a couple of countries, france, italy, spain, belgium, they have all band short selling. that falls short gains in bank stocks recently. the french banks have been the worst affected by the volatility. joining me now is our next guest to talk more about that. short-selling is the act of trying to benefit from price wars. the focus is on financial stocks. do you think this will help stem some of the volatility? >> it does appear like the last row of the dice. things are getting out of hand. when it is well directed, as this is, to a specific financial spock -- stocks, this sort of measure does work. especially at times like this when you sometimes have irrational selling. >> some analysts have suggested that it does not work. it seemed to suggest that there is something fundamentally wrong with the market. >> in the u.s. case, close to 800 financial stocks were included in the u.s. short selling band. it appeared not to have worked very well because it's the crisis got a lot worse. this has come at a more opportune time. i think this will be a little more effective. the fu

resorted to methods unseen since the two thousand and eight crisis to try and calm markets france italy spain and belgium of decided to ban short selling on the shares of banks and other financial companies that practices investors selling stocks that are expected to fall in price before buying them back and keeping the difference short selling is being blamed for increasing recent market volatility meanwhile france has been battling speculation it was going to lose its aaa school which was finally reaffirmed by ratings jobs on wednesday investors however remain unconvinced the country's finances a solid enough recent figures show stagnation in growth while the banking sector has been battling health rumors. from the european school of management and technology says it's the banks that are once again being offered protection. part of these rescue managed measures have been taken to to rescue the banking system. especially with the banks in southern europe and i think this needs to be addressed but overall we also have this kind of political situation where it has been very convenient for gove

essentially france, italy, spain and belgium have banned short selling on the shares of banks and financial companies following sharp losses in bank stocks in recent days, especially in france. the french bank de generale had been the worst affected by the volatility. with me now is the chief strategist here in singapore. tell us about short-selling. will this work to stem the volatility we've been seeing in the markets? >> short-selling typically has short-term impact but over the next weeks you'll see a reverse of trend and see weakness in european bank stocks persisting and the reason is simple, it's the fact that a lot of sovereigns around europe are finding difficulties in balancing their budgets. they have lots of debt that is owned by these banks, therefore, there's a lot of uncertainty about how that debt will perform. the net result has been that the borrowing costs for banks as well as the man on the street is rising and this could mean that economic growth will suffer. that, i think, is the real problem here. the outlook for growth in europe and even in the united states is looki

europe are trying to reinforce some calm on the markets by banning the short selling on banks france italy spain and belgium have banned bets which allow the investors to profit from the fall of the prices of the stocks but similar steps have been taken before in two thousand and eight by the u.k. and the u.s. and back then resulted in a degree of artificial inflation in stock prices on the down side on friday r d a latest economic growth figures from france which is already under scrutiny from ratings agencies due to its high debts and g.d.p. figures aren't helping the situation since they were showing the eurozone second largest economy is stagnant currently there is a lot of talk on the margins of all the weather this volatility is for over multi-stage a downturn or means the market is near the bottom of analysts are saying now it's to wait to sell yet too early to buy so since it's impossible to predict the market's moves perhaps the best thing to do now is do steer clear of the markets. as we heard from you go to a number of european countries have imposed a ban on short selling on banks da

after a week of turmoil in the european financial markets france italy spain and the belgian have decided to ban on short selling on the shares of banks and other financial companies short selling is when traders profit from betting on fall in share prices it is being blamed for increasing the recent market instability let's get some more expert analysis on the situation in europe with young hug and not from the european school of management technology good to see you thank you for joining us today and do you think the new short selling ban will do much to restore market order and confidence in europe or is it possibly a sign of the world of verge of a financial armageddon. you know i think it's probably more of the last i think it shows that the officials are very nervous at the moment and they tried to. break this stone what's barrel that the banks have been into leslie my fear is that we. see some short term improvement in the share prices but as the fundamentals are . seen rather gloomy in the markets i think overall we will see a continued downward trend so overall i think these meas

an effort to stabilize the market for european nations have banned short selling on banks france italy spain and belgium are prohibited bets which allow investors to profit from falls on the price of financial stocks the move follows high volatility in the sector amid fears about their exposure to euro zone government debt david jones market strategist at a.g. index believes this will only provide short term relief. and that's helping the markets today we've got for example here in london barclays is one of the top prizes in the dice and we are seeing strength in banks but it is like history repeating itself we've got a similar levels of volatility we had three years ago in september two thousand and eight there was widespread short selling bans but over the next month financial markets still dropped another fifteen to twenty percent so again traders in europe at least so far are back convinced the short selling bans necessary to change anything. second how the markets are doing right now in the u.s. they are positive that solved through a strong recovery on day two and data sharing consumer

meanwhile after a week of turmoil on the european financial markets france italy spain then belgium decided to ban on the shares of banks and other financial companies short selling is when traders profit from betting on falls and share prices well it's been blamed for increasing recent market instability leaders of the year is the biggest economies germany and france also in else they'll meet next week to discuss solutions to europe's financial difficulties. but it's also been a turbulent we've for the russian markets as they remain a volatile russian songs off of their worst week in three years as investors with drew from risky emerging markets on news of the u.s. downgrade and concern over the european debt crisis let's get some more on the cross live to our business desk where marie is standing by for us so we're into the trading now are we seeing where all blag all were simple i got the moment but it's all very volatile both the arts yes and the my six have been bouncing up and down and the european markets just open and they're doing the same thing but we'll have all the latest detail

short selling banks france italy spain and belgium have banned bats which allow the investors to profit from the fall of the prices of stocks but similar steps have been taken before in two thousand and eight by the u.k. and the u.s. and back then it resulted in a degree of artificial inflation in stock prices on the down side on friday already a latest economic growth figures from france which will be under scrutiny from ratings agencies due to its high that's and g.d.p. figures aren't helping the situation since they're showing the eurozone second largest economy is a stagnant there's a lot of talk on the morning to go into one of the smaller to see this part of a multi-state downturn or means the market is near the bottom of analysts are saying now it's too late to sell yet to early to buy so since it's impossible to predict the market's moves perhaps the best thing to do now is to steer clear of the markets. so watching us are doing these troubled times cold cash are all traditional sense havens but for those who listen to say i could at least supply a splatter from what happens on

on meanwhile after a week of turmoil on the european financial markets of france italy spain and belgium have decided to ban short selling on the shares of banks not the financial companies or short selling is when traders profit from betting on the falls in share prices is to blame for increasingly civs market instability the leaders of the years in the biggest economies germany and france have also announced they'll meet next week to discuss solutions to europe's financial difficulties watch our business bulletin coming up shortly. now six gunmen including a terrorist cell leader have been killed in russia's southern republic of dagestan in a two day anti terror operation that's according to the national antiterrorism committee . mughal way below what was it believed responsible for several terrorist attacks across the country and was on the most wanted list he's also thought to have helped train a suicide bomber who blew himself our other military town in the republic last year four officers were killed in that blast and more than thirty injured russians and you tara committee claims

companies in an attempt to calm the markets after that the day prohibition was announced by france italy spain and belgium market volatility seems to ease helping today's trading close in more positive territory and short selling is where when investors sell board stocks that are expected to fall in value before buying them back at a cheaper price and keeping the difference they are being blamed for the recent increases in market fever meanwhile struggling a chilly has approved forty five million euros and comes to balance the budget in the next two years while france was backing speculation it was going to lose its aaa school that was finally confirmed by ratings giants on wednesday but as john hagen from the european school of management and technology says the governments once again offer protection to the banks instead of addressing the underlying debt problem. part of these rescue managed measures have been taken to to rescue the banking system. especially with the banks in southern europe and i think this needs to be addressed but overall we also have this kind of political situation whi

traders in france, italy, spain, and belgium wealth up to a new straitjacket, a ban on short-selling. some say it was introduced by countries at most risk of a sovereign debt crisis. the message to european leaders is that restricting trade does not change the fundamental problem. without more funds, the currency might be near the end of the line in its present form. >> for more on this wild week in the global markets, i'm joined by the assistant managing editor who wrote this week's cover article entitled "the decline and fall of europe and maybe the west." is it really that bad? >> it is it really -- this week has been a wild ride. but we have seen is a real crisis point. europe will blow. the debt levels are unsustainable. we just heard about the new austerity measures in italy. the question is whether europe will come together and whether the germans will say that they will bail out italy and spain. it is coming down to that. this is a monetary union plus a political union. >> what are you saying? europe is not capable of sorting out its debt crisis? >> well, that is exactly what

italy spain france and belgium have introduced short selling bans on financial stocks and that's helping the markets today we've got for example here in london barclays is one of the top prizes of the day so we are seeing strength in banks but it is like history repeating itself because similar levels of volatility we had three years ago in september two thousand and eight there was widespread short selling bans but over the next months financial markets still dropped another fifteen to twenty percent so again traders in europe at least so far are back convinced the short selling bans are necessary to change anything so just next week what do you think is going to be like. i don't know if there is a quick answer is that what i think maybe maybe after the game credible volatility we've had in the last couple of weeks we'll have something about be a return to maybe more normal daily ranges but i think the pressure will still remain on stock markets i still think if we see a bit of strength the risk is it's going to run out of steam and the sellers come back in and push these markets there

selling, the practice of betting on the decline of a share price, is banned in four countries -- france, italy, spain, and belgium. the move comes amid market turmoil. that brings us to the end of today's show. you will find constant updates on our website. to see what we are working on, visit our facebook page. i am james o'brien. for all of us at "bbc world news america," thank you for watching, and we will see you back here tomorrow. >> make sense of international news at bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> union bank has put its global financial strength to work for a wide range of companies, from small businesses to major coporations. what can we do for you? >> "bbc world news" was presented by kcet, los angeles. nouncer: this program was made possible by: >> ♪ i'm a whirlibird... >> chuck e. cheese's, proud supporter of pbs kids, solutes all the parents who know staying active with their kids is fun and healthy for them. >> ♪ i'm a whirlibird. >> pbs kids, where a kid can b

hour with a short selling on banking stocks which has been banned by four european nations france italy spain and belgium are boycotting traders sprats which allow them to profit from falls in the share price all financial stocks now the move follows high volatility in banking stocks on fears about their exposure it's the euro zone governing that the european market regulator says the temporary ban will help stop the tailspin on the markets but the ban could also put all the e.u. members into a trip to position as investors with negative news on banks might shift their bets to these countries. it has been a week of exceptional volatility on the world's financial markets and here in russia there have been gains and losses greater than five percent so the trend though has been down then sentiment fearful bordering on panic at times well overall and mash from vernal tappets all says that under such circumstances it's impossible to predict what might happen on a day to day basis but the outlook is particularly poor. i think at the moment trying to work out what's happening on a daily basis is vir

meanwhile after a week of turmoil on the european financial markets france italy spain and belgium have decided to pound on the shares of banks and other financial companies short selling is when traders profit from and share prices is the blame for increasing we said market instability or the leaders of the year is in the biggest economies germany and france have also announced their all meet next week to discuss solutions to europe's financial difficulties our business for this it will have the complete lowdown on the short selling ban later this hour. well since the last downgrade of the u.s. credit rating and concern over the european debt crisis people have flocked to buying gold with a safe haven to invest their money it's value has almost doubled in the last two years and prices for the precious metal have skyrocketed this week breaking time records thievin writes asia business editor says that gold will always hold its value because of that short supply. it's differently a sign of fear and anxiety markets gyrating boldly people want to take money away from risky yes it's like st

meanwhile after a week of turmoil on the european financial markets france italy spain and belgium have the five it's a ban short selling on the shares of banks and other financial companies short selling is when traders profit from betting on falls in share prices has been blamed for increasing market instability where the leaders of the euro zone's biggest economies germany and france have also announced they will meet their eggs week to discuss the nation's two europe's financial difficulties we do watch our business loosen it later on for more. and since last week as part of and poor's downgrade of the u.s. is credit rating people have plot to buy gold as a safe haven or to invest their money its value has almost doubled since the beginning of two thousand and nine and prices for the precious metal have skyrocketed this week breaking all time records let's talk more now with steven wright a key asia business editor he joins us live from hong kong many of those of being with us so what all the reasons are people turning to gold and other precious metals is the sign of panic. the amou

france, italy, spain and belgium beening a practice known as "short selling," and that affects only banknsurance stocks and officials suggest that it is temporary. but the move is already stirring markets overseas. the three biggest european indices if london, france, and germany, all up, 3 percent, in the latest sessions. but analysts point out that the united states and the u.k. tried the same thing after the collapse of lehman brothers in 2008 and it didn't much help. joining us now is the associate editor at barrons' magazine owned by our parent company. michael, let's lock forward to next week. this has been, i think on record, the wildest week wall street has seen, right? >>guest: in terms of the up and down, absolutely. >> will it settle down over the weekend? >>guest: there is a chance we can settle down. europe is the key here. not just because of the measures banning short selling which is usually a desperate stopgap measure that the government will undertake but it is because we want to see if the european industrial banks tries to get in front of the problem with italian and

two weeks ago, market regulators in belgium, france, greece, italy, spain intervened to prohibit traders from speculating on a decline in and a share's price. short-selling is a trade in which the investor shares borrowed cells without owning them in the hope of buying them back later at a lower price. on thursday, germany denied speculation that it would extend a ban on naked short-selling, a variation in which traders agreed to sell a security they have not yet even arranged. european shares fell in thursday trading. the dax was down by 4% at one point in the session. our correspondent sent us this summary from frankfurt. >> very few investors are driving the market. this thursday afternoon, the german stock index plunged about 4% only within a couple of minutes. this, for no apparent reason. two-thirds of the shares were temporarily suspended from trading because of the unusual volatility. the daily loss at the end of the trading day did not look that scary, but all of this shows how nervous the market is. >> at the closing bell, it was down by 1.7%. across the atlantic, the dow close

markets react so positively to news that france, italy, spain and belgium had placed this temporary banshort selling of financial instruments, financial stocks, which is something that amounts to a bet against the stock's performance. why did that make such a big difference? >> i wouldn't say it was one any individual aspect. you got to take the market in its totality at the moment. that's an unease about what is taking place in europe, both in the debt crisis in the united states, and with the deficit. so anything at all like, for example, the banning of short selling or the reaffirmation of a aaa rating for france or saying they're not in financial trouble, anything at all that soothes the markets' nerves at this particular point, ali is what is really moving the market. >> ken r ogoff from harvard. we talk about the rise of asia and the slowdown that some of asia is experiencing. we think our economic fortunes are tied to that. really the last month or so indicated to us we are much more tied to europe than we probably actually thought. is europe and its problems a real threat to us

as they yield critical of you guys so now you have investors pulling out of france italy and spain. and fourth largest eurozone economies and that is why. investors in the markets are panicking at the moment the leaders of france spain and germany are holding an emergency teleconference to try and stop the relevant to coming out at the top you have prime minister silvio berlusconi and his finance minister openly disagreeing on this solution solutions to the crisis and the e.u. president jose manuel barroso slammed on discipline communication by e.u. leaders for making the crisis worse and germany is furious at such an open attack this time when it's already critical started just a full on a regional pandemic here now across the ocean in the u.s. there's also a decline of voting a diff thought helped at all. well as in europe we've seen america really suffering and raising doesn't tackle the key problem which is making the problem worse even the more and their economy is weak because they know the euro the u.s. really thought the key issue yesterday was the wall street was years there

italy and spain have entered crisis talks with the e.u. as they yield critical new highs so now you have investors pulling out of france italy and spain. eurozone economies and that is why the investors in the markets are panicking the moment the leaders of france spain and germany are holding an emergency teleconference to try and stop the open relative to coming out the top you have italian prime minister silvio berlusconi and his finance minister openly disagreeing on this solution solutions to the crisis and the e.u. president jose manuel barroso slammed on discipline communication by e.u. leaders for making the crisis worse and germany is furious at such an open a tank this time when it's already critical as in europe we've seen america really suffering and raising the debt ceiling doesn't tackle the key problem which is such making the problem worse given the more debt and their economy is weak because they know the your the u.s. have really started to tackle that key issue yesterday was the wall street worst day in years there was steep slumps in the share price and there are now fears that america will go back into recession whi

and we did see temporary bans on short selling in france, italy, spain and belgium. that soothed markets over there each showing big gains. and that is resulting in stronger gains here on wall street again. the numbers now, dow up 127 points. nasdaq is up by 14. s&p gaining 11. and with everybody focusing on gold, frank and grace, it's pull down about $10 an ounce right now with money flowing back into equities. let's hope it keeps up throughout the day. >> if it goes up today, do we think next week may be it might stabilize or are we looking at another volatile week, do you think? >> reporter: we're not out of the woods anytime soon. it's going to take quite a while before the volatility settles out. we need to get better economic indicators and europe is a key factor. huge problems over there and there's still the threat that france could see its triple-a credit rating downgraded. if that happens huh expect some bad results here on wall street. >> unlike what, two or three years ago, globally now we have so many problems. so it will be interesting to see what happe