patricia sabga patricia sabga reports. reports. >> urging their government to hold the line on new pension cuts and tax heights in exchange for fresh bailout funds. greece oas owes the imf 1.8 billion. but default could force greece out of the euro zone. alexis tsipras warns could reverberate throughout europe. >> translator: if the euro zone insists. >> seen as one of the last chance he for greece and its creditors to strike a deal. but wednesday germany's foreign minister suggested a break through was unlikely. >> translator: i notice that greece doesn't have the intention to come up with new proposals at the finance ministers meeting coming up on thursday. that makes time even tighter. >> reporter: uncertainty that's punished greek markets in recent days. with expectations fade fading fast for thursday, the next meeting of eu leaders to see if greece can strike an 11th hour deal. patricia sabga, al jazeera. >> visiting professor of international affairs at the new school here in new york in our studio, richard welcome.

patricia sabga explains. >> november 1979. students stormed the u.s. embassy in tehran taking 52 americans hostage. the carter administration hits back with economic sanctions but fails to win broad based global support. a lack of international backing that stretches into the '80s and '90s hampering efforts by the reagan and clinton administration to isolate iran over its nuclear ambitions. >> a lot of iran's neighbors were eager to do business with iran and didn't have the bad history with iran. >> reporter: but by 2006 a global consensus started to stay shape. after hard line president mahmoud ahmadinejad. in december 2006, the u.n. security council passed its first round of sanctions against iran. binding all member-states to enforce them. in june 2010 iran's oil profits and banking sectors were added to the u.n. sanctions list. paving the way for washington to up the anteand black list foreign banks this did business with iran np. in 2012, europe filed suit, game changers that decimated iran's economy and pushed you iran to the negotiating table. h

patricia sabga reports. >> a labor market gaining momentum. the u.s. economy added 280,000 jobs in may a stronger showing than economists expected that pulled this month's average back over the unemployment part. the be unemployment rate ticked up to 5.8%, for the right reasons, those who are actively looking for jobs hit a four-month high. the construction sector continued to strengthen, adding 17,000 new jobs last month while areleisure and hospitality ticked up. mining continued to disappoint due to lower oil prices spurring oil cuts among u.s. shale oil producers. but one of the biggest upside surprises in this report, average hourly earnings posted their strongest gain in two years jumping 8 cents to $24.96. that's a 2.3% gairn gain ore last year. shy of what fed chair janet yellen would like to see but definitely headed in the right direction. patricia sabga, al jazeera. >> andrew in san francisco there was an uptick in wages but not much. so is that a positive sign? from i think everybody has been waiting for the other shoe to drop on wage growt

patricia sabga explains. >> satellite photos of china gaining grounds ground.ing islands to cement its claim over disputed territory in south china sea. a projects that's drawn strong rebukes from washington. >> we want a peaceful resolution of all disputes and an immediate and lasting halt to land rereclamation by any nation. >> foot holds for asserting rights over rich fishing grounds and potentially vast undersea reserves of owl and gas. such riches led to heightened tensions. china is not the only country that's carved out territory in the south china sea. other countries have been building outpost thrts for the there for the past 20 years. a fact beijing says is not reflected in u.s. rhetoric. >> countries such as vietnam philippines, even malaysia, they all have viewed more construction ton reefs and islands than china. before it started. >> china has reclaimed some 2,000 acres in the south china sea since last year. more than all other claimants combined. power play that troubles washington because of tensions between china and its nation escalate into a

patricia sabga has the story. >> in large part who's not at the table. the g7 does not include china. the world's largest economy. by purchasing power parity, china is harvesting its vast foreign exchange reserves, fellow brix nations to create the new development bank and bailout fund. and pouring billions into projects beijing will hope to underpin a new silk road. but china's powers really hit home earlier this year when more than 50 countries including four g7 nations rushed to become founding members of the new china led asian infrastructure investment bank. >> well, the g7 is losing ground when it comes to global clout economic number. >> waning power underscored by russia's economic pursuit of economic ties with china to undermine sanction he over ukraine. >>> the crisis in ukraine is one of long issues the g7 is tackling this summit. the question is whether that will yield coordinated policies, or produce yet another photo open of a club whose power is fading. patricia sabga, al jazeera. >> and iraq's prime minister is also attending. haider al-a

. >> g 7 is a very elite club and patricia sabga join us now. the language of power that we're hearing out of the summit, but are we likely to hear power that will impact it? >> g 7 has a lot on its plate but given who is not at the summit many are questioning how effective this elite club really is. it's the most elite club on earth, but the group of seven to call the shots aren't what they used to be. >> the way global order is organized. they're less important than they were a number of years ago. >> thanks in large part who is not at the table. the g 7 does not include china the world's largest economy. china is harnessing it's reserve to project that clout joining forces with fellow brazil, russia india south africa to create the development bank and bail out funds and pouring billions into projects that beijing hopes will create a new silk road encompassing asia, africa. but it hit home when more than 50 countries including four g 7 nations russiad to become founding members of the new china led asian infrastructure investment bank. >> whe

patricia sabga looks at how it's all unfolding. >> it's the most elite club on earth, but the g 7's power to call the shots globally is not what it used to be. >> the way global order is organized, and the g 7 are less important than they were a number of years ago. >> thanks in large part at who is not at the table. the g 7 does not include china the world's largest economy china is harnessing it's vast foreign exchange reserves to project that clout joining forces with brazil, russia, india and south africa to create the new development bank and bailout fund. and pouring billions into projects beijing hopes will under pin a new silk road encompassing asia, africa, europe. but china's power really hit home earlier this year when more than 50 countries including four g 7 nations rushed to become founding members of the new china-led asian infrastructure investment bank. >> when the juxtapose those with the g 7 you may say well, the g 7 is losing when it comes to global clout and economic must. >> well, waning power underscored by russia's pursuit of closer economic and military ties with

. >> patricia sabga, thank you i appreciate it. >>> meanwhile, puerto rico is facing a accident crisis of its own. the island's governor says it cannot repay a debt. and over the weekend said the island is in a financial death spiral. he wants to defer accident payments while negotiating with creditors but puerto rico is simply running out of time. some call the island the greece of the caribbean. unemployment of 28% and health care system the in crisis. 11% cut to medicareand medicaid. and doctors are leaving puerto rico at a rate of 500 per year. more than 200,000 puerto ricans have left the island. >>> another victim of the shooting at the charleston church will be laid to rest today, myra thompson will be late to rest. have vice president joe biden made a surprise appearance at the sunday services for emmanuel ame. it hemmed a service for dee payne doctor. . >> charlotte north carolina, another fire broke out in god's power of christ in macon georgia. another fire investigateas arson. no deal yet but world leaders are still working to reach an agreement on iran's nuclear program. d

patricia sabga. thank you. puerto rico is facing a debt crisis of its own. the governor is expected to release a reform plan today and over the weekend said that the island is in a financial death spiral. he wants to deter debt payments but some say that puerto rico is simply running out of time. >>> some call puerto rico the greece of the caribbean. the island has an unemployment rate of 14% per capita income is about half that of americans living on the mainland. the healthcare system is in crisis. and 11% cut is scheduled for medicare and medicaid. because that have doctors are leaving puerto rico at a rate of 500 per year. 200,000 puerto ricans have left the island. secretary state john kerry said that it's too soon to tell if negotiations on iran's nuclear program will meet its deadline. world leaders are in vienna to hammer out a deal before tomorrow night. we spoke with senior analysts with the international crisis group saying if even if the deadline passes with a new deal, the talks are too big to fail. >> this was self imposed by the negotiators. t

. >>> both nations have been jockeying for influence in the region but as patricia sabga reports, beijingn increasingly powerful weapon in its arsenal persuasion. >> reporter: state run tv on american airwaves, programs spreading chinese language and culture abroad. a new bank soft power plays, beijing hopes will win over those who are wary of china's growing influence. >> u.s. being overparanoid about, oh everything about china. and china is being examined under the microscope and so that's why you heard all of those nasty [ inaudible ] over the years. >> reporter: and beijing is spending billions to change the conversation chinese news outlets, cctv global times, and china daily. >> the international media has become bombarded by western news organization and china's voice cannot be heard clearly or loudly. >> the government funded institute teaches mandarin and chinese culture to 300,000 students in the u.s. alone, but the program has been clouded by controversy. >> many host universities where they are established in the united states, for example, have learned to be wary of the fact

patricia sabga is here now to break it down for us.atty there had been talk and concerns about a slowdown in the first quarter. this report suggests that in may things picked up. >> things definitely picked up last month, let's hope that it holds, david. let's take a look at the headline numbers. 280,000 jobs were created last month. that was far above what most economists were expecting, and leaps ahead of the previous average for the year which was below 200,000. the unemployment rate went up but more people were participating in the work force either by working or actively looking for a job. construction and leisure and hospital are feeling good about their summer business. mining was still a weak spot because depressed oil prices have lead many firms to cut spending and hold off on new projects. >> we know that this is not just about jobs that in order for the economy to truly recover wage growth has got to pick up. what is the latest on that? >> we had a pretty good showing on wages. average hourly wages picked up $0.08 to $24.96

patricia sabga is here. >> they're portraying this that it doesn't matter if putin is not welcomed by the g 7 and what better way to demonstrate that than to travel to the heart of europe to discuss pressing global issues with one of the most influential leaders in the world. the crisis will likely be on the agenda. the pope has called for both sides to respect the cease-fire, but the pope has not taken sides despite the urgings of the catholic church to condemn russia. >> a tremendous amount of meeting. he essentially canceled out the fact that he was cut out of g 7 because it's just--now. >> now this trip is an opportunity for putin to showcase his christian credentials. that's a cornerstone of his power. the russian orthodox children filled the vacuum left by the championships of collapse of communism. he is playing the christian card on the global stage casting himself as a defender of christian communities in the middle east who are under attack by isil and other armed groups. >> you talk about the global stage here. does his role resonate beyond russia? >> it does resonate beyon

patricia sabga is here to break it down for us.or one thing, the estimates came in above expectation. >> exactly. and this was a very encouraging jobs report. let's take a look at the numbers. the economy added 280,000 jobs last month, far above what most economists were expecting, and leaps ahead of the previous average. the unemployment ticked up slightly, but more people were participating in the labor force. as for the mix of jobs we added 17,000 construction positions, and 75,000 in leisure and hospitality, that signals those industries feel good about their summer business. mining still a weak spot. and you can chalk that up to the oil firms that have had to cut spending and layoff workers. labor force participation did tick up slightly so don't read too much into that slight bump up if you will in the unemployment rate but the other thing we'll take a close look at here is average hourly wages. let's take a look at those numbers and pull those up. average hourly wages jumped $0.08 to $24.96 an hour. that's up 2.3% year-over-

patricia sabga joins us to shed some light on this. with what kind of global fall out are we likely to see going forward now. >> now markets hate uncertainty and greece is shroud with them. now this morning european leaders said that greece won't be simply voting on the bail out package but whether to stay in the eurozone. according to referendum directly with the eurozone membership ups the anty. to give you an idea of how desperate the language is becoming they've urged greeks to vote yes to the bail out package. german chancellor angela merkel tried to eject a vote of calm. she wavered a carrot of sorts saying that european creditors would be open for talks after the ballots are cast. >> today we have made it clear that should the greek government ask for negotiations, for example, after the referendum, we would have, of course, not refused. >> now ahead of merkel's comments rattled investors were selling stocks, they're also going sour on euros and government debt in italy portugal and spain. but they have to park their money somew

patricia sabga is joining us now with more. >> putin's comments certainly sound reactionary when youk at them in context. by boasting about russia's new missiles and implying that the technology is no match for them he is reacting to the u.s.'s reports that they are considering repositioning weaponry on russia's doorstep. so putin is basically countering that plan with yet more cold war style rhetoric. he made his remarks at the opening of a military theme park on the outskirts of moscow so it's a rhetorical challenge to nato and the u.s. and a symbolic exclamation point if you will. he has talked about icbm's before, those are the long-range missiles that can carry nuclear war heads to the united states. if anything it appears that russia seems to be scaling back but when putin raises the specter of nuclear weapons western leaders have to respond. >> this nuclear saber rattling of russia is unjustified. it's destabilizing, and it's dangerous. >> reporter: secretary of state john kerry also weighed in saying nobody should hear that kind of aunderstand noment from the leader of a powe

patricia sabga has the story. >> radically transform turkey's ruling party. >> primarily erdogan's. >> needs to win a big enough majority in parliament to constitutionally change the role of president from figure head to most powerful figure in the nation. but some are concerned about turkey's drift towards authoritarianism. since antigovernment protests swept the country two years ago ago, internet restrictions, crack down on the media expanding of the powers and favoring the ruling party have all happened on erdogan's watch paving the way to a system that could bear little resemblance to the american model. erdogan has significant political backing but so does the opposition. >> turkey is quite polarized and there is some concern in washington whatever the outcome is there is likely to increase the political tension in turkey. >> which has ramifications for u.s. policy in the region. turkey is the only nato member that shares a border with iran. turkey is also a key ally in the fight against i.s.i.l. the washington and ankara have serious differences. antiassad coalition that includ

patricia sabga is al jazeera. >> in typical fashion president putin arrived an hour late, he has kept many late, including 800german be prime chancellor angela merkel. >>> russian backed forces in eastern ukraine. >> in washington today cuba installed a flag pole at its diplomatic headquarters. for now it remains the cuban intersection symbolic statement on strengthening ties between the u.s. and cuba. the site is likely to become the first cuban embassy in the last five decades. no flag will fly until they decide to officially restore diplomatic relations. >>> why posing in the nude will turn out to be a bad idea. >>> and the love affair with people and their shoes dating back thousands of years. years. >> after six weeks of fighting >> you must make you're voice be heard... >> struggling >> it's very scary... >> dreaming >> we're actually working on that as we speak... >> where are they now? >> nothing was given too us, we had to earn everything... >> see how it all ends.. >> all of the other families they give us hope... >> i know that keeps me going... >> we just have to keep doin

patricia sabga explains. >> reporter: to understand how greece got into this mess you have to go back 2000 when greece was admitted to the euro zone. countries couldn't join the euro zone if their spending was too high. and greece concealed how much it was spending on a pension system and other things. investors began to no longer turn a blind eye to greece east budget issues. by 2010 greece could no longer afford to issue its death, forcing athens to turn to the ifm, and the european sencentral central bank for two rounds of bailouts. the problem is that bailout money came with painful strings attached like deep cutting in the spending and that caused the economy to contract even further. greeks were thrown out of work the general unemployment rate tanked at 28%. and youth unemployment is still more than 50%, which begs the question can greece ever repay its debts? the consensus is not without some fort of debt forgiveness, which brings us to a major sticking point. greece wants the relief to be included in a new bailout deal. now everyone is wondering whether greeks will vote no to

in context, patricia sabga looks at how china is finding ways to soften its image. >> reporter: china tv on american airlines a new bank to finance development in emerging companies. soft powerplays beijing hopes will win over those wary of china's growing influence. >> u.s. being overparanoid about everything about china. and china examined under the microscope. that's why you hear the nasty rhetorics over the years. >> reporter: beijing is spending millions to change the conversation pushing into overseas media market with state-run news outlets, xinhua global times and china daily. >> international media is dominated by western organization, and china's voice cannot be heard clearly and loudly. >> the soft power message can get big reviews. the government funded institute teaches mandarin and culture to 300,000 students in the u.s. alone. the programme has been clouded by controversy. >> many host at the universities, where they are established in the united states for example, learnt to be weary of the fact that they are poll it sized, at least in certain times and places. >>> chi

patricia sabga reports. >> reporter: on the floor of the u.s.ate tuesday, there was a lot of debate about what kind of day it was. >> i think it's a sad day today. >> this is a very important day. >> it is not a great day. >> reporter: the president is happy. he is one critical step towards a top priority getting the trans-pacific partnership done. it's a free trade deal between the u.s. and 11 other countries. negotiators wanted something from the u.s. congress first a promise that lawmakers wouldn't be able to change the deal just vote yes or no. with this vote it's all but certain the president will have that ability soon. >> their worry was this if the united states president makes a deal with you, can he in fact back that deal up or will it be subject to amendments and changes from the congress which you didn't negotiate? so in order to have a president who can keep his word on his negotiations, you have to have fast track authority. >> reporter: labor unions lobbies hard to go against the president. >> this is supported by wall street by t

patricia sabga joins us with more. >> it smacks of stalemate. this drama has involved five months of negotiations and finger pointing over who's to blame for the impasse. german chancellor angela merkel said she was convince add deal could be struck with greece to free $8 billion of bailout funds needed to pay a bill due at the end of this month. anti austerity demonstrators took to the streets in athens, urging their government to hold the line on new pension cuts and tax hikes europe is demanding in exchange for a deal. the demonstrations came the same tape as greece's central bank urged alexis tsipras to accept a deal warning grease could crash out of the european union. >> the uncertainty has hammered greek markets this week. the fallout of a greek debt default could stretch beyond greece and europe, a point underscored yesterday by fed chair janet yellen warning the global economy could experience significant disruptions if a deal is not reached. >> coming up, an approaching deadline, undocumented migrants in the u.s. may be left in limbo i

patricia sabga joins us with more. >> it's like a slow motion bank run is what we're seeing now. have been hemorrhages deposits for months as talks with its european creditors to unfreeze billions in bailout funds. if greece doesn't get that money, it will probably default on a massive debt owed paving the way to exit the euro zone. fears are mounting the flow of money in and out of the country may be frozen, prompting greeks to pull money from banks this week raisessing concerns of collapse and the mayhem that brings. that's why the european central bank must decide quickly whether to shore up the bank by giving them more emergency loans. it is not the only body to call an emergency meeting euro zone leaders will try to hammer out an 11th hour deal on monday. demonstrators have been taking to the streets of athens urging the government to hold the line on pension cuts. alexis tsipras said a deal is still possible. an announcement he made from russia. >> interesting the timing of that trip. >> his trips to russia have been very interesting. the last one happened to coincide with

patricia at a sabga is here. we can't have a conversation without talking about saudi arabia can we? >> absolutely, tony. as you well know, saudi arabia is by far the dominant power in the 12-member cartel. now the last time opec met oil prices are sharply deblessed. and they continued without you had can cutting production. now sr. said its keeping the taps open to defend its market share against u.s. shale oil producers. the kingdom is in great position to do this because it's production costs are among the lowest in the world while u.s. shale oil is relatively expensive to produce. and many u.s. shale firms have cut spending and new drilling as prices have dropped. but it's not just the u.s. that the saudis are under cutting but opec rivals iran. that's why many suspect mr. there was a political incentive driving the saudi pricing strategy. today iran needed the oil to balance its books and it's oil is fetching half of that right now. tehran is grappling with international sanctions but has indicated it will s