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Cameron's Crackdown; Gold Rush; Who's To Blame?; China: High-Speed Slowdown; Will There Be A Football Strike?; Tiger Tanks

Aired August 11, 2011 - 16:00:00   ET


MAX FOSTER, HOST: Cameron's crackdown -- the British prime minister promises swift justice, as police round up more than 1,000 suspected rioters.

Speaking out -- the victim of this mugging during the London chaos now has a message for his attackers.

No escape -- why some children in Somalia are getting sicker when they reach aid camps.

And gold rush -- inside the trade for what some consider the safest haven of all.

These stories and more tonight as we connect the world.

We begin, though, with the whiplash on Wall Street. The closing bell has just capped yet another dramatic day. The Dow soared around 400 points. It's been an extremely volatile week and the only thing we can say with certainty is the roller coaster rolls on.

Richard Quest joins us.

I mean I -- you can't really grab hold of anything here, can you?

But it's an interesting day.

RICHARD QUEST, HOST, "QUEST MEANS BUSINESS": Oh, come on. It's -- it's more than just that. It's been a lively session, with gains -- we're off the top of the session. I noticed on one of those numbers, we were up nearly 500 points at one point.

So we gave back a bit just toward the end.

Why today?

Look at that, up 422, a gain of 3.9 percent. Would have been considerably higher.

Why, today, did it go up?

Because it didn't go down. We had a very strong session. Down yesterday. A bit of a bounce back today. But the fundamentals do not justify this sort of move. It was a bit of -- better numbers on the jobless claims and rumors about Europe, whether France was going to be downgraded again. That was bescotched (ph), French banks.

What we're seeing is volatility pure and simple.

FOSTER: It's interesting, isn't it, because the economics is obviously dominating things right now. But the reporting season, the corporate figures have actually been quite good. So...

QUEST: Very good.

FOSTER: -- people are grabbing...

QUEST: -- very good.

FOSTER: -- grabbing hold of that a bit?


FOSTER: Are they?




QUEST: Well, Cisco. Right.


QUEST: Cisco Systems' results were good.


QUEST: They -- that's not the reason. You've got to keep your eye on the underlying weakness in the economies, which has caused people to test the low levels of markets. And then when they find that level holding, it bounces back up again. This volatility, I can't remember seeing in 15 or 20 years.

FOSTER: As you say, it is either up or down and there is a bit of an overreaction either way.

Are we getting a sense of which way is going to go in the morning, by the end of the day?

Because yesterday, it kept going down. Today it kept going up.

Are we getting a -- is there any sort of pattern falling in the stock market?

QUEST: What we need to look for is GDP numbers, unemployment -- this is in the U.S. -- unemployment numbers. You need to see how this committee, the super committee in the U.S., is going about its work.

In Europe, we need to make sure that the ECB's purchase of Italian bonds continues. And fundamentally, let's see what Sarkozy and Merkel come out with when they have their meeting next week about further European integration.

Those are the fundamentals that will ultimately move this direction -- this market in one direction, not just the bling, bling, bling.


FOSTER: -- ordinary times.

Richard, thank you very much, indeed.

We'll have more on the markets later in the show.

But first, there weren't enough police on the streets initially and their tactics didn't work. But that was an admission that came from Britain's prime minister today, as he -- he promised the country would recover from the violence which has swept through its inner cities.

As the arrest of suspected troublemakers continued, David Cameron warned those responsible that there were few places to hide.


DAVID CAMERON, BRITAIN PRIME MINISTER: If you've had your livelihood and property damaged, we will compensate you. We are on your side. And to the lawless minority, the criminals who have taken what they can get, I say this -- we will track you down, we will find you, we will charge you, we will punish you. You will pay for what you have done.


FOSTER: With just a year to go until the London Olympics, Mr. Cameron says Britain had to show it could move forward from all this violence.

Phil Black is at Westminster, in Central London -- Phil, what else did the prime minister have to say?

PHIL BLACK, CNN CORRESPONDENT: There are a number of suggestions to help police tackle some of the new practical problems they experienced in policing these riots. There was a list of them.

First of all, interestingly, he announced that the government and the police are going to look at whether or not it is possible to block or shut down social networking sites or communications services like the BlackBerry messenger services, in cases where it's believed they are being used to coordinate crimes. Police say they were used for that during these riots. It enabled the rioters to stay a few steps ahead of them, made their job a lot harder.

If this is possible, it's likely it's going to take quite a bit of cooperation from the companies themselves.

Mr. Cameron said the police will also be empowered to order people to remove facial coverings or masks in instances were crimes are being committed. There's a little bit of detail here that still needs to be worked out, specifically, how you define that sort of facial covering, just when police will be able to issue those orders and what will happen to people who deny them, especially if there happens to be hundreds of them on the streets at any particular time.

And the issue of gangs was something that David Cameron spoke about at length. He said that tackling the gang problem -- street gangs will become a national priority. Departments across government are going to come up with a plan for tackling this. And he said Britain would also follow the advice and the lessons learned by other countries, like the United States, that have made real progress in tackling gang culture.

He specifically mentioned a name by the name of Bill Bratton, who's the former police chief of both New York and Los Angeles and who is credited with making real progress with his anti-gang strategies.

Bill Bratton says that he hasn't been contacted by the British government just yet, but he believes he can help them. And if he's asked to do so, he will -- Max.

FOSTER: It's lucky, he says he's available and he wasn't actually warned that he would be helping out the British government. But bring us up to date on a story. We've reported on this story of this young man being mugged on CCTV. It's a horrendous scene.

But we've had an up -- update on that, haven't we?

BLACK: Yes, this was one of the examples of violence that David Cameron himself has referenced a number of times. A young man who was beaten up on the street. Smoot rioters then stopped, pretended to help him but actually robbed him while they were pretending to offer him assistance.

This was captured on video. It's been seen from around the -- it's been seen around the world and really has triggered a global response.

Take a look.


UNIDENTIFIED MALE: I'm actually helping him up.

DAVID CAMERON, BRITAIN PRIME MINISTER: When we see the disgusting sight of an injured young man with people pretending to help him while they are robbing him, it is clear there are things that are badly wrong in our society.

BLACK (voice-over): It has become one of the defining images of the London riots.

UNIDENTIFIED MALE: But aren't these bad? (ph)

BLACK: Bloodied and dazed after being attacked by a mob, Malaysian student, Ashraf Haziq, is helped to his feet...

UNIDENTIFIED MALE: And he's just going from his (INAUDIBLE).

BLACK: -- only to be robbed.

ASHRAF HAZIQ, RIOT VICTIM: (INAUDIBLE) because it happened somewhere here. I was looking in (INAUDIBLE). So I don't know what (INAUDIBLE) to happen.

UNIDENTIFIED FEMALE: He said you realized that the people were taking things off your rucksack when they were pretending to help you?

HAZIQ: I realized that.

BLACK: Despite surgery on a broken jaw, the 22-year-old accounting student has recounted his ordeal, claiming his attackers threatened to stab him.

HAZIQ: I felt sorry for them, but it we are really sad, because (INAUDIBLE), they were -- they were children. They were boys about -- he was in primary school, I think. It was quite shocking, you know, because I've had (INAUDIBLE) to be someone older. But then this was a big boy.

BLACK: Images of the mugging were posted on YouTube and have gone viral. Outraged, people across the globe have used social media to rally around Ashraf, calling for donations and justice.

Everything from a new PlayStation, a replacement bike to airline tickets and dental work has been offered to the injured yet grateful student.

HAZIQ: Thank you. It was very nice of you to help me. I really appreciated it.

BLACK: Mostly, Ashraf is being sent messages of support. From New Zealand, this Facebook comment: "We were disgusted and horrified to see what happened to you."

From the UK: "I am ashamed to be British today."

And from Somalia: "Get well soon, Ashraf."

DATUK ZAKARIA SULONG, HIGH COMMISSIONER OF MALAYSIA: I feel that there are lots of British people who wants to see that the country continues to be peaceful. They feel equally responsible to what happened to him. And they can't see how this can happen to a boy from Malaysia in the UK.

So to -- to express that key (INAUDIBLE) came out in a big way in trying to do something for him. And -- and I believe this -- this show -- a show of concern are genuine.

BLACK: Ashraf was attacked less than a month after arriving in the United Kingdom on a scholarship. In that space of time, he has seen the worst and the best of British culture.

But he intends to stay on.

HAZIQ: I'd like to finish my study here. I will finish my study here and then after I finish it, then I'll return back home. That will be after two year's time.


BLACK: So Ashraf there insisting that he doesn't hold a grudge, he actually feels sorry for some of those rioters and he has now been released from hospital.

The police, though, say they have made an arrest in connection to that assault -- Max.


Thank you very much, indeed, for that.

Well, some have suggested that the violence was carried out by young people, the ones you saw in that video, for example, who are out of work and out of luck.

But the British prime minister says poverty isn't to blame. Instead, Mr. Cameron points the finger at a culture which fails to teach children right from wrong.

So want do Britain's teenagers think of all this?

Well, Atika Shubert went to find out.


ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): As Britain reclaims its streets, many are now asking, how did a protest over the shooting of 29 -year-old Mark Duggan in North London trigger a countrywide looting spree?

Some have pointed to a yawning gap between rich and poor. Youth unemployment is at record levels. One in five between the ages of 16 to 24 are out of a job, says the Office of National Statistics.

On Monday night, at the peak of the violence in London, this young man attempted to explain his anger to CNN.

UNIDENTIFIED MALE: I love England, everything about it, roast dinners, whatever, blah, blah, blah. But what I'm trying to say to you, sometimes there's -- there's like, you know, like -- there's like -- there's not a fair balance and we're getting the brunt of it. You have to start doing something for people like us.

SHUBERT: (on camera): On Thursday, Prime Minister Cameron told MPs the problem was a culture of violence -- teens that don't know right from wrong, absentee parenting that leads to gangs.

But teenagers on the street told me it was more than that.

(voice-over): Nineteen-year-old Dominique smith says she understands the frustration and anger of those who rioted because she believes her brother was also a victim of police violence.

DOMINIQUE SMITH, BRITISH TEENAGER: (INAUDIBLE) a lot of anger in the community. You know, I think it's more because no one is listening to us. Yes, I mean no one -- (INAUDIBLE) we can't get our point across. Nobody cares. It's getting so a lot of people are just thinking, you know, what's the point in still talking and trying to get our point across, we might as well just mash up the place, then because that's when we're going to get hurt. But they don't understand, no one is going to listen to anybody when you're mashing up the place, getting (INAUDIBLE) or looking like you're some hooligans.

SHUBERT: Others, like 18 -year-old Kieza Silvera de Sousa, say that frustration doesn't justify the violence that followed.

KIEZA SILVERA DE SOUSA, BRITISH TEENAGER: This is actually silly. I mean people are saying that it's because someone got shot by the police. OK, fair enough, someone got shot by the police and it was probably unjust. But that's no reason to ruin people's livelihood, you know, burning down houses, going and breaking people's shops. At the end of the day, that's not going to solve anything. That's not going to stop the police from, you know, being unjust.

SHUBERT: Cameron has issued tougher police measures and a gang injunction, market it illegal to engage in gang activities. But that anger and resentment is still on the streets and the government must now find ways to ensure the violence of this week doesn't flare up again.

Atika Shubert, CNN, London.


FOSTER: Where does the government even begin, though?

These are big issues.

To discuss that, I'm joined by social outreach coordinator, Alvin Carpio.

He works with young people in some of the areas of London worse hit by the violence over the past week.

Thanks so much for joining us.


FOSTER: David Cameron firmly pointed the finger today at boys, he said, from dysfunctional families in gangs.

Are they at the heart of this?

CARPIO: Well, in terms of why this happened, I guess we can point out two things. I mean one of the things is that this and everything that happened collectively was due to the individual decisions we made as people. Self-discipline is doing what should be done when it should be done whether you like it or not. But...

FOSTER: What do you mean, self-discipline?

There's -- there's been no self-discipline here, has there?

CARPIO: Exactly. And this is the problem, is individual choices that we make in response to what was happening in the crowds. And I guess when you think about the individual we're then talking about, actually, the community. We have often talked about how these people who are on the streets aren't members of the community.

But what is missing in the debate is, actually, this is a community unto themselves, as well. And, actually, the people who are doing this have their own code of conduct, which is very separate from the law and where loyalty is so important.

And so when one person decides to break a window, it's disloyalty to not join in with that person and it's not backing up that person.

FOSTER: So you wouldn't say that -- this community that you're talking about, you wouldn't say the whole community shares the -- the need to go and break into a shop?

It's just the...


FOSTER: -- there's a dynamic there which is driving them to do that?

CARPIO: Yes. I guess it's the crowd mentality. And I guess one of the things that we are seeing talked about, when you're talking about who is to blame, is when we are looking at a minority of people who are doing this. And we look, then, at the response of the community. You know, on Sunday, when we gathered, 30 people, to decide what we're going to do about this. And then in less than 23 hours, we've gathered 200 people onto the streets of Tottenham to say that this is not what we stand for. We are peaceful, law-abiding citizens who want to make changes in our community and do not at all condone what was happening in -- in Tottenham. And that's exactly who the community is.

And I think it's our responsibility now to see that, you know, we, as a community under people in power, now have a choice and there are decisions to be made, which are so important. And it's vital among the community.

FOSTER: Well, one of the choices...

CARPIO: I'm sorry. Just let me finish.


CARPIO: And, actually, we cannot always build the future for our youth. But we can build the youth for our future. And I guess our responsibility now is to think about the young people...

FOSTER: Well, let's talk about...


FOSTER: -- that now, because David Cameron is saying he's going to throw the full force of the law at people found guilty.

CARPIO: Right.

FOSTER: And they really have been, haven't they?

We've got one girl, an 11 -year-old girl in Nottinghamshire has been put in -- she was charged for an offense and she's been put in a cell. That wouldn't happen normally.


FOSTER: And that's a good response, though, isn't it...


FOSTER: -- to deal with the criminals in a hard way and to be seen to be dealing with them in a hard way, right?

CARPIO: Yes. In terms of setting precedents, I think there need -- these cases that are going through the courts now, the people who are responsible for causing hellish nights where mothers and sisters -- my sister herself, fearful of going out at night, they need to be punished for the things that they have done accordingly. But also to set an example that this can never be accepted ever again.

FOSTER: But isn't that almost enough?

Why do we then have to go into a whole social arrangement with...

CARPIO: Because...

FOSTER: -- these groups?

CARPIO: -- in the magistrates, the -- the maximum sort of penalty is six months. And not many will go on to further than that. And when they come out, we need to think about what it is we do.

And I think as a community, we have a responsibility as citizens, as police, to keep safe and politicians to lead, to make sure that when they come out, we're working with them.

As we mentioned, this is a community and we need to work with them in order to find out what they want to change but also how we can help them to get out, because they do have a choice still to make. And their punishments will make them think about those choices.

FOSTER: OK, Alvin, we're going to be talking about this a lot in the future, I think, because it's a priority now for the government, isn't it?


FOSTER: Thank you very much, indeed.

Coming up, Syria defies international condemnation, more die as the government's crackdown against protesters continues.

Then, Tiger Woods shoots his worst ever score in the opening round of a major championship.

And the new gold rush -- why investors are flocking to the yellow metal.


FOSTER: I'm Max Foster in London.

You're watching CONNECT THE WORLD.

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

Let's start with some political news just into CNN, in fact.

Texas Governor Rick Perry will run for the U.S. presidency. A Republican source tells CNN that Perry will announce this Saturday that he's seeking the party's nomination. A recent CNN poll found that Perry could be among the frontrunners. But former Massachusetts Governor Mitt Romney is still considered the favorite. Opposition groups say that at least 22 peopled have died in clashes with government forces in Syria. The latest military action comes despite growing international pressure on the regime to end its crackdown on protesters. Syrian troops rolled into the northwestern city of Saraqib earlier this morning, just hours after calls were made at evening prayers for President Bashir Assad to step down.

Five NATO soldiers have been killed by a roadside bomb in Southern Afghanistan. The Pentagon has confirmed that all of those who died in the attack were U.S. troops. More than 50 service personnel have been killed in Afghanistan so far this month. The recent surge in casualties comes as NATO seeks to gradually hand over responsibility for security to Afghan forces.

Palestinians are furious with plans for new construction in East Jerusalem, saying Israel is trying to, quote, "permanently annex occupied territory." Israel's interior minister has given final approval to build 1,600 new homes in East Jerusalem and will approve an additional 2,700 within days. Israel says the decision was economic, not political, meant to address a housing shortage. Palestinians want East Jerusalem as a capital of a future state.

China's plan to invest billions into its bullet train system are effectively on hold, three weeks after a crash that killed 40 people. The government is announcing major changes to the -- to the railway that was supposed to be a symbol of economic power.

Eunice Yoon has more.


EUNICE YOON, CNN CORRESPONDENT: China's high speed rail network is meant to fast track the economy. It's been hailed here as a symbol of the country's economic might.

But after an accident left dozens dead, hundreds injured and the public outraged, authorities here decided to put a brake on the network's rollout.

The government has decided to halt all new rail construction. They're going to be conducting more safety inspections on existing lines and they're also going to slow down many of the trains, a measure that many analysts said should have been done long ago.

PROF. SUN ZHANG, RAILWAY EXPERT: It's not the faster the better. We have to take safety, economics and the environment into consideration to decide the best speed.

YOON: China has relied on rail networks to help steer the economy through the global economic crisis. The authorities have earmarked over $400 billion over the next couple of years to create the world's largest high speed rail network. But the accidents, the train delays, as well as the widespread allegations of corruption, have shattered the public's confidence and led many people to wonder if China's economy is moving too fast, too.

Eunice Yoon, CNN, Beijing.


FOSTER: Well, meanwhile, an accident in China left a woman buried under nearly 20 tons of garlic and onions. A fully loaded truck skidded and flipped over, spilling its cargo onto the street. Look at that.

Rescuers did manage to dig out the woman, though. Amazingly, she walked away with only bruises. Police say the driver slipped out of the truck and left the scene. It's unclear what caused the accident, but a bit of a clear up going on there.

Now, coming up, we are counting down to the new football season, but it looks like some fans may have to wait longer. The stars of Barcelona and Real Madrid could lead Spanish players out on strike. That's in just a minute.

And from golden balls to the gold standard, why a precious metal is trading at record highs.


FOSTER: Barcelona and Madrid are two of the most glamorous names in world football. The new season is due to kick off in just over a week. But instead of entertaining the fans, stars like Lionel Messi and Cristiano Ronaldo could be standing on a picket line. Well, not quite, but in effect.

Footballers from Spain's top two divisions held a news conference to announce that they are likely to go on strike.

"WORLD SPORT'S" Don Riddell joins me from -- from -- where are you?

Over here.


FOSTER: Where are you?

RIDDELL: I'm right here.

FOSTER: Where?


FOSTER: Don? You've gone to Atlanta?

Now I can't find you in the studio.

RIDDELL: I'm here. I'm here.


FOSTER: Let's just move on seamlessly.

What's the problem...


FOSTER: Why are they going on strike just before the football season?

Stop laughing and carry on.

RIDDELL: Well, it's a good time for them to go on strike to make their point. The La Liga season, Max, kicks off in just nine days time and the likes of...


RIDDELL: -- Messi and Ronaldo aren't particularly hard up, and we know. But there are some 300 players from Spain's top two divisions who say that they haven't been paid, their owed money. They're not looking for more money, they're just looking to be paid what they're owed. Within the last couple of years, some 22 Spanish clubs have been so financially strapped that they've had to pursue either bankruptcy or receiver -- receivership proceedings.

So it's not a good situation in Spanish football at the moment. And the players have said, you know, we're all going to stand together and until we're paid or until there's some guarantee that we're going to be paid, we're not going to be playing. And the first few weeks of the Spanish season are in jeopardy at this point.

FOSTER: And Tiger is having a pretty bad day, as well, isn't he?

We were talking about him yesterday and how things are going terribly wrong for him in terms of sponsorship. But I mean it's gone from bad to worse, right, today?

A terrible day for him.

RIDDELL: Absolutely. I'll be honest with you, Max, we've been talking about Tiger Woods all week. And I vowed when I came to work today, I said I'm not going to talk about Tiger Woods unless he does something really, really good, unless he deserves it.

Well, he's done something really, really bad, so we still have to talk about him.

For the fourth day running, he has had an absolute shocker at the last major of the year, the PGA Championship. He was seven over for his first round. There's a very, very good chance that he's going to miss the cut.

He had three double bogeys during his round. He was spraying the ball all over the place. And he might well not be around for the weekend. This is one of his worst ever rounds in a major tournament.

Let's hear what he had to say about it.


TIGER WOODS, GOLFER: I got off to a great start today. I was three under early. I was having mechanical thoughts through those -- those holes. And I figured I was three under, I can start letting it go now and just play by instinct and feel. And it just screwed up my whole round. I wasn't at the -- I'm not at the point where I can do that yet.


RIDDELL: Well, from seven over to seven under, you're looking at the tournament leader. That is the 44 -year-old American, Steve Stricker. He had an absolutely phenomenal day. He didn't drop a shot and he made seven birdies, Max, to card a 63, matching the lowest ever score in a major tournament. Not bad for a guy that missed the cut of this event two years ago.

And, Max, it really has been a dramatic day. The other big talking point is the tournament favorite, the youngster, Rory McIlroy, he looks to have pretty badly injured his wrist on only the third shot. His ball was trapped up against a tree root. He tried to play the shot. You can see how it felt when he played that shot. And he's not in a good way. He's been icing his wrist between every shot that he's played so far. He's at the halfway stage and he was even par, which is not a disastrous score, but clearly he's in some difficulty.

FOSTER: It's all going on in golf, isn't it?

Don, thank you very much.

Good to see you, literally.

Now, with the stock markets in a tailspin, the rush is on for the world's most alluring metal. We'll take you to the depths of the open outcry pit, the frenzied ground zero for trading gold.

Also ahead, dreams of a better life cruelly destroyed. Famine victims who finally reach a refugee camp and discover their problems are far from over.

And later, documenting one of the most dangerous jobs in the world -- what life is like for an ambulance driver in a war zone.


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.

British police have raided homes to arrest people suspected of taking part in the riot which spread across the country. Prime Minister David Cameron warned troublemakers that they will be caught.

Iran is warning its citizens not to travel to the UK. In a statement, the Iranian government said if they must travel, they should avoid troubled areas and stay alert. It wants the UN Security Council to investigate the recent unrest.

Reports of new violence in Syria. Human rights activists accuse security forces of storming two northern towns today and killing anti- government protesters. Witnesses say about 200 opposition members have been arrested in Saraqib.

The US Department of Labor says 395,000 jobs filed new -- thousand people filed new claims for unemployment benefits last week. That's down by 7,000 from the previous week, beating expectations. It's the first time in four months that it's fallen below 400,000.

Another impressive comeback for stocks on Wall Street. The Dow soared 423 points today, or around four percent, to close at 11,143. Encouraging economic news helped stocks recover from yesterday's steep losses.

Well, this week, scenes like -- it seems like the markets have a case of schizophrenia. Huge gains one day, staggering losses the next. It's not just the Dow, but stock markets all over the world, in fact.

So, what is behind these wild swings? We're going to ask Felicia Taylor, yet again in New York, to explain this one. Because it feels a bit like yesterday, but everything was moving in the operation direction, Felicia.

FELICIA TAYLOR, CNN CORRESPONDENT: Yes, I have to tell you, Max, we haven't wild swings like this since 1987. You've got 400 points one way, and then 400 points the other way.

When I talk to traders pretty much around the world, the feeling is that, frankly, nothing has actually changed, and the volatility is expected to continue. That's really the problem.

The market is going to go back to fundamentals at this point, except for the fact that they're also still watching the headlines out there, so expect to see these wild swings as we move into the end of the week tomorrow. Many people are likely to take profits off of the table.

But another place where there's a tremendous amount of volatility has been in the gold market, and I had an opportunity to go down to the NYMEX here in New York and see firsthand what it's really like to be in the pit.


TAYLOR: Here we are at the NYMEX, where the gold market is hot and we've been trading higher up, and we've past $1800. Right now, we're seeing gold trading at about $1787.

Activity is beginning to pick up, and you can see it happening right now. This is the opening bell in the NYMEX pit. Here you go.

ANTHONY NEGLIA, TOWER TRADING, NEW YORK CITY: This is where the action is. This is where the game is right now. The game's in gold.

UNIDENTIFIED MALE: Please, $2,000, $2200 gold!


UNIDENTIFIED MALE: Hey, over there it's $2112 and trading's real live!

TAYLOR: How was the open?

NEGLIA: I can't smile. It's a little hectic right now, OK? We're just -- pretty much unchanged.

TAYLOR: Do you think that there's still enough buyers out there to bid up the gold market?

NEGLIA: Absolutely, absolutely. I'm looking for $1800 or better by sometime tomorrow.

TAYLOR: As you know, there's been tremendous volatility in the gold market, so what the CME group did last night was raise the margins by about 22 percent. Now, in dollar terms, that's about $1,000 per contract, so it's not that much when you think about it in dollar terms.

NEGLIA: The margin requirement that was told to us last night having a small effect, but I don't really feel that the strong ones are going to be affected by this margin.


NEGLIA: What you're seeing behind me is what they call open outcry. This is the way that most trading took place for many, many years until digital systems came into the marketplace, and where computers really took over.

But what you're seeing behind me is where actually eye-to-eye combat has to take place. There has to be a buyer and a seller on both ends of the transaction in order for it to take place, and literally people are writing things down on paper to confirm the trade.


TAYLOR: You're watching people going like this and like this. And this is a sell, this is a buy.


TAYLOR: We just had the equity market open at 9:30, we've got 30 seconds in. Are you seeing major buyers coming back into the marketplace? You told me earlier that we saw some central bankers buying for the last couple of months. What are you seeing today?

NEGLIA: Well, right now, we're not seeing any of that. There is a little bit of residual sell off now with the equity market opened up. When the equity market calms down, there is going to be a little selling pressure in the gold.

But selling pressure in the gold means what, Felicia? $1700, $1725.

UNIDENTIFIED MALE: That off fence! Double the ticket!


TAYLOR: How does it feel to be one of the hottest markets there is?

NEGLIA: Well, I'm enjoying it very much, OK? Like I said, I've been doing this for 28 years. This is the most excitement we've had in a long, long time. And as long as it doesn't cost me any money, I'll keep doing it.


TAYLOR: Talk about excitement in a marketplace. You literally can feel the anticipation and the flurry of activity when you're in a pit like that.

Gold did trade down today. It's now at about $1758, $1759, and that's what that trader was saying is that we're going to see those levels, but probably still go back to testing the highs that we've seen recently.

He was trading contracts for December near about $2100, so you can expect to see that the gold rush is definitely going to continue.

FOSTER: And Felicia, you -- I know you did your internship at the New York Stock Exchange. You live and breathe these trading floors, don't you? I mean, it must be fascinating for you to go to the gold trading floor, effectively --

TAYLOR: Well --

FOSTER: -- and see this sort of excitement, because it's not that exciting normally, is it?

TAYLOR: Well, you're right. I mean, I've been doing this for such a long time, and when I was 15 years old, I was a runner at the Chicago Board of Trade, literally running in orders for Sept beans, November wheat contracts, all that kind of stuff.

And it was so interesting to be a part of that, because you really learned so much about how the markets work, and the people. Like I said, that actual eye-to-eye contact is what has been fueling the marketplace for such a long time.

And you remember when we had the flash crash, and a lot of that was because of computerized trade? Traders were frustrated, because when you have that eye-to-eye contact, you know that the deal has been done. That's what has really fueled American markets in the last 30, 40, 50 years.

Frankly, I miss it. It was exhilarating to be there. I was so happy to go and visit.

FOSTER: It was a great report. Felicia, thank you very much, indeed.

Now, if you're fed up with the stock market volatility, some investors are actually heading for the exits. You can understand why when it's so nerve-wracking, you've got so much invested. Our next guest says this is no time to panic, though.

Peter Morici is the former economic director of the US International Trade Commission. He's now a business professor at the University of Maryland. Thank you so much for joining us.

I mean, it's so tempting, isn't it, to just bail out when you're seeing your investments go up and down? But I guess history teaches us you shouldn't sell at a time like this.

PETER MORICI, PROFESSOR, UNIVERSITY OF MARYLAND: Absolutely not. And I do believe that what's causing investors to panic are problems that can and will be resolved.

For example, I think the European debt crisis is much more containable, even thought it's very large, than the kinds of problems we had in 2008. The European Central Bank has within its power the tools necessary to stabilize the bank, stabilize the bond market, and give the restructuring that's moving at a pretty good pace in Europe an opportunity to work.

FOSTER: But the European Central Bank hasn't got that much left, has it? It doesn't want to keep printing money forever, because it knows it's just a temporary solution.

MORICI: Well, of course it's a temporary solution, but we ended up using the same temporary solution in the United States after the markets crashed, after Lehman Brothers, Bear Stearns failed, and then we had to bail out AIG, it's better to put the money in now before things come apart than to put the money afterwards and then have a depressed economy on your hands.

Also, they're replacing on the books of the banks, essentially, currency in place of bonds. They're both forms of liquidity. It's not particularly inflationary, because it's not going to get out there in the economy.

FOSTER: OK, they are doing that, aren't they? They are buying Italian and Spanish bonds, at last, which is what the markets wanted.

But if you look at the statements, they're doing so with gritted teeth. They don't feel as though they should be doing that, and that's in itself making investors unsettled, because they feel as if it's not going to be a long-lasting strategy.

Is that another problem? Is there a problem with the PR?

MORICI: Absolutely. The European Central Bank is going into this very, very reluctantly. But it's not an independent entity. Don't be fooled. It is -- it's dependent on its creators, the sovereigns of Europe.

At the end of the day, the European Central Bank only exists as long as they want it to exist, and that is that they have a euro.

My feeling is at the end of the day, the governments will realize that their only way out is to monetize enough of this debt to stabilize the markets, and then move forward with their restructuring program.

It's insane to force, for example, Italy into a restructuring or France into a restructuring because of a market panic.

FOSTER: In terms of what people should be doing with their money, it was fascinating seeing Felicia there with the gold traders, because people are piling their money into these safe havens, aren't they? And the Swiss Franc. Very excited about that.

But what should they do if they've got their stock portfolios, they may be heading towards retirement, even, and they're seeing big losses every day, even if they do get the odd gain?

MORICI: Well, most folks that are heading towards retirement hopefully are keeping a reasonable position in cash, as I have done, being someone who is -- I'm past 60. So, I don't particularly feel that I need to pull stuff out.

In fact, if you've got extra available cash, because you continue earning money, as I do, I keep putting money in. I do it on a dollar cost average basis. I'm not rushing in. But I continue to buy in, because I'm buying in at a cheap price.

Young people, I wouldn't say empty out your savings account, mortgage your house or anything like that, but just keep on the program, and you should have a steady program of investing, with some in cash and most in stocks if you're young.

FOSTER: OK. Peter, thank you very much --

MORICI: Or cash equivalents.

FOSTER: Yes, keep the -- thank you very much for joining us. You need a strong stomach in these markets. Maybe you're best off just not following them right now.

Now, our turbulent markets, riots in England, coming up on CONNECT THE WORLD, why one of the world's biggest rock stars says we're in great danger sidelining millions of people, meanwhile.


FOSTER: The United States is giving an additional $17 million in aid to countries in the Horn of Africa. An unimaginable number of people are at risk of starvation in the region, including over 3.5 million in Somalia.

The UN's food agency says it is reaching more parts of the country, but there are still big challenges in Mogadishu, even though Islamist rebels have left the capital. Our Anderson Cooper spoke to an African Union peacekeeper who says al-Shabaab may have left the capital for now, but not necessarily for good.


UNIDENTIFIED MALE: Our forces were just there.

ANDERSON COOPER, CNN CORRESPONDENT: So even though al-Shabaab left, there are still maybe some sort of a presence in the city of snipers, others who are in the population?

UNIDENTIFIED MALE: Yes, hiding within the community.

COOPER (voice-over): Shell casings litter the streets, signs of the months of fierce fighting that had taken place for control of the market.

COOPER (on camera): Why was this so important for al-Shabaab, this market?

UNIDENTIFIED MALE: So important because it has all the businesses, all the money is led here.

COOPER: So, the extorted money, they owned business here, that's where they made a lot of their income?

UNIDENTIFIED MALE: They tax people, they own businesses, they extorted money, they've had a big deal here.

COOPER: Why do you think they left?

UNIDENTIFIED MALE: I think they left because they couldn't stand and fight. We were pushing them to the wall, and they thought they had to preserve their lives and go away.

COOPER: Do you worry they're going to come back, though?

UNIDENTIFIED MALE: Well, I don't think they can easily get into Mogadishu once again. But we need more trips. The area has become too large, so if we don't get troops, they're going to be gaps, no doubt.

COOPER: And they can -- even if they don't come back in in force, they can still come back with suicide bombers.



UNIDENTIFIED MALE: -- think we're going to see more of an invisible front where they're going to use more suicide bombing, kidnappings, and assassinations.

COOPER: That's what you think is the future here?


COOPER: The African Union peacekeepers say they now control about 90 percent of Mogadishu, but they rarely go out on foot patrol, and they're stretched very thin.

Al-Shabaab may be gone, but they haven't been defeated. They still control large parts of southern Somalia, and they say they're going to return to this city. They say they were just making a tactical retreat.

The African Union peacekeepers are very confident. They say there's no way they're going to be able to get back in the city. But you talk to other people here, you talk to residents in Mogadishu, and they're not so sure.

There's only about 9,000 African Union peacekeepers. There's no way they can occupy the entire city and protect the entire city of al-Shabaab decides to return. So, the future of Mogadishu is still very much in doubt.


FOSTER: Well, Anderson also spoke to rock star and activist Bono about the horrendous situation in the Horn of Africa. The star called on people to get real and concentrate on the news stories that matter most.


COOPER: I guess for me, the thing, Bono, that I keep thinking about is, you hear half a million children are on the brink of starvation, you hear 600,000 children at risk of starvation, and those numbers, they're so big, they almost don't seem real, and we start to think, oh, this is just a normal thing.

But I feel like that should be a headline in every paper and every newscast every day while this is going on, 600,000 children at risk of starvation, on the brink of starvation, is a catastrophe.

BONO, CO-FOUNDER, ONE CAMPAIGN: Look, 30,000 of them have died in the last few months.

And it's true. People seem to prefer watching people in the high streets of London fight policemen rather than watching children of Somalia fighting for their lives. People watch the values -- stock values crumble, while I think about our own sense of values tumbling.

Because this will define who we are. This is a defining moment for us, and there's lots to distract us, and they're serious issues. People's livelihoods, not to dismiss what -- the hardships that are happening in the Western world.

But this is outrageous. This is just -- it can't be happening. It must be stopped.


FOSTER: Well, the message does hit home when you see the shocking pictures of desperation. CNN's Chief Medical Correspondent Sanjay Gupta has spent the last few days in Dadaab refugee camp in Kenya, where death is very much part of daily life.


SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): The kids here will melt your heart.

UNIDENTIFIED CHILD: How old are you?

GUPTA (on camera): Wow, how old am I? I'm 41.

GUPTA (voice-over): They impressed me with their English, so I spoke a little Somali to them. They loved it.


GUPTA (on camera): That good?


GUPTA (voice-over): Rare smiles in a place too full of heartbreak. Amin and her one-month-old daughter, Addison, came here in search of a better life, fighting so hard not to starve to death.

But in the end, it made little difference. Amin lost the one thing in the world she cared about more than anything else. We are walking to her daughter's grave.

They are really just piles of dirt, with no nameplate, no flowers, no reminders of their lives. Just small sticks with colored plastic trash blowing in the wind.

She says she brought her healthy baby girl here with dreams of new beginnings, but Addison died within a month.

GUPTA (on camera): And what went wrong?

GUPTA (voice-over): "She started vomiting," she said, "then diarrhea. It wouldn't stop for days and days."

Diarrheal illness. It has been the major reason 30,000 kids have died here over the past three months. So many tiny, little graves, like this one.

GUPTA (on camera): Part of the problem is, even after you get to one of these camps, there's still not enough food here. Not enough water, and there's plenty of infectious diseases. There's viral illnesses, there's also diphtheria, there's pertussis, and I want to show you something else, something that's very frightening in a camp like this.

This is Osman (ph). He's 14 years old, and you can tell, he really doesn't feel well. People were concerned here that he has measles. He had a high fever, he had the characteristic rash, and he had conjunctivitis in his eyes.

He never got vaccinated. He never got any sort of treatment. And measles, as you know, is very, very contagious. He has nowhere else to go.

GUPTA (voice-over): And so, hundreds of thousands more of these adorable children, unvaccinated, are at risk of the same fate as Amin's daughter.

GUPTA (on camera): Is there anything anybody can do?

AMIN, MOTHER OF ONE-MONTH-OLD WHO DIED (through translator): It is with God.

AMIN (in English): Yes.

GUPTA: It is with God.

GUPTA (voice-over): It is with God. And so there's nothing else these kids can do but laugh and play, surrounded by the dead.

Dr. Sanjay Gupta, CNN, Dadaab, Kenya.


FOSTER: If you would like to help with the situation in eastern Africa, do head to our website. We've complied a list of vetted aid organizations who are working the region. You can find that

Still ahead, the quiet heroes. We'll bring you the inspiring story of a man who didn't want to fight. Instead, he's putting his life at risk to save others. It's the latest installment in our special series on health workers at war.


FOSTER: All this week on CONNECT THE WORLD, we are looking at the danger medical workers are facing in conflict zones around the world.

On Tuesday, we showed you some very dramatic footage of a firefight in Libya. Medical workers in war zones are not only at risk of getting caught in the crossfire, increasingly they're at risk of becoming targets themselves.

In tonight's report, we'll hear from the photographer who shot these pictures. Photographer Andre Liohn describes the time he spent with an ambulance driver in the war-torn Libyan city of Misrata.





ANDRE LIOHN, PHOTOGRAPHER: Omar is a boy that very fast I gained the strongest respect and affection for.



LIOHN: We worked together for several days, several days and night. We stayed 24 hours together in that ambulance, sleeping, eating.

In the beginning, he said he was a 19-year-old boy, and he said "I was afraid of fighting." He had no idea how to fight. And he said, "But I want to be involved."

And they said, "OK, we have an ambulance, here. If you like, you can drive it."


LIOHN: It was amazing how serious he was about saving the life of those who, at that moment, they needed you, including Gadhafi's soldiers. In many cases, we rescued Gadhafi's soldiers. Anyone.

We had been targeted many times. Because we had to drive side roads, and they're rough.

And there were gunshots all the time, so the doctors, they couldn't work in the back of the ambulance, and Omar felt like, we can stop, right? But the doctors, then, OK, good, we stop here.



LIOHN: And then we get shot, and Omar gets very nervous. But the next hour, once the patient is at the hospital, he's OK. So, let's go back.



LIOHN: That's what makes these people different, that they decide to stay. They decide -- they decide to take steps that go beyond the physical barrier of the bullets, and also may go beyond the emotional barrier that we have to the helpless person.

The doctors, they're fascinating -- it's a fascinating kind of people, because they have families, they have houses. They are normal people, there. And many of them, they decide to run, as anyone would do.

But a few of them, they decide to stay and to treat and to help and share advice, because they can contribute with a lot.

And also like the doctors, because they imagine like you have to make decisions that can cost the life of someone. In a very few seconds, a decision you make could cost the life of someone that needs your help there.

It must be something special in the mind of these people and in the hearts of these people.



UNIDENTIFIED MALE: Look! This is from Gadhafi's army. And this is from us. We save, too.


LIOHN: In a war, the people, their emotions, they are out of control in most of the people. And the enemies, they see the doctors as irresponsible for treating those they hate. Like, if I'm trying to kill that person so hard, why do you save him? Why are you making my war -- my work hard?

Or, for example, you imagine in a situation where someone committed atrocities against your family, your friends, your neighborhood. And this person is captured, and then this person is alive and needs to be treated as well.

The doctors again, why? This person is -- has been killing us this morning. So why should we treat them?

So, that's where the doctors, they go beyond the traditional view of war, and they can see, OK, he's a human being and we have to treat him.


FOSTER: Well, our special series on health workers at war will continue tomorrow with a report on a doctor's life in Mogadishu. It's a fascinating look at the work of one of the longest-serving doctors in the war-torn Somali capital.

Finally, a project that has so much promise, but it can't seem to get off the ground. Our Parting Shots tonight is of a Pentagon plane that's gone missing.

This unmanned hypersonic aircraft actually did get off the ground today for its second test flight, but soon after launching, the experimental plane from California aboard a rec -- rocket, US military scientists lost contact with it, would you believe?

They're hoping one day to use the arrow head-shaped craft as a global bomber, an aircraft capable of striking any target, anywhere in the world, in less than an hour.

It's hard to imagine that the US military says it can fly at 20 times the speed of sound. That means, for instance, it could zip between New York City and Los Angeles in less than 12 minutes. Stunning technology if it can perform when put to the test. Some more tests needed, I think.

I'm Max Foster, thank you so much for watching. The world headlines and "BackStory" after this short break.