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Iraqi Christians Living In Fear; Iraq Formally Asks U.S. For Airstrikes; Felipe VI Ascends To Throne In Spain; Spain Crash Out of the World Cup; MH 370 Searchers Looking in Wrong Place?; Amazon Unveils Smartphone; Republicans To Vote For New House Majority Leader

Aired June 19, 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 subdued celebrations in Spain as the new king comes to the throne in an age of austerity.

Plus, Iraq calls for help, but will the White House move ahead with airstrikes against ISIS militants?

And, an incredible underground rescue in Germany. Emergency workers have pulled a man to safety after he spent 11 days trapped in a deep cave.

Now Spain is experiencing very mixed emotions right now. There is shock and sadness after the World Cup defending champions were knocked out

of the tournament in Brazil.

But in Madrid, right now we are seeing excitement over the proclamation of a new king and new queen.

(CHEERING)

LU STOUT: Felipe VI, Queen Letizia, their daughters and the former king and queen of Spain faced a sea of flags and deafening cheers as they

wave from the balcony of the royal palace in Madrid.

Now earlier, the 46 year old swore his oath before a packed parliamentary chamber. He ascended the throne following the surprise

abdication of his father Juan Carlos after a 39 year reign.

Now it is new era for Spain, but the ceremonies were subdued out of consideration for the nation's ongoing economic woes.

Let's go live to Madrid where Al Goodman has been watching it all. And Al, thank you joining us. In his address, King Felipe VI, he promised

to a monarch for new times. Tell us about the challenges ahead and what we should expect from Spain's new king.

AL GOODMAN, CNN INTERNATIONAL CORRESPONDENT: Hi, Kristie. Two days of historic change. On Wednesday was King Juan Carlos signing the law here

in the royal palace that on his own abdication to pass power to King Felipe who became king at the first hour this Thursday. Then the formal

proclamation in parliament. He is right in the palace right now with the new queen Letizia, his wife, the former commoner, who was a former anchor

woman for our partner station CNN Plus (ph) here in Spain.

Now the challenges, he referred to those in about a 30 minute speech in parliament much watched. He talked about unity trying to keep Spain

together because there's a challenge at this hour in this year of the region of Catalonia whose capital is Barcelona trying to hold a referendum

in November to break away from Spain.

He talked about trust trying to restore trust in the monarchy whose ratings have fallen because of a series of scandals that have hit the

monarchy. And he talked about the bad economy, particularly trying to get jobs for the young people.

So he has a lot on his plate after the festivities end here this day - - Kristie. LU STOUT: You know, in this video we see just this sea of well wisher there surrounding and welcoming the new royal family. But how much support

is there for the monarchy? And what is the reaction there to what happened today?

GOODMAN: Well, security has been very tight in the capital. About 7,000 police officers here. The government raised the terror alert from a

two to a three. There was just some arrest of some suspected Islamic militants.

But on the political issue of monarchy or republic, the pro-monarchy - - I'm sorry, pro-republican demonstrations were banned, unusually, because there have been a number of them since the king, Juan Carlos announced his

abdication a couple of weeks ago. But this day they said no place for those demonstrations.

However, a small demonstration, about 400 people, we have a journalist we know who is at one of those small demonstrations not along the main

parade route, but is taking place nonetheless, because the pro-republican, those in favor of holding a referendum -- the majority of Spaniards say

they'd like to have a referendum at some point, not today, but the polls say that that would be -- come out in favor of the monarchy.

Still, we took the pulse of people in one of our open mics. Let's hear what they had to say.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I would vote for republic because in old history is (inaudible) monarchy. And I think that a republic would be a blow of

fresh air.

UNIDENTIFIED FEMALE (through translator): I'm tired of the monarchy. I don't know why we pay people that really don't do anything for us.

UNIDENTIFIED MALE (through translator): My family and I have always supported the monarchy. I think right now the problem in Spain is the

economy crisis.

UNIDENTIFIED FEMALE: I'm not sure if Spain is good for a republic, so I don't know, maybe a referendum would be a very good idea.

UNIDENTIFIED MALE: I prefer a republic, because I think that queens, kings and the monarchy, monarchies in general I think that it's something

that is old fashioned. And this monarchy belongs to the middle ages.

UNIDENTIFIED MALE: I only want the monarchy, because I think that is the best option for Spain in this moment.

UNIDENTIFIED MALE (through translator): I am in favor of the monarchy.

UNIDENTIFIED FEMALE (through translator): I'm in favor of a republic. All the time that kings have been here we have not gotten anything good

from it. The monarchy has had its time and now it's time for them to leave.

(END VIDEOTAPE)

LU STOUT: Well, as we've mentioned the day's ceremonies are playing...

GOODMAN: So while the new king -- while the new king and queen are in the royal palace at a reception for some 2,000 people, there's been a long

line. They're shaking everyone's hands. While they're doing that, the nation is trying to drink in, take in this historic moment, a change of

kings after Juan Carlos had been on the throne for 39 years -- Kristie.

LU STOUT: A very, very historic moment this day indeed. Al Goodman, we'll be talking very, very soon. Hang tight.

Now as mentioned, what happened today, the proclamation ceremonies, they were playing out in the wake of Spain's bitter disappointment in

Brazil at the world Cup. The reigning champions, they have crashed out of the tournament after that 2-0 loss to Chile in Rio de Janeiro on Wednesday

and that follows their 5-1 humbling by the Netherlands last week. So, Spain's once glorious football team lost its crown as a new king took his.

Let's go right back to Al Goodman in Madrid. Al, got to talk about this. I mean, how did Spain's surprising stunning exit from the World Cup

affect the national mood?

GOODMAN: Well, I would say a lot of people here thought that the reigning world champs -- they won in 2010 -- remember, they also won Europe

2008 and Europe 2012, so they had three international trophies. They really thought this was the dream team for the ages. But because they're a

little bit older and because of a lot of other things, they thought maybe they won't win this World Cup, but nobody, nobody expected them to get

washed out, even after they got that 5-1 drubbing against Holland, remember, that was the team they beat in South Africa four years ago to win

the World Cup in extra time. Even after they lost, they thought, well, they'll regroup and they can come out and they can do it against Chile.

They've really done so well against Chile over the years, but no.

And so, I think just a total shock for the country. And you see that in the newspaper headlines, especially this leading sports paper that said

in English -- it publishes in Spanish -- it said The End.

Now the explanations will be coming now as we try to figure out and we try to hear what happened to these golden boys. Clearly, it was not where

they were supposed to be heading. They were the kings of football. No longer -- Kristie.

LU STOUT: It's incredible, isn't it? Spain leaving the World Cup after only the first round. Their shocked, not just there, but in many

corners of the world.

Al Goodman, thank you so much for your reporting this day. And we'll have much more on the World Cup later in the show.

And, yes, we'll let you watch what could very well be the best goal of the tournament just one more time. People can't get enough of that kick by

Australia's Tim Cahill.

(inaudible) Iraq as government forces battle ISIS militants, there's growing pressure on the Iraqi prime minister.

And a dramatic rescue in Germany. An explorer has been pulled out of the cave after 11 days trapped underground.

And the rebuilding of Tacloban seven months after a devastating typhoon all but destroyed the Philippine city.

(COMMERCIAL BREAK)

LU STOUT: All right. 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 ceremonies for Spain's new king and queen.

And later, we'll update you on an incredible rescue operation in Germany.

But now, let's turn to Iraq. Now the Iraqi military claims to be driving back ISIS militants. Now security forces say the situation in Tal

Afar, Samarra and Baiji is, quote, "under control." And the commander of troops responsible for protecting the Baiji oil refinery says that Iraqi

forces are now in full control of that complex.

He also said that Sunni fighters suffered dozens of casualties.

Now CNN has not been able to independently confirm the situation on the ground.

And the fact remains key cities in northern Iraq have fallen in a wave of ISIS attacks.

Now the front line remains as close as a 45 minute drive from the capital of Baghdad. Now we've also learned that the Iraqi government has

made a formal request for U.S. air power and its fight against Sunni militants. That, as a video message is claiming to be from a Moroccan

Sunni cleric, is calling for attacks against U.S. embassies around the world if Washington conducts those air strikes.

Now our senior international correspondent Nic Robertson is in Baghdad. He joins us now on the line. And Nic, first we have to talk

about that fluid situation still in Baiji. How close is the militant group ISIS to gaining full control of that main oil refinery.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Yeah, Kristie, as far as we know it's sort of a stalemate at the moment. We understand that the

fighting continues, but it's very hard to get an accurate picture of the sort of movement of the front lines.

There are four separate oil refinery facilities within about a 60 kilometer long perimeter fence. That gives you an idea of the sort of size

of the area.

We also understand that there was a sizable Iraqi military unit that didn't flee the area, but stayed dug in at the Baiji oil refinery to defend

it.

But the actual how the fighting is playing out on the ground is unclear. We know late last night that five of the oil storage facilities

were set on fire, that local people there who were witnessing what was happening could tell us clearly that ISIS was in control of part and the

army was in control of another part.

But I think regardless of who has how much of that refinery, the knock on effect is that it's not online. It's not providing fuel for the

country. And it is exacerbating the crisis that is just continuing to grow and get worse right now, Kristie.

LU STOUT: And the crisis has reached such a level that Iraq and the government is asking the United States to stage air attacks on the

insurgents.

I mean, if that happens, what impact would U.S. airstrikes have on ending the crisis?

ROBERSTON: Well, the Iraqi government has been conducting its own air strikes. Last night they conducted an airstrike about an hour's drive

north of Baghdad, just about 20 kilometers east of a town called Balad (ph). Now, they say -- the Iraqi government said that they killed 14 ISIS

terrorist. We spoke to a local hospital there. And a health worker at the hospital told us that they'd received 11 bodies and 33 wounded people. And

they said at the hospital that all the victims were civilians. And that some of the wounded and injured were women and children.

So, there are definite risks for targeting, you know, with air strikes. And certainly the Iraqi military says that they've had success

with air strikes, that they've, you know, killed hundreds of ISIS fighters so far.

There are obvious political risks for the United States to step in with airstrikes, because if they were to strike against ISIS, ISIS is also

fighting with a collection of Sunni tribes, with a collection of Sunni rebel fighting groups in the country against the government, because they

want political change, not an Islamic caliphate.

But the United States steps in and targets anything but specifically ISIS, they will be perceived by the Sunni community here as taking sides

with the Shia dominated government and Nuri al-Maliki. And of course, the United States is saying exactly the opposite, it wants a government of

national unity. It wants the government here to make political compromises to bring in the Sunni part of the community that has been disaffected and

disenfranchised by this current government, Kristie.

LU STOUT: All right, Nic Robertson reporting live on the line from Baghdad. Thank you very much indeed for that, Nic.

Now ISIS is now known to be a large, well funded organization recruiting fighters from abroad. And this week in Texas, two American men

were arrested for aiding overseas extremist groups.

Now western governments are increasingly concerned. Terrorists now have the tools to help find wherever people are willing. Ed Lavandera has

more.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): These two American men arrested in Texas have been charged with supporting terrorist groups in

Syria and Somalia. A SWAT team surrounded 23-year-old Kahn's home in Austin. According to a complaint Kahn used Internet chat rooms to spot and

assess potential recruits for committing violent Jihad overseas.

Michael Todd Wolf also 23 was arrested at Houston George H.W. Bush Airport before boarding the flight to Europe where you allegedly planned to

later enter into Syria through Turkey and provide his services to radical groups. Wolf referred to al Qaeda representatives as righteous brothers

according to the criminal complaint. Even showing an undercover FBI agent, a YouTube video of foreign fighters in Syria. Wolf discussed which militant

groups he should join including the brutal Islamist group ISIS, currently staging an offensive against Iraq.

The Texas native also told undercover officers he had been physically preparing to join Jihad by practicing martial arts, running and cross- fit,

the competitive sport which uses military-style techniques.

STEVE MOORE, FORMER FBI SPECIAL AGENT: This is something that has been going on for a while and since even the early 2000s people from America

have gone over to terrorist camps overseas, but sites like YouTube can be used to recruit people, even in the United States very easily where before

they were -- they were out of reach.

LAVANDERA: Analysts believe as many as 100 American citizens have made the trek to fight in Syria. Last month, an American suicide bomber who grew

up in Florida set off a massive truck bomb at a Syrian military checkpoint.

Syrian Jihadists tweeted several photos of the American before he took his life with bombs strapped to his chest. Social media has now become one

of the many ways al Qaeda recruits westerners to fight alongside radical Islamists.

(END VIDEOTAPE)

LU STOUT: Ed Lavandera reporting.

And the two men from Texas that Ed mentioned in that report, they face 15 years in prison if convicted. They're in custody awaiting a detention

hearing on Friday.

Now, Facebook is back online after shutting down temporarily around the world. The social networking site was inaccessible for a brief period

early on Thursday.

Now Facebook has issued an apology, but no explanation for the technical glitch that caused the worldwide outage.

Now the online retail giant Amazon is adding a new competitor to the smartphone market. CEO Jeff Bezos, he unveiled the 3D Fire Phone on

Wednesday. And the pricing is about the same as the iPhone.

Now besides the high definition display, the phone also has special features that, no surprises here, allow you to shop more quickly on

Amazon.com.

So, will the Fire torch the competition?

Karen Kafa has more.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I don't know how you guys do it.

KAREN KAFA, CNN CORRESPONDENT : After lots of rumors and teasers...

UNIDENTIFIED MALE: Wow, that is really cool.

UNIDENTIFIED MALE: How does it do that?

KAFA: Amazon unveiled its first smartphone on Wednesday -- the Fire Phone.

JEFF BEZOS, CEO, AMAZON.COM: Can we build a better phone for Amazon Prime members? The answer is yes.

KAFA: Among its features, a 4.7 inch screen, a 13 megapixel camera and unlimited cloud storage for photos, 3D display generated by cameras on

the front of the phone that track the user's head movements and the Mayday button to connect with free on screen tech support.

Amazon enters a competitive field. And Apple and Samsung dominate the market in the U.S. For Amazon, however, selling hardware may not be the

primary goal, the real money maybe in mobile content, mobile commerce and subscriptions to its service Amazon Prime.

The Fire Phone's Firefly option, for example, let's users snap barcodes or book titles or recognize songs to purchase through Amazon.COM

Ahead of the smartphone unveiling, Amazon announced its app store offerings have tripled in the last year to more than 240,000. A big leap,

but still well behind what consumers will find for Apple's iOS platform and Google's Android platform, each with more than 1 million options.

Karen Kafa, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And coming up next, seven months after a powerful storm smashed through the Philippines, people are

still trying to rebuild their lives. We'll take a look at the progress in Tacloban after this.

(COMMERCIAL BREAK)

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

Now thousands of Cambodians have crossed the border from Thailand in recent days. Thai officials are trying to ease fears of a crackdown on

undocumented workers. Now one organization says nearly 200,000 Cambodians have left Thailand since last week amid rumors of arrests and persecution.

The International Organization for Migration says at least 10,000 Cambodians are leaving every day.

Now last November, Super Typhoon Haiyan crashed through the Philippines leaving a path of destruction in its wake. It was one of the

most powerful storms ever recorded. And Tacloban was one of the cities hit hardest by its fury. More than 200,000 people were left homeless within

hours. Ships were tossed onto land by gigantic storm surges. And as for the survivors, Haiyan left behind nothing, but the stench of dead bodies and

just piles and piles of rubble.

It has been a long and arduous process for Tacloban to get back on its feet. And some seven months later, thousands of people are still living in

tents and temporary shacks.

Andrew Stevens goes back to Tacloban to find how the city is coping.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: It's all Juvilyn Tanega has now. Pictures of her family stored on a mobile phone. Her six

children, husband, and mother all died when one of the most powerful storms ever recorded smashed into the Philippines. Now she lives alone in a

sweltering tent without electricity just a few meters from where she last saw her family.

You would like to leave?

JUVILYN TANEGA, HAIYAN SURVIVOR: Yes.

STEVENS: But more than six months after Typhoon Haiyan, leaving is still not an option.

The U.N. estimates more than 100,000 people here in the storm zone still live in tents, waiting for better housing, tens of thousands more are

rebuilding in places the government is trying to close down.

This drone footage was taken by CNN in the immediate aftermath of Haiyan, a large part of the city reduced to a smoking rubble. Today, it's

a totally different picture. The city is rebuilding again, but in the wrong places.

I came up to this rooftop just a few hours after Haiyan had swept through Tacloban. We picked our way through what was basically just a sea

of rubble, devastation right along there. So, the extent of the rebuilding just six months on is quite extraordinary. These houses, though, are being

rebuilt in what the government is classifying as a danger zone, to too vulnerable to future storms, too close to the water.

The people here, though, will tell you they have got nowhere else to go.

The government's mantra here is building back better, places like these away from the waterfront that can withstand storms with the intensity

of another Haiyan. But of the more than 200,000 new houses planned, less than 150 have been completed in the first six months.

Officials say funding is not the problem, bureaucracy and finding suitable land to build on is.

But Government reconstruction chief Panfilo Lacson says it is a slow process.

PANFILO LACSON, PHILIPPINES REHABILITATION CHIEF: I understand the frustration, I understand the impatience, but government is -- it is the

responsibility of government to build back better because there's no point reconstructing and putting them in harm's way.

STEVENS: That doesn't help Juvilyn. The tragic reality of her position is that because now she is no family, no children to look after,

she is at the very bottom of the list for new housing.

TANEGA (through translator): It's very painful for us, for me. They take us for granted. Who do I run to? Who do I lean on? I don't have a

family. I am not important to them.

STEVENS: And as if her life wasn't difficult enough, there's a new danger -- the typhoon season is again underway.

Andrew Stevens, CNN, Tacloban, the Philippines.

(END VIDEOTAPE)

LU STOUT: And as Andrew Reported, I mean Tacloban today is to a certain degree a different picture. Life there is moving along slowly.

And you can see a few of the differences then and now in these online images right here.

Now this is what a sign in Tacloban looked like immediately after the storm. And this is what it looks like some six months later.

Now Tacloban stadium, it was a wreck when the storm first hit and now it has been reformed as you can see here.

And you can browse through the entire selection of these online images and also read more of Andrew's experience of his return to Tacloban all on

CNN.com.

You're watching News Stream. And still ahead on the program, the battle rages in Iraq against an insurgency of Sunni extremists as fears

grow that the country is being torn apart by sectarian divisions. We look at how minority religious groups are coping with the unrest.

Plus, the U.S. Republican Party facing a shakeup in congress after Eric Cantor's shocking primary defeat. We take a look at the GOP's future

and why many within it are so wary of the Tea Party movement.

(COMMERCIAL BREAK)

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

Now Spanish crowds gave an enthusiastic welcome to their new king and queen in Madrid earlier on Thursday. Felipe VI, Queen Letizia, their

daughters and the former king and queen of Spain waved from the balcony of the royal palace after the formal ceremonies.

And as Juan Carlos ended his reign on Wednesday, so, too, did Spain's champion football team. La Roja crashed out of the World Cup. Now they

won the tournament in 2010, but they were defeated by Chile and have no chance of reaching the knockout stage.

Emergency teams in Germany say a cave explorer has been rescued after spending 11 days trapped underground. Now scientist Johan Westerhauser was

stuck 1,000 meters below the Bavarian Alps. He suffered serious head injuries and is now being examined by medics.

Iraq has formally asked for U.S. airstrikes in its fight against Sunni insurgents. Now the government says it is driving militants back from

several towns as they try to push toward Baghdad. Iraqi Prime Minister Nuri al-Maliki spoke with U.S. Vice President Joe Biden by phone on

Wednesday, but no decision has been made yet.

Now this appeal for U.S. military backing is yet another red flag inciting questions over whether the prime minister has the power to fight

back the insurgents.

Now several Iraqis are fearing for the worst. Hundreds of thousands of people, mostly Shiite, are fleeing the country.

Iraq is also home Christians and other groups who are living in fear. Now CNN went to a small town in the north near Mosul to see how Christians

there are preparing for what could be an imminent takeover by brutal militants.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: On a dusty street corner in the Christian enclave of Bartilla, Yousuf and his friends try to pretend

that things are normal, that ISIS fighters aren't potentially just moments away from slaughtering them.

"We have all our bags ready. If anything happens, we will leave," said Yousuf.

Mosul, the first city to fall to the terrorist group is right next door.

In 2005, there were a series of attacks against churches in Baghdad. And after that, the young men, the youth here, decided to band together and

form their own civilian defense units. That's been going on pretty much ever since. But now their efforts have really intensified. They don't

want us filming their checkpoints or other measures that they've put into place, especially not with ISIS just a 10-minute drive away.

Most shops are closed, their owners have either fled or don't bother opening. Business is down, power is out. And not everyone can afford

generators.

It's a grim existence in a nation that has already suffered so much.

Umm Shakir's brother and sister were killed in an explosion in Baghdad in 2008. Her heart, she says, sears with the pain of the past and fear of

the future.

"Here is my son. Everyday he pulls a 12-hour guard duty," she tells us. "It's hard. It's very hard. If it stays like this, there won't be an

Iraqi left in the country."

For most, there is little to do, but wait.

Outside the church, we meet these women.

"It's fine. What are they going to do, kill us?" They try to joke.

"I might be the only girl left here. Everyone will go, but I will stay," 22-year-old Mariana says. "I won't leave my country."

Her mother, Mahaftan (ph), remembers the days when they felt they had a future. But the moment there is a glimmer of hope in Iraq, it's stolen.

"I remember coming here when I was this big."

Father Binham Lallou proudly points to the new renovations at his church -- the granite archways and floor he always wanted to build.

"What are we supposed to do?" he wonders. "This is our land, our church that our ancestors built. This evil can't continue. A day will come

when people will come to their senses."

A hope, a dream, in a country hijacked by violence few can understand.

Arwa Damon, CNN, Bartilla, Iraq.

(END VIDEOTAPE)

LU STOUT: Another incredible report from Arwa Damon there.

Now in the United States, congressional Republicans are set to vote in a replacement for outgoing House majority leader Eric Cantor.

Now Cantor announced his resignation from the post after that stunning defeat to political novice Dave Brat in last week's Virginia primary.

Now representative Kevin McCarthy is expected to take Cantor's spot.

Now Cantor's defeat took the party by surprise and has many asking who will be next in line to one day become House speaker?

Let's get more on the state of the GOP and today's upcoming vote. CNN's political Paul Steinhauser joins us live for the view from

Washington. Paul, good morning, good to see you.

And how significant is today's contest? I mean, does it effectively set up the GOP and its leadership, including House speaker, for the next

three years?

PAUL STEINHAUSER, CNN POLITICAL DIRECTOR: More likely just the next few months, Kristie. Because they get to do this all over again after the

November elections. The House will reconvene again and pick new leadership.

Today, though, just about five or six hours from now, all 230 or so House Republicans will go behind closed doors and they will vote, as you

mentioned, for the next House majority leader, that's the number two position.

The two candidates you mentioned Eric -- Kevin McCarthy, the California congressman, the Republican. And what's Ironic here is Cantor

lost his primary because he wasn't considered conservative enough. The man who will most likely succeed him, McCarthy, is not considered a hardcore

Republican.

There's one other candidate in the race. He is much more conservative, a man named Raul Labrador from the state of Idaho, but he is

considered a very long shot.

The real battle here, Kristie, will not be for the House majority position, it'll be for Kevin McCarthy's position, the number three slot,

that's where conservatives and southern Republicans hope to score a victory.

But it is interesting that, you know, the defeat of Cantor, which was such a big deal because he wasn't conservative enough, it seems the Tea

Party and the other conservatives won't really succeed in replacing him in that House majority position, Kristie.

LU STOUT: Yeah, he wasn't conservative enough. The vote today has everything to do with that. After that stunning defeat of Eric Cantor. He

lost to that Tea Party challenger. How would you define, especially for an international audience, the Tea Party and where it stands in relation with

the Republican Party?

STEINHAUSER: Now here's the thing about the Tea Party, it's not actually a political party. In the U.S., we have two major political

parties, the Democrats and the Republicans. The Tea Party, which is about five years old now, it's more of a grass roots conservative movement. And

there's no one group or one party, there are tons of national Tea Party organizations, but also even more so, local and state chapters as well.

So it's not one unified force, it's much more widespread, much more grass roots.

What it did do, Kristie, is it gave a lot of energy and excitement to the conservatives and the Republican Party and it helped them to some big

victories in the 2010 mid-term elections, which helped the Republicans win back control of the House of Representatives. And it's also been an

influential force in party politics ever since.

Some people are wondering whether the excitement has been waning a little bit over the last couple of years, but that defeat of Eric Cantor,

by that very little known Tea Party supported candidate, Dave Brat, really gave a shot of infusion, I guess you could say, to the Tea Party movement,

Kristie.

LU STOUT: All right, Paul Steinhauser, thank you so much for that.

Paul Steinhauser joining us live from Washington. Take care. We'll talk again.

You're watching News Stream. And still to come, a 1,000 meters underground, he was there for 11 days and 11 days on, rescuers they finally

managed to carefully pull out a man who was trapped in a deep, deep cave. We'll give you details of that epic mission after this.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now it has been just over 100 days since flight MH370 went missing. now satellite data prompted search efforts in the southern Indian Ocean,

but there's still no trace of the flight. And now a new analysis suggests that might be because the search has been focused in the wrong place.

Rene Marsh has more.

(BEGIN VIDEOTAPE)

RENE MARSH, CNN CORRESPONDENT: Right ocean, right arc, but wrong spot: a group of independent experts say they believe flight 370 went down

here, hundreds of miles southwest of where crews spent weeks searching.

MICHAEL EXNER, CO-FOUNDER, AMERICAN MOBIL SATELLITE CORP: My personal opinion is that we're at the 80 to 90 percent confidence level.

MARSH: Michael Exner and about a dozen other experts pushed for the release of raw satellite data, which government officials used to calculate

the plane's possible final resting place.

Now that they have it, they agree the plane almost certainly went south. But the group says five computer models place it in this tight

cluster and say the search should focus here.

EXNER: This is our recommended search area. No one is claiming that we know it's at this location. But we think it has the highest probability

of any area in the southern Indian Ocean.

MARSH: There have been multiple aerial searches in the southern Indian Ocean with no trace of the missing plane. But they say their new

target area was unexplored.

EXNER: They have already searched areas very close to the area that we have recommended, but not exactly on it.

MARSH: The group says the four underwater signals detected in April unintentionally distracted search teams from looking at other areas

Inmarsat had flagged. But the outsiders, Inmarsat and Australian authorities all agree the underwater pings were a lead that needed to be

pursued.

Authorities leading the search say their reanalysis of the data is almost complete and a new search area will be revealed by the end of this

month. Right now, ships are mapping the ocean floor in preparation for the next phase of the search, which private contractors will handle. The next

phase is scheduled to begin in August.

Rene Marsh, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Now after a delicate two week operation, German rescue workers have freed an explorer trapped in an underground cave. Now the 52-

year-old scientist was hurt in a rock fall in early June while exploring these deep caves underneath the Bavarian Alps.

Now a medical team is currently examining the man. And for more on the story, Diana Magnay joins me now live from Berlin.

Diana, what more can you tell us about this very delicate and remarkable rescue operation?

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Well, it is remarkable, Kristie. This man was injured in a rock fall more than -- or

just about 1,000 meters underground. And he suffered quite a severe brain trauma. So it was very, very delicate getting him out. And even getting

doctors down to him so that he could be brought out in some kind of condition that was equivalent to intensive care, which is where he really

should have been.

He was down there with two other men when it happened the Sunday before last. One of them stayed with him, keeping him warm, wrapping him

up in sleeping bags and giving him food, and the other went the 12 hours it takes to get up through this incredibly complex series of tunnels and

chambers deep inside the Bavarian Alps to get help.

And this rescue operation was an absolutely gigantic and extremely complex mission. It wasn't just German rescuer workers, Kristie, it was

rescue workers from Italy, from Croatia, from Austria, from Switzerland. All told, 724 rescuer workers involved in this, 200 in the cave itself.

And they strapped him to a stretcher and put a helmet on his head to protect his head, and then brought him through these tunnels, winching

themselves up with ropes.

He couldn't get wet. They had to get through waterfalls. In some places, you can see from the pictures, it was so narrow that they could

only just squeeze him through.

So a really astonishing operation that went on for nearly 12 days. And the press conference has just been held. And you can really tell from

the rescue workers, the heads of the rescue teams, how pleased they were, how emotional they felt, that this had come to a successful conclusion,

that all the technical barriers had been overcome, the language barriers, and that his enormous team had managed to coordinate in such a way to bring

this very, very complex rescue operation to an end.

Now, the man himself, Johan Westhauser, has been transferred to a clinic. Apparently his condition is stable, considering the situation.

They didn't want to rush the last stages of the operation, precisely because he's in such a sort of fragile state. But he's now in a clinic.

Their work is over, the doctor's work has begun -- Kristie.

LU STOUT: All right. Incredible indeed. CNN's Diana Magnay joining us live from Berlin. Thank you so much for that update.

You're watching News Stream. And still to come, England fights for survival in the World Cup field later today. We'll be previewing this make

or break match right after this.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. And lets return to Spain's stunning defeat to Chile in the World Cup. Devastated fans in Madrid accused their

national team of not taking the tournament seriously enough.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): It's a shame. We didn't expect to win the World Cup again, but we thought we would have fought a

little more. I think we have to thankful for everything they have achieved, but they needed to plan a little more, put sentimentality to one

side, and with this the national team would have been a little stronger.

UNIDENTIFEID MALE (through translator): The decision made by the coach was disastrous. The team wasn't prepared. And the lineup wasn't

correct at all. They should have taken the World Cup a little more seriously than they have done this year.

(END VIDEO CLIP)

LU STOUT: And for awhile on Wednesday, it looked like another upset was on the cards, but this amazing goal by Australia's Tim Cahill was not

enough to save the Socceroos in Group B.

Now The Netherlands, after that, they came back to the win the game 3- 2. And the Dutch, they will advance to the next round.

Now, in Group A, it was a one-sided affair as Croatia hit four past Cameroon. And the Europeans went ahead in the 11th minute and they never

looked back. Cameroon never scored.

Let's take a look now at Thursday's action starting with Group C leaders and Colombia and Ivory Coast. A win by either team guarantees that

they will advance to the knockout round.

And next comes a Group D match between Uruguay and England. Now both lost their openers. A second defeat will make advancing extremely

difficult. And it is a similar scenario in Group C when Japan and Greece finish the day. They also lost their openers and would have little chance

of advancing with another defeat.

So let's get a look now at the big match. It's coming up, the one between England and Uruguay. The pressure is indeed on. And as we said,

neither team can afford to lose after dropping their first games.

Now CNN's Amanda Davies is in Sao Paulo, it's where the match is going to be played. She joins us now live. Amanda, this is a big showdown,

England versus Uruguay, give us a preview.

AMANDA DAVIES, CNN SPORTS CORRESPONDENT: It is absolutely, Kristie. Yeah, very much billed as a must win match for both sides. Thousands of

fans from both England and Uruguay have been descending here on Sao Paulo over the last couple of days, because of that extra little bit of spice

that both teams lost their opening matches, which really wasn't expected.

We went to the pre-match training and press conferences inside the stadium behind us yesterday. Some bad news for Uruguay fans, they're going

to be missing their captain Diego Lugano. He's been struggling with a knee injury

But the Uruguay coach, Oscar Tavarez, did confirm that star striker Luis Suarez is 100 percent fit to play. We're expecting to get our first

glimpse of him at this tournament. But Tavarez wouldn't give too much away. He didn't confirm whether or not he will start.

Of course, Suarez is a Liverpool teammate with the England captain Steven Gerard. And Gerard confirmed that he has been in touch with Suarez

during the course of this tournament. He has engaged in what he described as banter with his club teammate, but said that he wouldn't be speaking to

him ahead of this game today.

But he also said that he's spoken to his squad about what it feels like to go out of a World Cup early on in the group stages. He warned his

squad that defeat against Uruguay would make it a long, terrible summer.

LU STOUT: Yeah, you don't want to leave too early, you don't want to have that long, terrible summer. It all comes back to what the world

witnessed quite recently. You're covering the big tournament there on the ground. Is there any lingering shock in the wake of Spain's stunning

defeat to Chile and its very early exit from the World Cup?

DAVIES: Yeah, absolutely, Kristie.

People had been talking Spain maybe weren't quite the force that we'd seen in recent years, the force that had won the last two European

Championships and of course the last World Cup four years ago in South Africa, but nobody expected the humiliation, frankly, that we've seen in

the last week or so.

They conceded seven goals in two matches, that is more than they conceded in the last three tournaments on the way to those three trophies

in total.

And Spanish coach Vicente del Bosque has been speaking since the defeat to Chile, talking of the consequences of going out of a tournament

in such a fashion. He of course has been in charge for six years. Questions now being asked about his future and what it also means to some

of the senior players in the squad, the likes of goalkeeper Iker Casillas who really has struggled in the last couple of matches, Xavi Alonso, Xavi.

Chile are many people's dark horses to do well in this tournament, but nobody expected them to rip through the Spanish side quite as they did.

Spain, of course, aren't out of the tournament, per se. They can't make it through the group stage, but they do have one more match, that's

against Australia on Monday. A chance to maybe bring back a little bit of pride playing Australia to make sure that they don't finish bottom of their

group, which really would be something of a complete humiliation, Kristie.

LU STOUT: That's right. Thanks for pointing that out.

Oh, Amanda Davies, reporting live from Sao Paulo, thank you.

And time now for the World Cup weather. We'll get condition in and around the pitch areas. Mari Ramos joins us from the World Weather Center

-- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: I think Amanda looked a little chilly there. I wasn't expecting her to be wearing a jacket and a scarf.

You know, Sau Paulo is having its chilly day, its coldest day since last August it hasn't been this cool in that area. But we're going to talk

about Sao Paulo in a moment. Let's talk about some of the other places where the weather will not a problem. Natal for Japan versus Greece, 26

degrees, partly cloudy skies, looking pretty good there.

Brasilia also looking pretty good for the match later today between Colombia and Ivory Coast. 26 degrees also for you there.

And then we get to Sao Paulo. Yes, we saw those pictures already, like I said, of Amanda with the scarf and the jacket. Uruguay versus

England here. We're looking at 14 degrees for -- by the time we get to play. Winds about 18 kilometers per hour, so that's going to make it feel

a little bit chillier, about 12 degrees. And it is humid. So this is the little bit of light rain, drizzle not out of the question even as we head

into the afternoon and evening hours.

Why, do you ask? Well, it's autumn here in this part of the world. And this is in the southern portion of the country.

We had a cold front that came through. It's still a little bit of cloud cover that's lingering across this area. Even as we head into Rio

we're looking and dealing with clouds this morning.

And back over to Belo Rizonte and even into Brasilia, even though I don't think we'll have any problems with rain there, but definitely in

areas here to the south.

We're looking at 13 degrees right now in Sao Paulo, 9 in Curitiba and only 7 in Porto Alegre as we get into the morning hours in this part of the

world.

Think of it this way, it is actually cooler in Sao Paulo than it is in England today, than it is in London. It's 19 right now in London. And

they have very similar temperatures, by the way, during the month of June during the summer here in the UK and during the autumn months there in Sau

Paulo, very similar conditions. But it is colder there today than it is here.

19 right now in London -- actually not a bad day. High pressure in place. 19 in Paris.

And we've had some very warm temperatures across the UK and Ireland. They have been warmer across the UK, that's why we have them here on the

map. Glasgow, Carlisle Exeter and London at 23. The average for this time of year is 21.

With this high pressure in place, it's going to stay like that. Not as warm today as it was yesterday, by the way, especially in Ireland. But

I think the UK will remain quite warm. And also clearing skies here as we head over into portions of the mainland back over toward France through

Denmark.

And then scattered rain showers across much of the rest of the continent. Hopefully, nothing severe like we saw across parts of France

yesterday. And even in Italy, there was a water spout that started off in the water and moved inland and actually caused some damage, injuring two

people there.

And look at this picture from Belgium, absolutely beautiful. And no, that's not the sun, that's lightning lighting up the sky in the early

morning hours. Back to you.

LU STOUT: Wow beautiful and foreboding at the same time. Mari Ramos there, thank you.

And finally it is a big first for Hong Kong tonight. Just across the harbor from here in our studio, the city is playing host to what is said to

be the very first global premiere of a Hollywood blockbuster in the city. A-listers from the film Transformers, they've been making their way down

the red carpet here in Hong Kong this afternoon.

Now here is a live look at the venue where a concert will take place just a short time from now. Imagine Dragons will be taking to the stage.

And the movie's director, Michael Bay, he said that it was the, quote, perfect location to unveil the film, given that several scenes were shot in

the city.

And he also added that Transformers showcases much of the region's unique and iconic scenery.

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

END