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Denmark's Controversial Program For Returning Jihadists; Iraqi Military Retaking Areas Around Baghdad; Anti-Occupy Movement In Hong Kong Claims To Hold Majority Opinion; Local Afghan Mullah Sentenced To 20 Years For Raping 10-Year-Old; What is Magic Leap?

Aired October 27, 2014 - 08:00   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 another westerner goes to fight in Syria, but he is fighting against ISIS.

A nurse in the U.S. in the middle of a fight over Ebola quarantines speaks out to CNN.

And it is attracting millions of dollars of investment, but just what is Magic Leap?

It is a significant victory in the battle against ISIS. The Iraqi prime minister says security forces have pushed militant fighters out of a

town just south of Baghdad.

It happened over the weekend. And state TV has been airing images of Iraqi soldiers celebrating the newly liberated territory, which is a mixed

Sunni-Shiite area.

Now, defending Baghdad from ISIS forces is a top priority for the Iraqi army and Shia militia fighters.

Now since launching an offensive in June, militants of the self- proclaimed Islamic State have captured parts of northern and central Iraq as well as dozens of cities in northeastern Syria.

Now U.S. and coalition forces continued airstrikes in Syria and Iraq over the weekend.

And in Syria, five airstrikes hit ISIS targets near Kobani. In Iraq, nine airstrikes hit ISIS targets around Mosul Dam and three hit targets new

Fallujah.

Now let's bring in our senior international correspondent Ben Wedeman now. He joins me live from the Iraqi capital. And Ben, we know that south

of Baghdad we have this military triumph over ISIS. You visited the area. What did you see there?

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Well, what we saw is that indeed they have taken this area -- retaken this area, which is called

Jafar al-Sakr (ph) which is about 45 kilometers to the south of Baghdad. This after a two-and-a-half day battle there.

What we saw was that indeed there were a lot of Shia militiamen there, not a lot of Iraqi soldiers, however, and that seems to be the pattern of

what we've seen when we visited front line areas. Oftentimes, the military seems to be holding up the rear, but the real fighting is being done by

these militias.

But it's not all good news from there. Overnight Sunday, there was a Humvee that was disguised as a special weapons and tactics Humvee with the

Iraqi army, but was rigged with explosives. And it killed at least 15 Shia militiamen at Jafar al-Sakr (ph).

And so it's not altogether clear how big a victory this is for the Baghdad government.

And what we've seen in the past in areas where the Iraqi army and allied militias and Sunni tribesman have been able to retake areas from

ISIS, oftentimes when their attention turns elsewhere ISIS comes back and is in control again.

And also significantly just to the west of there in Amerit al-Fallujah (ph) apparently the Iraqi army has been under fairly steady attack there

for the last few days. So, it's at best, Kristie, a mixed picture.

LU STOUT: Now a mixed picture. And even if territory is taken back from ISIS, the question is can they hold that territory.

Now meanwhile, Turkey, Ben, Turkey has said that it will allow Kurdish Peshmerga forces from Iraq to pass through Turkey to fight ISIS in Kobani

and Syria. Is that happening? Are they inside Syria? What's the latest on that?

BEN WEDEMAN: To the best of my knowledge, no, they're not there yet. They haven't been dispatched. And the Turks are obviously very cautious

about this, because they would be going, the Kurdish fighters from Iraq would be going to aid a Syrian Kurdish party that's affiliated with the

PKK, the Kurdish Worker's Party in Turkey, which Ankara has been fighting a decades long war against and considers it one of their archenemies.

So the situation there is still very unclear. And obviously Ankara is under a lot of pressure from the U.S. and other countries to make this

happen. But they're not certainly very enthusiastic about this move -- Kristie.

LU STOUT: All right, Ben Wedeman reporting live from Baghdad. Thank you, Ben.

Now foreign fighters are also getting involved in the ground battle against ISIS. Our senior international correspondent Ivan Watson joins us

now from Dohuk in northern Iraq. And Ivan, you met a former American soldier who joined the fight with the Kurds. Why does he want to fight

ISIS on the ground there?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: That's right. We crossed into one of the Kurdish enclaves in northern Syria. It's known as

Rojova (ph). We met this ex-American army soldier. He said he was attracted to the Middle East by the fall of Mosul to the ISIS militants,

that's a city in northern Iraq last June. But somehow he took a right turn and ended up fighting alongside the Kurds in an entirely different country:

Syria. Take a look at this report.

(BEGIN VIDEOTAPE)

WATSON: Armed men a common sight here in Kurdish controlled northern Syria, a country embroiled in a vicious civil war.

But one of the gunmen in this truck is not like the others.

So how do people react to you when they see you and realize you're from the U.S.?

JORDAN MATSON, AMERICANYPG FIGHTER: They ask me over for dinner at their house.

WATSON: Jordan Matson (ph) is a 28-year-old former army soldier from Sterdivent (ph), Wisconsin.

MATSON: How are you? (SPEAKING IN FOREIGN LANGUAGE).

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

MATSON: I'm good.

WATSON: For the last month, he's also been a volunteer fighter in the Kurdish militia known here as the YPG.

MATSON: I got in contact with the YPG on Facebook and I prayed about it for about a month or to and, you know, just really soulsearched and said

is this what I want to do? And eventually, you know, decided to do it.

WATSON: During his two years in the army, Matson never once saw combat or employment overseas. But soon after arriving here in Syria, he

says he ended up in a battle against ISIS.

MATSON: The second day in I got hit by a mortar in a fight.

WATSON: While recovering from shrapnel wounds, Matson went to work online, recruiting more foreigners to help the YPG fight against ISIS.

MATSON: I've had ex-military come from east -- from Eastern Europe, Western Europe, Canada, the United States, Australia, you name it they've

been asking.

You know, ISIS has threatened all of these countries that I've named to push their agenda in those nations And the veterans of those nations

who love their countries don't want to sit by while this is happening.

WATSON: Back home in Wisconsin, Matson used to work in a food packing company.

MATSON: Other than that, we just hang out in here.

WATSON: Now he lives in places like this former restaurant, converted into a militias camp.

What are the pictures?

MATSON: These are all men that have died fighting against ISIS.

WATSON: The YPG are very lightly armed guerrillas.

Is this even a flak jacket?

MATSON: No, this is just a vest to carry ammunition.

WATSON: So basically people are running into battle without even any armor.

MATSON: Yes.

WATSON: And wearing sneakers half the time.

MATSON: Yes. Combat Adidas.

WATSON: U.S. law enforcement officials say it's illegal for an American to join a Syrian militia, but Matson says being here, fighting

ISIS alongside the Kurds is a dream come true.

You could not be further from home right now.

MATSON: Yeah. I guess this is the other side of the world.

All my life I just wanted to be a soldier I guess growing up. And so this -- it just fits well over here. I'm at peace being here.

(END VIDEOTAPE)

WATSON: Kristie, the fact is that conflicts have always attracted a curious mix of adventurers, mercenaries, idealists, misfits as well.

Now Matson told me that there are at least three other Americans fighting alongside those Kurds in northern Syria against ISIS. There's

been a lot of attention about the westerners who have joined up to fight with ISIS in that terrible civil war.

But of bigger concern to countries like Turkey, for example, is that we met among those Kurdish militants from the militia called the YPG, many

Kurds, not only from Syria, but from neighboring countries like here in Iraq and many more from neighboring Turkey. It is a cross-border

phenomenon and one that is a major concern for the countries and governments in the region -- Kristie.

LU STOUT: Yeah, wide spectrum of individuals joining the fight to take on ISIS on the ground. Ivan Watson reporting live from northern Iraq,

thank you, Ivan.

You're watching News Stream. Still to come on the program, dozens of children abducted in Nigeria. Why is this still happening? And what is

the government doing about it?

And public health and human rights collide in the fight against Ebola.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now to Nigeria where there are claims Boko Haram gunmen abducted at least 30 boys and girls from a village over the weekend. It is the latest

in a string of kidnappings by the Islamist militant group that has waged a five year insurgency against the Nigerian government.

Now these abductions come despite government claims of a ceasefire with Boko Haram and the possible release of 200 girls kidnapped back in

April.

Now CNN's Isha Sesay is in the capital Abuja. She joins us now. And Isha, yet another kidnapping there in Nigeria. What more have you learned

about this new abduction?

ISHA SESAY, CNN INTERNATIONAL CORRESPONDENT: Hi there, Kristie. Yes, another abduction in northeastern Nigeria. These attacks are being near daily since the government claims of a ceasefire and a deal to

the release of those 200 plus girls. What we know is that this latest attack happening on the weekend, suspected Boko Haram militants striking

the village of Matta (ph) in Borno State, making off with 30 children, children as young as 11 years old, boys as young as 13 we are told, girls

as young as 11, making off with them and heading into the bush.

For the residents of this village, they tell local journalists that CNN has been speaking to that this is the work of Boko Haram and such is

the fear, Kristie, that local residents have left their homes and have moved to the state capital in search of greater security. It's worth

pointing out to our viewers that these attacks are happening in areas in this country that are supposed to be under a state of emergency and yet

these attacks go on.

They go on in the face of these government statements, Kristie.

We continue to ask the government what kind of deal could possibly be in place if we're seeing such attacks. They maintain that this is not the

work of Boko Haram telling us that Boko Haram has said to the Nigerian government to them that they are not responsible for these attacks, which

begs the question of who is, and really what does it mean for going forward? What does it mean for any deal regarding these girls' release?

What we can say for certain is that the instability and the fear for the people in parts of northeastern Nigeria. That goes on -- Kristie.

LU STOUT: Children, women and girls in northern Nigeria still remain very, very vulnerable. So what is the Nigerian government and the military

doing to stop more raids and kidnappings and to finally return the over 200 girls who were taken back in April?

SESAY: All right, well lets start with the girls that were taken back in April, some 219 remain in custody some six months on.

The Nigerian government says the talks continue in nearby Chad. They continue to maintain that these talks are on course, but saying you can't

put a timeline on such talks. But still say they're confident that the girls would be released.

In the face of these more recent attacks, well, Kristie these attacks and abductions sadly have become an all too regular occurrence in parts of

Nigeria. You'll remember that the state of emergency was declared in three states: Jobe (ph), Ademawa (ph) and Borno State in May of last year. And

it is under a state of emergency these attacks have gone on.

The Nigerian government struggling to contain the threat posed by Boko Haram, well organized, well-armed militant group really is just wrecking

havoc across parts of northeastern Nigeria -- Kristie.

LU STOUT: That's right wrecking havoc, violence and terror across the country. Isha Sesay reporting live from Abuja, we thank you.

Now South African police are looking for three suspects in the shooting of the captain of the national soccer team.

Now police say 27-year-old Senzo Meyiwa was killed Sunday night in an attempted robbery at a house near Johannesburg. Meyiwa's last match was on

Saturday when his club team advanced to the semi-finals of the South African League Cup.

And police have offered a reward.

Now to the U.S. where the Ebola scare has turned into a major political debate. Now several U.S. states have announced a mandatory

quarantine for health workers returning from West Africa, but that places them at odds with the federal government.

And one quarantine nurse is challenging the policy in court.

Now Washington has also been quick to take a hard stance on this. And the White House spent the weekend speaking out against mandatory quarantine

as a way to contain the spread of the deadly virus.

Now let's bring in CNN senior medical correspondent Elizabeth Cohen. She joins us now.

And Elizabeth, first could you just walk us through this debate over these new state quarantine policies.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: So, Kristie, one side says, look, these quarantines are necessary because people coming back

from West Africa while they could possibly have Ebola and the other side says, look, these quarantines are unclear and they're unnecessary because

these folks don't either -- they're not sick. They couldn't possibly spread the disease.

(BEGIN VIDEOTAPE)

COHEN: The governors of New York and New Jersey offering clarification on their days-old policy of Ebola quarantining. Under the guidelines health

care workers returning from treating Ebola patients in West Africa will remain quarantined for a mandatory 21 days. Residents of the state can stay

inside their homes. In addition, those traveling from Ebola hot zones who haven't come into contact with Ebola patients will be actively monitored.

For nurse Kaci Hickox, isolated for three days by the state of New Jersey, the new policy has been a nightmare. I spoke with Kaci on the phone.

KACI HICKOX, NURSE IN QUARANTINE: I don't think most people understand what it's like to be alone in a tent and you know that there is nothing is

wrong with you and that decisions are being made that don't' make sense.

COHEN: Hickox, a resident of Maine, was quarantined inside this tent after she arrived at Newark Liberty International Airport from treating

Ebola patients in Sierra Leone. She currently shows no symptoms of the virus and tested negative for Ebola twice.

GOV. CHRIS CHRISTIE, (R) NEW JERSEY: My first and foremost obligation is protect public health and safety of people of New Jersey.

COHEN: The mayor of New York City blasted the decision, which some say deters health care workers from taking part in the fight to detain Ebola

abroad.

MAYOR BILL DE BLASIO, (D) NEW YORK CITY: This hero coming back from the front having done the right thing was treated with disrespect.

COHEN: Hickox lawyers are fighting for her immediate release.

NORMAN SIEGEL, CIVIL RIGHTS ATTORNEY: We believe that that policy infringes on the constitutional liberty interests.

COHEN: Currently officials are imposing these mandatory Ebola quarantine policies in three states, New York, New Jersey, and Illinois.

The policy was abruptly implemented Friday, just one day after New York doctor Craig Spencer, who treated patients in Guinea, was diagnosed with

Ebola.

GOV. ANDREW CUOMO, (D) NEW YORK: Some people will say we're being too cautious. I'll take that criticism.

COHEN: A federal official says the CDC was surprised by the mandate but acknowledges state and local officials have the prerogative to set

tighter policies.

(END VIDEOTAPE)

COHEN: Now Hickox's lawyer, who we just saw in that piece, they say, you know, in the United States we don't detain people without a hearing.

They say it's illegal that she's being detained. They are requesting that a hearing be held within the next couple of days -- Kristie.

LU STOUT: All right, CNN's Elizabeth Cohen reporting live from New York for us. Thank you, Elizabeth.

Now as we've just heard, Washington wants to attack this problem at the source. America's ambassador to the UN, she is now in West Africa at

the center of where this crisis began.

Now, the World Health Organization counts more than 10,000 confirmed or suspected cases of Ebola in West Africa, more than 4,900 cases have been

fatal.

But it's not all bad news on the Ebola front. In an Australian hospital, an 18-year-old who was in isolation has tested negative for the

deadly virus.

Now she arrived in Brisbane from Guinea nearly two weeks ago.

And in Spain, the husband of a cured Ebola patient has just been released from a hospital in Madrid. He had been under observation for

weeks after his wife, a nurse's aid, contracted the virus.

Now you're watching News Stream right here on CNN. And up next, a man in Hong Kong calls himself one of the most hated people among pro-democracy

protesters. But his pro-Beijing stance is resonating with some residents worn-out by a month of disruptive protests.

(COMMERCIAL BREAK)

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

Now women's rights groups in Afghanistan and beyond are hailing a landmark judgment.

Now a court in Kabul has sentenced a rural cleric to 20 years in prison for raping a 10-year-old girl. And unlike many previous cases, the

victim is not being made to share the blame.

(BEGIN VIDEOTAPE)

LU STOUT: She's only 10 years old. Her identity concealed, because she is the victim of a brutal rape. But she's being hailed for her

bravery.

In front of a packed courtroom on Saturday, this young girl spoke out and confronted her attacker, local mullah who was her teacher.

My parents sent me to the mosque to seek education, she says, but I didn't know that he would do this to me.

The court rejected the mullah's claim that the sex was consensual. He found him guilty of rape and sentenced him to 20 years in prison.

Women's rights groups say this case is a watershed moment in a country where violence against women is still all too common.

MARZIA RUSTAMI, WOMEN AND YOUTH PEACE AND DEVELOPMENT ORGANIZATION: This decision is very important, because just true to the women activists

especially that if they just work for achieving their rights of women and right voice, so they will get to success. And they can just put pressure

on the illegal system for supporting women.

LU STOUT: Afghanistan's independent Human Rights Commission documented more than 4,000 cases of violence against women from March to

October of 2013. Activists say the actual number of incidents is likely to be much higher.

RUSTAMI: The legal system did not follow the women cases before this case, very completely.

LU STOUT: Rights groups say many victims are still very afraid of a social stigma that puts the blame on them. The Afghan government past a

law five years ago to address violence against women, but many women are not aware of it.

Activists say they hope the courage of this 10-year-old girl and her victory in court will give other victims hope that they, too, will get

justice.

(END VIDEOTAPE)

LU STOUT: A very brave young girl.

Now the New York Times reports that the girl and her family are not satisfied with the sentence. They believe the mullah should have received

the death penalty.

You're watching News Stream, we'll be back right after this.

(COMMERCIAL BREAK)

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

Now a quarantine nurse in the U.S. State of New Jersey says that she feels her human rights are being violated as she was isolated after she

returned from treating Ebola patients in Sierra Leone. Several U.S. states have imposed a mandatory quarantine policy.

The captain of South Africa's national football team has been shot and killed in what police say was a botched robbery at a house near

Johannesburg. Just a day earlier, Senzo Meyiwa's club advanced to the semi-finals of the South African League Cup. And police are looking for

three suspects.

North Korea is threatening to call off high level talks with Seoul set for later this week. And Pyongyang is accusing the South Korean government

of sending leaflets over the border in balloons. Now the balloons carry messages encouraging North Koreans to defect. South Korea says it has no

legal means to stop civilian organizations from spearheading this campaign.

In South Korea prosecutors are seeking the death penalty for the captain of a ferry that overturned in April killing more than 290 people.

Now 15 of the crew are being prosecuted. Most of the victims were students on a field trip.

Now international fears are growing over ISIS and its ability to recruit jihadists abroad and inspire lone wolf terror attacks in the west.

And one European country is using a controversial method to turn the tide. Atika Shubert joins us now live from London.

Atika, when foreign fighters return home, what can be done to make them give up their extremism?

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Well, each country has different approaches. And very few countries actually have structured

deradicalization programs. But Denmark is one of them.

They have quite a significant problem with fighters going to Syria and Iraq and a number of them have returned home. And what's remarkable is

that when they come home, they get help. If they haven't committed a crime, they get put through a program that actually tries to reintegrate

them into society. Take a listen.

(BEGIN VIDEOTAPE)

SHUBERT: There are an estimated 100 Danish fighters in Syria, that is a lot for a small county. Denmark has one of Europe's highest rates of

jihadi figters, and it faces a dilemma: what to do when these fighters come home.

Omar in his early 20s recently returned from Syria. His parents thought he was helping at a refugee camp, he was fighting with a jihadist

brigade. He spoke to us on condition of anonymity.

UNIDENTIFIED MALE: In reality, I have met a lot of western people in Syria. And nobody has ever talked about getting back planning to bomb

these countries like they're trying to make it sound like in the media.

SHUBERT: Omar is one 16 known fighters to return. On arrival, he did a very unradical thing, he contacted the Danish police program for

returning fighters voluntarily.

Were you nervous about coming back home to Denmark?

UNIDENTIFIED MALE: No, I wasn't that nervous because I knew that I didn't do any kind of criminal act or something like that.

SHUBERT: Here's how the program works, any returning fighter is eligible for help getting a job, a house, an education and psychological

counseling, just like any other Danish citizen. But they must be screened by police. Anyone found to have committed a crime will be put through the

courts and possibly prison.

Their information is also passed to Danish intelligence.

JORGEN ILUM, AARHUS POLICE COMMISSIONER: This is not a gift shop. You have to be motivated, you have to really want to become a part of the

Danish society. We help them find a way through the system. And what we've seen is that out of these 16 who have returned, 10 of them are now

back in school, have a job, and it seems to us that their focus is on something else than in Syria.

SHUBERT: Police here say it is a Danish solution that's not that special, simply a crime prevention program with a focus on jihadis. And

it's voluntary.

Omar is one of those who decided he didn't need the help, but he has friends who are in the program.

UNIDENTIFIED MALE: They don't help people by arresting them, by raiding their homes and taking away their passports and putting them into

prison.

SHUBERT: Importantly, the program does not try to change the fundamentalist beliefs of returning fighters as long as they do not

advocate violence.

ILUM: They are still Muslim believers, some of them in perhaps a way that we would call radical, but not to an extent as far as we can see they

are a threat to the society.

SHUBERT: Omar believes the program is preventing attacks back home, but he also says he might return to Syria.

UNIDENTIFIED MALE: Young people have a lot of feelings, so you know if you're going to be humble to those returning fighters, they will be

humble towards you. If you are going to be harsh towards them, they're going to be harsh towards you.

SHUBERT: What advice do you have for somebody who wants to come back from Syria back home? What advice do you have?

UNIDENTIFIED MALE: I'll tell them that there's nothing to fear if you want to come back.

SHUBERT: So, does it work? It's too soon to know, but police say the alternative would be fighters that return and simply disappear. This

program is designed to help while also keeping a close watch.

(END VIDEOTAPE)

SHUBERT: Now there's no way of knowing whether or not -- of measuring whether the program is working yet, but there's some interesting numbers

that have come in, Kristie. Last year, as many as 30 Danish fighters left Denmark to fight in Syria and Iraq, there was only one that left this year.

So that's quite a significant drop. But we don't know it's directly related to this program, but many of the advocates are saying it is.

LU STOUT: Yeah, very significant drop there in this crime prevention system that Denmark has set up. Could this Danish system be put in place

and potentially work outside Denmark?

SHUBERT: Well, I think for one thing, Denmark is obviously a small country, but also a number of the people that travel from Denmark to Syria

are really almost from -- almost all from one part of the country, in this one town of Aarhus. So it is easier to target.

However, a lot of countries are looking at Denmark's system. The Netherlands has a very similar system. And even countries like the UK are

taking a look at how they deal with these radical fighters that come back to see whether or not there's a way of getting them back into society.

Part of the reason why Danish authorities told us it's working is that they don't have an alternative, they're afraid that is they don't do this

then they'll simply disappear, or worse they'll get pushed even further away and get even more extreme.

LU STOUT: Well, it's a very compelling options out there, a combination of surveillance and rehabilitation. Thank you very much indeed

for your reporting. Atika Shubert joining us live from CNN London.

Now, in Budapest, thousands of people took to the streets to protest a proposed tax on internet data. In a draft bill that was rolled out just

last week, the government plans to charge internet providers 60 cents for each gigabyte of data transfer. Now protesters called the measure

undemocratic, saying it would limit internet access for the poor.

Now here in Hong Kong, the divide in public opinion over the umbrella movement deepens as the protest stretches into week five. Anti-Occupy

activists say the sit-in has brought chaos to the city, while some say Beijing will not budge anyway.

As Paula Newton now reports, these views seem to be resonating.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: As the protests continue in Hong Kong, the political stalemate also continues and the anti-

Occupy leaders say this is Democracy, this is what the majority wants. They claim now to have 650,000 signatures on a petition through campaigns

on the streets like this and online that they want this protest to end.

I want you to hear now from one of those leaders of the anti-Occupy protest.

ROBERT CHOW, SILENT MAJORITY FOR HONG KONG: Hong Kong people are fighting back in the most democratic and peaceful way, signing their name

to say we don't want, you know, Occupy Central. Give us our roads back. Gives us law and order back. And give us rule of law back.

NEWTON: Now the anti-Occupy groups say, look, this protest maybe romantic, but it is not revolutionary and it is not democratic. They claim

that what they're doing here is democratic. At the same time they're calling for some kind of concessions both from the students and the

government so that this will come to an end.

And what they fear most is that there will be violence on the streets not between the police and the protesters, but from many people that they

claim in this city are getting sick and tired of the protests and want it to end.

Paula Newton, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come, Google is pouring millions into a startup that promises to close the gap between

reality and the digital world. And we'll tell you why their plan is different from virtual reality.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now let me ask you, what is the difference between playing football and playing a football video game? Well, on the field you can actually

touch the ball and smell the grass and interact with your teammates, but what if a computer could recreate some of those experiences in your mind

and then mix it with the real world so you can't tell the difference. Well, one startup is trying to do just that. Rachel Crane reports.

(BEGIN VIDEOTAPE)

RACHEL CRANE, CNN CORRESPONDENT: Loading baby elephant has made the internet lose its mind. A mysterious Florida-based company called Magic

Leap is behind the dazzling display. And it's a technology they're calling cinematic reality.

It seems to be a mixture between augmented reality and virtual reality on steroids. Whatever it is, it's freaking cool. And apparently worth a

lot of money.

The biggest name in virtual reality right now is Occulus VR, which Facebook recently bought for $2 billion.

Now Magic Leap says that their technology could potentially blow Occulus out of the water.

Operating in stealth mode, Magic Leap just had one of the most successful second rounds in history, raising $542 million. The lead

investor is none other than Google.

But everyone is asking what is it?

Here is what we do know. Magic Leap uses digitized light fields to overlay 3D images onto the real world. It's not virtual reality, which

totally submerses the viewer in a completely artificial environment, instead it's a mixture of real and artificial.

It sounds similar to augmented reality, which is something that already exists on your smartphone, but early users claim it's way better.

One venture capitalist backing the company put it this, it's so badass you can't believe it.

Lots of questions remain surrounding Magic Leap, the biggest being will this stealth company actually deliver in reality?

No baby elephant yet.

(END VIDEOTAPE)

LU STOUT: All right, I'm curious but I want to try out the demo.

And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere, World Sport with Amanda Davis is up next.

END