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South Koreans Go About Business As Usual; Australian Marc Leishman Leads Masters After Round One; New Prosthetic Hands Use Mobile App For Control; Tornadoes Rip Through Mississippi, Georgia; Pervez Musharraf Admits To Secret Drone Deal With U.S.

Aired April 12, 2013 - 08:00:00   ET


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

Now, the U.S. says North Korea will not be accepted as a nuclear, but opens the door to talks. We'll be live in Seoul where the U.S. Secretary of State is visiting.



NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: No Pakstani official has ever acknowledged sanctioning U.S. drone strikes until now.


LU STOUT: In an exclusive interview with CNN, former Pakistani President Pervez Musharraf reveals a secret deal on drone strikes.

And it gives a new meaning to mobile technology, this double hand amputee gets major assistance from a smartphone app.

The United State's top diplomat is on the Korean Peninsula as the region awaits North Korea's next move. Now John Kerry met with South Korean leaders in Seoul today and reiterated their joint stance.


JOHN KERRY, U.S. SECRETARY OF STATE: We are all united in the fact that North Korea will not be accepted as a nuclear power. The rhetoric that we're hearing from North Korea is simply unacceptable by any standard. And I am here to make it clear today on behalf of President Obama and the citizens of the United States and our bilateral security agreement that the United States will, if needed, defend our allies and defend ourselves.


LU STOUT: Now Kerry also said that the U.S. is prepared to enter into talks with North Korea only if Pyongyang is serious about denuclearization.

Let's go to Jim Clancy live for us in Seoul. And Jim, just walk us through this diplomatic dance here. Secretary Kerry at once being very firm with North Korea and yet he seems to be offering a way out of this crisis -- talks with conditions.

JIM CLANCY, CNN INTERNATIONAL CORRESPONDENT: Well, you know, we started like so many others when we were really looking upwards to the sky expecting a show of fireworks from North Korea. That didn't come, and instead suddenly diplomacy is late on the table in front of everyone. You know, the U.S. as you just heard right there, Secretary Kerry talking in strong terms, certainly. But he also backed up a little bit saying that President Obama had ordered that some of the maneuvers that they're doing with the South Koreans be scaled back or canceled altogether, that is a fig leaf that's out there, a peace -- an olive branch if you will, that could help North Korea to back down a little bit in all of this. They hate these joint maneuvers.

But at the same time, Mr. Kerry said the ball at this point is really in Kim Jong-un's court.


KERRY: It's up to Kim Jong-un what he decides to do. It's not going to change our current position, which is very, very clear. We will defend our allies. We will stand with South Korea, Japan and others against these threats, and we will defend ourselves. And Kim Jong-un needs to understand, as I think he probably does, the outcome of a conflict would be.


CLANCY: Now, earlier, he mentioned Japan there, Kristie. Earlier, North Korea issued a threat to Japan that it would be the first one it attacked if it didn't -- well, if it carried through on its threat. Japan had said that if North Korea fires missiles over its territory they will be shot down. A very strong fiery message there sent off to Japan threatening it today.

Much less atlk about the missiles and Kim Jong-un's ballistic capabilities.

LU STOUT: So, more warnings, more threats from North Korea this day. Diplomacy in action with the U.S. secretary of state there in Seoul.

The NATO chief is also in Seoul, what is he saying about the North Korean threat and how it pertains to the alliance?

CLANCY: Well, he said -- you know, they're very clear. They've come here to consult with the South Koreans like-minded people. He talked to President Park Geun-hye. He said she appeared very open to talks with the North Koreans, to carry it through if that will advance the cause of peace here. But he's, frankly, concerned, because the missile technology being developed in North Korea is shared with countries like Iran. And that threatens the NATO sphere of influence. Here's what he had to say.


ANDERS FOGH RASMUSSEN, NATO SECRETARY-GENERAL: Obviously, proliferation of weapons of mass destruction and their means of delivery, that is missiles, constitute a real threat also to populations in NATO countries. But let me stress that I'm not here because NATO has any intention to engage as an alliance in this part of the world. We don't.


CLANCY: What we do is we do look forward to seeing what comes out of President -- or out of Secretary Kerry's visit to Beijing. You know, that pullback on the maneuvers that was ordered by President Obama is something that China had hinted that it would like to see. That's already done, taken care of. Now we'll see what happens in Beijing, which is the next stop for the U.S. Secretary of State -- Kristie.

LU STOUT: All right. Jim Clancy joining us live from the South Korean capital, thank you.

Now the UN chief and former South Korean foreign minister Ban Ki-moon has repeatedly urged Pyongyang to ease the war talk, but Ban, he took it to a much more personal level on Thursday when he spoke to our Wolf Blitzer.


WOLF BLITZER, CNN ANCHOR: They're watching you in Pyongyang right now on CNN International. If you have a chance to speak directly right now to Kim Jong-un, you can make a statement, make some requests from him, what would you say to him?

BAN KI-MOON, UN SECRETARY-GENERAL: I will strongly ask him to first of all refrain from taking any such a provocative measures, which is clearly in violation of -- against the security council resolution, against the expectation of the international community. I would strongly urge him to do more, to enhance the living standard of his own people when they are suffering from this economic difficulty.

BLITZER: One final question, secretary-general, look at that camera right over there, speak to Kim Jong-un in Korean.

KI-MOON (through translator): I would like to convey a sincere message to Kim Jong-un. In order to restore peace and unification to our Korean Peninsula so we can resolve all pending issues through dialogue, as Secretary-General of the U.N. and as a citizen of Korea, I sincerely ask that you end the recent provocative actions, and return to dialogue. Thank you.


LU STOUT: A direct and personal message in Korean to Kim Jong-un, the North Korean leader from Ban Ki-moon, the secretary-general of the UN there.

Now meanwhile officials in Washington, they're trying to downplay newly revealed intelligence assessments that suggest that the North's weapons may be much further along than previously thought. And for more on the report and also the fallout, let's go to our Pentagon correspondent Chris Lawrence. He joins us now live.

And Chris, there's just a lot of debate there over just one question, can North Korea today deliver a nuclear warhead?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: It depends on if you believe the assessment that was publicly revealed yesterday or all the clarifying statements that have come since.

Look, Kristie, we were never supposed to hear of this statement, that was made clear to me and talking to sources. They said it was a mistake to mark this as unclassified, but that being said, it did come out and the congressman, the U.S. congressman who asked about this in a public hearing says it's something the American people and the world needs to know.


LAWRENCE (voice-over): Kim Jong-un has threatened a nuclear strike, and revelations from a new intelligence report show he may be capable of following through.

REP. DOUG LAMBORN (R), COLORADO: The North currently has nuclear weapons capable of delivery by ballistic missiles.

LAWRENCE: Congressman Doug Lamborn quoted from a new intelligence assessment which suggests North Korea may be closer to marrying nuclear weapons with the missiles to deliver them.

LAMBORN: Whatever it takes to miniaturize it to the point where it could be placed on top of a missile. There is some degree of confidence, moderate confidence by the Defense Intelligence Agency that that can be done by North Korea. LAWRENCE: The revelation came as President Obama publicly appealed to North Korea to end its belligerent approach.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And to try to lower temperatures. Nobody wants to see a conflict on the Korean Peninsula.

LAWRENCE: If true, the revelations give new weight to North Korea's recent threats.

UNIDENTIFIED FEMALE (through translator): Our arms are ready to fire and the exact coordinates are input to the warheads. Once we push the button, it will be fired and the strongholds of our enemies will be turned into a sea of flames.

LAWRENCE: The U.S. believes North Korea has at least once Musudan missile on the launchpad. U.S. officials say after initially raising the launcher, they lowered it Thursday. But they're not sure if Kim Jong-un is backing off or testing that it works first before firing.

LT. GEN. JAMES CLAPPER (RET.), NATIONAL INTELLIGENCE DIRECTOR: I don't think really he has much of an end game.

LAWRENCE: The director of national intelligence says Kim is trying to get recognition from the United States.

CLAPPER: North Korea's a rival on an international scene as a nuclear power, and that that entitles him to negotiation and to accommodation, and presumably for aid.


LAWRENCE: Now about that assessment, since its revelation yesterday, numerous U.S. officials have come out to try to put some clarification and context on what it revealed saying, look, this was one assessment. It's not necessarily the same conclusion that other intelligence agencies like the CIA have come to. Also, officials have said they believe miniaturization is an extremely difficult process. They don't think right now, today, that the North has mastered this technology to the point where it's tested and has in its possession a fully capable nuclear missile -- Kristie.

LU STOUT: OK. And that's the latest word from the Pentagon. Chris Lawrence joining us live. Thank you very much indeed for that.

Now in Taiwan, authorities say some 600 passengers have been evacuated from a high speed train after explosives were found in a bathroom. Police say a timer was attached to five liters of gasoline. This device, it was hidden inside luggage. It attracted the attention of passengers when it began emitting white smoke and the smell of gas. Now the train, which was headed to Taipei was stopped at Shinju City.

Now you're watching News Stream. And coming up next, Venezuela votes again. The country goes to the polls this weekend less than six weeks after the death of leader Hugo Chavez.

In Pakistan, Pervez Musharraf is running in upcoming elections, but could his revelation about a drone deal with the U.S. hurt his chances? We have an exclusive report.

And as the debt crisis deepens in Cyprus, European leaders gather in Dublin to discuss the bailout deal. All that and more right here on CNN.


LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now campaigning is over in the race to become Venezuela's next president. And the shadow of the country's late president Hugo Chavez looms large over the race. Now Chavez's interim successor Nicolas Maduro is running against opposition leader Henrique Capriles Radonsky.

Now voters go to the polls on Sunday, less than six weeks after the death of Chavez. 18.5 million people are registered, that's a little more than half of the population. And at the heart of this election, the debate over free market reforms versus social program.

Now Venezuela is one of the world's top 10 oil producing countries. And oil accounts for almost a third of its GDP, and yet more than a third of Venezuelans live in poverty.

Now, let's turn to Pakistan's upcoming national elections. A liberal candidate has been shot dead in Hyderabad. Now Fakar al-Islam was a member of the secular MQM Party. And he was killed by two men on a motorbike on his way home from his office on Thursday. Now the Pakistani Taliban have warned people to stay away from the elections.

Now former Pakistani President Pervez Musharraf plans to stand in the May election, but his recent revelation to CNN may not help him win votes at home. Now he acknowledges that his government secretly signed off on a limited number of U.S. drone strikes. Nic Robertson has this exclusive interview.


ROBERTSON: The aftermath of a deadly American drone strike in Pakistan. Images like these have soured US-Pakistan relations for almost a decade. No Pakistani official has ever acknowledged sanctioning US drone strikes until now.

ROBERTSON (on camera): What you're saying here, on occasion there was agreement.

PERVEZ MUSHARRAF, FORMER PAKISTANI PRESIDENT: No. Only on very few occasions where the target was absolutely isolated and had no chance of collateral damage.

ROBERTSON (voice-over): Pervez Musharraf was Pakistan's military ruler when drone strikes began in 2004 and was bitterly and publicly critical of them. Now, he admits there was a secret deal.

MUSHARRAF: One discussed at the military level, at the intelligence level, to strike. And if at all, there was no time for our own SOTF and military to act, then. And that was very, very -- maybe two or three times only.

ROBERTSON: Back then, al Qaeda and Taliban fleeing US forces in Afghanistan set up camp over the border in Pakistan's tribal region. America and Pakistan had a common enemy and a common strategy: kill militants when they could.

MUSHARRAF: The answer used to be that it was a fleeting target, and we couldn't delay the action. We -- these ups and downs kept going. You see, this is a very fluid situation, a vicious enemy and a fluid situation. Mountains, inaccessible areas.

ROBERTSON: By the time he was forced from office in 2008, Musharraf says he sanctioned only a couple of strikes. The vast majority came under the civilian government that followed him.

(on camera): Since 2003, there have been more than 350 drone strikes in Pakistan, mostly in the semi-autonomous tribal border region close to Afghanistan. There are no precise figures for how many people have been killed, but estimates range upwards of 1900, and of those, more than several hundred are believed to have been civilians.

(voice-over): Most Pakistanis detest the drone program for the loss of life and because it violates Pakistan's sovereignty. Ministers her routinely condemn them.

REHMAN MALIK, FORMER PAKISTANI INTERIOR MINISTER: What I can say, today the world power, the world super power, is having its own way without having any consent from Pakistan.

ROBERTSON: But a diplomatic cable attained by WikiLeaks tells another story, recounting a meeting between the US ambassador, Malik, and the then- prime minister Gilani. She wrote, "Malik suggests we hold off alleged predator attacks until after the Bajaur military operation. The PM brushed aside Rehman's remarks and said, 'I don't care if they do it as long as they get the right people. We'll protest in the National Assembly and then ignore it."

Musharraf, too, covered up US drone attacks when it suited him. When militant Nek Muhammad was killed in 2004, the Pakistan army said it killed him in a rocket attack. Except it didn't.

ROBERTSON (on camera): Was Nek Muhammad killed by a drone or by Pakistani military? US drone?

MUSHARRAF: I think he was -- he was killed by US drones. Yes. But there was no agreement as such, and every time, we did object.

ROBERTSON (voice-over): Objections that were frequent, loud, and public, but not always sincere.

Nic Robertson, CNN, Islamabad, Pakistan.


LU STOUT: You're watching News Stream. And still ahead, teen on the green: the golfing prodigy making history at The Masters tournament.


LU STOUT: Welcome back.

And you're looking at a video rundown of all the stories in the show. We've already brought you the U.S. Secretary of State's comments in Seoul. And later, we'll look at life inside North Korea. But now we want to turn to sport. It is day two at The Masters in Augusta, Georgia.

Now Spain's Sergio Garcia is tied for the first round lead, that's along with Australia's Marc Leishman. But it was a more junior player who is making just as many headlines. At just 14 years old, China's Guan Tianlang is the youngest competitor in the tournament's history. And he's apparently proud of his home country. You can see he sported a small Chinese flag on his shirt during day one.

Now, it is day two of the golf's Masters championship. And two very different players were leading the chase for the Green Jacket. World Sport's Alex Thomas has more -- Alex.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Yeah, hi, Kristie. One virtual unknown and one unfulfilled talent lead the way on the opening day of the year's first major as you've just been telling us. The second round action has started at Augusta. Let's go live to our own Patrick Snell. Patrick, bring us up to date, please.


Yeah, let's start by recapping the current state of the leaderboard. Let me take your right to that. And you can see Thursday, day one, was highly productive indeed for two golfers in particular. As we mentioned, Sergio Garcia of Spain, the 33 year old, formerly known as El Nino, or The Child, leading the way at six under par. He has company with Marc Leishman, the 29 year old Aussie also at six.

Great round for Dustin Johnson at five under. And Rickie Fowler as well, one of the infamous golf boys also at four under par.

But what about Garcia? Is he the best player ever to not win a major? Certainly expressing doubts this time last year at this particular tournament, Alex, when he questioned his own ability to win a major. At six under par, showing some great signs after that 66 that he's well equipped. He now believes that maybe, maybe he can get rid of those inner gremlins and push on and take full advantage and get his hands on that coveted green jacket.

Well, Leishman, as well, at 29 real bit of redemption for him, I think it's fair to say, because he came here in 2010 and he was cut. He wasn't even around for the weekend. He admitted on that occasion he was simply star struck by what was going on around him. This time, though, very different. And he's feeling no pressure at all, I would imagine. He's got nothing to lose, oh, other than the fact he is trying to become the first Australian ever to win a Masters title.

I want to move on, though, and take you to Guan. 14 years of age, Guan Tianlang so proud, so pleased to be here. This is the guy that just played his practice rounds by day with the likes of Tiger Woods and then goes off, studies, perfects, tries to work hard on his English. He's doing a great job on that.

I shook him by the hand on Tuesday after he had been holding court with the world's media. He's so relaxed. He's a very impressive character. And he may lack some length off the tee, but there's no question he's very comfortable being here. And you might just say he's just perfectly relaxed and at peace with himself.


GUAN TIANLANG, GOLFER: It's like a dream come true, and I'm just a little bit nervous on the first tee. But I hit a great tee shot on it. And after that everything just feel (inaudible).

SERGIO GARCIA, GOLFER: If we would have been here with 14 years old, I mean, we would have been shaken. And I mean, it happened to me with 16 when I played the British Open and I thought I was going to miss it on that first tee shot. So I can imagine how he must have felt.


SNELL: One over par for the championship. Alex, he's shooting 73. Guan is one impressive young man.

THOMAS: Yeah, fantastic story, that, Patrick.

But what about the pre-tournament favorite, the world number one, Tiger Woods?

SNELL: Yeah, I suppose we should give him a mention. After all, he's just four shots back. He's going for a fifth green jacket. And solid stuff from Tiger Woods. He was two under par 70 during Thursday play. He's nicely in position. He's looking to make his move. There's no question about that. And I came up with an interesting stat, or rather I came across an interesting stat, because he's won this tournament four times -- three out of those four times he shot 70 during first round play and gone on to win the title.

It's been eight long years, though, Alex since he last won a master's title, almost five calendar years since he won a major, that's a lifetime if your name is Tiger Woods, Alex.

THOMAS: And Patrick, you were talking about Guan being such a schoolboy that his mom had to bring his pack lunch for him.

Have you had your pack lunch?

SNELL: No, I'm still waiting. Producer Kim away to my left here is pretending to be on the phone, pretending to coordinate elements for these hits. Where is my snack pack? Hopefully next hour, Alex.

THOMAS: Well, hungry or not, Patrick is going to be here all day updating us on CNN. Thanks Patrick.

Now, let's turn to football, because we could yet see an all-German or an all-Spanish Champion's League final after teams from the same country were kept apart in the semifinal draw earlier. Last season's runners up Bayern Munich will take on fellow four-time winners Barcelona. And the other semi will see 1997 champions Borussia Dortmund face Real Madrid, the most successful side in the competition's history with nine titles.

That's a repeat of the 1998 semifinal match which Real won. The first leg is to be played the week after next.

Full analysis on that draw in World Sport in just over three-and-a- half hour's time. We'll go back to Augusta as well, but for now, Kristie, back to you.

LU STOUT: All right, Alex Thomas there. Thank you.

Now the celebrity chef Anthony Bourdain is coming to CNN with a new show Anthony Bourdain: Parts Uknown. He is on a mission to experience some of the world's more unknown delicacies. His first stop, Myanmar. But as the wandering chef found out, there is a lot more to take in than the local cuisine.


ANTHONY BOURDAIN, PARTS UNKNOWN: It's bizong dai (ph), full moon day, a holiday marking the end of the rainy season. And today marks the beginning of three days of break out the crazy. Giant speakers compete for attention. Everybody cheerfully oblivious to the distortion. Cotton candy, trinkets, tube socks, just like a New York street fair, but with infinitely better food.

Are these the little birds?

UNIDENTIFIED MALE: Yeah. These guys are really good. Was flying just a bit earlier this morning.

BOURDAIN: I tell you, it's the backbone of every street fair in the world, isn't it? Deep fried food.

UNIDENTIFIED MALE: That's right. But here they also have the little batter they break a quail egg in it. One shot, it's pretty good. This is so tasty. Much greasier than I thought it would be. (inaudible) delicate.

BOURDAIN: Tell me crispy little bird, I'm all over it.

UNIDENTIFIED MALE: Good beak, too.

BOURDAIN: Good beak.

UNIDNETIFIED MALE: Crispy and tender.

BOURDAIN: Oh, and they have rides.

Check this out. OK, it's a Ferris wheel, but the power source not unusual for these parts is not electric, it ain't gas. Oh man, are you kidding me? It's human power.

UNIDENTIFIED MALE: Yes, (inaudible).

BOURDAIN: And absolutely insanely dangerous closely choreographed process of first getting the giant heavily-laden wheel in motion, and then getting it up to top speed and keeping it there.


LU STOUT: Who'd have thought a carnival ride would be that extreme. Wow, Anthony Bourdain: Parts Unknown, it premiers Sunday night in the U.S. That's 2:00 am Monday in London, 3:00 am in Berlin.

You're watching News Stream. And still to come, the images that North Korea doesn't want you to see. Border guards covering the tracks of those escaping into China. We have more on that secret footage up next.

And crunch time for Cyprus: European ministers meet to discuss the bailout package, but Cyprus still needs to come up with more cash.


LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream and these are your world headlines. Now North Korea will not be accepted as a nuclear power, that is the message from U.S. Secretary of State John Kerry, a message he delivered from North Korean leader Kim Jong- un from Seoul. Now this day, Kerry met South Korean officials in Seoul today as the region waits to see if the North will launch one or more ballistic missiles.

Kerry's trip will also include stops in China and Japan.

A leading medical charity says tens of thousands of people have fled the conflict in Mali are living in appalling conditions in a refugee camp in Mauritania. The organization Medecins Sans Frontieres says conditions are so bad that the health of many refugees has declined since they arrived.

Now the AFP news agency reports that 13 Afghan soldiers have been killed near the Pakistani border. The agency quotes a police officer in Kunar Province who says Taliban militants stormed an army post. He says the gun battle left it completely destroyed.

South Korean officials are on the alert in case the North does indeed launch a missile. But the South Korean ambassador to the United Nations told our Christiane Amanpour that people in his country have not let the threat affect their day-to-day lives.


CHRISTIANE AMANPOUR, CNN INTERNATIONAL CORRESPONDENT: is it possible, do you think, that there could be war?

KIM SOOK, SOUTH KOREAN AMBASSADOR TO THE UN: Well, always possible, but at the moment whether it is practically possible I think rather negative. We have seen many times before, but this time it is different, because the level and intensity of their invectives and slandering is different, but people in Seoul and by and large the South Korean people are not in panic.


LU STOUT: Now, this is an image that North Korea's leadership wants you to see. It's from a military parade almost exactly one year ago marking the 100th birthday of the country's late founding leader Kim il- Song. Thousands of troops here are marching in support of the government. You may see a similar scene on Monday, which is the 101st anniversary of Kim il-Song's birth.

But this is in stark contrast from the reality of millions of North Koreans. Only a small minority have been brave enough to try to escape. And Angus Walker of ITN met woman who got out.


ANGUS WALKER, ITV CORRESPONDENT: Under the cover of darkness, smugglers cross a frozen river from North Korea into China, taking enormous risks and food and fuel back to their impoverished country.

This was filmed a few weeks ago. The footage even shows an armed soldier who has been paid to cover their tracks at first light, bribing the border guards and following in the smuggler's footsteps is how people escape from North Korea.

Now, in hiding, in South Korea, this woman defected shortly after Kim Jong-un came to power. We've protected her identity, because she had to leave some of her family behind. Fighting back tears, she tells me she got out risking death if she was caught so she could live.

UNIDENTIFIED FEMALE (through translator): My family had decided to commit suicide, because for three days we didn't have anything to eat. We decided to starve to death. We said let's die. But then I wanted to survive. I filled the house with 30 kilos of rice.

WALKER: Millions have little food. This footage smuggled out was filmed last month. Reports from inside North Korea suggest food prices have tripled in a year.

UNIDENTIFIED FEMALE (through translator): To survive, I had to eat grass. People picked grass and leaves. They used them to make soup.

WALKER: What do you think of Kim Jong-un? And what do you think of what he's threatening to do?

UNIDENTIFIED FEMALE (through translator): Kim Jong-un is trying to be more extreme than his father and trying to distract the North Korean people from their own problems and complaints.

WALKER: Gangnam Style, South Korean pop in North Korea on a smuggled DVD, the sites and sounds of the 21st Century for those trapped in time in an Orwellian nightmare. It's a glimpse of another world so near and yet so far away.

And some of those who have managed to escape told me today that when they finally made it to freedom here in the south, they began to realize in their words that farm animals are treated better in the outside world than human beings back in North Korea.

Angus Walker, ITV News, Seoul.


LU STOUT: Incredible glimpse inside North Korea there.

Now could China convince North Korea's young leader to somehow calm down, calm the situation? Now that's the subject of an analysis piece on our website. You could also check out an interactive page on North Korea's suspected missile capabilities, all that and more

Now EU finance ministers are meeting in Dublin to discuss the terms of Cyprus's big bailout deal. Today's meeting, it caused early jitters on the European stock markets with worries that Cyprus would need more money, but officials say that the EU and IMF will not provide extra cash to help plug the hole.

EuroZone finance ministers have announced that they will give their political backing to 10 billion euros of loans, but that's the limit.

Let's get more now from our Isa Suarez in London. And Isa, first, we've got to clarify this morning's confusion. I mean, is Cyprus appealing for extra funding?

ISA SUAREZ, CNN INTERNATIONAL CORRESPONDENT: Right, let's get this straight, then, Kristie. Hello.

Cyprus early this morning, there were reports that Cyprus was asking for assistance. CNN, we put in calls to Cyprus and they said they -- I'm going to quote, "we will make the current deal work." In other words, they are going to have to find the money themselves. In the last few minutes, they will have no choice but make it work, because the Euro group has approved a 10 billion euro bailout that was set a month ago.

If you'll remember the Euro group said we'll give you 10 billion, but the extra 7.5 billion you'll have to find yourselves. But all of this has kind of deteriorated with the economic picture. In the last day or so, we have learned that Cyprus will need 23 billion euros for its bailout, that's bigger than the country's economy.

So how is Cyprus going to plug this hole, really, as you mentioned? It's going to be extremely tough. And I think that's why markets are really a bit wary this morning, a bit apprehensive. With the economy expected to shrink, they're worried that Cyprus may be knocking on the IMF and the European Commission's door again -- Kristie.

LU STOUT: OK. And thanks for that clarification there.

And meanwhile, what is the state of capital controls in Cyprus?

SUAREZ: Well, as you know, last month they put a restriction in place very tough capital controls because they thought there was going to be a run on the banks. Now that's being eased slightly for the next seven days or so. If we bring in a (inaudible) I can break it down for you.

So basically domestic transactions have been eased and will remain in place to 300,000 euros. Although cash withdrawals of 300, you'll remember we saw last month are still in place. You can't take more than 300 euros out per transaction

Travelers can take out about 2,000 euros in cash. That's 1,00 extra. So if you're traveling it helps. It helps hugely. And the fresh off the company payments, the broad have been raised to 20,000 from 5,000. I think this means this is very important for businesses who actually need to make these payments, very important small and medium-sized businesses and this is a step in the right direction.

But Kristie, I just -- Kristie, I just want to make it very clear that the European Commission was very, very strong on this. We will only give 10 billion. We won't give any more. Cyprus will have to find the rest. And I think from now on, it will be very tough -- it will be very, very tough for Cyprus. How is it going to plug this hole through bank restructuring, through privatization, down-sizing the public sector workforce. And also, we've learned, selling some of its gold reserves.

LU STOUT: Which would be precedent setting, if indeed that happens. Isa Suarez joining us live from London, thank you very much indeed for that.

Now let's turn now to Moscow where the Bolshoi Ballet is still in turmoil after three months it's artistic director was viciously attacked. Now there have been no more physical assaults since then, but as Phil Black tells us two men with the Bolshoi are verbally attacking each other at every opportunity.


PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Russian police say they've solved the mystery of the Bolshoi acid attack. The company's traumatized dancers are getting on with their jobs of rehearsing and staging productions, but this world famous institution is still very much in a state of crisis. It's being torn apart from within as two men battle fiercely to control it.

The opponents are very different people. Anatoly Iksanov is a long- serving bureaucrat. He's been general director of the Bolshoi Theater for more than 12 years. Nicokolai Tsiskaridze is one of the Bolshoi's principal dancers and a super star of the ballet world. Tsiskaridze tells me he's fighting for his job and the future of the Bolshoi.

NIKOLAI TSISKARIDZE, BOLSHOI PRINCIPAL DANCER (through translator): If they fire me, Tsiskaridze, the most famous artist, it means evil will completely win.

BLACK: The bitterness between these men became very public in January after someone threw sulfuric acid in the face of the Bolshoi's artistic director, Sergei Filin. Police always suspected it was connected to his work. Tsiskaridze was interviewed. He's not secret he and Filin don't get along.

But another dancer was arrested, Pavel Dmitrichenko. He's confessed to organizing the attack, but says Filin was only supposed to be beaten and he was shocked when he heard about the acid.

Iksanov, the general director, said the attack is the result of a lawless atmosphere within the dance company created by Tsiskaridze.

TSISKARIDZE (through translator): There I dare to say any nasty thing to give the perception I could be involved in a criminal case.

BLACK: Tsiskaridze says Iksanov has been trying to get rid of him ever since he criticized the Bolshoi Theater's $760 million renovation. He says other dancers were asked to sign a letter against him. He says his students are punished by being overlooked for important parts. And he's now received official warnings for speaking publicly without the theater's permission.

TSISKARIDZE (through translator): I don't work in a secret organization where you cannot divulge. I am entitled to my opinion.

BLACK: His opinion is President Vladimir Putin should step in to settle this and fire Isksanov. Tsiskaridze says he's ready to take up the job if he's asked.

TSISKARIDZE: The president himself should get involved, because the Bolshoi is the face of the country. This is the flagship of Russian art. A bureaucrat who has no musical education cannot be allowed to get even with a dancer.

BLACK: Iksanov dismisses Tsiskaridze's allegations. And he's not ready to leave the Bolshoi.

ANATOLY IKSANOV, BOLSHOI GENERAL DIRECTOR (through translator): If Tsiskaridze thinks he can have the theater that's his personal matter. I don't think he can, because you need a few more qualities than just scandalousness and fame.

BLACK: Both men are said to have support from different factions within the government, but so far President Putin hasn't declared any view on the rivalries which are steadily tearing away at the credibility of one of Russia's most iconic international brands.

Phil Black, CNN, Moscow.


LU STOUT: You're watching News Stream. And after the break, deadly storms strike the United States. Some of nature's destructive power has been caught on camera. We'll take you to one hard hit town.


LU STOUT: It's Friday night here in Hong Kong. And you are back watching News Stream.

Now deadly storms in the United States, let's get more on the aftermath and also the forecast ahead with Mari Ramos. She joins us from the World Weather Center -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, Kristie, thanks. You know the battle lines were drawn earlier this week just kind of setting us up here in the U.S. for some pretty intense weather. We had very warm conditions out in the eastern U.S. and then cold air that was coming in across the west. So right there in that middle area across the central plains that's where we saw the strongest storms. But those have been marching on across over toward the east. And just even last night here across the southeastern U.S. this is amazing. Along this region, we had over 9,000 lightning strikes in just a period of 24 hours as those strong storms were rolling in.

But here in Atlanta, we were relatively lucky, because most of those storms died out -- we had intense lightning and rain and everything, but the tornadoes kind of stayed back over toward Alabama and in Mississippi. And it is in Mississippi where we had one of those intense tornadoes and our own CNN's David Mattingly is there with a report with the latest on the situation there -- David.

MATTINGLY: Yes. What we're seeing here is what we've seen from this storm both deadly and immense, leaving a trail of destruction hundreds of miles long.


UNIDENTIFIED MALE: That's where the worst damage is.

MATTINGLY: For the second straight day, severe weather, menacing more than a half dozen states. The hardest hit, Mississippi. This tornado caught on video. In one county, one person was killed, five were injured. In one rural area there was a path of destruction at least 30 miles long, extended into West Alabama.

UNIDENTIFIED FEMALE: I was cleaning up the spot where I'm fixing to put another mobile home and I went home to take me a quick bath and I heard the siren going off and that's when I jumped in my clothes and I come on out the house quickly.

MATTINGLY: The storm system swept across the southeast, knocking out power to thousands, toppling trees and damaging homes. Into the night, watches and warnings, storm damage all the way into Georgia.

UNIDENTIFIED MALE: I've lived up here about two years. This is about the third or fourth one that come through this area, so we just seem to be in a topographical situation here where the storm has come right through here. And it's very, very powerful. This one is pretty impressive just the way it just threw the metal around up in the trees.

MATTINGLY: The southeast accustomed to severe storms is emerging from a colder than normal spring. These storms, a sign that the season is heating up fast.


MATTINGLY: It's not unusual to see about 100 tornadoes in the United States in the month of March, but because it was so cold this year there were fewer than 20. So now here we are in the month of April, it is definitely heating up and being much more violent than we normally see -- Mari.

RAMOS: You know, David, looking at some of the damage there behind you, are people -- do you think people were prepared there to, you know, waiting for this storm that they have adequate warning, do you think, to maybe be able to get out of the way in this case?

MATTINGLY: This is a very rural area. And the homes that they live in, house trailers are not very substantial. So when a tornado hits in the area, unless they have a storm cellar to go to, the home that they're in, the trailer that someone might living in like this, is not going to provide them with very much protection at all. There was some luck that this tornado hit in a very sparsely populated area killing one person, injuring five. It could have been so much worse had it been in a more densely populated area.

RAMOS: Well, I'm glad to see that the weather has cleared there. And that is CNN's David Mattingly reporting to us from Mississippi, that particular town hit by a tornado just yesterday.

Now, something really interesting that we heard from David's report there is, you know, when we talk about -- about tornadoes, Kristie, we usually talk about tornadoes, the tornado alley being over here near Oklahoma and Kansas across the central part of the United States, but there is a secondary tornado alley, so to speak, that has emerged in the last few years across the southeastern U.S. and it does cover Mississippi, Alabama and northern Georgia, southern parts of Tennessee and people are not as aware. So the housing is not as prepared and most people do not have storm cellars, as he mentioned.

As far as the forecast, that line of storms will continue moving toward the east throughout the day today, very heavy snowfall across northern -- the northern edge of this weather system, including places like Montreal and back over toward Toronto and over to the Canadian maritime, but everybody else will be getting some rain, heavy rain at times moving into New York City by this afternoon. The risk for severe weather, very small now. It will be across portions of the Outer Banks of the Carolinas. And everybody else finally starts getting a break from mother nature -- Kristie, back to you.

LU STOUT: All right, good news ahead, but it's incredible that very long, line of storms cutting right across the United States. Mari Ramos there, thank you.

You're watching News Stream. And coming up right after the break, the new robotic hand set to revolutionize the lives of amputees.


LU STOUT: Now these days, our smartphones can do some pretty impressive things to help make our lives easier, but sometimes the technology in our devices has the power to be life changing. In a CNN exclusive, Dr. Sanjay Gupta meets the man whose bionic limbs are operated in part by his iPhone.


DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: March 1, 2008, that was the day that life, as Jason Koger knew it, changed. The husband and young father was riding his four wheeler when he came in contact with a downed powerline. Next thing he remembers, waking up in the hospital three days later.

He was alive, but both his hands were gone. They'd had to be amputated.

But Koger didn't let that new reality get him down. His focus immediately, making life with prosthetic as normal as possible. Five years now after the accident, Koger is embracing another first. He's the first double-hand amputee in the world to receive prosthetic hands that can be controlled with a mobile application. This is part of a new wave in prosthetic technology. The eye-limb ultra revolution are now available to the masses.

The UK based developers say it is the closest thing to a real human hand. Unlike most conventional prosthetics, this hand boasts five individually powered finger including a fully rotatable thumb. The new app technology allows for 24 additional grip patterns, movements that many of us take for granted like this, a tripod grip to pick up a pen.

The skin over the prosthesis helps double amputees like Jason use the app. And he can even customize grip patterns to use tools like his electronic grill.

Dr. Sanjay Gupta, CNN, reporting.


LU STOUT: Incredible innovation there.

Now I want to take you back to the Korean Peninsula and the tactics of two very different Korean men. Now for weeks now, North Korean leader Kim Jong-un has been using threats of war to get the world's attention and according to analysts, secure the support of his own people. But just a few kilometers south of Pyongyang, there's Psy who gained the attention and support of millions around the world with his music video Gangnam Style. And now Psy released his new single today. The music video will be unveiled on YouTube tomorrow. His concert at Seoul's World Cup stadium will also be screened live. And despite the threat of a missile launch by North Korea, more than 50,000 fans are expected to attend and millions more are expected to watch it online.

It seems despite the threats and tension, this show will go on.

And that is News Stream, but the news continues at CNN. World Business Today is next.