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tv   [untitled]    August 5, 2011 4:01am-4:30am EDT

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all. in india in the movie the joint be the children's village the gateway to the grand imperial truly the george weston. you can
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a letter to will return to go. read this in the kernel was her job as a treat. brought stock in peril the fair slide continues in europe's opening markets following a similar grim trading in asia and on ball street the selloff is being spurred by a gloomy economic forecast for the u.s. as well as the deepening there is a debt crisis. president medvedev says he's urging the a syrian leader to talk to the opposition and start reforms or expect a sad future that's as protesters reject the offer of changes from president assad who's wrapped up a tot's on their. if you don't like the rules with books of the place you live for in some way you do appreciate the little hardline muslims in britain are trying to put london under the control of a lot of critics viewing the campaign as a political tool designed to split the nation. and we take you to
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russia's far east where integration with neighboring china goes far beyond any borders that's a close up of this hour. twelve noon here in the russian capital you're watching r t thanks for joining us now on to our top story global investors remain spooked at this hour as europe stock exchanges open to another sales fleury echoing a similar worrying dips in asia and america will stock holders fear the worst stuff for the. back to his race of a sharp slowdown in the u.s. economy as well as the euro zone's debt weigh on their minds an hour or so into trading in europe let's see how it's going r.t.s. and daniel bushell is in brussels for us so daniel might we expect any recovery and stock exchanges in europe and the us on friday well your stock markets have been
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sliding all we see just today point to another significant drop and even more significant drop across the union and the trouble is the news for the euro is going for the worse so there you talk banks have revealed heavy hits from the crisis this morning of the s. banks that it lost over a billion dollars in court threw on the bank of bad greek loans i have the e.u. bailout of greece requires investors to take a loss on what they hold and royal lloyd's of build an even bigger loss yesterday on losses ok well just briefly why the panic that was specially since america finally decided on dealing with its debts well it's because greece laurel and the scary investors are not but what we really frightened italy's crisis talks with the european union biggest problem the eurozone is number three economy or even worse than at the height of the global economic crisis in two thousand and eight in fact there was any time in the euro's history and investors are also pulling out of
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splaying to record numbers and if those two joint countries fall then we really are in trouble and it's the investors who make the decisions and one of the world's biggest lenders do it your bank has slashed his exposure to a time in government that as well as other troubled countries like greece and in the portugal which suggests they just don't believe that those countries promises that they can get their house in order or credible ok thank you very much for that they will certainly be following this closely artie's daniel bushell from brussels there. well let's get some insight and talk to hong kong based mark geary who's the joint president of the international executive search federation and a business consultant thank you very much mr. geary for being on the program with us now they are major stock markets and both sides of the atlantic they're seeing a lot of red right now is it a signal for investors to turn further east. i've i think it is the we've seen that the economy is here in asia pacific have done very well over the last two
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to three years they survived the previous financial crisis but i think we're faced with an entirely different type of problem at the moment of all that what kind of what kind is that if you're saying it's entirely different. well i think previously we had a banking crisis where the banks would lend too much money to the banks have undergone concert dribble change and reform that strengthened their balance sheets they've had stress tests what we're seeing to me now is a fiscal crisis it's where governments haven't balance their books the bank in the us i think it's ironic in that previously the that the government had to come to the aid of the banks and now that the some of the economies are not in good condition themselves because the government spent more than they're bringing in now they're sort of going cap in hand to the banks and saying you've got to support us an obviously the banks don't like that they alerts talk about their economies of india and china they're already economically raising ahead how does this set the
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stage for more asian firms to to rise in in terms of global importance. i think that's right that's right we've seen you know china is looking at about nine percent growth this year india eight percent and don't forget indonesia at about six point five percent. that's about forty five percent of the world's population these are populations that have been have been growing. economic wealth has been growing so they're now significant spenders on retail themselves we've seen tremendous growth in the property markets particularly in china we've seen. china's car market now become the world's largest car market and i think major companies are looking for growth in asia pacific and they're diverting their attention to these markets and i think if you look at just the announcements that were made yesterday like by h.s.b.c.
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they're cutting back in europe but they're adding they're adding about five thousand people in asia pacific ok earlier you made the distinction between fiscal crisis and debt crisis right now but it is the really looking very similar to the lead up to the year two thousand a financial crash do you think the us is likely to face well a second round of recession there and what effect will it have on the global economy this time. i think i see there's a bit of a disconnect between what the politicians are saying and what we're actually hearing in the markets if you look at the last quarter something like seventy five percent of the companies that were reporting in the usa they beat analysts estimates i think if you track back over of about the last six quarters you'll find that the the major u.s. companies reporting. between sixty six percent to seventy five percent beat analyst estimates over six consecutive quarters so they must be doing something right i
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think what we've seen is the companies they've trimmed their labor forces they've become more efficient and they've expanded into overseas markets ok just serve briefly now focusing on the euro those who are thought to have been saying that it was a bad idea from the outset they're now saying i told you so well what's what's more useful to asia at this point a single european currency or or going back to the old money. i think there's no going back i think it was the right move to have a single european currency i think that's been good for the world to provide some balance there was too much over reliance on the the u.s. dollar but this is where it is interesting now is to look in the eurozone right now a lot of debt problems there why wouldn't you say that it's a good idea what is the argument there. well i think this is where the previously you would have had probably countries that would fall out of bed but now
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the european community is coming to their aid they put in place certain measures i think what what the markets are saying and what we've heard of the government saying is now they've made promises we need to see countries like greece move ahead and implement the measures it's going to be painful we know but you know anybody that's run a household knows if you haven't got the money coming in you can't spend it you have to make cuts and i think it's just a test of credibility for italy as well and for spain if the government takes the steps and takes some of the medicine they'll pull through you know the banks in the countries in the european countries are strong the banks in america they've taken the medicine they've cut costs they've cut headcount and they're strong they've been through the stress tests so i think it's it's what i call it's a fiscal crisis you know governments are now got to put their house in order. ok
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thank you very much mr margaery dr president of the international executive search federation talking to us live from hong kong thank you. of course artie's been there getting a global reaction to the ripple effects on the markets you have back up based economists daniel taub are saying the asian economy will easily with south america and europe's turmoil. concern that we have is that we have to see growth rates in asia come down a bit further from where we had been expecting them and if you remember in the global financial crisis previously a lot of banks in asia got very cautious so they themselves decided to limit their lending and that's likely what we will face again and compared to the global financial crisis you may remember actually asian economies and banks didn't get that hard hit so again the situation today is is not that worrisome compared to the last two crises in asia for china remember in the past they were able to continue to grow their infrastructure program and banks were
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providing credit for that so china probably is still one of those countries where you'll still see acceptable growth remember they've been trying to manage down their growth to about eight percent and maybe we'll get there now but what you should see is china doing less in the way of tightening measures if the global economy is much weaker well our business also keeping an eye on developments from our business news is here what is the latest from here and the developments well here in russia markets are in the red as well joining the global rout the r.t.s. in my eyes it's shedding over two or three percent and going a little at the moment but the r.t.s. falls for the fourth day and that's the longest losing streak since june twentieth we see a sea of red across the board on both the boards as with energy and financial stocks among the worst performers and we'll be talking to analysts in the program about whether this what we're seeing now is a recession or this is just an overreaction to markets ok thank you very much for
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that kareena. well president medvedev is a warning to syria's leader that he must enter a dialogue with protesters in order to end the ongoing violence discussion on the conflict came up during an interview with r.t. and other media on the eve of the third anniversary of the south search of war well here's some of what you'll hear in twenty minutes time. unfortunately the situation in syria has taken a dramatic turn we real politicians should follow developments like gadhafi gave violent orders to destroy the opposition the syrian president gave no such orders but unfortunately a lot of people are dying in syria this is our biggest concern in my private conversation with the president of syria and in the private letters i sent him i discussed the same ideas reforms need to be carried out should establish peace with the opposition establish peace in the country and create a state if he fails to do that then
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a sad future awaits and at the end of the day we'll have to make a decision we are watching the situation it is changing our guidelines are to. the syrian opposition dismissed a decree from president assad proposing a multi-party government system so the violence has to end before a dialogue begins just came after the us security council condemned the regime's crackdown on peaceful protesters meanwhile syria's military has reportedly been attacking the opposition stronghold of hamas activists say dozens have died there in the last twenty four hours and that's adding to over one hundred killed a sister who kept france says it may seek the further action from the security council if the killing continues but arab lawyer says that soft threats are counterproductive. affectively it is it is not the legislation itself it's how it's going to be implemented and the restrictions included in that there are
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quite a lot of restrictions which makes it probably very difficult to implement i think the pressure of international pressure on syria is producing some results what is the lacking is the action on this serious side to have to make the changes that require. principally start killing people remove some of the leadership. on the part decide on the government and on the. and i think the threat that the u.s. and france and and britain. applying to syria is very counterproductive russian position i think it's a moral one in the sense that if you want a friend you actually give an honest advice to your friend you don't just agree with them and you don't threaten them it is not acceptable what's happening you have to have a dialogue but they're resisting the falling into the same trap which we have fallen before with iraq when there will be security council said they will not invade iraq but they did they said in libya only we are going to have
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a no fly zone and it turned out to be into a war and invasion of libya well there is islamic leadership tension of a very different kind in britain with hardline muslims trying to force sharia law in london from abstention to amputation artie's lore and it's been hearing how they want to instill their tough code on the capital. so we are here to tell you that islam. is unstoppable in europe stoning for adultery cutting off hands for stealing a death of renouncing islam this group of men is trying to enforce shari'a law in the u.k. they've started a campaign to make certain areas of london and other cities islamic law controlled zones starting with wealth of east london because while you go to forbidding evil because of the psalms an alternative to the more civil than all muslim community also looking to believe that muslims kind of together trade according to the sharia was all their problems. and even police themselves to
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a large extent hopefully one day to have a summit governments which would have authority look at the security locally and you provide well for local choudhry and his friends are fly posting parts of london with large muslim populations they want to ban drinking gambling and playing music and they say they've got bands of young men ready to patrol and in full shari'a law by any means you know that enforcement will not initially be in on the level of inviting and forbidden very belief that if someone has the capability of a nice wooden essentially something like pornography prostitution it should do so. but by that you mean it of course i believe that the need a mosque should be run out of the area these muslims say british society is broken riddled with drugs crime and prostitution because of that they firmly believe members of the communities that targeting will welcome shari'a law but the word on the street about the campaign tells a different story comes down to if you don't like the laws of the place you live
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find somewhere where you do appreciate the law and. things are completely legal in this country this is not indira pakistan this is an england we've got our own laws people have a right to coming here and bringing their laws in here we often have coached i think the trouble councillor martin. griese saying this could destroy community cohesion we've. taken down the post this assumes that put up because we do not want these posters around. they have no place for us citizen equality campaign is say this should real support this shouldn't be considered a religious movement was a right to political organization with a place to campaign designed to divide and conquer communities their danger lies in dividing people dividing communities creating mistrust particularly among from non muslims towards moderate muslims i think this is part of their aim is to create
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mistrust so they can then turn to moderate muslims and say look everyone hates you we're your friend turn to us and it's a very very dangerous thing and it's a pleasure tactic to increase their own power undeterred by opposition and his group plan will they see is the beginning of an islamic emirate not just of the all over europe police have mobilized to take these posts is down as fast as they appear but choudhry and his group say they formed bands of vigilante enforces to make sure. all physically and in other parts of london women have already been harassed for not covering their heads if these muslims ever get their way i won't be able to dress like this on the streets. or many other parts of london brussels rome and paris. well from story. and now some more stories from across the globe for you teachers have joined the anti-government protest movement currently
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sweeping across israel hundreds of education workers rally through the streets in jerusalem and demanding better working conditions for the news comes after the three week old demonstrations overwhelmed cities nationwide with tens of thousands of protesters reportedly involved the movement initially targeted overpriced hell. but as why don't you and can pass anger over a number of other social issues. thailand is to get its first ever female head of government looks you know watch has a career going ahead to become prime minister after her party secured an absolute majority in parliament she's the sister of former prime minister talks in shinawatra who was overthrown in a military coup in two thousand and six and he was charged with corruption and fled the country but some speculate he might line up for a comeback with his sister in charge. a tropical storm has forced thousands of residents out of their homes in parts of the dominican republic and haiti heavy
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rains caused water levels to rise dramatically flooding hundreds of homes and reports claim as several major rivers could soon burst their banks the conditions have been affecting the region for weeks now with forecasters issuing a strong mudslide warning. the next we're off to one of russia's remotest corners and where integration with china knows no boundaries. well today we're in the far eastern it's a remote but rich region holding russia's largest gold reserves it's also quite an industrial powerhouse with heavy manufacturing flourishing and a more is russia's eastern economic outpost to being perfectly situated to make the most of its proximity to china. went along to see how a state borders turned into bonds of friendship. a very warm welcome to this
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edition of russia place out this week coming to you from the album order to situate it in the very thought of this reaches of the us is four weeks with thousands of kilometers away from you in moscow but it may have played minutes by popes from china and unsurprisingly the influence of china and its culture is everywhere here . high heels and a hard hat it's not a look many women can pull off but then lily white on arrests or if she prefers to be called in russia is no ordinary woman having first arrived in a mall as an interpreter in the early ninety's she and her family worked their way up from running a small cafe she owning this large construction company. and spread across the region's capital blagoveshchensk no fewer than four large chinese restaurants full most nights and serving up a taste of the orient to russian diners it's an impressive pool failure and one that the mother of two says she couldn't have built in china if you. use that i saw
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an opportunity to create something here russia needs skilled laborers and with china being so close and easy access to chinese goods equipment and a ready workforce. norris are is just one of a growing band of successful chinese entrepreneurs operating in russia's far east where a river is all that separates the two countries easy proximity coupled with favorable visa regulations continues to inspire thousands of chinese workers people like sucha to flock across the border every year his is a tried and tested business model selling cheap secondhand chinese clays. so whether it's a pair of a trendy train is that the raft or perhaps the design of fungal says this is where the people of like a vessel head to pick up a bargain were instantly the chinese market which then the center of town and of course. everything inside here bears the label made in china and all the sellers
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also come from china and let me tell you it's absolutely packed in fights here and the party is like this every single day so clearly business is booming. i've been here for three years i love china as there weren't enough jobs things are going well here you can get things really cheap here which is great if you've got a large family the quality varies hugely but on balance i think we're lucky to have chinese traders here russian goods just can't compete on pricing. by hopping on one of the many packed ferries that cross the river every day russian consumers can enjoy an even more authentic chinese shopping experience audi is the slight slavic flavor thank you for volume and in the process help to fuel the chinese economy it's led some to fear that russia's far east is being exploited by its entrepreneurial neighbor. person missed revel in self-pity at the sight of china
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forging ahead. think of ways to develop like a fish at the same pace using chinese expertise capital and labor because i believe our region is hugely fortunate to go to china if we compare our city to others in russia we're much better off in almost every respect i was told of extensive plans for more joint ventures and grace integration between the two countries as far as government is concerned its relationship westray and. your standing here on the a more coastline it's a mere five minutes by boat across to china so close you always feel that you can reach out and touch it and people living here say that they've been witness to the phenomenal pace of development along the high paying. representative of the growth of the chinese economy as a whole and its influence here in russia alison bit more to region. let's check the latest business updates with kareena.
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hello and welcome to the business here in our global financial markets are witnessing the worst selloff since the middle of october two thousand and eight the sentiment was supposed to buy news from europe the region sovereign debt problem is engulfing two of its largest economies spain and italy and it was also supported by poor u.s. economic data that showed slowing growth after an already sluggish pace in the past now i'm joined by my knowledge long senior trader if you x. capital thank you sir for joining the program so is it is sign of another recession or are we talking about the overreaction of the latest data. i think there's a very real possibility that the u.s. the u.s. and maybe even other countries around the globe could be heading back into recession. and this certainly looks like a contraction across the board now what exactly is happening across the globe
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certainly with the u.s. we've got g.d.p. numbers that came in lower last week growth is very anemic of us we've got employment numbers coming out later on today less than one hundred thousand jobs are expected to be added just for the previous month this is not enough to bring unemployment down unemployment sits in one point two percent for the u.s. and it's likely that that could continue to creep also within the eurozone as well this sovereign debt issue seems to be spreading to the other countries as well it's of the major factors their ten year yield the amount that they're paying on their day you see a six point three percent for the other countries within the eurozone when they reach seven percent that is when they sort of dial out and again we've got the reason because it has come to an insecure join in last month. almost a delayed delayed reaction there's no more money being pumped into global economies and therefore the market start to come back down again so what we're seeing now in the markets you want. the panic basically. well it does feel like there is some
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panic selling going on or has been the last few days or so we're seeing exaggerated moves to the downside and increased volatility as well which is typical of panic selling within asset levels get down to very cheap levels they go to extremes and then you start to see value investors coming in and buying up stock very cheaply as well so there is some panic selling going on but there is a more so. there is a cooler heads out there buying are undervalued assets so what assets will investors to use as a haven now. going for stocks that have decent amounts of cash on the balance sheet strong balance sheets decent yield blue chip companies that have been around for decades and are likely to continue to be around for the foreseeable future and if they're not go for those sorts of companies then they go for gold gold is fantastic at the moment it carries on often not even today not too far away from the seven hundred dollar level and the market supports gold
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at the moment ok so how can the role of russian markets change in this respect. will russia has had a fantastic run looking at the my six great run over the last few weeks or so slowly start to come off it's coming off from the highs and with the increased amount of exposure to us that with a high amount of exposure to the oil and gas markets i feel there is near downside for russian equities to be had but when the recovery comes it will come at some point then the russian market does seem very well positioned to benefit quite significantly from it's. ok to see a trader capital thanks very much for this for this outlook and that's all for now we're following the signs of the situation on the global markets and we'll bring you the latest figures the next hour.
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last time the close of team was in the cool down region where men flock from all over the world to have a few centimeters to their self-confidence. this time archie goes to the amore region. for the gold rush still gets people high joke. for an ancient tribe fights to save its culture.


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