tv [untitled] August 8, 2011 7:01am-7:31am EDT
droid. reports from third largest economy india which endured a grim session. all the markets in asia have pretty much a fall in indian markets were down two percent today the markets in south korea japan china new zealand and australia all fell today this wasn't a huge shock to most people most people predicted that this dog would fall most of the markets have been tumbling for days now in reaction to the often peak credit down grade of the u.s. economy so not a huge surprise especially after the us debt ceiling debate last week and the american dollar which has been tumbling for weeks now so all the markets are down here asia's reacting very strongly we're hearing strong words from chinese political leaders as well one chinese newspaper actually said the u.s. government has to realize that the good old days when it used to borrow its way out of masses is over so everyone's watching this very closely india is the third
largest economy in asia and asia as a whole actually hold three trillion dollars of the united states china being the number one u.s. debt holder in japan being number two so they have a huge interest in what's going on over in the united states actually some analysts are saying that this point in some ways benefit the asian economy because of the risk aversion that's happening so if investors actually look away from u.s. treasury bonds they might actually want to invest more in certain factories in china but obviously we can't predict exactly what's going to happen yet but it's clearly creating a domino effect across the world and asia is going to continue to watch to see what happens. well asia's nations which of course hold the lion's share of american government that could turn their backs on its bonds as the chairman of a hong kong based credit ratings agency has been telling r.t.
. probably. try to. buy. my. giving such. as the. coming years. to be. coming coming so. bank. lending. operation will fund. economy long term. europe's exchanges are on the slide again after already dipping in early trading argues daniel bush so in brussels explains why. markets in europe are expected to further slide over the course of the day that's despite the pledge by the european central bank to boy up spanish that investors have been fleeing spain on fears that
the country's debt of control so this was supposed to calm the markets the g seven g twenty group of leading economies also said they would quote a global response to this crisis but asian markets. still a sea of red off the south korea's deputy finance minister said there was quote no cause for concern for the world economy the south korean index was temporarily closed it was shut down of the shares they collapsed in the wake of those statements as investors feel politicians don't get just how serious the situation is the moment but the oil of the storm continues to be europe concern is italy where prime minister silvio berlusconi promised to speed up spending cuts government spending cuts in the country but expose thing for more needs to be done for europe to recover from this crisis from the italian government one point eight trillion euros now that means nothing to anybody but that is bigger than the top.
government debt arland portugal and greece put together before the end of this year it will be needs to sell ball debt which is equivalent to the whole of the greek government bond market in other words all of the greek debt that we've been talking about for weeks and weeks and weeks is being. italy is huge need is just too big to manage to anyway be rescued in the way that other economies have so far being bailed out by the e.u. . in the crisis of its credit rating was downgraded on friday. late comedian george carlin always spoke frankly about his nation the only true lasting american value that's left by an days buying things people spending money they don't have on things they don't need today country long driven by borrowing
and consuming is in desperate need to cut it spending u.s. defense and security spending has remained untouchable soaking up seven hundred five billion dollars or twenty percent of federal funds every year since two thousand and one for the one point two trillion dollars have been spent on the wars in iraq and afghanistan but now with fourteen point four trillion in the hold some economists say it's time for the u.s. to compromise world domination for domestic stability also probably have to see a significant requestion ing or questioning and downsizing of the several hundred foreign military bases we have given the size of the budget problems and the growing issues around the national debt and the debt ceiling it is fairly well assured that the budget will be cut for defense and it probably needs to be cut more than is presently proposed for the pentagon priorities may be different the department reportedly spent twenty three billion dollars on global hawk drones alone this year taxpayers are. estimated to spend one hundred twenty two billion
dollars on the war in afghanistan the same amount that could cover an estimated twenty five million americans with low income health care an empire costs a lot of money because you have to spend a lot of money to defend it you have to spend a lot of money to promote it you have to have a lot of people working on various aspects of economic support for imperial adventures around the world the consequences the money is leaving the united states going to other places not to the places in the united states that need it the most needing it most is the country's neglected infrastructure and jobs that come with rebuilding according to the american society of civil engineers a quarter of america's six hundred thousand bridges are listed as deficient and nearly half of american households don't have access to public transportation ongoing federal budget cuts are expected to force thousands of post offices and
fire departments to close more than forty million americans on food stamps they also make sacrifices we just cut the food stamp budget by twelve billion dollars we have multiple experimental ongoing programs in the defense department each of which is large enough to offset the food stamp costs and i think if we have forty one million people already who are dependent on government aid for food getting food to them is probably a first priority but defense secretary leon panetta is looking further afield for his priorities we are a nation at war. we face a broad and growing range of security threats and challenges. that our military must be prepared to confront from terrorist networks to rogue nations that are making efforts to have two nuclear capability to dealing with rising powers that always look at us to determine whether or not we will in fact maintain a strong defense here and throughout the world eyes on the world. well citizens
face mounting struggles at home that's what the owners count on the fact that americans will probably remain willfully. red white and blue. because the owners of this country know the truth it's called the american dream because you have to be asleep to believe that marina ports are to me york. well arty's business to ask has the world's markets on close watch marina's there for us now our russian stocks joining the international slide today yes on these so they are the r.t.s. right now is losing over three percent while the my six is approaching two and a half percent in the red and then general russian markets have been very volatile today this good news from europe but we'll have all the details on that in our business program in about ten minutes from now. three years ago the people of the small republic of south a sense here came under artillery attack by neighboring georgia the brief war in
which to be trying to reclaim its old territories killing hundreds of people are just maduna question of what is in the south said the capital which still bears many scars. attacks suddenly around midnight and the first tribes have been hand of the russian piss keeping base and now what you can see behind me what's left of the base there were around two hundred fifty soldiers and they forced. the russian troops to iraq russia sent in troops to protect the republic citizens many of which were russian passport holders and we also were hiding in basements and blown out to buildings overhand twenty three soldiers were killed and a many injured and sound we managed to talk to they told us that they want to keep this building untouched and of the memory of what happened ham meanwhile the morial service began last night or will be held throughout the day these are many starts at eleven thirty five pm. that's exactly the time when george opened fire over the
century hundreds of people came last night to light candles and to pray for those who were killed three years ago in a brief but destructive conflict many came where the small children people were listening to the rag and they also released white balloons into the sky and the memory of what happened ham three years ago their wall lost its will follow but hundreds were killed and many injured mostly destroyed. and of all the face of the city has changed within these years still the locals are trying to resource their lives and we managed to speak to some of them who are still struggling to bring their lives back to normal. i come here almost every day i sit and talk to my son so a new next to my dear boy. for the last three years. has come to this cemetery where her son is burritt five days to two thousand and eight split her
life into a before and after. when her son a medical college graduate heard the republic's capital teen vaal was under attack from georgia she rushed home to help the injured she died in her arms us they lay trapped for days on to the rubble of their apartment block that was in the georgian alterian firing line. the only thing that makes her life worth living now is her twenty year old daughter they now live together in a newly built house to rounded by families with similar tragic stories. this area will leave specially built to those families who lost loved ones and were left with nothing in the touts across the street lives of women who lost two children
and to the house opposite lives a man who lost both his wife and his child. all these people are victims of georgia's military aggression in all those two thousand and eight when they try to retake control of the downed breakaway republic of south ossetia a russian peacekeeping mission in the region also came under fire nursed my abuse dive i was on duty with them and witnessed average thing that happened that night for kids and i saw him violent fire when you know it was going to be our last night but it was still carried out peacekeeping mission and tried to be calm. moskos sound trained force meant to protect its citizens and prevent more civilian deaths within five days georgian troops had been repelled three weeks later russia recognize such as independence. the last three years have changed the face of this says i new residential air where new roads jobs and invest in new
zealand have been built but still signs of the conflict remain this growing to behind my back are all that's left of the russian peacekeeping poles for those who lived through the horrors of the brief but badly conflict the memories are still very wrong. like the question or r.t. reporting from team vult soccer saturday. well joe maestas is a u.s. citizen who lives in south santee and back in two thousand and eight he nearly lost his daughter in these bombings he recalls the news from the american media board little resemblance to the reality. the american press was very biased in in the reporting of the whole conflict i was here in said he and my family in my in my siblings and friends in america and i spoke with them and there was nothing in the press about george attacking south that it wasn't until russia responded that it was being televised that russia is attacking georgia my
sister after i told her the truth about what was going on she saw a live t.v. show. on fox thirteen they're talking about the war and so she called it in and she said what you people are talking about is not the proof he said my brother is there he called me he told me what what happened with foreigners and they basically. to me to have spoke to r.t. and other media on the south said in a conflict as the third anniversary approached the president says georgian leaders release of thanks and international tribunals for crimes against russia and its nationals his full interview is it is available for you at our to meet dot com and in two hours time watch our special report on how the republic of south asensio has recovered since the war. the history of this place
runs through the centuries. a paradise for archaeologists. and ecological tourists. but one fateful night shocks destroyed the harmony of life. public. hoping dreaming dreams. two days of angry clashes in parts of north london have seen twenty six police officers injured and over one hundred sixty arrests the rest followed a peaceful weekend protest against the fatal shooting of a man by police and while the rioters were focused on
a political point the disorder underline certain points the authorities might want to consider and found out. mostly what's underway at the moment is a massive cleanup operation after last night's looting and rioting that happened in large parts of north london and it started off in the end fields area and then seemed to spread outwards south towards the city center and also broke out south of the river thames. it started off on saturday nights in top what started off as a peaceful protest outside the police station following the fatal shooting by police over a man called mark duggan there about three hundred people holding a silent vigil outside the police station we're hearing reports that what sparked it was a member of the police attacking a seventeen year old girl with a back that quickly circulated around the crowd and we're hearing that that's what sparked this violence that these areas that we're talking about particularly
tottenham where this all sparked off it was really sort of a sort of sprawl of gun powder keg this this fatal shooting of mark duggan. it's an area of massive social privation there's a lot of. the police is relationship with the community and there has been for many many years the police in that area and in many other areas in. just stop and search policy which basically means they can stop and search the belongings of anyone that looks even if they haven't actually done a thing people in those areas particularly ethnic minorities feel about on a fairly targeted by these policies there's also a huge amount of unemployment in the house one of the highest on youth unemployment figures. and living off benefits has become a way of life in these people some of them are literally how they live on benefits at the moment they see no time in the future in which they will have a job and be able to better themselves say people do you feel ignored and neglected
in these communities they're not making a political point we should make that clear these are looters and they're criminals and they're running around grabbing whatever they can but also people are saying that it's pretty important a political point is taken from this that these people feel disassociated from society and they should. debate on policing and social integration. well london's definitely a city on edge right now and there is one group that has an extreme solution to its troubles as we report on our t.v. dot com by muslims who want to lay down but some real in the british capital and it's not going down well with londoners find out more on their plans to get strict with the center. i'm flying high or not another competition for amateur aviators to at least try to return to sky watch their attempts at r t v dot com.
saudi arabia has pulled its ambassador from syria adding weight to the international condemnation of president also its crackdown protests on. tester's more than fifty people were reported killed as violence continued across the country on sunday syrian forces stormed the eastern city of north to crush anti-government protests during the month of the muslim holy month i should say ramadan heavy shelling was recorded after black clouds of smoke were seen rising from buildings in the city more than seventeen hundred people have been killed since the uprising began in march international relations expert professor mark almond says syrian politics are riddled with intrigue. we've heard.
a lot of the sort of hostile to the american women should be yours or your. girl or your markham's dorcas or. her money. or. who represents. i think the real brain is. something we were in sort of. later today more on the situation in syria and the arab world when we talk to iraq's foreign minister. a brief look now for you at some international news in brief the u.s. has launched an investigation into saturday's helicopter crash in afghanistan that killed thirty american servicemen seven afghan soldiers and a civilian interpreter it's the greatest single loss of american life since the beginning of the conflict twenty two of those who died prolonged the unit that
killed osama bin laden in maine investigators say the aircraft was hit while departing from helping a u.s. ranger unit that was under fire. most powerful storm in decades is heading towards mainland china tropical storm. winds and torrential rain causing huge disruption over the. and more than three hundred thousand people have been evacuated to safety around shanghai thousands of homes were left without power in south korea as the storm brought down power lines and trees and it's expected to reach western parts of north korea by monday evening. rain is here next with a live business update for you stay with our city. hello and welcome to business here on arts now russian equities are diving in line with the global markets following losses an aids or any europe within hours of open
in russia's my sigs dropped almost three percent spurred by falling commodity prices market watchers say trading is top the end of all it all with many of them prefer to stick risk off the table well joining me now is jacob knowledge chief economist at morgan stanley thank you very much for joining us thinking this tell us what's the downgrades effect well it's a good question because of. s. and p. downgraded the u.s. u.s. treasury bills actually rallied on the people found that it was a safe haven in a time of uncertainty and brought more of the downgrade over in instruments i think this shows the basic problem about the downgrade because u.s. treasury bills are the deepest most liquid financial instrument to help there and everybody measures their credit worthiness by relation to the u.s. treasury bills so what does it mean to downgrade the treasury bill it's a very difficult question and markets are still trying to work it out you know you
mentioned the effect of global markets how about the effect on russia in particular the effect on russia directs the key thing to watch for russia is the oil price if all price goes below about eighty dollars a barrel then russia's in trouble and if it stays above eighty dollars a barrel russia's following because the oil is so crucial for both the balance of payments and exports and for the budget. we don't expect a repeat of two thousand and eight when you had a funding crisis in developed markets which hit growth and then hit commodity prices and then hit russia at the moment we still see the support for commodity prices is still there but the the basically. force that keeps oil prices are is the consumer in the emerging world let's say in china and they continue to buy more oil and supporting your prices around the world at the moment so although we say
expect some volatility some choppiness in looking ahead it looks like russia is reasonably well supported with oil at around one hundred dollars of the money. now let's talk about the rating agencies for a second standard and poor's gave a triple a rating to sub prime mortgage securities during the peak of the financial crisis so could you say could we trust them well i think rating agencies are useful as a source of information to help you think of the risks that you're facing but everybody who operates in the wholesale markets should be trying to think things through for themselves. and so i think that it was useful the s. and p. downgraded the u.s. because it's provoked a debate about what does it mean to be three aaa what does it mean to be a highly rated credit i think that it's going to be. wrong to assume that rating agencies somehow have better information or no more
than other participants in the wholesale markets and i think that probably we're going to see the traditional all agog believe standard and poor's moody's and fitch be challenge by new entrants with different perspectives because in the past they've tended to travel in a pack and they have been prosecuted when everybody's thought there's no risk they've said there's no risk and when everybody sees a lot of risk they say there's a lot of risk and i think that that can add to volatility rather than reduce it now let's talk about the dollar for a second why does it stand as a global currency after the downgrade well i think that the dollar is so widely used in so many markets in the oil market in dimiss. markets such as russia are in the ukraine so widely that it takes a long toll him for it to lose its core role as a reserve currency and where else would you go you could go into the euro but the euro has got problems you could go to japan but japan's debt is over choices or is
the u.s. you could maybe go into the swiss franc or the swedish kronor dollar or the canadian luby but these are all relatively small economies they're not deep enough and liquid enough to perform the function of a reserve currency at scale so i think that we're going to be stuck with the dollar for some time to come if you look at the history of the pound sterling that used to be the world's reserve currency and britain stopped being the major economy in the world me eight hundred eighty s. but it stopped being the reserve currency i mean in the one nine hundred sixty s. so it can take decades for this effect to work its way through. jacob knowledge chief economist at morgan stanley thank you very much for your insight thank you. let's take a look at the markets now and asian markets have closed the negative territory banks were mostly lower and exploiters were also on the pressure and the worries about the future demand all of this was of course there is a lot of what's going to happening in the u.s.
and europe problems and market jitters. the european markets have gone back and so the read this by the pledge from the european central bank to buy sovereign balls the fourth suit is that one and a half percent the sound all that that says losing two point three percent. and here in moscow markets have slipped back to heavy losses after getting a slight very strong european markets the arts yes as news now with three percent more than my sex is reaching two and a half percent in the red. that's all the business is for this hour neither of them go i have another update for you and less than an hour's time that lines are next. mission. critical three months for a church is free arrangement free. three stooges
from. here with our live from moscow our top stories this monday world markets take a jolt on the back of america's credit rating startling down with european stocks continuing to slide. three years after georgia on least its war machine to try and seize the south and sets you know we need those who bear the scars of the conflict here in how they are rebuilding their lives. and rampant looting and rioting spreads in north london dozens of officers are injured trying to contain what started as a peaceful protest against the fatal police shooting a man. now it's time for another heated debate with peter the vowel in crosstalk.