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NEWS STREAM

MH17 Victims Arrive in Kharkiv; Refugees Flee As Fighting Continues In Donetsk; Real Madrid Unveils World Cup Star James Rodriguez; Leading Women; Bobbi Brown; Indonesian Presidential Candidate Prabowo Subianto Withdraws from Race, Calls Election Unconstitutional

Aired July 22, 2014 - 8:00   ET

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

MICHAEL HOLMES, HOST: Hello. I'm Michael Holmes at the CNN Center. Welcome to News Stream where news and technology meet.

The remains of Malaysia Airlines flight 17's victims have arrived in Kharkiv as pressure mounts on Russia for its support of separatists in

Ukraine.

Fighting goes on between Israel and Hamas militants. The U.S. secretary of state heading to Jerusalem to try to broker a cease-fire.

And Real Madrid prepare to unveil their latest signing, the World Cup's top scorer James Rodriguez.

We begin in Eastern Ukraine. A train carrying the remains of 282 people killed on Malaysia Airlines flight 17 has now arrived in the

government controlled city of Kharkiv, the first milestone in their journey back to home countries.

Now as for the investigation, separatists have handed over the aircraft Black Box data recorders to Malaysian authorities. Malaysia says

they will keep them until an international team is formed.

And Ukraine's director of informational security has told CNN that he is certain a Russian officer personally pushed the button to shoot down the

Malaysia Airlines plane. It is not clear what evidence he might have, and it is an accusation Moscow has repeatedly denied.

Let's get straight to Ukraine now. Senior international correspondent Nick Paton Walsh joins us from Kharkiv where the bodies of those victims

arrived earlier today.

Nick, what happens now with those bodies and the black boxes? Fill us in.

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONENT: Traveling both on the same train, that cargo, the bodies themselves, we saw arrive here a few

hours ago now pulling slowly into a railway station now far from where I'm standing. And through the windows, too, we also saw Malaysian officials,

presumably they're the men who is custody those black boxes are as well.

We start with patterns (ph) now with the bodies. It's obviously deeply tragic, but also quite gruesome and complex task ahead for the Dutch

and Australian officials who have come here to try and bring some sort of resolution for the families. Still trying to work out, I think in many

cases, when they can see their loved ones buried at some point in the near future.

Behind me, the process has begun. The train that was pulled into the railway station was moved into an older Soviet era factory then out of

public sight. There are now many officials in different buses coming in and out of this facility behind me as the bodies are taken off the train,

we understand, and then put into coffins and then at a later stage moved towards the airport where they're -- that as numbers of bodies are already.

They'll be put on airplanes and then flown back to The Netherlands.

This process may only begin as early as tomorrow. And one Dutch official saying to me it could take not just hours, potentially days to

complete, if not even get started, another worrying factor, too, certainly that will play on the minds of the relatives. They're not entirely sure

exactly how many bodies are on this train partially because of the condition they're in. And they may not know entirely until those bodies

are all brought back to Amsterdam.

HOLMES: And of course, Nick, because of the nature of what happened to the plane, not all those bodies are on that train and some may never be

found. Is that your understanding?

WALSH: I'm sure at some point a full accounting will end up being made of people who were on that aircraft. The issue simply is, though, for

the moment of closure for those families who wanted to bury their loved ones around the world not just in The Netherlands. It's increasingly the

case, I think, of Dutch officials now having to look at DNA testing in some cases and slowly piecing together quite who they do have on that train

and...

HOLMES: All right, we seem to have lost the signal there with Nick, but obviously getting the gist of that. The bodies, the black boxes now

back in the hands, they should be for the moment. And we will monitor their movement going forward.

All right, meanwhile, just west of the area where the Malaysian jetliner went down, Ukraine's civil war, of course, continues. In

particular, we're looking at the eastern city of Donetsk, which is a heartland, if you like, for those separatists. In violence unrelated to

the crash, Ukrainian government forces have been battling pro-Russian rebels at the city's airport Monday. They say they have now taken the

airport back from the separatists. It's a crucial development, too, in how this is unfolding on the ground, on the battlefield.

Elsewhere in Donetsk, locals say artillery shells hit a residential neighborhood near the main train station. At least two people were killed

in the fighting. The Donetsk city council is warning residents not to leave their homes.

Some families, though, have been ignoring those warnings. Senior international correspondent Ivan Watson was at the train station in Donetsk

where people were trying to flee the city.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: The separatist controlled city of Donetsk is on the edge, residents hurrying away on foot,

clutching their most valuable possessions as they flee the battle at the gates of the city.

"We will definitely come back," this man curses as he leaves his family away. "And then we'll kill them," he swears.

"Run, they're shooting here," this woman says her cat meowing in the basket.

All day long, the boom and crash of artillery shakes the north of the city. Several shells clearly landed in residential areas. City officials

say at least five civilians were killed in Monday's clashes.

This coal mining city's broad streets now mostly empty, though occasionally patrolled by pro-Russian rebels in tanks.

At the train station, we found dozens of people hiding in an underpass, some of them clearly terrified.

No one here is talking about Malaysian Airlines flight 17, believed to be shot down a little more than an hour's drive away from here. These

people just want to escape Ukraine's civil war.

A grandmother weeps as she sends her daughter and granddaughter away. The girl's father hopes to soon follow his family.

"I don't support one side or the other in this war," the man says, "I just want peace."

The scenes here are understandably emotional. People are saying good- bye to their wives, to their children and sending them on this train to Moscow out of the war zone.

These families don't know when they'll see each other again. Not far away the guns of war keep rumbling.

Ivan Watson, CNN, in separatist controlled Donetsk, Ukraine.

(END VIDEOTAPE)

HOLMES: Well, those Russian-backed rebels have been of course facing international condemnation over the handling of the crash site where flight

MH17 was shot down. the Ukrainian President Petro Poroshenko told our own Christiane Amanpour in an exclusive interview that their contract --

conduct, rather, was, quote, "barbaric."

(BEGIN VIDEO CLIP)

PETRO POROSHENKO, UKRAINIAN PRESIDENT (through translator): Don't name these separatists. There is no separatists there. They are terrorists.

They are killing the innocent people. And I think that their attempt to destroy the evidence were useless.

(END VIDEO CLIP)

HOLMES: Now, Mr. Poroshenko also compared the disaster to some of the world's worst terrorist attacks.

(BEGIN VIDEO CLIP)

POROSHENKO (through translator): I don't see any differences from the tragedy 9/11 from the tragedy of Lockerbie and from the tragedy of Grabova

(ph) on Ukrainian side.

(END VIDEO CLIP)

HOLMES: Do stay with us here on News Stream. When we come back, we're going to be following, of course, the deadly conflict between Hamas

and Israeli forces in Gaza. We will bring you the very latest from the field.

Also, we are watching for official results on who won Indonesia's presidential election. It has been contentious, one candidate already

making his own surprise announcement.

(COMMERCIAL BREAK)

HOLMES: Welcome back.

International pressure mounting on Israel and Hamas to halt their fighting. 15 days now of deadly conflict and counting. So far Israel says

27 of its soldiers and two civilians have died in the clashes. And health officials in Gaza say more than 600 Palestinians have been killed, the vast

majority of those civilians and many children.

U.S. Secretary of State John Kerry has been in Egypt for talks. He next heads to Jerusalem to try to broker a cease-fire deal. But fighting

around Gaza has been continuing this Tuesday. Israel pounding targets in Gaza, Hamas firing rockets into Israel. Both sides say they will not stop

until their own demands are met.

Let's get more now from Gaza. Karl Penhaul has been following developments there. We'll get to talks and any prospect they may have for

quieting things, Karl, but first of all update us on the battlefield. What is going on there today?

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT: Yeah, I think there are two figures that are really bringing things home to me this morning to

give us an idea of really how intense this fighting has been. The Palestinian Ministry of Health are telling us that in the last 13 hours --

13, 14 hours since midnight, basically, 46 Palestinians have been killed in fighting. And then another figure from the United Nations relief agency,

they say that almost 103,000 Palestinians are now sheltering in UN operated schools that are now serving as temporary shelters. The total number

displaced, of course, is much greater. People are being -- gone into their family, other family homes and such like.

But just in these UN shelters, 103,000 people now cowering, trying to find some refuge from the fighting because there is no way out of the Gaza

Strip. They simply cannot cross these borders. These are closed borders.

And all through the night and through the morning, we heard Israeli gunboats in action, them pounding away at targets on the mainland. We've

heard Israeli artillery fire, principally in the eastern flanks of Gaza. And in eastern neighborhoods of Gaza, we have seen plumes of smoke going

up, some of them appear to come from air strikes, but others do seem as if they may have been controlled explosions, perhaps a sign that the Israeli

military who do have boots on the ground in that area with their combat field engineers are making some headway into detecting some of those Hamas

tunnels and destroying them with explosives so that Hamas commandos cannot continue to burrow into Israel as they have been doing over the last few

days and take on Israeli patrols on their home turf, Michael.

HOLMES: Now when it comes to talks, Karl, as we said John Kerry in the region headed to Jerusalem. I think Norway is even involved at some

level in these talks, one of the few countries that will actually talk to Hamas.

But when you talk about the proposal that's been on the table, Hamas has felt it's not getting anything out of this. And even if it's based on

the 2012 cease-fire agreement, Hamas will say none of that really came to fruition in terms of what it says it was promised.

So what other prospects from where you stand?

PENHAUL: You're absolutely right, Michael, that is exactly what Hamas is saying. Hamas is saying that previous cease-fire conditions weren't met

and now, and I've talked to Fauci Barhoum (ph) a couple of days ago, one of the Hamas spokesmen here in the Gaza Strip, and he said that what they're

putting forward is a 10-year cease-fire plan.

They are fighting now. They will continue to fight to get these conditions. There is no option to return to the status quo, according to

this Hamas spokesman.

And that is a view echoed by a lot of the civilian population as well. They say that simply going back to the way things were before this

confrontation is not an option. Now that they've started fighting, they say, they're going to try and get the job finished in order to get a

different set of living conditions for the people of Gaza.

And in peace time a lot of the civilians here on the strip may not agree with Hamas policies, they may not agree with Hamas's aspects of its

political repression, but then in many ways they see this war, this confrontation now with Israel as their war of independence. Added to all

this, Hamas's performance on the battlefield, its Al Qassam Brigades, along with Islamic Jihad and other militant factions in this fight, by guerrilla

warfare standards, although they are on international terrorist watch lists, but by guerrilla warfare standards they are giving a good account of

themselves.

Hamas commandos continue to go into Israel, despite all the bombing, and take on the Israelis on their home turf. They continue to fire

rockets. And also this news that Hamas claimed to have captured an Israeli soldier. And in the last few hours, the Israeli military have come forward

and named that soldier as Oron Shaul. They say that he was one of seven soldiers in an armored personnel carrier that was involved in a clash with

Hamas fighters on Sunday. They say he is unaccounted for and still trying to determine his status.

Now it could be a number of scenarios even right through the scenario that he actually died on the battlefield and Hamas may have simply

collected his dog tags or may have his body.

But nevertheless, if Hamas do have either his remains or if he is, in fact alive as Hamas says, that will be a huge bargaining chip that Hamas

will use both for political and military leverage, Michael.

HOLMES: And when we talk about the balance here, too, you make a (inaudible) I suppose in many ways for Israel there is no real incentive to

stop at the moment. They're in. They're doing a job they feel they need to do. But when it comes to Hamas, is it fair to say that they as an

organization don't need much of a death toll to claim some sort of a victory in all of this, because what they've done is brought disruption to

Israeli life in a way they haven't before? Will they be seeing that as a victory?

PENHAUL: I think to get right to the bottom of that, Michael, you have to go down to the fundamentals of guerrilla warfare. And whether you

look at the situation between Hamas and Israel, or go right back to the lessons of Vietnam, for example, in an asymmetrical war of this type when

you've got a large, sophisticated conventional force that is the Israeli military fighting against apparently a much weaker force that is Hamas, but

are using guerrilla tactics in their various components, it doesn't matter only what happens on the battlefield, but to any guerrilla war there is a

military component, there's a political and social component and there is also a propaganda component.

And right now the fact that Hamas has been able to inflict at least 27 Israeli casualties, that is a huge propaganda victory for Hamas and that is

also translating into some kind of social support there that the population of Gaza now, despite what they feel about Hamas in peacetime, are starting

to rally around and back this fight despite the heavy toll.

And so any -- even one day more that a guerrilla unit can fight a sophisticated army like the Israelis is a gain. You don't have to suffer

more or fewer losses than your opponent in guerrilla warfare, but yes indeed, I mean this is already by some Israeli soldiers that have been

interviewed by Israeli military, for example, they're already comparing the style of Hamas's fighting this time around to Hezbollah when they were

fighting in Lebanon against Israeli in 2006, which lead to Israel pulling the tanks that they'd sent into southern Lebanon out and they very much got

bloodied there as to some extent they are getting bloodied now, Michael.

HOLMES: Good analysis.

Karl, thanks so much. Karl Penhaul on the spot for us there in Gaza City.

Well, Israel, of course, says it is aiming to destroy that network of tunnels that are used by Hamas militants to cross the border noticed what

Israel calls the lower Gaza, that's how big they say the network of tunnels is.

Now on Monday, the IDF said it killed 10 militants who managed to access Israel through those tunnels. CNN cameras managed to capture part

of that operation. Atika Shubert reports.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN INTERANTIONAL CORRESPONDENT: Tracer fire and machine guns not in Gaza, but on the Israel side of the border. Our camera

captured this video before dawn on Monday morning.

And here's what it looked like in the nightvision scopes of the Israel defense forces. Hamas militants sneaking in through tunnels under the

border, according to Israel, not once but twice in this area.

This Israeli military video said to show militants barely distinguishable from the scrub on the hillside eventually taken out by a

helicopter strike. Israel says 10 militants were killed.

Now I want you to take a look at that hill back there. That is where we shot all that video earlier this morning. Now we know why there was all

that activity, Hamas militants were able to tunnel in just a few hundred meters from here. And right there is where they were engaged by Israeli

troops.

MICHA BEN HILLEL, KIBBUTZ MEMBER: From the border it would be 600, 700 meters, even...

SHUBERT: Oh really, that close.

HILLEL: Yes.

SHUBERT: Oh, wow.

Miha Ben Hillel (ph) has lived here in Kibbutz Near Ahm (ph) for 50 years. He's used to constant rocket attacks from Gaza, but he's never

experienced a threat like this.

HILLEL: The threat is very immediate. It's about 500 meters from our Kipputz. And they can -- the tunnel in some places it turned out to be

even longer and getting closer to the Kibbutz, even centers of the Kibbutz. So it's a -- this is a real threat.

SHUBERT: Israel's Gaza offensive called Operation Protective Edge is supposed to be dismantling the massive tunnel network that has allowed

militants to strike behind Israeli lines, a new and unnerving threat with deadly consequences leading to the biggest number of Israeli soldiers

killed in years and that number is expected to rise after fierce fighting on Monday morning.

Atika Shubert, CNN, at Kibbutz Near Ahm (ph) on the Israel-Gaza border.

(END VIDEOTAPE)

HOLMES: Still to come here on News Stream, elections in Indonesia are just about to reach a conclusion. But one candidate makes a surprising

last ditch move. We'll have that when we come back.

(COMMERCIAL BREAK)

HOLMES: Welcome back.

And unexpected twist in Indonesia's presidential elections. The former military general Prabowo Subianto is withdrawing his candidacy from

the race just hours before election results are expected to be made officially public. Prabowo claims that the elections were tainted by,

quote, "massive and systemic cheating."

Most unofficial vote counts put Prabowo's rival, the Jakarta governor Joko Widodo, in the lead.

Anna Coren is live for us in Jakarta.

Quite an accusation, quite a last minute maneuver. What evidence does he have? And what impact could it have?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yeah, Michael. Certainly a lot of drama here this afternoon in Jakarta. We're standing

outside the general elections commission building waiting for officials to come and make an announcement as to who has won the Indonesian presidential

elections.

But as you say, Prabowo Subianto, the ex-general from the Sahato (ph) era has come out just a few hours ago saying that he's withdrawing himself

from the political process, basically accusing the commission of being legally flawed, the election certainly as being legally flawed. And he

interestingly says that he and his supporters will not be quiet and let our democratic rights be violated.

Now, what does this mean? Has he quit the presidential race? It's just a little bit ambiguous at this stage. His camp hasn't come out and

confirmed it as yet. But from what we understand, he will file a complaint with the constitutional court and have his complaints heard by that court.

Some of the analysts that we've spoken to, they certainly say that he's more than likely to be unsuccessful there. But it draws out the

process.

However, we are expecting, Michael, that within the next hour that officials will come out and announce that Joko Widodo, the governor of

Jakarta, the man who comes from very humble beginnings, who is a self-made businessman who has not come from the background that every other

Indonesian president has come from, whether it be from the military or the political elite, this is a man of the people, that he will be announced the

next president of Indonesia, Michael.

HOLMES: You know, one criticism that so much a man of the people, seen by many to be inexperienced.

But Subianto's withdraw, could it impact whether Widodo actually takes office or not? Can it get in the way of the actual process of taking

power?

COREN: From what we understand the constitutional court will make a decision within two weeks. So it will be heard within the next month.

So after that, from what we understand the president will be sworn in as of October with the new parliament.

But you know, could he make trouble for Jakowi (ph), as Joko Widodo is affectionately known here in Indonesia, we just don't know. He obviously,

as I say, has a military background, is an ex-general. There are allegations of human rights abuses against him. He was once married to

Sahato's (ph) daughter. He has very powerful connections. He's an extremely wealthy man, his family is extremely wealthy. That's his

background.

But from the analysts that we've spoken to this afternoon, Michael, they say that his supporters are deserting him, that they see the writing

on the wall, that they know that he has lost this election and that he really just needs to stand aside.

But, you know, this is Indonesia. This is all about saving face. This is also about going through the motions, which is what filing a

complaint to the constitutional court is all about.

But certainly if Jakowi (ph) has the mandate to lead this country, the people of Indonesia are hoping for corruption to be stamped out, for there

to be real progress -- you know, economic growth, jobs, that is what people want. They want change. They want an end to the way that Indonesia has

been run for the last several decades. You know, they want this country to move ahead -- Michael.

HOLMES: All right. Anna, thanks so much. Hopefully the street remains calm.

Anna Coren there in Jakarta.

Well, with the downing of Malaysia Flight 17, the full weight of international pressure coming to bear on the Russians President Vladimir

Putin. World leaders insist he can and he must reign in those rebels in Ukraine. We'll look into that when we come back.

(COMMERCIAL BREAK)

HOLMES: Welcome back. I'm Michael Holmes at the CNN Center. You're watching News Stream. And these are your world headlines to the minute.

A train carrying more than 280 victims from Malaysia Airlines flight 17 has now arrived now in Ukraine's eastern city of Kharkiv. The Dutch

prime minister expects the first plane carrying the remains of victims to arrive in The Netherlands Wednesday. And that is where they will undergo

forensic examination before being sent on to the victims' home countries.

The death toll on both sides of the Israeli-Gaza conflict is rising by the day. The Gaza health ministry says 604 Palestinians have been killed,

more than 3,000 wounded. On the Israeli side, 27 soldiers and two civilians are dead. U.S. Secretary of State John Kerry expected to hold

talks with the UN Secretary-General Ban Ki-moon in Jerusalem today.

Authorities in South Korea have positively identified the body of Yoo Byeung-eun. It is believed he and his sons controlled the shipping company

that operated South Korea's sunken Sewol ferry. The billionaire went missing not long after the disaster and his body was found decomposing in a

field back in June. The cause of death still under investigation.

Well, the tragic downing of the Malaysian jetliner may push Europe to impose tougher sanctions on Moscow over its support for those separatists

in Ukraine. European foreign ministers are meeting now in Brussels to weigh their options. They have scheduled a news conference for about an

hour or so from now.

Well, so far the EU has shied away from adopting truly hard hitting measures largely because of its considerable economic dependence on Russia.

The graphic you're looking at there shows how gas from Russia spreads through Europe. In all, 30 percent of Europe's gas comes from Russia. And

Moscow also happens to be the EU's third largest trading partner. A lot of money at stake.

Now as the west works to agree on collective action against Russia, there does seem to be one -- unity on one key front, international pressure

mounting for Vladimir Putin to reign in those Russian-backed rebels in Ukraine.

Let's get to Moscow now. CNN's Diana Magnay is reporting for us from there.

Mr. Putin very much an enigma these days. How is he and Russia responding to the pressure upon him?

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Well, he's just made some statements at the beginning of a meeting of his security council here

in Moscow. And his tone has been extremely defiant and extremely defensive. He said we know that there has been a lot of pressure placed on

us to try and resolve the situation, or put pressure on the rebels in eastern Ukraine. And we will do what we can, but it is not nearly enough,

he said.

And that is, you know, in keeping with his argument that it is up to Kiev to take the initiative and sit down with rebels at the negotiating

table and come to some kind of negotiated settlement about the conflict there.

He has and maintained the line that this airplane crash had nothing to do with Russia, per se, and that Russia does no supply weapons to the

rebels. But that is simply contradicted by events on the ground. It is clear, and it has been clear for many months that Russia does supply

weapons and funding and also a flow of foreign fighters into that conflict and that Russia has effectively fueled this conflict.

And let's look at what Russia's concerns are here and why it's done so. Fundamentally it remains an issue of the fact that Russia just does

not want NATO or the EU on its borders. And so today the Russian president has come out and said, first of all don't meddle in our internal affairs.

And secondly we are going to build up our defenses, our military capabilities, against NATO.

And there you see these old anxieties of Russia coming to the fore once again, that that is fundamentally what this conflict has been about.

And the question is does he really want it to end? He doesn't want to see Ukraine beat the rebels militarily, because then it will all become one

Ukraine and he won't have a buffer against these things that he's scared about.

So it's a very, very complex situation surrounding this terrible tragedy.

But of course, you know, at the end of the day, Michael, the Russians never saw this coming when they were sending weapons in to these fighters,

something which they still deny, they could never have anticipated that it would have been a passenger jet that was blown out of the sky that day,

Michael.

HOLMES: Yeah, and of course Vladimir Putin very much of the old school, somebody who lamented the breakup of the Soviet Union and in the

eyes of many analysts missing those good old days.

You know, there's been a lot of theories, many of them bizarre, coming out of Russia as to what might have happened. Is that in many ways playing

to the home crowd, if you like, to keep Russian opinion on the side of the Russian leadership? because his popularity polls are still pretty much

through the roof.

MAGNAY: Absolutely. They are sky high right now. And Putin has -- Mr. Putin has positioned himself as a strongman and his defiance of the

west in the face of sanctions, in the face of international condemnation, has only served to reinforce that image back home and to reinforce this

kind of nationalist groundswell that is keeping him up.

The only thing that would change that is if the economy starts to buckle under tougher international sanctions. It's nowhere near that yet.

And that is why the decisions that are made by EU foreign ministers now and in the weeks to come will be so crucial on -- in terms of possibly seeing

some kind of resolution to this conflict.

HOLMES: All right, Diana, thanks so much. Diana Magnay there in Moscow for us.

Let's get the view from Ukraine now. CNN's Kyung Lah joins us now from Kiev. A very different point of view going on where you are.

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: Absolutely. The exact opposite, in fact, of what we're seeing in Moscow.

What Ukraine is saying is what you're seeing coming out of the Kremlin is simply a propaganda war. What they have is intelligence. The spy chief

here telling CNN that it's not just pro-Russian rebels who are at fault here, he went even further saying it was Russian officers who pressed the

button on the missile launchers.

(BEGIN VIDEO CLIP)

LAH: This wasn't a drunk rebel sitting on top of the missile.

VITALIY NAYDA, UKRAINIAN DIRECTOR OF INFORMATIONAL SECURITY: No.

LAH: You believe that was a Russian?

NAYDA: Absolutely.

LAH: A Russian-trained...

NAYDA: A Russian-trained, well-equipped, well educated officer.

LAH: Who pushed that button.

NAYDA: Who pushed the button.

LAH: And do you think at this...

NAYDA: Deliberately.

LAH: Deliberately?

NAYDA: Exactly.

(END VIDEO CLIP)

LAH: Now, why would he say that? Russian officer says the Ukraine spy chief would only be the ones who have the training to be able to

operate it. He says that the evidence also shows the missile launcher that they suspect was used went from the Ukraine after the flight 17 was shot

down was then seen slipping back into Russia.

The spy chief also saying that what Russia is trying to do is distort the facts that they have intelligence here and that will eventually prove

and support the international condemnation that we're already seeing. Russia for its part, as you heard Diana say, has been denying all of this

outright, blanket denial. And as far as the pro-Russian rebels, what we heard yesterday, Michael, is that those rebels are saying that this is an

information war coming out of Ukraine -- Michael.

HOLMES: Kyung Lah, thanks so much. Good to see you. Thanks for that.

All right, although it is believed MH17 was flying in authorized airspace at the time it crashed, it was still nevertheless flying over a

warzone, of course.

Most airlines are now prohibited from flying over that part of Ukraine due to obvious safety concerns and that has caused many flights from Asia

to Europe to adjust their routes.

But this is also leading to this bizarre situation seemingly. A Malaysia Airlines flight from Kuala Lumpur to London didn't fly over the

Ukraine but over Syria instead right past the city of Homs, that's according to Flight Radar 24 which follows air traffic around the world.

Malaysia Airlines said it is an approved international route not subject to any restrictions. It is worth noting that flying over conflict

zones is not completely uncommon. Other planes, for example, were near MH17 when it was shot down.

Well, Typhoon Matmo is closing in on Taiwan. We are awaiting its landfall. But all that goes with it has already arrived. We've got the

details coming up in weather just ahead.

(COMMERCIAL BREAK)

HOLMES: As a young girl, Bobbi Brown was enthralled by cosmetics. She became a makeup artist and indeed one of the best at that. And then

she stepped back, took a look at the tools of her trade, the makeup itself and it occurred to her that she could do better.

This week's Leading Women catches up with beauty guru Bobbi Brown.

(BEGIN VIDEOTAPE)

BOBBI BROWN, BOBBI BROWN COSMETICS: All these women, they look different. They're different ages. And they all inspire me for different

reasons.

POPPY HARLOW, CNN CORRESPONDENT: Bobbi Brown is a legend in the big business of beauty.

BROWN: That sells really well.

HARLOW: After launching her first lipstick line in 1991 she's become one of the biggest names in makeup.

Say you've done Michelle Obama's makeup?

BROWN: I have done Mrs. Obama's makeup, yeah. It was amazing.

HARLOW: Estee Lauder bought Bobbi Brown cosmetics in 1995, but Brown retains full creative control of her ever expanding empire with a reported

$1 billion in annual sales.

I have read that Bobbi Brown sells 21 million units of products every year, that's about 2,400 per hour.

BROWN: You're good a math. I'm not so good at math.

HARLOW; Surprisingly, Brown never thought she'd be a business woman. She learned entrepreneurship from her grandfather Papa Sam who immigrated

to the U.S. from Russia and opened a car dealership.

BROWN: You know, as a kid I grew up watching him to send letters to all his customers and invite the guys from the car dealership over to the

house. And, you know, he's an amazing -- he was an amazing role model.

HARLOW: You've described yourself as type A minus.

BROWN: I'm A minus, because I also enjoy things that are not about my work. I enjoy my husband. I enjoy my kids.

HARLOW: So where is the balance between work and family?

Do you believe in that idea of having it all as a working mom?

BROWN: Well, I think it's not just for women having it all, it's men too. My husband, you know, has an amazing career. He's also -- you know,

had been the coach of every kids game. And, you know, for me having it all is loving my job, is actually having friends I care about, being at my kids

things that are really important and doing all the things that work that really matter.

Confidence is what makes you comfortable and it definitely is something that I evolved into. And I don't think I felt it until I was 40.

HARLOW: Brown took her message to this year's Forbes Women's Summit.

BROWN: Now all women would afford makeup so we started working with Dress For Success to help women go from welfare to work.

HARLOW: What do you think the role of your product, this brand is in an industry that has been heavily criticized for making girls feel like

they're not good enough?

BROWN: By teaching a woman or a girl how to cover a dark circle, how to cover a blemish, how to put a little blush on your cheek, how to make

your lines in your face look better, by teaching women how to do these things to empower -- will empower them to be their selves.

HARLOW: She credits her assistants for much of her success. That has gotten her far. But like all of us, she stumbled along the way.

BROWN: The biggest mistake I've made has definitely been worrying about what people think. You know, the way that I manage my teams is a

very human, you know, trait. And, you know, yes you care about what people think, but sometimes you have to, you know, make tough decisions based on

the business. And that's not always easy.

(END VIDEOTAPE)

HOLMES: And still to come here on News Stream, Spanish football club Real Madrid has snapped up another star player. We'll take a look at the

young Colombian who has just signed on for the reigning European champions.

(COMMERCIAL BREAK)

HOLMES: All right, yesterday we were telling you about that typhoon heading towards Taiwan, Mari Ramos joins us now with the latest on its

progress. Mari, what -- I remember yesterday you were telling us about staggering amounts of rain.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Yeah, I figure right now they've got about half of the rain that they're going to get, because only

half of the storm has moved through Taiwan. Actually the center of the storm is just offshore right now.

This is the latest radar. Look how impressive this looks just this very impressive looking storm. You can see the circulation as it continues

to move that eyewall starting to approach the coastline right now here across the southern portion of Taiwan, the eye way back here.

It is around the eyewall, within this area right there, that is where you will find the strongest winds. But the rain has been moving through

this area already for about 24 hours, since we spoke yesterday Michael. So this is pretty significant stuff.

I want to show you some of the rainfall totals that we've had so far. In Lanyu, one of the areas most affect, they've had already over 287

millimeters of rain. Go ahead and expect about that much as we head through the next 24 hours as the second half of the storm moves through

here.

In Yuli, they've had over 166 millimeters of rain. So also expect that number to double, at least, as we head through the next 24 hours.

There are heavy rain warnings in Taipei, especially for the mountains and also the threat for landslides, so this is a huge concern.

The winds are a factor, but most of these areas and most of the structures in Taiwan are built to typhoons of this strength. They are a

shelter in place society. In other words, most people will stay where they're at in their homes while the storm moves on through.

160 kilometer per hour winds. and then, here's another perspective if that storm as it continues to move landfall imminent now. And landfall is

when the eye actually that circle I showed you actually moves on shore. And that should happen within the next hour or so across that southern

portion of Taiwan with that rain continuing to affect the area.

And it's expecting a widespread area. And already those outer bands are already starting to affect parts of china as well. And that's where

the storm is headed next.

As it interacts with land it probably will lose a little bit of intensity become then to a minimal typhoon. And while the winds, again,

are a big concern, I am much more concerned about the rain. Remember, some of these areas have been flooding for awhile already. And while they need

the rainfall this time of year, I'm concerned about the threat for flooding and mudslides also as it heads into mainland China.

It looks like Shanghai you will miss most of the rain, but places farther to the west will be the ones to see, I think, the heavier downpour.

So definitely something to watch even in the next couple of days to come.

This is Wednesday at 3:00 in the morning local time for Taiwan. It looks like Taipei you'll get close to typhoon strength winds. I think the

main concern for Taipei, again, is going to be the rain. But notice, that's when the strongest winds move across this area through Taiwan. They

move back out over the water. There you see the eye. And then very close to Fujao (ph), that's where we're going to see that eye make landfall

across mainland China as we head through the day on Thursday local time.

So through a day-and-a-half from now that's pretty significant.

And the rain will be significant also across that region, but I'm not expecting it to be as bad as the additional rainfall that we're expecting

across Taiwan here.

So on top of what already fell, these are the new rainfall totals that we can expect on top of that. And that's going to again lead to flooding

and mudslides and a huge, huge concern.

And remember how I told you that we can still see rain even after the storm starts moving away? That's what's happening here across the

Philippines. They're still in the flow of this typhoon and they're getting some very heavy rain across the northern Philippines, in particular, and

then back over to the central and southern Philippines. And yes there is this to contend with. There is a new area that is forming. It's almost

like these are like right in line, Michael, one right after the other beginning to form. Cyclogenesis, this area is like a birthing place for

tropical cyclones and there is another one in the making right here. You see it there on the map.

Back to you.

HOLMES: All right, Mari, thanks for that. Mari Ramos there.

All right, I want to bring you an update on one of our big stories today, one we reported on just a short time ago, that is that unexpected

twist in Indonesia's presidential election, one of the candidates withdrawing from the race claiming irregularities. Here's what the former

military general Prabowo Subianto had to say.

(BEGIN VIDEO CLIP)

PRABOWO SUBIANTO, INDONESIAN PRESIDENTIAL CANDIDAT (through translator): After massive structural and systematic cheating during the

2014 election we, the presidential and vice presidential candidate after receiving the mandate of the people exercise our constitutional right to

reject the presidential election and declare it unconstitutional.

We withdraw ourselves from the process.

(END VIDEO CLIP)

HOLMES: All right, the official results are expected out very shortly. We will bring those to you, of course, when they come out right

here on CNN.

All right, Real Madrid have a new star, James Rodriguez. The European champions say they have just signed the World Cup's top scorer to their

roster. For more on Colombia's star player and the big move let's got to CNN's Alex Thomas -- World Sport's Alex Thomas. Oh, everybody owns you.

You belong to the world.

Tell us about this and how important it is?

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Michael this is a man that really lit up what was an entertaining World Cup. James Rodriguez ending

up as the top scorer, the winner of the golden boot award given to the man with the most goals in that tournament. And at just 23 years of age -- he

had his birthday during the World Cup -- he's arguably the most exciting football talent on the planet right now. so no wonder perhaps that he's

gone to a Real Madrid whose president is the second time Florentino Perez, the man we might all remember, who oversaw the famous (inaudible) when he

was last in charge of Real around a decade or so ago bringing in the likes of Zidane and Beckham, someone who signed a world class star every year.

And maybe we're getting back to those days. It's the latest barrage if you like in a bit of a kind of transfer war between the two biggest

clubs in Spain, Barcelona and Real Madrid. And let's not forget, Michael, that both these clubs missed out on Spain's La Liga title to their small

neighbors Atletico Madrid last season. So, the way the transfers have gone this, we've got some very big names going to both those clubs. And

Atletico may struggle to defend their title.

HOLMES: All right. Alex, appreciate that. Thanks very much. Alex Thomas there for us.

All right, now to a very different type of sporting event, a Chinese team has won the most lucrative prize ever in competitive video gaming, $5

million. My teenaged son would have like to have been part of that. This all happened at the International -- that an annual tournament -- for Dota

2.

And for those who don't know, like me, it is an online game for PCs that pits two teams of five against each other in a battle arena.

A team called Newbie defeated another Chines team in the competition which was in Seattle. And as all five members get to split the $5 million

prize it means they are now all millionaires.

Never heard of it. But clearly lucrative.

That is News Stream for you. The news continues, though, as it always does here at CNN. World Business Today is next.

END