Return to Transcripts main page

NEWS STREAM

Greeks Ask for Three Year Bailout; Iran Aims to Boost Tourism; Shanghai Composite Down 32 Percent Since June; Israeli School Teaches Technology to Ultra Orthodox. Aired 8:00a-9:00a ET

Aired July 08, 2015 - 8:00   ET

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

[08:00:12] ANDREW STEVENS, HOST: I'm Andrew Stevens in Hong Kong. Welcome to News Stream.

Don't panic: China tries to stem its stock selloff. The crisis of confidence has wiped trillions of dollars off the markets.

Plus, the EU warns Europe could be very different in just four days from now if Athens fails to strike a bailout deal.

And a CNN exclusive interview, Hillary Clinton addresses thorny campaign issues.

Now, Greece is formally asking for a third bailout after European leaders warned it has just four days to prove it is serious about getting

its economy in order.

We're going to be live in Athens in just a moment, but we begin first with a deepening sign of trouble in the world's second biggest economy.

China's stock markets have plunged again

More than 3 trillion dollars have now been wiped off share values since mid-June. To put that figure in perspective, it's 12 times more than

Greece's annual economic output.

So, big policy moves by Beijing have so far at least failed to stem this relentless selloff even after more than half of all the listed

companies suspended trade, stocks in Shanghai continued to tank, closing down by nearly 6 percent.

Over the past three weeks, the Shanghai Composite has lost and unnerving 32 percent.

Now, the tech heavy Shenzhen ended down today about 2.5 percent. And also today, the session marking the first real sign of contagion across the

region, shares in Hong Kong plunging by nearly 6 percent, Tokyo down by more than 3 percent.

And there's no clear indication yet just when this volatility will end.

Now, this crisis of confidence has also been spurred by a loss of faith in the government's ability to contain the damage. With Beijing's

policy moves not yet getting traction, China's security regulator warns that there's now a mood of panic, that's their word, among investors.

Let's go to our senior international correspondent Ivan Watson. Ivan joins us from Shanghai, the heart of this meltdown in the markets.

Ivan, first of all, what are you hearing on the streets there? We hear the regulatory authorities saying there's panic, there's irrational

behavior. What are you seeing and hearing?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, pretty much everybody I've spoken with, whether they are perspective students going to

-- trying to go to an elite business school here in Shanghai, or whether they are elderly kind of retirees who spend their days at a local brokerage

firm, they are all invested in this stock market, and almost all of them have seen losses.

As you mentioned, more than $3 trillion in wealth wiped out in the span of about three weeks. You ask somebody who works in these markets is

that scary, and they say, yeah, can you imagine how much money has disappeared. People here describing just the physical reaction to kind of

looking down at their phones and seeing these markets continuing to go down day after day.

We were at the final hour of trading at one of these brokerage firms, and there you had all of these mostly elderly investors, people who were

old enough to have seen the markets here tank in 2007, very worried, some of them quite upset standing around just trying to make sense of this all.

And clearly the many interventions now that the Chinese government has announced to try to stop this freefall have not made a difference thus far.

The most recent announcement coming from the Chinese Securities Finance Corporation which has announced that it will buy small and medium-

sized shares and that there would be an extension of some $40 billion in additional credit to investment houses to buy up more Chinese stocks.

This comes a couple of days after there was another announcement that these investment houses would pledge over the weekend to buy some $20

billion in shares. Up until now, that hasn't been enough to stop these devastating days on the stock markets here.

Take a listen to what some of these elderly investors had to say to me, Andrew.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): No, it's impossible for the market to bounce back any time soon. This is like the eight year war

against the Japanese. It may take eight years for the market to turn around.

[08:05:12] UNIDENTIFIED MALE (through translator): I know people who sold their houses to invest in stocks and now they're finished. Many

people were dreaming of becoming overnight millionaires. It doesn't work that way.

(END VIDEO CLIP)

WATSON: And let's again keep in mind the Chinese government throughout this kind of freefall it has cut interest rates, it has

suspended IPOs, Andrew, again pledged to buy up some $20 billion in shares. This was an announcement last weekend. And despite that, you now have, as

you mentioned, more than half of the companies listed on the Chinese stock markets, that's about 1,430 companies out of 2,776 companies, that have all

suspended trading in recent days. That is not a sign of confidence -- Andrew.

STEVENS: It's extraordinary, Ivan, Ivan Watson joining us from Shanghai there. But the extent of this intervention by the government and

still no clear sign that the government is winning its fight against trying to stop this market slide.

Ivan Watson in Shanghai, thanks very much for that.

Now even though China is a closed market, as we know, part of what has global investors worried is the potential for a spillover from stocks into

the broader economy, the real economy if you like.

Now a little earlier today I spoke to Frederic Neumann about that. He's co-head of Asian economics research at HSBC here in Hong Kong.

(BEGIN VIDEOTAPE)

FREDERIC NEUMANN, HSBC: In the south, it shouldn't have too much of a negative impact. Remember, the Chinese stock market is not as large

relative to the Chinese economy as say the U.S. stock market is in the U.S. or in the UK. The stock market is still relatively under developed. So if

it corrects, it is a spectacular move, but it doesn't necessarily impact the economy all too much.

STEVENS: But isn't there a sort of a multiplier effect in the fear factor that people are scared. They don't know what's going to happen.

They're not going to buy, so therefore the real economy is not going to have the same amount of activity going on?

NEUMANN: That's right. It's all about confidence, right, and economic growth is about confidence, investment is about confidence. So

the Chinese authorities are trying to stabilize the market just to make sure that a general economic confidence doesn't collapse along with the

stock market.

STEVENS: Can they stabilize the market?

NEUMANN: It is very hard. And, you know, the judges are still out on that, because we've seen in the last few days very high volatility. But

there is a struggle here between the sellers, the four sellers and those who are trying to stabilize the market. And we need to see when the dust

settles in a week or two whether the Chinese were actually successful in that.

STEVENS: Sounds to me like you're not convinced that the Chinese central government can control this.

NEUMANN: Ultimately, they can go for the nuclear option and just buy all the stocks that are out on the market. But they haven't done so,

because in part they don't want to necessarily undermine the market mechanism all at once.

But, there is certainly the need here to do something to reassure investors so the panic -- there's no panic -- panic sell on the market and

it snowballs into something bigger.

STEVENS: Let's talk about the reaction, the response by the central authorities. They have responded. And they've responded strongly. And it

hasn't worked. They have failed. Does Beijing now have a credibility crisis? And how big a problem is that for them?

NEUMANN: Well, I think it's too early to tell for that to be honest, because in part they can still ratchet up their response we're maybe only

halfway through this particular market correction. And they could still add measures to the market and once the forced selling subsidies maybe

market does stabilize.

STEVENS: But do you think they have been damaged at this stage, Fred, their credibility?

NEUMANN: Right, there is a broader issue here and that is if Beijing says we want the market to go up, but the market goes down, there's clearly

some people who would then say, well, does Beijing really control not just the market but the economy overall? And that is dangerous because the

economy right now requires a lot more stimulus in the months ahead just to stabilize growth.

So we need confidence to remain intact in Beijing.

STEVENS: Beijing has been very keen to move towards market reforms, to move towards a market which is sort of worked on fundamentals, let the

markets decide. Yet, here they are intervening enormously. Why don't they let this just play out? Let this wash through the system, make people

realize this is what happens in real stock markets?

NEUMANN: Well, at times if you have financial stress, and this might be one of these episodes, the government does need to step in and calm the

nerves through intervention. We saw it in Hong Kong, which is a bastion of free market economics...

STEVENS: But we didn't see it in 2000...

NEUMANN: We saw it in the U.S. as well.

STEVENS: Well, we didn't really see it in 2008 in the markets in the U.S. and Europe. I mean, China is playing to a different rulebook, isn't

it?

NEUMANN: China is trying to move its economy from a very controlled state to a more liberalized state, and that is two steps forwards, one step

back. So in this particular instance when you do see a sharp market rally and then the risk of a sharp selloff, there is obviously the knee jerk

reaction is to come in and try to stabilize the market.

And perhaps that's a wise move, because if you just let things take their natural course, maybe in the short run that could be quite damaging,

because the economy is in itself in a very precarious state at the moment.

(END VIDEOTAPE)

STEVENS: HSBC's Frederic Neumann there on those very, very sharp losses that we've been watching in China for the past three weeks.

And we've got more on the stock market crisis of course on World Business Today. Make sure you tune in for that. It begins in less than

one hour from now.

Just a short while ago Greece formally applied for another emergency loan. The Greek prime minister just made the case for a fresh bailout in a

speech to the European parliament.

Athens has been asked to submit its final proposal by Thursday so leaders have all 28 European Union nations can consider it at Sunday's

emergency summit. And the president of the European council says this is the absolute final deadline.

(BEGIN VIDEO CLIP)

DONALD TUSK, EUROPEAN COUNCIL PRESIDENT: Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its

banking system.

And for sure, it will be most painful for the Greek people.

(END VIDEO CLIP)

STEVENS: So we know there is a new bailout package on the table. We don't know the details yet. We heard closing addresses just an hour or so

ago from the key players from the EC, from the European council and from the Greek prime minister.

Let's go to Isa Soares. Now, she joins us from outside the parliament in Athens.

And Isa, you were listening to what those closing speeches were -- that the key players, what they were saying. As I say, we don't know a lot

about the details of this new bailout package, but did you get a sense, was there a sense that there is some coming together, if you like, with just

four days to go?

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: I'll go -- Andrew, I'll get to that question of unity in just a second, but in terms of the bailout

we know a couple more details now. We know that Greece is requesting a three year bailout. We do know how much they're asking for. We know

before this whole saga and the referendum was put in place, they were asking for 29, now it could be anything around the figure of the ballpark

of 50 billion euros, which is roughly what the IMF in its analysis, if you remember last week, said it would need.

So we know they're asking for a three year bailout. They say they will have tax reform measures and pension related measures, Andrew. And

they have formally asked -- Greece has now formally asked for debt relief. This is the first time -- we've heard them talk about debt relief a lot.

But this is the first time they are officially asking for debt relief.

On your question about unity, no, there wasn't much, was there. When we were both listening to it, it seems that there were very -- very

different (inaudible) I think.

Donald Tusk is making is very clear. He said we're all talking about the need for unity, but it's clear from what we're hearing that none of --

that we all think very differently about Greece and how we should approach Greece.

Alexis Tsipras, who took to the stand now twice today, who was very -- had very confident speech by him saying why he thinks that Greece should

stay in the euro, but also making his case saying that they are a sovereign nation. They should have a choice to where exactly the tax cuts go.

Take a listen to what he had to say a bit earlier today?

(BEGIN VDIEO CLIP)

TSIPRAS (through translator): The proposals by the Greek government for the funding of its obligations and for the restructuring of its debt

are not designed to provide an extra burden for European taxpayers. The monies, which have been afforded to Greece, which have been given to

Greece, never got down -- never trickled down to the Greek people. This is money which was given in order to save the Greek and European banks.

(END VIDEO CLIP)

SOARES: So pretty much blaming former governments that also trying to put some blame on Europe itself, because the loans that were taking, what

to pay other debts, so really never trickled down to the economy.

Yes, they've made cuts, but they can't make any more cuts. That's why he said today that -- I'm quoting him, "we want a viable plan, including

debt relief, because we want to be in a position to pay our debt and not seek new loans."

And he said, "I don't have any hidden plan for a Grexit. In fact, I wouldn't be here if we wanted a Grexit."

So, very clear from Alexis Tsipras, very confident speech, Andrew, showing really what he's about. He's been frank. He's been honest all

along. But it also seems like he's not prepared to budge.

STEVENS: Interesting what you say about Tsipras underlining the no Grexit, given the fact that at least in public that there is quite a lot of

daylight on the positions on the negotiating position. Is there a feeling where you are, Isa, that there is an inevitability now that a Grexit will

happen?

[08:15:14] SOARES: Oh, without a doubt, Andrew. I think that's definitely changed in the last couple of hours. And when you talk to

people, you know, they have a lot of support. They back Alexis Tsipras. He's very much liked. I mean, the triumph you saw on Sunday of 61 percent

vote backing the no is a clear indication of that.

But I think what people are saying is, you know, we've had enough of Europe not quite understanding us and our demands and our requests and how

difficult it's been for us for the past five years. We have -- we're not asking for pity. We have made sacrifices. But austerity hasn't worked.

So many people saying here if it means we have to go into the drachma and leave the euro, well so be it.

STEVENS: And we will know in four days from now.

Isa, thank you so much for that. Isa Soares joining us live from outside the parliament in Athens.

You're watching News Stream. Still to come on the show, Iran's tourism industry closely watching the nuclear talks happening right now in

Vienna. Why a deal could be a boom for business there.

And India is dealing with a series of suspicious deaths. Why some say the mystery is linked to a corruption scandal.

Plus, Pope Francis has had a busy day in Ecuador. He's headed for his -- well, getting towards the end of his eight day tour of South America.

We'll have the latest in just a moment.

(COMMERCIAL BREAK)

STEVENS: Quite a spectacular view there of Hong Kong.

Welcome back. You're watching News Stream. live from Hong Kong. Kristie, is on leave.

Now the Afghan government calls it the first ever official peace talks after meeting the Taliban. Pakistan was the host and the peace talks come

as NATO reduces the number of troops in Afghanistan despite the continued Taliban insurgency.

Well, the militants attempting to attack the national parliament just last month.

Details of the discussions are not known, but both sides have agreed to meet again after Ramadan.

Turning now to India where more than two dozen people have been found dead. And they seem to share a link to a high profile corruption case.

And it's causing alarm in central India and beyond.

Sumnima Udas reports.

(BEGIN VIDEOTAPE)

SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT: A spate of suspicious deaths and scandal has shocked Indians to the core. More then 28 people

linked to a multimillion dollar education scam have died in the past two years, that's according to sources close to the investigation.

Political parties in the opposition say that number is actually much higher. They put it at 45.

It's a murky story that many here say is getting spookier by the day.

Over the weekend, a Delhi journalist investigating the case mysteriously died while interviewing the family of a dead suspected related

to the scam. His colleagues say he started losing consciousness, foamed at the mouth, choked, and fell from his chair.

The next day, police found a body of a college teen who had been helping investigators in a Delhi hotel room.

At the heart of this massive scandal, allegations of bribes being paid for government jobs and college admissions. Corruption is really nothing

new here, but the fact that so many people close to this scandal keep dying is really triggering a lot of fear among the people here. Why are so many

people dying? Who is behind this? Really, no clear answers at the moment.

Sumnima Udas, CNN, New Delhi.

(END VIDEOTAPE)

[08:20:16] STEVENS: Now the trial of two Myanmar migrants accused of killing two British backpackers in Thailand is now underway. The two men

are facing charges of murder, rape and robbery in the deaths of David Miller and Hannah Witheridge on a resort island back in September. Both

men have denied the charges against them.

You're watching News Stream. And still ahead, Hillary Clinton is telling CNN what she thinks about immigration, U.S. currencies and her

Republican rivals for the White House. Hear her exclusive new interview when we come back.

(COMMERCIAL BREAK)

STEVENS: Hillary Clinton has given the first national television interview of her presidential campaign almost three moths after entering

the race for the White House. She sat down with CNN political correspondent Brianna Keilar. The Democratic candidate was asked about

comments made about immigration by one of her political opponents. Here's the exclusive.

(BEGIN VIDEO CLIP)

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CORRESPONDENT: Donald Trump is also creating quite a lot of commotion on the other side. He is a friend of yours, has been

over the years. He donated to your Senate campaign and to the Clinton foundation.

What's your reaction to his recent comments that some Mexican immigrants are rapists and criminals?

CLINTON: I am very disappointed in those comments. And I feel very bad and very disappointed with him and with the Republican Party for not

responding immediately and saying enough, stop it.

But they are all in the same general area on immigration. They don't want to provide a path to citizenship. They range across the spectrum of

being either grudgingly welcome or hostile toward immigrants. And I'm going to talk about comprehensive immigration reform. I'm going to talk about all

of the good, law-abiding, productive members of the immigrant community that I personally know, that I've met over the course of my life, that I

would like to see have a path to citizenship.

KEILAR: What about Jeb Bush's approach to that? It is different certainly than Donald Trump's.

CLINTON: He doesn't believe in a path to citizenship. If he did at one time, he no longer does. So pretty much, as I said, they're on a spectrum

of, you know, hostility, which I think is really regrettable in a nation of immigrants like ours, all the way to kind of grudging acceptance but

refusal to go with a pathway to citizenship. I think that's a mistake. I think that we know we're not going to deport 11 or 12 million people. We

shouldn't be breaking up families.

We shouldn't be stopping people from having the opportunity to be fully integrated legally within our country. It's good for us. It's good

economically. It's good for the taxes that will be legally collected. It's good for the children, so that they can go as far as their hard work and

talent will take them. So I am 100 percent behind comprehensive immigration reform that includes a path to citizenship.

KEILAR: What has changed when it comes to your approach with the media? We've seen now, you're doing this interview here today. It has

been, since you declared, that you've done a national interview like this. We saw sort of a visual representation of the arms length with the rope

incident this weekend in New Hampshire. What has changed? Why now?

CLINTON: Well, nothing has really changed. I just have a different rhythm to my campaign. I'm not running my campaign for the press. I'm

running it for voters. I totally respect the press and what the press has to do. But I wanted and was determined to have the time that I needed to

actually meet and listen to people.

KEILAR: Have you given any thought to the woman who should be on the $10 bill?

(LAUGHTER)

CLINTON: You know, I am very torn about it. I want a woman on a bill. I don't know why they picked the $10 bill. Some people are now agitating

for the $20.

KEILAR: The 20, do you think that it should be the 20?

CLINTON: You know, I want a woman on the bill. And I think that it might be easier to change the 20 than it is to change the 10. But we'll

see. And I don't like the idea that as a compromise, you would basically have two people on the same bill. One would be a woman. That sounds pretty

second-class to me. So I think a woman should have her own bill. And it may be more appropriate to look at the 20 than the 10. I don't know. We'll see.

KEILAR: And finally, I know you've seen your new doppelganger on "Saturday Night Live."

(LAUGHTER)

KEILAR: Kate McKinnon.

CLINTON: Yes, yes.

KEILAR: She plays you and she plays Justin Bieber.

CLINTON: That's pretty good. I wish I could sing.

KEILAR: That's quite some range. I know, I know you do. Who is the better Hillary Clinton? Kate McKinnon or Amy Poehler?

CLINTON: Oh, Amy is a friend of mine, and Kate is doing a great job. You're not going to get me to pick one or the other. I think I'm the best

Hillary Clinton, to be honest.

So I'm just going to be my own little self and kind of keep going along and saying what I believe in and putting forth the changes that I

think would be good for the country. And you know, I'm not looking for ratings. I'm looking for votes.

(END VIDEOTAPE)

STEVENS: Hillary Clinton there speaking to Brianna Keilar.

You're watching News Stream. Still to come, U.S. and Iranian representatives stay put in Vienna in hope of striking a historic nuclear

deal.

Plus..

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: In 10 years time, we have to have 20 million tourists here.

(END VIDEO CLIP)

STEVENS: So, could Iran become the next hot holiday destination? Some are betting a nuclear deal would drive a new wave of visitors.

(COMMERCIAL BREAK)

[08:30:56] STEVENS: I'm Andrew Stevens in Hong Kong. And you're watching News Stream here are your world headlines.

Even after Beijing ordered state owned companies not to sell their shares, stocks in China plunging even further on Wednesday. The move comes

after more than half of all listed companies also opted to suspend trade. The country's securities regulator now says there's a mood of panic in the

markets. Well, China's stocks have lost more than $3 trillion in value in just over three weeks

Greece has formally applied for another emergency loan that would cover the next three years. In return, Athens is promising to reform its

tax and pension systems. Well, Greece has been asked to submit a final proposal by Thursday so leaders of all 28 EU nations can consider it at

Sunday's emergency summit.

The U.S. military has trained only 60 Syria rebel fighters for the battle against ISIS. U.S. Defense Secretary Ashton Carter told a Senate

committee the low numbers are due to a thorough vetting process. The goal of the program is to train 3,000 to 5,000 fighters a year.

The U.S. Secretary of State John Kerry is staying in Vienna to push forward the talks on Iran's nuclear program. Negotiators have now given

themselves until Friday to iron out the remaining issues.

Well, CNN's Fred Pleitgen joins us now from Tehran, obviously being watched where you are very, very closely, Fred.

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Yeah, absolutely, Andrew. And certainly there are still some sticking points as we've

learned over the past couple of days, especially as far as an arms embargo that the Iranians want lifted.

It's interesting to hear the point of view here from Iran, because they say, look, if we're going to start dismantling large parts of our

nuclear infrastructure we want to know that all the sanctions are going to go away, including the ones that pertain to the arms embargo. So it seems

as though there still is a lot of room that needs to be bridged there between the negotiating partners, but at the same time, of course, the big

issue for most people here is how will the economy develop. And there most people want the sanctions to go away as fast as possible.

Now, one of the things that the Rouhani administration here has done is it's declared tourism as a major growth sector that it wants to develop.

It's trying to do that. It's still pretty much at the beginning of the road, but it does have a lot of potential as we saw when we took a trip

through Iran. Here's what we saw.

(BEGIN VIDEOTAPE)

PLEITGEN: It is the embodiment of imperial Persia. Persepolis, the archaeological site where the ceremonial capital and its temples once

stood.

Tens of thousands of people come here to Persepolis every year, but it's only a fraction of what the Iranian government thinks it could draw if

the tourism sector here were better developed. So, getting it up to speed is one of the main goals of Iran.

Persepolis and its many palaces and temples are just one in a wealth of sites in the area around one of the largest cities in in Iran Shiraz.

There is the Nasir al-Mulk Mosque, also known as the Pink Mosque with its colorful windows, that create unique lights.

The Karim Khan (Ph) castel right in the center of town. The tomb of the poet Hafez, arguably the most influential in Persian history and much

more.

Western tourists we meet seem pleased.

UNIDENTIFIED FEMALE: Yeah, people are very inviting, welcoming and...

UNIDENTIFIED MALE: A good infrastructure for tourists. It's really easy to travel by bus.

PLEITGEN: But the problem is not as many foreigners as anticipated are coming to Iran. Economic sanctions against the government may be one

reason.

Even though the country expects a 6 percent rise in the number of visitors, authorities acknowledge they still have a long way to go.

The government says it already has done a lot to ease visa restrictions, but it also realizes massive investments are needed in new

hotels, roads, airplanes and airports.

"In 10 years time we want to have 20 million tourists here in Iran," the tourism minister tells me. "And we're expecting a revenue of about $30

billion. This is our goal. And we have a program to achieve that goal. Of course the lifting of sanctions would certainly help to achieve that

goal."

The Iranians acknowledge that some westerners are afraid to come here because of the political situation and hope a deal could help mitigate some

of those concerns.

(END VIDEOTAPE)

PLEITGEN: But Andrew, it's not just the political situation that of course is holding many westerners back from coming here to Iran, this is

also not an easy place to go to. And the main reason for that is actually that it's very difficult to make international payments, if not impossible,

to make international payments here in Iran -- impossible to pay with your western creditor card, so it's very, very difficult. You have to take a

lot of cash here. And one of the big things that the Iranians are looking for in that sanctions relief is to get back into the international payment

scheme simply to make it easier for people to come here. That of course on top of the political situation that is also still holding many people back,

Andrew.

[08:36:12] STEVENS: OK. We just did a quick straw poll while we were watching those amazing pictures from Iran. Fred, people here are 100

percent want to go to Iran. So there's certainly pent up demand to get there. So, watch that space.

Fred Pleitgen in Tehran, thanks so much for that.

Now, besides urging countries to care for their families and the environment, Pope Francis also took the time to meet with the masses and

take some selfies. We'll have an update just ahead.

(COMMERCIAL BREAK)

STEVENS: Welcome back.

Now blending religious studies with technology: one school near Tel Aviv is breaking tradition and teaching Orthodox Jewish men how to become

computer programmers. Oren Liebermann takes us inside RavTech.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN CORRESPONDENT: The black hats and dark suits in the coat room aren't quite disguises, but the ultra orthodox Jewish men

who wear these lead two different lives.

They're called Haradine (ph), which means one who trembles in awe of god. By day, they study Jewish scriptures at a religious school outside of

Tel Aviv, but in the afternoon they study something very different: high tech programming, computer languages, web development, part of an effort to

make the ultra orthodox the next wave of high tech workers in the startup nation.

VERNAD MOR, RAVTECH: I mean, people who didn't know anything about computers a year ago, you'll see them developing application, web

applications, mobile applications.

LIEBERMANN: The students begin by learning mathematics and English, things they never learned in their strict traditional lifestyle, which

focuses only on religious study.

Then they learn to program. After one year of study, they begin working in high tech.

NOAM ELFENBAUM, TEACHER: They're really -- they're really curious. They just want to know -- to really understand what's going on. And

they're not -- they're not satisfied with shallow answers.

LIEBERMANN: The religious high tech school called RavTech is a way of finding work for Haradine (ph) men. Unemployment and poverty are major

problems in the ultra Orthodox community.

More than half of Haradine (ph) men don't work. In fact, in most Haradine (ph) families only the woman works, often at a low income job to

support a large family, on average six children. Haradine (ph) make up only 10 percent of Israel's population, but it is the fastest growing

segment of the population.

Most of the students at the school are in their 20s and 30s. They already have families. Now they're looking for work. Student Ariel Braun

(ph) says years of strict religious study make for excellent programmers.

[08:40:25] ARIEL BRAUN, STUDENT (through translator): A lot of times you have to think outside the box, and that's very, very important,

especially in studying the scriptures, to think beyond the simple. Understand what's in front of you. Look into different levels and try and

get deeper into the problem.

LIEBERMANN: High tech programming jobs allow the ultra orthodox to maintain their strict lifestyle. In between programming classes, they

break for afternoon prayers. But for these ultra orthodox men working today's modern economy, technology is always close at hand.

Oren Liebermann, CNN, Tel Aviv.

(END VIDEOTAPE)

STEVENS: Crowds in Ecuador are hoping to catch a glimpse of Pope Francis before he leaves for Bolivia. The Catholic leader will visit a

nursing home and meet with clergy in a couple of hours from now.

Now the pope's grip, among other things, aimed to shed light on issues related to poverty and the environment. His stops so far included a visit

Tuesday to the Church of San Francisco in Quito, Ecuador, where he met with civic organizations, entrepreneurs and Catholic lay groups.

The pope also posed for a selfie with people waiting to meet him in Quito.

As we mentioned, Pope Francis is set top visit Bolivia next. He's only scheduled, though, to spend about four hours in the city of La Paz,

that's likely because the altitude at the international airport is said to keep oxygen tanks for visitors who suffer altitude sickness when they

arrive.

Now, it sits in the Andes mountain range over 3,600 meters above sea level.

And that is News Stream. I'm Andrew Stevens. Don't go anywhere, World Sport with Alex Thomas is up just after the break.

END