more in here. by the way i want to remind you to keep the cards and letters coming. i invite you sometime to come out and see us at our beautiful new international workshop headquarters nestled in the central part of oklahoma in the osage hills. you will love it up there. we have people that come from all around the world. and it's funny, they'll come out there and they don't want to leave. it's so peaceful and so fun to watch the wildlife. and folks we've got to go. i've got to quit talking. but keep painting tree limbs. and we'll see you next time, ok? well god bless you, stay inspired, and i promise to see you right here real soon on another yarnell school of fine art.

>> welcome. live from the studios in burlington, this is "the journal." i am brian thomas. >> a massive outpouring of anger in cyprus. pressuring the government to renegotiate the eurozone bailout deal. >> turkish politicians raising hopes of an impending cease-fire around the conflict that has claimed 40,000 lives.

>> the government backing away from banning the far right mpd. captioned by the national captioning institute --www.ncicap.org-- >> thank you for being with us. frantic meetings are under way in which the government ministers in cyprus are trying to reverse the levy is imposed on bank accounts. 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 the slightest problem. we would have to wait and see. >> given the angry reaction, there does appear to be rethinking going on behind the scenes. >> for more, we cross over live to cyprus to talk to nathan. it looks like the public backlash and international criticism are indeed forcing a rethink on this levy on bank deposits.

how much room do they have? >> quite a bit of room as long as they can meet the magic number a 5.6 billion euros which would have been collected from the taxes they would levy on bank accounts. what they're trying to do now is making deeper -- the poor sav ers, accounts with less than 100,000 euros, not bear the brunt. they are trying to knock it down to 3%. they are shaking their heads saying there is absolutely no assurance lot they would get through the door in parliament. >> give us a feel for our normal people are reacting without a bailout.

it was in danger of collapse. they feel the solution goes way too far. >> there is a split in cyprians society. they realized it could have been worse, but they're not happy with either. this house to be renegotiated. even though they realize what the dire consequences would be if it's not approved, they seem to agree they should not take a levy on a bank accounts. they do not have the public support and will not have the support of ministers on less this is changed to go to parliament. we understand the parliament meeting will go ahead 6:00 tomorrow night. >> the drama over the bailout continues.

political leaders have a meeting in berlin to talk about making the european union more competitive. angela merkel says they will do "what is necessary" to ensure the future of the euro. both had much to talk about. the european commission president says europe must continue with reforms while paying attention to the social consequences like the unrest in cyprus. >> before more, let's go to our parliamentary studios. this is a top level meeting of euro's top-level. can you fill us in? >> the meeting is occurring here at the invitation at the invitation of angela merkel. there are 15 heads of leading

european firms. it is the ceo of ericsson. what is on tehir minds is competitiveness. they are eager to look beyond to innocvation, energy, climate. there are not trying to talk about the cyprus issue alone. there was brief mentions saying that of course bureau stability -- euro stability is crucial. how do we get there to encourage growth and innovation? >> they have been distancing themselves from the planet. what else can you tell us? >> this tax on depositors and

small depositors it was somehow the instigation of germany. german politicians have been pushing back on that. we heard two government spokespersons say, not at all. they say, not at all. we have heard a lot of criticism through the day from politicians at all across the spectrum saying a tax on small depositors is very question of land by no means were the german politicians satisfied with that part of it. >> melinda, thank you. let's take a look at market reaction. uncertainty over what this would mean for other banks in the euro zone prompting investors to sell off on monday, particularly banking stocks. we have the summary of the day's trading from the frankfurt stock exchange.

>> traders have been deeply shocked. for the first time, the private sector will be involved in the rescue of a eurozone country. leading to turbulence in the market, shares have been under pressure. italian and spanish bonds, interest rates are rising at the same time the rise for german bonds increasing. leon are really afraid of major medical bank run in the southern country, but all shares of european banks have been tumbling. >> the dax did pull back a lot of ground finishing at 8010. bureaustoxx 50 2705. the dow treading water at 14,488. the euro of slightly trading at

$1.2948. >> some positive news for the european economy today. airbus has just signed the biggest civil aviation deal in history. it is with ryanair. >> it will provide a much-needed boost to the economy promising to secure 5000 jobs in france alone over the coming decade. >> the signatures are worth a lot of money. airbus will likely discount package of 234 plans, they have a list price of 18 billion euro. assembly will take part in france with parts from several european locations. it will be at capacity for four years. >> of bills meanwhile pride that we epitomize european success.

we are working together to create jobs. >> the deal means more than money and well paying jobs. ryanair is a new customer for airbus. they have previously purchased all their planes from their arrival, boeing. >> the western-backed opposition is meeting in istanbul to p ick the new prime minister. the first tasks is creating a cabinet. >> the conflict is expected to escalate further with britain and france say they plan on our main local groups. especially when it comes to political and military priorities, they do not agree.

>> the goal is clear. the syrian opposition wants to establish this between the different factions. >> this is the time for the government to be put on a steady round. for executive missions in leave free area. >> told candidates are in the running for prime minister. many of them are syrians living in exile. jamaal is one of three independent candidates. he is a former german lawmaker from the green party. >> the leader of the pkk, the

kurdish rebel group in turkey, says they will be making nean announcement. the turkish member of parliament said they visited with the pkk leader in prison. the conflict has been going on for nearly three decades now. for more, we are joined by dorian jones following the talks in istanbul. what is behind the pending cease-fire? why is it coming right now? >> this has been since last october. they have been meeting with the pkk leader and the secret talks with jolie came to light earlier this year are already bearing fruit. they released eight turkish captives and now there is expected to be this announced

and there was also expectation that they will be withdrawing some of their forces from turkey within the coming months. this is a key conditions for negotiations and an expected to meet some of the kurdish demands which includes autonomy and greater cultural rights. >> it is the pending ceasefire. can you tell us how this fits in with the fighting in neighboring senior -- syria? >> they have been under control by the syrian kurds. the syrian kurds are getting a stronger and the turkish border is already a defacto kurdish state. this is the time to settle our kurdish issues. >> dorian, thank you. we're going to short break.

arms sales are under rise and china outgrows in the top five exporters of military hardware. >> attempts to ban a german far right party, the mpd.

>> it appears the german government will not be supporting a legal bid to ban the extreme right mpd party because the case would not hold up in court. >> the free democrats announced they would not stand behind this but stand behind the upper house of parliament. they say the mpd promotes an

unconstitutional, racist agenda. >> the vice chancellor says they will not support a bid to ban the right extremist party. he says the free democrats are not convinced that it will hold up in the highest court. >> a ban is not the right way to go about it. >> dave prior government attempt was thrown out in the constitutional court. late last year, the 16 state premiers at signal their support for a fresh bid. this prompted lawmakers to filing a request with the accord. the opposition was frustrated.

>> she is being is that as a pawn by the free democrats. that is an insult to all the premiers and ministers will come out in support. >> the lower house remained undecided and a decision is expected in the coming months. >> china has become the fifth largest arms exporter. those are the findings of the swedish research institute. >> the chinese increase is due primarily to the large-scale arms sales to pakistan. >> the pakistan army buys more than earn half of the weapons sold by china. the ongoing arms race is a lucrative business for beijing. burma and bangladesh have also

become important customers. they defended their rules on overseas weapons sales. >> china has always taken a responsible and prudent attitude. apart to adhering to u.n. security council resolutions, china also follows strict regulations. >> over the past five years, china has more than doubled its sales of military hardware. united states continues to be the no. 1 arms exporter chalking up nearly one-third of all global sales. russia comes in third. followed by germany with 7% in france with 6%. now china has pushed britain to sixth place with 5% of the market. annual sales are now worth some

1.3 trillion euro. >> more them 500 representatives of various political groups have gathered in yemen for the first meeting of a national dialogue conference. >> the reconciliation talks will be drafting a new constitution and preparing for a full democratic election next year. >> we will be talking with an analyst about the hopes for progress in just a moment, but let's look at the challenges facing them. >> after months of protest, the demands were met. he left office just over one year ago. he rolled yemen for more than three decades. it came at a price. parliament granted him immunity for prosecution in agreement for stepping aside. people are demanding that the old elite to be brought to

justice and the transition is no in the hands of the national dialogue conference rewriting the constitution before full democratic elections next year. >> if the old elites have been thrown into prison or exile like in other countries, it would have been counterproductive for the transition process. and they are still so influential. >> it is a mark of unity when yemen celebrated last year, but the cracks are clearly visible. they are a deeply divided nation. separatists in the south are fighting for their own independent state. there are tentative efforts to find a political solution but no guarantee of success. the new president leaves the country perilously close to chaos.

terror attacks and kidnappings, often blamed on how qaeda have a destabilizing effect. it is the powerful tribes that govern large parts of the country. for many, it is a fight for survival. international aid and food deliveries to prevent the worse. >> we spoke earlier with our analyst from yemen and we asked him for his take on the situation in the country. >> that report paints a rather desperate picture. it overlooks the positive aspects of the political transition and the peaceful protests triggering major bridge a major political changes in yemen. they put an end to 33 years and they also managed to give birth to a transition plan which contains a road map for change and has international support.

it is certainly not a perfect plan, but it leads to the election of a new interim president. the new dialogue starts today and it faces some challenges, i agree, but first and foremost a provides an excellent challenge for a new beginning. >> tell us more about this national dialogue. what are they hoping to achieve? >> the national dialogue conference aims to achieve, among other things, unity in a country that is drifting apart and prepare the grounds for a new constitution. it is the political system of the state and it should get yemen ready for parliamentary and presidential elections in 2014. all of these and other really important because no election law, and a parliament, no

legitimate institutions which human needs urgently to build a new state. -- which yemen needs. >> the german president coming on african nations to do more to promote democracy in the role of law. he made the comments in addis abba bo. he met his ethiopian counterpart. his four-day to ethiopia is his first official visit since became the german head of state one year ago. >> when a german scientist is said to receive one of the most prestigious prizes in research, he must be truly outstanding. >> among the winners this year, one of the pioneers of biological psychology. he wants to understand how perception, thought, and action arise in the brain.

>> and how it affects our daily lives. >> everyday tasks that demand physical and mental dexterity. but maneuvering a vehicle from eight to be, as second nature to most. scientists still do not fully understand how we learned, store, and recalled these kinds of routines. they want to learn what happens in the brain. his prize-winning research looks at how the brain controls our responses and our thought processes. >> i am my own brain. i want to understand how my work and how others work. it is the most fascinating thing we can investigate and the most complicated issue on the planet. it's a lot of fun. >> his work links psychological and biological findings about human beings and pigeons. strange but true. pigeons have very similar brands

to our own. the pit and learns to pack colors in a specific order. -- the pigeon learns to peck colors. the right combination of unlocks a reward. >> the process actions in a very similar way to rest. they learn routines and the have a plan before they act. the pigeon has the holding work out in its mind before it carries it out. >> with the left by covered, the pigeon processes the information in the right half of its brain, and vice versa. their brains work in the same is a magical way as ours. and the researchers have found that the left half works better, just like it does with humans.

>> pigeons are ideal for research because they are so predictable. you give them a task, they learned, and carry it out. even if it takes them months to do so. they're incredibly reliable creatures. >> the scientists are also looking at the human brain. they want to understand more about the way the two halves work together to see, learn, and remember. they want to develop new therapy for brain disorders. it is this research that earned him the prestigious award. a look at why most people turn their heads to the right to kiss. he found it is a genetically determined impulse that develops in the well. with the new research funds, he wants to investigate if pigeons follow the same courtship rituals. >> that is it from "the journal" for now. >> more news for you at the top of the hour. join