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Oddsmakers Bet On David Moyes To Succeed Sir Alex At Manchester United; Former Pakistani Prime Minister's Son Kidnapped; Sony Posts First Profitable Quarter In Five Years; South Korean Students Implicated In Huge SAT Cheating Scandal

Aired May 9, 2013 - 08:00:00   ET

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


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

Now the son of Pakistan's former prime minister is kidnapped on the final day of an election campaign filled with violence.

The man accused of kidnapping three women and holding them for a decade is due in court this hour.

And electronics giant Sony posts its first annual net profit in five years.

The last day of campaigning in Pakistan's landmark election has been marred by the kidnapping of a candidate. Gunmen grabbed the son of former prime minister Yousuf Raza Gilani, that's according to the abducted man's twin brother.

Now it happened on the way to a rally in the city of Multan. Ali Haider Gilani was running for the Punjab provincial assembly.

Now it is unclear who is behind this attack, but the Pakistani Taliban have been targeting parties standing in Saturday's election.

Let's bring in Saima Mohsin live from Islamabad. And Saima, any more details on how Gilani's son was taken?

SAIMA MOHSIN, CNN INTERNATIONAL CORRESPONDENT: Kristie, well he is a candidate in the south of Punjab in Multan, which is his father's stronghold too. He was on the way to an election rally. This is the last day of campaigning here in Pakistan. When we understand two gunmen came up to him and the group he was traveling with, they fired several times. They have killed two people, injured at least eight others, and they snatched Ali Gilani. And we don't know where he's been taken. No one has claimed responsibility so far. But this is just another incident in a long run of incidents in election violence that's been going on here in the run-up to the election.

We've had targeted assassinations of politicians. We've had campaign offices bombed.

I traveled to the city of Peshawar where -- which was one of the worst hit cities in Pakistan.

(BEGIN VIDEOTAPE)

MOHSIN: Two more graves, a family in mourning in this bloody election campaign. Saadi Khattak (ph), a candidate for a secular party the ANP had received death threats that told his family he would still stand for election for Pakistan's national assembly. He was gunned down while leaving Friday prayers in his constituency in Karachi.

His son Aml (ph), just six-years-old was caught in the crossfire. 13- year-old Shahid was shot in the leg as he ran for safety.

SHAHID KHATTAK, SON OF ASSASSINATED POLITICIAN (through translator): These attackers are cruel people. They shot my father 16 times and put six bullets in my little brother's body. They have no mercy. Why did they kill these angels? Don't you think they are cruel?

MOHSIN: I met his family at their village close to Peshawar. His widow tells me, "I heard the gunfire and I thought to myself my god, what has happened? Then my daughter Aqsa (ph) came and told me that dad's been shot. I collapsed. Then I heard there was no hope of my husband and young son surviving. I was going through heartache and torture."

"I'm in pain day and night," his mother says. "I can't stop thinking about my son. I wish I had died with him. I am proud of my son for standing up for his rights and for his party."

(on camera): The Taliban had threatened secular and liberal parties against campaigning and they've kept their promise. They've assassinated politicians and killed and injured hundreds of innocent people in a bombing campaign.

GHULAM AHMED BILOUR, ANP CANDIDATE (through translator): Our hands are tied. We can't hold rallies. WE can't even hold meetings with our political workers. How are we supposed to campaign?

MOHSIN: Ghulam Ahmed Bilour's party and family have been targeted for standing up to the Taliban. And the group claims that elections serve the interest of infidels. His son was killed in election violence. And the Taliban assassinated his brother. A suicide bomber targeted him during an election rally last month. He survived, but 15 others were killed.

BILOUR (through translator): Two coffins have already left this house. And there was almost a third funeral, mind. But we will continue to defend Pakistan and fight for the constitution.

MOHSIN: Other liberal and secular parties are also feeling the impact of the Taliban's violence campaign. MQM campaign offices across the southern city of Karachi have been bombed. The Pakistan People's Party has decided not to hold any major rallies saying they won't risk innocent people's lives.

Facing death in the pursuit of democracy. For Pakistanis, this is an election where much is at stake.

(END VIDEOTAPE)

LU STOUT: And that was Saima Mohsin reporting there. She joins us live from a campaign rally there in Islamabad. And Saima, can you tell us more about the mood among the people of Pakistan? As you shared with us just now in that report, the election has been marred by violence, by attacks, news of this kidnapping of Gilani's son. But is there hope that this vote coming up could change the situation in their country?

MOHSIN: Yes, there is Kristie. It is remarkable as you say. It's been marred by violence. It's been dubbed one of the bloodiest campaigns, but simultaneously, it's being dubbed one of the biggest and best yet. We've got more people registered to vote. 36 million new voters, in fact. We've got more polling stations, there's a lot of encouragement going on for people to come out and vote, because this is the first time potentially that Pakistan could see one democratic government completing a full term, handing over to another democratic government.

So there's a lot of excitement about this. It's -- there is a lot of sadness about how the election violence that's marred the atmosphere. So never has the term mixed feelings been more apt, really, for Pakistan, because people are keen to get out and vote and use their power to vote. And that word you've used changed. That is, of course, one of the slogans of the party that's setting up right behind me, that is Imran Khan's, that is the last day of campaigning.

All of the parties, PTI here, PMLN, PPP, ANP, they're all out campaigning and canvasing as much as they possibly can until midnight tonight -- Kristie.

LU STOUT: You're at the site of an upcoming Imran Khan rally. What can you tell us about the condition of Imran Khan and can he turn the public's sympathy about that terrible fall he suffered into votes?

MOHSIN: That's the big question now, isn't it, Kristie? He is a very popular politician. He's obviously a very famous man. He was once a very popular cricketer, but he couldn't rest on those laurels, of course, but he's shown his mettle as a politician recently. And then we had that tragic accident.

Just to update you on that, doctors are telling us that he is well. They are hoping he'll make a full recovery, but that is pretty miraculous, as they say, themselves. He suffered four fractures, one to his neck, to his ribs, and two crucial fractures to his spine.

But he won't be here on stage tonight. We are waiting, perhaps, for a video link from hospital. So everybody is waiting to see if he will appear. But there will be a big election rally here. And, yes, people are saying that perhaps this time around the sympathy votes will be with Imran Khan.

Of course, last time, it was with the PPP after Benazir Bhutto was assassinated and they formed a government.

LU STOUT: All right. Saima Mohsin with the very latest from the campaign trail there in Pakistan. Thank you.

Now authorities in Bangladesh have found more bodies in the rubble of a collapsed building. Officials say the death toll now stands at 912. Now crews have been combing the site of the cave-in for more than two weeks. The building, it housed five factories of garment workers, mostly women and girls.

Now the bodies are being kept at a nearby school until they are identified. It is a grim task that grows more difficult by the day.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): We found the body of my daughter-in-law, but now another family has claimed the same body as theirs. We recognized her by her dress. It is absolutely her. But the authorities are not giving us the body. We have been searching for the body for the last 15 days.

(END VIDEO CLIP)

LU STOUT: And now there is a new stain on Bangladesh's textile industry, a fire in a clothing factory late on Wednesday killed at least seven people, including the owner and a police officer. It's not clear how the fire started.

Now turning now to the U.S. where the man accused of kidnapping these three women and holding them against their will for a decade is due to appear in court this hour. We'll bring that to you live when it happens.

And meanwhile, we are learning details about what happened during the time the women were locked away.

Now according to a police report, one of them was forced to deliver another's baby. Pamela Brown has the latest from Cleveland, Ohio.

(BEGIN VIDEOTAPE)

PAMELA BROWN, CNN CORREPSONDENT (voice-over): The initial incident report obtained by CNN spells out a number of the horrid details. Amanda Berry's baby was born in a plastic pool delivered by Michele Knight. The report also says that when the baby was born, she stopped breathing and Castro told Knight if the baby died he would kill her.

Amanda berry told police the baby's father is the suspect, Ariel Castro. Michele Knight says she was pregnant at least five times by the suspect, each time forced to abort the baby by starvation and by Castro repeatedly punching her in the stomach. The women told police that none of them were ever treated by a doctor while in captivity.

When police entered the home Monday, no one was found in the basement, but as an officer neared the top of the stairs and yelled Cleveland police, the report says Michele Knight threw herself into his arms. Then DeJesus rushed out of the bedroom and also threw herself into the cop's arms.

UNIDENTIFIED FEMALE: We found them. We found them.

BROWN: A law enforcement source tells CNN that Amanda Berry had hit her breaking point that she was desperate to get out of the house on Seymour Avenue. Why was she able to escape now after more than ten years in captivity?

UNIDENTIFIED MALE: Something must have clicked and she saw an opportunity. And she took that opportunity and I said it the other day and I'll say it today, that, you know, she is the true hero.

BROWN: That same source says the other two women, Gina DeJesus and Michele Knight, could also have run, but chose not to even though they were not bound and that decision we reflected the women's state of mind. The source went on to say the women relied on each other for survival and did interact though they were mostly kept in separate rooms. They only left the house twice.

UNIDENTIFIED MALE: We were told that they left the house and went into the garage in disguise. So those are the two times that were mentioned or that they can recall.

BROWN: The homeowner, 52-year-old Ariel Castro, was charged with kidnapping and raping the three young women. He's also charged with kidnapping Berry's 6-year-old daughter who was born in captivity.

UNIDENTIFIED MALE: I just signed criminal complaints charging Ariel Castro with four counts of kidnapping and three counts of rape.

(END VIDEOTAPE)

LU STOUT: And that was Pamela Brown reporting. Again, the suspect Ariel Castro due to appear in court within the hour.

And now an update on a court case that has captivated Americans for months. On Wednesday, a jury in the U.S. state of Arizona found this woman Jodi Arias guilty of killing her ex-boyfriend.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Yes!

(CHEERING)

(END VIDEO CLIP)

LU STOUT: And that was the crowd of hundreds outside the courthouse cheering after they learned the verdict. Now Arias was convicted of first degree murder, but in her first interview after the verdict she remained adamant that the crime was not premeditated. Now she could now be given the death penalty.

Arias actually says she would prefer that over a life sentence.

And now an apology for a technical error that you saw just a few minutes ago. It -- an inappropriate moment. We showed our correspondent Saima Mohsin giving a thumbs up for an audio check that was unintentional. And we apologies for that error.

Now you're watching News Stream. And still ahead here on the program, will this be the next man to lead ManU? Now bookies are betting on David Moyes as the new boss. We'll go live to Manchester.

Plus, Sony is back in the black for the first time in five years, but it may not be a sign of a solid turnaround.

And students in South Korea are known for studying hard, but now they've been tarnished by a widespread cheating scandal. Stick around.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

And the search is on for the new manager of Manchester United. On Wednesday, Alex Ferguson said that he will retire after almost 27 years at the club, so how will they replace the fiery and successful Scotsman? Well, by replacing him with another Scottish manager.

Everton's David Moyes is widely expected to be named as Alex Ferguson's replacement. But can he handle the job?

Now let's go live to England now. World Sports Amanda Davies is outside Old Trafford, Manchester United's home stadium. She joins us now. And Amanda, is David Moyes the right man to take charge of the club?

AMANDA DAVIES, CNN SPORTS CORRESPONDENT: It's an interesting question, Kristie. If you listen to the odds and the speculation, then, yes, he is definitely the man to take over from Sir Alex Ferguson at Old Trafford here. But I have to tell you we are very much playing a waiting game here today. It's just after 1:00 here in Manchester. And the shutters, frankly, have gone down. The Everton team haven't been training this morning. We've heard nothing out of them from their complex today.

In terms of Manchester United, just to give you some kind of indication of how much interest there is on this, how many people are making phone calls trying to find out what is going on? The Manchester United director of communications Phil Townsend, his mailbox on his telephone is now full and not accepting any more messages.

But what we have heard out of Old Trafford is they're not going to be holding their traditional prematch press conference either today, Thursday, or tomorrow Friday ahead of their weekend game at Swansea. Normally, a couple of days ahead of a Premiler League match we would hear from the manager Sir Alex Ferguson.

Some people are suggesting that's because Sir Alex doesn't want to speak to the media, but I have to say to me it just seems that it's very much indicative of the situation that we're in that there is still a lot of detail left to be ironed out, the forms still need to be filled in, the contract terms still need to be agreed between Manchester United and Everton and of course between David Moyes and Manchester United.

He has still got six weeks left on his contract at Everton. He won't want to leave on bad terms, because he's been at Everton for 11 years.

In terms of what he would bring to the post here at Manchester United, though, he is seen as a manager who has very much similar views to Sir Alex in terms of investing for the long-term in a football club from all levels, from the youth level right up to the top, the board room, the branding of the club.

And it's a very interesting point how you follow a manager as great as Sir Alex Ferguson. And this is the view of a former United legend Denis Law.

(BEGIN VIDEO CLIP)

DENIS LAW, FRM. MANCHESTER UNITED STRIKER: The thing is who takes over from Sir Alex Ferguson, probably the most successful manager of all- time. Who takes over? Difficult job for anybody. The good thing about it is that he's left (inaudible). He's left Manchester United in strong position, the team, the club, the stadium, the training facility, he's left. So although there will be the transition for somebody coming in will be difficult, it won't be so difficult because you'd been left with a very good team.

(END VIDEO CLIP)

DAVIES: You have to say, Kristie, the club is in a significantly better place than it was when Sir Alex took over 27 years ago nearly in 1986. Then they were 13th in the all first division, losing to the likes of Alderman, Coventry, and it was Liverpool sweeping the board in terms of domestically and European success.

Sir Alex, of course, thought -- said he was going to retire back in 2002, but then changed his mind because he felt United wasn't in a good enough state to move forward without him. So the fact that he's made this decision now with the club just about to celebrate their 20th Premier League, or 20th league title, shows you how he feels the club will be able to carry on moving forward.

LU STOUT: That's right, how do you replace the irreplaceable? Sorry, if I could say it. It's a tough question.

Amanda Davies joining us live outside Old Trafford, thank you.

Now the Japanese tech giant Sony has accorded its first annual profit in five years and made $458 million in 2012. Now you might expect the company's profits to come from products we all associate with Sony like the Playstation, but Sony's games division along with the departments that make Sony's cameras, home entertainment and mobile products are all losing money.

Now instead, it is products like these that help Sony edge into the black for the first time since 2008, movies like The Amazing Spider-Man and the James Bond film Skyfall boosted income for Sony Pictures Entertainment. The company's music division also managed to make money thanks to best selling albums like Justin Timberlake and the British boy band One Direction.

But it is Sony's less glamorous and less well known interests that are its most profitable. Now Sony operates banking and insurance services in Japan. And its financial services arm made $1.5 billion 2012.

Now Sony is back in the black. It intends to stay there. The company issued an optimistic outlook for the year to come.

Diana Magnay is following Sony's financial fortunes from Tokyo.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: They do expect an increase in sales over the coming year and a net income for 2014 of half a billion hoping, really, that the Xperia smartphone, which has put Sony up in the category of the sort of more expensive smartphones that has been dominated by Samsung and Apple, that's done very well since it was launched back in January in Las Vegas. And so they're hoping to sort of continued strong sales in the smartphone division.

Also to be able turn around the struggling TV business, which has been making losses for eight years now. And also, of course, at the end of the year you have the launch of the Playstation 4, although Sony says that any profit, any sales will probably be offset by the money it'll have to put into R&D and marketing. But certainly that is something that Sony gaming fans will be looking forward to over the course of the year ahead.

Diana Magnay, CNN, Tokyo.

(END VIDEOTAPE)

LU STOUT: Now some business executives can be a little reticent around the media, but Huawei CEO Ren Zhengfei takes that to a whole new level. He has been at the helm of the Chinese telecommunications company for two-and-a-half decades, but in all that time he has never given a media interview until now.

Now Ren spoke to reporters in New Zealand this Thursday after Huawei won a contract to build a mobile telecoms network there. The Shenzhen based company has been shut out of other markets, including Australia and the United States.

U.S. lawmakers are worried that data carried on Huawei networks could be intercepted by Chinese intelligence, but Ren played down those concerns, suggesting that jealousy might be behind the U.S. disapproval.

Now he told the National Business Review, quote, "our business is just like building pipes. Our pipe carries the data and information traffic. If the water running through the pipe is polluted, I think it is not the pipe that should be banned."

Now take a look at this video from Venezuela. Now it looks like a huge party scene, but it's actually a prison.

Up next right here on News Stream, we'll tell you what's apparently going on inside.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Coming to you live from Hong Kong, you're back watching News Stream. And right here next to me, this is a visual version of all the stories we have in the show today. And we started with more violence in the final day of campaigning in Pakistan's election. And later on, we'll go on board with the patrol looking for pirates off the coast of Somalia, but now let's go to Venezuela where inmates at a prison have apparently started their own disco.

Now Venezuela's government is denying the report, but as Rafael Romo tells us, this prison has a reputation of being more of a party scene than a correctional facility.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN INTERNATIONAL CORRESPONDENT: A picnic-like atmosphere with people playing in the pool under the sun, but this is not a park or recreational facility, it's one of the largest prisons in Venezuela.

Welcome to San Antonio Prison, located on Venezuela's Margarita Island, also home to a popular beach resort.

Carlos Nieto Palma, human rights advocate, says San Antonio has become a recreational facility where you can find anything from gangster murals to weapons, drugs and alcohol. They're seen in cockfighting rings. Nieto Palma says the inmates recently had a grand opening for a discotheque with capacity for 600 people.

He learned about the night club after getting this invitation on his cell phone.

CARLOS NIETO PALMA, HUMAN RIGHTS ADVOCATE (through translator): This invitation talked about a discotheque with stage lights and LED screens. It also talked about a party lasting until sunrise where there would be bad girls with toys to play with them. You can then assume that they also had drugs, alcohol, and other things.

ROMO: This is not the first time conditions at the San Antonio Prison have raised eyebrows. A New York Times report in 2011 called the prison a Hugh Hefner inspired flesh pot.

Carlos Nieto Palma, who has been at San Antonio several times says the prison is actually run by Teofilo Rodriguez, a convicted drug trafficker known as El Conejo, or The Rabbit.

NIETO PALMA (through translator): The state hasn't been able to do anything against them, in spite of the multiple statements made by the minister of prisons vowing to end the mafia's end of power.

ROMO: He even points to this picture of Venezuelan prisons minister Iris Varela posing with The Rabbit, showing how much clout the gangsters have.

CNN reached the Venezuelan minister of prisons. In response to the discotheque claim, a spokesman said, "that's a lie. Someone came up with that lie, because they were trafficking drugs inside the prison and we ruined their business. We do not respond to lies."

(on camera): As bad as this might seem, San Antonio is in fact one of Venezuela's better prisons with a lower murder rate than other facilities where overcrowding can be at dangerous levels. Violence is all too common. Last year along, nearly 600 people died inside Venezuelan prisons, according to Human Rights Watch.

(voice-over): But at San Antonio, hardcore criminals seem to have free access to entertainment and women, while a pool awaits those ready for a splash under Venezuela's tropical sun.

Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

LU STOUT: All right. We're going to take you live now to Cleveland, Ohio where the suspect in the kidnapping of the three women is appearing in court. This is the first court appearance of Ariel Castro, the 52-year-old suspect accused of kidnapping three women and holding them against their will for a decade. Let's listen in.

UNIDENTIFIED FEMALE: Mr. Castro would like to plead no contest to this open container charge. I'd like to point out for the record that this is the only charge that this gentleman has. He's been in jail four days. I would request credit for the four days that he has served. (inaudible) $100 in costs and credit for four days. thank you.

UNIDENTIFIED MALE: Onil Castro, charge from 2001, open container. How do you plea?

UNIDENTIFIED FEMALE: With respect to Mr. Onil Castro, this case is 12 years old. They're minor defenses (inaudible) dismiss one...

UNIDENTIFIED FEMALE: Your motion (inaudible).

UNIDENTIFIED FEMALE: And I'd like to also point out for the record that these are the only charges that this man has, two minor misdemeanors from 12 years ago, nothing else.

UNIDENTIFIED FEMALE: Thank you.

LU STOUT: OK. Just then, we heard from the lawyer representing the two brothers of Ariel Castro, the two brothers have not been charged with a kidnapping. Ariel Castro is stepping forward. Let's listen in.

UNIDENTIFIED MALE: Ariel Castro charged with kidnapping and rape on one charge, kidnapping and rape on the second, kidnapping and rape on the third, and kidnapping on the fourth.

UNIDENTIFIED FEMALE: With respect to Mr. Castro, he is waiving examination on each case. With respect to bond on Mr. Castro, Mr. Castro is 52 years old. He's lived in the area for 39 years. He is on unemployment compensation. And to the best of my knowledge, he has no convictions for felonies or serious misdemeanors.

UNIDENTIFIED MALE: Good morning, your honor.

UNIDENTIFIED FEMALE: Good morning.

UNIDENTIFIED MALE: Brian Murphy, prosecuting attorney, Cuyahoga County prosecutor's office for the record. I just would like to say that the charges against Mr. Castro are based on premeditated (inaudible) decisions to snatch three young ladies from Cleveland's west side streets.

He used whatever assault (ph) -- gratifying self-serving way he saw fit. Two of the victims incurred a horrifying ordeal for more than a decade. A third for a close to a decade, and the ordeal eventually resulted (ph) in a little girl believed to have been born to one of the women while in captivity.

And also along with captivity, there were subject (ph) to (ph) repeated beatings, they were bound and restrained and sexually assaulted. Basically never free to leave this residence. Just as suddenly, unexpectedly and quite frankly, as inexplicably as they disappeared, they reemerged thankfully, miraculously three days ago, from the home of Mr. Castro. This home served as Mr. Castro's residence, and a prison to these three women and eventually that child.

Today, the situation's turned (ph) your honor. Castro stands before you a captive -- in captivity, a prisoner. The women are free to resume their lives that were interrupted, and also with the promise and the hope that justice will be served. To ensure that justice is served, to protect the victims and the community that Mr. Castro manipulated and deceived. The state is asking bond be set at $5 million (inaudible). Thank you.

UNIDENTIFIED FEMALE: Thank you.

MURPHY: And also it is ordered (ph) that he have no contact with the victims or their families. Whether he's out on bail or not.

UNIDENTIFIED FEMALE: Thank you very much.

Bond will be set at $2 million on each case. Two million dollars cash assurity (ph) on each case. Thank you very much.

MURPHY: You're welcome, your honor.

LU STOUT: OK, just then we witnessed Ariel Castro's first court appearance against Ariel Castro. He is the 52-year-old suspect accused of the kidnapping and rape of three women, three women who were held against their will for about a decade in his home. Just then you saw him in that courtroom, his head bowed. He did not appear to make any contact with anyone in that room, including the moment when his lawyer asked him the question and the lawyer announced that they will have $2 million bond on each case.

That is the very latest coming out of the Ohio kidnap investigation.

Now, the headlines. Let's take a look first at the story in Pakistan. News of a kidnapping there. The son of Pakistan's former prime minister Yousuf Raza Gilani has been abducted by gunmen on his way to an election rally. Ali Haider Gilani, he was kidnapped in the city of Multan on the final day of campaigning before Saturday's general elections.

Now the victim's brother told CNN two people were killed when the gunmen opened fire.

Now bodies are still being found in the rubble of a collapsed factory building in Bangladesh. Officials now say some 912 people are known to have died. It is the deadliest industrial disaster in the country's history.

And Greece has released new unemployment figures that show how hard government austerity measures are hitting ordinary people. Now youth unemployment rose to an unprecedented 64.2 percent in February, that is the highest rate in Europe. 27 percent of the workforce as a whole are unemployed.

Now these are just a handful of the millions of civilian victims of Syria's brutal civil war forced to flee their homes and seek shelter in refugee camps. And many have thrown themselves on the mercy of neighboring countries. The United Nations refugee agency, the UNHCR says 500,000 Syrians have left the country ni just the past two months. And that brings the total number of refugees who have fled Syria to more than 1.4 million. Let's see how that number breaks down among Syria's neighbors.

Jordan and Lebanon have each taken in around 450,000 refugees, while 324,000 people have headed across Syria's northern border into Turkey. 144,000 refugees have traveled east into Iraq. And 62,000 others have sought shelter in Egypt.

Millions more have left their homes and remained within Syria's borders amid a deteriorating security situation.

And Fred Pleitgen brings us their story from Damascus.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Syria's civil war is engulfing more and more of this country, and an increasing number of civilians are feeling the effects. Many forced to leave their homes and now dependent on humanitarian aid.

This family recently arrived at this shelter in Damascus.

"We came from Zamalca (ph)," she says. "And the situation there is awful. We cant' live there. But we also can't afford our own place here, so the shelter took us in."

The shelter has a food distribution center run by the Syrian Arab Red Crescent and the United Nations World Foot Programme. The aid packets cover the basic needs -- food, utensils, and toiletries, but the amounts are barely sufficient.

(on camera): As the conflict here in Syria drags on, more and more people are becoming displaced. And the United Nations is having increasing difficulty providing all of them with the aid they need to get by.

(voice-over): Aid organizations say more than 4 million Syrians are now internally displaced, reaching all of them is a big problem for the groups.

KATE NEWTON, WORLD FOOD PROGRAMME: We are being hindered in some areas of the country simply because we can't move around easily. Some of our convoys are being attacked. The other (inaudible), we have a funding need of $19 million every week now between the people who we're feeding inside Syria and the refugees outside the country. And obviously, that's a huge demand from our donors.

PLEITGEN: The violence in Syria's two year old civil war shows no sign of letting up as opposition forces battle the regime of President Bashar al-Assad in an increasingly stalemated conflict, aid donations are simply insufficient. The Syrian Red Crescent's warehouse in Damascus nearly empty.

ABDUL RAHMAN ATTAR, PRESIDENT, SYRIAN ARAB RED CRESCENT: If you can see what has been delivered until now and what is the need it's not cover more than 30 to 40 percent.

PLEITGEN: That makes life for Syria's internally displaced even more uncertain. Driven from their homes, they have to hope there will be aid available the next time they come here.

(END VIDEOTAPE)

LU STOUT: Now Fred Pleitgen is the only western correspondent currently reporting from the Syrian capital of Damascus. He joins us now live. And Fred, have you talked to these internal refugees about what they think about the conflict and the future?

PLEITGEN: Well, most of them obviously don't think that the future is very bright. I mean, a lot of them have just recently had to leave their homes because it simply became too dangerous for them. And quite frankly, a lot of them don't believe that the future will necessarily get any better. I mean, they see a deteriorating situation in their country, and they also see a deteriorating situation as far as being able to get aid. I mean, one of the things that we saw is that it's very difficult to actually get aid to a lot of people here in this country, the United Nations, and the Syrian Arab Red Crescent said for some places it's simply too dangerous for their convoys to go there.

And there's one interesting figure I want to give you, Kristie, for the Syrian Arab Red Crescent to get in the convoy of aid from here to Damascus into Aleppo, they have to negotiate with 341 different rebel factions only around this area of Aleppo, that's how difficult it is to get aid to these people. And then, of course, you still have the violence, you still have the fighting in many places.

So the aid isn't really sufficient, and on the other hand a lot of these people that we spoke to simply don't see an end to this conflict on the horizon, Kristie.

LU STOUT: It's incredible, isn't it, the hurdles and the logistical challenge just to help the people in Syria. And at 4 million, that 4 million number of the internally displaced inside the country.

Now yesterday here on News Stream, we were talking about Syria's internet and phone lines, very crucial to get word out about what's happening on the ground. And we reported on the outage yesterday, is it working again now? What's the status?

PLEITGEN: Yeah, certainly it is working again now. That's one of the reasons why we're actually able to do this live report, because one of the things we need to tell our viewers is that we're not actually allowed to bring any sort of satellite equipment into the country. That's why we have to do all of our live reports via the internet.

Now, of course, for all of yesterday, or the better part of yesterday that was not possible, because the internet down. The provider here in Syria says that was due to the fact that there was a malfunction and a fiber optic cable that is essential to the internet here. And the big problem they had they told us that the area where this happened was actually in an area where there was some fighting.

It's unclear whether the fighting was what led to severing the cable, but it certainly delayed them actually being able to fix it. But they do say it's all back up and running right now. And from what we can tell, it appears as though internet services are indeed back to normal, Kristie.

LU STOUT: All right. And also a question for you about the rebels inside Syria. There are reports that rebel fighters, some of them are defecting to join al-Nusra, this is the jihadi al Qaeda linked group, is this really happening. Is al-Nusra gaining strength here?

PLEITGEN: Well, I mean, that's really a very difficult question to answer. I mean, certainly we have been haering for a very long time that the most potent fighters on the side of the opposition are indeed these Islamist factions. And of those, of course, Jabhat al-Nusra, the Nusra Front is the biggest one.

It's interesting, there was a report that we heard yesterday from several sources also within the Free Syrian Army, or with opposition sources, who said that a senior leader, or perhaps the leader of the Nusra Front had indeed been wounded in an artillery (inaudible)...

LU STOUT: All right, unfortunately the internet is back up and running in Syria but we just lost that connection there via broadband with our Fred Pleitgen reporting live for us from Damascus.

Now let's take you next to the Korean Peninsula. It has technically remained at war for the last six decades after North Korean soldiers crossed the 38th parallel. China fought on their side. And Ivan Watson, he spoke to veterans in Chingchiang (ph) who say they hope peace will prevail over today's tensions.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESOPNDENT: It's been nearly 60 years since U.S. and Chinese led armies fought each other to a bloody standstill on the Korean peninsula.

ANNOUNCER: The Chinese red armies, numbering hundreds of thousands, swarmed over the frontier against thinly held United Nations positions.

WATSON: And every year, there are fewer veterans alive to tell about that brutal conflict.

We found several Chinese veterans of the Korean War at the Hunan Provincial Military Hospital where 80-year-old Duan Keke greets us with a salute, and some candy.

Duan says he was an 18-year-old volunteer soldier when he was sent in 1951 to fight in Korea.

DUAN KEKE, KOREAN WAR VETERAN (through translator): We saw the people of Korea farming the land and being killed by enemy planes. They were suffering. We had to help protect the people of Korea.

WATSON: He tells how he had to charge up mountains into a hail of enemy gunfire carrying explosives to kill well entrenched U.S. and South Korean troops.

Duan says he left Korea in 1953 after he suffered burns on the arm from an airstrike and life threatening bullet wounds to the stomach.

Later that year, both sides signed an agreement that left the Korean peninsula divided and volatile to this very day.

Today, Duan lives in a hospital ward that is decorated with posters celebrating Chinese veterans. During the war, he was not allowed to socialize with Korean citizens.

Some veterans say they did meet American soldiers who were prisoners of war.

"At the time, I had to escort captive soldiers," says Jo Jianciang (ph). "Handling the captives was very dangerous. They might kick you. So I had to tell them to kneel."

The veterans here agree few people in modern-day China have any idea what soldiers suffered during the Korean War.

(on camera): Do you think young Koreans today understand how much you sacrificed?

"What do the Koreans know?" He answers. "Only what the Koreans tell the Korean people."

The Chinese veterans have little to say about the current North Korean government, but it seems they do not hold a grudge against their former American enemies.

Duan's friends nod in agreement when he says the American people are peaceful and they don't want war.

This battle scared veteran fought and bled for Korea and never wants to see war break out there ever again.

Ivan Watson, CNN, Tsintiang (ph), China.

(END VIDEOTAPE)

LU STOUT: Coming up next on News Stream, a CNN exclusive. Our Nima Elbagir goes on pirate patrol with the African Union in what appears to be a winning international effort.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

And let's return to our video rundown now. Earlier, we looked into the frontrunner to replace the revered Manchester United manager Alex Ferguson. In a few moments, we'll tell you why the university careers of thousands of South Korean students hang in the balance, but now let's focus on the battle against pirates and the waters off Somalia.

Now the Gulf of Aidan is known as one of the world's most dangerous shipping channels, but the international group established to tackle the problem says there hasn't been a successful hijacking by Somali pirates in almost a year. That's all due to increased security on board vessels as well as international naval patrols.

Now the African Union is playing a big part in keeping the water safe. And our Nima Elbagir gained exclusive access on board one of their boats.

(BEGIN VIDEOTAPE)

NIMA ELBAGIR: This is the African Union's marine contingent. Every day for the last six years they've patrolled the waters off the coast of Somalia on the lookout for potential threats. And they don't have to go very far to find them.

We've only gone about 30 kilometers up the shore north of the capital Mogadishu and already the patrols come across a suspected pirate base. We can't get any closer than this for security reasons, but this really illustrates how present that pirate threat continues to be here.

Lieutenant Isaac you are in command of this marine patrol, can you talk us through how you get your intelligence? How do you know, for instance, that that back there is an insecure area where there is a pirate threat?

LIEUTENANT ISAAC EWAGA, MARINE UNIT, AMISOM: We do get intelligence information through the Military Intelligence Officer, who see that they consider it, and then we do also get information through the local fisherman.

ELBAGIR: So the fisherman tell you that they've seen suspicious movement, that they've seen pirate crafts here.

EWAGA: Yeah, the boats which they do not know the origin, they normally communicate through intelligence channels.

ELBAGIR: You know that they're on shore and yet they don't come out when you're here.

EWAGA: Yeah, because of our presence here the coastline doing a routine patrol every day. They know we are here and they -- we are capable of doing anything so they do not come on our way.

ELBAGIR: Since May 2012 there have been no successful pirate attacks, but that doesn't mean that there haven't been a fair number of attempts, nor as we just saw, does it mean that there aren't pirates waiting on shore for their window of opportunity. And the African Union told us that as you go further up that coastline there are even more pirate encampments.

The problems of piracy might be felt at sea, but their root causes lie here on land. Until the international community deals with the problems that blight Somalia as a whole, then it's hard to see how there can be a sustainable solution, a long-term solution to the issue of piracy.

Nima Elbagir, CNN, Mogadishu.

(END VIDEOTAPE)

LU STOUT: Now, here something you don't hear everyday, scientists say that they have found a lost continent off the coast of Brazil. Let's get more now with Mari Ramos who joins us from the world weather center. Mari, is this for real?

MARI RAMOS, CNN WEATHER CORRESPONDENT: It is for real. This is actually a very interesting story. And of course something that I would love to tell you guys about.

Let's go ahead and start, first of all, right over here. This is a picture of Earth, of course, you're looking at Google Earth. Here is the coast of South America and here is the coast of Africa.

Well, Kristie, remember how we always look at this map and we kind of think that these pieces kind of fit together? Well, geologists have always -- scientists have said maybe a long time ago Earth was close together. And there is evidence to suggest that Africa and South America million of millions of years ago were actually united.

It's always been a theory. They've never really found anything to actually support this until now. And let me show you why.

Let's go ahead and take a look over here.

Just about 1,500 kilometers of the coast of Brazil in an area right over here that you can even see it on the map in an area that has always been an interest to geologists and to oceanographers because of its geology, because of the way the mountains are formed. It's called the Rio Grande rise. And what we have over here is several mountains.

And they were doing an expedition to see what kind of minerals were found here. And let's go ahead and look at the pictures. This is what it looks like underground, or site under the water.

So several hundred kilometers under the water a robot from the Japanese Marine and Earth Science Agency along with geology department from Brazil found these rocks. And scientists said that when they first saw them they like, hey what are these rocks doing here? The reason they are so rare, Kristie, is because they're made out of granite. And granite is a type of rock formation that we normally find on Earth, on dry land. So to find that kind of rock formation along with that kind of sand that, in particular, that they found there. They say that it is very unusual.

So they did extensive geological tests, extensive chemical testing and they said, yes, this is the kind of thing that you would normally see over land. So they think that this is an area that sank, guess how long ago? 100 million years ago.

Very old indeed. Still there. And they think this may have been part of an island that had remained there for a long time after the continents separated. These are all, of course, still theories. They are going to have to do more research to actually be able to figure out if that is the case or not.

Back to you.

LU STOUT: That's pretty cool. So this underwater bed of granite home to many beautiful species of fish, as we saw in the video just then, could very well be a new continent. Great to see...

RAMOS: Or an old one.

LU STOUT: Mari Ramos -- or an old one...

RAMOS: Pangea.

LU STOUT: Oh. And we know Pangea, the story of that one.

Mari Ramos, thank you. Evidence of Pangea there.

Now three letters, they are known to strike fear into students hoping to attend American universities -- SAT. We'll tell you about a scam to sell the answers to this crucial entrance exam and how it's hurting students in South Korea.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now college entrance exams, they can make or break a student's dreams. But in South Korea the most critical test for American universities has been canceled following allegations of a cheating scandal. Dan Rivers tells us how it leaves thousands of students in limbo.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN INTERNATIONAL CORRESPONDENT: South Korea's education system is so competitive, many children spend evenings, weekends and holidays at cramming schools like this, but amid the clamor to get better grades, it appears some have been cheating in the all-important SAT tests to get into U.S. universities.

(on camera): So far, prosecutors have raided 12 of these cramming schools looking for evidence of cheating. Apparently, one scam involved people traveling from South Korea to Thailand to sit in SAT test a few hours before the same paper was given in South Korea. Of course, it gave students here the advantage of knowing which questions were coming up.

(voice-over): The organizations that run SAT tests in the U.S. have canceled May's SAT test for the whole of South Korea. But at one cramming school not implicated in the scandal, a teacher tells me parents are paying for their kids to cheat.

BYUNG YOON, TUTOR: From the grapevine, I've heard maybe tens of thousands of dollars for access to these tests. A lot of the parents know where to go. The owner of the Huqyan (ph), or the cramming school would basically say I have access to these certain tests. And so a lot of the parents are actually making the ultimate decision.

RIVERS: At South Korea's most expensive boarding school modeled on an elite school in London, pupils are entirely innocent of cheating, but they're caught up in the aftermath of the scandal all the same.

HENRY KIM, STUDENT: We're getting penalized for the fact that other people cheated or tried to cheat. That could affect my whole future.

RIVERS: The teacher that broke the news to them, Toby Waterson, has helped them make alternative plans to sit the SAT tests abroad.

TOBY WATERSON, TEACHER: I just worry about the tarnish that the Korean SAT centers have received in this whole process. And I worry, therefore, about the university places that are going to be offered to our students.

RIVERS: Students who are under enormous pressure to succeed.

YOON: We get a lot of tiger moms and tiger cubs and that's why all this hyper competition is happening. And that's why people are finding ways to, you know, skirt the system.

RIVERS: And in the process tarnishing honest students who have worked hard to make the grade.

Dan Rivers, CNN, Seoul.

(END VIDEOTAPE)

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

END