cyprus, verge of collapse.ance ministers from 17 eurozone nations are holing a conference call tonight. talking about a bailout. what will the terms be. is this a one off or are the possible reverberations more global and severe than this? bob? >> i notice there are no lines in front of the atm machines or no bank runs. that wasn't my worry. i have two worries. this is going to strengthen the anti-us aausterity crowd. in italy, it will be tougher to form a political organization in europe or government in europe because the anti. austerity people will have their day. secondly, there's been talk about a banking union in europe. one of the aspects of a banking union is common deposit insurance team. how are going to do that? even if they say it's. >> do you agree with bob that this strengthens the hand of the anti-us a terrority people? they could say look what's going to happen here if you go with them? >> absolutely, deficitly, certainly. bob is right about that and totally strengthening them. i also want to th

the situation between russia and cyprus is partly rich russians using cyprus. that's one thing to say. the second thing is the way russian companies are structured is the legacy of the fact that 10 or 15 years ago russians wanted to do business with the world but their own structures were so underdeveloped because they were so young because they had to use russia and they had to use cyprus. it isn't sustainable in the medium term. more and more of the market is coming back offshore. a major initiative to make moscow an international financial center. apart from that, you have to look at the diplomacy of this. it looks as if the deposit grab is being deliberately designed in order to tax russian companies and relatively wealthy russians. about a third of the deposits in cyprus we know are foreign. a large chunk of them are russian. russia didn't get the eurozone into this mess. russia has been there to help. >> cyprus knows having turned to russia for help, it's policy makers who are opposed to higher tax on higher earnings in those banks and it is to some exten

is giving cyprus has to be matched by the cyprus government coming up with about close to seven billion themselves the problem is they don't have the money and the only way they can get it out is out of their depositors now on the other side of the equation the germans will only agree to this bailout if the russians depositors which is a lot is about thirty billion dollars worth of russian money in those banks they don't get away scot free so there's a little bit of behind the scenes politics happening here in terms of who is getting hit i'm not sure that's michael but it's quite i mean a lot of russians are not have me about your head michel. they're not happy but if i don't it's because of deposits mean that the central bank says up to seventy billion in deposits in cypriot banks seven billion is held by russian nationals that may be not underestimate but certainly nothing more than double that out of seventy billion now it's quite true that russian entities have loaned money to the . cypriot banks but it's a different matter overwhelmingly the people who are getting burned by this ta

but major investors in cyprus's biggest bank, the bank of cyprus, could lose up to 20% of their deposits. not surprisingly, it's an unpopular measure. >> nearly everyone's going to lose some money. of course, the amount will be greater for some than for others. and that's that. >> there is anger at the nation's creditors. >> the germans are only interested in themselves. they don't care about anyone else. >> cyprus's banks have been closed for a week. the european central bank has threatened to cut off the island's emergency funding should no deal be reached by monday. if that happens, cyprus's economy faces immediate collapse. in that cypriot's words, the negotiations are in a very delicate phase. the monday deadline is looming. whatever is agreed in brussels still needs to be adopted by the cypriot parliament. that is by no means certain. >> i'm following the story for us with our correspondent. bring us up-to-date. >> the euro groups finance ministers are in brussels here. they're waiting for the meeting to start. at meeting was originally scheduled for 6:00 local time. that would've

>> pretty grim prospects in cyprus. and in a speech to the cypriot people tonight, the president called the deal painful but he said it was the best he could get. for more on the reaction there, i spoke to the bb's tim wilcox. we have now some clarity on the deal that cyprus has struck with europe. does it look like the island's actually going to be worse off because of this? >> it's instinct because i've just been talking to one of the m.p.'s who voted against the proposals last week, which was going to have a 10% levy or hair cut on deposits over 100,000 euros and 6.7% for those under, and she admitted today for the first time, because she hasn't on previous occasions, that probably people would be worse off and that is because of the fundamental damage that this -- the bailout deal is going to do to the cypriot economy. leading economists here, nobel prize winning economists here are talking about this economy being in recession. perhaps really quite deep recession for as long as five years. and that is because a sma

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

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

why is the russian government so mad about the cyprus plan to tax accounts in cyprus?oney lauderers. many elizabeth warren threw out the rate of $22 an hour for minimum wage. i think she is nuts. first up, still licking their wounds from the november election, the republican national committee is out with a new report that outlines steps needed to reboot the party for 2016. among the proposed reforms, a streamlined process for earlier convention. improved outreach to women and young and minority voters. will the reforms be enough to give the gop brand a much-needed boost? joining us is mark stevens, ceo of msco and author of "your marketing sucks." with me the rest of the hour and i thought i introduced before, but i didn't, mark hanna and republican strategist chip saltsman. mark, what did this republican document do for the gop? >> it does nothing. it is a committee report adding to a pollution of noise that is going on in the republican party right now. the fact is as a marketing person, you cannot have a brand, talking about branding, you can't have a brand without

does so sylvia are nicosia cyprus the president of cyprus is defending the controversial rescue package admitting it is painful but saying it's in the best interest of cypriots meanwhile the troika hailed the plan saying it places the country on a sustainable path to recovery but the deposit levy has raised fears the same thing could be done in other struggling banks across the continent here's what the head of the euro group is saying if there is a risk in a bank our first question should be ok what's the bank going to do about that this prompted fears across the euro zone as cyprus deal as the cyprus deal has now created a new template for resulting future banking problems as professor of international finance charizard raman explained to my colleague bill dodd the bailout hasn't only scared small savers but may trigger big investors to start pulling their money out of other banks. it's good we tied him on to the greek social economic debacle that we are seeing. going to go into a deep recession and this is going to be another decade lost for this country clearly the europeans and the

not as much and you know like the math you just said that cyprus is a special case but cyprus is is now in real trouble when the banks open on thursday . so i do think that we will have problems as we go down the line this is just the beginning. cyprus yes absolutely there's no question that when the banks open you're going to see an exodus of money even because people are scared no one's taking a chance what's going to happen the week after because we saw how the greek crisis unfolded from one day to the next you didn't know what was going on and so anyone who can will probably take all their money out especially foreign depositors and this is of course going to hurt the cyprus economy and the small depositor in multitude of ways so michael is it fear now more than anything else where you're sure i mean we've focused a little bit on small savers but they're not the only savers just on them you know if you were a bar owner or a taxi driver or something are you going to take a check from someone you going to take a. credit card payment i doubt it now but actually know what going to get i

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

the deal centers on the bank of cyprus and the popular bank of cyprus.hose are the top two biggest banks in cyprus. the focus has been particularly on a so-called of uninsured depositors, those with deposits above the key benchmark level of 100,000 heroes or $130,000. that would in effect mean that people with balances above that level will have their money frozen completely, until the assets and liabilities of the two banks have been worked out. the liabilities paid off, and whatever remains, that will come directly out of the bank accounts of those uninsured depositors. it is entirely feasible they will take an immense hit, anything from a 30%-40%, even more. in the meantime, they will not have any money at all. that is an extraordinary account -- a consequence, if consider the bank of cyprus holds one- third of all bank deposits in this country, some $35 billion held in the bank of cyprus alone. it employs 11,000 people, many who lose their jobs over a period of time. holdspular bank also billions in deposits. some in the bank accounts of foreign inve

, use the cyprus banks, keep money in cyprus.ally a part of russia, not really a part of europe. as such there's one other very important feature which is there's a lot of crime that goes on in russia. a lot of money laundering that goes on in russia. it is a place for russian criminals. that's why there is all this distaste about a proper bailout in cyprus where there wasn't in other countries, because nobody wants to bail out a bunch of criminals. >> unless you're vladimir putin. what does he do? vladimir putin is not renowned as being the king who'sphilanth outside of russia. does he he spring the cypriots along? if you're looking for incentives, the russians can pick up a lot of assets much cheaper if cyprus is smashed at the beginning of next week sglp let's look at this very objectively. cyprus has 1 million people. it is a small little island. what -- let's say russia ponied up all the money, the $17 billion. what's russia get for the $17 billion? it's not clear there's anything all that worth while to get. russia's like a

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

that cyprus is a unique situation.nd i'ming looking at what you're looking at. >> haven as an offshore. >> a lot of money. >> about getting back at the russians. >> yeah. >> there it is right there. contagion risks are overrated. >> it's just not the origin. it's the size, the size of the banking system there is huge. >> three times gdp. >> no, no, no, eight times gdp. the average in europe is three times the gdp. here in the u.s. it's only one times gdp. they did that on purpose. >> some monday my is from russian. >> foreign money. >> we don't though that it's criminal money. it's packed opt plimized at a minimum is the way they describe it. they sought that money for sure. >> they are known for having lax money laundering laws. >> no comparison in the you r eurozone. >> excellent. >> switzerland was in this situation. >> going back to the initial point, greece was a very small country as well. 2% of the gdp of the eurozone and created a big problem which started that and spent the rest of the region. >> the size of t

as cyprus's cash dispenses run dry. he says the conditions of his country bailout were unavoidable because cyprus expecting bankruptcy. , the great up alleged cover-up. the guilty verdict that shocked the u.s.. 4 million liters of waste and counting. the first sunday on the job. the berlin wall. find out what has protesters angry in january. the decision was difficult, but necessary. the last few minutes, cyprus's president has addressed his country to say why he agreed to controversy all conditions attached to the eu bailout trad. facing his country was bankruptcy and he yet to go to for a long term -- he had to go for a long-term solution. >> whatever the contribution, it will be made one time so the survival of the people will be guaranteed and future generations will be exempt from our mistakes. first, this report. >> attending to drain their savings before the government takes the cut. these anxious investors were a day late. i saw people with drawing money on saturday and said, let's do it later. and then there wa

cyprus could be the catalyst.undamentals i don't think had anything to do with whether we go down or not. the catalyst, you can see there's a lot of people looking every time we get a little bit of panic, we sell hard. and i think that's the direction, that's what the market is looking for is the reason to sell hard and take some profit here. there's been a lot of money made. the big money and the managers are looking to take some profit here. >> people generally are taking positions off for the weekend or do you have a sense kind of of how positioning generally is shaping up? >> i think that you're going to see probably some more profit taking into the weekend here. i think people are going to be taking up the position. i think you'll see a lot more of the money going to some of the safer asset classes. we are more in a risk off classes right now. >> it's not necessarily the kind of acute risk off greek-like european drama situation that we saw 18 months ago. this seems to be a little bit of a different kind. is

well this is a response to the blackmailing position of the cyprus finance minister and the cyprus prime minister has well the cyprus population is against any foul part in the recapitalization of the banks let the european taxpayers pay for cyprus plans to have offered. conditions for their accounts we sure are young and you know his dreams we would have offered. tax rates and have let in people from abroad which are nonresidents and which are not at all the identical with the. population let's take this into account as well in germany we are going to help to have elections in the autumn of this year and the german population after the paid out of the irish cried out of the portuguese great out of the spanish paid out now is confronted with another case of bailing out a country which is not at all these hundreds of the eurozone and which in the past has benefited enormously from the euro not in order to build an economy but in order to build an offshore an offshore so is not part of the european project it's not part of the european project of the euro and it's not part of a policy whic

lot of russians do their banking in cyprus want to go to cyprus there are plenty of other places they could go to it's not the only offshore banking area is it well if you read the press i mean the press always says it's all tied to the money laundering and there is that there's definitely that element but the reality is that russians russia laws are recent they've been around for a little more than twenty years and it's very difficult to create a company and run a company under russian laws because it's very easy for somebody to illegally take over a country would they call raiding because somebody comes in with a gun or whatever into an office and they make people sign documents they forged documents take company stamps etc and if you have an offshore company you. prevent against doing that and of all the offshore drilling stiction with british type laws only cyprus allows russians to go to their country without a visa so it's easy and it's and it's all convenient yeah absolutely and also when you want to. change the shareholding of a company or if you want to attract investment you

consequence for cyprus because the amount of money that the russian government has provided to cyprus has been in the order of what two and a half billion dollars. damage of this measure to the cyprus banking system is not going to be two and a half minutes going to be twenty five and fifty billion dollars because the russian government is going to have to find a way to guarantee the banking system of cyprus and if russia is going to do. that too in order to sustain side press then cyprus has got to provide a political for russia and so that's why i think at the moment the cyprus government says that they gonna stay in russia it's not just a question of two and a half billion dollars it's going to be much much more was hacked it will now have on the relationship between russia and europe this is an ideal opportunity for russia to take the moral high ground all it needs to do is to say this is a very badly thought out decision. this has an effect on the russian economy that was never considered them was never consulted with the russian government. the regular appearances have already m

societe generale has subsidiary in cyprus. biggest banks in cyprus are local banks.id: boy, do you see this spreading, erin? we've got to go. do you see i had spreading beyond spain and italy and possibly even over here? >> i think that is not likely. it might even take a while to spread to spain and italy. that may only happen if we start it see worsening trends in credit walt. david: erin davis from "morningstar". good to have you on. thanks so much for explaining it. appreciate it. >> thank you. david: thank you very much. sandy, over to you. >> david, people might have a little less to spend this spring but that doesn't mean they won't be buying new clothes. you never sacrifice fashion. up next we've got a top analyst ready to share her fashion stock picks for your portfolio. >>> samsung's newest phone putting a lot of pressure on apple. find out how the tech giant is responding to the competition. log on to facebook.co facebook.com/afterthebell, click on the "like" button. tell us what you think is the best smartphone on the market right now. ♪ . today is gonna

he has more geo political power versus cyprus ok it's a good chance that cyprus is not a strong standing yet they're going to play with response to that let's assume that . cyprus does somehow outmuscle turkey these are gas mines that are not developed there are no standing pipelines to turkey or to create to get the rest of us there has to be built up has to be built by a country that's being built out that is actually stealing from its own the positives to fund. and a bailout from the c.p.p. so basically you know what you're doing is you're pledging something you don't own that you can't afford to build out to justify taking money from people who trusted the banking system what they've done is they've destroyed outright destroyed trust integrated system it's confidence that allows a better system run because no bank standing in the world has the liquid assets to pay for the positive thought it wants which is the definition of a bank so this is very interesting once the conflict destroyed in cyprus where does the go next i would have much confidence in much of the core of you up outside

german chancellor plans will not bring a sustainable solution for cyprus cyprus as a debt problem doesn't that overhead which kind of pay and you cannot solve this situation by adding debt like the term billion now the european union is willing to pay as our no one has a guarantee whatever about this will be no sustainable solution put in bloom post austerity to the people of cyprus it may well impose bible will lead to lower waiters lower prices so this is no solution and therefore one burg. no solutions but many ordinary cypriots feel germany's pressure pressuring the country to adopt its hoss and i don't fade tags a-d. do you think they have a point then why is germany being soft well i think there are upcoming elections and that's the point the bailout will not go on like it ever did for. european union the troika soon and bails out the banks but in this point of a demand what is in principle ok that creditors of banks have to participate in the debt cuts. and support that's right but not like they do it here one reason for the separate crisis was a weak regulations from the e.u. whic

cyprus aspersions on the e.u. bailout deal though would have cut into ordinary depositors' savings forcing the government to look to moscow for a lifeline against bankruptcy. brugge obama arrives in israel for the first time as u.s. president but to may struggle to close the growing gap between the country's middle east policies. u.s. military officials admit the one time a hunger strike has almost doubled of the detainees are being force fed while human rights groups demand more openness from the detention camp. and iraqi terrorist group with links to al qaida claims responsibility for bombings that killed dozens in baghdad for the unsettling the country ten years on from the u.s. led invasion. international news analysis and reports of this is r.t. scenes of relief and celebration greeted this line prison palomas rejection of attacks on bank deposits the one off levy linked to when the e.u. bailout deal would have seen millions of account holders lose up to attend all the savings and have been condemned by offic

, we have the report by cyprus matters. >> reporter: cyprus is a smaller island with a smaller economy. but now they're watching what happens in the tiny mediterranean nation. >> it's a tiny nation. the reason we care about it is of course cyprus like it was in greece. it's what it means for the bigger nations if they follow and go down the same bath. >> banking is a huge part of cyprus' economy. and it's a mess. if it fails the country will probably fail, too and the european union will not let the country fail. here's the thing, the biggest payers are the russians. >> they don't want to bail out the depositors because they are mainly russians. that's what the issue is. >> so finance makers said depositors are going be compensated. but with the stock market down some 60 percent those chairs are essentially wortless. >> the blanks are closed and won't open until votes on the bailout measure. people are waiting in lines at atms to withdraw money from their accounts and countries are worried around the world that citizens would take money out of their banks that's why even the most seaso

yes, they have been discussing cyprus. they've secured ads 10 billion euro bailout package after a long night of tacks in the belgium capital with international lenders. laiki bank will be wound down. uninsured deposits greater than 100,000 euros in both banks will be frozen and subject to a levy. bondholders are set to be wiped out. those t bank of cyprus will have to make a contribution to the bailout. now, there has been a relief bounce this morning. equity markets by and large down around 0.5% for the ftse and the zex ra dax. the ibex is up around 0.9%. the ftse mib up 0.5%. unicredit up 1.8%. santander up 1.8%, as well. you have to remember, actually, if we were surprised by the lack of negative impact on the investors last week, there shouldn't be a huge bounce on the resolution, either. 1.2997 as far as euro/dollar. so a pretty small move on the euro after initially getting a bounce a little earlier this morning. we'll show you where we stand with the futures board at the moment. maybe we won't have u.s. futures. ri

cyprus in one city. people are angry at having to pay out of their savings for a bailout of the bank. 13 south african peacekeepers have died during fighting with rebels in central african republic. hundreds of south african soldiers are there to help train local troops. looting has been reported since the president was overthrown. workers in hong kong are protesting against a court decision which bans them from settling permanently. two filipino maids lost a case in the final court of appeals. they say the hongkong immigration laws are discriminatory. prisoners held at the facility at the airbase are regarded as among the most dangerous men in afghanistan. after a lot of pressure from the afghan government, the u.s. military is about to hand over control. what will happen to the prisoners? .> and over as the largest prison run by americans into afghan hands. u.s. transferred most of the facility to afghan control. not all. that may present karzai angry. he repeated the demand of the prisons be handed ov

to cyprus live. all these pictures let me just ask these pictures from cyprus of these pictures from these are live pictures from cyprus tonight protesters are urging their government not to bend the repression they're busy news night brussels wants the cypriot parliament to push through a highly unpopular tax that could wipe out ten percent of people's savings the a proposal ready to be rejected once but there's growing concern that cyprus will be forced to accept it the country's banks have been paralyzed for almost a week now and it's tests are still reports people are bracing themselves for the worst. all of this panic this negativity started of course on the announcement over the weekend from brussels that in order to get a ten billion euro bailout package cyprus will have to cough up about five point eight billion in the suggestion was to impose a tax on back holders deposits now ninety one percent of cypriots according to a poll have been against. back tax and there we've seen protests on the

i have greece over cyprus in the second round and mallorca. >> how about gonzaga over cyprus. i don't want to make too much light of it, it's just that when you come in after a weekend where you just believe that the futures will be down 28 because a lot of people tell you they'll be down 28 you don't want to be lulled into thinking this isn't as bad as i thought because then that will bring out sellers who take a look at stocks leak the insurers which were up so much. kimberly downgraded today. i think kimberly is a sell. i've been saying to consumer stocks. they're 19 times earnings and they grow very small amounts. >> is toilet paper worth that sort of valuation? >> no, i don't think so. maybe two-ply. >> if you're out there. >> possibly! >> if you're out in america and you went with your husband and wife to view a home and you're ready to make a bid to buy a home, finally after sitting on your hands for a few years, did you weake up today and say hone, we're not going put a bid on the house because the cypress bank tax has been levied. >> they don't know it's russian mafia

cyprus. this is simply stunned at the speed and man i wish the banking crisis in his country seems to be spiraling out of control he shows us his wallet no cash only lottery tickets a single parent unemployed and caring for a sick mother in raveling of cyprus's financial woes couldn't have come at a worse time by finishing the pension of my mom all of your life is coming up on you make of plans for the. people who are younger. than these. so. you standing with an empty hands. a sentiment echoed throughout the tiny island nation. scenes like these becoming a daily occurrence another day in nicosia cyprus another protest though this one in particular is a gathering of the police of the country's largest lender the bank of cyprus but they worry that the company is headed for collapse and they may eventually lose their jobs though many cypriots told me that they are well aware that this is just the beginning of a long hard road i believe that. europe. germany strolled because we're a small econom

nicosia cyprus krystle's to most of the media is this a member of a media group wake up cyprus believes that the actions of the e.u. leaders have jeopardized the entire cypriot financial system i don't think that it's correct to speak for the bailout because this is not the bailout it can be best described as an overnight assassination because with the decisions that have taken a little group they have pretty much destroyed forty percent of the economy and now they will also add on top of the debt problem that we have another loan and you can obviously understand that the math does not work but facing a new party in the european union this is the first time that he has this has been done but it's like planting a bomb in the structure of the financial system itself therefore i don't see how any any best or people can teach their mind in the banks when now that we have a program twice or even more as bad as it was before then obviously there will be a phrase for a new levy on the deposits so how are they expected to keep that the poses in the banks and if they will not have the banks supp

it was good to have a contribution of the savers in cyprus itself eg if the cyprus does go along with this tax are we going to see other easy countries implementing the same measures of the same tax relief. no i don't think so because this was a very acute crisis and i think it was the only way to save cyprus and other countries will have a different sort of problems but remember in spain savers already have contributed those people who had an interest in the spanish bank bank here lost money some people in other banks have lost money and generally european savers are losing money because we have a policy of cheap money low interest rates that means they're saving money if you put money in the bank it costs you money and this is happening to a lot of citizen in europe already so it would be wrong to i or to to suggest that this is the first thing the first time in happens actually already happened because because savers in europe are not well off at all i was actually going to ask you because there's a lot of our foreign investment and capital in cyprus there which is likely to flee t

cyprus was. surprising for me as a robot. has no. practical telling you can just. ok tanya something that i'm slightly confused on is that i didn't realize it was a separate thing altogether that you could run a company in cyprus have a large corporation but not be deposited there is there's two separate things campaign exactly how he explained it to me that you can enjoy all the benefits of a tax haven risk you want to hear a asked me off camera who do you think will be storing his cash in a country is such in the such a crisis situation and in fact you know i thought would you be storing your cash in the country under the threat of default you know well i don't have any money. if i did have money you know maybe not you know it's interesting all russia's metal giants that are owned by russian oligarchs and i read just that in cyprus which is that you have razzo of more original and carefully sin now and some of the assets or through solid. however we can come to a conclusion about if more of the

the sinking island cyprus struggles to means the e.u.'s demands vital for a bailout ahead of monday's deadline with schools of savers facing the prospect of losing trunks of their money for the sake of rescuing the country's ailing banks. u.k. police say there are no signs of any third party involvement in the death of self exiled washing tycoon barry's results he was said to have repented his past while longing for a return to his homeland. also the syrian national coalition chief announces his resignation raising the alarm over the dramatic divisions within the anti assad forces. starving to death and protest at indefinite detention as lawyers for hunger striking gone ton of the detainees claim their clients lines are on the line the u.s. military denies a crisis and even boards to expand the facility. the latest news and the week's top stories you're watching the weekly here on ars he was me you know hello and welcome to the program. ailing cyprus is in the hands of brussels now as the deadline for the e.u. bailout deal is looming in t

all about cyprus. cyprus, they'll out approved. >> the economy is likely to get worse. >> continuation of stealing what has already been stolen. they will not be happy. >> they are devastated. that is not what cyprus is or ever was. >> europe does not have the mechanisms in place that the united states has to manage a currency or a banking system. >> watch the euro. that affects all of us. stuart: italian banks have been halted in trading. charles: yes. stuart: why? charles: they are worried. these stocks are plummeting. stuart: the dutch finance minister said the cyprus situation is a good template for other european countries. they have reached into private bank accounts, taken the money out and used it to finance the bailout. that is what everybody wanted to avoid and now the dow is down 43 points. >> that italian banks are frozen because now the fear is they will have their money taken out. stuart: the dutch minister is now staying this could prompt a euro zone bank restructuring. that is why the d

how can cyprus restore its banking image after all of this now. ok it seems like we've lost some a c. even a wolf who is the financial a service spokesman for the united kingdom independence party they speaking to us live from london now the european central bank has set and ultimatum for cyprus either a strike of bailout to deal by monday or be cut off from the emergency funds that would be a devastating blow for where banks are remain shut to prevent a massacre drolls tessa cilia has more on what's happening in the capital. the message is so widespread now across the capital that when you walk down the street wherever there's a television it's on the news channel and. that liquidity flow to cyprus will end on monday if there was no new or i.m.f. program in place and that really poses a problem as far as cashflow was concerned we've already gone to some a.t.m. machines are people winding up they're trying to get some cash and some people tell me limit the amount of money they can get from from one withdraw all has lessened some for four hundred f