tv [untitled] August 5, 2011 1:01am-1:31am EDT
run this was her job as a treat. patients stocks tumble as global markets reacting badly to america's gloomy economic outlook and the swelling. consumer confidence. as former egyptian president hosni mubarak stands trial for killings for. those who fought for change. as violence at a rest continue on the military. and we take you to russia's far east where integration with neighboring bobby alexander borders to russia close up at this hour.
nine am here in the russian capital you're watching our take thanks for joining us now our top story asian stocks long on friday following a day in the red for european and american markets investors are nervous over the prospect of a sharp slowdown in the u.s. economy as well as having the euro zone debt crisis on their minds the specialist who helps american firms forge international partnerships says the chorus of shows that washington's not tuned in to the right signals. but i can't speak for all the investors but certainly. looking at what happened in washington doesn't raise anybody's confidence the politicians will do the right thing the us ship be concerned and should be worried but i'm not sure that the our politicians in washington are getting that message it seems like they are involved in their daily pollutant will struggle and battle and they place
a higher importance to winning those political points than taking into consideration the national interest of the united states as well as the world why interest in a financially stable market i'm very concerned about the future of the united states much less concerned about what's going on in asia there's no question in my mind the asia including china but other parts of asia as well is very much on the rise and they seem to be much more sure footed and they get things done over there compared to what's going on in this country all to get the latest forecast for the global economy let's cross live now to daniel to bush from c.l.s.a. asia pacific markets and independent brokerage and investment group joining us from bangkok thanks very much for being on the program now eason markets were reacting as usual reacting to wall street movement they plummeted very sharply now what does
this mean for the asian economy it really is reminiscent of the lead up to the two thousand and fashion crisis isn't it. yes it's true it's very similar and the concern that we have now 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 i think this talk about china this is the world's second biggest economy now there's slower growth there albeit self-induced but they're also dealing with inflation and unemployment so this is quite bad timing for them what implications would it have for china if the eurozone and the u.s. were to go even deeper into crisis. well i think the implications for asia is that we start to see a bit slow a bit of slower growth across asia as i was saying i think the banks will limit
their lending to a degree like. what made you decide to say. well for china remember in the past they were able to continue to grow their infrastructure program and banks were 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 the global economy is much weaker ok let's talk about global reserve currency the us are actually in a very bad position right now and amid all this widespread economic panic what are the chances of the chinese you want becoming a reserve currency. i think that would take quite a bit of time and. it would take a few years at the very least. i think you still need to open up the capital
account for that to occur definitely seen many individuals moving into renminbi deposits in hong kong over the past few years but for it to be a reserve currency i think that would still take quite a bit of time ok that there are critics who argue now the very idea of a common the european currency was a flawed concept from the outset what's your view on that my view on the what can you repeat the european currency having a euro was flawed from the beginning according to some critics what do you think. the concept of the euro was was always fundamentally flawed because then you limit each country's ability for independent monetary policy where many different factors are at work in each of the different economies so i think we've been seeing the shortfalls or the weaknesses of the regime of that program for quite
a while now and it's coming to a head maybe now with some of the problems in greece and other countries there i think that's it just put everything that's going on into perspective people during a rout words like recession a double dare financial crash and it reminds us of two thousand and eight certainly but can you give us a realistic a comparison of the two where are we in comparison to that crash and are we going to be in the same position or even worse than before or maybe you would say we're in a slightly better position right now. there's there's no comparison to the position the asian countries are in now compared to the financial crisis in one thousand nine hundred seven artifacts reserves are much better our foreign dollar borrowings aren't really there and our leverage position in terms of credit to g.d.p. is not nearly as high 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 ok just very quickly how will russia be affected by all of this from your perspective i'm sorry could you repeat what about russia just very briefly what's your take on the russian position at this point. the russian position did you say yes or i think we're having quite a bit of late. did you get the question are i think we're running out of time thank you though mr daniel to bush from the c.l.s.a. asia pacific markets thank you. both capitol hill as cash may be scarce but they'll be no dipping into what is the world's biggest military budget defense secretary leon panetta gave lawmakers a firm has softened said cuts should come from medicare and social services instead former pentagon official lawrence korb says america's defense bad mouth is in
a drastic need of better management. well a secretary to france panetta is trying to basically keep the spirits up of the organization he took over but as former director of o.m.b. he knows that the defense budget now even if you control for inflation is higher than at any time since the end of world war two but i think the key thing to keep in mind is that when they talk about cuts up until now they've talked about reducing the projected level of increases not cutting when you and i talk about cutting means we're going to get less power that we got last week no in the defense department it means we won't get as much as we thought well we're still going to get more you know what when richard nixon left office called him soft on defense we were spending in today's dollars three hundred fifty billion two hundred billion less than we're spending now what you need is good management and put out a lot of good you know get some people who can keep weapons systems growth on their control and not buy weapons we don't need. to cross the atlantic the e.u.
commission chief says europe's bailout fund may need to be increased as fierce mount that the block sovereign debt crisis well i'm golf italy and spain all dr richard mellon is from the u.k. so institute of economic affairs says the whole euro project has failed. looking at the figures i think some sort of default for italy is almost inevitable because they have to govern us to borrow something like five hundred billion euros by the end of twenty now this is the particular problem at the moment because all the other major economies are trying to borrow huge amounts of money from the markets at the same time so i really can't see any way out the main problem is actually the failed experiment in itself that was instigated decades a couple of decades ago and obviously if you have a one size fits all interest rates over a huge geographical area you're going to inflate these different bubbles all over the region and it's going to end up in two because we restructure it's going to be especially in southern europe just to make their economies bring them back into
competitiveness with germany and so on so really the whole system is fundamentally flawed it's going to be sensible the european elite should be actually trying to work out. a responsible way for the euro to break up into countries such as greece to leave the eurozone i think in the long run that's the only way otherwise the healthier economies in northern europe are going to be brought down by the whole region. and in egypt where as long as the groups grow in influence debate spread so over whether the a post revolution country will become a shari'a ruled state all this as the nation's former president and his allies static trial hosni mubarak has denied the charges against him on the first day of his hearing or he was accused of ordering the deaths of protesters back in february the hearing which will continue in ten days could see faces a possible death sentence they be three year old was in a hospital bed as he tries tried alongside his two sons and top aides who are also accused of corruption and killing. on a board to reports even with new people in power blood is still being spilled on
the streets of egypt. to young to vote yet old enough to die for his country this boy was just seventeen when a different police killed him on the toughness where today he's portrayed adorns one of cloud. central thoroughfares there's even a talk of naming a street in his name what makes someone and more appear and another well in the age of right now if the date of death those gone down prior to mubarak's resignation celebrated its patron who lives with the brighter future of their country those killed after his ousting sometimes are free to ask criminals to stop to undermine their country's democratic stripes and it doesn't matter that they share the same goals and they'd have these days justice is about power and knowing the other way around this young man also count of himself among the children of the revolution if
he's older brother he celebrated mubarak's departure from power or to taking it for the and to deploy state three months later he was killed and what his brother believes was a government sanctioned shoot them in his little bubble and on the snipers showed my brother dead the bullet went through his food and it came out on the side and i saw it no one here has a weapon like this only soldiers. like families of victims whose deaths are now being pinned on mubarak these people receive no monetary compensation for their loss in fact they're increasingly worried that the new military authorities may persecute them a studs. it became an all encompassing term for those who don't appreciate the ruling military. and i saw us our bodies we expected the army to intervene to protect people who just don't minds but instead they started to kill people themselves the supreme council of the armed forces as an interim caretaker when
mubarak stepped down brought to power by the protests the generals nevertheless don't show much liking for mass gatherings the cradle of the egyptian revolution is now cordoned off by riot police those caught protesting accused of public disturbance and sent to military trials in the last seven months there have been more people put on military trials than the number of people that were put on the president of the. president of war so that's really president mubarak's regime individually of course a scar on his forehead still hasn't healed but these activists believes he got off lightly from he's encountered with the police a month ago a son of the former presidential contender who was jailed by the mubarak's regime nor says the new authorities are just a brutalized version of the all and it's extremely clear that there is very little difference between the people who are ruling us know. that many of the crimes the hosting were committed to his people are currently being committed. to
us now by the people who are ruling us the supreme council of armed forces. whether it is using violence or oppressing. the public or even if it's manipulating public opinion but suddenly in this is what hurts more because of these crimes are now being committed with the disguise of the revolution he gives these bloody t. shirt as a reminder that the egyptian revolution is far from over the former president is now on trial for his role in the mass killings but the body is still being spilt on the streets of cairo it's not a boycott are it's empty. well the syrian opposition has dismissed a decree from president assad authorizing a multi-party government system the law could see the formation of political groups opposed to the ruling baath party's national front protesters demand an end to
brutal crackdowns before they'll enter a dialogue now assad's gesture came after the u.n. security council condemned his regime's violence against the opposition and called for internal political dialogue to end the bloodshed local reports say the military is attacking the protesters stronghold of hamas activists say dozens have died there in the last twenty four hours adding to over one hundred killed since the attack and france announced it may seek further action from the security council if the killing continues however such threats are counterproductive to any real change according to. president of the arab lawyers association. directly it is just not the legislation itself it's how it's going to be implemented and the restrictions included in that there are 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 result what is
lacking is the action on the syrian side they have to make the changes that require . principally start killing people and remove some of the leadership. on the part decide on the government and on the military and i think the threats 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 they have to have a dialogue but they're resisting falling into the same trial which we have fallen before with iraq when there will be security council said they were not invade iraq they did they sent in libya only we're going to have a no fly zone and it turned out to be into a war and invasion of libya. and dmitri medvedev has told syria's president bashar al assad that he needs to carry out reforms and open dialogue with the opposition.
north cities thought succession unfortunately the situation in syria has taken a dramatic turn we real politicians should follow developments gadhafi libya gevalia orders to destroy the opposition the syrian president gave no such orders unfortunately a lot of people are dying in syria this is our biggest concern in my private conversation with the president and in the private letters i've sent him i discussed the same ideas reforms need to be carried out so he should establish peace with the opposition establish peace in the country create a modern state if he fails to do that in a sound future awaits him and at the end of the day we'll have to make our decision we watching the situation is changing good lines onto. the russian president gave an interview to our team echo musketeer radio and b. in georgia to pick a television channel on the eve of the third anniversary of the ascetic war while
speaking about those events in the caucasus the regime advent of said georgian president mikheil saakashvili should face an international court for starting the war in two thousand it or you can watch president pervez interview in full next hour on r.t. . that aggressive war that threw a tiny nation into the global spotlight. three years after georgia attacked south to set yet. could anything have stopped the bloodshed. did russia have any choice but to step in. president medvedev gives r.t. the straight answers. and now some more stories from across the globe for you teachers have joined the anti-government protest movement across the sweeping across israel hundreds of education workers rally through the streets of jerusalem demanding better working conditions than those comes after the three recall
demonstrations over. cities nationwide with tens of thousands of protesters reportedly involved all initially aimed at battling over rated housing prices the move has turned into an expression of rage against a number of economic issues. more than five hundred students have been detained by police and she wants capital santiago during demonstrations the protesters calling for changes to the country's education system brought traffic to a standstill barricade said threw rocks at police cars and passing buses and security forces responded by firing water cannons and tear gas at the protesters seriously injuring it too with. his government has already offered a twenty one point reform package to stop the protests that have been ongoing over recent weeks however the unrest is expected to continue. a tropical storm has forced thousands of residents out of their homes in parts of the dominican
republic and haiti heavy rains caused water levels to rise dramatically flooding hundreds of homes reports claim that several major rivers could soon burst their banks the conditions have been affecting the region for weeks now with forecasters issuing a strong mudslide warnings. well next we're off to one of russia's remotest corners and where integration with china knows no boundaries. today were in the far eastern region it's a remote but rich region holding russia's largest gold reserves well it's also quite a powerhouse of industry with heavy manufacturing flourishing and more is also russia's eastern economic outpost being perfectly situated to make the most of its proximity to china artie's alice hibbard went along to see how state borders into bonds of
friendship. a very warm welcome to this edition of russia place out this week coming to you from the region situated in the very full this reaches of the us is four weeks with thousands of kilometers away from you in moscow but to me of like minutes by boat from china and all surprisingly 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 on arrester if she prefers to be called in russia is no ordinary woman having first arrived in a more 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 blogger versions 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 portfolio and one that
the mother of two says she couldn't have built in china you know. if the i saw 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. new research is just one of a growing band or 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 sunshine to flock across the border every year his is a tried and tested business model selling cheap secondhand chinese clothes. so whether it's a pair of a trendy train is that iraq or perhaps i'm a designer fungal says this is where the people of like a better head to pick up a bargain were inside the chinese market which is in the center of town and of
course everything. five here bears the label made in china and all the sellers also come from china and let me tell you it's absolutely packed in fights here and a period 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 and by hopping on one of the many packed ferries that cross their more river every day rushing consumers can enjoy an even more authentic chinese shopping experience audi is with a slight slavic flavor they're keen for a bargain and in the process help to fuel the chinese economy it's led sounds of fear that russia's far east is being exploited by its entrepreneurial neighbor.
pessimists revel in self pity at the sight of china forging ahead while optimists think of ways to develop blagoveshchensk of the same pace using chinese expertise capital and labor i believe our region is hugely fortunate to border 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 greater integration between the two countries as far as government is concerned it's a relationship where strengthening 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 pick representative of the growth of the chinese economy as a whole and its influence here in russia alison bit more to region.
i'll soon you can discover more about the world's largest country. dot com and be all about russian section of the website some of the news we're covering on line today pushing out a submarine for decades the soviet solve that's been a lurking at the bottom of the baltic. sea and from would be suicide bomber to peace campaign are we the palestinian woman whose life trains when her terrorism failed she tells her story on r t. and on the way how one of the world's smallest and newest countries is looking to forge its future but first all the latest in business with kareena. hello and welcome to business this and top story wall street has witnessed its
worst stock market sell off since the middle of the credit crunch in early two thousand and nine the dow jones tumbled more than four percent while the nasdaq lost five percent at the end of thursday's bleak session that's following the worsening of america's economic data that suggests the slowing growth from an already sluggish pace in the first half the sell off sentiment was boosted by news from europe the region's sovereign debt is in golfing two of its largest economies spain and italy now let's have a look at markets gold is edging up adding over twelve and a half dollars per ounce while silver is that in twenty six cents that's up to concerns of the u.s. and eurozone economies have sent investors running for safe haven precious metals are providing right now could as makes the sell though trading at lower levels it lost around five dollars on thursday again it's the wobbles in the us economic predictions that are impacting all future demand for crude played sweet is
currently trading at eighty five dollars a barrel while brant is at one hundred seventy dollars about. asian markets nosedive trying the losses on wall street's japan's nikkei tumbled three point four percent in the morning session it's the lowest since it's supposed to quake plunge in march energy companies and financial firms among the worst performers there with oil from pegs down over seven percent miners also are also hit hard hong kong's hang seng almost five percent in the red but exporters among the main losers. in moscow's markets are going to open in one hour both the artists and mas it's lost more than two percent on thursday with retail stocks leading the full. form banks have been receiving from russia in recent months sweden swede bank britain's h.s.b.c. and barclays have suspended their operations in the country but your bombards from the association of european business doubts they've completely lost interest in russia's retail market. retail market is interesting because they at some point in
time entered into this market but you have to realize that it is also quite expensive of his vocation workforce here the processes are expensive so you really have to reach a critical mass of do everything is breaking even if you are starting to you have to have the minimum amount of projects you have to have a clearly a minimum amount of clients and i do you get there it takes time and costs money i would analyze the situation is such that these things have decided at a global basis that it takes probably too long until they get there but it's not again it's not a decision per se against russia is an interesting market. from now we'll be looking at the russian markets and their reaction to what's happening in the u.s. .