. >> we want to pass a new greek program. this is an important sign and we want to get to the root of the problem. if that means that sustainability must be improved. >> first, greece must rein in their public sector debt or be given more time to pay it back. for that to happen, private creditors would have to swap their greek bonds for longer- term ones. another option for the greek prime minister are euro bonds. the european union could issue them to greece at lower borrowing rates. one of the backers is the chief -- >> the options considered on not worlds apart. >> the bonds could mean a higher burden for germany, something that berlin is not keen to consider. >> for more on what the leaders have agreed on has been filtering out. stephen castle told us what he had been hearing. >> there are drafts of a statement circulating here and we are getting quite close to some kind of deal. they actually don't have very many figures in them. we don't know the details. the broad outline is clear. there will be a second bailout for gr

so it's probably the worst time for the greeks to be selling their assets. >>personally i would support even more privatization than that being announced, precisely because ofthe difficulties of reigniting growth in a context of increasing taxation. so privatization and other structural reforms can lay the basis for an economic recovery." >>reporter: recovery that looks increasingly unlikely. now, one year after receiving the biggest bailout in western history - 110 billion euros in emergency loans. a second, even larger bailout is being proposed. >>taxpayers in other parts of europe are beginning to lose patience with greece. >>i think if you do have a community, if one member is doing badly, you should help them. but they'll have to want to be helped and show some goodwill, too. >>i think, firstly, the greeks should tidy up their administration a little and of course work longer. because i think that if they don't work as long as the germans, why should the germans pay for it?" >>reporter: the real fear if greece founders is for the stability of the euro,

the greek debt crisis." several options are on the table ranging from a bailout packages to softer restructuring which will put the burden on private investors. markets are watching closely to see if leaders can come up with a plan that can solve the crisis rather than postponing difficult measures until a ter date. on to wednesday's market actions, european stocks posted gains for a second day as spulation grew that u.s. lawmakers will vote to increase the debt ceiling. banks rallied before the eu summit on the debt crisis. we got this summary from frankfurt. >> a record order for eads from american airline companies. this is a huge gain. also the gain over boeing in their own backyard. the order also says that the industry is what one investor, did and it speaks for a robust economy. the fact that the trading day here in frankfurt is a good one, people are feeding off of a record quarter from apple. suppliers are doing very well. the market is losing steam as apprehension mounted over the outcome of the eu

the greek situation is a al tragedy. greek cannot borrow money. this country is not in bad shape at all. or but we have a politically geneted crisis. there is no real rean to have a debt limitation anyway. what congress and the president shouldo is tax spending, taxes and spending and the economy together will produce a budget deficit or surplus. the democrats, i think were rightly worried a little bit about how much president obama was willing to give away in terms of slicing spending on programs they hold dear. but it turned out the republicans are unwilling to accept anything. and john boehner who had promised repeatedly that the debt ceiling would be raised, apparently now is backing away from that. it looks like he's just caved in to the right wing members of his caucus. >> rose: he has released this statement. during these discussions as in my earlier discussions became evident that the white house has simply not serious about ending the spding binge thais destroying jobs and endangeri our children's future. a deal was never reached and neve

"german banks agreed to share the burden of a second greek hell out. france hands germany a drubbing. -- gererman nks agreed to share the burden of a second greek bailout. >> it is the beginning of the and for nuclear power in germany. the german parliament has approved historic measures that will see all power plants taken offline. -- nuclear power plants taken off line. angela merkel said that the disaster in japan caused her to rethink her stance on nuclear energy. >> chancellor merkel want clear victory. the new legislation said that it is annmbitious goal for germany. the country will have to meet its energy needs without nuclear power. the ministers said this is a historic step for germany sending a signal to the world. >> even those abroad who don't agree with this, if anyone can do this, it is the germans. that is the message we're sending today. >> the opposition social democrats backed the nuclear phase-out and leaders poured scorn on the government which only months ago jettisoned the phase-out that they had once supported. >> this is your p

the greeks have done a lot. the greeks have felt a lot of pain. but, unfortunately, they don't have many other good choice. >> warner: all right, we have to leave it there. thank you both very much, simon johnson mark weisbrot. >> brown: still to come on the "newshour": white house chief of staff bill daley; a hospital targeting medical mistakes; the buying-fever over social media sites and labor protests in china. but first, the other news of the day. here's hari sreenivasan. >> sreenivasan: the news from greece helped reassure wall street and stocks gained ground for a fourth day. the dow jones industrial average was up nearly 153 points to close at 12,414. the nasdaq rose 33 points to close above 2,773. u.s. forces in iraq have had their deadliest month in two years. officials announced today that three american soldiers were killed wednesday in the south near the border with iran. that made 15 this month, the most since june of 2009. shi-ite militias in iraq have stepped up attacks on u.s. forces. the militias oppose any move to have the troop

people were uncertain about how the next few days would develop in the greek sovereign debt crisis. will the eu summit bring a clear answer on which way the direction is going to go? what is quite expected of investors, banks, private investors in solving this crisis? shares taking a real hit. the dax was down by over 4%, and in the euro stoxx, banks downed by a whopping 7%. the stress tests not really getting any more confidence, instead raising more concerns about the stability of the industry. >> we will stay for a closer look at monday's number is. in germany, the benchmark closed down just over 1.5%. the euro stoxx 50 down at nearly 2% at 2,62. the dow at this hour is trading down, 12,386, and on currency markets, the euro is trading down. despite the ongoing market turbulence, the mood among consumers is looking up. for the first time since the crisis, consumer sentiment in many european nations has actually improved according to a research institute, which adds the economic expectations rose for most countries during the second quarter. >> britons have more faith again in the

shares from the financial sector are suffering most, also because of the downgrade of greek banks. moody's see significant risk in greece. >> let us look at the market numbers. in frankfurt, the benchmark dax closed 1/4 of a percent higher. the eurostoxx 50 closed 1% lower. the dow jones industrials are at 12,539. it seems the success of apple products like the iphone and mac have proven too tempting for carter tatars. chinese authorities have closed two stores purporting to be official applet -- apple outlets. the apple brand in stores is apparently so convincing that some of the staff thought they were working for the company. >> in this southwestern city alone, chinese authorities found five branded apple's stores to be operating without authorization from the company. city officials ordered two of the stores closed because they did not have business licenses. chinese authorities said all of the shops were selling genuine apple products. even so, experts fear the apple brand could be damaged. >> it can hurt, especially if people cannot tell the difference between the real thing

isn't the italian economy about six times the size of the greek economy? >> will, in a way it is. but, you know, i think we're also have to start to define what default is because there is lots of confusion. the markets are very volatile and investors get worried. so, now, for example as part of the negotiations germany and france would like to see the banks take a bit of a cut in their positions with greece which is a fair distribution of a shared cost. now, standard & poor's and moody's come out and says "well, if you do that, that is a default." and so people get increasingly worried. so i think we have to be very attentive at what kind of terms we use. i don't think that italy is going to default. the european central bank is resisting a technical default of greece. so we'll have to see how that goes. but this situation... the situations are very different. italy has a much stronger and better economy than greece. >> suarez: well, mario, other count rise in europe have about a trillion dollars exposure to italian paper. even american banks have almost $300 billion. is italy to

we're not going to work to age 70 so the greek cans retire at 58. >> rose: what role does sarkozy play? >> well, it'svery interesting because, you know, quite apart from the entertainment value which he always has because, as you know, historically in the european project there was the german engine and the french driver. >> rose: right. >> and what's happened now is that the german engine has, so to speak, got up into the driver's seat and actually sarkozy and the french are running along behind trying to keep the show on the road and trying to influence it. >> rose: from afar, how do you see our political system grappling with a debt ceiling-- so far unsuccessfully? >> you know, i come back to the united states every year for an extended period and so i see this country in kind of time-lapse photography. >> rose: right. >> snapshots every year and it's really quite shocking to see the gradual relative decline, starting with the elementary fact of the decline in infrastructure. i mean roads, public transport, public goods. that a simple point. i would say that... and i say this in jes

bank is well-performing despitite the fact tt german banks contribute 2.3 billion heroes for a new greek rescue fund. that is according to investors. there is good economic data out from the united states that pushed the dax into positive territory. >> it is a solid and to an impressive week. the dax closed higher. euro stock 5050 gained 1%. the dow industrials gained 1.3%. the u.s. markets will reopen on tuesday after the july 4 holiday weekend. the former head of germany's's central bank is set to take over the helm of swititzerld's biggest bank. it will formally nominate the person next may. >> he is known as a man who is not afraid topeak his mind. he publicly clashed with chancellor merkel her policies on how to deal with the debt crisis. when he was a member of the european central bank's governing council, he disagreed with colleagues who favored buying debt issued by greece and other problem countries. he has his own ideas about how a debtelief plan should work. >> t theseechanisms muste aimed at restoring the focus to direct responsibility. it must not display solidarity. this i

the macedonians, like the greeks, regard him as a national hero. behind the sculpture is the site where the police officer killed a young man. this person study the communications and the united states and london on a scholarship for the gifted. in the town, he works and a call center. demonstrating gives the gunmen a feeling they are doing something useful -- demonstrating gives the young men a feeling they're doing something useful. >> week organize people who are not members of the political parties. >> the only television station that reported on the protests from the beginning, a private channel, is on the verge of bankruptcy. the prime minister has called on citizens to boycott the channel and several ms. piper's critical of the government. -- and several newspapers critical of the government. >> yes, we are afraid. if you want something so much, you don't give up. >> so they continue, now more than ever. they collect money to print out leaflets and banners. macedonians and albanians to get there. that in itself is already a minor revolution.

. -- greek debt is a major challenge. some think it could even become a curse. >> the german economy grew last year at its fastest pace since reunification, with exports leading the charge. higher consumer spending has now also become a major driving force behind the recovery. >> in this germantown, business is picking up again at the restaurant. -- in this german town. the catering business is doing well, too. it has just received an order for 150 guests at a fashion show. one of the biggest caterers in the region, they are sensitive to economic swings. >> we used to put on lots of company events, like christmas parties. there was a lot to celebrate. then, that dropped off, and there were fewer parties. when you are laying off staff, you can hardly put on a huge party. it is not appropriate. >> now, they and the rest of the catering sector are feeling a noticeable upswings. sales from private and municipal events have climbed 5%. their order books are full almost every weekend, and it is busy with a major upcoming event.

the agency proposed restructuring greek government debt, a ratings default. meanwhile, germany is looking for ways to help greece. economic mistephilipp rosler met with representatives from across germany. he wants to make it easier for foreign investors to set up operations in the country. still might in the u.s. has caught up with investors in europe. in frankfurt, the market closed lower. in york, the dow jones industrial ended the day in negative territory. the euro is trading for one u.s. $4358. -- $1.4358. the disaster in japan is taking a hold of a german jet carrier. high fuel prices also cut into profits. last year, it posted a profit of over 878 million euros. now some sports. >> get ready to get the torch out. in just 355 days, the summer olympics open in london. the 2012 games will be the third time the british capital has hosted the world's top athletes. more than 10,000 are expected to compete. we take a look at london's preparations. >> this synchronized team put on a spirited show for the delegation. the hosts of next year's olympics are confi

eu officials have admitted some type of greek default is inevitable. that is in spite of billions in german taxpayer support. people are curious and are getting the impression they are being used as financial fodder for eu bailouts with no and insight. here is a look of how people see team merkle as it reaches half term. >> summer in berlin, and many germans were cheering on their team in the women's world cup. in the and, the team disappointed, and that is exactly what many people feel about the current governing coalition as well. >> you would think they could word better together. i give them a yellow card. >> i am happy with them. >> they need to i irove and do thingsith more dynamism. >> in my view, the only thing you can do with this government is send them off. >> if germans were to give their government a changing room peptalk, it would be harsh. 70% say they are not satisfied with the government's performance. only 29% say they are satisfied. it has definitely been a weak first half of the year for the government. but coach angela merkle and h

in rome no sense of a greek-style crises just yet. however this city where european economic integration began with the 1957 treaty could yet be decided of its ultimate failure. there are politics putting together a package of spending cuts, particularly after a public spat between the italian prime minister and his own finance minister. >> of course the markets are reacting because they were nervous before and now they're getting much more nervous because of such talks of italy. >> current bailout bonds could not afford italy. they have a national debt worth more than the size of its stagnant economy. today's meeting was actually meant to finally sort out grief, inching toward accepting the form of greek debt default according to one minister here. the problem is the president for the like of italy and spain. >> the current state of the crises is a severely intertwined combination of the debt crises and banking sector, and we cannot solve one without solving the other. we need to solve both. >> simply put, in italy can't put a lid on

i've been doing afghanistan and bin laden and the greek crisis. >> the president says he wants to get working, wants us to get working. i cannot think of a better way than to have him come over today. ng.are waiting sen >> senate minority leader mitch mcconnell. for all the kids were outraged by the president's remarks. -- republicans were outraged by the president's remarks. but harry reid was listening. what you make of the president's performance on wedsday, mark? >> i think the president recognizes two things. over the last two years, democrats lost to the debate on their major initiatives, economom recovery and health care. they don't want to run the risk this time. they have to lay out what the consequences are, the recklessness and irresponsibility of even entertaining the possibility of letting this country defaults on its obligations. >> evan, what do you make of it? >> you cannot be partisan about this. at least he is showing some engy. but he has got to be an arm twister behind the scenes, and he is not really lyndon johnson. this is serious now. this is his moment of leade

. >> reporter: mary's greek orthodox family has lived for centuries in the christian town of beit jala, just outside bethlehem. she's close to them, but also dreams of traveling to faraway places. >> i don't care, like, if i have a lot of money. i just care to reay be able to see the world, so yes, that is definitely my dream, but it's not going to -- it's not that easy to make come true considering our situation in palestine. it's very tempting to leave. do we try? yes, of course we try. like basically, obviously no one wants to leave their country, but it is hard. it's a challenge. >> reporter: john is part of the tiny syriac orthodox community. several of his extended family members live in france and britain. he's a chemistry major who wants to study medicine, and he's planning to do so abroad. >> i would like to stay here, but i see that the peace -- the peace process that they are moving in will not achieve itself within the coming few years or within the coming 200 years. so why to suffer and struggle? living under the occupation is not a normal life. it's a stressed life and we

i've been doing afghanistan and bin laden and the greek crisis. you stay here! let's get it done. >> but, mr. obama himself has spent considerable time outside the nation's capital. obama was in brazil on march 19 when he announced his authorization of "limited military action" in libya. for that matter, he has been away from washington for a large part of the this 2 1/2 years as president. according to figures compiled at the end of 2010 by cbs reporter mark knoller, obama's first 23 months in office saw 70 days on foreign trips and 58 days on vacation trips. he's gambled at a pace to present himself as a statesman. above the scramble of something disagreeable called washington. >>> question, with regard to obama's leadership on domestic issues, what hasn't emerges from his issue, what pattern e pledges his first -- >> first of all, i don't think anyone thinks this president is not a hard worker. and he went after the congress to what a ridiculous work schedules where the house and the senate take different breaks, so you can't deal with the congress as a whole

the greek coast guard turned back a boatload of americans who did try to put to sea. several hundred pro-palestinian activists hope to use the group of nine ships to break an israeli sea blockade. it was imposed after hamas militants seized control of gaza in 2007. last year, an israeli raid on a similar flotilla killed nine activists. those are some of the day's major stories. now, back to jim. >> lehrer: in syria, there was another friday of protests and deadly responses, with reports of another 24 people killed, but also some gestures of reconciliation. margaret warner has the story. >> warner: the nearly four- month-long uprising against president bashar al-assad showed no sign of abating today, with some of the largest protests yet. >> ir-hal! >> warner: in the city of homs, marchers thundered cries of "ir- hal", or "go", a demand echoing across the arab world this year, aimed at longtime rulers. elsewhere in homs, security forces fired on protesters from roadblocks. large crowds also turned out in most other major syrian cities, in the now-weekly protests after

yeah, my littltragedy was positively greek in scope. >> reporter: fleisher was the stuff of myth from the start: a child prodigy raised in san francisco, who gave his first recital at age seven. and at ten began studies with artur schnabel, one of the 20th century's greatest pianists. when we talked recently at hisç baltimore home, fleisher spoke of schnabel's most important lesson. >> music has a structure even though you can't taste it, you can't touch it, you can't smell it. it's there. and a great piece of music, greatly played, is as palpable, as three dimensional as anything else in life. >> reporter: so you think of the composer as constructing the work and then your job as theçç player is to re-construct it? >> s, in a sense to discover what his structure is. also, the role of the performer is in a sense a very dicey one. because in today's culture and today's society everybody wants to have a star. but in music, for example, the performer is indispensable but he or she is not the star. the music is the star. >> from carnegie hall, leon >> reporter: still, the music sines

from what i saw editing this, the earliest poetry coming out of the chinese and greek, and on through, really, there is this mystery at the heart of nature, not able to understand it. this is called "epilogue" by gottfried benn. "the drunken torrents are falling the blueness is dying now and the corals are pale as the water round the island of palau. the drunken torrents are broken, grown alien, to you, to me, our only possession the silence of a bone washed clean by the sea. the floods, the flames, the questions - till the ashes tell you one day: "life is the building of bridges over rivers that seep away."" find more about the new recommendations to offer millions of women free birth control. that's on our health page. and on indonesia, see a slideshow about the disparity between the growing middle-class and the populous nations poor. all that and more is on our web site, newshour dot pbs dot org. jeff. >> brown: and that's the newshour for tonight. on tuesday, we'll have a newsmaker interview with republican presidential candidate, ron paul about the budget, the debt and more. i'm

second, $157 billion rescue package for greece which, for the first time, forced private investors in greek debt to accept losses. added to that volatile mix: a political crisis in washington that threatens to devalue u.s. treasury debt, the backbone of world finance. i sat down with christine lagarde this afternoon, three weeks into her tenure, at the imf's washington headquarters. >>adame managing directoring thank you so much for joining us. >> pie pleasure. >> warner: as we sit here right now the crisis other than the u.s. debt limit, the possibility of default still isn't resolved. you've talked about a possible spillover. what are the consequences globally to the global financial system if five days from now there still isn't a deal? >> well, you're right that there is quite a lot of concern out there. the global economy is clearly highly dependent on the u.s. economy because the u.s. economy is the first in the world and it's a major power in many respects. so to haved ad economy-- to have the lead economy uncertain about its debt ceiling is quite worrisome. and if you were to take i

under that agreement, investors in greek bonds are asked to accept new debt at lower interest rates and for longer terms. fitch said the bond holders will take a loss and that constitutes default. on wall street, stocks finished the day with mixed results, but had a winning week overall. the dow jones industrial average lost 43 points to close at 12,681. the nasdaq rose 24 points to close at 2,858. for the week, the dow gained more than 1.5%; the nasdaq rose 2.5%. those are some of the day's major stories. now, back to jim. >> lehrer: and to the crisis in somalia, which is facing the worst famine in decades. the united nations warned today 800,000 children could die from starvation. international agencies want to send in more food, but al qaeda- linked militants vowed to block the aid. jonathon rugman of independent television news traveled to a refugee camp just outside the capital, mogadishu. a warning: some of the images in this report are very disturbing. >> reporter: ahmed is eight months old and close to dying of hunger. he lies in the lap of his father, abdi. the pair have travel

. >> the ecb also has the ability to cause things to break apart because if the ecb stops handling greek bonds and stops accepting them as collateral in its operations as it is threatening it might do then that would have pretty devastating consequences. and again that could be the benning of the end game. >> go ahead. >> it could, but it would need to be i think in the end have to decide whether it wants to be a tough central bankith nothi to be a central bank of because it precipitates the breakup what is it going to do. >> are we missin anything here in this conversation that could have a dramatic effectn the conserations we are raising? >> you know, upside, downside. >> well, there's always -- >> there are always geo political issues that could up set the apple cart. >> a nass-- assassinations, war, or oil prices. >> oil prices are sometimes underestimated their impact. bill would have a better view on th than i. but i think setting out this perfect storm and august is a slow trading month, many bad things can happen in the month of august. >> yeah, let me mention -- >> in financial

. >> demonstrations, protests, strikes, the greeks aren't happy with the austerity measures demands as a price of the bailout. two years ago latvians out self-reliance before dependency and there were few protests and what's more, it worked. they can't see what the greeks are getting upset about. >> when this man wants to get away from his worries, he takes his harley davidson motorcycle out for a spin. the freedom and the open road is a distraction from the realities of everyday life in latvia. it's not the realities of local road conditions. for a while, his business was booming. many were spending their money freely. many of them were also borrowing heavily without being aware of the risks involved. then the global financial crisis hit. his business dropped by 80%, almost from one day to the next. >> we had to decide between closing up shop completely or firing some of our employees or cutting everyone's pay to below the legal minimum wage. >> he ended up keeping on about 1/3 of his original 32 employees. now they can only hope that latvians some day will have enough spare cash agai