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CONNECT THE WORLD

Volatile Session on Wall Street; Britain on High Alert; Somalia Famine; Violence in London Impacts Sports

Aired August 9, 2011 - 16:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MAX FOSTER, CNN ANCHOR: Stepped up security in London -- police head out in full force for the first time and try to restore order. After three days of chaos in the capital, questions abound.

What triggered the riots and could they start again?

Another roller coaster ride on Wall Street -- a day of wild fluctuations finally comes to a close.

And the mode of modern warfare -- why medics are increasingly under fire on the front lines.

These stories and more tonight as we connect the world.

First, a wild ride on Wall Street went down to the final minutes, as you've just seen. The closing bell just capped an extremely volatile session. A day after the Dow's worst performance in two-and-a-half years.

Let's get straight to Felicia Taylor outside the -- the New York Stock Exchange.

You can't make this up, can you?

The traders must be going wild themselves -- Felicia.

It's unbelievable.

(LAUGHTER)

FELICIA TAYLOR, CNN CORRESPONDENT: Well, it was an incredible afternoon, I have to tell you, here at the New York Stock Exchange. I was inside when the Fed decision came down. And, frankly, there was such a hush on the floor of the New York Stock Exchange, indicating that traders were really listening and looking into every single word that was written in this Fed statement.

And initially, frankly, the -- the reaction was very poor. I mean what they saw initially was not what they needed to hear, until you got to the body of the statement, down 185 points.

It took about an hour for the marketplace to really digest what the -- what the statement was saying.

It was acknowledged by the Federal Reserve that, indeed, things have slowed down. Unemployment is worse than we expected. The inflation rate will remain unchanged. That wasn't a surprise at all.

But the part that the market liked that thought -- that caused the rally toward the end of the day, in the last 30 minutes of trading, is the fact that the Federal Reserve is going to continue to asses the economy and be ready and poised to do something if it is necessary.

Now, what is good about that is that they didn't indicate anything about QE3. The market really doesn't want to hear that yet. We've had QE1 and QE2, as you well know, injections of about $2 trillion into the economy. More money added to this wouldn't necessarily have been a good thing.

So all in all, the market is very happy with Ben Bernanke and the Federal Reserve on this Tuesday.

FOSTER: It's all about mood, really, right now, isn't it, Felicia?

I know they talked about the economics and that's something that they're grabbing hold on. But you were in there on the floor.

Do you get a sense that there might be a sea change in the mood, that this positivity might last?

TAYLOR: Well, you know, it's a really interesting question, frankly, because initially, it seemed like there was disappointment. That lingering uncertainty seems to still be in the marketplace.

But, truly, the markets -- traders that I've spoken to, they want to see good news. They're ready to see positive news. They've been so disappointed by the policymakers in Washington that they want to hear some benefit to the economy.

And it frankly seems like Ben Bernanke has given that to them in a subtle way.

The part that's a little upsetting or -- or disconcerting, I should say, is that there were four Federal Reserve governors that dissented on this. So, again, there isn't consensus in Washington even when it comes to the Federal Reserve.

So that -- it would be a little bit of concern. But, yes, there is tremendous relief that the market did hear what it needed to at this point and you got a great relief rally in the last 30 minutes.

FOSTER: And some people getting some profits at last.

Felicia, thank you very much, indeed.

We'll have much more on the volatile markets a bit later in the show for you.

But first, Britain is on high alert tonight, one day on from what London's Metropolitan Police described as the worst disorder in living memory. Right now, some 16,000 officers are patrolling across the capital, determined to ensure there's no repeat of the running battles which left shops looted and businesses burned to the ground.

So far, the streets are much quieter tonight, but police have been called to deal with trouble in the East London area of Canning Town. Well -- the area of Canning Town in East London, I should say.

Earlier, Britain's prime minister, David Cameron, cut short his holiday and returned to London to meet with police and firefighters.

Speaking from Downing Street, Mr. Cameron vowed that those responsible would not get away with it.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: I am determined, the government is determined, that justice will be done and these people will see the consequences of their actions. And I have this very clear message to those people who are responsible for this wrongdoing and criminality -- you will feel the full force of the law. And if you are old enough to commit these crimes, you are old enough to face the punishment.

(END VIDEO CLIP)

FOSTER: Tough words.

So far tonight, police say they've dealt with outbreaks of violence in the northwest of England, with shops looted and buildings set on fire in Manchester and Salford. So it's very much leaving London, as well.

In Central England, shops were broken into in Wolverhampton and cars set alight in West Bromwich.

In the capital, it's much calmer than last night. But in East London, riot police have been out on the streets of Canning Town.

We've seen some sickening sights across London over the last couple of nights. But one video posted yesterday on YouTube sums up the ruthlessness of those involved. We can't verify when or where this was shot, but it appears to show a young man injured in the streets.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Are they actually helping him up?

Oh my god.

(END VIDEO CLIP)

FOSTER: At first, it looks like the group have come to his help. But then, another man appears and starts rummaging, would you believe, through the boy's bag.

Listen in.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You're going through his bag?

Oh. You just took something from his -- his bag?

(END VIDEO CLIP)

FOSTER: He certainly did. As the -- the men calmly strolled away, the dazed boy is left to go on his way on the other side of the street.

And would you believe what they gathered, they just threw away?

Unbelievable scenes and chaos and mayhem, it has to be said.

Now, let's see how newspapers outside England are covering the problems here, because this is certainly becoming an international story.

At "De Standard" in Brussels in Belgium says: "Violence Derails in London." "Social Unrest or Pure Criminality," it asks.

In "El Pais" in Madrid, Spain, the headline is simply "The Battle of London".

The headline "Express," that's published in Stockholm, Sweden reads "Chaos," as you can see. Very dramatic pictures yet again.

And "SME," which is published in Barslavas -- Bratislava in Slovakia has a picture that says it all, really. That's the photo of the burned out building in Tottenham, a scene that really started all of this off.

And "The Irish Examiner" -- it's published in Cork in Ireland. And it puts is simply, "London in Flames."

Now, the rioting hasn't gone unnoticed in Egypt, with some comparing it to the uprisings across the Arab world.

Here's what one activist, Mosa'ab Elshamy, posted on Twitter: "Egyptians and Tunisians took revenge for Kahled Said Bouazizi by peacefully toppling their murdering regimes, not stealing DVD players."

Earlier, I spoke to Mosa'ab and asked him what he meant.

(BEGIN VIDEOTAPE)

MOSA'AB ELSHAMY, EGYPTIAN ACTIVIST: In the Middle East and -- and our dictatorships, we know what it means to be brutalized by police and how -- and, of course, there have been thousands of cases of murder. But unlike - - we didn't witness what happened in London. And that's what I meant. When you are angry, you have to focus and you have -- and you need to direct your anger toward something meaningful and toward who caused it.

FOSTER: And what do you think it says about London, about Britain, about the West, even?

ELSHAMY: In London, what we saw is people who were obviously been marginalized and -- and were under hardship, but they weren't, in my honest opinion, they weren't aware enough to win the public support of others to - - to make like a certain and clear list of demands which would bring -- would bring people behind them to achieve something.

And instead, they took a really unfortunate route, which made me not be in at all in support with what -- with what's happened.

(END VIDEO TAPE)

FOSTER: Well, it's not just people from outside Britain who are wondering what's behind the violence. Here, too, it's a question that many are asking. And there's no answers, really.

To get a clearer picture, though, I'm joined in the studio by Patrick Regan.

He runs a charity which helps children escape from gangs and is also author of a book called "Fighting Chance: Tackling Britain's Gang Culture".

Thank you so much for joining us.

PATRICK REGAN, AUTHOR, "FIGHTING CHANCE: TACKLING BRITAIN'S GANG CULTURE": No problem.

FOSTER: Egyptians wondering what the aim is here.

And what -- do you think there's any single overriding motivation here?

REGAN: I think it's far more complex than to say there's a single motivation. You know, you look at the scenes on the streets and I think what we have to do is we have to say that these scenes are not representative of young people in our communities. You know, I've heard a lot of reports that young people this, young people that. And I realize young people are wrapped up in it.

But, actually, if you look at it, there's 20 -year-olds and 30 -year- olds looting, you know.

And what's happened is, is the young people have got caught up in it. There were opportunists who have gone in.

And I think we have to separate the two issues. There's a criminal element which is totally and utterly inexcusable that is going on in the streets. There's also young people who are disenfranchised. And we need to deal with both, but they are separate issues.

FOSTER: Well, let's -- let's split them up.

The criminals that we're talking about here, what's the proportion of looters that are those criminals?

And what's their motivation?

REGAN: I mean there's a very, very small proportion, but I think what's happened is, obviously, you know, you get a mass crowd and suddenly, when you get that crowd, suddenly the -- the crowd dynamics take over (INAUDIBLE)...

FOSTER: So it's a thing that...

REGAN: -- it's a thrill.

FOSTER: It's a thrill for some of them.

REGAN: For some of them, yes. I mean and, again, there isn't one solid reason why people are doing that. You know, and a lot of people in the pictures are actually spectators. One of the things the police have been saying is, you know, please, please don't spectate. Please get off the street. And I think the clear sign to people today is, you know, keep your children indoors. Let's stand up. Let's make a difference. And -- and let's -- and work with the police to bring an end to this tragedy.

FOSTER: And just -- I asked (INAUDIBLE) and I just want to focus on - - on the kids that are actually committing the crimes, because I keep getting asked myself what the -- what the motivation is.

Perhaps it's economic, because they're...

REGAN: I mean...

FOSTER: -- there's theft involved...

REGAN: Yes.

FOSTER: -- and they do feel...

REGAN: Yes.

FOSTER: -- disenfranchised. They don't feel...

REGAN: Yes.

FOSTER: -- they have a stake in the High Street that they're attacking.

REGAN: Yes. I mean I think, for me, you know, I'm not a politician. I'm not a policeman. I'm a youth worker that's been doing this for 18 years. And what I've experienced in working with young people is there is a lot of sense of anger in them. And rightly or wrongly, they -- you know, they live in a challenging area. Mom is working multiple jobs. Dad is not around. They've been excluded from school. They -- the school has said you're probably -- you know, I've had kids who have worked for me who've said, you know what, I was told that I'll end up in prison or in a dead-end job. They've got mates who have been killed. And...

FOSTER: So those are really not prospects. They don't feel like they've got a stake in the country.

REGAN: Exactly. You know, I -- I've always said, a hopeful young person doesn't join a gang. A hopeful young person shouldn't riot. Saying that, that's no excuse for that behavior, because I know people that suffer from that and they're not out on the streets, you know, rioting.

But it is a factor. And I think that we have to tackle the drivers of why kids get there in the first place. I mean it's a thing. You know, I went to LA. I've done a lot of research when I was writing the book and all that sort of stuff. And they were saying to me, you know -- you know, we often compare LA and London.

And I was saying, actually, you know, there's people were shot in LA on a weekly basis, on a daily basis, sometimes. And they were saying to me that actually it's different, but if we don't tackle the drivers to why kids get involved in these situations in the first place then...

FOSTER: So give us a couple of ideas then...

REGAN: -- then...

FOSTER: You've suggested that, you know, the parents are often absent. So parenting, schooling...

REGAN: Parenting is a massive issue. You know, there's one stat which I found staggering. Now, 63 percent of kids whose fathers are convicted of crime go on to be convicted themselves, which is incredible. But that also says to me, we know where to intervene. We know where the intervention should be. And we need to be discussing solutions and not just the issue.

And then also, you know, I think the -- that the issue is, is this temporary thing, is that you see a lot of dads come in for six months and then disappear again. So you get guesting fathers or temporary fathers. And -- and that can produce that sense of, you know, un...

FOSTER: Yes.

REGAN: -- (INAUDIBLE) and stuff.

FOSTER: And it takes us back to your original point, that there are two groups of youth here. There are the good ones and the bad ones that you're talking about. But it's pretty apparent that there's a split there. And the good kids are furious about this, aren't they?

REGAN: Yes. I mean you...

FOSTER: I'm just going to -- I'm going to bring (INAUDIBLE) you a moment, because Forest Johnson, the mayor of London, came back...

REGAN: Yes.

FOSTER: -- today from holiday, far too late.

REGAN: Yes.

FOSTER: I think that's the general agreement, isn't it?

REGAN: Yes, the general consensus.

FOSTER: He got heckled by a young person. And I think he -- she -- or that young person speaks for a lot of young people.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think it's about time. You can't (INAUDIBLE). The youths, right?

Connections have stopped, yes?

The job I'm working in now, I've only got this job. Working in now, I've only got this job...

BORIS JOHNSON, LONDON MAYOR: But where -- where do you work?

UNIDENTIFIED MALE: Up the road at Smith and (INAUDIBLE), yes. I haven't got that job because of connections. You (INAUDIBLE) your mate. OK, you've passed so much stuff, right, there's a lot going to affect to everything and look what's happened.

JOHNSON: I understand.

UNIDENTIFIED MALE: The youths are running around, OK, stealing, yes?

Now they're -- now they're looting all this stuff. There's a reason for everything.

(CROSSTALK)

UNIDENTIFIED MALE: and think about the amount of times you...

(CROSSTALK)

UNIDENTIFIED MALE: OK, I've got so much friends who actually want to go to university, but are stopped, OK?

(END VIDEO CLIP)

FOSTER: Such a powerful piece of video, isn't it?

REGAN: Yes.

FOSTER: So passionate. And it's not just the good kids -- it's not just the bad kids, they feel that the authorities aren't on their side, don't they?

REGAN: I think that sense of, you know, people want to be listened to. And I think whenever you're not -- you don't feel listened to, obviously, that produces anger, as well. And I think -- I think, you know, unemployment is a huge issue. You know, again, one of the projects I visited in LA, their slogan was "nothing stops a bullet like a job."

And -- and I think there's a lot to be said in that. You know, we know that sort of one in five young people 16 to 24 year-olds are going to be unemployed. So there's that sense of uncertainty about the future.

But I think what we've got to say, you know, this isn't the way to deal with it. This isn't the way to vent your anger. There are better ways and we need to help young people. We need to tackle the devices. And long-term change. I think we can't -- no longer can we just paper over the cracks and think these are deep-rooted -- seated problems that have been there for a long time. But we've got to keep hopeful and we've got to keep, you know, showing our young people and showing our communities that there can be better ways of dealing with it.

FOSTER: It's a long-term project, as you say.

But tonight, on the streets of London, we're seeing the -- the short- term impact of all of this.

We're going to get the latest now and head to Waltham Abbey in North London, another hot spot tonight, as we understand it.

Dan Rivers is down there seeing what's going on -- Dan.

DAN RIVERS, CNN CORRESPONDENT: Yes, Max, we're at the scene of a -- a big fire that's continuing to burn. This is a Sony distribution center that was set on alight yesterday evening at about 11:00 here in Waltham Abbey. It continues to burn. You can see the fire brigades and the -- and emergency services are still trying to -- to deal with that.

In terms of the -- the kind of picture across the rest of London, we've been in East London for part of the early evening, in Canning Town. There were some disturbances. Some rocks are being thrown and bottles and so on. But no fires like this one this evening that we've caught wind of, thankfully.

Things seem to be calmer across much of the city. The police have surged their presence, if you like, up to 16,000 officers now out across the city, many, many more -- more than twice the neighbor that were there yesterday. And that does seem to be having an effect.

We were watching as they were arresting young gang members on the streets, really, with very sort of little provocation. They just swooped in and grabbed them as soon as there was any sign of any kind of litter (ph).

And I think there's another fire engine going through there.

So the police really seem to be operating a bit of a zero tolerance policy in the parts of London that we've been in this evening, where they're just going in and arresting people straightaway before trouble can really take hold.

FOSTER: As things develop, communities across the country have responded to the violence.

And this is a bit of positive news for you on this story. They're rolling up their sleeves and they're getting their hands dirty. Spurred on by a Twitter campaign, people throughout London cued up to help clean up. With brooms in hand, there was a show of solidarity that spread across the capital.

This is CONNECT THE WORLD.

Coming up on the show, despite the rioting, the International Olympic Committee claims to have confidence in London. The Games are a year away.

But what it they were happening now?

That's in six minutes.

Then in 15 minutes, we'll see if the markets bounced back from Monday and hear about the US Federal Reserve's moves to stop the turmoil.

But first, the rest of the day's news, including growing international pressure on Syria to end its crackdown on protesters.

(COMMERCIAL BREAK)

FOSTER: I'm Max Foster in London.

You're watching CONNECT THE WORLD.

And here's a look at other stories we're following for you this hour.

Syria is brushing off growing international outrage over its crackdown on demonstrators, answering the criticism with new deadly raids. According to human rights activists, security forces killed more than two dozen people across the country today. Most of the casualties came in Deir Ezzor, where bodies are reportedly laying in the streets.

Turkey's foreign minister personally delivered a message to Damascus that his government has run out of patience with the bloodshed.

But President Bashir Assad told him that Syria will not stop hunting, quote, "terrorist groups" that it blames for inciting the violence.

The remains of 38 American and Afghan personnel killed when their helicopter was shot down in Afghanistan have been returned to the United States. President Barack Obama canceled a scheduled engagement to visit Dover Air -- Air Force Base and pay his respects to those who died. The crash represents the worst single loss of American lives since the beginning of the war. The bodies of the Afghan victims will be returned to their families once they're identified.

Somalia's government has offered amnesty to al-Shabab, Islamist militants, in exchange for their surrender. The group did withdraw from Mogadishu on Saturday, but insisted that has nothing to do with the offer. Millions of Somalis are in need of food and shelter, as a devastating drought covers the region. Aid packages have been available since Monday, but one African Union commander told CNN's Nima Elbagir it's not enough.

(BEGIN VIDEO CLIP)

NIMA ELBAGIR, CNN CORRESPONDENT: What is your message to the -- to the international community?

What's your message to the world?

MAJOR GENERAL FRED MUGISHA, A.U. (PH) FORCE COMMANDER, SOMALIA: Well, it creates a bigger area for the international community to -- to get people and save lives of the starving children and women, the Somalis. So many people now can access food. I still see a huge gulf between the talking and the doing on the ground. Yet, you have people who are not accessing the humanitarian aid.

I would wish to see more in the direction of more doing than talking.

(END VIDEO CLIP)

FOSTER: Well, around 12 million people in the Horn of Africa need food assistance and they need it right now. Bombs rained down on the Libyan capital overnight. The -- the sky of Tripoli lighting up from a massive explosions. Multiple air strikes echoed through the city for nearly an hour. And they have caused a fire at a chemical plant. It was the heaviest night of bombing in Tripoli in a month.

Polygamist leader, Warren Jeffs, will spend the rest of his life in prison. A Texas jury handed down the life sentence plus 20 years for sexually abusing two girls he claimed were his spiritual wives. His victims were 15 and 12 years old. The prosecutors said he had abused his position as the head of the fundamentalist sect to satisfy his own personal appetites and desires.

Endurance swimmer, Diana Nyad, is back in Florida, but she didn't arrive the way she wanted. The 61 -year-old abandoned her attempt to be the first person to swim from Cuba to Florida without the protection of a shark cage. Shoulder pain and asthma forced her to call off her 165 kilometer swim around the halfway mark, after 29 hours in the water.

(BEGIN VIDEO CLIP)

DIANA NYAD, LONG-DISTANCE SWIMMER: I suffered a bad, bad asthma bout for 11 hours. Never in my life had asthma in the water. And yesterday, I started doing 30, 40 strokes and was so depleted of oxygen, I had to roll over on my back and gasp for oxygen for three or four minutes. So I was limping and limping along. And I thought, you know what, it's not going to be able to be a pretty finish. I can't be the swimmer I am today because of what I'm going through.

(END VIDEO CLIP)

FOSTER: Well, Nyad tells CNN she has no plans to attempt the swim -- swim again.

And coming up on CONNECT THE WORLD, sports becomes a casualty of the violence. Three days of rioting in London have stopped football at Wembley and raised questions about the Olympics. That's after the break.

And how the markets responded to America's central bank effort to bring calm, in 10 minutes.

(COMMERCIAL BREAK)

FOSTER: Three days of rioting have changed the face of London. The Carpetwright Building (ph) on Tottenham Court Road is a local landmark. The composite of these before and after images shows the scale of the damage inflicted.

Worth noting that that building actually made it through the war.

Now, there's the Reeve's Furniture Store in Croydon, built in 1867. Owner Trevor Reeves told the London "Evening Standard": "Words fail me. It's just gone."

International Olympic Committee officials say they are confident in London's ability to police the Olympic Games, despite those images. But the violence over the past three days has already had an impact on sports.

And "WORLD SPORT'S" Don Riddell is at the CNN Center with the details on that -- take us through it, Don, because there are some big matches, right?

DON RIDDELL, CNN SPORTS CORRESPONDENT: That's right, Max.

The big casualty is tomorrow night's game at Wembley Stadium, the international friendly between the English national team and Holland. A crowd of between 70,000 and 80,000 we're going to be at that game. But that has been called off. The Football Association was in consultation with the local authorities and the police. And it was just decided, frankly, that the best thing was to call the game off. The FA couldn't guarantee the safety of the fans. And remember, Max, that, of course, the police are stretched thin right across the English capital and perhaps it wouldn't have been the wisest use of resources to have them policing a football match.

That's off tomorrow.

Tonight's friendly between Nigeria and Ghana in Watford, in North London, is also off. There are several other domestic pictures (ph) which have also been postponed.

And, Max, the Premier League season is supposed to start this weekend. There are three fixtures due to be played in London, one of which is due to be played in Tottenham between Spurs and Everton. Those games are on. But as you can imagine, the Premier League and the authorities are in close contact because if the trouble continues this week, those games could be in jeopardy.

Another match to bring you up to date on this. The cricket match in Edgebaston, in Birmingham, also a scene of violence this week. England and India are due to be playing their five day test match starting on Wednesday. The latest is that that game will be going ahead. This is a huge match in world cricket between two of the best teams in the world game.

But those players, Max, have been under lockdown today. They've been keeping a pretty low profile in their hotel rooms, for obvious reasons.

FOSTER: This is a relatively small, though, compared with the particular event coming up next year -- Don, it just does not look like London is ready, the police are ready for the Olympics.

RIDDELL: Oh, absolutely not. And, you know, there's been calls from all around the world today saying is London ready to host the Olympics?

And you and I live in London and we might, perhaps, think, well, you know, of course it will be. But you can see why people around the world are thinking well maybe it won't be. The pictures we've been seeing from the streets of London are absolutely horrendous.

Right now, you're looking at a test event for beach viability (ph). That event is going to be taking place in Buckingham Palace in 50 weeks time. That is a test event that has gone on today, Max.

But, of course, when you consider where some of this violence was taking place, the Olympics are going to be hosted predominantly in the east end of London. It's one of the poorest parts of the whole country. Some of the violence has been taking place just streets away from where the Olympic Village is going to be, from where 10,000 athletes will be traveling in just under a year's time.

You can see why some are concerned. The International Olympic Committee have released a statement today, Max, saying that they are confident that London authorities will be able to do their job. And the London mayor, Boris Johnson, agrees with that view.

FOSTER: OK. Don, thank you very much...

(BEGIN VIDEO CLIP)

JOHNSON: I want to make one thing clear. In -- in 2012, next year, we are going to be welcoming the world to our city. And it is a great city. It's very peaceful and it is a fundamentally safe city. And when people come here, they're going to find one of the safest, friendliest big cities on earth.

(END VIDEO CLIP)

RIDDELL: And we'll have more on that for you, Max, in "WORLD SPORT" in an hour's time.

FOSTER: OK, Don.

Thanks a lot for that.

We'll keep a cross of those sporting pictures being affected by all of this. But so far, quiet in London, at least tonight, even if it's not in the north of England.

Straight ahead on CONNECT THE WORLD, rebounding after a rout. We'll see how US markets wrapped up the session a day after their worst showing in more than two years.

Also, cars are big business in Russia's Gateway to the Far East, but domestic production isn't driving Vladivostok's economy.

And under fire on the front lines. We'll look at the risks faced by medics in countries at war.

(COMMERCIAL BREAK)

FOSTER: You're back with CONNECT THE WORLD on CNN, the world's news leader. Let's get a check of the headlines this hour.

Some 16,000 officers are out on the streets of London following a night of rioting, which police described as the worst in living memory. So far, there's been no repeat of the widespread violence, but police were called to deal with a disturbance in East London, and shops and cars have been set alight in central and northwest England.

Turkey's visiting foreign minister is demanding an end to the crackdown in Syria, but according to Syrian state media, President Bashar al-Assad told him that security forces will not stop chasing down, quote, "armed terrorist groups responsible for months of violence."

As Somalia copes with the twin scourges of famine and violence, the transitional government is offering amnesty to any insurgent who surrenders and vows to renounce violence. That comes after al-Shabaab insurgents withdrew from Mogadishu over the weekend.

The remains of 38 US and Afghan personnel killed in Afghanistan arrived in the US today. They died on Saturday when their military helicopter was shot down in Afghanistan. The Afghans will be returned to their home country after identification.

Finally, some relief on Wall Street. The Dow rebounded sharply on Tuesday, soaring almost 430 points. But its biggest gain of the year comes just one day after its biggest loss of 2011.

And those are the headlines this hour.

Well, the entire world was watching the Dow today, wondering if it could recover from Monday's meltdown, a plunge that cost investors some $1 trillion. Stocks came roaring back late in the session, despite a dim outlook from the Federal Reserve about the state of the US economy.

The Dow, NASDAQ, and the S&P 500 all posted very impressive gains. Most European markets also managed to shake off days of sharp declines after an incredibly rocky ride. Stocks see-sawed on Tuesday before closing broadly higher.

Asian markets were also volatile, but ended Tuesday in the red. Hong Kong in particular took a drumming, closing down nearly six percent.

As bad as these numbers seem, they were worse earlier in the session. Let's go to Wall Street. Investors had to sweat a day of wild swings but were rewarded in the end with an impressive rally. Richard Quest joins us from New York with some details.

And over the day, it really was a classic roller coaster. I know it's a cliche, Richard, but it was down, wasn't it, an incredible level? And then it came flying back up at the end.

RICHARD QUEST, CNN BUSINESS CORRESPONDENT: Yes. The Dow moved during the course of the day by a range of 600 points, which is fairly exceptional. And one of the greatest movements came after the Federal Reserve announced that it was keeping interest rates low and would do so until 2013.

It was a pessimistic report from the US Central Bank. It talked about disappointing growth, it talked about worries. And that is -- you see where at just about 2:00, 2:15, you see where we go down quite sharply? That's the Fed's statement being released.

But then -- and frankly, no one really can put a reason on why -- all of a sudden, stocks decided to take off again, and that massive rally up more than 430 points.

I think the reason is this. Firstly, interest rates are going to remain low. We know they're going to remain low. There'll be an element of certainty about it now. The Fed says it will do whatever it has to to actually protect the economy.

And secondly, there was no fundamental reason why yesterday the market fell out of bed. So, if it went down for no reason -- you know where this goes, Max -- up it goes again.

FOSTER: Yes, we do like calm markets, of course, but what is it that's going to affect the mood which is dictating much of these swings, what's going to affect the mood in the coming days? What should we worry about? What should we look out for?

QUEST: Very strong question. And I think what you don't look for is the volatility. The last 48 hours has shown that these markets are exceptionally volatile, intraday volatility is the enemy of sensible investing.

What you should look for is the economic numbers. Now, they're not going to be good in the US or, indeed, in parts of the euro zone, like the UK -- not euro zone, European Union -- like the UK, or euro zone like southern Europe.

But as long as they're showing growth and as long as they are not heading back towards recession, you're going to be OK.

At the moment, keep your eyes on those numbers. That is where the direction of the market will go over the medium to long term, Max.

FOSTER: OK. Well, investors really need -- need nerves of steel right now, don't they? Richard, stick around, because we're just going to have a look at these market fluctuations and really how they've affected the mood around different parts of the world, because it really is all about mood right now. Our CNN crews hit the streets.

(BEGIN VIDEOTAPE)

TEXT: HONG KONG

UNIDENTIFIED FEMALE: I think it's a little worrying for -- but I think Hong Kong's going to be OK, hopefully, because I think it's so international, it's connected to all different continents.

So, I think at the moment, I think it's going to stay a little stable. Maybe go down a little bit, but I think Hong Kong, just concerning Hong Kong, I think it's going to be OK.

UNIDENTIFIED MALE: Yes, yes. I am worried about the market, and the market down in Hong Kong, down 800 points today. I think people are just panicked now.

TEXT: PARIS, FRANCE

UNIDENTIFIED MALE (through translator): Scared? No, because the economy will continue. It has always had ups and downs.

Angry? Yes. Angry towards the governments, because we have been aware of the situation in the US for decades. Now, they have their backs against a wall, and maybe it will force them to react in a positive way.

UNIDENTIFIED MALE: Italy is really, really bad at the moment, regarding the economy and perhaps the government, because they're all wrong since the beginning. I came from South of France. I used to work in Monaco, and all the Italian people are so scared, so yes. I'm more confident about France.

TEXT: ROME, ITALY

UNIDENTIFIED MALE (through translator): I'm worried about my sons, about everything. Now it's America that's near default, and that really worries me.

UNIDENTIFIED MALE (through translator): Our situation is not positive for sure, but let's hope for quick domestic growth. It's a vicious circle, though, because Italy is not independent. It depends on the foreign markets.

UNIDENTIFIED MALE (through translator): We're all anxious about the measures, especially as it's always the little guy who gets hurt rather than the big companies, who always manage to find a way out.

TEXT: LONDON, ENGLAND

UNIDENTIFIED MALE: A total absence of confidence all around. Nobody quite knows what to do. And have you seen anybody? Nobody's coming forward with great solutions. There are all sorts of solutions, but none of them sort of hang together. None of them have sort of coagulated into any sort of movement, have they? Yet.

UNIDENTIFIED FEMALE: No one seems to have any confidence in anything at the moment. Before, there would always be at least one country that would say, "OK, things are bad, but yes we can turn it all around." But everyone seems to be a bit gloomy at the moment. But I guess in time it'll work out.

(END VIDEOTAPE)

FOSTER: A really -- message really, isn't it, Richard? There's so much uncertainty, which is what investors and the markets hate. But would you say the uncertainty is greater in the US or Europe, which is playing into the US all the time?

QUEST: Both. You can't say one without the other. The ECB acted and bought Italian bonds. The Fed's going to keep its interest rates low to 2013. They're both feeding into the equation.

I think what you do need to look at it, though, looking underneath the Fed's decision, there is now a split of opinion between those members of the Federal Reserve who believe this very low interest rate must be telegraphed until 2013, and a sizable minority of the Fed who are now saying, no, they are worried about inflationary pressures and they're arguing, really, that the Fed might be doing too much to actually get a monetary policy.

Now, that split in the Fed is slightly mirrored in the Bank of England's own monetary policy committee.

So, not to get into the thick weeds of interest rates, but put it this way, Max. The interest rate policymakers are now in one of the most difficult scenarios. They've got to keep growth going to try and -- to try and create more jobs. They've got to play devil with inflation, without letting it out of control.

And at the same time, they've now got to make sure that stock markets and asset prices and bond markets don't clobber them on the side. This is just about as difficult as I've ever seen it to do.

FOSTER: And the policymakers and the politicians are the ones that -- the only ones that really can bring confidence back, right? Because we don't really know where things are going, but they can instill a sense of confidence.

Do you think they're letting down investors right now? Because in Washington, they're not agreed, in Europe, they're not agreed. And the policymakers, the central bank governors, seem to have the best grasp, but they can't act in the way that they want to always.

QUEST: And even central bank governors are now starting to have differences of opinions.

I think what they've got their minds on, the Fed's statement, and I've got it in front of me now. The Fed has a dual mandate. Price stability, which is inflation, and maximum employment.

And what the Fed is going to be concentrating on, clearly, in the next few months is to promote ongoing recovery, to try and get jobs moving again. And I think we've seen a little bit of that today in what they announced with 2013.

For many people, it won't go far enough. But frankly, they are all just about tapped out, and I think it's jobs, jobs, jobs on both sides of the Atlantic where this battle is going to be fought in the future.

FOSTER: Richard, thank you very much, indeed, for analysis there. Back with you, of course, throughout the week.

Coming up in 60 seconds, though, look carefully at the cars in one of Russia's biggest port cities and you'll notice something different. Stay tuned to find out how our Gateway series continues. That's next, right here on CONNECT THE WORLD.

(COMMERCIAL BREAK)

FOSTER: To many of us, Vladivostok seems a far-flung and mysterious part of the world, but it's closer than you might think. Half a million people live at Russia's biggest Pacific port, a massive gateway to Europe and to Asia.

It's still part of Russia, but seven time zones away from Moscow, and you'd be forgiven for thinking you're elsewhere. Vladivostok isn't just famous for ships, it's also a big part of Russia's car industry. But as Becky explains, hardly any vehicles get made there.

(BEGIN VIDEOTAPE)

BECKY ANDERSON, HOST (voice-over): Vladivostok. This maritime city with a military past, known for its Soviet sailors and the Pacific Fleet, now also known for something else. Cars.

Look very carefully at the roads in this Russian city, and you'll notice something. The vast majority of the cars have the steering wheel on the right.

Asian car imports from the likes of Japan and South Korea are big business in Vladivostok.

(MAN SPEAKING IN RUSSIAN)

ANDERSON: Most of them end up here, Green Corner, so called because of the green dollar bills that the trade brings in.

The dealers didn't want to talk to us on camera, but they told us 50,000 secondhand cars are here, waiting to be sold.

ALEKSANDR, CAR BUYER, GREEN CORNER (through translator): I'm looking for a car to buy. I want one from Japan. These cars are good quality.

ANDERSON: The demand for foreign cars is high. Spare parts are easy to come by. New Russian models can cost more than twice the price.

ALEKSANDR (through translator): They are definitely cheaper than left-hand drive cars.

ANDERSON: These dealers say they used to import hundreds of thousands of cars a year until an increase in import tariffs in 2009.

At Vladivostok automobile terminal, vehicle numbers are down on previous years, but still strong.

ALEKSEY DOVBYSH, HEAD OF PRESS, COMMERCIAL PORT OF VLADIVOSTOK (through translator): Our car terminal can operate with 100,000 cars a year, now. But talking about imports, it's still mainly containers and vehicles.

ANDERSON: Ships still arrive with cars piled high on deck and are received at customs at anytime of the day or night.

ANDREY SHAPOVAL, CUSTOMS, COMMERCIAL PORT OF VLADIVOSTOK (through translator): Last year, we processed 90,000 customs declarations. After the cargo is cleared, it is released and can be transported to anyplace in Russia.

ANDERSON: Across the harbor is the Sollers car factory. This Russian motor manufacturer set up shop here in 2009 building Korean cars.

This factory is the modern face of Vladivostok's car industry. Containers of car parts arrive at the dock, pass a few meters through customs, and then onto the workshop, where they are assembled. Then, just a short stretch to the railway, and the rest of Russia.

ALEXANDER KORNEYCHUK, GENERAL DIRECTOR, SOLLERS FAR EAST: From Korea to Vladivostok, then assembled, tested, and transported by Trans-Siberian railway, 31 days. We consider this our main competitive advantage.

ANDERSON: One hundred and thirty-five Korean SangYong cars are assembled here each day.

KORNEYCHUK: We decided that from the proportion of the quality and the price, the Korean and some Japanese cars are probably the best proposal for our potential customers.

ANDERSON: Finished cars are put through their paces.

VERONIKA BOGORODITSKAYA, TEST DRIVER, SOLLERS FAR EAST (through translator): We test cars the same way consumers would. We're looking for defects which annoy drivers, both on an aesthetic and technical level.

ANDERSON: This efficient operation is made possible by the seamless flow of components from sea to land to rail, the geographical advantage of Vladivostok. In 2010, 13,000 Korean cars were made here.

The Japanese brand Toyota will start production in 2012, the same year that Vladivostok will host the Asia-Pacific Economic Cooperation conference, increasing further trade potential for this Russian city.

(END VIDEOTAPE)

FOSTER: Still ahead, some call them the unsung heroes of war. Every day, health workers are putting their own lives at risk to save others in conflicts around the world. We'll have a report from Libya, the first in our special series.

(BEGIN VIDEO CLIP)

(GUNFIRE)

(END VIDEO CLIP)

(COMMERCIAL BREAK)

FOSTER: They not only risk getting caught in the crossfire, but they can also become the targets themselves. This week, we're taking a special look at medial workers in war zones. We want to warn you that today's report contains graphic images that you may find disturbing.

Atika Shubert begins our series with some dramatic footage of a firefight in Libya.

(BEGIN VIDEOTAPE)

(GUNFIRE)

(MEN SHOUTING IN ARABIC)

(PEOPLE SCREAMING)

(GUNFIRE)

ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): The Libyan rebel fighter collapses to the ground during a firefight in Misrata. Shrapnel has ripped through an artery in his leg, and he is rapidly losing blood.

He is dragged into an abandoned building that doubles as an emergency operating theater.

(MEN SHOUTING)

SHUBERT: As medics battle to save the man's life, they come under fire again.

The patient dies moments after being smuggled from the building.

These graphic images captured by freelance photographer Andre Liohn provide a startling insight into the conditions that health workers have to operate under in current conflicts.

(MEN SHOUTING)

SHUBERT: A report published by the International Committee of the Red Cross claims that attacks on health facilities and personnel are becoming increasingly common.

The spotless buildings and manicured grass of its headquarters in Geneva are a long way from the war-torn streets of Misrata, but the staff here are all too aware of the changing nature of conflict.

(MEN SHOUTING)

(GUNFIRE)

(EXPLOSIONS)

SHUBERT: The organization has been chronicling the effects of conflicts on all aspects of life since its formation. Pictures from its archive reveal that health workers have always been at the heart of most major battles.

Its director of operations believes that protecting health workers and the infrastructure that they need to work is essential in any civilized society.

PIERRE KRAHENBUHL, DIRECTOR OF OPERATIONS, ICRC: We've really become increasingly concerned about the high levels of violence that affect the provision of health care in war zones around the world.

Actually, based on the work that we do in many conflict zones around the world, the close proximity to people, we've come to believe that this is one of the biggest humanitarian challenges and, at the same time, one of the most overlooked that we currently face.

SHUBERT: The former surgeon general of the British armed forces says one of the main challenges health workers face is convincing warring parties of their neutrality.

LOUIS LILLYWHITE, FORMER SURGEON GENERAL, BRITISH ARMED FORCES: There is no wounded enemy, there is no wounded Taliban, but there is but a wounded patient. That is not that difficult to actually maintain that neutrality as that is defined in that sense.

Do those doctors, when they see things happening that ought not to be happening, that they don't think should happen, and perhaps there would be general agreement they shouldn't happen, do they speak out? Because the moment they speak out, they have become partisan.

SHUBERT: During our conversation, he recalled conditions during a battle in World War II.

LILLYWHITE: The main British hospital in the Battle for Ireland was actually on the front line between the Germans and the British. And the hospital occupied the top floor and carried on functioning, and the fighting occurred on the bottom floor.

But both the Germans and the British respected the neutrality of the area that was actually reserved as the hospital. And it was on the basis that they did not participate in any military activities at all.

SHUBERT: The current conflict in Afghanistan has been going on for almost a decade. For two years, Michiel Hofman from Medecins Sans Frontieres was at the heart of the action. He believes that medics can only operate if there is no military presence whatsoever.

MICHIEL HOFMAN, MEDECINS SANS FRONTIERES: It is the old concept of the gun-free hospital. This concept was there for a reason. Once there is guns inside a hospital, the hospital is no longer a neutral zone, and it will get attacked by different military forces.

SHUBERT: From the field hospitals that were in place during the Russian-Turkish War in 1877 to the emergency operating theaters that are hastily created in modern conflict zones, medical staff have always been at the heart of major battles.

In the majority of conflicts, their neutrality has been respected but, now, the Red Cross believes health workers are in danger of becoming war's first casualties.

(END VIDEOTAPE)

FOSTER: Well, in that report, you saw some dramatic and disturbing video, of course, that was filmed by freelance photographer Andre Liohn. And tomorrow, he'll tell us why he chooses to capture conflicts through the eyes of health workers and what he hopes to achieve.

Now, qualifying to compete in a world championship is an achievement most athletes only dream of. For Oscar Pistorius, the dream was nearly out of reach, but no longer. In tonight's Parting Shots, take a look at how this sprinter gives his competitors a run for their money.

Nicknamed the Blade Runner, the 24-year-old will be the first amputee sprinter to compete at a world championship later this month. He had both of his legs amputated when he was 11 months old because of a birth defect, and he used carbon fiber prosthetic limbs to get around.

He was originally banned from competition when track and field international governing body ruled that his blades gave him an unfair advantage. But that ruling was overturned and, last month, the four-time Paralympic champion met the Olympic qualifying time in the 400 meters.

If he can do the same next year, we'll be seeing him here, in London, for the Olympics next summer. It will be an extraordinary race.

I'm Max Foster. Thank you for watching. The world headlines and "BackStory" follow this short break.

END