NPR 2011-07-12

President Obama is ratcheting up pressure on Democrats 1 and Republicans to reach a deal on deficit 2 reduction no matter how painful.

"I'm prepared to take on significant heat from my party to get something done. And I expect the other side should be willing to do the same thing if they mean what they say, that this is important."

The president at the White House earlier today saying a compromise may involve what he calls meaningful changes to Social Security, Medicare and Medicaid. That idea's running into Democratic resistance. NPR's David Welna reports the GOP remains 3 dead set against raising taxes to cut deficits 4.

Before going to the White House to meet the president, House Speaker John Boehner responded to a news conference Mr. Obama held earlier today.

"I agree with the president that the national debt limit must be raised, and I'm glad that he made the case for it today. But the American people will not accept — and the House cannot pass — a bill that raises taxes on job creators."

The line Boehner drew on no new taxes was repeated by the No.2 House Republican Eric Cantor.

"They're for raising taxes. We're not."

President Obama says any deal cutting deficits must raise taxes on high-income earners including himself. Should Congress fail to raise the debt ceiling by August 2nd, there could be the first default ever on the national debt. David Welna, NPR News, the Capitol.

We've been seeing US stocks sliding today, but Moody's Analytics' Gus Faucher says he doesn't think it has to do with debt talks.

"Obviously, there's concern about what's going on with the debt limit in the United States. But at the same point, we've actually seen, uh, yields on treasuries 5 go down. So it doesn't appear at this point that, that investors 6 are too concerned about the US inability to repay its debt."

Investors are more worried about debt troubles spreading in Europe, where it appears Italy is being affected 7. This on top of ongoing 8 concerns that a slowing economic recovery has weighed down world markets. At last check on Wall Street, the Dow was down 152 points, more than 1%, at 12,505, and the NASDAQ was down 2% at 2,803.

The State Department is condemning 9 the Syrian government for failing to protect diplomatic staff in Damascus today when mobs of government supporters attacked the US and French embassies. Syria accuses the West of fueling an uprising. NPR's Deborah Amos reports there were no known casualties in the US embassy attack, but there was physical damage.

You can see graffiti on the walls. The glass windows are shattered in the front of the building. There's a Syrian flag on the American embassy. There are police, well-patterned police, riot police out there, but there were still demonstrators in the street as late as late afternoon, still shouting, still marching, wrapped in Syrian flags.

That's NPR's Deborah Amos reporting from Damascus.

This is NPR News.

Russia is observing a day of mourning for those killed when a tourist boat sank in the Volga River over the weekend. Dozens of people were rescued; however, many more have been missing and are feared dead. Authorities say the death toll 10 may be as high as 128. We have more on this from Jessica Golloher in Moscow.

Russia's Emergency Ministry 11 says there's little hope of finding anyone alive after the Bulgaria, a double-decker river cruise boat, sank about two miles from shore in Tatarstan. As many as 60 children were believed to be on board. Witnesses say the boat tipped over to one side when it hit a wave and then sank. A spokesperson for the Prosecutor 12 General's Office says that the boat was not licensed 13 to carry passengers and had a problem with its left engine. Officials also say the boat had not been retrofitted or inspected in years. For NPR News, I'm Jessica Golloher in Moscow.

Many Cypriots are also in mourning for those killed in an explosion at a military base that was holding Iranian munitions 14. At least 12 people died and more than 60 were wounded today. Officials say the explosion also knocked out the country's largest power station. Cyprus' defense 15 minister has resigned over the incident.

News International is investigating allegations that its journalists illegally obtained former Prime Minister Gordon Brown's personal information. The medical records of his son Fraser may have also been breached 16. The Sun reported in 2006 that Brown's son had cystic fibrosis. News International owns the Sun and the Sunday Times. It also owned the News of the World which tycoon 17 Rupert Murdoch shut down last week amid allegations of phone hacking 18 and illegal payments to police.

I'm Lakshmi Singh, NPR News in Washington.