it's sam stovall with standard and poors. you can catch us online, follow us on twitter. you can friend us at facebook. and take part in our online conversations. >> susie: and finally, people are calling it a modern day noah's ark. a japanese company has created a shelter to be used in disasters like an earthquake or tsumani. the floating capsule is made from enhanced fiberglass and looks like a huge tennis ball. it can hold four adults and comes complete with a small lookout window and breathing holes on top. tom, the company cosmo power already has orders for 600 of them. kind of thinking like after hurricane irene, i might be interested in one. >> tom: down here in miami we skated past irene and she visited you, no doubt. we're going to revisit japan as a matter of fact next week. that's "nightly business report" for friday, september 30. i'm tom hudson. goodnight, everyone and have a great weekend. susie. >> susie: good night, tom. i'm susie gharib. thanks for joining us. we hope to see all of you again next week. "nightly business report" is made possible by: this pr

now to be happy and to the school three days after standard and poor's downgraded the country's credit rating for the first time in its history. most wanted list three days the markets reacted with panic and the sharpest fall since the financial crisis three years ago. the crisis b.b.q. where sent out strong shock waves throughout the international markets including russia even though the situation even for the stabilized there's still the feel of the debt ceiling crisis beating and. the recession and that feel. too radical and long term solution to the debt problem is found in washington. well actually i don't share your. worries a bad bad bad about the dollar because because i suspect that what happens in the states is more a game a power game then real life though what's happening in europe may be more worrying because they're trying to i mean the problem here do you agree michael the gear i think i think you're right the really what he wanted the u.s. to mention. the u.s. was facing default actually that somebody else was facing the risk of technical default and of course it was a

living beyond their means now being financed by the standard and poor's there and downgrade in and also the markets think russia should also understand that there is a difference though between the u.s. and russia u.s. has a more than two hundred science areas of service and government that flexible market economy develops financial system so if they live beyond their means it's not their disaster russia doesn't have a currency like dollar and so if russia runs out of cash we've seen that happen in eight years or should they mean done that and then we're going to see as we've seen the ventless of the soviet union twenty years ago we've seen the default in russia in one thousand nine hundred they have me actually happen in the russia if if if russia and south of cash that may actually have a serious economic and political implications would russia have to borrow he said russia can borrow russia can borrow a lot so so i know a lot of specialists are watching our channel today maybe right now how would they should they expect that this country would be borrowing money so there's a lot of t

now to be a happy ending to this school three days after its standard and poor's downgraded the country's credit rating for the first time in its history the u. west almost one hundred weeks three days the markets reacted with panic and the sharpest since the financial crisis three years ago. the crisis in the you were sent out strong shock waves throughout the international markets including russia even though the situation eventually stabilized there's still the feel of the debt ceiling crisis beating and we can always go back into recession and that feel will only grow until i read the call and long term solution to the debt problem is found in washington. well actually i don't share your learning the. worries the bad bad bad about the dollar because because i suspect that what happens in the states is more a game power game then real life though what's happening in europe may be more worrying because they're trying to hide the problem you know do you agree i fully agree i think i think you're right the show really warty by the u.s. she mentioned that the u.s. was facing default actual

it's actual coordinated action between the federal reserve the credit rating agencies moody's standard and poor's the treasury treasury secretary tim geithner who's very close to wall street. and they were the ones who in two thousand and two actually showed the previous greek government how to hide their actual debt in order to get into the euro and have a bonanza in terms of your membership for greece and the greek economy. and they were the ones who pulled the plug on greece under the pump and came into office just at the time the dollar was under threat. the rating agencies downgraded the debt standard and poor's on the day that the european. union heads of state agreed to a print in principle to a greek bailout they downgraded greece three notches which is unprecedented for sovereign debt downgrade down to a level of junk and that meant that all pension funds around the world had to dump greek government sovereign debt immediately by you know by rules and regulations and that triggered the crisis into a whole new dimension so just as the crisis was nearing a solution. the rating agency stepp

realitys we committed to the rating agencies on wall streetet the three that we work with, moodys, standard and poor's, and fitch, that we would he a structurally balanced budget going into the next fiscal year, which is important to maintaining our ratings, and that meant tough decisions. we had $187 million of cuts,s, but $127 million of revenue enhancements, and in some cases that my tax increases. i am not lookingo increase taxes any more. we hope is will even things out and we could see the ececonomy producing in the city, and because the tax decreases. >> i want to get a couple of more things in a news. you just announced 600 new police officers will be hired to >> 300. >> 300. still a significant numbmber. some say you have gotten over- zealous. the senator sid back off, mr. mayor, police officers are throwing people in jail for expired license tags. >> that licy is a longstanding one? >> a little harsh, do n think? >> first o all, it is after 30 days. its someone who has let it lapse. >> do you think they deserve to go to jail? >> we have said to our officers let's use good judgment and discre

we envision standard and poor's and moody's would be the ratings agencies, and they will be evaluating the credit worthiness to actually issued debt and assigned a rating to our debt. next on the agenda are two items we would like you to approve. one is a debt policy. this is just best practices for any issuing entity should approve a debt policy which lays out the parameters of debt issuance. most of the other city departments that issue that had a policy and most other agencies have a policy. this is a good thing, and credit agencies look at this as a good financial measure for us to take. we're also asking us to be approved a financial reimbursement, which allows us to reverse ourselves for any cost incurred associated with the debt prior to debt being issued. a lot of dialogue is going on right now about the financing structure and what we will be presenting to the ratings agencies. so we have actually look at our revenue source. we think it is a very nice picture for us to present. unlike most systems that only rely on one source of revenue, we have a really nice picture to show t

standard and poor's cited high unemployment and large numbers of public sector debt. there are details of a 200 billion euro plan to rescue the weak banks. this will be put before eu leaders and the g-20 in the coming weeks. our business editor reports. >> the eurozone on red alert. even in paris, where big investors have become nervous about lending. the fear is that many of europe's biggest banks don't have the reserves or the capital to absorber losses in highly indebted countries like greece if they don't keep up the payments. the european top regulator is asking that banks keep capital from 9%-10% of their lending. taking account for a fall in markets, loans to highly indebted countries like greece, italy, spain, portugal, and ireland. that should give the banks and of capital to absorb losses in the event that they cannot pay back what they owe. it would mean that banks across the eurozone will probably have to raise 200 billion euros from investors and from taxpayers. about time, says a former chancellor, who funneled lots of british pounds in two u.k. banks. >

. >> ratings are also an issue in italy with standard and poor's downgrading 24 banks and other financial institutions. they point to tension in the markets and lower prospects for economic growth in italy. s&p says that this follows a special review of the italian financial sector due to the rough for economic environment. they have had a tough time agreeing to austerity measures creating a credibility problem for the government. to greece's efforts, the prime minister has made a final appeal for political support ahead of a vote on an unpopular new round of austerity measures which have greeks and taking to the streets in their thousands. half of workers on strike for a second day. the railways have been paralyzed by this action. garbage has not been collected for two weeks. unions are calling for one of the biggest strikes that the country has seen in years, a two day general strike started on wednesday. the investor confidence has taken a dive in germany. the index has fallen more than expected on mounting concerns about the debt crisis and faltering growth in export markets. we have

in the latest blow to the european banking sector, standard and poor's downgraded the credit rating of 10 spanish banks. the agency said the reduction was it necessary for the country's weak real-estate sector. standard & poor's also revised the outlook of four other banks to negative. citizens have been protesting austerity measures in france. strikes by unions have disrupted public transport services and schools. the french government said the cost-cutting measures are essential for reducing debt, but trade unions say some workers will be hit unfairly. there were of around 200 protests across the country. for more international news -- >> u.s. and british naval forces have freed an italian ship hijacked by somali pirates. they stormed the bulk carrier the monte christo, capturing 11 pirates. the operation was just a day after that ship was seized off the coast of somalia. it will begin deploying armed forces on merchant vessels to protect them from small gun and. of course, she was once ukraine's most popular politician. now she is looking at spending the next seven years in prison t

. >> rating agencies like standard and poor's wield huge power. their assessment of credit worthiness can raise a borrowing cost and further damage the country's ability to get spending under control. in brussels on thursday, the european commission suggested that it might began rating agencies from judging the credit worthiness of countries that are receiving assistance from an international bailout program. >> this is legitimate that states should enjoy special treatment if they are in the middle of negotiations or involved in international monetary fund program. >> details about the reforms are to be proposed in november. the commission also would like to rein in financial markets, strengthening rules against insider trading and cracking down on computer-based trading. many eu parliamentarians believe that speculators are using the markets. >> a -- art of using the markets. >> these provide services for citizens. these are not areas for speculation where did you can earn money at the expense of everyone else. -- where the few can earn money at t

. >> standard and poor's have downgraded -- has downgraded its rating for a major european bank. despite the downgrade, the bank remains the highest rated of the country's financial institutions. the growing debt crisis is causing a state of national emergency or portugal. that is according to the prime minister, who plans to make even deeper budget cuts next year to get the country's troubled finances in order. it includes tax increases and will have a big impact on education and health care. portugal must get its deficit under control to meet the conditions of a nearly $80 billion bailout package from the eu and the imf. volkswagen is enjoying healthy sales figures. the carmaker says they have sold more cars than ever before. sales rose by around 14% in china. in north america, there was an increase of more than 20%. the company is on target to keep its goal of 8 million car sales for the year. some good news from a volkswagen as well as below a-- gogle and sap. -- google and sap. we have a report from the frankfurt stock exchange. >> traders were scratching their heads. they w

. >> standard and poor is reporting higher levels of unemployment. bbc has obtained exclusive details about a new plan to rescue the euro zone week -- weak banks. >> even in paris, a big investors have become nervous. the fear is that many of europe's biggest banks did not have the reserve or capital to absorb losses if countries like greece did not keep up payments. >> they have a tougher way for measuring capital. especially for greece, ireland, portugal. that should give banks a enough capital to absorb possible losses in the event that they cannot pay back what they owe. that means banks would have to raise 200 million in arose from investors and tax appears. about time too. >> exactly three years ago today, recapitalized them. they are in a much stronger position than some of their counterparts. we did what was necessary. that is what europe should have done long before now. >> across europe, especially in europe, things are resisting the plan to build the reserves. they may hit the new capital by lending less. it may send the weak economy into

credit rating agency, standard and poor's cut italy's sovereign debt.ow both agencies give the country the sixth level from the top. because it's cut by three notches it could cause repercussions in the financial markets which are already being rocked by a postponed decision for bailout loans to greece. >>> eu finance ministers have agreed on tougher measures for controlling budget deficits. they'll be able to impose sanctions on eurozone nations that fail to meet the new conditions. the finance ministers held a meeting in luxembourg tuesday, approving the stricter rules aimed at preventing eurozone nations from falling into a debt crieses like greece. when a member's country deficit grows above 3% of gross domestic product the nation must pay a deposit that amounts to 0.2% of gdp, that money will be taken as a fine if the country fails to follow eu demands to improve the deficit situation. the eu has also decided to introduce a new system that needs the agreement of several member nations to nullify sanctions. this enables the eu to impose sanctions al

the downgrade by moody's followed a similar move by standard and poor's last month. italy's parliament has passed a 58 billion euros austerity package. the ratings agencies say mounting political uncertainty within the coalition could hamper the actual implementation. italy, which is the euro zone third largest economy, is now sitting on a mountain of debts totaling $1.90 trillion -- 1.9 trillion euros. that is your look at the business. >> going back to the subject of stock exchanges and wall street. thousands of people are expected to join demonstrations across the u.s. today to protest against wall street and corporate greed. the largest is taking place in new york's financial district or supporters of the movement, the 99%, have gathered in a makeshift camp in a park. powerful unions have joined the movement. protesters say favor the richest one% of u.s. society. earlier, i spoke to our correspondent in new york. i noticed that the protest was made up of a very diverse crowd. >> it is a very diverse crowd. a motley crew from all kinds of backgrounds. i talk to so

correspondent even the worst work in the world to us and even beyond their means being financed by standard and poor's the red and green and also the markets think russia so they also understand that there is a difference though between the us and russia yes it has a more than two hundred scientists of service in government they're flexible market economy developed financial system sort of the live beyond their means it's not a disaster russia doesn't have a currency like gold there and saw if russia runs out of cash we've seen that happen in the end of the eight years russian think they've been done and. we've seen the benefits of the soviet union twenty years ago we've seen them get called in russian and in many there me it actually happened in russia if if if russia rounds out of cash there may actually have a serious economic and political implications will russia have to go and he said russia can grow russia a lot so i know a lot of specialists are watching the channel today need to do right now would be should they expect this country would be boring as long as it's not even it is a global reces

. >> he mentioned france that a credit rating and overnight standard and poor's cut state that a credit rating by one notch to aa- and a negative outlook. it cited heightened risks to growth prospects due to higher unemployment, tighter financial conditions, and a higher level of private-sector debt. the likely economic slowdown in its trading partners. another day of a strike in greece. buses, trains, taxis, and the metro all stopped running in athens monday. fresh protest against government spending cuts are not in their second day. the greek finance minister are warning the protesters are giving greece an image of lawlessness around the world. the action culminates in a general strike on tuesday. european markets very pretty well this morning. investor shrugging off any worries they may have over the china inflation figures we saw earlier. a chinese inflation still high. looking toward to the g 20 summit with some hope perhaps and also seeing some financial stocks rebounding and a bit more today. that is the latest business from a. >> thanks very much. it is a reality that none of us

saving the region's economies and spain becomes the latest nation to take care of ratings john standard and poor's. with more news for you more developments in less than fifteen minutes from now in the meantime the latest sports headlines with the retreat. i know they're welcome to the data and i'll tease groups have a company again all top stories this hour. plan then there will thought we preview this weekend semifinals at the rugby world cup. closer and closer to the time still in moto g.p. australia's casey stolen assess the fastest time in practice by his home grand prix at the pile and. into the semi david ferrer advances into the last four of the shanghai nice just following the. world. so hugely kinds of rugby lies ahead with trying to lower world cup finalists imagine new zealand drive favorites the all blacks world class last sunday but not before state of the field against france on saturday it was a ghost you know reports. wales were far from favors going into the tournament and take advantage of their low profile with gruelling from rationed the side widely credited in their pre world

and credit crisis europe spain has become the latest victim of a credit downgrade standard and poor's agency has cut madrid's double a rating by one notch due to we growth high unemployment and massive private sector debt the fitch agency has also downgraded spain's rating as well as the credit worthiness of several u.k. and swiss banks and portugal is warning its deficit cutting efforts are well off track the country's prime minister warns of any hardship next year with more pay cuts and tax increases ahead prices or a negotiator has been asking people in portugal how they're dealing was what's being called a national emergency. i'm afraid i'm afraid of the future i'm afraid that. things are going to be like there are. people i'm. not going to be able to to have a good. solution is an active member of the portuguese indignados delish movement its participants believe the government is hell bent on pleasing the rich and powerful and ignores the needs of the people to have to realize that we are not. for them. it's happening and it's happening everywhere inspiring here. the worst rate

spain becomes the latest nations are taking a hit from ratings giant standard and poor's. that's how the headlines look for now but stay with us to richard's here with a sports. sports update tentative thanks for joining us. let's take a quick look at what's going in this scene. and then there were four with a preview of this weekend's semifinals at the rugby world cup. closing closer to the title in most cases tone this sets the fastest time in practice. for the pollens. and. advances into the last fall of the shanghai losses following a great settlement and it will do. so hugely kind of rugby lies ahead with trying to live in a world cup finalists in new zealand favorites the all blacks will but australia on sunday but not before wales take so the field against france on saturday it was a. wales were far from favors going into the tournament and take advantage of the low profile with ruling from rationing the side why the credit in their pre world cup training camp in poland as the reason for the player support fitness throughout their campaign that kind of practice maki

resolve the deficit question, when you see the credit rating of the united states marked down by standard and poors think? >> a lack of confidence. i'm going to start a new company, i need to know that there's going to be capital, that there's going to be enough optimism and that the government is going to come to conclusions because that sense of uncertainty of pessimism about the future is not a positive company creator or job creator. >> pelley: pretty much everyone agrees that washington is tied up in knots. your message to washington is what? >> i guess a simple message would be untie the knots. from where i sit unleashing the potential of what's possible is what i love to ask for. so if i had two things i could ask for, don't stop investing in innovation. my second request, education. investing in education is the best way to invest our way out of the lack of jobs. >> pelley: susan desmond hellman, chancellor of the university of california at san francisco. that's the "cbs evening news". with thanks to our friends here at cbs station kpix, i'm scott pelley in san francisco. i'll see you tomo

still have potentially a nation of bankruptcies in italy spain portugal ireland even france standard and poor's has made an inference in an interesting projection on the server and ratings back in two thousand and five six years ago where they projected that all the major western governments including france the u.s. the u.k. and germany were actually heading for drunk status on the debt rating simply because all of their deficits and government as a percentage of g.d.p. unsustainable so don't get it wrong that that's caused by greece or that if you fix the greek situation then everything will be fixed and all of you are not at all and yes in a way politicians are about to lose control of the situation entirely in europe you are close to having banks and just yesterday under american law said we are trying to support the banks so really they have only got two choices now in europe even uncontrolled collapse if they don't do anything much or massively massively wide in the bailout funds. technically they may do that this so and as i will find it doesn't really matter what you call them but that