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ISIS Assault Continues, Extends To Oil Town Baiji; Working To End Rape As Weapon Of War; World Cup Just Hours Away; What/Who Is Funassyi?; Eric Cantor's Surprise Virginia Primary Loss; Cab Drivers Protest Against Uber

Aired June 11, 2014 - 8:00   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 Islamist militants control Iraq's second largest city, but the government is promising to battle back. We're tracking dramatic

developments in Mosul.

Plus, working to bring an end to rape as a weapon of war. Hear from some of the high profile figures leading the charge.

And, ready or not, the World Cup is just hours away from kickoff.

Iraq's foreign minister says that there will be closer cooperation with ethnic Kurdish forces to try do drive militants from the country's

second largest city Mosul. Now police say militants linked with ISIS, or the Islamic State of Iraq and Syria have also now seized parts of the key

oil town of Baiji. But officials there say its refinery remains in government hands.

Now, up to half a million civilians have been forced to flee the violence in Mosul after ISIS took control there yesterday.

Now the militant group has also been active in parts of neighboring Syria. And with this week's attacks in Iraq, it is clearly gaining ground,

gaining influence.

Nic Robertson has more.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): After just five days of fighting, terrorists now control large swaths of

Iraq's second largest city. Power, water, and phone lines have been cut in parts of Mosul, 250 miles north of Baghdad, where the al Qaeda splinter

group ISIS has seized the important transportation and administration hub. Iraqi Prime Minister Nouri al-Maliki calling it a humanitarian crisis and

asking parliament to declare a state of emergency, calling on men to volunteer to fight.

The speaker of Iraq's parliament urging the U.S. to play a role in supporting Iraq against the terrorist attack and asking for urgent relief

for the displaced by the international community. The voice of a refugee in this video pleading, God help us, as half a million Iraqis have already

fled the city.

JOHN KIRBY, DEFENSE DEPARTMENT PRESS SECRETARY: We're certainly in touch with Iraqi leadership as much as possible, but ultimately this is -

this is for the Iraqi security forces and the Iraqi government to deal with.

ROBERTSON: The fight proving too much for the U.S.-trained Iraqi soldiers. Some reportedly discarding their uniforms, abandoning their

military armed vehicles and weapons, leaving it all to a terrorist group considered more ruthless and brutal than al Qaeda.

ISIS gaining more power and control in a city once held as a successful example of U.S. counter insurgency. Only two and a half years

after American boots left Iraqi soil.

(END VIDEOTAPE)

LU STOUT: Now for more now, our senior international correspondent Nic Robertson joins us live from Doha. And Nic, how did ISIS manage to get

to this level and take over parts of Mosul, Iraq's second largest city?

ROBERTSON: Well, earlier this year, or late last year, they took over two significant cities, or at least one -- at least took over the whole of

Fallujah and part of Ramadi, two significant Sunni cities in the western Iraqi province of al-Anbar. Half a million people fled there.

Prior to that, during the U.S. occupation in Iraq, al-Qaeda in Iraq began to grow. This was the roots for the ISIS of today. They were beaten

back. They didn't go away completely. When the war started in Syria, the civil war started there, they went over the border. They were better

equipped, better trained, better prepared and they had an agenda.

They took control of areas of the countryside and took control of towns. They used those as bases. They were very radical. They attracted

in foreign fighters. This helped make them stronger, this helped -- they used the foreign fighters on attacks in Iraq as well. They've been using

those bases in Syria and in the west of Iraq to get stronger. And that's why they appear to have grown their force, a well maneuvered force, if you

will, tactically into the city of Mosul and also to the town of Baiji to the south.

Strategically as well, cutting the highway where Iraqi government reinforcements to get up to Mosul in the north, Kristie.

LU STOUT: ISIS has grown their forces. They're gaining momentum here. So what can be done now to recover parts of Mosul and to push back

ISIS in Iraq?

ROBERTSON: And it can't be done militarily, that's what we've seen over the past year -- couple of years, really. The prime minister Nouri

al-Maliki has not been able to do that, not been able to retake those towns in al Anbar Province.

The Iraqi government forces fled in advance of these fighters. They were afraid of them. The province around Mosul is very much under the

influence of ISIS as well.

The way forward, and what has worked in Iraq in the past is where the administration will have to coopt some of the Sunni tribal leaders. And

that will mean ceding power to Sunni politicians. And in the heightened and heated sectarian environment in Iraq, Nouri al-Maliki has proved

incapable of trusting the sort of senior Sunni politicians, these senior tribal -- Sunni tribal sheikhs.

Why does he need to bring on on side these tribal sheikhs? Because they will influence their population in the countryside. They will make it

harder for ISIS to operate and help isolate them. This is what defeated -- or helped defeat al Qaeda in Iraq in the sort of 2006, 2007. It was the

U.S. forces with the Iraqi government co-opting the local tribes to fight against al Qaeda then. And this is what Norui al Maliki really will have

to do.

But again the stumbling point for him on that is it means ceding political power to Sunnis, something he hasn't been prepared to do. The

sectarian division makes it harder and harder all the time -- Kristie.

LU STOUT: All right, much needed context there and analysis. Nic Robertson reporting live on the growing threat that is ISIS. Thank you,

Nic.

Now, let's turn to U.S. politics and what some people are calling a political earthquake there. Now Eric Cantor, one of the most powerful

Republicans in U.S. congress has suffered a stunning loss. It's sending shockwaves rippling through Capital Hill and it's giving a huge boost to

the tea party.

Now Cantor, the Republican leader in the U.S. House of Representatives was defeated by this man, David Brat, in Tuesday's contest in Virginia.

Until now, Brat was a relatively little known economics professor. He's got the backing of the conservative Tea Party. But while he predicted that

he would win Tuesday's battle, many thought he had little chance.

Now Brat defeated Cantor by more than 10 points. And he did it, despite being outspent by nearly 10 to 1. Now he and the Tea Party are

looking ahead to November's mid-term election. Dana Bash has the latest on the stunning upset.

(BEGIN VIDEOTAPE)

DAVID BRAT (R), VIRGINIA CONGRESSIONAL CANDIDATE: The reason we won this campaign is -- there's just one reason. And that's because dollars do

not vote. You do.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): An upset shaking Washington and rattling incumbent Republicans to their core. House

Majority Leader Eric Cantor losing his primary to a little-known conservative challenger, economics professor David Brat.

ERIC CANTOR (R), HOUSE MAJORITY LEADER: It's disappointing, sure. But I believe in this country. I believe there's opportunity around the next

corner for all of us.

BASH: The number two Republican in the House was widely considered and preparing to be the next speaker of the House, following John Boehner.

BRAT: Hi, I'm David Brat, and I'm running for the United States Congress.

BASH: Even Brat himself told CNN he didn't think he could pull off a win with a war chest of only $300,000 compared to Cantor's $5 million. But

Cantor learned firsthand that money doesn't buy enthusiasm and the grassroots in his Virginia district were determined to take the

establishment Republican down.

BRAT: Eric Cantor is trying to buy this election with corporate cash from Los Angeles to New York. He's acting as a conservative in public,

while working behind the scenes to deliver open boarders for large corporations.

BASH: Brat's main case against Cantor was support for legal status for illegal immigrant children, the so-called dreamers, and his public pledge

to help the president in doing so.

CANTOR: It is time to provide an opportunity for legal residence and citizenship for those who are brought to this country as children and who

know no other home.

BASH: Cantor is considered one of the most conservative members of the House GOP leadership, but he had been thinking like a party leader, trying

to broaden the GOP's appeal. After the government shutdown that divided House Republicans, CNN learned he admonished his rank and file to unite.

(on camera): You addressed your caucus and basically said, come on, guys, we have to stop eating our own.

CANTOR: Well, I think the message that I was about was saying, look, the differences that may exist between us pale in comparison to the

differences that we have with the president and his policies.

BASH: Dana Bash, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Now, U.S. President Barack Obama says the country should be ashamed it can't adopt tougher gun control laws.

Now his comments come in the wake of a high school shooting near Portland, Oregon. Police say a student used a rifle in the boy's locker

room near the gym, killing a 14-year-old and wounding a teacher.

Now President Obama says something must change.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My biggest frustration so far is the fact that this society has not been willing to take some

basic steps to keep guns out of the hands of people who can do just unbelievable damage.

We're the only society -- we're the only developed country on Earth where this happens. And it happens now once a week. And it's a one-day

story. There's no place else like this.

(END VIDEO CLIP)

LU STOUT: Tuesday's shooting in Oregon is the third in less than a week. Now a Las Vegas couple killed three people on Sunday before killing

themselves. And a Seattle man killed a university student and injured two others last Thursday.

You're watching News Stream. Still ahead in the program...

(BEGIN VIDEO CLIP)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: When the attack happened, the entire village, it cleared out...

(END VIDEO CLIP)

LU STOUT: Fear of Boko Haram has Nigerians pouring across the country's border, but these villagers face another threat once they reach

the other side of the river.

And standing up for the victims of sexual violence. Angelina Jolie leads an international anti-rape conference. She says it is time to punish

the aggressors.

And inside a tent city in Sao Paulo, Brazil, hear from the families determined to keep protesting near a World Cup arena.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories we've got in the show today.

Now we've already told you about the battle for control in Mosul, Iraq. And later we'll take you live to Sao Paulo, Brazil where FIFA's

president could announce he will run for yet another term.

But now, let's turn to an important summit that is taking place right now in London. Its goal is to stop sexual violence during conflict.

Now the statistics are grim worldwide. One in every three women has suffered sexual abuse or violence.

Now the recent gang rape and murder of two teenage girls in India sparked widespread protests. According to official numbers 25,000 people

are raped each year. Activists say the actual figures are likely much higher as many victims stay silent.

In Rwanda, at least a quarter million women survived being raped during the 1994 genocide and that number may be as high as half a million.

Now a global summit aimed at ending sexual violence in conflict is again underway in London. It's happening this week. The actors Angelina

Jolie opened the gathering. And Jolie and the British foreign secretary William Hague will be Christiane Amanpour's guests later today on Amanpour

right here on CNN. And Christiane Amanpour joins us now live from London. And Christiane, thanks for joining us.

Angelina Jolie, we know that she opened the summit already. And during her speech and during her interview with you, what has come through

as her core message about ending sexual violence during war?

CHRISTIANE AMANPOUR, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, it's a really important subject. And she says it's very close to her

heart.

You know, she's been a UNHCR special envoy for several years and so she has seen around the world exactly the impact of not just refugees and

having lost their homes, but the violence that comes as a consequence of that as well. And she told me about how that galvanized her to become part

of William Hague's mission. And he's been doing this for the last several years, too, culminating in this summit here in London.

(BEGIN VIDEO CLIP)

ANGELINA JOLIE, ACTRESS/UNHCR SPECIAL ENVOY: You are moved by someone you meet. And for me, it was -- it was time and again meeting young girls,

boys, and women and men who talked about publicly could talk about all of their pains, but privately would become very emotional and tell me about

the rape and what had happened to them, or that the child they couldn't -- you know they couldn't tell that if the child was a child of rape, or they

couldn't -- if they just simply couldn't function any more and they carried this deep shame and this deep pain, and it was just too many, it was just

one too many where you looked around and think how is it that this -- I meet a girl that's been gang raped by 15 men with pipes and pieces of wood

and she's had fistula and she's had to be sewn back together and she's a child. And nobody is going to be held accountable.

And it was just again and again and again meeting these people and these victims and just -- and the more I would learn about what had been

done on their behalf and who had been convicted. And it was just pitiful. It was nothing.

(END VIDEO CLIP)

AMANPOUR: And, Kristie, accountability and justice is obviously a huge part of this, plus training for militaries and governments and justice

departments in all these countries, that what the aim is.

LU STOUT: And for the British foreign secretary William Hague, you also spoke with him. Why is he adding his political weight in this fight

against sexual violence?

AMANPOUR: Well, he started this. And he brought Angelina on board as he said to me very frankly, because some people won't listen to a British

foreign minister, but they might listen to somebody like Angelina Jolie.

But he says that this is something that's going to be transformative for our century, that stopping the mass epidemic of sexual violence and

rape as a tool of war will also have ongoing impact, for instance, in solving hopefully eventually changing the situation of every violence and

sexism, of domestic violence and sexism as well.

And he says that in all his meetings, all his official meetings, he brings this up. Listen to what he told me about it.

(BEGIN VIDEO CLIP)

WILLIAM HAGUE, BRITISH FOREIGN SECRETARY: It is norm for me when -- wherever I am in the world to be discussing this issue with other foreign

ministers, or prime ministers or presidents and asking them for support, for survivors of sexual violence, to attend the summit, to sign our

declaration, to change their domestic laws.

AMANPOUR: Do they get uncomfortable? I mean, for instance, in the DRC, which is known as the rape capital of the world, they don't even

consider rape in war as a crime it's just something that happens?

HAGUE: Well, I think that first what I found two years ago, as you say, is sudden shock from other ministers that this is one of the top

subjects the British foreign secretary is raising when he visits a country. Some surprise to begin with.

Of course, they're used to it now. And the country like the DRC is now sending ministers to this summit. They are producing plans. They are

taking the subject seriously. The president has discussed it with us. That's at -- this, in itself, brings about change over an agonizingly long

period, of course, but this in itself, us going around talking about it, brings about change.

But we want to see real practical action in many individual countries as well.

(END VIDEO CLIP)

AMANPOUR: And so he also said that the last two days of this summit they're going to have experts, but also ministers talking. And he pointed

out to some results in various countries. In Colombia, for instance, the military there has been taught and undergoes training in sexual violence

prevention. And obviously some military, some UN peacekeepers have been accused of violating the very people that they're being sent to protect.

So that is also a matter for consideration here. And removing any kind of impunity against state actors and other authorities who also engage in this

kind of sexual violence.

LU STOUT: You know, Christiane, it was incredible hearing in that interview segment just then with William Hague, him saying that ministers

from the DRC are there attending the summit. The summit is much more than just about raising awareness, it's about affecting real change in places

that need it.

We'll have to leave it at that, but Christiane Amanpour, thank you very much indeed for sharing your reporting with us.

And do hear more from actress Angelina Jolie and the British foreign secretary William Hague on Amanpour tonight. You can catch the full

interview. It's happening 7:00 p.m. in London, that's 8:00 p.m. in central Europe.

Now all this week we've been bringing you an unprecedented look at the battle against Boko Haram. And now in the third of three exclusive reports

Arwa Damon takes us to a village in Niger just across the border from Nigeria where many have fled to escape Boko Haram's campaign of terror.

(BEGIN VIDEOTAPE)

DAMON: This river marks the border between Nigeria and Niger, a shallow divide between horror and security.

Hadiza Fandu (ph) says she was fleeing a Boko Haram attack on her village in Nigeria when she came across her brother's lifeless body. He

had been dragged out of a mosque, executed, his prayer beads still in hand. She says from the moment she saw him, all she could think was survival.

She escaped with her 10 children to Niger, just a 30 minute walk to safety, joined by others from her destroyed village.

(on camera): Mohammed (ph) fled with 15 of his family members. The river was obviously a lot higher back then, so they came across in boats.

But when the attack happened, the entire village, it cleared out, some of the people making the journey overnight, others hiding in the bush waiting

for daybreak.

(voice-over): This year alone, the World Food Program says Boko Haram's terror campaign has sent at least 25,000 Nigerians fleeing into

Niger's remote Diffa region, around 80 percent of them women and children.

Many fleeing not only because of the repeated violent attacks, but following the kidnapping of over 200 schoolgirls in Chibok fear of the same

fate.

Luckily for them, this is a border in name only.

(on camera): When the refugees first arrived, they were actually given a space to live in outside of the various homes. But then because of

the conditions, the village leaders had a meeting and decided to give people the option of hosting refugee families.

(voice-over): Melebra Umarat (ph) took in an additional three families, making the population of his household jump from 16 to 57.

The youngest born, a refugee, 10-day-old Mohammed (ph) cradled by his grandmother.

For now, aid agencies have been able to meet the demands of Niger's swelling refugee population, easing the burden on villages like this one.

But the hunger season has just began, bringing with it additional hardships and shortages. And with Boko Haram's attacks on the rise in

neighboring Nigeria, few safe havens remain.

Arwa Damon, CNN, Diffa region, Niger.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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

And here in Hong Kong, the relationship in Mainland China is sometimes strained. Now Hong Kong is a special administrative region of China and

operates as an autonomous territory from the mainland. Just one week ago, thousands of people packed the Hong Kong park to hold a candlelight vigil

on the 25th anniversary of China's Tiananmen Square crackdown.

And yesterday, in a move sure to add fuel to the fire, China issued a stern warning to Hong Kong, this quote is taken from the so-called white

paper released by Beijing. It says, quote, "the high degree of autonomy of the KHSAR is not an inherent power, but one that comes solely from

authorization by the central leadership."

Now joining me now for more on what else was in the white paper that was released is our political commentator who joins us often at CNN, Frank

Ching.

Frank, good to see you back here.

You flipped through and read this white paper that was issued by the China state council. What's your read?

FRANK CHING, CHINA POLITICAL COMMENTATOR: I think it's clearly a warning to Hong Kong not to go too far. And in particular, there was one

line in there that talked about the right of the central government to declare a state of emergency in Hong Kong. I don't think they had ever

said that before.

If they declare a state of emergency it means that the People's Liberation Army can come in and take over the job of the Hong Kong police.

I think that that would be the end of Hong Kong as we know it today.

LU STOUT: Why did Beijing feel compelled to release this white paper now?

CHING: I think it's been building up. It's not just the thing or that thing, but over the last several years a number of things have

happened in Hong Kong. Protesters have been waving the British colonial flag. And that is like waving a red rag in front of a bull. And people in

Hong Kong have been calling people from the mainland locusts. And they're saying that there's no room left in Hong Kong left for them, all the

mainlanders that are here. So I think that there has been a lot of tension between people -- Hong Kong people and mainlanders.

And the Hong Kong government is caught in the middle, as it were. And they have had to do certain things like limit milk -- two cans each for a

mainlander coming through Hong Kong.

LU STOUT: Yeah, so many factors have been building up and leading up to the release of this white paper. And when the white paper was released,

it was interesting, it wasn't just released in Chinese and in English, it was released in multiple, multiple language. So was this a message not

just to Hong Kong from Beijing, but to the world?

CHING: That's right. It's like the famous white papers on Taiwan, all in different languages. And I think in this current white paper on

Hong Kong they are warning foreign countries not to use Hong Kong as a base for subversion and not to interfere in China's internal affairs through

Hong Kong.

And in particular, I think that they feel that western countries have been egging Hong Kong's democrats to have universal suffrage (inaudible) to

2017 (ph) and supporting what they call genuine universal suffrage, that is that they reject China's model of universal suffrage (inaudible).

So I think the Chinese government should not be doing these things.

LU STOUT: So will the people of Hong Kong react? Earlier today, I saw a photograph of a protester who was holding a roll of toilet paper,

basically saying this is what he and she, both of them together, think of Beijing's so-called white paper.

How many people in Hong Kong share that point of view, share that disdain? And is that disdain going to come to the fore when the annual

July 1 protest comes around in Hong Kong?

CHING: Well, I think that this white paper may have the effect of getting the various democratic groups in Hong Kong to join forces. They

are pretty splintered right now. But if China puts pressure on them, they may unite in order to work against China.

But I also think that one fact of the white paper is that it erodes the power of the Hong Kong government. I mean if the central government

says I have authority in my hands, it's got to be taking that authority away from the Hong Kong government's hands. And that's not good for the

Hong Kong government.

LU STOUT: All right, we're going to have to wrap it up there. But I know earlier you were talking about mentioning to me you believe this was a

miscalculation on Beijing's part, right?

CHING: I think it will have adverse effects, negative effects.

LU STOUT: OK. We'll see that adverse effect coming to the fore. Frank Ching, political commentator, thank you once again for joining us

here on News Stream. Take care.

CHING: Thank you. My pleasure.

LU STOUT: Now, you're watching News Stream. Still to come on the program, we got one day to go until the World Cup kicks off. A big

announcement is expected shortly from FIFA's chief.

Also ahead, CNN talks to a Brazilian football legend. Do stay with us to get his insights into the players to watch at this year's tournament.

Stick around.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream. And these are your world headlines.

Now authorities say an extremist militant group has taken over parts of Iraq's key oil town Baiji. Now the country's largest oil refinery is

there. We're told it remains in government control for now. The fighters are said to be members of the Islamic State of Iraq and Syria, or ISIS.

Now that is the same group that seized the city of Mosul on Tuesday forcing some 500,000 civilians to flee.

Now a major upset for the U.S. House Majority Leader Eric Cantor, he lost the Republican primary in his Virginia district to Tea Party candidate

David Brat, a political novice. Now Brat won 56 percent of the vote even though Cantor spent 10 times more money on his campaign.

Now thousands of police descended on a South Korean religious commune. They were looking for a fugitive businessman looking for the April ferry

disaster that killed more than 300 people. Now they suspect Yoo Byung-un may have been hiding out there, but they didn't find him.

On the second of FIFA's annual congress, President Sepp Blatter is expected to announce that he will seek a fifth term as FIFA president

today. Now European football delegates want him out after his current term expires next year. They say it has been marked by corruption.

Now Blatter had promised not to run again back in 2011.

Now the World Cup, it kicks off tomorrow with the opener between the home team and Croatia. And with more on the mood in Brazil, Shasta

Darlington joins me now live from Sao Paulo.

And Shasta, I can't believe it just hours away until the World Cup. Brazil getting ready. What is Dilma Rousseff saying?

SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Well, exactly.

There's been a lot of problems here, as we've talked about. So in the midst of all the strikes, the protests and generally low morale, Brazilian

President Dilma Rousseff came out with a last minute plea for people to support the World Cup. She said that the spending is justified. She

pointed out that the $4 billion spent on stadiums is really just a fraction of the $800 billion spend on health and education during the same period.

Listen to this.

(BEGIN VIDEO CLIP)

DILMA ROUSSEFF, PRESIDENT OF BRAZIL (through translator): We enjoy more absolute freedoms and we coexist with popular demonstrations and

demands that help us improve everyday our democratic institutions.

There are people who claim the resources for the Cup should have been directed to health care and education. I hear and respect those opinions,

but I don't agree with them. It is a false dilemma.

(END VIDEO CLIP)

DARLINGTON: She also appealed to Brazilian sense of hospitality and encouraged them to open their arms to the 600,000 international fans

arriving the same way that Brazilians have been received around the globe, Kristie.

LU STOUT: Now Dilma Rousseff trying to bring people together, a time of relative social instability there. I mean, leading up to the World Cup,

there have been many demonstrations, including those by homeless squatters in Brazil. Are they going to keep up with their protests?

DARLINGTON: Yeah, that's right, Kristie. They were actually one of the loudest voices of protest leading up to the World Cup. They were

demanding more public housing. And it looks like they did get some guarantees from the government. So they are not going to open on the --

they're not going to march on the opening match, but they say they are sitting and watching to see what happens next, because there are more games

after that. Watch this report.

(BEGIN VIDEOTAPE)

DARLINGTON: A patchwork of plastic tents pitched on an empty piece of land right near the Sao Paulo World Cup stadium. More than 3,000 lower

income families have joined the land invasion here hoping to use the global sporting event to pressure the government for subsidized housing.

(on camera): So they called this settlement camp "The People's Cup." During the day, you can see there aren't a whole lot of people here.

(voice-over): Wandering through the maze, we saw Jucy Lenny Giaoli Veda (ph) with her two daughters. She'd been paying $350 rent.

"We paid rent, then food and clothes. It was too much," she says.

At the end of each month, she and her husband were left with nothing to put towards a home of their own.

She shows us the kitchen where squatters prepare meals.

The settlement is divided into quadrants. Some live here, others just joined the movement to get their names on the list of house seekers.

These women are new arrivals, trying up the plastic tarps to create a line of leantos.

Because of the Cup, rent went way up, says one woman.

Rent has risen by double digits in recent years, but not only near the World Cup venue.

At night is when the settlement fills up as families return from work and other turn out for the assembly.

"I always liked the World Cup. I was Brazilian through and through," says one woman. "But this Cup and this stadium are making people angry."

Maria Das Dores coordinates land invasions for the homeless workers movement.

She says the World Cup has done nothing to help poor people.

"The legacy of higher rents and pushing people further outside the city to the periphery," she says.

The homeless workers' movement has become the single biggest force out on the streets of Sao Paulo with marches of more than 10,000.

They've closed off main avenues and marched to the foot of the Sao Paulo Stadium, all the pressure appears to have paid off. The government

just announced it will put the squatters on a list to get housing. But these families say they're ready to march on the stadium at a moments

notice if those guarantees fall through.

(END VIDEOTAPE)

DARLINGTON: Now for fans trying to get to that opening match, they still could face a lot of problems. On the one hand, other groups of

protesters are planning to meet tomorrow at 10:00 a.m. and march on the stadium. And on the other hand, subway workers are still threatening to

walk off the job tomorrow, which means they don't even know how they'll get to the stadium, Kristie.

LU STOUT: Wow, incredible. Shasta Darlington reporting live from Sao Paulo. We'll see how it goes. Thank you, Shasta.

And now, the Samba Kings, as the Brazilian team is known, they have hopes far beyond just winning the opening match.

Alex Thomas sat down with former Brazil captain Cafu. And his first question, can the 22-year-old striker Neymar lead Brazil to its long lost

trophy?

(BEGIN VIDEOTAPE)

CAFU, FORMER WORLD CUP-WINNING BRAZIL CAPTAIN (through translator): He's not under pressure because he's so skillful. He's setting the

standard for Brazilian football and in world football. His normal everyone is looking at him. He's the biggest hope that we have. He plays the

beautiful game.

Let's see if he's prepared for all the pressure. We hope that he will be prepared for everyting that could happen in this kid's life from now on.

But there's one important thing to know, we are not giving him the responsibility of our country, we're only giving him the responsibility of

one soccer game.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Lionel Messi and Christiano Ronaldo know all about carrying the hopes of their countries on their

shoulders. Is it important for those two players to do well at this World Cup so they're remembered as all-time great players?

CAFU (through translator): The World Cup is the thermometer and the measure for others think you have become a great player. And when you

believe it yourself. They're already considered the best in the world individually, but the national teams they play for weren't considered the

best in the world because they didn't win a World Cup.

The same place to Neymar as Messi and Ronaldo. If they win the World Cup, they will be 100 percent as great as the biggest players ever. They

are two big players, but they think they need that World Cup title. And that's the only way to complete their conquest.

THOMAS: Should footballers be allowed sex before matches?

(LAUGHTER)

CAFU (through translator): Fantastic. Before the game, no. The day of the game, you can do it. But the day before, fantastic. Then you go to

the game feeling relaxed as if you are flying.

THOMAS: I don't think I need the translation on that one.

So that was your secret?

CAFU (through translator): It could be, but always with my wife.

THOMAS: Should Brazilian people be allowed to protest or strike at this World Cup?

CAFU (through translator): I think the best moment to protest is at the end of the World Cup. This will be the moment we can show ourselves

that we can fight for our rights, better education, better health care, better culture, better transportation. This is the moment we can show the

world we are capable of staging a well organized World Cup. We will show we are democratic country, and later fight for our rights.

THOMAS: Does football need a good story? There's been so many bad stories. We saw the sponsors complaining about the image of football.

Would it be nice for football to have a great World Cup to help its image?

CAFU (through translator): The World Cup gives us the great stories. The great football stories come from the World Cup. The big matches, the

big clashes. I think the World Cup makes the history of football a truly fantastic story.

(END VIDEOTAPE)

LU STOUT: Now CNN is your home for all things World Cup from all the details about the 32 nations competing, to some quirky tournament

traditions like these sticker souvenirs. You can find it all at CNN.com/World Cup.

Now coming up next on News Stream, Uber, the taxi hiring phone app is helping millions of users navigate urban traffic, but now it could set off

traffic chaos from Milan to Madrid. We'll explain.

(COMMERCIAL BREAK)

LU STOUT: Welcome back to News Stream.

Now in a moment we'll tell you why this talking pear is just so popular in Japan. I guess an explanation is in order here.

But first, let's explore why this app is making taxi drivers in Europe just so angry. Now they are staging what is set to be the biggest protest

yet against the smartphone taxi app Uber. Now the European drivers say that the taxi call service threatens their livelihood. And disruptions

have already begun in several cities, including Paris and central London. Over 12,000 cabs are expected to block roads, causing traffic chaos.

Now just four years old, the controversial taxi service already has millions of customers in 37 different countries. and the app's concept is

simple, Uber allows customers to book and pay for a cab by their smartphone. It also helps calculate the cost of the ride.

Now the U.S. based company has grown to more than $18 billion in value. But enraged taxi drivers, they argue that Uber's success, it comes

at their own expense.

Now CNN Money's Laurie Segall spoke with Uber's CEO. And she joins me now live from our bureau in New York. Laurie, good to see you.

As just noted, European taxi drivers, they are staging a pretty big protest against Uber. So what did the Uber CEO tell you about his app and

whether it's direct competition for taxis.

LAURIE SEGALL, CNN MONEY: You know, Kristie, it's so interesting to see this happen, because you see any disruptive technology, it enters a

traditional marketplace and there's so much competition. And there's so much controversy. And I asked Travis Kalanick, he's a clinic, he's the CEO

of Uber -- I asked him about this. I said how do you view your service? Are you guys direct competition. I think you're going to be surprised at

what he said. Listen to this.

(BEGIN VIDEO CLIP)

TRAVIS KALANICK, UBER CEO: We feel like we're creating a new market where people who previously were driving are now sort of getting rid of

their second car, in many cases even getting rid of their first car. And sort of depending on this utility, or the service as a utility to get

around cities around the world.

(END VIDEO CLIP)

SEGALL: And you know what, Travis also said during this interview is he really views Uber as more than just a transportation app, he views it as

a technology platform. So what does that mean? That means he's trying to get the software in the hands of millions of users and then do very

interesting things like what they're doing and testing out here in New York, which is Uber rush, a courier service.

Now obviously that comes with a lot of controversy, because there are a lot of jobs at stake, Kristie.

LU STOUT: Now, it's interesting to hear from the Uber CEO just then saying he's not creating new competition, he's creating a new market.

Now the Uber CEO, he's still under a lot of heat from cabbies all across Europe right now. And no doubt taxi drivers around the world who

are fearing Uber coming in, but also from politicians as well. And it's all over the issue you just touched on, is Uber taking jobs away or is it

creating new ones?

SEGALL: You know, what Travis will tell you is that they're adding 20,000 jobs a month. That's very disruptive.

But, you know, there's also the opposite side. And you've got these entrenched industries that are -- that know the local governments. And

you've got all these regulatory issues that going into a new market you've got to work with. And I actually asked Travis about this. And he said in

order to tell their story, in order to really fight to get on the road, to drive, they almost had to launch a political campaign. Listen to this.

(BEGIN VIDEO CLIP)

KALANICK: Well, look, you know, we really started out as a -- you know, you see with a lot of startups sort of a bunch of techie kids sort of

trying to make something really interesting happen.

But as it starts to succeed, we see -- we see pressure from the incumbent industries trying to get government to do things that they

otherwise wouldn't do. We have to tell our story and persuade politicians and city officials about why our story is important, why drivers are making

better incomes and we're creating a whole bunch of jobs.

(END VIDEO CLIP)

SEGALL: I mean, now that being said, if you look here in the United States, they recently were handed a cease and desist order by a Virginia

official. You look at what's happening you know over in London with all these folks protesting.

So, you know, there's a lot of controversy. There's a lot of tension when you have something like this that is, you know, created many jobs but

also has a lot of folks worried that their industries are going to be completely disrupted.

LU STOUT: That's incredible, isn't it. Uber has to win over a lot of people, not just new customers. Laurie Segall joining us live. Thank you

very much indeed.

SEGALL: Thank you.

LU STOUT: Now in Japan, a pear and a bear have captured the heart of a nation. Now after the break, we'll be introducing you to Japan's hottest

cartoon mascots. Are they going to be the next Hello Kitty?

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. Time for your global weather forecast. And it is hot out there, especially this time of

year in parts of Europe and south Asia.

Let's go straight to Mari Ramos with that and more -- Mari.

MARI RAMOS, CNN WEATHR CORRESPONDENT: And it's not even summer yet, Kristie.

We've been dealing with those very intense summer like severe weather storms across parts of Europe. That seems to be on a downward trend. In

other words, we're starting to see a kind of tail end to that severe weather. Even though we have some strong storms right now coming out of

Germany moving into Poland and southern parts of Scandinavia, for the most part just some scattered thunderstorms are possible, but not severe in

nature like what we had before.

But the heat is still on. Some of the hottest temperatures of the year so far. Look at Budapest at 35. Vienna at 35. Frankfurt at 34 and

Prague and 33. Average high for this time of year should be in the low to mid-20s at most. So we're really talking about some very intense heat

across many, many areas.

And this is a picture from Rome -- trying to cool off. Over the last couple of days, you've had highs -- I think Monday 34 degrees, today again

-- yesterday again 34 degrees. Today slightly cooler. But as we head through the next few days I think we're still going to stay with those very

hot temperatures across the southern portion here of Europe, southern and southeastern Europe.

It's starting to get closer to the average with a little bit a cooling trend across the north finally, because I know that some of you might be a

little bit tired of this heat, very dangerous heat conditions that have been plaguing this area over the last few days.

So current temperatures, 31 in Budapest, 31 in Belgrade, 29 in Rome, that's not too bad.

Look at Berlin, some of the coolest air you've had in weeks across this region at 21. And it's 23 in Paris.

Nothing in comparison to what we have across parts of the subcontinent. New Delhi sizzling at 44. You actually got up to about 45.5

earlier today, so we're starting to see the temperature go down there somewhat.

Yesterday in New Delhi, they had the hottest temperature ever recorded in the city, just over 47 degrees. If you're trying to do the math, that's

about 118 degrees Fahrenheit. So we're really dealing with some extreme heat across the region.

We have pictures to show you from New Delhi. And when we get temperatures in such a large city like this, a couple of things happen. Do

you know that even the number of drownings go up, because people try to go cool off wherever they can, like you see these kids doing here?

But there's also very serious problems with heat illnesses, heat related deaths. The strain that it puts on the economy. The cities across

-- the streets, I should say, across New Delhi have been virtually deserted at times, because people just try to stay away from the sun and from the

heat.

There's also been power cuts and disruptions to business. So very serious problems happening across that region.

Come back over to the weather map over here, let me go ahead and show you. As we head to New Delhi over the next couple of days, slightly

cooler, but still well above the average for this time of year.

And it's hard to imagine, even in a place like New Delhi that it could actually be even hotter, and it is hotter in areas where you have building.

It's called the urban heat island, Kristie. And we've talked about this before, because the buildings absorb the radiation and it doesn't let it

come out later and they don't cool off even at night. And they can be hotter in the cities, maybe up to 3 degrees hotter in a city than let's say

in areas that are more green or near the water. And we talked about this - - energy demand, air pollution, all of these problems that happen when you have these big cities more than, what, 12 million people, 20 million people

in one place and then with these very high, tall buildings.

Back to you.

LU STOUT: Yeah, and that's why we need more urban gardens and green buildings, right? Mari Ramos there, thank you so much. Take care.

Now from Godzilla to Hello Kitty, Japan has created some of the world's leading pop culture icons. But could the next character to take

the world by storm by a pear?

Will Ripley reports.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT: It's like they are ready for a rock concert. This crowed is pump One of Japan's biggest stars is about to take

the stage.

Funassyi is electrifying mostly adult crowd in a Tokyo festival featuring famous Japanese mascots.

"I love him," says this woman.

While many mascots are calm and quiet, this juicy pear is wacky and wild, one of the only mascot who actually talks. His success is self made.

Funassyi tried out and was rejected as the official mascot of his hometown. So unlike other famous mascots, like the iconic Koumamonn, Funassyi did it

alone at his own expense no corporate or government sponsor.

"I see him working hard to promote his hometown. I want help him," says this woman who estimates she's spent $1,000 on Funassyi merchandise --

handbags, hats, and huggable toys -- hefty sales.

Mascots are moneymaking machines credited with making billions of U.S. dollars in Japan alone.

The most popular are being tested internationally. Today's mascots sensations could be tomorrow's global brand. Think Godzilla, Pokemon, Hello

Kitty and just maybe this dancing pear.

Funassyi, Funassyi, I'm with CNN. Can we talk to you?

A star so big, his people protect him from the press.

We've been told we might -- and I emphasize might -- be able to get an interview with Funassyi. We've been trying all day. Don't know if it's

going to work out.

After hours of waiting and some fun with other mascots, Funassyi finally grants our request.

Thank you for talking to us.

And like a true pro he always stay in character.

Do you do it for the fame? For the money? Why do you do this?

"I do this because it makes everyone happy," he says.

Funassyi is winning hearts, and opening wallets, all over Japan and perhaps someday, the world.

Will Ripley, CNN, Tokyo.

(END VIDEOTAPE)

LU STOUT: Mascots are a big business there in Japan. But Funassyi, I just can't get over Funassyi. Partially owes his fame to a skillful use of

social media. You can see here, he has about 749,000 followers, believe it or not, on Twitter. I'm going to have to start following him.

Japan is awash with mascots with Funassyi, because they are enlisted to promote the country's many prefectures.

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

END