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NEWS STREAM

ISIS Forces British Journalist To Create Propaganda; Volcano In Hawaii Threatens Town of Pohoa; The Cult of Putin; Denmark's Controversial Program For Returning Jihadists; Leading Women: Tory Burch; Australia Suspends Visa Applications From West Africa

Aired October 28, 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 captured ISIS fighters speak to CNN and the have a chilling message for reporters.

Could Ali Baba eyeing a partnership on Apple on mobile payments?

And dramatic pictures of a lava flow threatening a town in Hawaii.

ISIS has just put out a chilling new video of British captive John Cantlie. It shows a journalist in the streets of the embattled Syrian

border town of Kobani appearing as a reporter on the scene.

Now these are photographs of this propaganda video. And in it, Cantlie claims that the Syrian border town of Kobani is now firmly under

ISIS control, but the Kurds say the fight is far from over. And Iraqi- Kurdish forces will soon be joining them.

Now the video also features footage purportedly shot via an ISIS drone showing Kobani streets destroyed and deserted.

And just a few hours ago, another large explosion in Kobani as fighting picks up on the ground. And we're also hearing those Peshmerga

fighters from Iraq are heading across the border into Syria either today or tomorrow.

Now for more on this, let's cross over to Nick Paton Walsh, he joins us live from Gaziantep in Turkey.

And Nick, these Kurdish fighters from Iraq, what is the latest on their movements?

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: Well, today is the first day that we've had a clear signal that the Iraqi-Kurdish Peshmerga,

the Peshmerga ministry are saying that they will be on the move, that all the technical issues have been ironed out, they'll be on the move today or

tomorrow.

We've heard positive noises in the past, but nothing with this degree of clarity. These fighters, they say, will be there armed and fighting

alongside the Syrian Kurds. And they will be traveling either by land or perhaps a mixture of land and air, the details not completely transparent

obviously, I think, because there's a security issue here. They'll be crossing into a war zone with ISIS fully aware of their arrival.

But this is after days of confusion.

There is still some confusion, too, because some of the individuals we're speaking to of the Syrian-Kurdish side aren't fully briefed up on

this. So we're going to have to wait and see quite how this pans out in the hours ahead.

But the suggestion is that really the Kurdish Peshmerga, after days of confusion, may well actually be on the move or imminently about to leave

their bases in Kurdistan, Kristie.

LU STOUT: And Nick, a new ISIS propaganda video has a British hostage saying that the militants have the upper hand in Kobani, but what is the

reality on the ground there?

WALSH: Well, there's a lot of fighting there, according to witnesses overlooking the city right now. But ISIS say that they're just mopping up

the remaining elements of controlling the city. And I think what is interesting to point out is how John Cantlie must be in a complex

psychological situation, to say the least, not under duress.

When he gives ISIS's side of the story in that report it's obvious that ISIS are not in control to the extent that he says. This is probably

shot about a week ago, given the reference to a U.S. air drop in the video as Cantlie speaks. And I think its aims, given how it is in English, how

it potentially aimed both at the western media to correct what ISIS see as their inaccuracies, but maybe, too, at those in western countries who may

be future recruits for ISIS to kind of raise perhaps morale or certainly social media buzz around ISIS to give that optimistic terminology after the

severe pounding they took from coalition airstrikes in the past week or so.

They had a lot of losses, most accept, I think, but now this is their perhaps bid to use something they're very adept with, social media, very

good at, to perhaps put themselves back on the front foot, Kristie.

LU STOUT: Nick Paton Walsh reporting live for us. Thank you, Nick.

Now CNN has gained rare access to ISIS fighters in northern Syria. We're about to show you a chilling exchange between captive ISIS militants

being held by Kurdish fighters and our senior international correspondent Ivan Watson.

Now Ivan's report has more on the brutal tactics members of ISIS use for the sake of their cause.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: We're in a prison run by Kurdish militants here in northern Syria. An we're being introduced to

prisoners that the Kurds tell us were members of ISIS.

The prisoners are brought in blindfolded. And we quickly begin to wonder whether they're being forced to speak to us.

During our visit here, the guards, who ask not to be shown, do not allow us to see the cells where the prisoners are being held. This man

trembles with fear as a prison guard removes his blindfold.

I introduce myself as an American journalist and he begins to relax a little.

He tells me, he's a Syrian named Suleiman. He confesses to being part of an ISIS cell that planted and detonated a remote control car bomb

outside a Kurdish base and says he received around $3,600 U.S. dollars for completing the job.

What is the idea that ISIS is fighting for?

SULEIMAN, CAPTURED ISIS MILITANT (through translator): They said they were fighting for Islam and justice. They were lying to us. They took

advantage of our minds and our poverty.

WATSON: One of the prisoners the guards bring out is barely a man.

Your name is Kareem. How old are you?

KAREEM, CAPTURED ISIS MILITANT (through translator): I'm 19-years- old.

WATSON: But Karim tells me he fought alongside ISIS all across Syria for more than a year.

WATSON: Where were you injured?

And he has the battle scars to prove it.

KAREEM (through translator): They gave us drugs, hallucinogenic pills that would make you go to battle not caring if you live or die.

WATSON: Before he's captured by the Kurds, Kareem claims he saw ISIS behead many of its prisoners.

Why does ISIS cut people's heads off?

KAREEM (through translator): Whenever ISIS goes into an area, the eyes of ISIS, the people there who don't adhere to their Islamic law are

apostates. Everything has to follow ISIS's way, even women who don't cover their faces. Women would also get their heads chopped off.

WATSON: The final prisoners is Jaber, a former school teacher and father of two who also confesses to a car bombing.

What would have happened to me if when you were with ISIS, if you guys had found me, an American journalist?

JABER, CAPTURED ISIS MILITANT (through translator): With ISIS, your fate would be death. There are different kinds of death. They would

torture you for sure. They might decapitate you, or cut off your hands. They will not simply shoot a bullet in your head.

WATSON: It's impossible for CNN to confirm whether anything the prisoners tell us was true, or whether these men were coached by their

captors. The Kurdish prison guards say if set free, every one of these men would likely go back and rejoin ISIS.

Ivan Watson, CNN, in Kurdish controlled northern Syria.

(END VIDEOTAPE)

LU STOUT: Now in the fight to stem the spread of Ebola, the U.S. Centers for Disease Control and Prevention is issuing new guidance for

people who may have been exposed to the virus. They now recommend anything from self-monitoring to tighter restrictions depending on the level of

potential exposure.

Now meanwhile, Emory University Hospital in Atlanta, Georgia has just declared Dallas nurse Amber Vinson free of Ebola. Now she'll be released

later today.

And a nurse who had been quarantined in a tent at a New Jersey hospital since Friday is now being allowed to go home to Maine. Now Kaci

Hickox, who has tested negative for the virus, helped treat Ebola patients in Sierra Leone. She complained the mandatory quarantine violated her

rights.

And Army Major General Darryl Williams and 10 other U.S. military personnel are being monitored in Italy as a precaution after returning from

an aid operation in Liberia.

Now 30 more U.S. troops working in West Africa will also go into close monitoring when they arrive in Italy on Wednesday.

Australia has put in place stringent measures to stop Ebola from reaching its shores. Now the government has issued a new blanket ban on

visas for people in West African countries affected by the outbreak.

Andrew Stevens has more.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I call the honorable the prime minister.

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: A dramatic step by the Australian government immediately closing its borders to anybody

wanting a visa to travel to the country from key Ebola affected areas.

SCOTT MORRISON, AUSTRALIAN MINISTER FOR IMMIGRATION & BORDER PROTECTION: These measures, madam speaker, temporarily suspending our

immigration program, including our humanitarian program, from EBV affected countries. And this means we are not processing any application from these

affected countries.

STEVENS: A dramatic step by the Australian government, immediately closing its borders to anybody wanting a visa to travel to the country from

key Ebola affected areas.

Even permanent visa holders will have to spend 21 days in quarantine before they're allowed in.

The new rules come after 11 people who'd traveled from West Africa were put in isolation in Australia, none so far has tested positive for

Ebola.

The decision sparked sharp criticism. The Australian Green Party describing it as shameful and cruel. Banning refugees from fleeing West

Africa, says Green's immigration spokeswomen Sarah Hanson Young (ph) is like shuttering up the window while a house burns down.

MORRISON: The government is taking very serious steps.

STEVENS: Prime Minister Tony Abbott says his priority is to protect Australians at home, but his policy on Ebola is already drawing fire.

BILL SHORTEN, AUSTRALIAN OPPOSITION LEADER: The president of the Australian Medical Association has described the government's response to

the Ebola crisis as a shambles.

STEVENS: Mr. Abbott says the government is taking very serious steps to deal with the virus, but the Australian Medical Association says both it

and the country's chief medical officer are, quote, in the dark about what plans the government has.

The Abbott government was asked a month ago by key allies, the U.S. and the UK, to send medical experts to West Africa. The U.S. is sending

about 4,000 military personnel, while Britain sending about 750.

But Australia is not sending anyone yet. The government says it's still looking at evacuation plans for workers who may contract the disease.

It has provided nearly $15 million to the UN, but Mr. Abbott sees his front line in this fight squarely at home.

Andrew Stevens, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: ApplePay could get a big boost in China. Ali Baba founder Jack Ma and Apple's Tim Cook, they both spoke at the Wall Street Journal's

conference on Monday. And according to several reports, Ma hinted that he was interested in forming a partnership between Apple and his mobile

payment service AliPay.

And a short time later, Tim Cook took to the stage and Recode reports he said the two would talk later this week about working together.

Now we've heard a lot about ApplePay, but AliPay is far bigger. It was launched 10 years ago. And is the dominant form of online payment in

China. It had 300 million users at the end of last year, that's almost the population of the entire United States.

You're watching News Stream. And coming up, the cult of Vladimir Putin. The Russian president is a patriotic icon for some, and his anti-

western stance is increasingly popular.

And that is the sound of molten rock slowly advancing on the Big Island of Hawaii a lava flow is threatening an entire town.

(COMMERCIAL BREAK)

LU STOUT: Now the appalling abuse suffered by women and girls at the hands of Boko Haram in Nigeria has been detailed in a new report by Human

Rights Watch.

Now testimony from those who got away, including descriptions of forced marriage, rape, torture, psychological abuse. Hundreds of women and

children have been seized by this militant group. Find out more about those who have been abducted, Isha Sesay joins us now live from Abuja. And

Isha, could you tell us more about this deeply disturbing report by Human Rights Watch?

ISHA SESAY, CNN INTERNATIONAL CORRESPONDENT: Hi, there, Kristie. It is indeed deeply disturbing, the 60 plus page report released by the group

on Monday, which is based on a count of 46 victims and witnesses of Boko Haram abductions and it really does lay bare the horrors endured by women

and girls over the years since this group lay siege to northeastern Nigeria.

According to the report, more than 500 women and girls have been taken by Boko Haram in recent years. And as you just pointed out to our viewers,

it is -- their testimony lays out tales of rape, of forced marriage, or in some cases of forcing these women and girls to actually participate in

murder while they're held in these Boko Haram camps deep in the forest and parts of Nigeria, truly truly horrifying.

I want our viewers to take a listen to some of the testimony presented by Human Rights Watch.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE (through translator): One of them raped me. I kept pleading for him to leave me alone, because I had my baby, but he

refused to listen, and told me to put my baby down. So I put her down.

UNIDENTIFIED FEMALE (through translator): I was forced to go with them on operations. I usually carried their bullets. They would make me

lie down on the ground during operations, but I just held the bullets. When they wanted me to kill the first man, my body was shaking and I fell

down on the ground. They force me to get up and watch as they killed the second person. At that point, I was thinking I should grab a gun from the

insurgents and kill myself since they had taught us how to shoot.

When I thought that I'd be forced into marriage, I pretended to have stomach pains. They were concerned that I might be HIV positive so they

told me to go get tested at a hospital. That's how I escaped from the camp.

(END VIDEOTAPE)

SESAY: Truly heartbreaking, Kristie. And one of the more troubling elements of this report is that Human Rights Watch is criticizing the

Nigerian government saying that those who managed to escape the clutches from Boko Haram are not treated to significant services and rehabilitation

and counseling to help them reintegrate into their communities. Instead, what they come back to is stigma and shame -- Kristie.

LU STOUT: Not enough social or psychological support for those who have suffered through so much. Isha Sesay reporting live from Abuja, thank

you very much indeed for that, Isha.

Now here in Hong Kong, it has been exactly one month since that fateful day that gave the pro-Democracy movement its unusual name. Using

what has now become their symbol of civil disobedience the protesters opened umbrellas to shield themselves from pepper spray.

Later that night, they did the same again, and police fired rounds of tear gas at the students. That sparked public anger. And soon after, many

more took to the streets to support what has since been dubbed the Umbrella movement.

Now final results from Ukraine's parliamentary election are expected this week. And the projected outcome is seen as a defeat for Moscow with

pro-Russian parties losing out to more European friendly leaders.

But inside Russia, President Vladimir Putin is very, very popular. And as Matthew Chance now reports, there are fears that Russia is returning

to its authoritarian roots.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: It says that (SPEAKING IN FOREIGN LANGUAGE) which means Crimea is ours.

For many Russians, Vladimir Putin is more than just a president, he's a symbol of national pride and an icon adorning the patriotic t-shirts in

this Moscow store.

UNIDENTIFIED FEMALE: The t-shirt with (inaudible)

CHANCE: Oh, yes, it's showing Putin as an Olympic hero.

UNIDENTIFIED FEMALE: Yeah, it's like hero, like superhero.

CHANCE: Is this meant to be ironic? Is it a joke?

UNIDENTIFIED FEMALE: Yeah, it's joke, but I don't think so.

CHANCE: Certainly his popularity ratings of more than 80 percent are no laughing matter.

And of course these provocative t-shirts suggest one lighthearted sign of what many in the West regard as a much darker trend in Russia.

Under this man, Vladimir Putin there are concerns the country maybe slipping back towards Soviet style authoritarianism and that after years of

embracing the West, Russia is reversing course.

The toppling of Ukraine's pro-Russian president earlier this year supported by the West seems to have been a tipping point. Amid complaints

about NATO and European Union expansion, Russia annexed the strategic Crimean peninsula, then backed separatist rebels in Ukraine's many Russian

speaking east.

Despite a raft of Western economic sanctions that followed, Russian officials believe their message is now finally being heard.

VYACHESLAV NIKONOV, RUSSIAN MP: To some extent, there is a growing understanding in the West that it is impossible to organize post-Cold War

Europe without speaking to Russia.

CHANCE: But his newly assertive Russia seems to tolerate even less criticism than before.

At the offices of one of the country's most influential newspapers, Vedomosti, staff suspect their days of independence may be numbered.

Controversial new laws, signed by President Putin, limit foreign ownership of media companies in Russia, currently owned in part by the Wall

Street Journal and the Financial Times Vedomosti may soon have a new Russian owner, loyal to the Kremlin.

TATYANA LYSOVA, EDITOR-IN-CHIEF, VEDOMOSTI (through translator): We're not an opposition newspaper. But because we're independent and

because we can't be forced to write in favor of them, that's already enough of an inconvenience.

CHANCE: Back in the t-shirt shop, the absence of criticism has become a fashion accessory.

UNIDENTIFIED FEMALE: My favorite, Putin is my hero.

CHANCE: Putin in my hero. Is he your hero?

UNIDENTIFIED FEMALE: Yeah.

CHANCE: Matthew Chance, CNN, Moscow.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And coming up, boiling lava from a powerful volcano is threatening and entire community on the big

island of Hawaii and residents are getting out of harm's way.

(COMMERCIAL BREAK)

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

Now for weeks, a red hot lava flow has been slowly advancing on the town of Pahoa on Hawaii's Big Island. It has swallowed everything in is

path. And now, it's within striking distance of homes.

Now Martin Savidge reports residents are packing up and their heading for safer ground.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): It's in the middle of the night here in Hawaii and just beyond that white outbuilding here you

can't quite see it with the camera view, but there's an orange glow in the sky and a plume of smoke, that is the lava. And it's said to be as close

as maybe 60 meters to the nearest home in this small town. And right over there, that's the road block that suggests the way the lava is flowing. It

may cross right over this street, which is the main road in town. The danger is literally on the doorstep.

Lava on main street, in Pohoa, on the big island, a 2,000 degree river of molten rock is just a few hundred feet away from the town and there is

no way to stop it. Residents are on a moment's notice to evacuate as the super-heated stone threatens the town of 950.

UNIDENTIFIED MALE: Everyone including myself is quite nervous. We can't see the future. The flow does what the flow does.

SAVIDGE: Hawaii's famous Kilauea volcano has continuously erupted since 1983. Usually the spectacular lava flows pour south, eventually

reaching the sea. But in June, a new flow started heading the opposite way, to the northeast, the dark, oozing mass consuming everything in its path.

And experts say the lava has picked up speed as it heads directly for Pahoa. Hawaii's governor signing a request asking for a presidential

disaster declaration and for federal aid.

BILLY KENO, HAWAII ISLAND MAYOR: As it gets closer, the key is communication with the community, keeping people informed and everybody

continue to work around the clock.

SAVIDGE: Officials going door to door warning residents as the flow inches dangerously close. Already some roads have been forced to close as

the lava overtakes them. With many residents fearing they'll be cut off, Hawaii County is rebuilding alternate gravel roads around the expected path

of the lava. People downwind from the smoke have been advised to stay indoors.

UNIDENTIFIED FEMALE: I have asthma myself and the smoke conditions, if they increase, are going to be hard on some people.

SAVIDGE: The only hope that the people of this town have is that the lava either stops or changes direction, otherwise the same force of nature

that created the Hawaiian Islands could very well destroy their town.

Back to you.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come, it has become a hotspot for homegrown jihadist fighters. We'll look at what

Denmark is doing to deradicalize those who feel drawn to extremism.

(COMMERCIAL BREAK)

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

ISIS has revealed a new video showing the British hostage John Cantlie in the Syrian border town of Kobani. In it, the journalist says that it is

the militants who have the upper hand. But Kurds say the fight is far from over, and Kurdish fighters from Iraq will enter Kobani within the next day.

Now more than six months after the Sewol ferry disaster in South Korea, a victim's body has been discovered inside the sunken vessel.

Authorities say the body was found on the fourth floor of the ferry, but has not yet been recovered. More than 290 people died when the ferry sank

in April. Nine bodies are still missing.

Australia has put in place stringent new measures to stop Ebola from reaching its shores. The government has issued a blanket ban on new visas

from the West African countries affected by the outbreak. Now the restrictions were unveiled by the immigration minister before parliament.

Foreign fighters have been streaming from Europe into Syria and Iraq to fight for ISIS, but there is concern that when they return home the

jihadists could attack targets in the west.

But Denmark is taking a unique approach to keep that from happening.

Now Atika Shubert joins us now live from London to explain. And Atika, remind us how does this program work?

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Well, basically fighters can sign up voluntarily to this program. They're screened. And

if they are found to have committed any crimes overseas then they'll go through a legal process that could result in prison. But if they have not

committed any crimes, then they are eligible to all kinds of benefits like employment, housing and education, for example, and even counseling.

Now we had a chance to speak to both the counselor that helps a number of these fighters and the mosque that is involved in this process. Take a

listen.

(BEGIN VIDEOTAPE)

SHUBERT: Why have hundreds of jihadi fighters across western Europe gone to the battlefields of Syria and Iraq? And how do authorities keep

them from lashing out violently once they are home?

Well, the answers might be found in Aarhus, Denmark. It may not look like a hotbed of jihadi radicalism, but of the 100 Danish fighters that

have left for Syria, more than a third come from Aarhus, specifically the suburb of Gelarup (ph).

This is the suburb of Gelarup (ph), it's just outside of Aarhus. About 80 percent of the people living here are immigrants. Unemployment is

high. And according to the ministry of housing they've even described this as sort of ghetto.

Here, Danish authorities have set up a deradicalization program with the help of the local mosque and its chairman Usama al-Saadi (ph).

Interestingly, the mosque refuses to condemn or openly support ISIS, the Islamic State in Syria and Iraq.

But he does meet with Danish police every month to both discourage young Muslims from fighting in Syria and to counsel them on their return.

"The only and the most important thing that we want to see is that they don't consider us as criminals," he tells us. "They don't consider us

as terrorists and they recognize us as a minority living in Denmark," he says.

al-Saadi (ph) introduces us to Omar, not his real name, who was once an engineering student before he became a fighter in Syria.

OMAR, JIHADI FIGHTER: Nobody is going and leaving the country because of someone has brainwashed them. They go because -- to defend oppressed

people in Syria and help them by any means. It's a good deed according to the Koran.

SHUBERT: But in-fighting among jihadist groups drove Omar home to Denmark. And he isn't the only one to return home disillusioned, saying

Preben Bertelsen who counsels returning fighters.

PREBEN BERTELSEN, AARHUS UNIVERSITY: They see things they didn't expect to see -- brutality, violence, even and also corruption from the

guys they thought was their ally. So, in fact, some of them are deradicalized...

SHUBERT: Just by the process of going there.

BERTELSEN: Yeah, some of them.

SHUBERT: Disillusioned, traumatized perhaps, but will Denmark's experiment on deradicalization win the hearts and minds of Muslim youth?

Yes and no. Omar insists that he still wants to travel to Syria even though he considers Denmark his home.

OMAR: You know, when you got to the youth left in this city I knew them as very like intelligent people who finished high school, who were

studying at the universities and had a good degree in the schools. I don't believe that they were isolated from the society at all.

SHUBERT: According to police, the numbers traveling from Aarhus to Syria have dropped from 30 in 2013 to just one in 2014, an encouraging

start for the Aarhus model of deradicalization.

(END VIDEOTAPE)

SHUBERT: An important part of this program is that even though they're counseling many of these fighters, they're not challenging their

extremist ideology as long as they do not advocate or commit acts of violence they can continue to be in this program, Kristie.

LU STOUT: Yeah, it's a limited, but it is a groundbreaking program. Thank you very much for your reporting on this. Atika Shubert reporting

live from CNN London, thank you.

Now, in its latest foray into devices, Amazon has unveiled its own streaming dongle. Now, the Fire TV stick is sized like a USB flash drive.

It plugs into your TV's HDMI port and is essentially the same as Amazon's Fire TV box, but in a smaller size. It's becoming more popular.

Last year, Google rolled our Chromecast. It can stream content from Google's Chrome browser and from mobile apps.

And in March, the California-based company Roku released a cheaper version of its original streaming stick, which was actually released back

in 2012.

But while those two focus on streaming, the Fire TV stick has plenty of storage so it can hold plenty of apps and games.

Now after the break, trendsetting designer Tory Burch shares her secrets to success. And find out how she turned her trademark flats into a

billion dollar business. That straight ahead.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now from women's shoes to a billion dollar business, designer Tory Burch built her clothing and accessory empire in just 10 years. Now our

latest Leading Woman is a self-made entrepreneur who also happens to be on the Forbes list of the world's most powerful women.

(BEGIN VIDEOTAPE)

NINA DOS SANTOS, CNN INTERNATIONAL CORRESPONDENT: She's turned ballet flats into must have footwear. And her Double T logo is now a major symbol

in the world of fashion. She's Tory Burch.

We met at her store in London.

TORY BURCH, FASHION DESNIGNER: In the beginning of the collection I did this sort of antique vintage linen. And I just love the contrast of the

high and low.

DOS SANTOS: Self-made billionaire, head of a fashion empire, mother of three boys and unstoppable.

120 stores wholly owned and then you've got more than 1,000 department stores in which you are present in and concessions and various licensing

agreements. 2,000 staff, 80 percent of those are women, and you're planning on getting bigger?

BURCH: Well, it's a natural as we move into different parts of the world you -- we will get bigger. And that's just the way it is.

It doesn't mean that it's going to change who we are.

DOS SANTOS: Burch launched her company in 2004, seeing the need for stylish and affordable clothes. She opened her first boutique in New York.

And would you describe your business to a certain extent as the fourth child?

BURCH: Absolutely. I think it's later in life child, sort of took it on and started it when I was in my later 30s, when I was 37 and my boys had

just gone to school. And so I had time and knew that work was very important to me and I wanted to think about what work would look like. And

it sort of became this business.

DOS SANTOS: One of her big breaks came in 2005 when Oprah Winfrey named her the next big thing in fashion.

Tory Burch, your name, it's a big brand now. You've made it to Forbes billionaires list with a Fortune of around about $1 billion in net worth

according to them. Do you ever think I'm proud of myself when you look in the mirror?

BURCH: Not really, I don't. I'm happy as a person. And I look at my life and feel very fortunate, but I always have. So it's been a journey I

never imagined being on. And to share it with the people, many of the people who work with me today were working in my apartment. And so it's

been a great experience and we're thrilled to move forward.

DOS SANTOS: Burch is defining success on her own terms, a principle she's implemented since she launched her business.

BURCH: Well, everyone advised me not to do a retail store. And I think it's a more traditional route to go and sell at a department store and do

one category. And I thought what resonated when we first launched this company is that we opened with a shop and it had 12 different categories.

so people walked in and you could immediately see our vision and what we were trying to do.

I'm very proud of this company. And we've had so many great moments of wonderful successes that we've all experienced together. That said, we're

always looking forward. And we're not ever sitting back and saying look at us how great we are.

You never can sit and rest on your laurels.

(END VIDEOTAPE)

LU STOUT: And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. World Sport with Christina MacFarlane is up next.

END