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

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

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

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 lead economy-- to have the lead economy uncertain about its debt ceiling is quite worrisome. and if you were to take

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 little tragedy 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? >> yes, 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 bus

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

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