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NEWS STREAM

Xiaomi Opens Brick and Mortar Store; Italy, Russia Announce New Trade Deals; South Korean Health Officials Confidence MERS Virus Will Be Contained. Aired 8-9a ET

Aired June 10, 2015 - 8:00   ET

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


[08:25:58] KRISTIE LU STOUT, CNN HOST: All right, a hard pitch for the expo there. Live from Milan, you've been watching a press conference with

the Italian prime minister Matteo Renzi and the Russian President Vladimir Putin. President Putin emphasized the trade relationship between Russia

and Italy saying, quote, we have the greatest economic partnership in Europe.

And the Prime Minister Renzi, he addressed geopolitical issues, in fact he said, quote, "we are determined to work together on regional crises. The

crisis in Ukraine was discussed."

And while Russia was shut out of the G7 summit that took place earlier in Germany, he had an audience today with the leader of Italy. And on that

point, Prime Minister Renzi said we need to have a dialogue with Russia and all nations of goodwill.

Now later in the day, Vladimir Putin is due to meet with Pope Francis.

Now CNN's Nic Robertson joins me now live from St. Peters Square. And Nic, I know that you were tuning in, listening in to that press conference. And

judging from what we heard it seems that the two leaders they discussed trade as well as sensitive political issues, in particular the crisis in

Ukraine.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Yeah, that did come up time and time again, particularly listening to Matteo Renzi. He reiterated

several times the Minsk agreement, which was an agreement to -- back in January, February this year to stop the fighting, to pull back the heavy

weapons to maintain a line of separation and then not to put further troops into that line of separation and not to move heavy weapons back in.

And of course, over recent days, perhaps the last couple of weeks, the reverse has happened: heavy weapons have gone back in. The European

monitoring organization OSCE has been notified by the Ukrainians they're doing that. Certainly deaths along that line of control.

But I think it was very important here, and very telling that at the beginning and end of his speech, President Putin thanked the Italians for

their invitation to come. That will be very important for his audience back home, because that will show that the Italians have invited him here.

He is not as isolated as he appears to be by being excluded from the G7 and on the international stage and the sanctions that have been put on Russia

because of what it's done in Ukraine, the annexation of Crimea.

But President Putin also stressed the value and the importance of that trade with Italy, all those different areas, but actually giving us some

figures. He said, you know, Russia's trade with Europe last year, 2014, was down 10 percent and in the first quarter this year he said that trade

was down 25 percent. And he said that wouldn't do, that wasn't acceptable to Russia. And in that context of really saying, you know, Italy and

Russia have a lot in common, a lot of culturally in common. We have a lot of business activities in common.

The real response we kept hearing from the Italian prime minister was going back to the Minsk agreement. Well, do and fulfill the Minsk agreement and

then all our differences can be resolved was essentially the message there from the Italian prime minister to President Putin, Kristie.

LU STOUT: All right, Nic Robertson reporting live from St. Peters Square. Many thanks indeed for that.

And you're watching News Stream. There will be more right after this.

(COMMERCIAL BREAK)

[08:31:40] LU STOUT: To South Korea now where officials are bracing for what they say is the most important period to try and control the outbreak

of MERS, or Middle East Respiratory Syndrome.

The ministry of health now says nine people have died of MERS and the number of known cases stands at 108. And more than 3,000 people have been

under quarantine since the first case was identified three weeks ago.

The transmission of the virus has so far been confined to hospitals where are doing everything they can to contain the outbreak.

Now Kathy Novak has this report from Seoul.

(BEGIN VIDEOTAPE)

KATHY NOVAK, CNN INTERNATIONAL CORRESPONDENT: I'm at a hospital in Seoul. It's one of the medical facilities treating people who have contracted

MERS. They're being kept in isolation so that other patients are exposed to the virus.

We're going to head inside and see how medical staff are handling the situation.

(SPEAKING IN FOREIGN LANGUAGE)

NOVAK: Of course we have to take the proper precautions, so everyone is going to have to wear one of these.

Everyone who enters the hospital has their temperature taken. If they have a fever, they're separated for checks before they can come in.

The hospital has set up these triage tents outside for anyone who may be showing suspicious symptoms. If they're suspected of having MERS, they're

brought here to these isolation booths for further testing.

For the safety of the other patients in the hospital, anyone with a confirmed case of MERS is kept at a completely separate building right here

in negative pressure rooms.

There are three panels of class separating us from the people beyond those doors who have been infected with MERS. And they're being monitored using

these screens here. Right now, isolation is the key. Of course we know there's no vaccine, so everything is being done to make sure that these

people are kept quarantined and that other patients and the medical staff are being protected.

The hospital is keeping a tight control over everyone that comes in and out, so we have to sign our names and leave our phone number as a record of

the fact that we've been here and of course use hand sanitizer when we leave.

The head of the hospital Kim Ming-qi (ph) says as far as know the disease is not airborne, so I think we can control it soon enough.

This hospital is just one out of dozens across the country that have been or may have been exposed to MERS. It spread among people who had close

personal contact with patients who often had no idea they were infected.

The extra measures we see here today are part of a desperate effort to prevent the virus from spreading any further than it already has.

Kathy Novak, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: An Egyptian city popular among tourists suffered an attack on Tuesday. The Egyptian health ministry says the two attackers were killed

and that five people were injured in Luxor. The state run media outlet says the suicide bomber blew himself up near the temple complex.

The blast was followed by gunfire, that's according to the health ministry.

It says civilians and security personnel are among those injured.

A senior U.S. official says the White House is considering sending about 500 more troops to Iraq, most of them will train and advise Iraqi forces.

Now this announcement comes amid new violence in Baghdad. At least two people were killed when a car bomb exploded on a busy street. This video

appears to show the aftermath of the attack, though CNN cannot verify its authenticity.

At least seven people were injured.

Now, the Texas police officer caught on video throwing a teenage girl to the ground at a pool party has resigned. He has not been charged, but the

case remains under investigation.

Now police who were responding to calls about a fight when the incident occurred on Friday. The police chief says the city's policies and training

do not support the policeman's action.

(BEGIN VIDEO CLIP)

[08:35:33] CHIEF GREG CONLEY, MCKINNEY, TEXAS POLICE: Eric Casebolt has resigned from the McKinney Police Department. As the chief of police, I

want to say to our community that the action of Casebolt as seen on the video of the disturbance at the community pool are indefensible.

(END VIDEO CLIP)

LU STOUT: Now there's been debate whether the action was racially motivated. A white witness says the officer was targeting black teens and

while a black witness says it was not racial. Now police were trying to establish order.

Now, FIFA's secretary-general says that the start of the bidding process to stage a 2026 World Cup is being postponed.

Now Jerome Valcke made the comments at a news conference at the Russia's sports minister and the chief of the 2018 World Cup organizing committee

just a short time ago.

Now FIFA has been rocked by U.S. and Swiss probes and allegations that some World Cup bids were tainted by corruption. Valcke also denied any

wrongdoing in connection with a $10 million payment to the Caribbean football union.

(BEGIN VIDEO CLIP)

JEROME VALCKE, FIFA SECRETARY-GENERAL: The money was given to the (inaudible) committee of FIFA as it was given to the (inaudible) compliance

committee of FIFA. None of the chairman of both of these committees have found any wrongdoings an anything would justify to blame FIFA's

administration or to blame the secretary-general of FIFA, to blame me. Nothing.

So, I'm sorry. I don't know what to say more than that. I have no more answer about this case. I have no more thing to say.

I mean, you have decided that after Blatter I have to be the head to be cut. Fine.

(END VIDEO CLIP)

LU STOUT: A testy Jerome Valcke there.

Now British comedian and host of Last Week Tonight John Oliver is appealing to FIFA's embattled former vice president to start dishing the dirt on

other officials like he promised last week.

Now Jack Warner made the threats in a paid ad on Trinidad TV entitled "The Gloves Are Off." And Oliver responded by buying his own ad at the same

station, which he dubbed "The Mittens of Disapproval Are On."

Oliver says he did it in the hope of catching Warner's attention.

(BEGIN VIDEO CLIP)

JOHN OLIVER, HOST, LAST WEEK TONIGHT: The point is, Mr. Warner do not blue ball the entire planet by promising spectacular FIFA revelations and not

delivering. I am begging you release everything. Because here's my argument, why the hell not? It's not like you're not already potentially

in a lot of trouble. Seriously, I have been looking through the indictment and good luck with that.

(END VIDEO CLIP)

LU STOUT: Now no word yet on whether Jack Warner has answered John Oliver's ad.

You're watching News Stream. And still to come on the program, the Chinese smartphone giant Xiaomi branches out from online to offline. We visit its

new brick and mortar store here in Hong Kong.

(COMMERCIAL BREAK)

LU STOUT: All right. Welcome back.

Now Xiaomi is among the world's biggest smartphone makers, but its footprint is mostly limited to Asia. Now Xiaomi phones are only sold in

eight markets marked here in red on the map.

And although there's been talk of expansion to Russia, Turkey and South America. And until now, phones sold outside of mainland China could only

be bought online. Now that is changing with the new store here in Hong Kong. CNN's Sophia Yan takes a look.

(BEGIN VIDEOTAPE)

[08:40:03] SOPHIA YAN, CNN CORRESPONDENT: This is Xiami's 20th Mi Home Store. And the first outside mainland China. Tucked away on the 20th

floor of an office block, this isn't your typical tech store, but it's already creating a stir.

UNIDENTIFIED MALE: I live in Switzerland. It's actually my first day of honeymoon. I saw (inaudible) post on Facebook, and we decided to come

here, because yeah, I'm very interested in Android products in general and of course also in Xiaomi, because I know it's kind of a raising brand.

YAN: Xiaomi hopes these stores will boost its growing fanbase.

ZHANG JIAN HUL, GENERAL MANAGER FOR AFTER SALES, XIAOMI (through translator): Xiaomi Mi Home is really a customer experience store. It has

three main purposes. The first is to showcase all our new products. The second is our after sales one-stop shop. And third, it's the place for

fans to mingle.

YAN: Alongside the service desk where Xiaomi says it will repair your phone while you wait, fluffy bunnies adorn the walls and shelves, family

photos look back at you.

That's former Google exec and now VP of international for Xiaomi Hugo Barra. And the homie feel extends even further.

This is my favorite part of the entire store, its' a Xiaomi living room where you can try out any of your products before you buy them. You can

play video games on the smart TV. You can weigh yourself on the scale, which is linked to their fitness tracker the Mi band.

Moving this way to the end the store you'll see it actually bears a striking resemblance to one of their main competitors -- open space, these

tables, these huge pictures, it's all to showcase Xiaomi's flagship products: low cost smartphones.

The brand is taking on Apple and Samsung in China already and faring very well. But this marks the start of what's likely to be a much tougher fight

as Xiaomi's global push begins in earnest.

Sophia Yan, CNN Money, Hong Kong.

(END VIDEOTAPE)

LU STOUT: Interesting showroom design there.

Now rooms like these are just one way Xiaomi is trying to distinguish itself from competitors. Now the company relies heavily on a loyal

fanbase. In fact, it holds regular fan events like this one in Hong Kong last year.

And yes, that is Xiaomi's global vice president Hugo Barra dancing on stage.

And besides these over-the-top performances by executives, the company also gives out free products and recruits consumers to test out new products

before they are released.

And that is News Stream. I'm Kristie Lu Stout. But don't go anywhere. World Sport with Amanda Davies is next.

END