perhaps financially, most certainly psychologically. >> people without monnethe market can see all of this volatility and feel like the world is out of control and safe they are going to cutback on their spending. when that happens then, we all know the economy suffers greatly. >> reporter: if you have $50,thank you in a wide varie

the european central bank is taking steps to try to keep the deb crisis from sledding. gold considered a safe haven investment breached the record $1700 an ounce. theycc1: have said expected the downgrade so the impact should be small as the day carries on. they say people will continue to put money in u.s. treasuries the safest re stillcc1: and most liquid market despite the downgrade. the markets fell more than 16% but the dow closed higher. so anything is possible when the opening bell counseleds. then the closing well rings later on in the day. >> courtney, thank you. >> let's warm things up a little. check the forecast with meteorologist christina loren. >> i don't know if that's necessary. a little dramatic this morning. it's a good thing. we love having you. we're looking good this morning. we have dense fog developing. you can see that from your live picture of the golden gate bridge. so wherever you are headed take it easy out there. probably a good idea to give yourself ample time so you reach your destination without having to rush. in terms of visibility right at the if you are fast you can see fo

that you see in the banks how central is the city of london factor into this max clearly the city of london is very important and i would say the united states that european investment interests have been controlling since the revolutionary war from everything i can tell but you know the other thing i would say is we're talking about a model which is is is not just fraud it's it is the model it's the plan it's the governance model it's the way things are so there's the fissure reality that has law as you and i were brought up to believe it and then we have a system which believes it's above the law i mean i literally had the secretary of hud once say to me look you know i don't have to pay attention why i don't have to be able or i report to a higher moral authority so we have the planet run under a model is our operating on. different set of rules and laws that we believe the law to be now if you look at how much of money's been pulled out of the economy globally whether it's by united states london whatever we're talking about trains the trillions of dollars and you know what i refer to a lot of it in the united states as the black budget but the fundamental quest