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NEWS STREAM

Celebrity Accounts Targeted, Nude Photos Leaked; Pro-Russian Rebels Taking Ground In Southern Ukraine; A Look at the Cult of Xiaomi; Leading Women: HSN CEO Mindy Grossman; A Tribute To CNN Photojournalist Sarmad Qaseera; NATO To Bolster Troops In Eastern Europe

Aired September 02, 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 fighting intensifies in eastern Ukraine amid calls for peace.

We'll take a closer look at the site where hacked pictures of nude celebrities first appeared.

And executives sing and dance on stage in front of cheering fans. We look at the cult of Xiaomi, China's biggest smartphone maker.

We start in Ukraine where government forces are being pushed back by a surge from pro-Russian separatists in the east. Now the Russian foreign

minister Sergey Lavrov is calling on Washington to use its sway with Kiev to call for peace.

Now meanwhile, NATO says it is creating a rapid reaction force to respond to the growing Russian threat in Eastern Europe.

Now the U.S. says the force would be defensive in nature, not provocative. And the European Union could decide on new sanctions against

Russia this week.

Now Moscow continues to deny its forces are in the east, but the Ukrainian military says a Russian army tank attacked a number of airfields

on Monday, including one in Luhansk, that after Moscow warned Ukraine's military to retreat from civilian areas.

Now lets head to Ukraine now and CNN's Reza Sayah joins me live from the capital of Kiev with more. And Reza, pro-Russian forces, they are

making gains there in Ukraine. So what is Kiev saying about this advance?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Yeah, Kristie, Kiev is simply sounding the alarm, they're continuing the sharp accusations against

Moscow, essentially describing this conflict as a Russian invasion. And you're hearing this kind of rhetoric out of Kiev very likely because

they're losing on the battlefield. It's been a disastrous week for them over the past several days. Hundreds of Ukrainian soldiers have either

stopped fighting, retreated, or they've been encircled and trapped. Many others have been injured or killed.

And they're suffering losses when it comes to territory. A significant loss came yesterday, a critical airport, in the rebel

stronghold of Luhansk. This was an airport, an airfield that was in the control of Ukrainian forces until yesterday and then it came under attack

by rebels. The Ukrainian forces retreated. The rebels, Kiev, also accusing Moscow of being part of that attack, saying that it involved

tanks.

Of course, Moscow continues to deny that they have tanks and troops on Ukrainian soil.

We're also watching closely the critical seaport of Mariupol just about 15 to 20 kilometers east of that location. You have pro-Russian

rebels seemingly stalking this city poised for an attack. They haven't gone in yet, Kristie, and I think what happens there will depend a lot in

what happens in the coming days with the NATO summit and the talks in Belarus.

LU STOUT: Yeah, it sounds like the situation there is escalating. What's the international response here? What is NATO saying about how to

end the crisis?

SAYAH: Yeah, based on what we are hearing NATO hasn't come up with a solution that looks like a compromise. Essentially, they've hurled

accusations at Moscow as well. They're calling this an invasion as well. We'll see what happens during this summit in Wales, but leading into this

summit yesterday, Anders Fogh Rasumussen, NATO secretary-general, made a statement with a lot of undertones that Moscow will be very concerned

about.

Remember, Moscow's big concern is NATO expansion near its border. They don't want bases close to their border. Even so, yesterday, Mr.

Rasmussen saying, suggesting, that they might have to expand their bases, bolster their capabilities in the region. And again, that's something that

Moscow is very likely going to be concerned about. Their position is how can you ask us to de-escalate when you're suggesting more NATO bases in the

region?

LU STOUT: Now pro-Russian forces on the move in Ukraine, the rhetoric is rising. There needs to be a solution here. We know that talks took

place between Ukraine officials, Russian envoys and rebels. That happened on Monday, ended without any sort of agreement.

So what are the hopes here of diplomacy, of a negotiated piece?

SAYAH: Yeah, no breakthrough yesterday in Belarus, but perhaps some positive signals, signals that perhaps the pro-Russian rebels are easing

off their position and demands for an independent state in southeastern Ukraine.

Essentially yesterday they said that they would be satisfied with any kind of guarantee of a autonomy and self-determination. And in return,

they would support a united and sovereign Ukraine. That seems to be a position that matches what Moscow wants. Again, there wasn't a

breakthrough yesterday. So many people eager to see the reaction to this new position by the pro-Russian rebels from Kiev in western capitals.

But unfortunately at this point, no indication of a negotiated solution right now.

LU STOUT: All right, Reza Sayah reporting live in Kiev for us. Thank you very much indeed.

Now in Iraq, more than 100 angry family members of ISIS victims have stormed (inaudible) about the fate of their loved ones who were serving in

the military near Tikrit when they were attacked by the militants in June.

A massacre allegedly followed. And now the group is refusing to leave until officials address their concerns.

Meanwhile, in the ground offensive against ISIS extremists, Iraqi Kurdish forces and Shiite militia have reportedly retaken the northern town

of Suleiman Baig (ph), which had been a key militant stronghold.

Amnesty International has just released a report with new evidence showing that the ISIS offensive has given way to historic levels of ethnic

cleansing in northern Iraq. In the city of Mosul, residents are living in fear, they're horrified at the brutality carried out by ISIS militants who

control their city.

Anna Coren has more.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: When ISIS brazenly took control of Iraq's second largest city back in June, it sent shockwaves

throughout the country and the region. Alienated by the Maliki government and persecuted by his security forces, Mosul was fertile ground for the

militants.

But nearly three months after ISIS raised its black banner over the city, residents describe heavy-handed oppression and brutality under the

rule of these Islamic extremists.

"When they first came to Mosul, they told us they would protect and that this was a revolution," explains this man too afraid to reveal his

identity. "But after the people got to know ISIS, they felt hatred towards them."

The people of Mosul now live in fear of arbitrary arrests, punishment and death with eyewitness reports of a young man accused of adultery

publicly stoned to death. Conditions in the city are rapidly deteriorating with shortages of power, food and medicine.

"We are afraid to even go out," says this woman who must wear a veil and be accompanied by a male relative. "The best freedom is to stay inside

your house. We have known true Islam for years, but we have never seen anything like this."

It was here in Mosul that ISIS leader Abu Bakar al-Baghdadi made his only appearance as the self-declared caliph of a new so-called Islamic

State, but to the residents, his vision bears no resemblance to their beliefs.

"1,400 years we have believed in Islam and we have never seen this. How is it possible that they came up with a whole different interpretation

of Islam? This is a stupid interpretation." He adds that ISIS forced them to swear allegiance or face death.

For those who escaped, like these businessmen who spoke to us on the condition we wouldn't show their faces, it's been torture with family and

friends still in Mosul.

"I speak to my family on the phone. They say we wish we would die only to be free. We never wanted to live under their control, all the

people of Mosul are now imprisoned."

They believe there are people planning to resist ISIS. Last week, a group claiming to be an armed opposition to the militants posted this

video.

But the businessmen say ISIS and its supporters are too powerful and can't be defeated without outside assistance, a move that would involve

enormous risk.

"We fear they will use the people of Mosul as human shields," says this man. We need the international community to help."

But if no one comes to their rescue, they morbidly believe the only safe haven for the people of Mosul is death.

Anna Coren, CNN, Irbil, Kurdistan, Iraq.

(END VIDEOTAPE)

LU STOUT: In Pakistan, lawmakers have been holding an emergency session of parliament on the mass anti-government protests taking place in

the capital Islamabad.

Now Prime Minister Nawaz Sharif is facing growing calls to resign by thousands of demonstrators led by cricketer turned politician Imran Khan.

Sharif is accused of rigging last year's election.

On Monday, police fired tear gas at protesters after clashes broke out. Now the Pakistani military was also called in to protect the state

run TV station. Three people have died and hundreds have been injured since the protests began in mid-August.

You're watching News Stream, coming up this hour the FBI jumps into the hunt for the hacker who stole dozens of private celebrity photos that

may have been stored on the cloud.

And, CNN travels exclusively into Liberia's Ebola quarantine zone. Residents there are living in fear and desperation as death hangs over the

area.

Also ahead on the program, the Chinese smartphone maker Xiaomi has climbed the top spot on home turf, but does it have what it takes to

conquer the rest of the world, or does it even want to?

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now U.S. federal investigators are looking into a celebrity hacking case after nude photos of several Hollywood stars are released to the

public.

Now they were first posted to 4Chan on Sunday.

Now if you haven't heard of 4Chan, the site describes itself as a, quote, "simple image based bulletin board." Now it was founded back in

2003. It lets its millions of users post things anonymously.

Now its creator, Christopher Poole won TIME magazine's online poll for world's most influential person in 2009. 4Chan users hacked the result.

Now 4Chan was also behind the LOLCats meme and the Rick Rolling craze.

But it also has this darker and seedier side. Some boards feature graphic images of sex and violence. And the site is considered the

precursor to Anonymous, which has also been behind several high profile hacks.

Now let's get the latest now on the federal investigation into this mass hacking case. CNN's Justice Correspondent Pamela Brown joins us now

live from Washington bureau -- Pamela.

PAMELA BROWN, CNN CORRESPONDENT: Well, we've learned that FBI agents in Los Angeles have been in contact with some of the alleged victims as

part of the computer intrusion investigation it has opened up in the wake of this. These nude photographs of celebs, such as Jennifer Lawrence

servicing on sites like Reddit, Twitter, Tumblr, other sites on Sunday.

So over the next few days agents will be interviewing the alleged victims. They will likely be in touch with Apple in an effort to find out

who the hacker or hackers are that leaked these nude pictures of them.

So, there are a couple of potential issues cyber crimes investigators are going to be looking at. Of course, computer intrusion and allegations

proprietary information was stolen. And investigators will be looking at the way the photos were hacked. Each case is different and sometimes you

see a hacker figuring out passwords, using malware or more sophisticated methods to gain access to proprietary information.

In this case, we see allegations that pictures were taken from the Apple iCloud. But of course as we mentioned, every case is investigated

differently. The motive can be monetary in nature, the MO can be different, players can be different. At this point, we simply don't know

who is responsible. But investigators have just launched this investigation and that is really what they're focused on right now.

LU STOUT: Yeah, the FBI they're now on the case investigating who could have been behind this and also the motive as well.

And Pamela, have there been other cases like this one?

BROWN: There have not only with celebrities. I mean, there have been several cases like this in the U.S. And the FBI has been investigating

those. In fact, a few years ago, a Florida man was found guilty of wire- tapping and unauthorized access to a computer after he gained access to the emails of more than 50 celebrities such as Scarlett Johannson and Mila

Kunis through just figuring out their passwords. In that case, he was sentenced to 10 years in jail.

And normally these cyber crimes cases fall within the FBI's purview, so it's not surprising that they're involved in this latest case.

LU STOUT: All right, Pamela Brown reporting for us live from Washington. Thank you very much indeed.

Now the hack has led some to question the wisdom of storing data in the cloud. Now safe to say that many don't really understand the cloud.

Well, the Cameron Diaz movie is called Sex Tape is based around the idea that nobody understands how data syncs with the cloud.

(BEGIN VIDEO CLIP)

CAMERON DIAZ, ACTRESS: What if it gets out on the Internet?

We have to get that back right now.

UNIDENTIFIED MALE: I was using that.

UNIDENTIFIED MALE: It went up. It went up to the cloud.

DIAZ: You can't get it down from the cloud?

UNIDENTIFIED MALE: Nobody understands the cloud. It's a mystery.

(END VIDEO CLIP)

LU STOUT: Now, it's not a mystery, it's actually fairly simple. You can think of cloud computing as being like outsourcing. Now, instead of

storing data on your iPad or computer, its stored in a server on the internet. In a sense, storing photos in the cloud it's a little bit like

putting money in a bank. You're putting your property in this dedicated storage space. It means you don't have to keep all your money at home, or

keep all your photos on your iPad.

But when you do want to see your photos, the cloud allows you to access it on any device, similar to how banks allow you to withdraw money

from any ATM.

And it's not a new idea, in 1996, Hotmail became one of the first ever webmail companies, an early example of moving data to the cloud that still

exists today in the form of Outlook, Gmail, or Yahoo Mail.

Now, the race to control the Ebola virus is gaining speed. And coming up next on News Stream, we'll tell you what health authorities in the U.S.

are doing. Stick around.

(COMMERCIAL BREAK)

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

Now let's bring it up again. You're looking at a visual version of all those stories we've got in the show today. We started with the crisis

in Ukraine where pro-Russian rebels are pushing back government forces.

Now later in the program, we'll tell you about the cult of Xiaomi, China's leading smartphone maker has an incredibly passionate following.

But now to the deadly Ebola outbreak. Now the first human trials of an experimental Ebola vaccine, they begin this week at the U.S. National

Institutes of Health. But the director of the U.S. Centers for Disease Control says that cannot be counted on to stop the current outbreak in West

Africa.

Dr. Tom Frieden recently visited Liberia and says the situation is even worse than he feared.

Now the virus has killed more than 1,500 people so far. Now Frieden says the world must help West Africa now in order to stop the further

spread of the disease.

(BEGIN VIDEO CLIP)

TOM FRIEDEN, DIRECTOR, CDC: The measures that have been taken that have made it harder to fly in and fly out have made it harder to get help

in, harder to control the epidemic and therefore paradoxically have increased risk to other places. I had to scramble to leave a day early,

because my flight was canceled. To get from one country to another I had to hope onto a UN plane because my

flight was canceled.

So this is making it really hard to get help in and to respond effectively to the outbreak.

We can't reject these countries. They're part of the world. And the longer the outbreak and epidemic goes on there, the more that all of us are

potentially at risk.

(END VIDEO CLIP)

LU STOUT: And that was Dr. Tom Frieden of the CDC speaking there.

Now Liberia is the hardest hit nation in this outbreak. Now quarantine zones have been set up there to limit the spread of the virus.

Nima Elbagir travels deep inside one in this exclusive report.

(BEGIN VIDEOTAPE)

NIMA ELBABIR, CNN INTERNATIONAL CORRESPONDENT: The Lofa County, Liberia health team are on their way out. Gloves, gowns and bleach are

coming with them. The locals call the area Ebola country.

For months, Alpha Tamba and his team have been called out every day to suspected cases. Today, we're going with them.

A woman suspected of Ebola has died and they're going to bury her. To come anywhere near the body we have to suit up as well.

First, the team leader sprays her house with bleach, then and only then, can the rest of the team can enter.

As the body is carried out, the family mourns from a distance. This is the closest they will get to a goodbye.

Everything that has come into contact with the body or with any surroundings that the deceased woman might have touched before she died has

to be thrown in and has to be disposed of. It is the only safe way.

From the burial, the team travels to Zango Town. Half the population here have either died or fled, many not even stopping to carry their

belongings.

Why are these houses abandoned?

Kazalee Johnson told us he lost his eight-month-pregnant sister, his brother, niece, and many others, too many to name.

KAZALEE JOHNSON, RESIDENT (subtitles): They died, they died. There were nine persons living in this house. Seven of them died.

ELBAGIR: From Zango we go further into the jungle through a quarantine gate into nearby Barkedu. Some 8,000 people live here. No one

has been allowed to leave. This community has been completely isolated. Of the over 1,000 deaths from Ebola in the entire country, 20 percent have

died in this town.

The town chief tells us they're worried if the virus doesn't kill them, hunger and disease will.

This is what it's like across Lofa, locked in, afraid and alone.

Sometimes the county health workers are called in to investigate a case. And when they get there, they discover it's actually one of their

own. This clinic had to be locked up after all of the health workers in it contracted Ebola, only one of them survived.

ALPHA TAMBA, EBOLA RESPONSE TEAM MEMBER: It's heartbreaking. Sometimes we go to bed and we dream of nothing else but Ebola, Ebola, Ebola

nothing else.

ELBAGIR: You have nightmares?

TAMBA: Yes, yes.

ELBAGIR: In spite of the risks and the fear, Tamba says he and his team will continue to do whatever they can.

TAMBA: Staying at home or running away from Ebola. It's not a solution.

ELBAGIR: Nima Elbagir, CNN, Lofa County, Liberia.

(END VIDEOTAPE)

LU STOUT: Desperate scenes there.

You're watching CNN News Stream. And coming up next, a CNN reporter reveals more about his unusual trip inside North Korea, one day after he

met with three Americans detained by the secretive state.

And the secrets behind the success of Xiaomi. Up next, I meet he man who is taking China's cult smartphone brand global.

(COMMERCIAL BREAK)

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

Now families of Iraqi military forces who were attacked by ISIS fighters in June have stormed the parliament building in Baghdad. They are

refusing to leave until officials tell them more about the alleged massacre of Iraqi forces and cadets.

The Somali governor says the U.S. has carried out a drone strike on leaders of the militant group al Shabaab in southern Somalia. He did not

give any details on casualties. Now the Pentagon would only say it carried out an operation in Somalia.

Now Russian foreign minister Sergey Lavrov is calling on Washington and Europe to push for negotiations and stop making threats over eastern

Ukraine. Now meanwhile, Kiev says a Russian army tank attacked air fields in the east on Monday.

Now as civilian casualties mount, the battle for control in eastern Ukraine, many in the city of Donetsk are turning their anger toward

President Poroshenko. Diana Magnay has more.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN INTERANTIONAL CORRESPONDENT: Petro Poroshenko will have a hard time winning back hearts and minds in this city as the people

of Donetsk sweep up the debris of their homes and livelihoods, they are hardened against a president, they say, is killing his own people.

"We are Ukrainian, but they kill us," this man says. "So, we probably need our own country, because these people in Kiev they are not brothers

for us."

The shells hit these homes days ago, but the tears are still fresh.

UNIDENTIFIED FEMALE (through translator): We live underground. It was so hard for two weeks, especially for 27, 28, 29th. But only today

it's quiet.

Sorry, sorry. I need to go.

MAGNAY: Two people were killed outside this block of flats last Wednesday, one of them was a 50-year-old woman, the other a 34-year-old

woman. Her husband, who won't talk to us -- he says he's in shock -- managed to make it down to the cellar with their little child, but she just

didn't have the time. And this is a story that repeats itself over and over in dozens of apartment blocks with civilians being killed by the

constant shelling around Donetsk.

The city's trauma hospital is filled with the civilian wounded, shrapnel embedded in the flesh and bone of market seller's legs. The

broken limbs of pensioners far too old to run.

"There was one war, and this is the second war," this old lady tells me. "I was born in 1940 in World War II and I will probably die before

this war is over."

Valentina Propova (ph) in the next door ward lost her leg and her arm to indiscriminate artillery shells. Switching to the Ukrainian language,

she makes a heartrending plea to the president.

"We used to dance, sing, do everything in Ukrainian," she says. "Poroshenko, Mr. Poroshenko, please listen to us. Why don't you understand

your people? Be a man, be human. Please stop your aggression. Stop this war."

But there is little sign of that. This once thriving city is now half-empty, its railway stationed bombed.

The forces unleashed by this conflict greater, perhaps, than Mr. Poroshenko can control.

Diana Magnay, CNN, Donetsk, Ukraine.

(END VIDEOTAPE)

LU STOUT: And you can find out much more on Ukraine, the crisis there on our website, including this piece looking at what the west can do about

Russia's actions in Ukraine. It's written by CNN's Matthew Chance. You can find it CNN.com.

Now the next seven days are shaping up to be huge for the smartphone market. Now three major tech companies are holding events in the week

ahead.

First up, Samsung. Tomorrow, they're set to unveil the latest in their Galaxy Note line.

Now the original Galaxy Note is arguably responsible for the trend of larger smartphones. So it'll be interesting to see what Samsung has

planned next.

Now on Thursday, Microsoft will show off a new Lumia handset. And it will reportedly be a selfie phone, which presumably means it will have a

good camera on the front instead of the back.

Next week, sees a big one, Apple is holding an event on September 9. Reports say that Apple will unveil two larger iPhones and a new wearable

device.

Now there's another smartphone maker that's come onto the scene as a leading player: Xiaomi.

Now the Chinese company is known for its rabid fan following and for having the market cornered in China. Now we went to a fan event here in

Hong Kong this weekend and had the chance to sit down with Xiaomi executive Hugo Barra.

(BEGIN VIDEOTAPE)

LU STOUT: Executives dancing on stage in front of cheering fans. Xiaomi is not your average tech company. Just a few years ago, it was a

niche player, but Xiaomi is now China's top smartphone maker.

And the fans were pretty clear on why the company has been so successful.

UNIDENTIFIED FEMALE (through translator): You pay a very reasonable price for a very good product.

UNIDENTIFIED MALE (through translator): The products are cheaper.

UNIDENTIFIED FEMALE (through translator): They have good products, also it's cheap.

LU STOUT: Xiaomi gained these fans with low prices, but they're trying to keep them with fan events like this one, holding games to win

free prizes, plush toys, portable chargers and even phones.

Xiaomi Vice President Hugo Barra joined the company one year ago when he left Google for Beijing. I asked him whether Xiaomi's success is

sustainable.

HUGO BARRA, XIAOMI VICE PRESIDENT: We're not just a smartphone vendor. In fact, you could say that we're an internet platform company

before we are a smartphone vendor.

LU STOUT: Because of ecommerce.

BARRA: Because of ecommerce, but also because we build an internet connected operating system. We call it MiUI. And the phones are actually

the delivery vehicle for the software. We made the phones because it was the best way to get that software into the hands of as many people as

possible, right.

So we're thinking from a software perspective, we're not thinking from a hardware or smartphone perspective.

But, you know, when you look at it from a distance, it looks like we're just another smartphone vendor. But that's far from what we actually

are.

LU STOUT: In fact, on the record Lei Jun, one of your founders, the CEO of the company said, don't compare us to Apple, compare us to Amazon,

compare us to those types of companies.

BARRA: That's right. That's right.

Xiaomi has a bit of Google, a bit of Apple, a bit of Amazon. But that combination is completely unique. You haven't seen another company like

that yet.

LU STOUT: What about the United States' market? Do you plan to go there?

BARRA: We do plan to enter the U.S. and sort of Western Europe, so those tier one markets. But we've got to work up to that. It's not quite

the time yet. I mean it is a fiercely competitive markets. You've got to take marketing really seriously. You've got to be a grownup, right.

So, we're going to work our way there. And also because the opportunity in that market is not as significant.

LU STOUT: Yeah.

BARRA: As the opportunity in India or Brazil and so on and so forth.

So we'll get there eventually.

LU STOUT: Do you even need the U.S. market?

BARRA: Frankly don't. We don't. But of course it is the trendsetting market in the world. That's where sort of all the waves of

innovation are sent from. So it's important for us to be there, but we're not in a rush.

LU STOUT: Now, we have to talk about the allegations of Xiaomi being a copycat in terms of your product design, whether it's your smartphones or

your streaming TV devices, et cetera, a lot's been put on there on the blogs, on tech blogs, social media just comparing an Apple device or an

Apple promo to a Xiaomi promo and how they're uncannily similar.

How do you feel when you see those comparisons being made? And how do you respond to them?

BARRA: Yeah, so it's hard to respond to, you know, an accusation or like a point of view that comes from someone who actually hasn't even used

our products, right. The majority of these stories and posts that have come out there, they're coming, many of them, from Silicon Valley. And we

haven't had our products in the hands of these journalists, of these users of these bloggers.

So they are making judgments based on screenshots, they're not making judgments based on real use, right. They don't understand the interaction

models that we've developed, which are, in fact, very innovative.

And what they also don't realize is that little known Xiaomi has actually been the source of ideas that have been used around the world over

the last couple of years by others.

LU STOUT: For example.

BARRA: For example, the blurry, colorful background when you have an overlayed window. That's been in our operating system for a couple of

years, right. And it was only recently introduced in another operating system.

So, I think that's where a lot of that comes from, right.

The other aspect that I would say, and it gives you a bit of insight into Chinese culture, is that we are all Apple fans. We all respect Apple

as one of the most amazing companies that has ever existed, right. So when we put up a promo on our website, you know, designed by a Chinese designer

from our team that may look like an Apple promo, that's not an attempt of copying someone because you're not creative enough, that's an attempt of

trying to live up to expectations created by the most amazing company in the world.

(END VIDEOTAPE)

LU STOUT: Hugo Barra there.

I also had a chance to ask Barra which market Xiaomi planned to target next. And he told me the Chinese smartphone giant has its eyes set on

Brazil. In fact, he'll be eventually making a move there to launch the operation.

Now CNN is taking a few moments today to pay tribute to a dear friend. And later right here on News Stream, we'll tell you about the life and work

of cameraman Sarmat Katrisa (ph) who has left us far too soon.

(COMMERCIAL BREAK)

LU STOUT: Now call her a disrupter, that's how this week's Leading Woman Mindy Grossman wants you to see her.

Now she is a CEO of HSN Inc. You may know the company for its home shopping network.

Isha Sesay finds out how Grossman helped to transform its image.

(BEGIN VIDEOTAPE)

MINDY GROSSMAN, HSN CEO: I believe the reason I really understand our consumers, I am her.

Is that a real thing?

UNIDENTIFIED MALE: Yeah.

GROSSMAN: Oh, I need that. No, I need the antler head.

I love it.

But I also like to get a good deal. So I really understand the behavior.

I'm Mindy Grossman. I'm a mom, a wife, a friend, the CEO of HSN Inc., but most of all I'm a disrupter.

ISHA SESAY, CNN CORRESPONDENT: When it comes to shopping, Mindy Grossman knows what's going to make you part with your money. She spent

decades in fashion and retail, working for iconic brands like Ralph Lauren and Nike. She's no stranger to what's hot.

GROSSMAN: So this can showcase the trends while we're showcasing them on models.

SESAY: Now, as chief executive officer of HSN Inc. she oversees a multibillion dollar retail portfolio that includes a TV shopping network

that is a powerhouse in the United States. She's credited with reinventing the network by making it, well, hip.

UNIDENTIFIED FEMALE: What's chic? What does chic mean?

SESAY: Talk to me when you first joined this company, 2006, what was it then? How was it perceived?

GROSSMAN: It was more struggling business. It wasn't exactly looked at as aspirational. Too many people only see what is right in front of

them. And I've always believed in the possibilities. So when I look at something, I don't look at what's there, I look at what it could be.

SESAY: And she feels that philosophy applies to the 6,000 employees that fall under her leadership.

GROSSMAN: Too many CEOs come into companies that aren't performing and they just assume that the people aren't talented. They never think

maybe it was the leadership that wasn't inspiring those people.

What I really wanted to understand is how could we unleash the talent that was here.

SESAY: What are some of the challenges you faced during your time here?

GROSSMAN: I would say that in the very beginning being dismissed. On one hand you take it personally, on the other hand it makes you stronger,

because I always believe that you never bet against anyone. You bet for people.

SESAY: Sure.

GROSSMAN: And that was really a learning experience.

So we are now in our main kitchen set.

SESAY: She likens her job now to being a kid in a candy store, saying if she can dream it she and her team can do it.

GROSSMAN: Every one of these is Velcro. It can pop off.

SESAY: Oh, you are kidding?

Oh, you're not kidding.

And along the way, she may sample some of the treats.

Now let me ask you, do you shop at HSN?

GROSSMAN: My husbands once was burst out laughing. I said, what is so funny? He goes, you just got a letter from yourself for being one of

the best customers at HSN.

(END VIDEOTAPE)

LU STOUT: You can learn more about all our leading women on our website. From fashion to finance, art and science, these are women at the

very top of their fields. Just go to CNN.com/LeadingWomen.

Now still to come right here on News Stream, remembering Sarmat Katsira (ph). He was a faithful friend, a loving son, an incredible

cameraman. CNN says goodbye to one of its greatest.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

And let's return to our top story now, the escalating violence in Ukraine. Diana Magnay is near Donetsk in eastern Ukraine. She joins me

now live. And Diana, what is the latest from the battlefield?

MAGNAY: Well, we're just south of the town of Ilavisk (ph), which for 23 days has been the center of a siege by the rebel forces. And they have

routed the Ukrainians from that town. We've been driving further south and came across this scene. And it really is evidence of an extremely chaotic

retreat on the part of the Ukrainians.

There is a tank, a burnt out tank down there. This is the tank turret just blown off up the road. There are other burnt out military vehicles

here. There is so much unexploded ordinance all over the ground, anti-tank mines, anti-personnel mines, shells, everything. We have cars coming up

and down this road. And there is clearly no one paying attention to whether or not they might drive over one of these things.

What is clear is that this was essentially the Ukrainian's last stand as the rebels pushed them south. And what we are seeing, Kristie, is that

the rebels are capturing quite significant chunks of new territory south of what has traditionally been -- or to this point, has been the rebel held

areas in the Donetsk and Luhansk regions.

So alongside this area in the south, the rebels are doing achieving -- capturing new ground up here. And that is, according to NATO, according to

Ukraine, partly because they are receiving assistance from Russia, not just in terms of military equipment, which they have been receiving for months

now, but also now actual Russian military units on the ground.

Now we've got to add that we haven't actually laid eyes on any Russian military units ourselves, not least because they're trying their very best

not to be filmed by international TV. And we have to have accreditations to go into all these rebel areas, to make sure that we have the correct

passes. And if we don't, there are checkpoints all along the way to stop us from going where we -- where they don't want us to go.

But NATO is clear -- is clearly convinced that Russia is very, very much involved in this conflict and that is why they are trying to reassure

their eastern member states, the Baltic states and Poland now at the NATO summit coming up at the end of the week that they have their backs. And

that is why we're hearing from the NATO secretary-general about this very high response unit that he plans to set up -- Kristie.

LU STOUT: Diana, you're reporting that these pro-Russian rebels have made significant advances, gaining chunks of territory in and around

Donetsk where you are, in Luhansk as well. And the fear is this, how close are these pro-Russian fighters to gaining enough territory to create that

land corridor from Russia toward Crimea?

MAGNAY: Well, that goes in a slightly different direction. If Russia wanted to achieve that goal, to link up its border with Crimea, it could

probably do it fairly easily as far as we can tell from the Ukrainian defenses down along the sea of Azov. But it has nowhere near the kind of

military personnel in this country at this stage to do that. It wouldn't take much for them to cross the border. We have driven up all along that

border. And there is very little to stop them beyond rolling hills.

What seems to be happening now, though, is not that they are trying to create that corridor along the coast, but that they are trying to link up

the rebel-held area with that southern patch and join it with land captured all along the Russian border. That would give the rebels the whole extent,

almost, of the Russian-Ukrainian border through which Russia could feed this conflict as it saw fit, Kristie. That is clearly the--

LU STOUT: Diana Mangay there, thank you very much indeed for giving us a full and very clear picture of the battlefield and the situation

there. Diana Magnay joining us live near Donetsk inside Ukraine. Thank you for that update.

Now time now for your global weather forecast. Rain in East Asia, other developments as well. Let's go straight to Mari Ramos for that. She

joins us from the world weather center -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, Kristie. It almost seems like nothing new, right. Rain in East Asia, it's been happening for weeks

and weeks already, but here we are toward the tail end of the rainy season and the rain continues to be relentless.

You can see a lot of activity right now moving from Shanghai and areas to the south. And then right over here in Chongqing, that's one of the

areas I want to show you, they've had some very heavy rain and deadly landslides just in the last couple of days.

I want to show you the latest video that we have from that region, let's go ahead and roll it.

You can see right over here, look at the cars driving through the flooded roads. But look over to the sides, that's not waterfalls those

are, you know, water falling down the side of the mountain. These are the same areas that have experienced landslides, many of them. At least five

people have been killed in this latest round of heavy rain. You can see the water just continuing to gush relentlessly through these river systems.

There's nothing to stop them.

There you see one example of the landslides that have been affecting this region.

We're getting a little bit of a lull in the action right now as far as the heavy rain across this area. Most of it has shifted farther toward the

east. And on its way to the east, in the north and east, we saw some very heavy rain also across parts of Beijing.

And let's go ahead and roll the next piece of video, because here the situation much different. We're talking about a huge metropolis. It

doesn't take much to cause some significant rainfall here across Beijing. Traffic nightmare, traffic chaos is the way many of you describe the

situation there in Beijing just in the last 24 hours.

They had four inches of rain. And Kristie, you used to live in Beijing, you know what I'm talking about. Four inches of rain is a huge

amount of rain for any city across northeastern China to get, but to get that, 100 millimeters of rain in just 24 hours across this area has really

caused some significant problems. The water still receded across some of the areas, but you can see the rain coming down.

Their monthly average for the month of September is 49 millimeters. So they got twice their monthly average rainfall in just one day. Pretty

significant stuff.

And I was telling you about Shanghai, almost 60 millimeters of rain already through the day on Monday only and they still have more rain on the

way right now. That's going to be pretty significant. Notice the rain continuing even as we head through the overnight hours.

And rush hour tomorrow is not going to be any fun for you. Still by 7:00 in the morning local time we're still looking at some rain showers

moving in. But, a better day for you in Beijing as far as the rain ending overnight and then we move to clearer skies after midnight and looking

better as we head into the early morning hours, Kristie, so a little bit of a change there in the weather for Beijing, but definitely some significant

rainfall. Back to you.

LU STOUT: All right, thanks for the warning there. Mari Ramos, thank you.

Now before we go we want to take a moment to remember an incredibly special man, someone who touched many lives here at CNN. His name is

Sarmat Qaseera. He traveled the world capturing incredible scenes of life, of love and war for CNN.

But on Monday, his life ended too soon at just 42 years old. Hala Gorani has this tribute.

(BEGIN VIDEOTAPE)

HALA GORANI, CNN CORRESPONDENT: He was the face behind the camera -- Egypt, Baghdad, Libya, Syria, Afghanistan, he shot our coverage of the

World Cup, the Royals tour in Australia, the pope visiting Brail, he covered it all, a dedicated hard working and passionate journalist.

As an Iraqi, Sarmad spent years covering the devastating war in his country.

SARMAD QASEERA, PHOTOJOURNALIST: As a journalist you have to be honest. At the same time, you know, like really difficult when you shoot

like your own people, like you do a story about your own people.

GORANI: He worked and reported from all over the Middle East before relocating to the United States where he was also a devoted son to his

ailing mother.

As our producer Jomana Karadsheh, who happens to be in Baghdad now, said, many people who knew him here say he escaped death in Iraq only to

have it follow him to America.

Sarmad was a people person. He was a bit silly at times and always made everyone laugh.

QASEERA: Yeah, I took shower like three days ago.

GORANI: But it's his life and his legacy that he will be remembered for, from producers to correspondents he fetched each and every person he

worked with at CNN. The overwhelming reaction to his death is a testament to the impact he had and his passing is a tremendous loss.

A loss that reminds us all of how precious and fragile life is and how suddenly it can end.

Sarmmad Qaseera, rest in peace.

(END VIDEOTAPE)

LU STOUT: My CNN colleague and anchor Michael Holmes has written a beautiful and moving tribute to Sarmad Qaseera and has memories from many

who worked with him over the years. You can find it CNN.com.

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

END