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And with the ongoing support of these institutions and. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Woodruff heavy fighting seized Eastern Ukraine today, one day after president Petro Poroshenko ended a ceasefire with prorussian rebels. Within hours, a gun battle broke out in donetsk, as rebels captured the interior ministry headquarters. Government forces also bombarded rebel bases and checkpoints. In moscow, russian president Vladimir Putin said the blame lies entirely on the kiev government. translated unfortunately president poroshenko made a decision to resume military operations. And we could not, when i say we, i mean myself and colleagues from europe, we couldnt convince him that the road to a sustainable, durable and long term peace cannot lie through war. Woodruff separately, European Union ambassadors put off deciding on new economic sanctions aimed at russia. They said theyll make a decision next week. A car bombing in nigeria has killed at least 56 people in a busy marketplace. The explosion erupted today in the Northeastern State of borno, where more than 200 girls were abducted earlier this year. There were no immediate claims of responsibility, but officials blamed the Islamist Group boko haram. In israel, bus loads of mourners turned out for the funeral of three israeli teenagers, apparently murdered by Palestinian Militants in the west bank. The young mens bodies were found yesterday. Lindsey hilsum reports from jerusalem reporter tens of thousands came to modiin cemetery between tel aviv and jerusalem today to mourn three israeli teenagers 19yearold eyal yifrach, and 16yearolds Naftali Frankel and gilad sher. The funeral was a channel for public outrage as well as the private grief of the families, and a political event attended by israels top leadership. They glornied death and we glorify life. They floorfy cruelty, and we glorify mercy. In hebron last night Israeli Soldiers raided the house of amar abu aysha, one of two palestinians suspected of kidnap and murder, his relatives knew what would happen next Israeli Forces demolished the family home. The two men, both associated with hamas, but not believed to be acting under orders from the leadership, are still on the run. In jenin the funeral of another young man, 19yearold palestinian, yusuf al zagha, killed by Israeli Forces who said he had thrown a grenade at them yesterday. His death brings to six the number of palestinians killed in operation brothers keeper, the israeli attempt to capture the killers of the yeshiva students. Last night, Israel Attacked 34 sites in gaza, retribution not just against hamas but also the residents of the territory there may be more to come. Woodruff those air strikes came after militants in gaza fired more rockets into israel. The Israeli Cabinet is still considering a direct response to the killing of the teenagers. Cabinet leaders in japan today loosened limits on the countrys military that have been in place since world war two. The new policy means Japanese Forces will now be permitted to join in defending allies, and not only japan proper. Prime minister shinzo abe argued the change is essential in the face of chinas growing military power. The u. S. Navy has its first female fourstar admiral, who also happens to be the first African American to hold that rank. Michelle howard was formally promoted today. Shes been in the service for 32 years. It became official during a ceremony at a memorial to women in the military, located at Arlington National cemetery. If you dont believe today was a first, when i called to order four star shoulder boards for women they didnt exist. A special contract was sent and you folks are seeing the first set in the history of the United States navy. Woodruff howard now assumes the navys second highest post as vice chief of national operations. Parts of the midwest got even more rain overnight and today, after a week of downpours. Six states faced substantial flooding along the Mississippi River and other waterways. In iowa, crews searched for a teenager who was swept away. Todays rain also swamped a major highway leading to Chicagos Ohare International airport. The new Health Care Law is facing yet another challenge. It turns out there are discrepancies for many of the eight Million People who signed up for coverage in the personal information that was shared with the health exchanges. The problems could prevent them from getting insurance. The Inspector Generals Office at theepartment of health and Human Services reported the findings. Officials say they hope to clear up most of the cases this summer. American auto makers saw their sales grow again in june, but at a slower pace. Chrysler led the way with a 9 chrysler led the way with a 9 increase. General motors, toyota and hyundai all reported smaller gains. Ford sales fell ford sales fell 6 . Woodruff on wall street, july got off to a fast start after upbeat reports on manufacturing in the u. S. And china. The Dow Jones Industrial average gained 129 points to close at a record 16,956. The nasdaq rose 50 points to close at 4,458. And the sandp 500 added 13, to finish at 1973, also a record. Still to come on the newshour iraqs fractious politics; protests in hong kong call for the right to choose their own leaders; vietnams struggle with sex trafficking; facebooks controversial study testing users emotions; and the term that just ended at the supreme court. Woodruff the United Nations reported today that 2,400 iraqis were killed in the month of june, making it the deadliest month in the country since 2007. Meanwhile, in baghdad today desperate hopes for political unity were dashed as there more signs throughout iraq showing a nation pulling apart. Our chief Foreign Affairs correspondent Margaret Warner reports. Warner fingerpointing and shouting matches dominated todays brief first meeting of the new iraqi parliament. In less than two hours, minority sunni and kurdish lawmakers walked out. After majority shiites failed to agree on a new Prime Minister to replace nouri almaliki. Hes widely blamed for alienating both sunnis and kurds. The deadlock further delays the formation of a new inclusive government, leaving baghdad residents fearful as sunni insurgents advance toward the capital. translated a large number of the blocs will not attend the parliament session, so i dont believe they will be able to form a government under the current circumstances. People are now afraid. They do not know what will happen. The future of the iraqi people is unknown. Warner further fracturing hope of unity massoud barzani, president of iraqs kurdish region, said again he plans a referendum on independence in the coming months. And insurgents of the newly renamed Islamic State, the former i. S. I. L. Claimed new battlefield gains, capturing the syrian town of boukamal near the iraqi border. In washington, iraqs ambassador to the United States, lukman faily, called for american air strikes. These Sunni Islamic state fighters have seized control of a swath of territory stretching from Northern Syria into western iraq. On sunday, the group declared the establishment of an islamic caliphate, with roots reaching back 1,400 years. It was a declaration both grandiose and brash; a spokesman said the groups leader, abu bakr al baghdadi, has taken on a new title calif ibrahim. translated therefore, he is the imam and caliph for the muslims everywhere. Warner today, the secretive baghdadi made his first Public Statement about the caliphate, in this audio recording. translated rush, oh muslims to your state. Yes, it is your state. Rush, because syria is not for the syrians, and iraq is not for the iraqis. Oh muslims everywhere, whoever is capable of performing emigration to the Islamic State, then let him do so. Warner some muslims in baghdad are dismissive translated this declaration will turn out to be merely a flash in the pan, god willing because the world is a civilized one and the countries are developed an such behavior an the announcement of the caliphate is a step backward. Warner the caliphate, arabic for succession, was created after the death of the Prophet Muhammad in 632 a. D. The caliph was meant to be both the political and spiritual leader of all muslims, but as the sunnishiite split quickly emerged, most caliphates that followed were dominated by sunnis. The powerful umayyad dynasty, based in damascus, for centuries ruled an empire extend eastward, north into the caucasus, across north africa and up the iberian peninsula. A later caliphate, the abbasid, ruled from baghdad, but was overrun in the 13th century by the mongols. In the 15th century, the Ottoman Turks became the preeminent islamic power. But the last ottoman caliph, by that time, a power in name only, was deposed in 1924 by the founders of the modern turkish state. Osama bin laden often referenced that event, when speaking of decades of muslim humiliation. As here, in his first statement after 9 11. translated our nation, for more than 80 years. Has been tasting this humiliation its sons are killed, its blood is shed, its sanctuaries are attacked, and no one hears. Warner bin laden and his followers denounced the middle east map created during world war one, when the french and british sykespicot agreement carved out zones of influence into the modernday syria, lebanon, jordan, iraq and palestine. The newly declared Islamic State is intent on smashing all that. This english language propaganda video shows its militants dissolving the border between syria and iraq, with commentary from a chileanborn fighter. We dont recognize it and we will never recognize it. There is no nationality, we are muslims. Al qaidas leadership disavowed the Islamic State earlier this year in a dispute between baghdadi and bin ladens successor, ayman alzawahiri. I. S. I. L. Had been the latest incarnation of al qaidas franchise that took root in iraq after the u. S. Invasion of 2003. Now, it is aiming to eclipse al qaida in reach, assets, manpower and lethality. Woodruff and margaret joins me now. This government in iraq already having enough problems. What is this announcement of a caliphate mean in addition to that . Wrg weve always known this group which called itself isis and now isil is a military left. Welltrained supposedly, u. S. Trained iraqi army just fell back and melted away. What we saw today in that parliament was that its also political threat, because while it has a cohesive mess niche unity, what you see in baghdad is that after really ten years of some kind of governing, they have yet to create an inclusive , cooperative, kind of National Identity in which all iraqis feel a part. And so when you talk about a unified iraq, essentially, its already happening de facto slow motion what this issel or isil is call for which is yo got kurdish breaking away in the north, kurdistan, a radical version of a sunni stand in the central portions and in the south, heavily shia. And it crosses into syria. Woodruff what about the term caliphate . You pounded out this is what, over 1500 years old. Why are these isil extreme ems using that term, that idea . Warner thats great question because it is an oldfashioned term. What it implies, it has great resonance for muslims worldwide. Muslims feel they were and they are a great civilization which we described in the piece for hundreds of years, all the way far north if you go to churches in budapest youll see tiles ottoman tiles. So all of that could sort of be crushed and carved up in the secret agreement 98 years ago by the french and the british. Theres and that explains why theyre having to operate in artificial borders to them, 80 arab world and the muslim world has fallen so behind in development. Thats a debatable point but that is sort of the mythology. And when you use the term caliphate if you think about the muslims, remember the term christendom used to mean something. The idea of the umba, the idea theres a large muslim, greater sense of community. It taps into that. And that civilization could be brought so low, folks share accumulation. So when you say we establish in the caliphate, thats greatness. Just has a lot of emotional historical and religious punch. Woodruff and as youve been reporting, margaret, its not just iraq that is threatened by this. Its the entire region. How what who are the other players who are affected . Warner judy, most of the focus has been this is alqaeda and it certainly is, because alqaeda, always talked about this, and it actually attacking westerners and muslims, theyve never actually taken any territory. And already, the group isil has done that so thats the first thing. But isis a greater threat to actually the rulers of muslim majority countries all over the region. Most of whom are ruling over states with these artificial borders. Egypts different. Egypt, yes, may be secular, may be egyptian. But jordan, lebanon, syria, saudi arabia. Some of the u. S. Alliessh you is this message mix of sectarian groups. Theres still whos going to rule, but its still following the old european playbook. And what albaghdadi was saying today is he was dismissing all that. All earth is ours. And so what hes saying essentially is the concepts of those states are legitimate and its a subversive thought. Its not that theyre going to take over lebanon or jordan tomorrow, but its to suggest if those states are illegitimate maybe their rulers are too. Woodruff Margaret Warner, theres no shortage of something for to you report on now. Thank you. Woodruff in hong kong today, a major anniversary was marked with pomp, while a sea of demonstrators took to the streets calling for more rights. We have a report from john sparks of independent television news. Reporter its something of a tradition, an annual ceremony to mark the handover of hong kong to the peoples republic of china. Soldiers salute, children sing, flags are waved. A celebration said Chinese State media, of the territorys return to the motherland. Heres another tradition, large scale prodemocracy democracies. And this afternoon, hong kong hosted its biggest single protest in more than a decade. More than a hundred thousand spilling into the streets demanding greater autonomy from beijing and a chance to choose who governs them. Its obvious china cannot stand the people of hong kong, but we are not going to be obedient anymore, we are going to resist. Reporter discontent was fuelled by a Chinese Government white paper which seemed to limit the citys autonomy. Enraged, activists are now threatening a campaign of civil disobedience. Of course, thats made beijings unhappy, it says the protests are illegal, the work of just a few people. The City Government upset too. The leader cy leung, who was selected by a beijingbacked committee, says the protests threaten hong kongs stability and prosperity. He has reason to be worried last weekend nearly 800,000 residents participated in an informal vote, a referendum on how to make the selection of the next city leader more democratic. The Chinese Government called the whole thing, well, illegal still, the organizers werent listening. We have very strong determination to have true democracy. Today, they opened up the gates at the hong kong barracks of the Peoples Liberation army, it was a friendly affair, but if the protests continue few would rule out a show of force from the Chinese Government. Woodruff Jeffrey Brown has more on this story. Brown and with me to look further at whats going on is evan osnos, a staff writer at the new yorker. He served as its china correspondent from 2008 to 2013 and is author of age of ambition chasing fortune, truth, and faith in the new china thanks. Brown first, i think it would be useful to remind people for context here. What is the legal status of hong kong visaaavis china now. Hong kong is a very unusual place it. Is part of china but also a place unto itself. Its called a special Administrative Region which means that it relies on the beijing