that was confirmed by cyprus. things are already happening. we know the central bank has named an administrator for the lockheed bank. we have just got notice that lockheed and think of cyprus will remain closed for two days and remain open on thursday. that gives them two days to try to get ready for whatever happens next. we note with lockheed that will be the end of their business. >> ok. at the end of their business. her banking sector is effectively dismantled. facing years of austerity. what has been the public reaction? >> the public are just getting used to the idea, now, i think. as the situation is being explained to them, there is extreme anger about the banks and the state of the banks and the fact that lots of people did not know how bad it was. they passed the stress test, believe it or not in 2011. the european central bank gave them the green light. so, people are stunned by the fact that there is such an unhealthy state. >> a lot of questions to be answered. thank you very much. >> cyprus has been saved from bankruptcy, but ul

on cyprus coming through with a bailout plan or cyprus having to leave the eurozone? >> nobody in brussels can really imagine that cyprus would want to take the risk of leaving the eurozone, so the message we are getting is people are still convinced that cyprus will come up with a plan. remember, european partners stand ready to help, but cyprus has to contribute its share, and the eu does was up to tackle its core problem so the situation does not get repeated. that means also reducing the very massive banking sector that the country has, but the feeling here in brussels is that so far, cyprus has not really understood that the system that they have been running with so well over the last few years is not working anymore. they hope that it is dawning on them now. >> what if it does not dawn on them? are there contingency plans for a cyprus collapse? >> well, of course, they are not communicated publicly if they exist, but what you do get is a feeling that patience is running very thin. we have been hearing from officials in brussels, who are simply astonished, if no

merkel, the ball is now in cyprus' court. she says they must submit a fair counterproposal first in what she expects to be tough counter negotiations. >> onto wednesday's market action now. european stocks snapped a three- day losing streak and locked in some pretty healthy gains as the region's policy makers weighed the future of cyprus in the euro area. we have a summary of the day's trading at the frankfurt stock exchange. >> the failure of the bank levy in cyprus had no impact at the markets. traders remained calm. no rescue package went through at the first attempt, they said. they are still optimistic that politicians will find a solution, but not everyone is so trustful. the world's largest bond dealer, a u.s. company pimco, reduced its euro investment, but its warnings have been ignored. the dax was on the upside thanks to gains in the banking sector. >> we stay in frankfurt for a closer look at wednesday's market numbers. the dax finished the session up by nearly 0.7%. good to see that. the euro stoxx finishing up. t

here -- cyprus hurt the mood. they are looking at remarks by the head of the europe group. these remarks stem from the previous day's trading, but there is still an issue here. people are still getting very excited over it, still criticizing him harshly. because he said that the kind of bailout that was achieved for cyprus might be a model for the rest of the eurozone, and that leaves the impression that money is nowhere to be safe in the eurozone. >> let's get a closer look at those market numbers for you now. we stay in europe where the tax not doing a lot on the day, eking out a slight gain. euro stoxx 50 in negative territory. the dow got a little more of a bump, mostly on positive home price data that could indicate an improving u.s. economy. the euro/dollar is currently on the rise. >> as the economic crisis in cyprus deepens, china and russia have announced the creation of an alternative banking system that will provide a counterbalance to the imf and world bank. the leaders of those countries along with th

. >> frustration mounts in cyprus. authorities rushed to find a way to open banks but prevent a run on them. >> the world's five biggest emerging economy seek to expand their political influence and economic clout. >> berlin is cry foul after a property development removes part of the famous east side gallery. officials in cyprus are scrambling to put measures in place to prevent a run on deposits when the country's banks reopen on thursday. >> is central bank governor said authorities were making superhuman efforts to get shuddered banks ready as promised and give relief to struggling citizens and businesses. >> cypriots are angry and anxious about their accounts, which they've not had access to for about two weeks. >> many have been warned that they stand to lose a large chunk of their savings. >> the streets of cyprus appear calm but it to be a different picture when banks reopen on thursday. lack of information is adding to the frustration. >> people have no money. they are scared. there is no certainty. they do no

do take cyprus, the latest case. we know that the supreme finance minister said basically the banking sector has no relation to the real economy in terms of size, and that is the crux of the problem. he came back empty-handed. he got the same answer from the debt-financed -- the dutch finance minister and the same message from the international monetary fund, whose director is christina lagarde, a french journalist. basically, the international consensus is that cypriot politicians have been responsible over a number of years. >> thanks for those insights from berlin. >> the events in cyprus this week have also affected markets across europe. we have the response in frankfurt as the trading week came to an end before the easter break, also talking about an oecd report. >> the oecd forecast was not a big help for the mood or for the share prices. nice to hear traders say that the united states will continue to grow and that also germany is looking better than its european neighbors. on the other hand, those neighbors

russians are the top investors in cyprus. some are thinking of leaving the country. >> it's very bad. cyprus, it's very bad. >> i was very surprised, of course, by the situation, because we don't -- everybody was happy. we don't understand. it's leak come from the sky. are your cypriots have benefitted from the business russians bring. they are worried about the consequences. >> the russian community was very important. is that we lost, we killed our long established international business. we will lose much more than the other cities, because it was the main steam engine of the economy of the international business community here. >> reporter: cyprus has avoided financial collapse. but trust in the financial system has seriously eroded. leaders here have much more to do to rebuild their economy and calm fears about a future. nhk world. >>> former south african president nelson mandela is back in the hospital to get treatment for a recurring lung infection. he is respected at home and abroad for his leadership in the fight ag

cyprus may be a test case. "politicians in cyprus are reporting to scale back demands. france and germany have emphasized there were not behind the move. they do have a large russian community and vladimir putin has called on a fair, and professional, and dangerous. >> they will vote on the levee on tuesday. >> they do not understand why they should be the first to bail them out from their own savings. they have been trying to gather support. the there are forced to pay a one off tax of 6.75%. and is not just the terms of the bailout making people here angry. some people feel they are being lied to. >> none of the promises they're making are real. five days ago, they were saying there was no chance for a haircut. now there is this situation than they are promising somehow we will get it back. there is no chance. >> germany has been blamed for insisting on the levee. they say they are open to changes. it includes a levy on deposits under 100,000 euro. the numbers we came up with are the base level. if there is any other way to achieve it, up to 100,000, we would not have

cyprus may be small, but it's situation is complicated, especially when it comes to its banks. they have taken huge losses on greek debt, yet they have also attracted large amounts of russian money. in 2011, for example, it was moscow that granted cyprus and loan when it was no longer able to tap international financial markets, but cypress is now also facing allegations it launder dirty russian money -- cyprus is now facing allegations it launders 30 russian money. these concerns have held up an agreement for months, and in this case, time really is money. >> the longer you wait, the more difficult the problem becomes. because the investors who could have perhaps taken some of the losses have naturally been getting their money out of the country as quickly as possible. >> cyprus accounts for just 0.2% of the eurozone economy, but what happens in cypress will have repercussions far beyond its shores, affecting overall confidence in the euro. that is why european leaders are feeling the heat. >> let's go back to eu headquarters in brussels, back to our correspondent. we heard in

ecb says cyprus must come up with ed bop -- viable bailout plan by monday. if not, there will cut off funding, also listening the country into bankruptcy. >> there's also talk of a solidarity investment fund that could include bonds backed by the government and even by churches. >> angry separates -- cyprian -- separates -- cypriots gathered outside the parliament building here the latest reports say cypriot officials are mulling a special fund as contributions coming reportedly from the island's wealthy orthodox church, from pension funds, and the central bank's gold reserves. the governor of the island's central bank was confident a solution would be found. >> i expect there will be a program of support for cyprus until monday. >> as the politicians tried to come up with a last-to address you, the mood on the streets debt is to spur a panic. earlier in the day, police clashed with angry bank employees after rumors spread that the island's second-biggest lender was to be shut down. the central bank denied those reports. with atm's paying out 680 euros per p

the problems in cyprus did not spread yet to other countries. analyst day in frankfurt for a closer look at tuesday's numbers. the dax finished down by nearly 0.8%. -- >> we stay in frankfurt. europe stoxx 50 down by 0.25%. on wall street this hour, the dow down by nearly 0.3%. the euro trading at a value of $1.2860. >> in other news today, syria's main opposition has elected a head for an interim government they hope will be formed within a month. >> the u.s.-educated i.t. executive was chosen by a majority of national coalition members in istanbul. in his first speech, he ruled out dialogue with the shock assad's regime. government troops and rebel fighters are blaming each other for a chemical attack near the northern city of aleppo -- dialogue with bashar alabama assad's regime. >> they accuse rebel fighters of launching a missile containing poisonous gases. the information minister said this type of weapon was prohibited under international law. >> so far, we have 16 martyrs and 86 wounded. most of them are in critical condition. the chemic

cyprus is expected to start a fresh round of negotiations with creditors. but the two sides are unlikely to reach an agreement any time soon. >>> insurgents have sent a message on the 10th anniversary of the invags of iraq. they killed at least 50 people and wounded more than 100. a series of bombs exploded in baghdad and several other cities. militants attack with car bombs. the iraq war began before dawn on march 20th, 2003, with u.s. air strikes on the capital. members. administration of former president bush argued that iraq possessed weapons of mass destruction, but u.s. forces failed to find evidence of sum weapons. 120,000 civilians are said to have died from the fighting or from terrorism. u.s. troops pulled out of the country in 2011. >>> the economy's recovering. iraq overtook iran last year to become the second largest oil produce iramong the members of petroleum exporting countries. only saudi arabia produces more. the volume of foreign investment is 20 times grater than it was four years ago. residents of baghdad can now spend their money at a

. >> they expect a deal with cyprus to be hammered out by the end of the month. last month, they asked me to help with a bailout to keep the government solvent. germany and others have concerns that cyprian banks are involved in tax evasion. people in switzerland voting to impose curbs on executive pay. 67% of voters backed a proposal giving them the right to veto executive pay as well as banning big rewards for managers. a clear majority was unusual from a corporate lobby group. they said it would damage their competitiveness and scare away international talent. now for the response from frankfurt, conrad is standing by. we're talking about some global giants that could be effected. what are traders saying? >> there is no direct impact on prices today, but they are heavily discussing this topic and the people i talk to say that we should not overestimate the potentially negative impact on this. we should put a stress on the boost that corporate governance of the companies might have if the owners of a company, the shareholders, have more to say when it comes to

the creditors of the state of cyprus can be reassured now that their investments are safe and, also, people here reckon that eventually the banks will be saved and recapitalized by the euro rescue funds rather than by the creditors or the owners of these banks, which is something which is reassuring investors today as well. >> what has really caught the eyes of investors is the dax today, shooting up by almost 2% this hour. >> that's true. the basic driver is the old bet on monetary policy. the bet is being fueled, for example, by a relatively weak data we have been getting from the eurozone services sector. it is also fueled by statements from the vice chairman of the federal reserve, who said that the generous monetary policy is needed for further recovery of the u.s. economy. this is what is fueling and driving the dax of ford right now. the your stocks 50 -- euro stoxx 50 also trading up right now. >> russia's far east is one of the most remote places on earth and it also has some of the world's most active volcanoes. >> no one lives near the wall cannas, so the fast moving layer

this means that after euro finance ministers have decided on helping cyprus and its banks, this does not mean that the private creditors and owners of these banks are at it again with their money. they might have to take part in that recapitalization. that is not something that is pleasing people here. in terms of monetary policy, druggy did not have many new things to say. >> big corporations in germany out with results. any trends emerging? >> yes, there is one trend. companies are doing a lot to please investors -- raising dividends, buying back shares, cost cutting. they are not saying exactly where their businesses are really heading, so the outlooks for their core businesses are not very convincing at the moment. still, investors are buying some of these shares. the dax pretty much unchanged. euro stoxx 50 index trading slightly higher. the euro is heading towards $1.31 again. >> an unfortunate story now -- there's been a dramatic twist into the investigation into an italian bank over alleged corruption and fraud. >> an official was discovered dead late on wednesday. >> the 14t

they will sit down and talk about the situation in cyprus but no decision is being made today and a possible decision tomorrow is not clear yet. the finance ministers would have to decide it. and there are very big concerns when it comes to huh gary. huh gary earlier in the week had amendments to the constitution. it is the political situation in member states that will have to be discussed but it is not on the agenda. >> discussed. when you are in a crisis, it seems in europe the best thing to do is to not take action or make a decision. all right. nina, thank you very much. >> all right. back to the middle east now. at least 22 people have been killed in a series of bombings in the iraqi capitol baghdad. dozens of others were wounded. two devices exploded at the justice ministry. officials say about 1,000 people were in the ministry at the time. the attacks came days ahead of the 10th anniversary of the u.s.-led invasion of the country. >> in israel the political deadlock has been broken and a new coalition government is expected to number place by the end of the day. the three main partne

rescue can be another country's downfall -- that seems to be just one of the lessons of the crisis in cyprus. >> exactly right. cypriot banks suffered massive losses when greek debts were restructured last year. the move was meant to help greece, but it brought cypriot banks to their knees. >> many economies -- many economists say cypress now faces years of pain just like its neighbor with a crashing economy and soaring unemployment. >> in greece, this seems to be no end in sight with one in a for your people out of a job. some are just giving up and moving away. >> i will have a vegetable soup and some pork roast and a glass of white wine, please. >> he has been learning german for a month now. he does not have a passion for the language, but he will need it very soon. >> i am learning the language to improve my career opportunities in germany. i also want to be able to communicate well with the germans and take part in cultural and social activities. >> the television technician has been out of work for almost a year. most recently, he worked as a god. before that, he ran an internet compa

cyprus needs to raise 5.8 billion euros in collateral. government leaders had accepted a plan that involved taking money from people's bank accounts. but parliament rejected the idea. they agreed to set up a solidarity fund. it would allow the pooling of state assets for an emergency bond issue. they've also agreed to restr restructure major banks. members of the staff union have protested in front of the larl lament building. they say breaking up the bank would destroy 2,000 jobs. lawmaker still have more to do. once they put a plan in place, the european union must approve it. the european center bank is providing emergency funds to cyprus until monday. after that, the money could stop flowing and the island could go bankrupt. cyprus's finance minister tried to get help from russia, but he's on his way home empty handed. he spent two days talking with his russian counterpart. he's quoted as saying he hadn't been able to get the support he wanted. he still has a chance to get the russians to ease the conditions on existing loans. >>> chi