>> welcome to "the journal." >> welcome. >> our headlines at this hour -- you and concerns over libyan refugees -- hundred threat to have drowned trying to escape the fighting. mississippi's worst flood waters in nearly a century peak in tennessee. >> microsoft laid down at 6 billion year rose to take over internet phone service, skype. >> the united nations agencies

have appeal to the european union and to native to increase our efforts to rescue refugees crossing the mediterranean from libya. the request follows reports that dozens of people may have drowned when a vessel with 600 aboard sank off the coast last week. another refugee boat sank off the coast of italy with a loss of life as a number of migrants from north africa chose -- shows no sign of letting up. >> divers searched for hours off the coast. they recovered three bodies, all of them refugees who drowned when their boat hit a rock. a number of migrants arriving is increasing by the day, so is the toll of those who do not make it. the u.n. refugee agency has urgently call on the european union and nato to do more to help. >> we are asking all vessels,

commercial and military remain vigilant at this time. with the understanding there are many boats packed full of migrants and refugees escaping the violence in libya. >> the un has accused nato of refusing to help both the was a draft and 60 people on board died. in brussels, the alliance rejected charges, showing pictures of what it said was its rescue operation. >> ships under nato command will always respond to calls from shipin distress. this is a duty and the law of the sea and to suggest our ships would do otherwise is unfair and disrespectful. >> thousands have fled libya and the past few months. 2000 refugees arrived just last weekend. >> the german chancellor has expressed solidarity with pro- democracy movement in the middle

east. she made the comments during talks with the secretary general of the arab league. at a press conference afterward, she said an improved economy was the key to peaceful and democratic developments in the region. she says she understands the hopes being in place with european states. she welcomed the european support of democratic reform at at was called a crucial juncture in the arab world. the arab league head is due to meet with the german foreign league on wednesday. the european union has tightened sanctions on the syrian government. that -- that includes asset freezes and travel bans including the brother of bashar al-assad. a video posted on social media sites reportedly shows protests in the capital, damascus. the secret police are said to be whisked away demonstrators in an unmarked van.

other video shows tanks on the road. as the violence escalates, the un has called on syria to stop blocking a humanitarian mission to the country. thousands of volunteers and emergency crews are battling high waters along the mississippi, the biggest river in north america. the national weather service says the river has peaked in memphis, tenn., but warned of the situation remains critical for a least another 24 hours. states downstream are scrambling to secure lobbies as the flood crest rolls toward new orleans at the mouth of the mississippi river. it has swollen to six times its normal with in the worst flooding in decades. >> emergency workers are patrolling the flooded area in special and tibias vehicles. they're looking out for people who need to be rescued. the waters of the mississippi have involved some low-lying neighborhoods, cresting at almost 80-year high of 14.5

meters. hundreds of residents are in shelters. authorities say there is good news -- the levees should hold as long as the weather does. >> we're going to be a little further away for many predicted rain event. rain on top of a crest always means a problem for us. we are still watching the dynamics of that. >> the extent of the flooding can be seen from the air. the mississippi has inundated low-lying towns and farmland along the banks. north of new orleans, army engineers are devoting some of the flood waters into lake pontchartrain. that should ease pressure on the city's levies. the pressure underneath the water on the sides of the levees is so much that you can start to see oils come up on the protected site of the levees. that is what we were trying to prevent. >> authorities are confident the levies will hold out. but it's only when the water

recedes that they will be will account the cost of the damage. >> the united nations secretary general has called for an has preparations against nuclear accidents and disasters at a roundtable conference in geneva. he announced he is convening a high level meeting in new york on nuclear safety. the disaster at the fukushima nuclear power plant in japan has raised questions about the future of nuclear energy. tokyo is embarking on a complete overhaul of its n energy plants as the government begins allowing evacuees back into the contamination zone for short visits. >> people returning to their homes for a brief visit were examined of geiger counter -- higher counters and a bag their possessions. they boarded government chartered buses to take them to the village there were forced to leave two months ago dream of

fukushima nuclear crisis. authorities gave them just two hours -- not much time to find passports, bank stations -- bag statements, pictures and mementos. >> it is difficult to find the things i want. >> and memory of more carefree time before disaster struck. it is a short trip back to the shelters. they join the tens of thousands of japanese still living in temporary facilities. fukushima has shaken the country. the prime minister has put the country's nuclear policy under review. japan had planned to build 12 new reactors in the next two decades. that is now very much in question.

>> skype has a new owner. >> some are surprised at the cost. it is official now -- computer giant microsoft has confirmed it has bought skype. it's the largest deal in the history of microsoft and is worth around 6 billion euros. that may seem like a lot to spend on what is considered a lossmaker, but microsoft is eyeing their web savvy users as a way to boost its ailing smart phone business. >> skype let people make net- based phone calls and chat t video for fleet -- for free. i popularity has spread like wire fire -- like wild fire. they have become a major player. by incorporating skype into its own business, microsoft has beaten other internet giants like facebook and google. at the last count, skype had a

663 million registered users. in 2010, they posted the equivalent of 600 million euros in sales with losses of nearly 5 million. skype gives away its software for free. they're relatively few users. steve ballmer is willing to set aside 6 billion euros for the takeover. microsoft has already introduced a new system for its mobile phones but says google and apple remained one step ahead. >> let's have a look at some marketembers. in frankfurt, the dax closed up 1.2%.

the dow jones industrial average closed up word -- upward. the euro is trading $1.44. first greece, ireland, then the portugal will get a rescue package worth 78 billion euros. portugal is the poorest country in western europe and agreed to the cash injection from the european union and the international monetary fund last week. pressure on the country is mounting. >> portugal has agreed to do some serious belt-tightening. the plan includes widespread privatization and a broad liberalization of the labour market. the european union predicts tough time ahead. >> it has always known these programs will be not any kind of

sunday walk in the park. they will be very difficult and demanding. >> in return, portugal will pay its rates of about 6% on its loans. far lower than without the european union guarantees. some say they are least partly responsible for those countries receiving bailout. >> the best thing to do is take action on greece and ireland. otherwise, they get into trouble. >> especially greece. there are rumors the european union is preparing a package for athens. those reports have been denied. tax revenues have plummeted in greece as austerity measures take hold. the economy is suffering. criticism is mounting after a meeting of select finance ministers to discuss the greek debt situation. >> what happened last week and will lead to the opposite of what is needed. the increasing sense of panic

will not bring stability to the eurozone. >> efforts to find a solution are increasingly unsettling the financial markets. >> china has reported its big trade -- its biggest trade surplus in months after a trade deficit in the first quarter. it surged by about 8 billion euros, fight -- far higher than expected. beijing has pledged to make it easier for companies to win chinese government contracts. this addresses the longstanding complaint of foreign corporations seeking a piece of the chinese market. u.s. treasury secretary tim geithner said he saw the direction as promising. the european union plans to reform its system, allowing the economically weaker companies -- economically weaker countries lowering duties for the european market.

the reformss were presented by the new commissioners. >> chinese imports are capturing a growing share of the european market, yet some products still enjoy preferential treatment. the european union currently extends tariff benefits to an average 76 countries through what is called the generalized system of preferences. it provides easier access to european markets. the proposal would drastically reduce countries benefiting from the program. >> almost 40% of our current preference is to benefit russia, china and thailand which no longer need the preference system and they have built upon their success. >> from now on, preferential tariffs will only be extended to country's leading growth benefits. they will be expected to respect

human rights and meet environmental standards. >> in germany, the coalition government will see a cabinet reshuffle with new economic ministers taking sid. it all involves the junior partner in the prime minister's coalition of -- in the chancellor's coalition. the incoming party leader and current health minister, philipp rösler will take over the portfolio of rainer brüderle. they hope will boost their flagging poll numbers. to explain the impact of these chchges, we are joined in the studio by our parliamentary correspondent. the business friendly ftp has seen its fortunes plummeting in the polls. will this move improve their fortunes? >> they are certainly hoping that will, especially after two

disastrous results in state elections this year. it means the new party leader, philipp rösler, will have the tough and experienced economic minister and up until now, rainer brüderle, on his team of pushing key economic policies in parliament. at the same time, we see a new generation coming in with people like philipp rösler and the new health minister -- there h h been a bit of wrangling and in fighting which threatened to upset the transition, but there is a new party leader taking over. >> a new generation comes to the fore for the freak jump -- for the free democrats. what does this mean for the chancellor and her coalition? >> the coalition has been suffering problems of its own as a result of the troubles. i think she will welcome a more

focused and concerted free democrat party. you will have to reshuffle the cabinet a little bit, perhaps altering the balance of personalities. some democrats may work -- may welcome the distraction, but they wanted a strong fdp, because they are the preferred conservative partner. >> this summer marks the 50th anniversary of the construction of the berlin wall by the east german communist regime. the occasion is being marked by a new exhibition here in the capital. there are photos by the man who worked for a west german newsmagazine and other works. both men documented life behind the iron curtain up until the very end of the cold war. stay with us. we will be back with a look at german language theater and how

it is coping with mounting financial pressures.

>> and thank you for staying with us. some of the most fascinating german language tutor projections are pay -- are playing to sold-out audiences in berlin. they are showcasing 10 productions selected from more than 350 plays from germany, austria and switzerland. the global financial crisis, collapsing social structures and other things are dealt with -- both by new offers an old and being interpreted by new generation of directors, capturing the audience's imagination with time tested teams. >> [speaking german] . >> he demands of his actors what

he demands of himself. he is constantly jumping onto the stage to show them what he wants. >> i'm n interested in economy. i want to jump in at full tilt and come out with a bang at the end. >> the projections were featured at the festival in berlin. if the classic marital drama unfold as a bourgeois horror show where zombies and had a spooky, misogynist society. grotesk burlesque. it's a quintessential production. >> my vision of theater is entirely in are jack.

>> the comedy breaks new ground with a hard-hitting take on the plate. >> suddenly i am getting prizes and have been invited here. everything is happening so fast, i'm astounded is happening to me. it's very gratifying. >> he developed skills as an actor under the legendary director, but left t e stage in 2000 to experiment with film and internet media. when he returned to the as a director, he was over 50. >> a lot of people said to me you are far too old to do something different. i can tell anyone that you can start something new in any time in your life. it's never too late to reinvigorate yourself for your mind. >> the undisputed darling of the

theater festival in berlin is just as intense, physical and fast-paced as his production. >> some of the productions have come from theaters biting for their financial survival. germany is estimated to have more theaters per-capita than any other country in the world. 150 of them are state subsidize and many have had funding slashed. the challenge now isow t manage with less money, out compromising artistic standards. -- without compromising artistic standards. >> the production of "my fair lady" includes 45 singers, 20 dancers, and nearly 100 technicians. it is an expensive production,

the kind of the state of supported company can afford. but it isot clear for how much longer. >> it's a different level than you'd see in a small metropolitan theater. maintaining the standards is hard. if we have to make cuts, it will not be possible. >> the operating budget is 22 million euros each year. their deep in debt and have to make cutbacks. that translates into about 3 million year rose less for the next season. they stage plays and that gave up -- have a ballet company and opera ensemble. dozens of craftspeople work behind the scenes. these designs are part of protections that attract 200,000 people each year. the workers are proud of what they create, which is helped

develop into a regional cultural center. >> it would be a bad sign if they closed the theaters. >> the ballet company cost 1.5 million euros each year. can a city that needs to save money afford one? >> the argument is we have to think about our children and not pass our debt on to them. that is right, but it's important to think about what kind of country we want to live in and what it will look like in the future. some values go beyond finances. >> this is the final rehearsal before the premiere. it's a piece based on the recycle. they do it without an orchestra,

a soloist for chorus. it is a creative experiment that has nothing to do with cutbacks, at least for the time being. >> the up-and-coming directors are under the most pressure. they are expected to deliver sensational theater wi drastically reduced budget. despite intense competition, there are those who have found their way to success. >> up-and-coming directors are expected to come cheap, the innovative and successful. if you flopped, you are dropped. he's been directing for 15 years and has climbed the ladder rung for run. >> i think conditions have come more extreme. there are fewer jobs unless individuals picked out each year. and they are really exploited, thrown in to swim with sharks.

>> his productions have become audience favorites. he's now one of the house directors at the maxim gorki theater. he enjoys the trust and continuity many dream of. he owes much of his success to this man -- he manages young and up-and-coming directors. the former theater director handles the contracts, gives advice, and is very well connected. >> i have met anybody who is anybody in the last few years. i can help with a quick call to connect them with somebody they would not normally have access to. >> with the help of his network, he has advanced quite a few careers, but he also looks after his charges and make sure they are not chewed up by the theater machine. >> i tell the directors to take

breaks and not to do too much. a break or a trip to be a nice change for directors. >> by necessity, she directs between four and six productions a year. >> i cannot pick and choose because i can't say i'm not doing that one. i am taking half a year off because i need to do my bills. >> she is directing pieces by young playwrights with an experienced actors for little pay. would you like to have a manager like this? >> i would not say no. i think my fees would improve. >> better pay, a logger contracts, and a chance to work on big stages. that is what germany's up and coming directors are dreaming up. but they know they cannot make it alone. >> that is our look at german

theater in the age of budget cuts. thank u fojoing us.

ow! of course. thank you. i'd call her honeydew goodbody, not lisa. the very fact that she is called lisa proves that she exists.