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Chinese Stocks Down 7 Percent; World Stocks Rebound; South Korea Turns off Propaganda, North Korea Regrets Landmine Incident; Gunman El- Khazzani Transferred To Paris Court; Celebrating Agatha Christie's 125th Anniversary of Her Birth. Aired 8:00a-9:00a ET

Aired August 25, 2015 - 8:00   ET

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

[08:00:20] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream.

Now China's stock markets suffer another dismal day, but Beijing is finally taking action.

Plus, North and South Korea pull back from the brink. We've got details of the deal to defuse tensions on the peninsula.

And fresh fallout from the Ashley Madison security breach. Now, the site's parent company has offered a reward to catch the hackers.

Now stock markets in Europe and the U.S. are set for a rebound while China is still intervening to boost its sluggish economy. The country's

central bank just cut interest rates. And that follows another dismal day for some markets in Asia. Shanghai and Shenzhen both fell more than 7

percent by the close of trade on Tuesday.

Now for more, let's go straight to our Asia Pacific editor Andrew Stevens. Andrew, what an interesting day. Another selloff in China and

action, or reaction from China after the close of trade.

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: Reaction, which a lot of people had been expecting for a long time. So, one of the questions

is why did it take them two full days and two massively nasty days on the market for them to actually take some action. What they've done is pretty

much what we expected, Kristie, they've cut the cost of borrowing interest rates by a quarter of the percentage points. And they've also cut some

thing called the reserve requirement ratio, which basically is the amount of money that banks have to put on deposit at the central bank. That

money then goes back to the banks.

And the idea is that that money then goes out into the broader economy in the form of loans at a lower interest rate now in an attempt to

kickstart things.

What's interesting today is that this contagion, which we were talking about yesterday, the fact that Europe was down heavily, and then what we

saw on Wall Street didn't happen today, that the link was broken.

Yes, it was Shanghai, and to a degree it was Japan as well, but really it was just Shanghai. Hong Kong, for example, up today as were a lot of

other markets.

So, it looks like that link at least now -- for now has been broken.

LU STOUT: Yeah, interesting point there on that link being broken. We also saw a recovery in South Korea and Australia. These are markets

that are closely linked to and exposed to China, yet a recovery in share prices there this day.

But focusing back on China and this interest rate cut, because what impact really is it going to make at the end of the day? In the last few

months, we've seen the Chinese government throwing billions of dollars at the problem, trying to shore up the markets. It's starting to look really,

really desperate. Consumer confidence and investor confidence in China, that hasn't been shored up. So, I mean, is there a sense of deep panic

among investors in China? What effect is it going to make?

STEVENS: Well, there's certainly panic amongst investors if you're in the Chinese stock market, if you invest in the Shanghai composite, you

would be panicking about now for quite good reasons. You've lost 40 percent in 10 weeks.

Will it be enough? Will it make any difference? Consider that they've cut interest rates now five times since November. And clearly it

hasn't been enough, suggests that this may not do much in the way of turning things around.

What is may do, though, is it may soothe investors' nerves, you know those people in the stock exchange, because that they've been desperate for

the government to do something. Now they've seen the government acting, thinking OK it's in our best interests, we can relax. We don't have to hit

the panic buttons quite so much.

But another interesting thing is the research I was seeing today, the economic research coming in. We got a lot of it in reaction to what

happened yesterday. And basically they are -- the line here is that the performance of China's economy is much better than the bears would lead you

to believe.

Take a look at some of the quotes we're hearing -- we're seeing. This is a good one.

"Now recent data have been more positive than the headlines might suggest," this is from Capital Economics.

"Large parts of the economy still looking strong." HSBC said sort of the same thing. They said look at property. It's going pretty well.

UBS said, "the government will do what it takes to get growth to keep it at 6.5 to 7 percent.

So, there is a feeling in the economists -- among the economists at least -- that this fear about the hard landing of China has been overdone.

And let's face it, that's what investors were talking about yesterday, hard landing in China, end of the world sell.

LU STOUT: Now the big takeaway here being that China's market meltdown is not synonymous with some greater recession that's going to

happen and that gets you to China's market economy.

STEVENS: Exactly. There is a disconnect. There is a clear disconnect. Remember, the markets went up 150 percent in a year while

China's economy was slowing down. So, there is a disconnect.

[08:05:01] LU STOUT: All right. Andrew Stevens there, thank you very much indeed for that.

Now, U.S. stock futures are all pointing to being sharply higher when Wall Street opens in just under 90 minutes from now. CNN's Maggie Lake

joins us now from CNN New York.

Maggie, we were just talking about that disconnect with Andrew Stevens, that disconnect between the market problems inside China and also

concerns about the economy, perhaps not as bad as people thought. What has been the market response there in the U.S.?

MAGGIE LAKE, CNN INTERNATIONAL CORRESPONDENT: well, first of all we're seeing a very positive and rapid response to the fact that the

Chinese authorities stepped in to try to lend support to the economy. We're looking at a market now where the Dow may open up 600 points. And

those gains are mirrored across the broader S&P 500 and the NASDAQ, those are gains of close to or above 4 percent.

But I don't think that there -- so there is some relief, Kristie, that we're not facing the situation we were in yesterday. But I don't know that

there's a great deal of confidence in this. This is going to be a long and interesting day. There are still a lot of concerns about exactly what's

going on in the Chinese economy.

And here's the problem, a lot of people think it's a black box. You heard Andrew just saying some economists are saying, hey, it's not as bad

as we think. Other people here worry maybe they're actually in outright contraction. Nobody knows. And that's the problem. It's hard to

handicap.

So you have a situation where the world's second largest economy, one of the main engines of growth, may be slowing down. We don't know.

There's a lot of deflation that central banks are still trying to fight. People just don't see where the growth stories coming from. They're

nervous. And in a computer driven world, you saw how those fears can quickly take over, and that has spooked a lot of people.

So, there's a little bit more calm today, some relief. We are seeing some people get in and do some bargain hunting. But there's a feeling that

this volatility is going to continue as investors try to reprice what global risk is out there.

LU STOUT: More volatility expected, another fear factor here, Maggie, lingering concerns about individual U.S. listed companies that have a lot

of China exposure. I'm talking about Apple, GM, Nike, et cetera.

LAKE: That's right.

And again. People are sort of looking at this and saying anyone who has anything to do with China is at risk. They're not sort of, you know,

making any distinctions between companies that may have been exposed to the China, you know, infrastructure spending commodity boom China, and the

China that the authorities are trying to sort of orchestrate here, which is a more transition to a more consumer-led, service-led economy.

There are some analysts who say for those companies who are sort of targeting the Chinese consumer, that's the goal of the Chinese government,

and longer term that's probably still a good place.

Short-term, though, no one is making that distinction, so you are seeing everyone sort of take a hit that has any or has been building a

business that has exposure to China.

I think that's going to change in the coming days, Kristie, as we sort of, you know, look at the -- in depth here. You heard from Tim Cook

yesterday very publicly saying, hey, our business is looking pretty good in China. But there is just not a lot of trust out there until we start to

get those figures.

They are trying to trip -- make a very large, very complicated transition, a lot of people saying it's going to be bumpy, it's going to be

volatile, and unfortunately investors are going to be swinging along with that as they try to figure out exactly what's going in China. And don't

forget, we've got the fed. There's some uncertainty related to that as well.

So, we're seeing a calmer picture today, but a lot of these concerns still very much on the minds of investors here.

LU STOUT: Yeah, trouble in China and other factors including a fed's decision definitely weighing on investors there. A lot of volatility

ahead.

Maggie Lake, thank you.

Now, let's turn our attention now to the Korean peninsula. And after days of high level talks, the north and south have reached a deal scaling

back the risk of war. Now, South Korea is shutting down propaganda broadcasts over the border while North Korea has expressed regret over a

landmine blast that wounded two soldiers from the south.

Now, let's get more now from Kathy Novak in Seoul. And Kathy, the deal is done. Tell us how we got here. How did North and South Korea

agree to draw down the tension?

KATHY NOVAK, CNN INTERNATIONAL CORRESPONDENT: Well, both had their own red line, Kristie. North Korea was demanding that these propaganda

broadcasts stop. We know how much the regime of Kim Jong-un hates these broadcasts. They see it as a personal insult to the leader himself. And

they were demanding that they stopped to the point that they were saying we're setting this deadline. And if you do not turn off the broadcast,

Pyongyang would take military action.

On the other hand, South Korea wasn't budging, because it was demanding an apology over these landmine explosions that badly injured two

of its soldiers. So, you would imagine this was all happening behind closed doors. They were talking for about 43 to 44 hours, presumably about

a range of issues, but focusing on these two points and trying to come to some kind of language that allowed both sides to go back to their

respective populations and say they got what they wanted.

And it turns out that that language is that North Korea expressed regret over the landmine incident.

Now this is significant, because North Korea does not tend to apologize over anything. So to be able to say that it expressed regret is

at least something. And South Korea is interpreting that as an apology. The chief negotiator for South Korea when he was giving a press conference

talking about the statement that was agreed to. He said it was significant that North Korea apologized even though that language wasn't in the

statement.

Now on the other hand in Pyongyang you had their chief negotiator on television again using the words expressing regret, saying that to the

North Korean people, which again is significant, but then saying that South Korea, from all of this, must have learned a lesson, that if South Korea

takes unilateral action and provokes North Korea, there will be a response.

So, implicit in that is still that North Korea is not actually taking responsibility for setting the landmines, Kristie.

[08:10:47] LU STOUT: Yeah, North Korea, even though it did express regret, that came on the back of some major, major ratcheting up of

tension. Kathy Novak on the story for us all along, joining us live from Seoul, thank you, Kathy.

Now, he was on the radar of countries in Europe long before what happened on Friday. And up next, we learned about the suspect who was

tackled by fellow passengers on a high speed train.

And Iran could be buying a sophisticated missile defense system from Russia. We'll tell you why that is causing concern later in the program.

Plus, a U.S. Republican presidential hopeful tries to explain a controversial moment, but may have dug himself a new hole in the process.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, 14 people have been detained in a joint anti-terror operation by Morocco in Spain. Now the suspects were arrested in a Madrid suburb as

well as several locations in Morocco. They're being accused of being part of a network that recruited foreign fighters to join ISIS in Syria and

Iraq.

Now the heavily armed man who was wrestled to the ground by passengers on board that high speed train in France last week could be formally

charged in the coming hours.

Now 25-year-old Moroccan national Ayoub El-Khazzani is still being grilled by investigators.

Now, by law, French authorities have until the end of Tuesday to charge him, release him, or apply for an extension. Jim Bittermann joins

us now with more on this story from Paris.

And Jim, the suspect is being questioned right now. What more have you learned about him?

JIM BITTERMANN, CNN INTERNATIONAL CORRESPONDENT: Well, let me just update you, Kristie. In fact, he's just been transferred.

Just moments ago, he left the intelligence headquarters outside of Paris about two miles behind me here before transferred to the justice

palace in Paris where all the courts sit. And that's where he'll appear before a special terrorist judge. We expect at that point that he will be

formally charged.

Now that is not open to the public, but we are going to hear from the prosecutor in about three hours. And he'll be able to tell us exactly what

kind of charges that this suspects El-Khazzani will be facing through the point that his lawyer made that he wasn't trying to commit a terrorist act,

that this was just an armed robbery gone bad and that he found a weapon in the park. A lot of people are saying that just doesn't wash. It's a kind

of fantasist idea. He had a -- he was heavily armed. He had contact with all kinds of extremist Islamist (inaudible) throughout Europe.

And a terrorism experts say that kind of denial is the kind of thing we've heard before.

(BEGIN VIDEO CLIP)

THIBAULT DE MONTBRIAL, FRENCH TERORRISM EXPERT: All the major French jihadists which have been arrested in the last two years claimed before the

judiciary that what they did had nothing to do with terrorism. And moreover, if you read the jihadist literature, they have guides for their

guys who are in -- just in case they were caught, which teach them to say that their acts had nothing to do with radical Islamism.

(END VIDEO CLIP)

[08:15:27] BITTERMANN: So, there's every expectation, Kristie, that this afternoon El-Khazzani will be in fact charged with terrorism offenses

-- Kristie.

LU STOUT: All right, CNN's Jim Bittermann reporting on the investigation. The very latest from Paris. Thank you, Jim.

And we now know the identity of another hero who helped stop the gunmen. His name, Mark Moogalian was actually the first one who tried to

take the gun away from the shooter on Friday.

Now the French-American, he was shot in the neck, and he is recovering in the hospital.

Moogalian will receive his own Legion of honor when he is better.

Now you're watching News Stream, and coming up next, we'll head over to Russia where an international air show showcasing some of the world's

most sophisticated military equipment. And we'll tell you about one potential deal that is sparking controversy.

(COMMERCIAL BREAK)

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

Now let's turn to the U.S. presidential race. Republican candidate Jeb Bush is trying to dig out of a controversy. At an event on Monday, he

tried to defend his use of the term anchor babies. Now the phrase refers to children born in the U.S. to those who are not U.S. citizens as a way

for other family members to secure legal residency.

And many consider this term offensive.

Now Bush insists he's not using the term in a derogatory way.

(BEGIN VIDEO CLIP)

JEB BUSH, FRM. GOVERNOR OF FLORIDA: My background, my life, the fact that I'm immersed in the immigrant experience, this is ludicrous for the

Clinton campaign and others to suggest that somehow I'm using a derogatory term.

What I was talking about was the specific case of fraud being committed where there's organized efforts, and frankly it's more related to

Asian people coming into our country, having children in that organized effort, taking advantage of a noble concept, which is birthright

citizenship. I support the 14th Amendment.

(END VIDEO CLIP)

[08:20:04] LU STOUT: Now, that comment has not gone over well. A senator from Hawaii is calling for an immediate retraction and an apology

to the Asian community.

Now meanwhile, there are fresh signs that Vice President Joe Biden is considering jumping into the race for the white House. Joe Johns has that.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT (voice-over): Joe Biden arrived at the White House today with a lot on his mind. His weekly lunch

with the president in the Oval Office taking on new meaning with speculation swirling about whether he will run.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Everybody is pretty interested to find out what decision the vice president is going to make.

The president has indicated his view that the decision to add Joe Biden on the ticket as his running mate was the smartest decision he had ever made

in politics.

JOHNS: A Democratic source in touch with Biden's associates tell CNN the vice president is now leaning more towards running for president than

against it.

The buzz about a possible Biden candidacy intensified after he traveled from Delaware to Washington this weekend for a secret meeting with

influential liberal Senator Elizabeth Warren.

DONNA BRAZILE, CNN POLITICAL COMMENTATOR: She's a leading voice in our party for progressive values and progressive issues, and I'm not surprised

that Joe Biden and others will seek her counsel.

(CHEERING)

JOHNS: So far, the Massachusetts Senator has refused to endorse Hillary Clinton, saying this last week...

SEN. ELIZABETH WARREN, (D), MASSACHUSETTS: I don't think anyone has been anointed. What I want to see is all of the presidential candidates lay

out where they stand on key issues.

JOHNS: Biden associates see a possible opening because Clinton has been battling trust issues with voters over his e-mail controversy.

UNIDENTIFIED MALE: Did you wipe the server?

HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE & FORMER SECRETARY OF STATE: Like with a cloth or something?

JOHNS: The latest CNN/ORC poll shows 53 percent have an unfavorable opinion of Clinton while 44 percent view Biden that way.

Democratic candidate, Bernie Sanders, sees Clinton's numbers as helping him.

SEN. BERNIE SANDERS, (I), VERMONT & DEMOCRATIC PRESIDENTIAL CANDIDATE: I think the evidence is pretty clear, we are gaining. And what the polls

indicate is that Hillary Clinton's support seems to be receding a bit.

JOHNS: Biden still would face major hurdles if he got into the race this late, raising enough money and quickly starting up an organization. In

the last few weeks, he has been talking to advisers and supporters about whether a run is realistic. Biden has been told he needs to make a decision

by October 1st. One plan would have him announce his intentions the first week of October.

(on camera): The official message from the vice president's office is he has not made a decision about running for president, and any speculation

to the contrary is false.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Now cyber hacks can hurt businesses badly, but usually they don't prove fatal. But it's looking like the case involving the notorious

infidelity service Ashley Madison could be the exception.

Now there's already a slew a lawsuits filed by exposed customers, one filed against Ashley Madison's parent company last week in Canada seeks

some $760 million in damages. And other suits have been filed in Missouri and California.

Now the Toronto-based parent company of Ashley Madison is offering a reward of nearly $380,000 to anyone who has information that leads to the

identification of the hackers. And authorities are looking at the human toll. Toronto police are investigating two suicides they say may be linked

to the massive data breach.

Now the stolen database of 32 million people who use the site has now made its way on to the web and is easily searchable on several websites

like this one right here.

And the breach exposed 15,000 email addresses from government as well as military accounts.

Now, two convicted killers, they spent three weeks on the run in New York State before one was killed and the other captured.

David Sweat and Richard Matt, they used power tools to cut through steel walls and steam pipes before emerging outside their maximum security

prison. And now we're getting a look at what the escaped looked like from the convicts' point of view. Randi Kaye reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We need a flashlight so we can get decent camera footage.

RANDI KAYE, CNN CORRESPONDENT (voice-over): Two state investigators armed with supplies and two GOPro cameras showing us how inmates David

Sweat and Richard Matt shimmied and snaked their way to freedom.

The video, given to us by an official source, is about 20 minutes long, as long as it takes for these investigators to wind their way through

the belly of Clinton Correctional Facility, just like the escapees did back in June.

UNIDENTIFIED MALE: At the end of E block.

KAYE: We're not showing the investigators' faces, but their point of view is eye opening.

They begin at the very spot where Sweat and Matt cut holes in their cells, then follow the same six-story high catwalk before jumping down to

take on an elaborate maze of pipes and the prison's tunnel system.

UNIDENTIFIED MALE: Approaching the first significantly tight squeeze, the end of B block leading into the C block area.

KAYE: About halfway through the tape --

UNIDENTIFIED MALE: Almost nine, almost 10 minutes in.

KAYE: ...our first glimpse of the hole that takes them from one prison building to the next. Investigators squeeze themselves through it to reach

the other side.

UNIDENTIFIED MALE: A bunch of lanes.

KAYE: They push forward, retracing the prisoners' steps, and just like them, dealing with unbearable heat.

UNIDENTIFIED MALE: Getting warm.

KAYE: At 14 minutes, they're underneath the asphalt yard between buildings.

UNIDENTIFIED MALE: We've entered into the block area and entered into the pipe-chased tunnels adjacent to B block and C block.

KAYE: It's a maze that even these investigators have trouble mastering. There's piping hot steam. At times, it's hard to breathe.

UNIDENTIFIED MALE: We're basically southbound from that tunnel.

KAYE: About 17 minutes in, they reach the now legendary steam pipe used by the escapees. This is where it gets tricky. Sweat had told

investigators he spent nearly a month cutting holes in this steam pipe, all part of his secret nightly trips spent mapping out their elaborate escape.

UNIDENTIFIED MALE: We're going to get in this pipe. It's going to lead to the exit. And attempting to extricate myself from the steam pipe, which

is not easy.

KAYE: And then, the homestretch, passing one chained-up manhole cover and making their way to the next one, the very same manhole Richard Matt

and David Sweat emerged from, kicking off a three-week manhunt.

Randi Kaye, CNN, New York.

(END VIDEOTAPE)

LU STOUT: Wow, incredible recreation of that prison escape there.

Now you're watching News Stream. And up next, China steps in yet again to try to stem the stock market plunge. And after the break, we'll

hear whether the raft of interventions will finally start to sink in with market players.

(COMMERCIAL BREAK)

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

Now U.S. stock futures all point to being sharply higher when Wall Street opens in about an hour from now.

Now on Monday, the Dow briefly fell by more than 1,000 points during early trade, its biggest intraday slump ever. Now the benchmark, it

managed to claw back ground, before finishing nearly 600 points lower.

Now, China's central bank has just cut interest rates to boost its sluggish economy. The Shanghai and Tokyo markets fell for another day.

Shanghai took the biggest hit, falling by more than 7 percent. It is down 42 percent since its peak in June, and it's erased all its gains for the

year.

Now a man who French police say may have been planning to massacre people on a high speed train, has just been transferred to a location where

he will appear before a special terrorism judge.

Now the 25 year old Ayoub el-Khazzani was arrested Friday after being wrestled to the floor by fellow passengers. His attorney says that her

client only intended to rob the train.

North and South Korea have agreed to end their standoff. Now South Korea is shutting down propaganda broadcasts over the border, while the

North has expressed regrets over landmine blasts that seriously wounded two soldiers.

Russia is kicking off its international aviation and space show, with hundreds of exhibitors and international delegates, it is a key event for

Russia to secure arms contracts. Now reports say that Iran is prepared to purchase a Russian missile defense system.

China's slowing growth has been rattling global markets, but some analysts say that this was always bound to happen.

Now Anne Stevenson-Yang is the co-founder of Jay Capital research. And she has extensively trapped China's economy. He joins us now live from

New York. Ann, thank you so much for joining us.

And before we get into sort of your long-term view on what's happening in China, your reaction to what happened today. We saw Chinese markets

plunging again. And then after the close of trade, China's central bank cut interest rates. What kind of impact do you think that's going to make?

[08:31:40] ANNE STEVENSON-YANG, JAY CAPITAL: Hi, Kristie.

So, you know, you have to think of it as between the rock of domestic interest rates and the hard place of foreign exchange rates. So, they've

dropped -- I think this is the fifth time that they will have dropped rates in the last nine months or so. And they also dropped the reserve rate at

the bank, so this puts more money into the lending system. It hasn't worked so far. And what it will do is put pressure on the exchange rate.

So I think we really need to watch that exchange rate tomorrow. They've pulled it back from 6.5. I think it's 6.4 to the dollar now. I

think we'll expect to see that go higher.

LU STOUT: Yeah, the state has intervened so many times, especially in the last few months, but China's stock market keeps sliding despite these

efforts, so what's going wrong here?

STEVENSON-YANG: Well, I think it's the financial crisis unfolding that we've been waiting for for the last three years.

Really, China's economy started to get much worse at the end of 2011, but they've been stimulating, stimulating, putting money into the market to

meet -- to meet defaults before they happen in order to stave this off. But you reach a point where you can't anymore.

LU STOUT: Now, you've been a long-time China observer. You've been based in Beijing for many, many years. What is the thinking among average

Chinese citizens about what's happening in the markets and about the economy and also confidence in their government to manage it all?

STEVENSON-YANG: Well, I think that's the critical thing. I think this is really a sea change in the way Chinese people -- and also foreign

analysts and foreign investors -- feel about the Chinese government, because you have the Chinese government -- faith in the Chinese government

standing between any investor and massive expected defaults in the system. Everyone sort of forebears on claiming their money, because they expect

that the government can manage to pull things through and make good on all debts.

Now, the government has these spectacular failures in the stock market intervention and in the exchange rate, and it's really -- and then of

course we have the tragic Tianjin explosions, and all of those things have really put a question mark -- you find international investors now

questioning the GDP as they never have before. That's a big change.

LU STOUT: You mentioned the Tianjin blasts as well. Beijing is under so much pressure right now. What is at stake for the Chinese government if

this economic slowdown drags on, if this market route continues, what's at stake for Beijing?

STEVENSON-YANG: Well, I mean, I think a lot of people talk about how economic slowdown would mean that people would be in the streets, there

could be a revolution, who knows. I mean, the economic expansion period also caused a lot of dislocations. So many people lost their homes, were

displaced, moved to big, you know, empty city blocks. It was plenty of unrest during that period as well. So I think bets are off.

But what we will see is increased unemployment and decreased revenue for companies throughout China as well as people. People will have less

money to spend.

LU STOUT: There's also been a lot of chatter about nationalism in China. Do you anticipate Beijing playing the nationalism card here to be

more assertive in the South China Sea and against Japan as it deals with its market and economic woes?

[08:35:12] STEVENSON-YANG: Oh, completely, because the party stands on two legs of support. One of them is the ability to deliver economic

growth, and the second one is their reputation as protector of the dignity of the Chinese nation against foreign incursions.

So, I think as leg one weakens, you see leg two strengthening. So, they have a big parade on September 3, which ostensibly is to celebrate the

allied victory in the Second World War, but is being called domestically the day of victory against Japan. And it happens to be held on the day

that Prime Minister Abe is to visit -- is to arrive in Beijing. So, it's as if the United States declared an anti-Germany day on the day that Angela

Merkel were arriving. It's pretty astonishing.

LU STOUT: Yeah, a lot to look out for in the weeks ahead. Anne Stevenson-Yang of Jay Capitol. We'll leave it there, but thank you so much

for joining us here on CNN. Take care.

STEVENSON-YANG: Thank you. You too.

LU STOUT: We'll have much more on China's stock market meltdown online. There's a quick summary of how we got to this point and more on

why China matters to investors all around the world. You can find it at CNN Mondy.com.

Now fans of a famous mystery writer are getting one last twist long after she's gone. Up next, what a London exhibit feature to mark 125 years

since the birth of Agatha Christie.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, the mystery crime writer Agatha Christie is said to be the best selling novelist of all-time, selling more than 2 billion books. And now

to mark the 125th anniversary of her birth. A new London exhibit will show fans never before seen family photos of the famous author.

Nick Glass has more.

(BEGIN VIDEOTAPE)

NICK GLASS, CNN INTERNATIONAL CORRESPONDENT: And there she is.

Agatha Christie as a child, in her own words a solemn little girl with pale flaxen sausage curls.

MATTHEW PRICHARD, AGATHA CHRISTIE'S GRANDSON: And there she is.

GLASS: Matthew Prichard is Agatha Christie's one and only grandchild. We were privileged. This is, we believe, the first time the family albums

have ever been filmed.

PRICHARD: Early years with my grandmother up until, you know, her 30s really she was a different person to what she became after she became

famous and was known for her writing. I mean, she was -- then you might say she was herself.

GLASS: This London exhibition should prove revelatory, an athletic outdoor girl on roller skates by (inaudible) Pier and in her early 30s in

Honolulu surfing.

PRICHARD: It was said that she was one of the first British women who actually, you know, was photographed upright on a surfing board.

GLASS: Agatha described the sport as heaven, one of the most perfect physical pleasures she'd even known.

Agatha Christie was simply prolific. This, they think, is the typewriter she used to tap out "And Then There Were None" and "Death on the

Nile."

Her legacy, over 100 works: novels, short stories, plays.

Matthew is the keeper of the flame, manager of her literary estate for almost 40 years now.

[08:40:03] PRICHARD: I do consider myself, if you want to use that word, a glorified brand manager. I mean, that's what my job is.

GLASS: I mean, there are lot of books. Have you read them all?

PRICHARD: Oh, yes.

GLASS: You must be one of the few.

PRICHARD: Oh no, I think there are -- you'd be surprised how many people have read all her books.

GLASS: But one Agatha story remains resolutely taboo, her mysterious, sensational and evidently traumatic disappearance from home in 1926. Her

husband Archie Christie told her he had fallen for another woman, and Agatha went missing for 11 days. She was eventually found by the police in

a hotel in Yorkshire.

PRICHARD: We don't talk about the disappearance. As you say, a lot of people ask me about it, but the family never did and I don't. So, can we

move on to the next subject.

GLASS: Absolutely.

In a way, this new exhibition amounts to a deeply affectionate tribute from a grandson to his beloved grandmother. In part, it's also a

celebration of Agatha before he came along. They both had birthdays in September.

PRICHARD: She gave me the rights to The Mousetrap for my ninth birthday. Not that I knew very much about it at the time, but I don't

think even she realized how generous she was being.

GLASS: In Agatha's hand in one of the family albums the words chariots and horses, namely the design on a favorite summer dress worn as

she left by boat with Archie on a world tour in 1922.

Not only could Agatha Christie write, but she had style.

(END VIDEOTAPE)

LU STOUT: Nick Glass reporting: all those photos there. What a treasure, especially for fans of the author.

Now finally, a Brazilian toucan is getting a new lease on life thanks to 3D printing. Now Tita (ph) was rescued from an animal fair in Rio de

Janeiro by federal police. The top part of her beak was broken, possibly after she was mistreated by wildlife traffickers.

Now it meant that Tita (ph) couldn't eat or even clean herself properly.

Now Braillian researchers, they decided to save the toucan by 3D printing a new beak. Now it took them three months in design and to print

it, but just three days for Tita to get used to her new beak. and she is now happily back to eating bugs.

And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. World Sport with Kate Riley is next.

END