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AROUND THE WORLD

Inmates Caught after Daring Escape; EU Bailout Spooks Investors; Tourist Gang-Raped in India; Pope Francis's Charm Offensive; Suspect Arrested in Death of US Tourist in Turkey; Regrets Over the Iraq War

Aired March 18, 2013 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


SUZANNE MALVEAUX, CNN ANCHOR: European country packing the big punch on the market. That is around the world today.

MICHAEL HOLMES, CNN ANCHOR: Indeed. And why? Well, because that country likes a lot of its European neighbors needs a bit of a bailout.

Plus is the rescue plan being proposed that's the problem, it would be scoop out as much as 10 percent from everyone' bank account.

MALVEAUX: So of course, it's got the government worried about a run on the banks. So the banks are going to be close in Cyprus for the next couple of days. In a minute we're going to go live to Europe to hear how big the impact could be and why it's rattling the market right here in the United States as well.

HOLMES: And all over the world. Meanwhile, world leaders continue to arrive for the inauguration of Pope Francis. As you see, there's Zimbabwe's long ruling and controversial president, Robert Mugabe, made his way to Rome.

MALVEAUX: And Vice President Joe Biden, he is leading the delegation for the United States. He's joining a long list of leaders and dignitaries who are going to witness the official installation of the former cardinal from Argentina. Of course, Francis is the first Latin American to head the Catholic Church.

HOLMES: Now in Canada. This is quite a story, isn't it? Two inmates, they're back in custody now but not until after they had broken out of jail in Quebec in rather unusual fashion.

MALVEAUX: This is really crazy. So one witness describes it kind of as a James Bond moment. I mean, you've got these inmates, they are hoisted onto a hijacked helicopter, flew away and then this is all happening in broad daylight.

HOLMES: Amazing scene.

Paula Newton is in Ottawa.

Paula, it does sound like something out of a movie. This has happened before, but never where you are. How did -- how did they pull it off? PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: As you say the middle of broad daylight, two accomplices, allegedly -- told a helicopter pilot they just wanted to go for a sightseeing tour over the mountains just north of Montreal, the Laurentian near Mont- Tremblant. Fine, they went up in the helicopter. The pilot says that within a few minutes he had a gun to his head and he was told, look, you land in this prison yard. And they did.

Two cables went down. The prisoners hung on to those cables for dear life and that's when that James Bond moment that Suzanne was talking about happened. They literally were whisked off of that prison yard, up again into that mountainous territory.

Police say there was nothing funny about what the suspects did after that. They were armed and dangerous. They came out shooting when they were able to track down the helicopter and the getaway car. But thankfully it was over within about 12 hours. Both suspects and two accomplices should be in court in a few minutes now. And now some of them charged with attempted murder and obviously hijacking that helicopter.

Many had asked, you know, was the helicopter pilot involved, police say no way. That person had to be treated for shock. They had questioned him and he is still cannot believe what happened to him.

MALVEAUX: So, Paula, what makes these guys think they can get away with this? They're flying from a helicopter dangling in the air? I mean, did they have a backup plan at all?

NEWTON: Well, I don't know. Some people said that he'd watched Charles Bronson or perhaps "Conair." I'm not exactly sure what they were watching. They do describe, though, and if you can believe this, we can't confirm this and police won't confirm it either, that one of the suspects may have called into a Montreal radio station in the middle of this, if you can believe it, saying look, I just can't go back to that place.

They do also have links, suspected links to armed gangs, to the Hell's Angels games in Quebec and that may have something to do with how this whole plan was hatched. But yes, they thought, look, we'll get away with this and we'll go up into the forest and they won't find us. Clearly though police say that they had spotted that helicopter and followed it right into the mountains basically from the get-go.

HOLMES: Unbelievable. Paula, good to see you as always. Paula Newton there in Ottawa around that rather extraordinary tale because you've got the (INAUDIBLE).

(LAUGHTER)

MALVEAUX: Looks like -- no, I can't. It sounds like a movie. It's crazy.

HOLMES: It does. It does.

Now one of the big stories moving markets around the world is the banking crisis brewing in Europe. We're talking about Cyprus here. They need a bailout, not the first European country to do it, but people there are fuming because this rescue plan could cost them as much as 10 percent of the money they've got in the bank.

MALVEAUX: So the plan is even shaking the markets here in the United States. Want to bring in Richard Quest out of London and Alison Kosik in New York.

Richard, want to start off with you here. You know, Cyprus, very small, small country. But people say this is really the Cayman Islands, if you will, of Europe for investors particularly Russian investors. So what does this mean?

RICHARD QUEST, HOST, CNN'S QUEST MEANS BUSINESS: Well, the actual importance of Cyprus to the eurozone economy and the European economy, less than half a percentage point. It is minuscule. It is -- however, the way they have decided to bailout Cyprus is revolutionary. They have said that all people with deposits in the bank will be taxed on them.

Under $130,000 it's a 6.75 percent, that's over $130,000, a 9, 10 percent tax. And of course this is going to hit ordinary -- ordinary depositors, moms and pops, small businesses, anybody who's got a bank account in Cyprus is going to have to pay this tax. And it changes a fundamental principle of all bailouts so far. It is hitting the small people, the private investor, the private depositor.

HOLMES: I guess, Richard, too, look at -- look at the other countries that have been bailed out. You know, Greece as a prime example where wages and retirement was slashed by more than these people are going to pay, which is a one-off tax.

QUEST: No, no, no, no, no.

HOLMES: Is that being discussed?

QUEST: No, no. No, no, no, Michael, don't -- it's not -- in Cyprus' case, it's not an either/or, it's going to be a both. I mean not only are they going to face this tax to help make up a shortfall, they're also going to have spending cuts. They're also going to have the government cutbacks, they're also going to have the recession that follows on as they try and make -- to put the economy back on track.

This was done because some European countries believed to be the Fins and the Germans and other northern European countries wanted to make sure they were not seen as bailing out rich Russian oligarchs who have accounts in Cyprus. Or indeed they now felt that people had to pay their part of the pain. But it was not done in Ireland. It was not done in Portugal. It was not done in Greece.

MALVEAUX: Right.

QUEST: And with the prospect of possibility of Spain and Italy, you have -- you can see. I cannot find, Michael and Suzanne. I cannot find one economist or banker that I've spoken to today that says this was a good idea. Everybody agrees it was a pretty awful policy. MALVEAUX: Well, let's bring in Alison. Because, Alison, I want you to weigh in on the conversation here. We'll take a look at the U.S. markets. Looks like it's down by eight points or so. What is the impact do you think here in the United States?

HOLMES: It's actually come back a long way, hasn't it?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Michael, it really has. I mean, you saw that knee-jerk reaction. Right when the bell opened the Dow dropped as much as 110 points. Obviously it's come back from those losses. You know what the big worry is? The big worry here is that what can happen in Europe can ripple -- have that ripple effect right here to the U.S.

Europe is one of our biggest trading partners. If you see the banks getting squeezed, if you see consumers in Europe getting squeezed, not just in Cyprus but you can see that ripple effect just move throughout Europe and make its way to the U.S., that is really the big worry here and why you see investors spooked by it.

The good news is is that the general sentiment, at least for the U.S. markets lately has been extremely bullish. Still there's a reality that the impact, the potential impact of what's happening in Cyprus and then could possibly, you know, be used as a sort of framework for other bailouts for other countries in Europe.

And the worries of that ripple effect, that is what investors are worried about. Even though Cyprus is a tiny country, this has huge implications for future bailouts in the eurozone. You know, could this idea catch on in other countries? That is really what is spooking investors.

So we know what Richard was talking about. You know, Greece, Portugal, Ireland, they took bailouts. They've got -- they've got to follow strict rules to continue getting their money, but this is over and above that, at least that's how many people feel when you've got the government reaching into your bank account and taking your money out, Michael and Suzanne.

MALVEAUX: Yes.

HOLMES: Yes. The reason it is what's the worry there, I guess. And the banks, too.

Thanks, Richard, Alison, good to see you both.

The banks are getting closed for an extra day so there's not a run on the banks tomorrow. It's a bank holiday there now.

MALVEAUX: Yes. And can you imagine it? Can you imagine the fear, though, of people?

HOLMES: Yes. They're running out of cash.

MALVEAUX: I mean, that's the real money. That's people's money right there. Yes. HOLMES: Yes. They're trying to get it out before it hits.

MALVEAUX: Here are some of the other stories we're working on for AROUND THE WORLD, a rare sight in Syria. Bashar al-Assad's wife and children now out in public.

HOLMES: They haven't been seen for a while.

Also 10 years after the start of the U.S.-led invasion of Iraq, we're going to go back to the scene of one of the war's fiercest fighting.

MALVEAUX: And plus it looks like a scene at any church, right? Preachers gathering before going inside. But if you look at this carefully, it's actually the Pope in the middle of all these folks. He's out and about.

(COMMERCIAL BREAK)

HOLMES: Welcome back. Some of the stories making news AROUND THE WORLD right now.

China is saying that the U.S.' plan to beef up its missile defenses is not going to raise tensions over the North Korea's nuclear program. In fact, could make matters worse.

MALVEAUX: And the U.S. is adding more missile interceptors on the West Coast, following the latest threat from North Korean leader Kim Jong-Un. Now he has threatened a preemptive strike on the United States and South Korea because of increased U.N. sanctions.

HOLMES: Violence ratcheting up in Syria of course where the conflict continues to grow and spill over borders. Lebanon state television news agency says Syrian war planes shelled villages in northern Lebanon today.

MALVEAUX: And sources say that two jets fired rockets that hit empty buildings in the Lebanese border town of Arsal. There were no injuries we're told. Just last week Syrian state media reported that armed terrorists had infiltrated Syria from Lebanon.

HOLMES: Let's go to Vatican City now. Pope Francis meeting with the president of his home country. The Vatican hoping it will quell controversy over Francis' alleged conduct when Argentina was run by military dictators.

MALVEAUX: So some are actually saying he did too little, too late, to protect who two Jesuit priests who were kidnapped in Argentina's so- called dirty war. Thirty thousand students, labor leaders and intellectuals disappeared or were held in secret jails in torture centers. That was from 1976 to 1983.

HOLMES: The other cardinal Francis also clashed with Argentine president, Christina Fernandez de Kirchner over his opposition to same-sex marriage.

MALVEAUX: In India six men are now under arrest. This is the gang rape and robbery of a Swiss tourist. They appeared in court. It was just a short time ago.

HOLMES: It was. The woman and her husband were camping near a forest in central India when they were attacked. They were on a biking tour.

MALVEAUX: And Sumnima Udas reporting that the case is now focusing fresh attention on the number of sexual assaults in India. Take a look.

(BEGIN VIDEOTAPE)

SUMNIMA UDAS, CNN CORRESPONDENT: The six men arrested for the rape and robbery of a Swiss woman in a remote part of central India over the weekend has confessed so their crimes. Local police say they have recovered items that the six suspects have stolen from the Swiss couple including a laptop, mobile phone and some money.

The confessions in police custody don't actually mean anything. They're not admissible in the court of law here. So the police have also sent blood samples of the six suspects for DNA testing. Those results of the DNA testing will be submitted to the court once they're ready.

Police say the six suspects belong to a local tribe. They're actually known criminals. They have a history of alcohol trafficking and drug trafficking and they live very close to where the Swiss couple was camping out that night.

Now the Swiss couple has been in India since early February. They're actually on the cycling tour cycling from the city of Mumbai all the way north to Agra where the Taj Mahal is.

Now this rape case has once again put the spotlight on the way women are treated in India. Yes, this incident took place in a very remote part of the country. The crime was committed by criminals who are well-known. And, yes, something like this could have happened anywhere in the world, but still observers here say the fact that this is happening so soon after the Delhi gang rape case does not put India in a good light.

Sumnima Udas, CNN, New Delhi.

(END VIDEOTAPE)

MALVEAUX: The Swiss Foreign Ministry says that that couple, they're receiving medical treatment now. They're both willing to identify the suspects in the case, and they're actually going to stay at the Swiss embassy in New Delhi for quite a bit of time.

HOLMES": Yes, no plans to leave at the moment.

I want to go to the Pope now, the unpredictable Pope if we could call him that, shaking hands, meeting, greeting face-to-face with the faithful. That's coming up.

MALVEAUX: And a reminder, of course, to watch CNN's new show, "THE LEAD" with our friend, Jake Tapper, starting today at 4:00 Eastern for our U.S. viewers.

(COMMERCIAL BREAK)

MALVEAUX: This is pretty cool, the new Pope delivering his first Sunday message from his papal apartment. That happened yesterday. I like this guy already.

HOLMES: He's pretty fast and loose. He's -- it's what he's doing outside the Vatican that's actually capturing a lot of attention.

Ben Wedeman caught up with Pope Francis among the people on the streets of Rome.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: It could be any church, the priest greeting worshippers one by one after Sunday mass. But it wasn't any church, and it wasn't any priest. It was Pope Francis at the Santa Ana parish church in the Vatican.

His "charm offensive" moving full-steam ahead, he stepped outside the Vatican and into Italian territory to greet well-wishers.

UNIDENTIFIED MALE: I was watching some of the video when he came out of the church and, obviously, he seems very personable. He was really connecting with the people.

WEDEMAN: In his first Sunday as Pope, Francis appeared at the window of his papal apartment overlooking a packed St. Peter's Square, speaking of forgiveness and compassion, and eliciting a laugh when he insisted he wasn't providing free advertising for a cardinal whose writing he praised.

He ended his message with a simple wish, "Have a good Sunday and have a good lunch."

Maria Laura Deprez, an Argentinean like the Pope, already feels closer to the church.

MARIA LAURA DEPREZ, FROM ARGENTINA: One of the problems that that the Catholic Church has had is that they were so high we were too low. So, now, he's coming closer and we are very happy for that.

WEDEMAN: His personal style is going down well.

UNIDENTIFIED MALE: He seems like a very nice guy, very humble, very down-to-earth.

(END VIDEOTAPE)

MALVEAUX: Want to bring in our Ben Wedeman joining us live from Rome.

So, Pope Francis really shaking things up a little bit there, huh?

WEDEMAN: Yeah. Shaking things up, also shaking up his security a bit. One of the Italian newspapers quoted a member of his security detail after that incident when he walked out into the streets of Rome saying, if he keeps this up, we're going to all go crazy.

HOLMES: Well, I can imagine it would be giving them heart attacks. I've got to ask you about the inauguration, though. That's tomorrow. What's likely to happen? And we touched on the guest list. Of course, the Argentine president, he met her, but also Robert Mugabe's there, as well, despite an E.U. travel ban. I mean, is that being talked about?

WEDEMAN: It's being talked about, but according to the protocol between the Vatican and Italy going back to 1929, there's no interference by Italy with visitors to the Vatican. And according to what I've read, Robert Mugabe is described as a devout Roman Catholic.

HOLMES: So, what happens at the inauguration then? What do we expect?

WEDEMAN: Well, the Pope is going to be out early in the Popemobile, going around St. Peter's Square and then there's going to be a special mass on the occasion. Now, what's interesting is the Vatican is already saying, even though they're going to be publishing the text or releasing the text of his homily beforehand, they say he's an unpredictable man and he may depart from the text.

Already, for instance, we're hearing that the Ring of the Fisherman, the traditional gold ring of the Pope, is going to be different this time. It's not going to be solid gold. It's going to be gold-plated silver. So, he's already departing from some very old traditions followed by the Pope. And I suspect this is the beginning of an untraditional papacy.

MALVEAUX: Yeah, that's pretty amazing.

HOLMES: Catch him shopping down the road and going to coffee shops and ...

MALVEAUX: He's not wearing the Prada shoes.

HOLMES: Not wearing the Prada shoes, unlike Ben Wedeman, always dressed in Prada. Good to see you, Ben. We'll talk to you again soon.

MALVEAUX: It's been 10 years now since the start of the Iraq war. One man stood out in the mind of our own Arwa Damon. He actually risked his life by speaking out. We're going to go back to his town and find out if it was worth the risk.

(COMMERCIAL BREAK)

HOLMES: Welcome back everyone to "AROUND THE WORLD." Here are the top stories for now.

MALVEAUX: Ohio's attorney general says more people could face charges in the Steubenville rape case. Two teens were found guilty yesterday of raping a drunk 16-year-old girl last August.

HOLMES: Yeah, the judge called the whole incident profane and ugly. After he announced his verdict, both boys did apologize, one breaking down in tears.

(BEGIN VIDEO CLIP)

TRENT MAYS, CONVICTED RAPIST: I would like to apologize to (DELETED), her family, and my family and the community.

MA'LIK RICHMOND, CONVICTED RAPIST: I would like to apologize to you, too. I had no intentions to do anything like that. And I'm sorry to put you guys through this. And I'd just like ...

(END VIDEO CLIP)

MALVEAUX: Ma'lik Richmond -- you just saw him there -- was sentenced to at least a year in a juvenile correction facility. Trent Mays got a two-year sentence.

Istanbul, Turkey, now, police, they are now questioning a suspect in the killing of a New York woman in January. The suspect called "Z.T." was caught at a border crossing between Turkey and Syria just yesterday.

HOLMES: Sarai Sierra, a mother and amateur photographer from Staten Island, was found dead. You may remember this story. This was by an ancient wall in Istanbul.

MALVEAUX: And tomorrow marks the tenth anniversary of the start of the Iraq war. You know, the big question of whether or not it was worth it, very controversial, a lot of people talking about it and it depends on you who ask.

HOLMES: Indeed. Thousands, of course, American families suffered losses. According to the Pentagon, more than 4,400 U.S. troops were killed in action. For every U.S. combat death, seven were wounded. Almost 32,000 Americans came home with battle wounds.

MALVEAUX: So, we may never really know how many Iraqi civilians died in the war.

Arwa Damon, she covered the war for almost the past 10 years or so. She has an incredible perspective, and, early on, she actually met with this Iraqi man. And in the beginning, he welcomed U.S. forces. Now, he says he regrets this, and the -- his country is worse off than before.

HOLMES: Yeah, indeed. Yeah, Arwa spent, literally, years covering the war.

I should warn you that her report here from the town of Husayba contains graphic images that may be disturbing to some viewers.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: We're heading along the Euphrates River valley in Al Anbar Province, lands that once made up part of al Qaeda's kingdom in Iraq, driving towards Husayba, a town close to the Syrian border. The market is vibrant, alive, so different from the last time I was here.

It was November 2005. I was embedded with U.S. Marines on Operation Steel Curtain.

It was similar to countless other embeds.

UNIDENTIFIED MALE: He's been fingered as a bad guy.

DAMON: Troops going house-to-house, civilians filing out petrified.

A man named Mohammed Rejeb was among them, and he told me.

MOHAMMED REJEB, HUSAYBA RESIDENT (via translator): We want them to save us from the terrorists. We want stability.

DAMON: A simple wish perhaps, but al Qaeda killed anyone who spoke out against them. No civilian I had ever met had dared do so openly. I was in awe of Mohammed's courage.

The battle for Husayba was intense. Fighters lurked in alleyways, hid behind doors. The ground shook in the U.S. bombardment.

But it wasn't only al Qaeda they hit. In one strike, one entire family was killed.

People had buried the dead in a garden. A curfew prevented them from going to the graveyard.

When we arrived. they were digging up and moving the bodies. All but one were women and children.

And there was Mohammed Rejeb still searching for victims. The dead were his relatives.