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>> and welcome to "newsday." >> the headlines. market turmoil as the crisis in greece deepens. there is concern about the future of the euro zone. and still no agreement on a new government. >> the open speculation from some members in the euro zone about the future of some countries in the arizona, and is doing real damage across all european economy. >> hundreds of palestinian prisoners ended their hunger strike after israel agrees. and voices of moderation being drowned out by forces of violence. a report from inside syria. it is 9:00 a.m. and singapore. >> judicata in the morning here,

broadcast on pbs in america and elsewhere around the world. financial markets in europe and the united states have reacted with alarm to the crisis in greece and the stress it poses for the future of the euro zone. there is still no agreement from the new government in athens. with the possibility of new elections within a week, the future of the austerity program is in doubt. european finance ministers have reaffirmed their commitment of greece's remaining in the euro zone. there is a growing crisis and the likely response of the eu leaders. >> stock markets fell, the europe tumbled, on fears that greece would abandon the europe. others were drawn in. borrowing costs for spain neared

dangerous levels. in athens, greek political leaders struggled for a ninth date to form a government. the deadlock could lead to new elections, where parties that oppose the terms of the greek bailout might increase their support. that would mean greece leading the euro, with incalculable consequences. there is speculation about the future of some countries in the euro zone, which i think is doing real damage across all european economy. >> talks will resume tomorrow about trying to form a government. finance ministers from the euro zone gathered in brussels. while leading eu officials pled with officials not to renege on austerity cuts but form part of a bailout deal, but there was no sign they were prepared to offer the greeks easier terms. the german chancellor angela merkel was pouring over the troubled european map at a school in berlin today.

she said she thought agrees could still make it, but she had a warning, too. >> solidarity towards countries like greece will only end if they say we are not keeping to the agreement. >> but the german chancellor was under pressure at home. her party was heavily defeated in a regional election by a party involved with austerity. she was told that it had driven to greet voters into the hands of extremists, but they say their policy of cutting debt still enjoys strong support in europe. >> we are profoundly convinced that this policy that was signed up by 25 member states is the only way out of the crisis. we cannot solve the sovereign debt crisis by allowing an even higher deficits. >> much of germany insists there

should be no backtracking away from austerity. pressure is mounting on berlin to act. tomorrow, the new french president, françois hollande, arise, carrying his message that growth should be the priority, and others say the survival of the currency is at stake. in spain, protestors against austerity are continuing to occupy one of the main squares in madrid. the fear is that the greek crisis is destabilizing other vulnerable euro zone countries. gavin hewitt, bbc news. >> our correspondent sent this updates. >> that we in greece goes on, after a meeting this evening between the president and three party leaders. more talks tomorrow. one of the proposals under discussion will be the formation of a technocratic government, comprising non-political and distinguished figures, in the

words of one of the party leaders. that has received a mixed reaction from some of the parties here, as they are aware that many greeks resent the fact that the outgoing minister is an appointed technocrat rather than elected political leader. but it is a sign of just how deep the divisions are between the politicians here. they seem frankly to a split for a coalition government on whether to accept or reject the bailout and all of the cost cutting that entails, said the parties will meet tomorrow for another round of talks. if they break down, greece will be facing fresh elections within four weeks. opinion polls say that could usher in a government that turns its back on the loan agreement with brussels and tries to reject all the cost-cutting and austerity, but the response from the eu so far has been that greece must stick to the path of reform and cost-cutting in order to ensure its continuing

membership of the europe, so the stakes could not be higher, because it greece were to go towards an exit of europe, the whole framework of the european union could start to unravel. leaders will be watching these talks with trepidation to see whether in one last row of the dies potentially a government could be formed to fill the power vacuum year, stave off fresh elections, and help in this period of political instability. >> our report from athens. so now, we move on to details of an interesting development. tell us more. >> that is right. israel has agreed to a list of concessions to stop a strike. 1600 inmates have been refusing food for nearly one month. some are in a critical condition and are being treated in

hospital. we have more from jerusalem. >> relief and celebration for prisoners. they believe their suffering paid off. after weeks of hunger strike by hundreds of prisoners, israel struck a deal to ease conditions for palestinians in israeli jails. >> we have one, thanks to god. >> [speaking foreign language] >> thank god for your patience and perseverance. i send of my respect for their patience and perseverance. i tell them, thank god, this achieved a result. thank god. they gave in to your demands, and be happy and joyous. god willing, your release is near. >> the key element of the deal was over what they called a minister of detention, a law

that allows people to be jailed without trial or charges if it is thought they pose a security threat. it is something that has been strongly condemned by human rights groups and the united nations, but israel has agreed that around 300 palestinians held under such conditions will not have their current jail terms extended unless new evidence emerges. that means they could all be released within six months. palestinian leaders declared this a victory. >> this deal means the main demands of the palestinian prisoners in the occupation, including an end to solitary confinement and an end to detention and also allowing family visits. >> officials in israel denied the deal included an agreement to restrict the use of solitary confinement and said all prisoners have to agree not to engage in what they call

terrorist activity. in response to requests from the palestinian and president, israel has negotiated an end to this. it is our hope that this measure by israel will help to build confidence between the parties into forward peace. >> that could suggest israel expects something more in return. palestinians set up until now been refusing to return to peace talks over the issue of jewish settlement expansion. israel wants that position to change. the deal came less than 24 hours before palestinians will take to the streets to mark what they call the catastrophe, the day in 1948 when hundreds of thousands of people lost their homes after the creation of the state of israel. this year, and usually, they may feel they have something to celebrate. bbc news, jerusalem.

>> to syria now, unconfirmed reports say people from both sides up and killed in heavy fighting. government troops and rebels in one city. but while the violence escalates around the country, they are still looking for a peaceful way out of the crisis. our bbc reporter sent this report from inside syria. >> [singing] >> the old city of damascus. famed. it is what i have seen in the many years i have been coming here. it is what makes the current violence so shocking. it is easy to forget that it began as a peaceful protest.

those voices are still there. one person standing alone outside parliament, holding a banner, "stop the killing." some applauded the message, but authorities detained her. looking for something must bigger -- much bigger. she is now called "the woman and a red dress." >> the main thing is, it sends a message to everyone that they can make a change, no matter how small. it even gathered people who support the regime, because we all want to stop the killing and build a syria for all syrians. >> shortly after we met her, she was detained again. there are moderates on the other side, too. they seek a gradual, peaceful change.

but with every explosion, their fear grows, that syria stands to lose more than in gains as the country goes. but to preserve itself, the state does not want to disturb the present order. it wants to keep things the way they are, changing as little as possible. for all the talk of reform, the political space just is not opening. she tries to play by the rules. last year, she was invited to take part in a political dialogue. today, and he should be pictures of his two sons, arrested last week. he has had no news, except others detained with them told him they had been tortured. >> violence leads to violence. blood only leads to blood. when we see the amount of violence by the regime so far,

you have not seen a proportionate reaction by protesters. when the sons and brothers and sisters are killed, you cannot blame people who take up arms. >> no one wants to lose what is good about this country, so many still hope it can be done, but after so much violence, the views are hardening. if they do not reach a middle ground, everyone stands to lose. >> our reporter from inside syria. you are watching "newsday" and still to come on the program, a historic trip to burma, the first such trip in nearly 30 years. >> and in canada, experiencing an oil bonanza. and now for a quick look at some

front-page news for you. every major newspaper looking at the possibility of great exiting -- of greek exiting the europe. the international herald tribune writes that the greek crisis will be on the menu at the dinner between german chancellor angela merkel and the new french president, françois hollande, who goes straight to berlin. still coming in is the message of tens of thousands of civil servants in central london. there is a report that they can work from home. and "the financial times" has details at the shape up -- shake-up at jpmorgan chase. president obama has weighed in, saying that there is a need to reform wall street. the world's most expensive sunglasses of gone on option. and the highest bid so far is $408,000.

>> this is "news the" on the bbc. >> i am in london. the headlines this hour, financial markets have reacted to the alarm about greece and the future of the euro zone. >> israel has agreed to a list of concessions to stop a mass hunger strike by palestinian prisoners. the south korean president is in the burmese city of rangoon for talks with the apposition leader, aung san suu kyi. this is the first south korean presidential visit to the country for 29 years. the offer the country a wide- ranging package seen as a reward for the political reforms that the military-backed leadership has put in place over the past year. with more on the visit, we are joined from singapore by a

visiting fellow at an institute of southeast asian studies. thank you so much for joining us. first of all, this is significant, the first visit by south korean leader for about 30 years. >> very significant. helping to build their new economy. i would highlight the investment in myanmar and also the powers of korea in infrastructure construction in this part of the world. these are both ways in which korea could be a very important partner for myanmar today. >> and the european union also lifting sanctions against burma, but the asian economies, particularly the likes of the chinese and the south koreans, they want to be one step ahead. >> yes, and we have to remember that the president has been interested in this country since the beginning of his presidency. and his first job with construction was in this region, so he has got a commitment, and

i think this is even a position to afford the korean interests and to help myanmar out. >> what do you think of the ongoing bernese reforms? will they be here to stay? or could they waffle going forward if there is too much democracy taking place? >> i think there will be bumps in the road, but i am convinced that what is going on is real and that there is a critical mass of support within the government, and i think as we approach elections in 2015, support for reform and the political and economic wrongs will only be consolidated. >> what more would you like to see from this military-backed leadership of >> what we need to see is continued progress in drafting a program of legislation for the future and success in implementing measures that have been adopted by the parliament. implementation is tough and a country like this. >> indeed, a trick by the president to burma, because he

also has a top leader visiting indonesia. >> one of the things about southeast asia for many years is that many countries have good relations with north korea, a funny feature in this part of the world. >> and for indonesia, welcoming a north korean leader, this could impact the indonesian relationship with south korea. >> i imagine that south korean diplomats in the asean countries are used to the situation, where each has something in the capitals. >> we have to leave it there. a visiting fellow from the institute of southeast asian studies. >> that's return to our main news, and that is, of course, the situation in greece, where there are talks about forming a new coalition government that will resume on tuesday. there is division over the austerity measures. joining us from washington, a director from the center for

strategic and international studies. heather, welcome to the bbc. thank you for joining us. what is taking place in athens, do you think they will be able to form an emergency coalition government request i fear that that window is really dramatically closing. we hope the president will find a way to mark for these talks to continue, but my sense is we're probably heading into another election next month. >> how likely, therefore, do you think it is that that fear factor, everyone wishing would not happen, that a greece may ultimately lead the euro zone? >> we cannot underestimate the message that european leaders are going with to ensure that does not happen. we want to make sure that a greece remains within the euro zone. they have a very different idea

on the way forward. >> why do you think it will be a catastrophe, in your words? >> the fear is that we are moving towards a disorderly default in an election that could produce results that would give greater strength to the anti-austerity party, those that do not wish to continue on with the troika agreement. i think then we're going to see a lot of unknowns. if in greece decides to exit the euro zone, what will be the impact on the other countries that currently have bailout packages? ireland? portugal. what additional pressure will be placed on spain and italy? that it might be ok, that europe will be ok if greece and is the euro, i think we do not know what the results will be. >> i am fascinated to find out

how a country exits the euro zone on the e.u.. how? >> i do not think they know how to legally do it right now. there is lots of discussion going on. it was never written into law. it could not be in a pro-active way. i think there are constitutional issues. certainly, they will need clarity on the european institutions, have a european central bank and others will work with greece. i think there are an incredible number of questions yet to be asked. we do understand that there is scenario planning happening. the variables, the unknowns are almost limitless. >> spate of unknowns. heather, thank you for joining us very much. >> nations around the world grappling with issues, we have a different picture in canada, and

that is largely due to oil. they are among the top three reserves in the world. to bbc's katty kay goes where oil is fuelling growth but also raising environmental concerns. >> oh, canada, the breathtaking view of the rocky mountains. there is something wholesome, pristine, and pure about this country's image, but here is the canon that you might not think of, and dirty, industrial, focused on profit. welcome to the world's newest petros state and a changing company. today, they have oil, and lots of it. it is here in northern alberta, and as people around the world want ever more oil to fuel their cars and fly their airplanes, they have decided to develop these at breakneck speed.

the reserves are huge, the size of florida, and digging up the sand then separating out the oil is complicated and deans previously to be too expensive, but new technology has brought the cost down, and profits are up, and this attracts investors and workers from around the world. >> this is where the work is. this is where the money is. >> she is a long way from home. she came here from the philippines initially as a nanny but was quickly drawn to oil. now, this tiny woman drives a monster truck in the minds. -- mines. >> i travel every year. i can go wherever i want, and i actually supporting my family and my relatives, so it changed my life compared to what i made when i was a nanny. >> the oil has created a modern- day gold rush and local town has

doubled in size in the past decade. squints through the dust, and you can almost see it. but for people like another mill has lived here for years, the speed of development has alarming environmental consequences. >> we have to worry about the wildlife and the footprints that we are leaving on the land and how that is affecting the caribou and other. it is also the gas emissions, the water withdrawal. the sustainability of the environment. >> some of these concerns are addressed in a new form of extraction that does not disturb the landscape as much. these are less ugly, but they may be more harmful, emitting even more harmful greenhouse gases. >> what we can do as a producer is take steps to minimize our environmental footprint, so over the past number of years, we

have managed to decrease the size. we have taken steps to reduce our ratios, so our emissions and water usage are dropping. >> to the goodwill of oil companies, a risky strategy. >> canada has a very bad track record on the issue of climate change. there are simply no policies being put into place, particularly around oil and gas. there are no legislation is at the federal level that limits these. >> and that is where the views are conflicted. we want our oil cheap, plentiful, and clean. unfortunately, those demands are not compatible. >> that is a massive truck, and that was katty kay reporting. you have been watching "newsday" from the bbc. i am in singapore. >> and stay with us. a reaction to the euro zone crisis.

>> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> this is kim -- about to feel one of his favorite sensations. at shell, we're developing more efficient fuels in countries like malaysia that can help us get the most from our energy resources. let's use energy more efficiently. let's go.

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