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Leaders from Taiwan and China to Hold Historic Meeting; Metrojet Crash Search Zone Expanded; Japan Post Surges 26 Percent in Biggest IPO of 2015; Ending the Centuries-Old Illegal Practice of Female Genital Mutilation. Aired 8-9a ET

Aired November 04, 2015 - 08:30   ET

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

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KRISTIE LU STOUT, CNN ANCHOR (voice-over): I'm Kristie Lu Stout in Hong Kong and welcome to NEWS STREAM.

Set to meet face-to-face for the very first time, the leaders of China and Taiwan announce a surprise summit.

Plus: Myanmar prepares to vote. But as the country moves forward with democracy, it is still cracking down on dissent. We'll hear from student

activists facing trial in an exclusive CNN report.

And the future of drones: the biggest drone maker in the United States says it's all about the apps.

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STOUT: We begin with a historic summit between the leaders of Taiwan and China for the first time in more than half a century, Chinese President Xi

Jinping and Taiwan President Ma Ying-jeou are to meet in Singapore on Saturday.

Both governments regard Taiwan as a breakaway province of China and claim legitimate rule over the entire country. The Nationalist Party ruled until

1949, when it was defeated by Communist forces and supporters fled to Taiwan.

Though relations have improved, for years, they were hostile.

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STOUT (voice-over): Outside Taipei's parliament building today, protesters gathered, chanting, "Step down, Ma Ying-jeou, and stop the meeting."

Social media users in China also reacted on Weibo. That's China's popular microblogging service. One user praises the meeting, calling it a blessing

for China and said, quote, "Revive China and move towards a republic."

Another user says he looks forward to the meeting, say, quote, "Even though we can't expect any fundamental change in cross strait (ph) relations, this

is, without a doubt a big step forward."

For more, on what's expected to be discussed in the meeting, CNN's Matt Rivers joins us now live.

Matt, give us some background, what brought about this long-awaited summit?

And what will be the focus of the talks?

MATT RIVERS, CNN CORRESPONDENT: Well, we spoke to Taiwan officials very close to President Ma's administration earlier today and those officials

tell us that these negotiations that led to this point actually began around two years ago or so.

The initial hope was to get these two leaders together at one of these regional political summits like APAC. That did not happen. What happened

that led to this most recent event is that the Chinese counter-offer, they said they would be willing to have this kind of meeting if, in fact, it

could be held in a neutral third-party country and that leads us to Saturday's meeting in Singapore.

As for what will be coming out of that meeting, well, they have not issued very many specifics; in fact, both sides of this issue, both sides, both

governments have only said that they will be talking generally about peace.

Whether they will be talking about perhaps strength in economic ties or even the military tensions that have existed for decades, we're just not

sure yet.

STOUT: And the meeting will be hosted by Singapore, a country with good relations on both sides.

And Matt, when the two leaders meet this weekend, there will be some very delicate protocol in place.

Why will the two men address each other as Mister?

RIVERS: Well, that gives you a little glimpse. It might seem slightly silly, talking about how they will address each other. But think of it

like this, you have two governments here on either side of this issue that don't recognize each other as legitimate governments.

So if Chinese President Xi went to the Taiwan president Ma and called him president, he would then be, in some way, shape or form, legitimizing

President Ma as a president of a state, as a head of state. The same thing would be if it went the other way around.

So what they have come to an agreement on is that, to avoid that whole issue, to help both sides save face, if you will, they will just call each

other Mister while they have dinner.

STOUT: A closely watched meeting, delicate procedures in place, Matt Rivers reporting for us, many thanks indeed for that, Matt.

Let's turn now to the investigation into that Metrojet crash in Egypt's Sinai Peninsula. A Russian newspaper reports that victims suffered two

different types of trauma. It says the bodies of passengers who were in the front of the plane had trauma indicative of falling from the sky.

In the rear section, some bodies reportedly had metal pieces, possibly from an explosion. Now, 33 bodies have reportedly been identified and one

released to family for a funeral. Meanwhile the ground search zone --

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STOUT (voice-over): -- has been expanded to some 40 square kilometers in the Sinai Peninsula. This as investigators analyze the plane's black

boxes.

And for the very latest, CNN's Erin McLaughlin joins me now live from Sharm El-Sheikh, Egypt, the city where the flight originated.

And, Erin, we've learned that the search area has been expanded quite significantly.

Why is that?

ERIC MCLAUGHLIN, CNN CORRESPONDENT: That's right, Kristie, we've heard that the search area, according to Russian state media, is expanding to 40

square kilometers, this at a time when Egyptian officials had initially said they expected for the field portion, the field work portion of the

investigation to have concluded.

So, clearly, investigators still on the ground there, still searching for more answers at a time when we have just so many questions. And then there

are also conflicting reports about the condition of the bodies that were found on board that doomed flight.

Now, yesterday, Russian state media had reported that none of the bodies showed signs of any sort of explosion-related trauma. But that was

contradicted this morning by a newspaper report in St. Petersburg, a well- respected paper, sourcing forensic experts, that they had seen potential signs of explosion-related trauma on bodies found in the middle of the

plane as well as to the back of the plane.

Now, at the same time, we're hearing from medical sources out of Cairo, saying that none of the bodies had any evidence of serious burns. So at

this point we do not have a clear picture of what happened to that doomed flight.

A key focus for the investigators, not only what's happening on the ground there at that expanded search site but also on the black boxes, the cockpit

voice recorder, the flight data recorder, we understand, are still being analyzed and Egypt a key focus of this investigation, of solving this

mystery going forward.

STOUT: Erin, you are following this investigation very closely, there on the ground in Egypt. Also all these reports coming out of Russia, Russia

state media is also reporting that the tail of the plane was found sitting some 5 kilometers from the rest of the aircraft debris.

How should we interpret that?

MCLAUGHLIN: Well, Kristie, that's potentially significant when you consider what happened to this plane all the way back in 2001. The plane,

the tail of the plane clipped the runway at the airport in Cairo and had to be sent off for maintenance work.

Now, experts, air experts say that, if done improperly, that kind of maintenance work could lead to negative consequences for the plane years,

even decades later.

But at the same, airline officials insist that that plane was in pristine condition. They insist that it passed all of its maintenance checks. So,

again, the mystery continues as to why that plane broke apart, Russian officials say, in midair.

STOUT: Yes, the mystery continues but, as you point out, that tail strike suffered, the body of the plane over a decade, that definitely raises

questions about the airworthiness of the plane before that doomed flight.

Erin McLaughlin joining us live from Sharm El-Sheikh in Egypt, many thanks indeed for your reporting.

Staying in Sinai, Egyptian media report at least three policemen were killed when a bomb exploded outside a police officer's club in the northern

city of Arish. Several officers were wounded. ISIS says it is responsible for the suicide bombing, claiming it was carried out in response to the

Egyptian government's detention of women in the Sinai peninsula.

A Russian-built cargo plane crashed shortly after takeoff in South Sudan, killing 15 people on board. The president's office says a child and two

other passengers survived the crash. Witnesses report one of the engines failed but that has not been confirmed.

Now it becomes the second Russian plane to crash in the last four days.

You are watching NEWS STREAM. Still to come, a crackdown on student protesters, that is raising questions about Myanmar's commitment to human

rights.

Also ahead, investors have a reason to cheer in Japan. We'll tell you why in a live report from Tokyo.

And a giant volcanic ash cloud is causing travel trouble in Bali, what it means for flights later.

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STOUT: Welcome back. You are watching NEWS STREAM.

And you're looking at a visual version of all the stories we've got in the show today. We've already told you about the major meeting between leaders

from Taiwan and China and later our series, "The Rise of Drones," continues. And find out why one leading company says the future is about

software, not the hardware.

But now the world's largest public offering this year has just happened in Japan. Shares in Japan Post holdings surged almost 26 percent on their

first day of trade. All that net the company around $12 billion.

For more, Will Ripley joins me live from Tokyo.

Will, this was such an amazing market debut.

Why was investor demand so high for Japan Post holdings?

WILL RIPLEY, CNN CORRESPONDENT: We had to think about the investors we are targeting here, Kristie. It was divvied up 80 percent domestic Japanese

investors, 20 percent foreign investors. And here in Japan, there are very few brand names that are more recognizable than Japan Post. Their iconic

red post boxes are everywhere, there are 24,000 post offices. You see the delivery trucks out on the street.

And it's not just postal services they provide; they're one of Japan's largest employers; they're Japan's largest bank, Japan's largest insurance

provider.

And so for these Japanese investors, these retail investors, perhaps people have been saving up, holding on to their life savings, having it sit in the

bank and not really earn a whole lot of money, this was advertised as a chance to invest in the Japanese stock market, which has been surging as of

late but where most Japanese consumers haven't been benefiting.

A lot of foreign investors have been making money; Japanese investors haven't. And they can put their money into Japan Post, an established

brand and known commodity and hopefully make money over the long haul.

And so for the investors that decided to put their money in today, to see a 26 percent return on day one, just terrific news for them, not expecting

that to continue year after year but stable growth, long-term growth is what's really attractive to a lot of the investors here -- Kristie.

STOUT: This is the biggest IPO of the year so far. Japan Post has raised $12 billion.

How will Japan Post use all the money it's raised?

What does it plan to do next?

RIPLEY: This was a really controversial idea here in Japan. Lawmakers went back and forth on this a long time. The tipping point was actually

the 2011 Fukushima disaster because a portion of the money that was raised through this IPO will go towards Fukushima cleanup.

Of course, the money will go back into Japan Post as well. And the company's aim long-term is to continue to make money and to return a profit

for its investors. Now revenue predictions are actually down right now. Keep in mind, this is an aging society with a shrinking population so there

are demographic and real business challenges. You're talking about banking and you're talking --

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RIPLEY: -- about insurance, about the long-term viability of these businesses but the company, Japan Post, does own a tremendous amount of

undeveloped real estate, very lucrative real estate here in Tokyo, for example.

So there is going to be a lot of people watching to see what the long-term strategy is, to see how this investment will pay off for the people who are

putting their money in.

STOUT: All right. CNN's Will Ripley, joining us live from Tokyo, thank you.

Staying in Japan, the auto parts maker, Takata, is suffering major fallout from its deadly airbag scandal. U.S. regulators say it must pay $70

million for selling defective air bags and failing to acknowledge the problem.

One of its biggest customers, Honda, says it will stop using Takata airbags. They have been linked to seven deaths in the U.S. and one in

Malaysia and are the subject of the largest automobile recall ever.

You are watching NEWS STREAM. Still ahead, a banned practicing in Kenya continues to be carried out behind closed doors. In a CNN exclusive, we

are shedding light on the procedures and the dangers of female circumcision.

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STOUT (voice-over): Coming to you live from Hong Kong, you are back watching NEWS STREAM.

STOUT: Despite attempts to outlaw it, in some cultures, female genital mutilation remains a very painful rite of passage, one that millions of

girls and women --

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STOUT: -- have been forced to endure around the world. In a CNN exclusive our Nima Elbagir visits a so-called cutting room in Kenya, where these

procedures continue to be carried out, even though they are against the law in that country.

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NIMA ELBAGIR, CNN CORRESPONDENT: The practice of cutting is often handed down through the same family, through the generations, from mother to

daughter and so on and so on. They think of themselves as being the arbiters of a moral code, not just for these families but for the community

as a whole.

One such family, one such mother-daughter team, today has agreed to meet with us in secret in their home.

UNIDENTIFIED FEMALE (through translator): We are doing it because it is important for us. It's because when girls don't get cut when they are

young, they go after boys while they are still young and we don't want that. We don't want them to get spoiled. That's why we do it.

ELBAGIR: FGM is illegal in Kenya but that doesn't stop it happening. All that happens in practice is that it gets pushed into darkened rooms like

this one. This is where the girls are brought and they're laid down on the floor on plastic sheeting like this.

ELBAGIR: These are the ropes that are used to tie the girls down. These are the razor blades that they cut them with.

ELBAGIR (voice-over): It's not just Kenyan girls that are cut as FGM is known. British girls with family ties to Kenya are also brought here

during their school holidays.

UNIDENTIFIED FEMALE (through translator): We sit down the girl, someone blindfolds her and lays her down on the ground. Then we cut. We cut three

times.

Then you put the ethanol spirit, you take the ethanol spirit like this and pour it on the wound. The ethanol is a bit painful but it stops bleeding.

We blindfold them and put hands over their mouths; they don't even scream because, if they do, their agemates will despise them. So they hold it

back and endure the pain. They can't make noise because of what other girls might think of them.

ELBAGIR (voice-over): FGM is, of course, as illegal back in Britain as it is here in Kenya but the law in both countries seems powerless in the face

of centuries of this torturous cultural practice -- Nima Elbagir, CNN, Nairobi.

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STOUT: A horrific testimony there. Now a woman who was circumcised as a baby in Gambia, she is now challenging the tradition, hoping to give girls

the chance to shape their own destinies. Here's her story.

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JAHA DUKUREH, FGM SURVIVOR: We have a cultural silence. They never talk to me about the pain. They don't tell you that sex is going to hurt

forever. It is not a conversation that we have. If we keep silent, this issue will never go away. If we keep sweeping it under the rug, it's

always going to be an issue that's going to affect us.

I'm originally from Gambia and I went through FGM when I was a week old. Every time FGM is performed, a small girl is pinned down. And this is

something they don't have a say in.

When I was 15, I was brought to America by my dad to get married to the guy that I was promised to marry. He was in his 40s.

And then I was taken to a doctor in downtown Manhattan. I needed to be reopened in order for me to have sex. That's like probably the worst and

scariest day of my life because I cried the whole time. The marriage didn't last but a few months, because I just couldn't take it.

(from captions): Jaha Dukureh turned these painful emotions into action and became an anti-FGM activist.

DUKUREH: One thing about FGM is the most difficult thing that anyone that has gone through the practice can do.

UNIDENTIFIED FEMALE: (INAUDIBLE) FGM? What's FGM?

UNIDENTIFIED FEMALE: Female genital mutilation.

DUKUREH: Talking about it for me in a way is healing as well.

These girls most of the time feel like they are voiceless because people don't really know that this is happening to them.

People are always asking, why does she do it? Why is she doing it?

Someone has to do it.

(from captions): During one visit to Gambia, Jaka was able to convince her father, a powerful imam, not to subject her baby sister to FGM.

She also confronted the midwife who cut her as a baby, hoping to persuade the woman not to cut any more girls.

UNIDENTIFIED FEMALE (from captions): We believe that when the woman is circumcised she is clean and pure. And the man enjoys having sex with her

more. The first time I was supposed to have sex with my husband they had to cut me open and I was told to have sex that very day. It was very

painful. Our parents did it before us. Now we are doing it.

DUKUREH (voice-over): As much as I wanted to be angry and as much as I wanted to blame her, she's as much of a victim as any one of us is.

It pains me that the people still don't understand that, that it's not necessary. Women can choose not to have sex. Women can choose to be

virgins. They can choose to be faithful. It's a choice for --

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DUKUREH: -- everyone. You know, we can't cut pieces of their body and expect them to be faithful. You live in -- women are treated like savages

and it's wrong.

In Africa, I think that's where change is going to come from. It's people like myself that can take this back to their parents and effect change and

be the real change agents in their community.

In Mecca, female genital mutilation is not practiced at all. So if FGM was that important to Muslims, why isn't it practiced in the Muslim capital of

the world?

Even Allah didn't think about putting that in the Quran.

My brother, I think it's not necessary. I don't think we need to put our kids through that much pain.

UNIDENTIFIED MALE: It's like somehow about to be convinced.

UNIDENTIFIED MALE: Maybe I can save that one. Maybe I can save that one.

DUKUREH: Please, I would love that.

I want to see female genital mutilation end in my generation. I want to be alive when we see that there is no more female genital mutilation anywhere

in the world. That's my hope and that's my dream.

On behalf of the United States, when required by the law.

(from captions): Jaha Dukureh became a U.S. citizen on August 18, 2015. She says she plans to raise her voice even louder in the campaign to end

FGM.

STOUT: This has got to stop. This has to end now. And if you want to help stop female genital mutilation, you can start by going online, going

to this website. We have links to organizations that are fighting against this practice and helping the victims.

You can learn more at CNN.com/impact.

You're watching NEWS STREAM. Coming up next on the program, they were thrown behind bars for protesting for a better education. We will hear

from Myanmar's student activists after the break.

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KRISTIE LU STOUT, CNN ANCHOR (voice-over): I'm Kristie Lu Stout in Hong Kong. You are watching NEWS STREAM and these are your world headlines.

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STOUT (voice-over): The leaders of Taiwan and China are to meet for the first time since the end of the Chinese civil war in 1949. Chinese

president Xi Jinping and Taiwan president Ma Ying-jeou are set for historic talks in Singapore on Saturday. The news triggered protests in Taiwan,

with some calling for the meeting to be cancelled.

New clues in the investigation into the deadly crash of a Russian airliner. Now a Russian newspaper reports the victims suffered two different types of

trauma. Some in the front of the plane had trauma indicative of falling from the sky and some in the rear, reportedly, had metal pieces, possibly

from an explosion.

Meanwhile the ground search zone has expanded to 40 square kilometers.

ISIS has claimed responsibility for a suicide bomb in Egypt that killed three policemen. The explosion was outside a police officer's club in the

northern Sinai city of Arish. ISIS claims it was carried out in response to the detention of women in the Sinai Peninsula.

Eruptions from a volcano in Indonesia are grounding hundreds of flights at the airport in Bali and two other airports in the region. A cloud of

volcanic ash is cloaking the popular resort island, disrupting travel plans for many tourists.

The transportation ministry says that nearly 700 flights have been cancelled so far.

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STOUT: Myanmar is gearing up for what is said to be its freest election in 25 years. However, Human Rights Watch calls the election fundamentally

flawed. This is why.

Now 25 percent of the parliament seats are reserved for the military. This gives the armed forces an effective veto over proposed constitutional

change. Human Rights Watch says this, laws and policies prevent Rohingya Muslims from voting or standing in the election, it also says the ruling

party dominates state media.

Over the years the military has taken small steps toward democracy including freeing dozens of political prisoners as part of a mass amnesty.

But now student protest leaders are being rounded up. And Ivan Watson spoke exclusively with these activists.

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IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Protesters rush through the streets of Yangon. They move swiftly, fired up

with adrenaline, demanding the release of student activists stuck in jail.

UNIDENTIFIED MALE: We want freedom. Our students have priority in prison.

WATSON (voice-over): Police watch closely but for the moment, they do not intervene. Last March, other demonstrators weren't so lucky. That's when

police cracked down hard on a student protest. Activists were on a march to the commercial capital to demand changes to an education law.

But police stopped the march, arresting scores of demonstrators and venting their fury on a (INAUDIBLE) truck.

WATSON: Scenes like this police crackdown were supposed to be a thing of the past. Four years ago, the military junta that long ruled this country

made the sudden decision to open up Myanmar to reform to transition to a civilian government.

But the prosecution of student protesters has led many to question the new government's commitment to democracy.

WATSON (voice-over): On a rainy day, supporters gather at a courthouse in Thayawady, where dozens of the student activists arrested last March are

now standing trial.

Twenty-eight-year-old Honey Oo (ph), a long-time political dissident, faces a possible sentence of nine years in prison for participating in an illegal

protest.

UNIDENTIFIED FEMALE (through translator): This is not real democracy.

WATSON (voice-over): Human rights monitors argue talk of democratic reform in Myanmar as little more than window dressing.

UNIDENTIFIED FEMALE: I think it really shows that there are some people within the government, pro-military elements, that do not want to reform

any further in the country, that this is the limit.

WATSON (voice-over): Pyon Kyung (ph) is another political dissident, who spent four years in prison during the military regime. She may now go back

to prison again.

UNIDENTIFIED FEMALE: We will try to change our education, to get a more democratic education; after that we were sent to the prison again and

prison trial.

WATSON (voice-over): After the judge approves yet another delay in court proceedings, the prisoners march out, chanting defiantly.

Pyon Kyung (ph) takes her place on a police truck back to jail. The prisoners sing a full-throated song of protests. Myanmar is in the midst

of an historic period of transition. But no one knows where this bumpy road will take the country next.

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WATSON (voice-over): -- Ivan Watson, CNN, Yangon.

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STOUT: The spokesman for Myanmar's president has defended the arrests, telling CNN that the government has a responsibility to balance new

freedoms with maintaining law and order during the difficult transition from decades of authoritarian rule.

You are watching NEWS STREAM. Still to come on the program, we are hearing it is software that will fly high in the evolution of drone technology and

we will tell you why. Stay with us.

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STOUT: Welcome back.

All this week on NEWS STREAM, we have been taking a close look at the rise of drones and remote controlled quadcopters like this one. They form the

iconic image of a drone. But one company thinks that we should look beyond the hardware and that the future of drones will be defined by its software.

3D Robotics are the makers of the solar drone, and earlier I spoke to Chris Anderson, the CEO of 3D Robotics, and I asked him to explain his company's

approach.

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CHRIS ANDERSON, CEO, 3D ROBOTICS: 3D Robotics is America's largest drone company. We are based in Silicon Valley; like everybody else, we do

hardware, we do software. But we think that the models really like an Android, like a software platform, it's a stack of software that goes all

the way from the drone to the phone to the cloud and at every layer other companies can build apps or drones or other hardware.

STOUT: You are an open platform like Android, why do you think the open platform model is better for drones?

ANDERSON: Well, you know, both can work fine. Obviously Apple and Android both compete. And they both have their pros and cons. The lessons of the

last 20 years of the Web are that platforms win and open platforms win more. They allow more companies to figure out, especially on a new

technology like drones, it's not quite clear what all the applications are going to be. And no one company can figure the model out by themselves.

So an open platform allows more companies to innovate it, more layers of the platform, they can try different sensors, they can try different

vehicles, they can try different apps and they can try different cloud services and collectively they can out-innovate any single company.

STOUT: Right now among consumers, there is a lot of emphasis on the look and physical presence, the hardware drones.

But how important is software?

We know software is so important in the smartphone industry.

Do you think it's going to be the same way for drones?

ANDERSON: Yes, absolutely. The paths are very parallel. So right now, it's largely consumer product and so the look and feel, just in the same

way that the smartphone started, Apple had to make a beautiful phone. And only after it was a phone did people cared that it was also an app store.

Same thing with drones; it has to be a beautiful, functional, easy-to-use drone that captures great video. And only then do people start exploring

the applications and the other services.

STOUT: You are anticipating this shift in drone acceptance as well as drone usage from consumer to commercial.

What is next in terms of drone technology?

ANDERSON: That's the really interesting thing. So basically the first step was making drones easy to fly. And we've pretty much -- we and DJI

have both solved that.

The second step was connecting them to phones, making the phone the primary interface, so getting away from whole sort of stick-and-piloting interface.

It's more like a camera. You think of like the phone you already have.

And the third step is connecting them to the cloud so they become just part of the Internet of things. And you don't even care about the drone,

itself. All you --

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ANDERSON: -- care about is the data, getting it into the cloud where it can be analyzed.

So that means totally autonomous use, it breaks the link between man and machine. These things are out there like sprinkler systems, security

cameras, just gathering data.

To do that, to allow them to operate unattended means they have to be -- have what called sensitive void. They need environmental awareness, they

need to be able to navigate a space, where there may be trees and telephone poles and birds and things like that.

And that level of environmental awareness is the next Holy Grail of drones. It's the same as with autonomous cars. These are robots. And they need to

be able to navigate a complex world even more safely than humans so that we can take humans out of the loop and no longer require them to pilot them.

STOUT: Right now, as a consumer, interacting with drones, our reference point is being able to use them mainly for aerial cinematography.

So when the day comes and they become truly autonomous, what would that do for that activity, for that way that we relate to drone technology today?

ANDERSON: Right now, it's not enough to just get a video. There is a right way and a wrong way to take aerial video. Hollywood knows how to

take, you know, beautiful cinematic videos.

But we don't, we're just not experienced with these kinds of things, so smart drones can turn those shots, those paths and angles into software.

So you just press a button and it gets sort of classic cinematic shots all by itself.

That way, you can be in front of the camera rather than behind it. You can be part of your own story, which is really what people want.

(END VIDEOTAPE)

STOUT: Chris Anderson there on our drone future. Now there are growing concerns as drones become more and more common, everything from the

potential to invade your privacy to security risks. And that has some calling for a drone registry or some other way to track the gadgets.

When our series continues, contributor and newyorker.com editor Nicholas Thompson will join me and explain why all this matters to you. It is all

connected to the rise of drones, this time tomorrow, only on CNN.

And that is NEWS STREAM. I'm Kristie Lu Stout. But don't go anywhere. WORLD SPORT with Alex Thomas is next.

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