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Denmark Passes Anti-Asylum Law; Europe Looking to Tighten Borders; Interview with Elon Musk; Donald Trump Pulls Out of Last Republican Debate; Apple's Growth Looks to Reverse in 2016; South Africa's Controversial Virgin Scholarship Program. Aired 8:00a-9:00a ET

Aired January 27, 2016 - 08:00   ET

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

[08:00:37] KRISTIE LU STOUT, HOST: I'm Kristi Lu Stout in Hong Kong and welcome to News Stream.

Now, we've been telling you about the cold reception facing Syrians fleeing to Europe. And now you'll hear from refugees stuck in limbo about

where they want to go.

Now, Apple again posts the most profitable quarter in U.S. corporate history, but there are signs that Apple's record run is finally at an end.

And Elon Musk delivers a stark warning for mankind. More from my exclusive interview with the tech visionary.

Europe discusses border control as EU states struggle to cope with the daily influx of desperate migrants. More European governments are

hardening their stance against the refugees. Now, some countries are trying to shut their doors to prevent migrants from coming.

In Denmark, lawmakers passed a bill that delays asylum seekers reuniting with their families. They say they can't deal with more people

all at once.

Now the bill also allows valuables to be confiscated to help pay for housing, food, medical care, and education.

Now meanwhile in Norway, anti-government protests are being planned in several cities as the country works to deport more than 5,000 migrants who

entered the country through Russia. And Moscow says it doesn't want them back.

And EU states are asking Greece to tighten its borders to stem the influx of migrants arriving in Europe.

Our international diplomatic editor Nic Robertson is in London. He joins us now. And Nic, that controversial migrant confiscation policy,

that's just passed in Denmark, and there are similar laws in place across Europe.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: What we are seeing right now, what we are witnessing is Europe struggling with the integration

of all the immigrants. Last year was the year of immigration. This year we will hear

about integration.

Denmark has struggled with a way to put the sort of best political foot forward knowing that a lot of the population now don't want more

refugees. In a country like Sweden, they've taken in a huge number of migrants and refugees relative to sort of per capita.

Sweden itself, the chief of police there is asking for 4,000 additional police officers and civilian officers to cope with disturbances

that the large number of migrants they have there.

Norway, we're familiar with those pictures earlier late last year of migrants coming from Russia no bicycles, because that was somehow the legal

way that they could get out of Russia and into Norway. They could buy cheap bicycles, ride cross the border.

But now that's being met with pushback from the government.

What we're witnessing in Europe is that the governments are finding there is political pressure, social pressure, on them to sort of throttle

back on the flow of migrants.

And Germany is a prime example of that where Angela Merkel was really seen as a moral compass on this. And Germany really taking the lead,

opening its doors, saying it would take as many Syrian migrants as came.

Well, 800,000 came to Germany, more than a million migrants came into Europe last year. And that's just stretching the country's abilities, all

the countries' abilities, even Germany stretching their abilities, to physically cope and then that precipitates a political reaction. And

that's what we are seeing here in all of these countries right now.

LU STOUT: Yeah, it's extraordinary to see the turnaround, especially in Germany, which had been regarded as one of the most desirable

destinations for migrants, especially in the wake of what happened in Cologne. That's changing. We are seeing this hardening of attitudes

towards migrants.

So, how are they migrants regarding Germany in terms of being a potential

destination, a potential safe haven?

ROBERTSON: Well I think that's going to be something that's going to change in the coming months, because what Germany has -- is looking at at

the moment, along with other European nations is potentially imposing passport border controls inside the Schengen Europe, the area of Europe

that you can, until now, have been able to move around freely without passports. Get on a train in France, for example, get off the train in

Germany or other countries in Europe. That's not going to be -- perhaps not going to be possible in the future.

The other outfall of this is going to be the difficulty for migrants potentially getting from Greece into the rest of Europe. That has been a

relatively easy path up until now. But we have just heard from the European commission saying that the decisions they took back in September

last year, which was to get countries like Greece and Italy to set up what were known as hot spots where migrants were supposed to be registered,

they're saying that Greece has been negligent in that. It's done some, but not enough.

And there are talks within Europe to essentially shut Greece off from the Schengen area, essentially redraw the outer perimeter border of Europe

further north, something that can be better defended by closed borders. This would be a real departure from the idea of an open Europe, free

business across open border.

So, these are very significant changes and challenges that are happening. And Greece may bear the brunt of some of the outfall of the

failure to deal with this big migrant flow up until now.

[08:06:13] LU STOUT: Yeah, especially as more physical and political barriers are being set up, impeding the migrant journey.

And Nic, do stay with us. I want to get your thoughts on this next story. Thousands of refugees from Syria, also from Iraq, now housed in

refugee camps in neighboring countries. And although they have escaped the war and the violence, life inside these camps is grim to say the least.

Now, CNN's Jomana Karadsheh visited a Syrian family at the Zaatari refugee camp in Jordan. And she filed this report.

(BEGIN VIDEOTAPE)

KARADSHEH: It's cold, it's grim and unforgiving. This is winter in Jordan's refugee camp. This family has lived through three winters here.

For them, the season means time for traditions from home. They sing this song for Syria.

Syria, don't forget us, we will return. Hope is still alive, they sing. But these are just words. They don't think they'll ever see Syria

again. This 18-year-old would like to go to Europe or Canada. Living here is not a life. It's an existence, she says. They say they won't risk their

children's lives to reach Europe. Instead, they'll wait to be resettled by the United Nations.

ANDREW HARPER, HNHCR: The Syrians don't necessarily want to go to Europe. They to want return back to the villages, their towns, their homes.

Europe is an alien concept for them. They're scared. For them to put their lives at risk, to put their children's lives at risk to make this journey,

wouldn't it be far better to provide the support to countries like Jordan, Lebanon and Turkey to help these countries do what they want to do, which

is provide the protection?

KARADSHEH: Around 80,000 Syrians live here in this refugee camp. Over the past three years, it has evolved into a city of sorts with markets,

restaurants and schools. There are weddings that take place here daily and 50 to 60 babies are born here every week. This camp is the only home this

nine-month-old has ever known. When her father and his family fled, they thought it would be for a few months. That was in 2012.

Of course, we expect to return, even if this baby is 60, we will continue to hope, he says. With no end in sight to the conflict back home,

people old and young can only wonder how many more winters like this they'll have to endure.

Jomana Karadsheh, CNN, Zaatari Refugee Camp, Jordan.

(END VIDEOTAPE)

LU STOUT: Now, let's go back to our Nic Robertson. And Nic, scores of families, they are still desperate to find safe haven, many want to find

it beyond the war zone, beyond the refugee camps in Europe. And yet we have this increasingly hardening stance on migrants across the EU. So,

what is the latest on any attempt to find a common solution to the crisis across Europe?

ROBERTSON: Well, the common solution at the moment appears to be heading in the direction of hardening the borders of Europe, the external

borders as much as possible and the internal borders as well, because there's a realest here, not just to keep the refugees and the migrants from

getting to nations like Germany that are already full from places like Denmark. Then you know, they're going to be -- the migrants will be faced

with increasing controls. What's going to be -- what is being debated now and what will be further debated and potentially voted on is an extension

of the sort of temporary measures.

You have Norway, Sweden, Denmark, Germany, Austria, France, Slovenia, Hungary, The Netherlands. All of these have temporary border controls in

right now. But they could vote for a system that would essentially allow fixed border controls for the next two years. There are -- the European

nations are looking at the ways to try and sort offset how that could impact business.

So, I think what we saw late last year or sort of at the end of the summer last year when Angela Merkel said we will open our doors and let in

as many refugees as will come, and that was widely viewed as that was sort of -- you know, refugees coming out of Syria and other countries looked at

that and OK, said this is the time to do it. This is the time to make it to Europe.

I think the message we will see coming out of Europe, and is beginning to come out right now,

is going to be one well, we're going to -- if you try to come, we're going to try to keep you out. You might end up in Denmark where you could lose,

you know, some of your family's hard saved and hard earned money.

So, there is going to be a number of factors here which could put people off. Young families like the ones we have just seen in the Zaatari

camp there. It is a huge and terrible decision for parents there to know that they potentially put their children's lives at risk to give them a

better future.

But the pull, as long as the war sgoes on in Syria, that pull to go to a better place and give those

children a better future and not wait it out in these camps, that pull will get stronger and stronger.

LU STOUT: Yeah, the outlets of hope to find safe haven quickly diminishing, because of this hardening stance across the EuroZone. Nic

Robertson, we thank you for your reporting.

Now, thousands of migrants, they risk their lives crossing the Mediterranean Sea to try to get to

Europe and away from their war torn homes. And we have a list of organizations who help these desperate refugees. Just go to our website,

it's at CNN.com/impact to find out how you can help.

Now, Apple's second quarter isn't impressing Wall Street. Still to come here on News

Stream, slow sales for one product suggests apple may be near the end of the latest growth era.

Also ahead, inventor and tech CEO Elon Musk weighs in on plummeting oil prices and

what it could mean for electric cars.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, the last quarter of 2015 was Apple's most profitable ever. The tech giant posted more than $18 billion in profit. That's up 2 percent

from the same period last year. But dark clouds are gathering.

Now CEO Tim Cook says for this quarter, he is expecting the first ever decline in iPhone sales as well as the first revenue drop in 13 years.

Let's take a look at how far Apple has come since the last time revenues slumped. That was back in March of 2003. And the iPod was only a

smart part of Apple's business.

Now the iTunes music store wouldn't launch for another month. And Apple's main products were still computers like the PowerBook. And that

quarter, Apple's total revenue was $1.5 billion. In the last quarter, $51 billion.

Now, let's take a closer look at how Apple is doing right now. We want to bring in Nicholas Thompson. He is of course the editor of

TheNewYorker.com. Nick, good to see you. And is the iPhone business finally peaking?

NICK THOMPSON, NEWYORKER.COM: I think so. You know, compared to a quarter -- compared to a year ago, this is the first time we've had almost

no increase. The next quarter, we're going to have a decline.

It does seem like the market is saturated, the overall market for smartphones, as we've seen in Samsung and other companies, isn't growing as

fast. They're not expanding in China as much as they hoped. So, yeah, it looks like it might finally have peaked.

It peaked at a massive number. And the company is still doing extremely well. But, yes, it's peaked.

LU STOUT: And that's worrying, because investors want growth, especially from tech companies.

So, if you look at Apple and its current lineup of products and services, where can Apple find the growth?

THOMPSON: Very interesting question, very important question.

So, if you look at iPhones, maybe when they launch the iPhone 7, you know, in September. Probably it will be so amazing they'll get the growth

there.

It doesn't seem like it's going to come in iPads, which are in a serious decline. It doesn't seem like it's going to come in Macs, which

also declined.

Then in the other categories, in services and, say, watches. They've got growth, but it's very small.

So, if you want the kind of growth that Apple investors are used to, they're going to need something else. We've been talking about a TV for

years. That seems like it was kicked to the back burner, possibly a car, something else, I don't know. We may just be in a period where Apple

doesn't grow the way we're used it growing.

LU STOUT: And Apple can make that something else, or it can buy that something else. It has that huge cash pile to buy up new assets. So could

Apple find growth in brand new crazy areas like, for instance, virtual reality?

THOMPSON: Well, that's a very interesting question, yes.

So, the best line in Tim Cook's earnings call yesterday was when he said that Apple has the mother of all balance sheets, which is absolutely

true. They have over $200 billion in cash just sitting there.

Could they invest that in something new? Could they make a huge expansion elsewhere?

There is another really interesting moment on the earnings call where one of the analysts asked about virtual reality. And Tim Cook is, of

course, isn't going to reveal anything, but he kind of hinted that, yeah, this is pretty important. So, maybe VR is where they're going to go. And

maybe they will use a chunk of that money to push ahead of their competitors.

LU STOUT: It's a critical turning point for Apple. We'll see what comes next. Nick Thompson, thank you as always. Take care.

THOMPSON: Thank you, Kristie.

LU STOUT: Now, earlier this week, I had a chance to catch up with Elon Musk in an exclusive interview.

Now he is, of course, the tech CEO that builds rocketships that will carry humans into space and makes cars that don't require gasoline.

In this next part of my interview, he weighs in on tanking crude oil prices and how it is affecting his own fleet of Teslas.

(BEGIN VIDEOTAPE)

LU STOUT: Plummeting oil prices, is that going to undercut the viability of electric cars? Your thoughts on that?

ELON MUSK, CEO, TESLA: Well, it definitely reduces the power of the economic forcing function to go electric if oil is at decadal lows.

I think in a case of Tesla it probably affects us a little bit less because we have quite significant product differentiation. For lower

priced EVs where it is more of an economic decision, I think they will actually take a pretty big hit.

So, the EV industry as a whole I think will definitely suffer for that because of the low oil prices. It kind of makes economic sense that it

would.

LU STOUT: So it could stall the rollout of the Model 3?

MUSK: No. I don't think -- the Model 3 will have pretty substantial product differentiation. So, you essentially have to say, okay, here's the

value. The value is a certain level and then the price is a certain level. So, as long as the value and the price make sense relative to each other, a product will be fine.

LU STOUT: A question about Solar City. You're also the chairman of Solar City where you are launching solar panels, building out solar panels

and systems. Why does solar make sense?

MUSK: The people of earth will have to make a decision to what degree are we willing to sacrifice the future for the present. The overwhelming

opinion of the scientific community is that should not put billions of tons of carbon into the atmosphere, which is what we are doing. So, but unless

we change the rules -- because the rules currently strongly favor hydrocarbons. Unless we change the rules, I think we are in for a really

rough future.

LU STOUT: I mean, is that at the back of your mind of how you can seduce the public to buy into a low carbon when it's so easy with low oil

price that they don't need to go solar. They don't need to go electric, so you have got to make it cool for them, you've got to make it enticing for

them.

MUSK: Well, that's what we are trying to do with Tesla is we're trying to make the electric car so compelling that you don't care about

cheap gas. That's harder I think on the solar front, because electricity is more of a commodity, you don't -- it's not like different types of

electricity, it's essentially a commodity.

I mean, fundamentally we have a delayed gratification issue collectively as a species. Like, are we willing to sacrifice the near term

for the long-term or not? I mean, at some point we will have no choice, because we will run out of hydrocarbons to mine and burn, and we will have

to transition to a sustainable energy economy.

So, sooner or later we've got to go towards a solar electric future. It is better for the future of

Earth if we go sooner than later.

(BEGIN VIDEOTAPE)

LU STOUT: Later in the hour, hear what Elon Musk has to say about China's electric market and where is Tesla's stance in the mainland's

competitive lineup?

You're watching News Stream. Still to come, imagine this scenario -- keep your virginity and get a scholarship. Now outrage is growing as the

South African mayor who came up with the student grant idea defends it.

(COMMERCIAL BREAK)

[08:28:57] LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

A mayor in South Africa has started a college scholarship for young women, but to qualify, recipients must remain virgins during their

education and that is being called sexist and evasive.

Now for more, let's bring in David McKenzie. He joins us now live from Johannesburg.

And David, I'm trying to understand the logic here, why set up a virginity-based scholarship and what kind of outrage is it stirring up

there?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, certainly there is a

great deal of outrage, Kristie, from many quarters of South Africa who say that this plan by a mayor

in South Africa to have scholarships that are contingent on virginity is unfair, sexist, and really discriminates against these women.

But we traveled to this rural part of South Africa and found them convinced that this is the way to do the system.

(BEGIN VDIEOTAPE)

MCKENZIE: These are some of Thubelihle final days at home. Spending time with her granny and young sister before she heads to the city for

college.

An accomplished student, Thube won a government scholarship. One of the main requirements,

that she remain a virgin.

THUBELIHLE, SCHOLARSHIP RECIPIENT: We are keeping ourselves from boys.

MCKENZIE: To stay with the program she must submit to virginity tests for her college vacation. If she fails, she loses her funding.

THUBELIHIE: I don't have children, you see. And I'm 18 years old. I must study hard to change and conquer the world.

MCKENZIE: Thube is known as a maiden in Zulu culture where virginity testing is common practice.

Here in rural Kwazulunatel (ph) tradition rules.

But rights activists we called say the scholarship is invasive and sexist.

You say it is discriminating because it is based on someone being a virgin.

UNIDENTIFIED MALE: What about (inaudible). There's a better way of getting an education.

UNIDENTIFIED FEMALE: I just need to support them.

MCKENZIE: Mayor Dudu Mazibuko thought up the virgin only scholarships. She was a teen mother herself.

DUDU MAZIBUKO, MAYR: We have tried many ways to keep down this teenage pregnancy and now the infection of HIV and AIDS.

MCKENZIE: And nothing is working?

MAZIBUKO: Nothing is working.

MCKENZIE: In this part of South Africa, the odds are stacked against students finishing school, especially girls.

So-called sugar daddies prey on poor young girls, exchanging money for sex. When girls get pregnant, they drop out.

MAZIBUKO: Young girls are vulnerable. They can't refuse to have sex with an older person. They cannot even instruct an old man to wear a

condom.

MCKENZIE: South Africa's main opposition party has lodged a complaint against Mazibuko's program with the country's human rights commission.

THUBELIHLE: I tell them no worry. It's my choice.

MCKENZIE: Thube says the virgin scholarship is her choice, her only chance to get in to college.

(END VIDEOTAPE)

MCKENZIE: Well, you know, Kristie, around 16 girls or young women got the scholarship this year. They say if they are proven to have lost their

virginity through this means, which is frankly by no means scientific, they could lose access to an education. They want there to be hundreds more in

the coming years.

Now to put this in perspective, this region, this district, pregnant mothers have around 50 percent of them have HIV, they say, and that is

really a problem that has been there for years and years. It seems like the administration there is trying to find any desperate measure to

convince girls to keep away from getting pregnant during high school.

But many say that this particular way of doing it is not the way to go -- Kristie.

LU STOUT: Yeah, I understand what's at stake, but there's got to be a better way to deal with the issues here.

David McKenzie reporting. We thank you for that.

LU STOUT: Now, you're watching News Stream. And still to come on the program, Washington's top diplomat is in Beijing, pressing his Chinese

counterpart on some very prickly issues.

And Fox News responds to Donald Trump's decision to boycott its Republican debate.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:41] LU STOUT: Now after a tense hour's long meeting between U.S. Secretary of State John Kerry and his Chinese counterpart, two things

were clear: the U.S. and China agree that North Korea's nuclear program must be stopped, but the two nations remain in sharp disagreement about

what that something is.

Our global affairs correspondent Elise Labott reports.

(BEGIN VIDEOTAPE)

ELISE LABOTT, CNN CORREPSONDENT: Calling Kim Jong un's latest nuclear test reckless and dangerous, John Kerry told Chinese leaders it can't be

business as usual. And it's time to step up.

JOHN KERRY, U.S. SECRETARY OF STATE: The United States believes very strongly that China has a particular ability because of its special role

and its connections to North Korea, an ability to be able to help us significantly to resolve this challenge.

LABOTT: Kerry wants North Korea's largest benefactor to finally put the squeeze on the unpredictable and erratic leader and support tough UN

sanctions. After close to five hours of talks, the tension was evident.

KERRY: With all due respect, more significant and impactful sanctions were put in place against Iran, which did not have a nuclear weapon, than

against North Korea, which does.

LABOTT: China said it was willing to play ball at the UN

WANG YI, CHINESE FOREIGN MINISTER (through translator): There should not be any doubt about it, and no one should question China on this.

LABOTT: But a visibly frustrated Chinese foreign minister made clear that North Korea's neighbor and closest ally is still reluctant to push too

hard.

YI (through translator): The new resolution should not provoke new tension in the situation (inaudible) destabilize the Korean peninsula.

LABOTT: China arguing sanctions have failed to curb the nuclear ambitions of three generations of North Korean leaders and that what Kim

Jong-un really wants is to sit down with the U.S.

YI (through translator): Sanctions are not an end in themselves. The key is to really resolve the issue.

LABOTT: Kerry agreed, but said the U.S. would not stand by in the face of North Korea's nuclear threat and warned with Kim Jong-un

developing long-range missiles that can hit the U.S., North Korea must be stopped.

KERRY: The United States will take all necessary steps to defend American people and honor our security commitments to allies in the region.

I say that making clear that we don't want to raise military tensions.

LABOTT: Secretary Kerry agreed that along with a stick there should be a carrot and that if North Korea were willing to change course, the U.S.

would sit down with North Korea and discussion sanctions relief and even economic aid. But he reiterated once again that the U.S. could never

accept a North Korean nuclear state.

Elise Labott, CNN, Beijing.

(END VIDEOTAPE)

LU STOUT: In Oregon, law enforcement officials have arrested eight people, including a protest leader, after nearly month-long standoff at a

wildlife refuge. And one person was killed when gunfire broke out during a traffic stop.

Now, U.S. justice correspondent Evan Perez joins us now live from New York. And Evan, the leader, Ammon Bundy, was arrested, another key figure

in this standoff has been killed. What happened? How did all of this unfold?

[08:35:06] EVAN PEREZ, CNN CORRESPONDENT: Well, this all unfolded in a highway away from this Oregon wildlife refuge, federal wildlife refuge,

where these protesters have been holed up almost a month.

The FBI and the Oregon State Police conducted a traffic stop. And according to them, that's

when the shooting started. It's not clear exactly who shot first, but in the end one person was

killed, his name is Lavoy Finicum. He is one of the main leaders of this protest, and he's been one of the most outspoken members acting as sort of

a spokesperson for the group.

And we also know that Ryan Bundy, the brother of the leader, Ammon Bundy, he also was injured in the firefight.

LU STOUT: All right. CNN's Evan Perez reporting there. Many thanks indeed for that.

The Republican front runner is pulling out of the Fox News debate just days before the first voters have their say. And after the break, the

network is lashing back. Hear what they have to say about the 11th hour boycott.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, Fox News has responded to Donald Trump's decision to boycott its Republican debate. The news organization says it will go on with or

without Trump at the center.

Now, whether there is a brilliant political move, or colossal mistake is uncertain right now.

Now CNN's Sunlen Serfaty is in Iowa where the first votes will be cast.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN CORRESPONDENT (voice-over): With five days left to drum up support ahead of the Iowa caucuses and just a day shy of the next

GOP FOX debate.

TRUMP: I said bye-bye.

SERFATY: Donald Trump going rogue. Dumping FOX News.

TRUMP: Probably I won't be doing the debate. I'm going to have something else in Iowa. We'll do something where we raise money for the

veterans and the wounded warriors.

SERFATY: Trump claiming unfair treatment from FOX News moderator Megyn Kelly.

TRUMP: Megyn Kelly is really biased against me. She knows that. I know that. Everybody knows that. Do you really think she can be fair at a

debate?

SERFATY: FOX News standing by Kelly while Trump walks.

KELLY: Trump is not used to not controlling things. But the truth is he doesn't get to control the media.

SERFATY: So how will his power play fair with Iowans just before the first votes are cast? The RNC responding to Trump's move telling CNN,

quote, "Obviously we would love all of the candidates to participate. But each candidate ultimately makes their own decision what's in their best

interest."

But Ted Cruz, Trump's main opposition in the GOP race, says not so fast.

SEN. TED CRUZ (R), PRESIDENTIAL CANDIDATE: Apparently Megyn Kelly is really, really scary. Donald is a fragile soul.

SERFATY: The Texas senator issuing this challenge to the frontrunner.

CRUZ: If he's unwilling to stand on the debate stage with the other candidates then I would like to invite Donald right now to engage in a one-

on-one debate with me any time between now and the Iowa caucuses.

SERFATY: Trump putting the final nail in the coffin Tuesday night after FOX News released a tongue-in-cheek statement, poking fun at Trump's

threats to back out, saying in part, quote, "We learned from a secret back channel that the Ayatollah and Putin both intend to treat Donald Trump

unfairly when they meet with him if he becomes president."

TRUMP: They can't toy with me like they toy with everybody else. So let them have their debate and let's see how they do with the ratings.

(END VIDEOTAPE)

LU STOUT: And that was Sunlen Serfaty reporting.

We will have more much on this on World Business Today with Maggie Lake. She will speak with CNN senior media correspondent Brian Stelter

about whether the billionaire's gambit can pay off. World Business Today is starting in about 20 minutes from now.

Now, all week we have been bringing you my exclusive interview with the tech entrepreneur Elon Musk. He was here in Hong Kong to speak at a

technology start-up forum. And while at the conference, I had the chance to moderate a discussion with the CEO and asked him what he thought of

Tesla's electric competition from China.

(BEGIN VIDEO CLIP)

MUSK: Well, we don't think too much about what competitors are doing.

LU STOUT: Yeah.

MUSK: Just because I think it's important to be -- just focus on making the best possible products. You know, it is maybe analogous to

what they say about you know if you're in a race, don't worry about what the other runners are doing, just run.

LU STOUT: Yeah.

But to push that metaphor even more, are you afraid that whoever is hosting the race could tilt the race in favor of the Chinese racer?

(APPLAUSE)

MUSK: I'm trying to figure out if there is any way to answer that question and not lose.

LU STOUT: You get one pass during this interview. If you would like to take the pass, you can take that pass.

MUSK: I'll pass on that one.

(APPLAUSE)

(END VIDEO CLIP)

LU STOUT: I think his so-called non-response is very revealing there.

Now, we will be showcasing more of my exclusive interview with the billionaire all this week on News Stream. And tomorrow, hear what he has

to say about one of his other ventures, SpaceX.

Now, lastly a farewell to an actor, Abe Vigoda, who died on Tuesday at the age of 94. Now, he found fame after he was cast in the role of Sal

Tessio in The Godfather movies.

(BEGIN VIDEO CLIP)

ABE VIGODA, ACTOR: Can you get me off the hook for old time's sake?

UNIDENTIFIED MALE: Can't do it, Sally.

(END VIDEO CLIP)

LU STOUT: And unforgettable character actor. In 1972's Godfather was Vigoda's first big movie role. He starred also in the American TV show

Barney Miller.

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

END