Return to Transcripts main page

NEWS STREAM

China Stocks Rebound; The Battle Over Encryption; A Triple Threat of Storms Bears Down on China; Donald Trump Defends Immigration Stance. Aired 8:00a-9:00a ET

Aired July 09, 2015 - 8:00   ET

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


[08:00:17] ANDREW STEVENS, HOST: I'm Andrew Stevens in Hong Kong. And welcome to News Stream.

Back from the brink: China's stock market lands in positive territory after another volatile session.

Plus, Greek banks will stay closed until early next week, but will they get help from Europe? Athens has just hours now to submit its latest

reform proposal.

And a battle over encryption. The U.S. government says it needs new tools to fight terrorists online.

New moves by Beijing to put a floor underneath spiraling stock prices seems to be getting traction. After a volatile day of trade, Chinese

stocks did manage to end the day with some pretty significant gains.

Now among the raft of new measures, the government is lending billions of dollars to brokerage firms to help them buy up stock. It's also banning

shareholders from selling stock in companies they have a large stake in.

So, let's take a close look now at how China's markets fared on Thursday. And as you can see there, the arrow is pointing for once in the

right direction. The Shanghai Composite did, though, drop 3 percent at the start of trade, but as you see did manage to get a fairly strong rally

there, 5.7 percent up. While the Mainland's tech heavy Shenzhen market over there managing gains of just shy of 4 percent.

Now Xinhua, the state-run news agency, is reporting that police have launched a probe into short-selling, that's when investors profit when the

market falls. It's part of Beijing's expanded campaign to stem this selloff.

Let's go to Shanghai now. Our senior international correspondent Ivan Watson is there monitoring all of the moves. So many moves to watch, too,

Ivan. The government relentlessly bringing in measure after measure to try to get ahead of this, to try to put a solid base underneath these spiraling

markets.

We saw that rebound today. Do you think we can say that perhaps the worst could be over as far as the spiraling down goes?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Perhaps. I mean, the market did, as you mention, go up 5.7 percent, but it went down almost 6

percent here in Shanghai yesterday. So it didn't quite catch up to the loses of yesterday alone. And we -- as we all know, the Chinese stock

markets have plunged -- the Shanghai Composite losing more than 30 percent of its value since its peak of June 12, more than $3 trillion, whether or

not the measures put forward by the Chinese government are enough to turn that around, I think we'll just have to wait and see.

Is the trading that we've seen today a real reflection of the market? Well, half of the companies listed on the Chinese stock exchange have

suspended buying and selling their shares. So it's hard to say whether that's a true reflection of the value of the market -- Andrew.

STEVENS: You raise a really good point. This is in no shape or form a proper stock market at the moment. The government is basically

guaranteeing virtually share prices by buying in the market big time. So many companies are now suspended.

What's the feeling like about the government's sort of involvement.

Obviously, investors want to see these full stop, but do they really want such heavy handed government intervention?

WATSON: Everybody I talked to says that this is not -- all the Chinese investors I talk to say this is not a free market in the sense of

say the New York Stock Exchange or the London stock exchange, or even Hong Kong, that everybody here when they make investments, when they buy and

sell and speculate, they're looking at what the government is going to do, not what announcements companies are going to make. They say this is a

government driven stock market. And that's why everybody is looking to the government to save them from this tail spin. And that's why analysts say

if the tailspin continues, if the hemorrhaging, that it could have political repercussions because a lot of people stand to lose money and

understandably they're quite nervous about that -- Andrew.

STEVENS: Absolutely. OK, Ivan, thanks very much for that. Ivan Watson, our senior international correspondent joining us live there from

Shanghai.

Now, at first glance some may think that this looks like a pretty good day on the stock market, but there is something you should know about

color-coding in China. Green means the prices are actually going down. You can see here the negative numbers. And there's some pretty big

negative numbers there, too, there.

So, remember red, lucky color of course in China. So, that is the hue that investors want to see in the market, and indeed that is what we did

see today.

OK, let's turn now to Greece. It's going down to the wire to present its final debt proposal to European leaders. It has until the end of

Thursday to spell out a range of reforms in exchange for a third bailout to keep it afloat for more -- well, three more years.

Now the plan will be reviewed at Sunday's EU summit. Banks across the country have been shut down now for nearly two weeks and are staying closed

at least until Tuesday.

Well, let's go straight to Athens now. And Richard Quest joins us from the Greek capital. In fact, he's just outside the parliament building

there.

Richard, we heard in Strasbourg yesterday at the European Parliament, a lot of strong words and not much coming together, not much unity between

Greece and the rest of the Europeans.

Is there a movement that you're detecting there from Greece to try to bridge that gap? Is there likely to be a resolution, a successful

resolution in as far as what they present to the Europeans?

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: Well, Donald Tusk, the president of the council, has just put out a statement, Andrew, I'll

just give you the gist of it. He said he's spoken to the Greek Prime Minister Alexis Tsipras. He says I hope today we will receive concrete and

realistic proposals.

But this is the interesting bit. He says the realistic proposal from Greece will have to be matched by an equally realistic proposal on debt

sustainability by the creditors. In other words, the euro group, the euro zone and the institutions, the IMF, and others.

And that's fascinating, because this is the first time we are hearing Tusk basically say, all right, if Greece comes forward with a realistic

proposal, something they can work with. Then we expect the other side to start coming forward with their debt sustainability proposals.

And one other thing he does say, which I just noted, he says I believe that Europe's assistance should be accompanied by the old Roman saying

"magnum vectigal est parsiomonia," that a classic scholar like yourself will of course be well familiar with the phrase economy is revenue, meaning

to the Greeks don't just come to us looking for money, come to us with your proposals for reform and for thrift, that is the way to get long-term to

get out of this mess.

STEVENS: Debt sustainability, are we talking about in essence debt relief here? Because if there's no debt relief this is just going to be

virtually a never ending cycle. Every three years Greece is going to go cap in hand isn't it? Unless here is some new way of tackling this

mountain of debt.

QUEST: There does have to be. Everybody sort of accepts -- I mean, the reason that the debt sustainability has become so bad is not just

because they heap too much debt and the programs were inappropriately put together. The Greek situation has deteriorated. The reforms that would

have lead to growth never took place. And that's why that you know that they are left in such a dreadful dreadful situation that it is a one-way

street. It was never intended to be such a bad situation

Deb sustainability is an entire raft of proposals. It does mean pushing out maturities, it means readjusting interest rates. But let's not

forget, Andrew, if you actually look at the debt profile of Greece, it may be high, but it's got a lot of -- I mean, they don't pay back certain loans

for many years, the amount of interest rate already on those loans is extraordinarily low.

It's not as if they've been to payday lender and sort of ratcheted up to the nth degree. Their debt profile is favorable to start with, which is

why you're pretty much talking about writeoffs. That's the gist of it. You're talking about writeoffs. You're talking about the other people just

saying let's hack it back, let's be realistic, let's write off some of the debt. And that is the tricky bit.

STEVENS: And just on that point very quickly, Richard, I know the U.S. has been pushing this line about debt writeoffs. How much pressure

are you aware that they're putting on the Europeans, on the troika?

QUEST: Well, I'm guessing that Jack Lew is speaking frequently. We know from Obama that they're in close contact. And they are really calling

a spade a shovel. They're saying you know, I know, everybody knows there's got to be some form of debt relief for debt sustainability. So the sooner

you get off your -- your high horse of economic frugality and start actually dealing with it, the better.

But that's not going down well in Germany. That's the heart of where this thing of frugality and fiscal rectitude comes from. And as long as

it's there, there will be only limited debt relief until, Andrew, Greece comes up with the reforms.

[08:10:39] STEVENS: OK, Richard, thank you as always. Richard Quest in Athens. And make sure we join Richard and the team as they follow this

story minute by minute. We're getting very, very close to a deadline now.

Well, turning to New York, traders on Wall Street have had more than Greece and China to worry about. A technical glitch stopping trading on

the NYC for hours on Wednesday. Let's go to chief business correspondent Christine Romans now joining us from New York.

Christine, what happened.

CHRISTINE ROMANS, CNN CORRESPONDENT: You know, it's crazy. It was a technical problem. It was a problem, an internal technical problem at the

New York Stock Exchange. And it happened around the same time that you had United Airlines have a glitch that shut down all of its flights, and that

was a different kind of problem, and you also have the Wall Street Journal that had so much traffic rushing to its servers that it couldn't get the

website didn't work either.

So, for a minute there, there was this concern, there was some sort of a cyber hack. It is not, according to the Department of Homeland Security.

And these are three very different episodes that show us how reliant we are on technology and how sometimes like humans can fail, so can technology.

So, the New York Stock Exchange thing will open as it is scheduled to at 9:30 eastern time, and you know just a little bit over an hour, almost

an hour-and-a-half from now, the New York Stock Exchange will open.

Now in terms of my experience of seeing trading shut down, Andrew, you know, September 11, the terror attacks, trading was halted and shut down

for awhile. Hurricane Sandy, we had seen some trading shut down. But can I tell you that it's very rare to have the stock exchange close down.

There have been technical glitches before. Usually they're four minutes, they're 20 minutes, maybe it's a little bit of a late start to the

trading day. And it is rare, but it has happened. This four hour outage was certainly embarrassing. And it came at a time when there was an awful

lot of interest in buying and selling stocks in this country, mostly selling stocks because of what's going on in Greece and China.

So, it came at a very bad time.

I will tell you that people who had to sell stocks, their orders were still filled. Stock -- you know, the New York Stock exchange listed

stocks, we're still trading on many other platforms. The New York Stock Exchange, as you know, has a physical trading floor, has become much, much

smaller over the past few years, and it does have an infrastructure that talks to all of the other major exchanges around the world. So that

business did get done. Still, an embarrassing lapse.

STEVENS: Yeah, I mean, obviously the good news is that no conspiracy, these three events were not linked. The bad news is that it still does

happen in this day and age.

So, just to confirm, there was no sort of financial losses that investors had to sort of take on the chin because of that four hour

shutdown?

ROMANS: You know, no. And you had a Dow Jones Industrial Average that closed down for the day 261 points and many people, many market

participants telling me that if the stock market were completely open, open for those four hours of the New York Stock Exchange, you probably would

have still had stocks at the end of the day, the Dow on the day down 261 points. Business still got done.

And there wasn't a fear factor. I mean, it really -- there wasn't -- it didn't feel like the flash crash in 2010. Remember the flash crash when

suddenly you had all this value wiped out off the stock market in a matter of seconds, and no one know kind of how that happened. The rapidity, how

rapid these markets talk to each other and the interconnected nature of, you know, high frequency trading.

That wasn't what this was about. This was about an internal glitch. It was fixed after four hours. And markets moving along after that.

STEVENS: OK. Moving onwards and hopefully upwards. So, Christine, thank you for that. As always, Christine Romans, chief business

correspondent.

You're watching News Stream, still ahead on the show, battling terrorists online. America's top law enforcement agency is now at odds

with computer scientists on cyber security and ISIS recruits.

Also, hunkering down. People in southern China are taking cover this hour as powerful storms approach. There's no -- I said storms there for a

reason, it's not one, it is three storms on their way.

Plus, Donald Trump stands firm despite coming under fire for his controversial comments. Listen to his interview with CNN a little later

this hour.

(COMMERCIAL BREAK)

[08:16:24] STEVENS: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories we got on the show.

Yesterday, we've already told you about China's moves to steady the stock markets amid weeks of volatility. Later, we'll tell you about the typhoons

in Southeast Asia.

One storm has grounded hundreds of flights here in Hong Kong, but now the public debate over how much access a government should have to private

data online.

Now, the head of the FBI is warning that encryption is preventing authorities from tracking terrorists in cyberspace. Here's what he had to

say in testimony to U.S. congress.

(BEGIN VIDEO CLIP)

JAMES COMEY, FBI DIRECTOR: This is not your grandfather's al Qaeda. This is a group of people using social media to reach thousands and

thousands of followers, find the ones who might be interested in committing acts of violence and then moving them to an encrypted -- end to end

encrypted messaging app.

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.

(END VIDEO CLIP)

STEVENS: Now, here's how it works. A person sends a message over the web, encryption scrambles it so that it seems to make no sense. But he

intended recipient with the right key then unscrambles the letters and reads what's there. Encryption is built into some common apps now as well

as software we use.

The FBI argues that law enforcement should be allowed to access encrypted messages with a search warrant. But tech experts say that cannot

be done without putting everyone's cyber security in danger.

One of them is Susan Landau who co-wrote a new report by a group of elite cryptographers. The idea is that giving authorities backdoor access

to encrypted data is like leaving a key under your doormat, it can be stolen by anyone.

(BEGIN VIDEO CLIP)

SUSAN LANDAU, CYBERSECURITY EXPERT: The problem is that they're asking for what's called exceptional access. And they're asking be systems

be designed so that they can always get in. And security is very hard to do. When you do exceptional access, you break security. And in the end,

that makes us all less secure rather than more so.

(END VIDEO CLIP)

STEVENS: OK, let's dig a little deeper into this issue now. And joining us is Herbert Lin, who is a senior research scholar at the Center

for International Security and Operation at Stanford University. He's also testified in the U.S. congress on Wednesday.

Thank you so much for joining us.

I just want to start, and no doubt you heard there from the FBI director saying it's difficult enough as it is searching for a needle in

the national haystack. Once your bring encryption in, that needle starts to become invisible.

He's got a pretty good point, hasn't he?

HERBERT LIN, STANFORD UNIVERSITY: It's certainly true that encrypted communications can make life much more difficult for the FBI and other law

enforcement agencies, so I don't think there's any question about that. The question is, is what are the circumstances and what are the costs of

getting access to that information as Susan Landau said there's a possibility that you may be weakening the security for other systems as

well.

STEVENS: I mean, it -- is that just a hypothesis, or is that a fact that if there it is the sort of leaving the key under the mat so to speak,

that if the FBI does have that sort of access, it will significantly weaken our security, our personal security.

LIN: I think that question is not -- the answer to that question is not at this time knowable.

One of the problems in this whole debate is that the FBI -- in fact, nobody has proposed any kind of specifics about the kind of system that

they want to deploy. And in the absence of a specific system proposal, we have a very hard time making any kind of assessment at all.

[11:20:20] STEVENS: In your opinion, in your professional opinion, can there be a system which -- you know, basically fulfills both needs and

continued private security as well as allowing a government department access on national security grounds?

LIN: I think that that's -- the way you're framing the debate is not really quite way to frame it. The issue is not whether a system is secure

or insecure -- is not secure or insecure, but rather whether how secure it is, and how much security can you use.

Everybody would agree that putting in this, quote, back door access, unquote, reduces security to some extent. The question is by how much.

And is that detriment (ph) in security significant.

STEVENS: Now there's another side of this, of course, is the government's own security. I mean, barely a week goes past without another

report of a U.S. government department being hacked by a person's unknown, although fingers to point to various other countries.

So, if the U.S. does, or is, allowed to gather sensitive information or backdoor access into personal privacy, does that not let others in, or

does that -- the information they get become vulnerable in the U.S.'s own databases?

LIN: Nobody is talking about having, quote, exceptional access, unquote to U.S. government databases. I mean, the U.S. government can get

at U.S. government databases all the time.

I think the fear is that Susan Landau is mentioning is that if you build a weakness in -- that is a backdoor vulnerability into computer and

communications systems, that other players, not -- you know, bad guys, known bad guys, would be able to get into that just as well.

STEVENS: OK. We'll have to leave it there. Dr. Herbert Lin, Stanford Center for International Security and Cooperation, thanks so much

for joining us.

LIN: Thank you.

STEVENS: You're watching News Stream. Still ahead, not one but three storms now barreling across East Asia. We'll have a live report in just a

moment.

(COMMERCIAL BREAK)

[08:25:14] STEVENS: That is the view looking across Victoria Harbor here in Hong Kong at this hour as a powerful storm makes its way towards

this city. One of three weather systems currently sweeping across east Asia.

Now one of them, Tropical Storm Linfa, as I was saying, has been downgraded from a typhoon, but it's still powerful enough for Hong Kong to

cancel more than 500 flights, also businesses have been shut down.

Now, the two other more powerful typhoons are expected to make landfall a little later this week.

Let's go to Chad Myers who has been tracking them for us at the CNN weather center. Let's just begin with Linfa, Chad, that was on course to

hit directly Hong Kong, but not that big a system, right.

CHAD MYERS, CNN METEOROLOGIST: That's right. And in the last hour I asked you what's it like outside and you said not too bad. And I went back

and I looked at the radar, you are now right in the center of the storm. You are essentially in the eye -- although, because it's not really a

typhoon anymore, there's not much of an eye left.

But the reason why Hong Kong is not seeing especially the coastal area, the harbor, not seeing the real wind is because it's a little bit

farther to the west of there. I'll show you the radar in a second.

Here is Hong Kong. There goes Linfa.

Here's is Chan-hom. It is going to be very, very close to Shanghai as a really big storm.

And then here Ningka. And this is going to actually turn up toward the north here. And I'm not sure exactly what it's going to do, because

there's some colder water up there. It may disintegrate into almost nothing. At least we hope so.

Here we go. We'll start off with Linfa. Here it is about 110 kilometers per hour right now. Here is Hong Kong. You look at Taiwan

there and then the next storm system, the one still to the west is still out there coming that way, but going to turn to the right.

So right here, this is where you are, right here in the inner harbor. Harbor zone right here, but there much of the wind is up here where you are

in the center, so not seeing much wind. Yeah, it's blowing at 40 kilometers per hour in some spots, 30 in others. But if you get farther

away from the center of circulation, you still have wind gusts of about 110 kilometers per hour, so we'll keep watching that.

The rain is still on the way. There will still be more rain on the backside. There will be rain for today. It'll get tomorrow for your

Saturday and into your Sunday.

Here is the next storm. This is a much more significant storm making big waves at Okinawa right now. 165 kilometers per hour, and it is still

moving toward the north and northwest and going to run right over Shanghai. Dying off as it gets to Shanghai, 140 kilometers per hour, but that can

certainly do some damage there.

Here is the wind field for that storm making landfall south of Shanghai and then turning to the north running right over that city. So,

you see winds could be about 130 miles per hour even in the city of Shanghai.

This is what it looks like for the radar coming in to the next couple of days. Forecast accumulation could pick up -- we'll call it 10 inches of

rainfall, that would be almost 300 millimeters of rainfall from the next storm system as it moves on by.

And still way out in the ocean here, much bigger storm, though, 230 kilometers per hour, not hitting anything except the northern Mariana

Islands right now -- Andrew.

STEVENS: Chad, thank you very much for that update.

You're watching News Stream. Still ahead, U.S. presidential candidate Donald Trump is standing by his remarks on immigration that have been met

with so much outrage. We'll hear what he has to say to CNN's Anderson Cooper about a new report that challenges his stance.

(COMMERCIAL BREAK)

[08:31:02] STEVENS: I'm Andrew Stevens in Hong Kong. And you're watching News Stream. These are your world headlines.

China's new measures to try to steady the stock market appear to be having an affect. Shares ending Thursday's session higher. In the last

month, the Shanghai Composite has lost 30 percent of its value, trillions wiped off the value of stocks. The smaller Shenzhen Composite down 40

percent over the same period.

Greece is going down to the wire to present its final debt proposal to European lenders. And with less than 12 hours now to spell out a range of

reforms in exchange for a third financial bailout. Banks across the country have been shut for nearly two weeks and are staying closed until at

least Tuesday.

A top U.S. senator says that President Barack Obama believes the chances of getting a nuclear deal with Iran are now below 50/50. Several

key sticking points remain, including Iran's request that the UN lift an arms embargo as well as missile sanctions. World powers are reluctant to

do so.

Millions of commuters in London have been caught up in a strike that's brought a London subway system to a halt. Train workers are demanding more

pay, because of the new 24 hour underground service that will operate at the weekends starting in September.

This Saturday marks the 20th anniversary of the Srebrenica massacre. Trucks carrying the remains of 136 victims to have only recently been

identified traveled to Srebrenica earlier. Serb forces killed an estimate 8,000 Bosnian Muslims in that massacre.

Donald Trump is standing his ground on illegal immigration in an interview with our Anderson Cooper. The U.S. Presidential candidate has

faced a major backlash for his comments on Mexican immigrants, but he's not backing down.

And now he has even more to answer for following a report questioning the legal status of workers at one of his own construction sites.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN ANCHOR: I've got to ask you about a couple things in the news. Washington Post as you know say some of the workers building

this beautiful hotel that you are building down in Washington, D.C. are illegal. They talked to 15 workers. They said, a number of those 15 came

here illegally through asylum, they're now legal. But that a number of them did say they're illegal. Isn't it hypocritical for you saying that

illegal immigration is killing this country to be employing illegal immigrants?

TRUMP: Well, I read the story. And by the way that story does not name any names. I'd love them if they could give us names. But they said they

spoke to one or two, but they don't name them. And they don't even know if it is true.

COOPER: What they say is several of the men who hail mostly from El Salvador, Honduras, Guatemala, have earned U.S. citizenship or legal status

through immigration programs targeting Central Americans fleeing civil wars or natural disasters, others quietly acknowledge that they remain in the

country illegally. They don't give numbers.

TRUMP: They have to give us the names because we have, you know, many, many...

(CROSSTALK)

TRUMP: 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 most

prestigious, one of the best in the world, to build the building. It's their responsibility to make sure they have done...

COOPER: Doesn't the buck stop with you though?

TRUMP: Yes it does.

COOPER: You are paying their salary.

TRUMP: Oh, absolutely.

We have gone out of our way to make sure that everybody in that building is legal. And we do have some that were that became legal. Wait a

minute. We have some, many, I think that became frankly, me, you, everybody, I mean, ultimately we were all sort in the group of immigrants,

right? But we have done that to the absolute letter of the law. We're very, very careful.

COOPER: But The Washington Post can go there and talk to 15 people and find some illegal immigrants.

TRUMP: They haven't shown us anything. I wish they would give us some names. We would get them out immediately.

COOPER: You must have a guy on the job site.

TRUMP: We have more than one guy. And we check it probably more carefully than any job that was ever built.

Anderson, you, have either 11, anywhere from 11 to 34 million illegal immigrants in this country. They're all over the place. Nobody knows even

where they come from. They probably come, some, from the Middle East. You don't know where they're coming from.

We check on that building probably more carefully than anybody that's ever built a building before. And I think from what I heard, and I just

checked it this morning, because I asked the question because I read the article also. We are absolutely in beautiful perfect shape. Now, I wish

they would give us the names. We would get rid of them the immediately.

More people are in this country right now illegally than ever before. I will build a better wall and I will build it for cheaper. And Mexico will

pay if that's your next question.

COOPER: Yes. How do you get Mexico to pay?

TRUMP: Because they are ripping us left and right. By the way I love the Mexican people. Many Mexican people work for me. Many Mexico people I

do business with. They purchase things from me like apartments, et cetera. I have great relationships with Mexico and with the Mexican people. I love

the Mexican people. I love their spirit.

But let me just tell you, Mexico is making an absolute fortune. Because the trade deals with the United States are phenomenal for them. And

horrible for us. They're taking our jobs. They're building factories, warehouses they're build things we are not even thinking about.

COOPER: So you say, renegotiate trade deals and in that put in a price for the wall.

TRUMP: Absolutely. And they will do it. And I have watched these very stupid pundits say you can't do that. Of course you can do that.

Mexico is making -- I can do it. By the way, Hillary can't do it. Jeb can't do it. These people that are running most can't do it. Maybe a

couple of them. I actually have a respect for a couple of them. But Hillary cannot do it. I guarantee you that. Jeb Bush cannot do it. I can do

it easy.

(END VIDEOTAPE)

STEVENS: Donald Trump there with our Anderson Cooper.

Now, AC/DC drummer Phil Rudd has been sentenced to eight months home detention in New Zealand. Rudd pleading 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 is Rudd as he left the court a little earlier today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE The judge has made his decision. We're looking at all options. And I need to get down to the car. Excuse me.

UNIDENTIFIED MALE: Any idea whether you might be appealing or not?

UNIDENTIFIED MALE: Yep. We're talking about his options. Look at -- out of the way.

Get a real (EXPLETIVE DELETED) job. Get (EXPLETIVE DELTED) off.

UNIDENITIFED MALE: Can't save you've learned much.

RUDD: Excuse me.

UNIDENTIFIED MALE: I have a job.

(END VIDEO CLIP)

STEVENS: Phil Rudd there.

Now his lawyer is appealing the sentence and an AC/DC -- the band has actually replaced Rudd for its world tour, which starts next month.

Still to come here, Moscow taking a hard line on the selfie stick. After the break, find out why Moscow says taking a selfie can prove very

detrimental to your health.

(COMMERCIAL BREAK)

STEVENS: If you've ever taken a selfie, and you probably have, listen up, Russia's interior ministry is warning that taking a selfie can, in

fact, be fatal.

Kelly Morgan reports on the government's new campaign to promote the safe way to snap a selfie.

(BEGIN VIDEOTAPE)

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.

[08:40:05] 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.

(MUSIC)

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.

Kelly Morgan, CNN, Moscow.

(END VIDEOTAPE)

STEVENS: Certainly doesn't seem like there's any less enthusiasm for taking the selfie, but you have been warned.

And it's not just the Kremlin that's warning against the hazards posed by selfie sticks, Disneyland deciding to ban the phone accessory from its

theme parks, citing concern over the safety of its guests, not to mention the cast.

London's National Gallery is the latest museum to ban the device over the danger posed to works of art on display. That sort of makes sense.

They join the Smithsonian and some of New York's museums.

Even the Sydney Opera House has taken a hard line on the selfie stick.

Also, weighing in the White House first lady Michelle Obama taking to Instagram to announce new rules allowing cameras and phones on official

tours.

But the hopes of selfie stick users was soon dashed. The device is still banned

And that is News Stream. I'm Andrew Stevens. Thanks so much for joining us. Don't go anywhere, world sport with Alex Thomas still ahead.

END