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Greek Bailout Deadline Hours Away; 3rd Week of Volatile Trading in China Markets; South Carolina Votes to Bring Down Confederate Flag; Technical Glitches at NYSE, "Wall Street Journal," United Airlines; FBI Cyberthreat Warning; FBI Backdoor Access Makes Security Vulnerable; Pope Francis Visits Bolivia; Trump: Bomb Iraq Oil Fields to Get ISIS; Clinton Damage Control over Answer to E-mail Question; Young Girls Victims of Internet Extortion; Russian Interior Minister Warns Against Dangerous Selfies. Aired 2-3a ET
Aired July 08, 2015 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[02:00:34] ROSEMARY CHURCH, CNN ANCHOR: With banks closed, frustrated citizens are queuing up at cash machines and the Greek government has only hours to meet an end of the day deadline.
Plus, the South Carolina House votes to remove the Confederate flag from state grounds.
And this is not your grandfather's al Qaeda. Hear the FBI director's new warning about ISIS.
Hello, I'm Rosemary Church. Welcome to our viewers in the United States and all around the world. Thanks for joining us. This is CNN NEWSROOM.
And we begin in Greece where the clock is ticking for government to lay out its proposal for a new bailout from European lenders. Greek banks will now be closed until at least Monday and people are still limited to 60-Euro daily withdrawals from ATMs. Reuters quotes the head of the Greek Banking Association who says the ATMs will have enough cash until Monday. Greek leaders want a new three-year bailout, promising tax and pension reforms in return. But it's not clear how much money they are asking for. We expect to hear many of the details today.
CNN's Isa Soares is in Athens this morning and joins us live with the latest.
Isa, the big question is whether Greek leaders understand this is their last chance to propose solid reform measures or perhaps risk being dumped from the Eurozone. Is that message getting through and what sort of reforms do the European leaders want to see?
ISA SOARES, CNN CORRESPONDENT: I think from what we saw yesterday in Europe, discussions being had I think the message was abundantly made clear to them. They have until the end of the day here, midnight here to put the proposals through. The credible reforms they want to put through and then they will consider that for the next couple of days both finance ministers and the E.U. summit leaders will meet on Sunday to see if those measures go far enough but it's there have been major sticking points between them and they haven't seen eye to eye, that's for sure.
Let me talk you through the major points that have come up from both sides. We have a list of some of the points. Raising the retirement age. This was a sticking point for a long time. But now Greece will raise it from 62 to 67 years of age. That is a tick in the box, let's say. And the next point is reforming the pension system. Europe has been asking for more pension cuts in Greece but Greece is saying this is a major red line. Our pensioners have seen huge cuts already. We can't make this any worse. What Europe is saying, you need to reform the pension system. What happens is that Greece subsidizes the pension system from the national budget and Europe is saying, why don't you make the system self sufficient so people pay in what they get out at the end so they will have more independence on that front. That is one thing that Europe is asking for. Then Europe wants Greece to cut spending. And Greece is saying we won't cut spending what about if we raise taxes on businesses. Europe says we don't want you to raise tax on business. So I think there is a dilemma where they are going to cut spending, which is better, raising taxes or cutting spending. And they will agree to cut military spending. And Europe wants Greece to eliminate the VAT on islands. Greece says our islands depend on transportation costs and tourism. If you eliminate that, that will take a hit on the islands and the tourism -- Rosie?
[02:04:48]CHURCH: The clock is ticking by. We'll see the details in the not so distance future.
Isa Soares reporting live from Athens. Many thanks to you.
China's markets are in the third week of volatile trading. The government announced another round of dramatic measures to halt the slide, including committing brokerages to buying billions worth of stocks. Here's a look at the numbers. We'll bring those up if we can. The Shanghai Composite up 5.44 percent. The Shenzhen Composite up 3.77 percent, very different to the numbers we were looking at 24 hours ago. Although stocks have moved into that positive territory, there are still major concerns about what this slide says about the world's second-largest economy.
David McKenzie takes a closer look at the potential impact.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN CORRESPONDENT: Some say the bubble has burst. Some say it is a stock market crash. How bad is the epic slide of Chinese stocks? Chinese stocks have been on an epic slide. In three weeks, the Shanghai Composite lost a third of its value. To put it in perspective, some say it is worse than the Greek economic meltdown with the loss in value being 10 times more than the entire Greek GDP.
The Chinese stock market is not like the New York Stock Exchange. The government has a huge amount of control over it all the time. It can only go up a certain amount and down a certain amount but every day it has been bleeding value some they have stopped IPOs and injected cash in to the system to try to stop the slide and they are saying there shouldn't be this panicked sentiment in the market. But by even saying that perhaps they are driving more panic.
What about the Chinese people? Individual investors have been hurt and hurt badly by the slide. Millions of them piled in to the markets because of loosening regulation allowing ordinary Chinese to borrow money to invest, so-called margin trading. They will be hurting really badly.
Other than ordinary investors, the person worrying the most, probably Xi Jinping of China, because the government helped to push the stock market rally and now everything they are doing seems to be failing. And in the Communist Party, everything is about power and stability.
Should you panic? Yes and no. Only about 1.5 percent of the value in the Chinese stocks is owned by foreigners because of the tight controls of foreign ownership in the Chinese stocks. There isn't this web effect. If the Chinese stock crashed, it doesn't affect the worldwide system like the Lehman Brothers collapse. But there is a sense that the sliding stock market is a symptom of an ailing Chinese economy, the world's second-biggest economy. If China sneezes, the world will catch a cold.
(END VIDEOTAPE)
CHURCH: David McKenzie reporting there.
And Ivan Watson visited a brokerage house in Shanghai and joins us now with what he heard from investors.
Ivan, what did the investors say to you about how bad they think things will get and whether the trouble could perhaps spread into the wider Chinese economy?
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: The mood Wednesday among investors I talked to both young and old was of despair after seeing this stock market lose more than $3 trillion in value in three short weeks. A lot of people who put their savings into the stock market saying that it was dwindling away to nothing. Wives are threatening to divorce their husbands over the losses of money.
But talk about a wild ride and some crazy mood swings. Now we see that the shanghai composite with about an hour left of trading, seems to have reverse the losses of yesterday, gaining more than 6 percent. We still have 50 minutes left of trading but it gives you a sense of how crazy it's been for people seeing the shift from despair to euphoria.
Another thing we heard from investors was a repeated appeal to the Chinese government either saying, hey, they've got to do more or basically the Chinese authorities are kind of screwing us, the little guys, or a sense of faith in the Chinese government that they would step in and save everybody somehow. That gets to the crux of how big a role the Chinese government plays in the stock market here. It isn't quite a free market, like what you'd see on the New York Stock Exchange or London. The government plays a big role in this stock market. And that's why the plunge that we witnessed could have big implications, analysts say, on the government itself.
Take a listen to what one analyst told us.
(BEGIN VIDEO CLIP)
OLIVER HUI, MARKET ANALYST: So far, this crisis or panic is contained in the stock market alone. But if the government cannot rebut or calm down the market in very short times, weeks or days, then this kind of pessimistic sentiment will be easily spilled over to the banking sectors. Because the leverage -- I mean, the people borrow money to buy the stock. Where the money come from? Most of them from the banks.
(END VIDEO CLIP)
[02:10:24] WATSON: So here's one of the announcements the government made that will probably be welcomed by many of the retail investors who are worried about their savings. The government is saying they will investigate so-called malicious short selling and suggesting that big fish who may have been playing with the market, betting it would go down further, that they may be investigated. And that's probably going to be welcomed by people very worried about the direction that things have taken over the course of the last three, quite crazy weeks here -- Rosemary?
CHURCH: It has been a roller coaster ride. Perhaps not over yet.
Our Ivan Watson keeping an eye on what is happening there from Shanghai in China. Many thanks to you.
Now to the U.S. state of South Carolina, where a Confederate flag may be one step closer to being removed from the capitol grounds. The state House of Representatives has voted to remove that battle flag, even surpassing the required two-thirds majority. These are pictures from the state House floor where the debate dragged on into the early hours of the morning. An overwhelming majority of the state Senate also voted to remove that flag earlier this week when the debate was taking place late Wednesday.
A representative from Charleston said it was time for less talk and more action. Take a listen.
(BEGIN VIDEO CLIP)
STATE REP, JENNY HORNE, (D), SOUTH CAROLINA: I cannot believe that we do not have the heart in this body to do something meaningful such as take a symbol of hate off these grounds on Friday! And if any of you vote to amend, you are ensuring that this flag will fly beyond Friday. And for the widow of Senator Pinckney and his two young daughters, that would be adding insult to injury! And I will not be a part of it!
(END VIDEO CLIP)
CHURCH: Very emotional lawmaker there.
And now the bill goes to Governor Nikki Haley's office for her signature. She is calling this a new day for the state.
Officials are trying to figure out how massive computer glitches hit United Airlines, the New York Stock Exchange and the "Wall Street Journal" Internet home page all within hours of each other.
CNN's Rene Marsh reports.
(BEGIN VIDEOTAPE)
RENE MARSH, CNN AVIATION & GOVERNMENT REGULATION CORRESPONDENT (voice- over): For nearly four hours, the New York Stock Exchange was at a halt. A technical computer glitch forcing the suspension of trade on the big board. It's unclear this hour how much money may have been lost but, in the end, the Dow was down over 200 points.
And in the travel world, from California to Chicago, a backlog of passengers stuck on long airport lines while all of United Airlines flights were grounded.
GROUND: United 1258, when you say it's going to be a long wait how long?
UNITED PILOT: Well, they have a system-wide ground stop due to a computer outage.
MARSH: A system-wide failure shut down operations for the major U.S. carrier for hours as well.
UNIDENTIFIED TRAVELER: We were checking in and, basically, was told the flight was cancelled and they started rerouting us.
UNIDENTIFIED TRAVELER: I mean, we're just taking it as it goes.
MARSH: More than 800 flights delayed, another 59 cancelled. Agents were forced to issue hand-written tickets.
UNIDENTIFIED AIRLINE ANALYST: The problem is when it happens at a giant airline like United you can get chaos. Passengers just have a matter of minutes to make their connecting flights. When you have flights that are held for hours, that can cascade through the entire season.
MARSH: But government officials quickly tried to assure the public that these were not malicious attacks.
JEH JOHNSON, HOMELAND SECURITY SECRETARY: The malfunctions at United and the stock exchange were not the result of any nefarious actor.
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: There is no indication that malicious actors were involved in these technology issues.
(END VIDEOTAPE)
[02:14:51] CHURCH: Rene Marsh reporting there for us.
Well, the head of the FBI has a warning for Washington. Why he says the U.S. is losing ground to ISIS in cyberspace.
We're back in a moment.
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CHURCH: The United Nations has just released a disturbing report about war-torn Syria. The number of refugees fleeing the five-year conflict in Syria to neighboring countries has now passed four million. This map shows just where they're heading. Turkey has received the most refugees, about 1.8 million so far. The U.N. expects another quarter million people to flee Syria by the end of this year.
The FBI is warning U.S. officials that there is a growing cyberthreat when it comes to ISIS. FBI Director James Comey says that the terror group is using encrypted programs to prevent law enforcement from accessing its communications and he says his agents don't have the tools to stop it.
Jim Sciutto reports.
(BEGIN VIDEOTAPE)
JAMES COMEY, DIRECTOR, FBI: This is an enormous problem.
JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): The top law enforcement official gave Congress a frank and sobering warning --
(SHOUTING)
SCIUTTO: -- terrorists are going dark in cyberspace.
COMEY: Sometimes people watch TV and think that the FBI must have a way to break that encryption. We do not. Which is why this is such an important issue.
(SIREN)
[02:20:12] SCIUTTO: Terrorist use of encryption means that the FBI cannot prevent attacks on U.S. soil, like the one in Texas two months ago.
COMEY: We are stopping these things so far through tremendous hard work, use of sources, use of online undercovers, but it is incredibly difficult. I cannot see me stopping these indefinitely.
SCIUTTO: The issue, online conversations between American supporters of ISIS and other terror groups and terrorists overseas, like the ISIS recruiter, Junide Hussein (ph), increasingly hidden by highly encrypted and available messaging apps like Sure Spot and Kick.
COMEY: This is not your grandfather's al Qaeda. Our job is to look at a haystack the size of this country for needles that are increasingly invisible to us because of end-to-end encryption.
SCIUTTO: Here's how it works. A person sends a message like, "I want to fight for ISIS," over the web. Encryption software scrambles that message and only a recipient using the correct key can unscramble it to see its original meaning. The solution, argues the FBI and many lawmakers, is to allow law enforcement access to encrypted messages with a search warrant.
Tech companies are resisting, concerned they will lose business from privacy conscious customers. Silicon Valley says it lost tens of thousands of dollars overseas competitors following revelations of mass surveillance by the NSA.
JAMES LEWIS, CENTER FOR STRATEGIST AND INTERNATIONAL STUDIES: The encryption debate is really about a trade. How much more secure do you want to make Americans and their personal data versus how much opportunity do you want to create for terrorists and other criminals to communicate safely.
(END VIDEOTAPE)
CHURCH: Joining me is Susan Landau via Skype from Amherst, Massachusetts. She is a cybersecurity expert that co-authored a report warning government that access to encrypted data for national security is impossible and dangerous.
Thank you for joining us.
So, Susan Landau, we saw in Jim Sciutto's piece that the FBI believes the solution is to allow them and other legal authorities access to encrypted messages with a search warrant but you don't agree. Why is that?
SUSAN LANDAU, VISITING SCHOLAR, HARVARD COMPUTER SCIENCE DEPARTMENT & CYBERSECURITY EXPERT: That is not exactly the problem I have. If they have legal authority, they should be able to access things. The problem is that they are asking for exceptional access in the systems are designed so they can always get in. And security is very hard to do. When you do exceptional access and they haven't described what that means, you break security and, in the end, that makes us all less secure rather than more so.
CHURCH: James Comey says privacy technology can be detrimental to public safety. What do you say to that?
LANDAU: If you look at one set of issues and he brings up things like kidnappings and ISIL, I can see where he is coming from. But our real national security problems are the threat of intellectual property. The U.S. is producing ideas these days, how to make pharmaceuticals, build software and so on and so forth. To protect those we need to protect the data. We need the security tools to encrypt the data at communications and at rest and do so securely. And the things that enable wiretapping may create problems there. That's where the conflict lies.
CHURCH: How do you prevent terrorists from going dark with encrypted communications? There is an impression that ISIS is ahead of U.S. authorities when it comes to encryption in cyberspace. Is that a reality?
LANDAU: The fact is that enemies of the United States have always spoken in code. That was true with organized crime and the 9/11 terrorists and the Soviet Union. I am not a law enforcement officer. But where you need to go in that particular problem is to start with when you see the communications going from ISIS and all of its followers and see who its followers are and start to track what they do. And that's where you need to go. It's a hard problem. But you are balancing that issue against the need to protect U.S. industry, U.S. government. And we have seen any number of hacks, the Sony hack, a large numbers of hacks that have resulted as a result of not doing secure encryption secure methods of keeping the data safe.
CHURCH: Susan Landau, many thanks to you for shedding light on a very complex situation. We appreciate it.
LANDAU: Thank you.
[02:25:01] CHURCH: To a different story now. And adoring followers of Pope Francis warmly greeted him as he visited La Paz, Bolivia, earlier. Watch as the Catholic leader appears to catch a bouquet of flowers from the court. His visit is part of an eight-day tour of South America. The pope spent a short amount of time in La Paz before moving on to Santa Cruz in Bolivia.
His visit to La Paz was a short one due to concerns over altitude sickness, as CNN's Shasta Darlington explains.
(BEGIN VIDEOTAPE)
DARLINGTON (voice-over): La Paz celebrating the coming op Pope Francis. At 3600 meters, nearly 12,000 feet is quite a challenge for a 78-year-old pontiff.
(MUSIC)
DARLINGTON: At the airport, Pope Francis greeted by indigenous children and presented with a traditional chupa by President Evo Morales, a traditional bag to store coca leaf.
According to many Bolivians, it is the best way to stave off altitude sickness and it's sold at markets like this. Piled of tomatoes, cheese and eggs, and next to the dried chilies, coca leaves.
Donia Maria (ph) chews he leaves every day.
(SPEAKING FOREIGN LANGUAGE)
Do you think Pope Francis will try it?
UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)
DARLINGTON: "He's going to chew it," he says. "He's here. He's going to chew it." Further down the road, Donia Maria (ph) shows me how it is done.
"It is for hunger," she says. "It gives you energy and for altitude."
(on camera): She says it will get rid of hunger, make me feel stronger and hopefully help with the headache.
(voice-over): And it does help with my headache. Then there is the tea made with coca leaf. It is the main ingredient of cocaine but chewing and drinking tea are considered safe and legal here.
The Vatican tried to minimize the potential effect by limiting pope's trip to four hours.
(SINGING)
DARLINGTON: Joyous followers lined the way as the pope drove from the airport to the main plaza. He showed no signs of fatigue as he kissed children and waved to crowds. But we may never know if coca leaf helped to keep up his spirits.
Shasta Darlington, CNN, La Paz.
(END VIDEOTAPE)
CHURCH: We'll take a break right now. But still to come, CNN's Anderson Cooper asks presidential candidate, Donald Trump, what he would do to stop ISIS. His answer? Bomb the oil fields.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR, A.C. 360: You don't think that bombing Iraqi oil fields, which are now control by ISIS, but bombing Iraqi oil fields is going to anger huge numbers of people?
DONALD TRUMP, (R), PRESIDENTIAL CANDIDATE & CEO, TRUMP GROUP: I would bomb the hell out of those oil fields.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[02:31:12] ROSEMARY CHURCH, CNN ANCHOR: A warm welcome back to our viewers here in the United States and around the world. I'm Rosemary Church. We want to update our top stories this hour.
South Carolina lawmakers have voted to remove a Confederate flag from capitol grounds after hours of debate. The measure now heads to the desk of Governor Nikki Haley to be signed into law. This comes weeks after a racially motivated shooting at a predominantly black church that killed nine people. The shooter posed with pictures of a similar Confederate flag and he said that he wanted to start a race war. That flag holds an important place in southern history, as it was carried into battle during the U.S. Civil War. For many African-Americans, it is a painful reminder of slavery. Banks in Greece will stay closed until Monday with a 60-Euro daily
limit on ATM withdrawals. The government has formally requested a three-year bailout from European lenders, promising tax and pension reforms in return. Details are expected in the coming days.
China's markets moved into positive territory today after the government announced more measures to stop the slide. Interest rates were cut to a record low. And brokerages plan to buy billions worth of stocks. The Shanghai Composite has lost 32 percent since mid June.
The morning commute is underway in London, where a tube strike is causing chaos for commuters. The strike has closed the underground network until Friday. Transport for London has added 200 buses and other means of transportation to try to help millions of people get around.
"Bomb the oil fields," that's what U.S. Republican presidential candidate, Donald Trump, says he would do to get ISIS under control.
Anderson Cooper sat down with Trump for an extensive interview and here's more of what he sad to say.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR, A.C. 360: I want to ask you about ISIS. You said no one would be tougher on ISIS than Donald Trump.
DONALD TRUMP, (R), PRESIDENTIAL CANDIDATE & CEO, TRUMP GROUP: Nobody.
COOPER: What would be you strategy?
TRUMP: The situation with ISIS has to be dealt with firmly and strongly. I would love not to be over there. That's not our fight. That's other peoples' fight. That's revolutions and whatever you want to call it --
(CROSSTALK)
TRUMP: -- religious wars. I would do things that would be so tough that I don't know if they would be around to come to the table.
COOPER: What sort of things?
TRUMP: I would take away their wealth, the oil. What you should be doing now is taking away the oil.
COOPER: What does that mean?
TRUMP: Bomb the -- I'll tell you what I hate about this question. If I win, if I win -- I didn't want to answer this question and I thought maybe I could go without answering it. If you look at the great General George Patton or General MacArthur, they didn't talk about what they did. And I hate to -- if you remember when I said I have a plan but don't want to talk about it, the problem is people said, oh, he doesn't have a plan. So I had to do it. But I hate talking about it. If I win, I will do it. So if win, I would attack the oil sites that are controlled and owned by -- I said owned. They're controlled by ISIS. They are taking tremendous money out of it. They are renovating a hotel in Iraq. Can you believe it?
COOPER: Wouldn't you be destroying the wealth of Iraq?
TRUMP: No, no. There is no Iraq. There is no Iraq.
(CROSSTALK)
COOPER: Iraqis might differ --
(CROSSTALK)
TRUMP: Excuse me. There are no Iraqis. They are broken up into to so many different factions.
COOPER: You don't think that bombing Iraqi oil fields, which are now control by ISIS, but bombing Iraqi oil fields is going to anger huge numbers of people?
TRUMP: I would bomb the hell out of those oil fields. I wouldn't send many troops because you won't need them by the time I get finished. I would bomb the oil fields. Then I would get Exxon and the oil companies to go in. They will rebuild them so fast your head will spin.
(CROSSTALK)
COOPER: You have to have U.S. troops --
(CROSSTALK)
[02:35:14] TRUMP: Excuse me. You ever see how fast they put up rigs? These guys are unbelievable. I'd go to ExxonMobil. I'd go to the top five oil companies. They'd be in there. They'd be finished so fast --
COOPER: Don't you need U.S. troops to protect them?
TRUMP: Yes, you put a ring around them. You put a ring. You have just taken all the wealth away. This is what should be done. But no politician is going to do that.
(END VIDEOTAPE)
CHURCH: Donald Trump there.
And Anderson also asked Trump about a report from the "Washington Post" that illegal immigrants are working at the construction site at his hotel in Washington. This is after Trump said some Mexican immigrants in the U.S. are criminals and rapists.
(BEGIN VIDEOTAPE)
COOPER: The "Washington Post" says that some of the workers that are building your hotel in Washington, D.C., are illegal. They talked to 15 workers and a number came here legally through asylum but a number said they are illegal. Isn't it hypocritical for you saying that illegal immigration is killing the country to be employing illegal aliens?
TRUMP: I read the story. We are building a great hotel on Pennsylvania Avenue and it's being done beautifully. I'm very cognizant of that. And by the way, that story does not name any names. They said they spoke to one or two but they don't name them and they don't know if it's true.
COOPER: What they say is several of the men from El Salvador, Honduras, Guatemala have earned U.S. citizenship or legal status through immigration programs targeting Central Americans fleeing civil wars and natural disasters. Others quietly acknowledge they remain in the country illegally.
TRUMP: They have to give us the names, because we --
(CROSSTALK)
COOPER: If they're illegal, you know they are not going to give you names.
TRUMP: No, they have to give us the names. And I have to say this, we believe so strongly -- I hired a very big contractor, one of the best in the world to build the building. It's their responsibility to make sure they have --
(CROSSTALK)
COOPER: Doesn't the buck stop with you? You are paying their salaries.
TRUMP: Yes. Absolutely. We have gone out of air way to make sure that everybody in that building is legal. And we do have some that became legal. And -- wait a minute. We have some -- many, I think -- that became, frankly, me, you, everybody. Ultimately, we are all sort of in the group of immigrants. Right? But we have done that to the absolute letter of the law.
(END VIDEOTAPE)
CHURCH: And the U.S. Republican National Committee chairman, Reince Priebus, reportedly wants Trump to tone down his immigration rhetoric. A Republican source says that they spoke Wednesday on the phone. Priebus reportedly told Trump the way Republicans address immigration is important to winning back the Hispanic vote. Trump's campaign manager says the two speak regularly.
Democratic Presidential Candidate Hillary Clinton's team is doing some damage control over her answer to a CNN question about her e-mails.
Listen to her exchange with chief political correspondent, Brianna Keilar, on Tuesday.
(BEGIN VIDEO CLIP) HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE & FORMER SECRETARY OF STATE: People across the government knew that I used one device. Maybe it was because I am not the most technically capable person and wanted to make it as easy as possible.
BRIANNA KEILAR, CNN CHIEF POLITICAL CORRESPONDENT: But you said that they did the same thing, that they used a personal server.
(CROSSTALK)
CLINTON: Personal e-mail.
KEILAR: -- and deleted e-mails from them?
CLINTON: You are starting with so many assumptions. I've never had a subpoena. There is nothing -- again, let's take a deep breath here.
(BEGIN VIDEO CLIP)
CHURCH: In fact, Clinton had been subpoenaed in March. A spokesman said Clinton understood the question to be, if she was under subpoena when the e-mails were deleted.
Nick Merrill says, quote, "The suggestion was a subpoena was pending at the time. That was not accurate. In fact, Congressman Trey Gowdy did not issue a subpoena until March, months after she had done that review."
The FBI is asking the public to help them find hundreds of teenagers who have been victims of sextortion. It happens when predators coerce young girls into sending them naked pictures of themselves, which are then traded on the Internet.
CNN's Pamela Brown spoke to one victim who helped investigators crack one of its biggest cases.
(BEGIN VIDEOTAPE)
ASHLEY REYNOLDS, VICTIM OF INTERNET EXTORTION: I was just the good girl of school. I didn't ever get in trouble or anything like that. I was just freaked out.
PAMELA BROWN, CNN JUSTICE CORRESPONDENT (voice-over): Ashley Reynolds just finished her freshman year in high school when a stranger suddenly started threatening her with text messages. "I have naked pictures of you. They're going to be sent to all your friends." And the threats kept coming. "I need you to take pictures in your bra if you don't want them to see you."
[02:40:01] REYNOLDS: I knew there was no picture of me, not to my knowledge at least.
BROWN: But Ashley, who was 14 years old at the time, remembers falling victim to the mind games of a sexual predator.
REYNOLDS: He was manipulating my mind to think I had pictures of me, so I didn't know. Maybe I had my laptop up and maybe I was changing or something like that.
BROWN: The man behind the threats, Lucas Chansler, of Florida, now in prison serving 105 years.
Ashley, at the time, feeling she had no choice sent Chansler a few naked pictures of herself thinking he would go away, but that was wrong.
REYNOLDS: What started off as seven pictures that one night, turned into around 60 pictures a night.
I was so scared. I didn't know where it was going to go. I didn't know how far it was going to go.
BROWN: Ashley is one of 350 young girls victimized by Chansler in 26 states across the U.S. along with Canada and the U.K., according to court documents.
Federal agents raided Chansler's Florida home in 2010. On his computer, more than 80,000 images and videos, some showing the young victims crying, pleading with him.
FBI officials are asking for the public's help to identity hundreds of his victims. So far, they have identified 109 girls, including one in Florida.
LARRY MEYER, FBI SPECIAL AGENT: He came out and threatened her he was going to harm her and her family if she didn't produce for him.
BROWN: Now 20 years old, Ashley is on a crusade. Her story in "Glamour" magazine. Hoping to save other young girls from predators like Lucas Chansler.
REYNOLDS: I feel like I have a meaning to help other girls so they don't have to go through this like I did.
(END VIDEOTAPE)
CHURCH: Many thanks to Pamela Brown for that report.
A short break. Still to come, AC/DC drummer, Phil Rudd, learns his sentence for threatening to kill a former employee and he hits a sour note on his way out of court. The details just ahead.
(COMMERCIAL BREAK)
[02:45:13] CHURCH: Welcome back, everyone. Two migrant workers are on trial for the deaths of two British backpackers in Thailand. David Miller and Hannah Witheredge were found dead last year on a beach. The migrant workers, from Myanmar, originally confessed to the killings but they later retracted their confessions, saying they had made them while being tortured. The men could face the death penalty if found guilty. Rights groups say the case is raising questions about the treatment of laborers in Thailand.
AC/DC drummer Phil Rudd has been sentenced to eight months home detention in New Zealand. Rudd pleaded guilty in April to drug possession and threatening to kill a former employee. His attorney described the incident as just an angry phone call.
Here's Rudd as he left court earlier today.
(BEGIN VIDEO CLIP)
PHIL RUDD, AC/DC DRUMMER: We're looking at all options. (EXPLETIVE DELETED).
UNIDENTIFIED MALE: Any idea whether you might be appealing or not?
RUDD: We're taking those options. Out of the way, (EXPLETIVE DELETED), job pal. (EXPLETIVE DELETED). Get a real (EXPLETIVE DELETED) job. (EXPLETIVE DELETED) (EXPLETIVE DELETED) (EXPLETIVE DELETED).
UNIDENTIFIED MALE: Excuse me.
RUDD: I have a job.
(END VIDEO CLIP)
CHURCH: Interesting. Rudd's lawyer is appealing the sentence. And AC/DC has replaced Rudd for its record tour that starts next month.
One to get an update on multiple typhoons.
Pedram Javaheri is with us.
Three typhoons in East Asia.
(CROSSTALK)
CHURCH: Incredible with the danger here.
PEDRAM JAVAHERI, AMS METEOROLOGIST: The immediate danger around the Guangdong Province in Hong Kong, one of the main areas that will see tremendous rainfall over the next couple days. We'll show you video coming out of the region as the storm is sitting offshore. And you see the beaches taking on water damage across the board. And the harbors taking a tremendous pounding from the waves offshore with a storm system that had wave heights up to seven meters. It's weakening and paralleling the coastline. Show you Hong Kong. Officials know all too well about the tropical features. The clouds are coming into the area. We don't suspect much of a wind problem but it's a rain issue with this storm system. It is going to weaken rapidly. It is a category 1 equivalent. And Typhoon Linfa. And some of the rainfall, 150 up to 200 millimeters of rain is possible. We have had a very, very soggy summer this portion of the world. And the temperature trend is in the low 30s. 70 to 80 percent chance for rain and thunderstorms over the next couple days. The storm parallels the coast. And you see the storm meander into the South China Sea. Chan- Hom over the open waters. This one goes right to shanghai. In 70 years of data keeping we have seen two storms come close to shanghai. Heavy rainfall Saturday into Sunday. Threat over this portion of the world.
I want to take you to Italy. In Europe, tornados are not uncommon. Germany sees about 30. Work your way to Italy, they see about 12. Sometimes some of the largest ones. And the video coming out of Italy showing you the impressive storm here that injured 20 people and took with it one life and really, really scary stuff when you see how close this person was able to get to this storm here, which is a western suburb of Venice with this tornado damaging businesses and property as well. But look at the trees, completely taking on the brunt of the storm system.
CHURCH: Unbelievable. We never think of tornados in that part of the world but, of course, we have been reporting on them in recent months, haven't we?
PEDRAM: We have been. We have been, yeah. They get about 12 a year.
CHURCH: Yeah, not as rare as we think.
Pedram Javaheri, many thanks to you. Appreciate it.
Most people think that selfies are fun. Not the Russian government. They say that taking personal snapshots carelessly could be dangerous, even deadly. We'll explain.
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[02:5339] CHURCH: Welcome back, everyone. Nowadays, it seems everyone loves taking a selfie and it seems so fun. This is one here at CNN International NEWSROOM and others around the studio. But Russia's interior ministry is warning that taking a selfie can, in fact, be dangerous.
Kelly Morgan reports on the government's new campaign on the safe way to snap a selfie.
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KELLY MORGAN, CNN CORRESPONDENT (voice-over): The photographers train the cameras squarely on themselves, eyes focused on the tiny screen as they strike a pose. A memory is captured to last a lifetime. But beware, say Russian police. Some selfies are increasingly cutting lives short.
UNIDENTIFIED FEMALE (through translation): The number of accidents while people are take selfies have been growing constantly. People are looking for new perspectives in unforgettable places. They are taking risks. And forgetting great photos can be done in a safe environment.
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MORGAN: In response, Russia's interior ministry has launched a Safe Selfie campaign, complete with diagrams warning of potential lethal self portraits, many inspired by actual events. Selfies with dangerous animals. Portraits from high buildings. Photos taken from cliff edges. And selfies in a moving train. He was only injured but Russian police say there have been 100 incidents this year alone and some have been fatal.
Most recently, this woman, picked here on this page. She died from a fall from a bridge while she was taking a selfie in Moscow.
The selfie obsession, this man tells us, is a relatively new trend in Russia and he quotes a Russian Proverb.
UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)
MORGAN: "You don't take a risk, you don't get Champaign." In other words, no risk, no reward.
Selfies are cool and trendy, these girls tell us.
Another pair say, yes, they're prepared to take a risk for an image that grabs attention.
(on camera): It looks like the selfie is here to stay, until we start feeling ridiculous taking these self portraits. Until then, Russia authorities say don't let that spectacular photograph be the last memory you ever make.
(voice-over): Kelly Morgan, CNN, Moscow.
(END VIDEOTAPE)
CHURCH: Just got to be careful. Of course, taking a selfie is usually pretty joyful. Just ask Pope Francis. He causes a stir in Quito, Ecuador, on Tuesday when he greeted some admirers bent over and posed for a selfie with a disabled child. The crowd loved it. Very up to date, this man.
And you have been watching CNN NEWSROOM. I'm Rosemary Church.
Next hour, I'll be joined by Max Foster. Stay with us.
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