but while emergency plate glass sales may be booming, the rest of england and, in fact, all of europe's economy is still in deep trouble. >> fears of looming economic catastrophe in europe. >> a crisis over debt is accelerating throughout the eurozone. >> investors are scrambling stoked largely by fears that italy and spain are teetering on the brink of going broke. >> jon: what? wait! what? (laughter) who are you? the double phone? that's not... who's that... you know, that's clearly... to be fair, not something anybody does on purpose, you know? you know what would be great? if the guy in the double phone is talking to two people and it has nothing to do with stock. (laughter) that's right, the key to turkey is brining. that's right. no, you hang up. (laughter) no, you hang up. of course, there is a way out. but you're not going to like it. >> the one to watch here is really the german index. >> all the eyes are on germany. who's going to save the euro. >> what you are seeing there are worries about transfers of wealth from germany to the other european countries. >> it's all on germany's sho

judy: what followed was an up-and-down stock market driven by deficit concerns, anxiety over europes economy, and some mixed economic news here at home. welcome, jackie, welcome john. but john, let's start with this s&p announcement. with a week of hindsight, any better sense of why they did it? >> fundamentally it was political. standard & poor's early in the spring looked at the amount of deficit reduction that major players were talking about, the simpson commission, the paul ryan budget in the house, what president obama put out. it was about $4 trillion over 10 years. they said ok, that's the benchmark. if they achieve the $4 billion over 10 years, then we'll preserve the triple-a. they were alone in setting that standard. the two other major industries, moody's and fitch did not set that standard. then everyone else seemed to blow with the political winds. people assumed a somewhat more optimistic view, at least they got a deal, we didn't default. standard & poor's said no, look how messy that process was. the interesting thing is the administration was critical of their decision but p

there are first concerned about the house of one of europe's biggest economies. the figures put more pressure on the french government to tackle its budget deficit. our chief economics correspondent reports. >> it was full steam ahead for european markets, but the problems have not gone away. at least for france, who has been in the eye of the storm this week. there was no growth in the second quarter with consumer spending plunging. >> i do not spend a lot of money. i say little bit. >> it is really difficult. >> a stalling economy creates headaches for president sarkozy. he had to break its holiday this week to hold an emergency cabinet meeting. slow growth will hit tax revenues. some investors are concerned about french government debt and questioning its triple-8 rating. -- aaa ratning. the french finance minister told media and your viewers there is no cause for concern. >> i am not stressed, not for a second. i am very confident. >> out there have been worries about the health of french banks after their shares plummeted, regulators have banned the practice

economy. -- europe's largest economies. >> it was full steam ahead today for european markets, but the problems have not gone away. not the least for france, which has been in the eye of the storm next -- this week. there has been no growth in the second quarter. >> i do not spend a lot of money. i save a little bit. >> it is really difficult. it is not good. >> a stalling economy creates headaches for president sarkozy. he had to break his holiday to hold an emergency cabinet meeting. slow growth will hit tax revenues. some investors are concerned about french government debt and questioning the triple-a rating. is 60% of output. the french finance minister told the media there was no cause for concern. >> i am not stressed, not for a second, and i am very confident. >> there have been more is about the health of french banks after their shares plummeted. regulators have banned the practice known as short selling to try to stop speculators making money at a falling bank shares. >> they have a lot of exposure to the countries like greece, ireland, portugal. they have been under the microscope.

power for for europe and other thing time we need some control on the economy situation we need probably a kind of calm feel that could. think about the budget things in different countries and in europe to to avoid this dive a chance we saw in two thousand and eight nine and ten in europe so it has to be a real economy economic institution but the political things to you know to be able to manage europe and give a more power to europe and got kind of you were put on government so if you're talking about a centralized fiscal control system whereby each member state is controlled centrally by let's say in germany over the way they tax and the way that they spend could that control indeed come from germany currently the meeting economy although obviously we're not still today but where should that centralized power be coming from brussels or germany. well that's that's what it's complicated of the moment is to know. how to build things in the in europe because we see with the meeting today it's a meeting between. america but i think time we don't have anything about the european commission

wrong there are no capital believes that the focus will shift back to the troubled state of europe's economy. emerging markets will be disappointed by what happened on friday i really enjoyed q e two you know it's had a fantastic period of performance off the q.e. two i think now markets will start to emerging markets will start to focus on what's happening in europe actually because that is really where the risk is at the moment russia's stock markets will probably be pretty much flat i don't expect it to be any reaction we already had a reaction on friday evening and it was fairly muted so you know there'll be looking for leadership again how it's all of europe. russia retailers don't want help from foreign giants to develop the russian markets country's leading chains x five unlike any tech post that second quarter results showing a thirty percent increase in net income x. five retail group says it wants to cash in on the russian market potential itself. she will bring pretty. retail chains hold less than thirty percent of the market all in developed countries this figure reaches eighty p

military establishment out of their taxes i think there would be a big change public opinion when europe's economy also took a knock this week with the big kate is being torn in deeper needing friendship bank for three thousand one hundred of us for the nih that is solvent say with at risk investors remained unconvinced the country's finances all thought as economy watch the kind that many of the french banking system when to pull three. the french banks are loaded with toxic derivatives that were sold to them by american investment banks and the american investment banks plus the rating agencies plus the hedge funds are now attacking these french banks they know where the bodies are buried and they're using the weapons that they sold them to attack them for society generale and b.n.p. and credit agricole are insolvent their balance sheets are six to ten times bigger in terms of the debt that they carry than they could possibly service but it's carried on the shadow banking system they don't report this debt but the insiders around the world who wield the weapons of mass financial destruction are

if their economies, and that means most of europe's economies start falling, our economy starts fallingu add on top of that a real disconnect in the united states about what's happening with good corporate earnings, and yet a view that we're going into our own slowdown, and you can understand how every single day, one day it's up and unday it's down. >> woodruff: that's a lot to worry about. catherine mann, do you share andrew's analysis? >> basically i think that's a very good analysis. the only thing i would add to the market behavior is i think there is a lot of program trading that is leading to some of the gyrations. it's not just people who are waking up in the morning and say oh, i see the headline and i should trade, either buy or sell. i think some of it is being driven by stop loss orders and buy orders when it hits the floor. and that's why it's gyrating so much at the ups and downs. with regard to europe, one of the feels i think is most interesting about the situation with regard to europe is that there's not any new news. if anything, we got new news about the state of our

apart from germany, which remains a powerhouse, europe's economies range from weak to dangerously crippled by debt, with some investors worried that spain and italy could actually default, sending shockwaves across the atlantic. >> so europe sneezes, america catches a cold? >> that's absolutely right, i'm afraid. this is the first time we've actually seen the u.s. be more than-- in fact, deeply concerned about what's going on in-- what's going on in europe. and the european sovereign debt crisis is, indeed, very, very serious. >> reporter: so serious, that both the french and german leaders spoke to president obama today. they're hoping that a united political front that looks serious about tackling that debt will restore some confidence to the markets before they open on monday. scott. >> pelley: thank you, liz. we saw something striking today about unemployment here in the u.s. look at how much longer it is lasting. this chart starts in 1948 and tracks the number of weeks the average american was unemployed. it is now way up above the historic average, more than 40 weeks. at the washingt

pace in the first selloff sentiment was reinforced by news from europe that the region sovereign debt is in coughing two of its largest economies spain and italy. and that brings us to the markets gold is edging up as concerns of the u.s. and europe zone economies sending investors running to safe haven the precious metals but right now it's adding over seven dollars per ounce while silver is adding twenty cents. for prices to make this hour where it's trading at lower levels it lost around five dollars on thursday again it's the wobbles in the us economic predictions that are impacting the future demand for crude like sweet is currently trading at eighty five dollars per barrel. brant is one hundred ten dollars a barrel. asian markets a shot means a red rag to the losses on wall street japan's nikkei is at its lowest since it's both. energy stocks are among the worst performers there will be impacts down over seven percent and hong kong's hang seng is almost five percent in the red with exporters and financial problems among them a losers. here in moscow markets get going just over a couple of hours' time but the first paper o

economies were weakening. that's changed today. what is going on in europe's biggest economy. let's go to diane live in berlin. it was 0.1% growth, diana. expected to be at least half a percent growth. what's happened? >> well, the office has put it down to reduction in construction investment, reduction in consumption, private households, also more imports as opposed to exports. yeah, a surprising slowdown in growth for a country that as you say has been a star performer really for the last couple of years through the 2008 crisis and through the whole of the euro zone debt crisis. it is of course, going to be of huge concern to the market and to all those who fear the possibility of a double-dip recession seeing germany, europe's largest economy slowing down like this, especially after those french gdp numbers which essentially showed a flat lining also. andrew? >> is this inevitable given that germany is such a strong exporter and i guess it's key export market like france are slowing quite dramatically now, diana? >> well, yes. i mean, france is one of its biggest export pa

growth the growth of its economy skidded to a halt just point one percent in the second three months of this year which suggests that the euro debt crisis is even bringing down europe's biggest economy let's get some more insight from paris now political science professor peter again and joins me now live many thanks for being with us here now back in july president sarkozy and chancellor merkel working out a debt deal and ahead of the gear i saw it but now they're doing it again are these two alone in deciding the fate of the seventeen year as a nation. traditionally france and germany. they were the leaders in europe but you must also take into account considerations in france for the presidential election basically the german chancellor already said she was not willing to talk about. or a bunch so the meeting is in large part p.r. for the presidential elections in france if you don't discuss euro bonds or solidarity within europe it's not a crucial meeting it's it's just you know no but unity for a third of our plan for sound bites but if you don't tackle the issue that stiglitz or even soros mentioned solidarity within europe the meeting itself is a bit pointless

a bandwagon a rolls towards europe's largest economy italy's debt costs while spain also struggles to stay on track. the un's most powerful body condemns syria's deepening bob heeding russia's call to rule out foreign intervention and urging internal dialogue it comes as protesters in syria claim they're being massacred by government forces. would be suicide bomber turned a peace activist party meets a palestinian woman who's a failed mission against israel changed perception on life and justice. a very warm welcome to see that this is the life for moscow with me showing it. is not knocking at the door of some of europe's biggest economies but investors now turning on italy and spain as the default looms large italy avoided the worst of the boring bubble production there remains sluggish and uncompetitive causing bond interest to a euro high spain massively from a slump in its construction industry and it's going to get hard to heal the wound both now face runaway costs to the debt which they can ill afford and massive cuts are being touted as one of the few solutions they have. disco

europe's economy or thing to cannot this week with the pay hit is being torn in the eating french banks as if it was the poor for the now either with the rest investors or made the country finance with us. economy what about the french banking system the poor three. the french banks are loaded with toxic derivatives that were sold to them by american investment banks and the american investment banks plus the rating agencies plus the hedge funds are now attacking these french banks they know where the bodies are buried and they're using the weapons that they sold them to attack them decided generale and b. and b. and credit agricole are insolvent their balance sheets are six to ten times bigger in terms of the debt that they carry than they could possibly service but it's carried on the shadow banking system they don't report this debt but the insiders around the world who wield the weapons of mass financial destruction are tacking there to force these unrealized debts onto their balance sheet to force these properties into delinquency into foreclosure because they are going to rate bil

bushell is monitoring the fallout in hostels so dad you know what representable this have for europe's economy. we used downgraded trust in the rating agencies to junk status. standard and poor's the agency admitted a two trillion dollar miscalculation when deciding this downgrade they claim to have the world's best minds working for them that triggered an emergency meeting in the middle of the night with european partners to decide whether to go ahead with this downgrade or not in the event they did that hasn't really surprised people here because most know that america's has had unsustainable that for many years now well everyone apart from the rating agencies it seems and the day before firms collapsed in the credit crunch they still had aaa ratings on those companies now that made the agencies lose their reputation but people lost their whole savings and triggered the world recession that followed. the rules of furious about s. and p's double standards they held with the white house before this decision they briefed them about it when it would take place what would happen and that's allowe

and europe's economy also took a knock this week with the big hitters being drawn in deeper leading french banks society was forced to deny that its solvency was at risk but investors remain unconvinced that the country's finances are solid r.c. economy watch imax kaiser believes the french are banking system will not pull through. the french banks are loaded with toxic the rivet of that were sold to them by american investment banks and the american investment banks plus the rating agencies plus the hedge funds are now attacking these french banks they know where the bodies are buried and they're using the weapons that they sold them to attack them for siding generale and b.n.p. and credit agricole are insolvent their balance sheets are six to ten times bigger in terms of the debt that they carry than they could possibly service but it's carried on the shadow banking system they don't report this that but the insiders around the world who wield the weapons of mass financial destruction are taxing them to force these unrealized debts onto their balance sheet to force these companies into t

recognize the signs of impending trouble you know they the impose austerity economics in europe and those economies stagnate riots break out across europe they oppose austerity economics in great britain that economy goes into the tank and riots break out there and what are we talking about in this country how much more austerity economics we're going to impose here and so i think you've got a mad situation where people aren't watching the danger signs and in fact even though they're headed toward a brick wall they seem determined to press down on the accelerator maybe for the short term economic gains or political gains i don't really know but i think you know i think there are warning signs all around us you know when we talk about this gap between rich and poor i always think it's interesting to look at the economy where the people making the laws live now i'm talking of course about right live here in washington d.c. where it's far more difficult to feel the effects of the economic downturn when so many here do have the majority of course working for the u.s. government but i want to put up the