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Inside U.S.'s Secret Airbase; Yahoo to Cut Employment by 15 Percent; Texas Reports First Human-to-Human Zika Virus Transmission; U.S. Presidential Candidates Head to New Hampshire. Aired 8:00a-9:00a ET

Aired February 03, 2016 - 08:00   ET

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


[08:00:36] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong, and welcome to News Stream.

Now there is a worrying development in the spread of the Zika virus. We'll look at how one person in the United States became infected.

CNN uncovers a secret U.S. airstrip in Syria as the military steps up its war against ISIS.

And a travel rush like no other: millions of people are racing to get home for Chinese new year, many already setback by major delays.

Now U.S. officials say a patient in Texas has contracted the Zika virus through human contact. Now, the patient became infected after having

sex with someone who recently returned from Venezuela.

And Ireland just reported its first two cases of Zika for the same reason other European nations have. Those infected had recently visited

countries where the virus is prevalent.

Now, Latin American nations are working to stem the Zika outbreak. Brazil's president declared war on the virus last week and health ministers

from th region hold closed-door meetings in Uruguay's capital to discuss how to combat it.

Now, Brazil is one of the worst hit nations in the outbreak. And Shasta Darlington joins us now live from Rio. Shasta, we have got new

information on how the disease is being transmitted. Is guidance on sexual transmission

reaching the people of Brazil?

SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, people are certainly talking about this new case that's just evolved that

indicates there could be sexually transmitted. But the doctors and the health officials that we have sat down with say that they really believe

that Brazil should be focused on the mosquito as the main form of transmission, this mosquito aedes aegypti is very widespread here. They

believe that the only way to really reign this in and bring it under control is fighting that mosquito with fumigation, with eliminating the

stagnant pools of water where it's breeding.

But they also point out -- you know, Brazil is gearing up for its annual Carnival celebrations. And people tend to let loose here. And they

say that this year, just like previous years, both male and female condoms will be handed out and that people need to use common sense. They need to

protect against against a variety of viruses. And of course they should take that into consideration.

But still, they believe the main form of transmission they need to be paying attention to is the mosquito. And this is important, here in

Brazil, you know they have detected up to a million and a half cases of Zika since Zika first appeared. Doctors have also linked it to a huge

spike in birth defects. In fact, new figures came out that show the number of suspected and confirmed cases of newborn microcephaly, these babies born

with very small heads and birth defects, well that number jumped almost 10 percent in just a week. We are looking at some 400 confirmed cases of

microcephaly and they're investigating another 3,700 suspected cases.

So, that people are taking it very seriously here, Kristie.

LU STOUT: Yeah, Brazil is stepping up its response. But as the virus spreads, in the words of the world health organization, explosively, can

Brazil host tourists now in the lead-up to the upcoming Olympic games?

DARLINGTON: You know, those are valid questions. And we have heard travel warnings really geared towards pregnant women and women whoa re

thinking about getting pregnant. And you hear Brazilian officials repeating that.

In the case of the Olympic committee, the local organizing committee, they insist that because the games will be held in the cooler winter month

of August, the mosquito population will already be dropping off. They say that athletes will be protected. They will have rooms with air-

conditioning. They can shut the door.

And also, they've got a plan, they say to start in March inspecting all of the Olympic venues on a daily basis to make sure again that those

pools of standing water are being eliminated.

You know, they are trying to reign in the hysteria and panic. They -- the local organizing committee -- didn't take that extra step and say that

pregnant women shouldn't come. They are sort of avoiding that.

But they insist that they are going to be prepared for this and while they can't guarantee that no one will get Zika, that all of the appropriate

steps and measures are being taken, Kristie.

[08:05:08] LU STOUT: All right, Shasta Darlintgon live from Rio Forest. Shasta, we appreciate the update there.

Now, the World Health Organization says 3 million to 4 million people in the Americas will be infected with Zika in the next year. So, you could

see most of South America is fighting an active outbreak.

The U.S. Centers for Disease Control is working to prevent that spread.

Now, Dr. Sanjay Gupta went inside its emergency operation center.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: I can tell you the last time

I was here at the CDC emergency operation center was for Ebola. But this is the place where they are coordinating the U.S. response to Zika. I've

got an exclusive look at what's happening inside. Let's take a look.

UNIDENTIFIED MALE: Welcome to day 12 of the IMS activation for Zika vius.

every morning this is the first place CDC director Tom Frieden will look to get the latest on the Zika virus.

TOM FRIEDEN, CDC DIRECTOR: The board tells us what's going on at a glance. We see outbreaks around the world, where they're happening. We

also look at the details of our response.

This is the Zika virus.

GUPTA: That's it right there.

FRIEDEN: This is what it looks like under the electron microscope.

GUPTA: Should we be scared of Zika, or is the emotional part of this with regard to pregnant women and microcephaly sort of making this

indiscriminately more -- having more impact?

FRIEDEN: Over and over again nature deals us wild cards. In the case of Zika, the real tragedy is a family that's had a child with microcephaly

and we know that that is devastating. And I think that's what's driving the concern.

GUPTA: I know we don't have complete information, but they may look to you, they may look to you for guidance on whether or not they should get

pregnant.

And we don't know what the likelihood is that they're going to have a child with microcephaly. But they want to have a baby.

FRIEDEN: We have teams on the ground now in both Puerto Rico and in Brazil. We are working with other countries as well to try to get that

information as soon as possible.

The fact is we can't invent data. We have to collect it and analyze it.

This guy, this is a nasty mosquito. This is...

GUPTA: Is this the one?

FRIEDEN: This is the one. This is aedes aegypti.

GUPTA: is there anything good about these guys?

FRIEDEN: Mosquitoes?

GUPTA: I mean, would you get rid of them? I mean, they have caused so much -- they cause more death than wars and natural disasters and

everything put together.

FRIEDEN: You know, the mosquito kills more people than any other animal on Earth.

GUPTA: Do you have any thoughts about possibly using DDT?

FRIEDEN: The fact is that DDT was widely used 50 years ago and virtually eliminated this mosquito from the Americas. But DDT was also

widely used in agriculture. It got into the environment, and it had serious problems in

the environment for many species.

It also remains in the body for a long time. So, we're looking at safer, more effective ways to kill mosquitoes.

If you're in an area with Zika, there are a lot of things you can do. Wear

mosquito repellent, use long sleeves, use clothing that has with Permethrin put into it. All of those things really work. And staying inside and

screen space and air-conditioned space, really can drastically reduce your risk of getting a mosquito bite.

GUPTA: But I think it's safe to say that this is the map that a lot of people in the United States are going to be paying attention to. Why?

Because these areas of yellow are the only places where this particular mosquito Dr. Frieden was talking about are known to exist.

And even better news, potentially, is that dengue fever, spread the same way by the same mosquito only exists really in south Texas and South

Florida.

Dr. Frieden believes Zika is likely to behave the same way, which is good news for most of the country. As we get more information, we'll bring

it to you.

Back to you for now.

(END VIDEOTAPE)

LU STOUT: Dr. Sanjay Gupta there.

Now, China's annual holiday travel frenzy is in full swing. Millions of people are trying to get home before Sunday when Lunar New Year

festivities kick off.

Now, this map is from Baidu. It shows travel around the southern city of Guangzhou.

Now, the train station there is one of the country's busiest and this was the scene on Tuesday.

Now that day alone, more than 170,000 passengers passed through the station. And believe it or not, travel in Guangzhou has yet to peak.

Now to get a sense of what it's like to be there, CNN's Alexandra Field is standing by at the railway station. She joins us now.

And Alexandra, what's the scene like there?

ALEXANDRA FIELD, CNN CORRESPONDENT: Well, Kristie, the good news is that while there is this incredibly massive steady people pouring through

here all day and through the hours of the night, they're actually moving. And that's a very good sign.

This is a holiday where we are going to see some 332 million train trips taken, more than 170,000 people passing through this station on a

daily basis now as we get ever closer to New Year's Eve and to the actual Chinese New Year Day on Monday.

So, look, people were expecting that they would have some delays. They were expecting that this wouldn't necessarily go smoothly.

The start of the week was a lot tougher than it's looking right now, though. You had more than 100,000 people who were stuck at this station

earlier this week. The number dropped to 50, then it was down to more like 30.

But when you are talking about the volume of travelers that you can see behind me, these numbers are certainly moving in a good direction.

The line to get to the trains, it is still blocks long, but at least, again, people are moving through it.

And for many people who we're talking to, this is really just the start of the journey. They maybe took a bus to get to the train station.

They're expecting to spend hours on the train, eight hour, according to some people, 15 hours according to some people. And then there could be

multiple legs of the trip after that, including a number of buses.

For a lot of the people who are passing through this train station, they work at the factories nearby. This is the only opportunity they have

all year long to get home, to see their parents, to see their children possibly, so even if they have to wait, they're committed to making this

trip, Kristie.

[08:10:44] LU STOUT: So, the situation there has indeed improved in comparison to what we saw over the weekend, over 100,000 people stuck

there.

What are Chinese officials saying about the overall travel crush, not just in Guangzhou, but in Shanghai, elsewhere across China? And what is

needed to ease the crunch?

FIELD: They are blaming the delays that we saw earlier in the week on weather in the north saying that that slowed the trains down from coming

from the north to the south. But they have taken some extra steps to try to accommodate all the people who were left stranded here. That meant that

they added more trains to the schedule here. That helped a bit. They also changed some of the procedures, like instead of sending trains to the depot

they left them on the platform, they inspected them there just to move things along a little more quickly.

They had to deal, though, with the growing crowds that are turning out at this station. So, they added some 6,000 officers. They brought them

out to help with the crowd control.

We haven't seen any issues out here. People are moving along pretty well.

They also asked people to take a look at the schedules, to hang back, to stay away for at least three hours before the train departed. And that

was meant to help the congestion.

We're talking to people here who say they are following along on their mobile apps. So, they do have a head's up. They have a warning if their

train is will be delayed. They don't necessarily need to come and wait here for hours at a time.

But Kristie we are talking to people who will wait here through the night, saying they just want to be here, they want to be ready when their

train does leave the station.

LU STOUT: All right, CNN's Alexandra Field, live on vacation for us at the Guangzhou train station. Thank you for that.

You're watching News Stream. And still to come on the program, turning to the next battleground in the race for the White House. Hillary

Clinton and Bernie Sanders get ready to answer questions in New Hampshire ahead of the

presidential primary there.

Plus, North Korea's closest ally speaks out as Pyongyang says it is getting

ready to launch a satellite.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. Now, North Korea's closest ally is expressing deep concern over North Korea's intention to launch a satellite

later this month.

Now Chian's foreign ministry spokesman said that he hopes North Korea can exercise restraint.

(BEGIN VIDEO CLIP)

LU KANG, CHINESE FOREIGN MINISTRY SPOKESMAN (through translator): We are aware of relevant reports and express our deep concern. China believes

that ultimately the DPRK should be entitled to the peaceful exploitation of space. But for now that right has been restricted by a UN security council

resolution. We hope the DPRK will exercise restraint and caution in its actions. It should not act in a way that may escalate tensions on the

Peninsula.

(END VIDEO CLIP)

LU STOUT: The U.S., South Korea and Japan fear the planned launch is a front for a ballistic missile tests.

Paula Hancocks reports now from Seoul.

(BEGIN VIDEOTAPE)

[08:15:05] PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: The U.S., South Korea and Japan have all asked North Korea not to carry out a

satellite launch, but it is very unlikely to have any impact.

North Korea has said that it has a window of the 8th to the 25th of February for this satellite launch any morning of that period. South Korea

has announced that during that time it has rerouted more than 40 flights due to security.

Now, we know that Pyongyang has consistently said that this is a peaceful space program, but others don't agree. They say that the same

type of rocket used for this satellite launch could be used to launch a long-range missile.

Washington says that this just underscores the ned for tough and comprehensive sanctions against North Korea. There is still no consensus

for these UN sanctions following that January 6 nuclear test.

Now, North Korea's confirmation of this upcoming launch does come at an interesting time. It came the same day as a top Chinese envoy arrived

in the country.

China has called on Pyongyang to show restraint, but it has also said that it believes ultimately Pyongyang should have the right for a peaceful

space program.

Now as for the timing of this window itself, there is some speculation it could be to mark the birthdate of the late leader Kim Jong-il. His

birthday on the 16th of February. And of course there are others that say this is just another reason for Kim Jong-un to have something to boast

about at the upcoming party congress in May, a very important occasion, the first of its kind in 36 years.

Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: Let's turn now to the latest in a string of mysterious disappearances surrounding Chinese dissidents.

Now, journalist Lee Xin (Ph), who you see here on the left, had gone missing in Thailand last month. Now, his wife now says it appears that he

is being held by Chinese authorities.

She says that she spoke to him on the phone earlier on Wednesday and was told that he went back to China voluntarily.

Now, she believes that he was speaking under duress.

Now before he vanished, Lee has said that he was pressured by authorities to spy on human rights advocates. He tried to seek asylum in

Iindia and then Thailand.

Now, U.S. presidential candidates are campaigning hard in New Hampshire ahead of next week's primary there, except republican hopeful

Donald Trump, who is expected to hold an event in Arkansas on Eednesday.

Now, the billionaire is leading the polls in New Hampshire, but he is fresh off a loss in Iowa, coming second to Ted Cruz.

Now Trump says skipping the last Republican debate may have cost him votes there.

(BEGIN VIDEO CLIP)

DONALD TRUMP, 2016 REPUBLICAN PRESIDENTIAL CANDIDATE: If I had it to do again I would have done the exact same thing. And the reason is, you

know why, because I raised $6 million for the vets in one hour. So if I took a second place

instead of first place and could give the vets $6 million, I'll do that all day long.

(END VIDEO CLIP)

LU STOUT: Now, on the Democratic side, Hillary Clinton and Bernie Sanders are to address New Hampshire voters in a CNN town hall hours from

now.

Now, Clinton is reportedly sending at least 150 staffers to the state after a razor-thin victory over sanders in Iowa.

But as our Joe Johns reports, she has a lot of work ahead of her.

(BEGIN VIDEOTAPE)

HILLARY CLINTON, FRM. U.S. SECRETARY OF STATE: I feel really great being back in New Hampshire after winning in Iowa and having a chance to

come here.

JOE JOHNS, CNN CORRESPONDENT: riding high on the narrowest victory in Iowa caucus history, Hillary Clinton taking the showdown over votes to New

Hampshire.

SEN. BERNIE SANDERS, (I) VERMONT: We fought Secretary Clinton to a virtual tie. And I don't even know yet, we have not even seen all of the

breakdowns of the election results.

JOHNS: Bernie Sanders feeling good about his odds in the Granite State where he has been polling ahead for months. His double digit lead

fueling the campaign's confidence.

SANDERS: If we can win here in New Hampshire -- let me rephrase it. When we win here in New Hampshire

JOHNS: While Clinton won the New Hampshire primary in 2008, the state has often supported neighboring politicians, possibly giving Sanders an

edge.

After nearly beating Hillary Clinton in Iowa, the self-proclaimed democratic

socialist says he raised a staggering sum, $3 million online in 24 hours, commanding a huge base of support among younger, newer voters.

Secretary Clinton vying for the chance to take back some of that support.

CLINTON: I'm going to have some work to do to reach out to young voters, and I intend to do that.

JOHNS: The stage is set for both candidates to make their final case before the New Hampshire primaries, facing tough questions from voters at

tonight's CNN town hall in Derry.

[08:20:05] CLINTON: I'm looking forward to every opportunity. Because I know that people here have a choice.

(END VIDEOTAPE)

LU STOUt: Joe Johns reporting there.

Now, before voters in New Hampshire cast their ballots, Hillary Clinton and Bernie Sanders will take part in a presidential town hall

there, as mentioned. They will face the people, answer their questions directly, and make their crucial closing arguments. It's happening

Thursday, 8:00 p.m. in Hong Kong, 9:00 p.m. Tokyo time only on CNN.

Now traditional remedies help create a beauty empire. We'll be speaking to the founder of the Indonesian company cashing in on natural

cosmetics.

(WEATHER REPORT)

(COMMERCIAL BREAK)

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

Stream.

An Indonesian entrepreneur introduced traditional herbal remedies into the cosmetics industry. And now she is in charge of one of the largest

beauty companies in Indonesia. Here is her story.

(BEGIN VIDEOTAPE)

LU STOUT: On the outskirts of Jakarta, sprawled across acres of farmland, grows the essence of real beauty, at least according to Martha

Tilaar.

It all began with Martha's own personal experience when 16 years into her marriage, doctors around the world told her she could not have a baby.

[08:25:14] MARTHA TILAAR, FOUNDER, MARTHA TILAAR GROUP: But my grandmother said, don't worry. I have something for you. The power of

herbs. I will teach you.

LU STOUT: And then at the age of 41, Martha had her first child. That encounter convinced her of the medicinal and beautifying qualities of

Indonesia's ancient herbal concoctions, made completely from natural ingredients, also known as Jamu (ph).

TILAAR: Beauty is an expression of the inner. We have the ingredients for the outside but also inside, that is the Jamu.

LU STOUT: In 1970, after studying the secrets of the ancient art from traditional shaman healers, she decided to bottle up the magic for the mass

Indonesian consumer market.

Today, the eponymous business has grown to consist of nine brands spanning herbal remedies, skincare, hair care, and cosmetics; 54 spa

branches across the country; and millions of dollars in profits and sales every year, making it

one of the biggest cosmetics countries in the country.

Martha Tilaar is also big across the ASEAN region, exporting to Malaysia, Brunei, Philippines, and Singapore as well as Hong Kong, Taiwan

and Japan. Even though the company is based on traditional practices, its methods are thoroughly modern.

Its competitive edge lies in its highly scientific approach.

BRYAN TILAAR, PRESIDENT DIRECTOR, MARTHA TILAAR GROUP: We spend like 5 percent of the net sales for research and development.

LU STOUT: And its ability to adapt to different consumer demands.

BRYAN TILAAR: We have the common culture among the ASEAN is almost the same. But still it's a challenge. We have to adapt. For instance, we

have cosmetics here in Indonesia, that's for cosmetic teenager. So, we cannot do it in Malaysia because balia (ph) in Malaysia is different

meaning.

LU STOUT: A growing global interest in more natural health remedies works in the group's favor as they aim for expansion around the rest of the

world.

BRYAN TILAAR: Five years from now, we will have to very dominant in the ASEAN and the regional market. And then after that, of course we have

to be really a global company.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And up next, a secret U.S. Air base on the cusp of the heartland of ISIS. Clarissa Ward has an

exclusive report on what her team has uncovered in Syria as the war there rages on.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:19] LU STOUT: And this just into CNN, two Israeli border police women have been wounded in a shooting and stabbing attack near the

Damascus gate in Jerusalem. Israeli police said that they were attacked by three terrorists who were killed. One of the women is critically wounded.

Now, Oren Liebermann joins us now live from Jerusalem with more. And Oren, a brutal attack at this historic city site. What more have you

learned?

OREN LIEBERMANN, CNN INTERNATIONAL CORRESPONDENT: Well, police and forensic teams on the scene here behind me. This is the scene of the

attack, just outside the Damascus gate of the old city of Jerusalem. We are about four months into a wave of attacks we've seen, although this

area, the Damascus gate, the old city had been fairly quiet in recent weeks until this afternoon's attacks.

Police say three Palestinian men, young men, 20, 20, and 21, came up to the

Damascus Gate armed with knives, a rifle and an explosive device.

They say one of those Palestinians showed an ID, while the other two began that attack with the knives and the rifle.

They say in that attack, two Israeli border policewomen were injured, one severely, one critically. They were taken to the hospital for

treatment.

And you can see the scene here behind me. Again, those scenes, those teams forensic and police at work here on the scene.

Now, as I mentioned, this is what we have seen in previous weeks a quieter area until this attack. Most of these attacks beginning back in

October and November were stabbing or ramming attacks with the car. Now we are seeing, we saw one earlier this week, another attack with a gun. That

is the concern here for Israeli security forces. Are there more attacks with guns. And one of the other unusual aspects of this attack is that it

was three men, three young Palestinian men attacking together, according to the information we're hearing here from police.

So, again, security teams on the scene here trying to figure out what happened here and how it happened and how, perhaps critically, how it

wasn't stopped, because these three Palestinians, police say, are from Jenin, which is in the northern West Bank, which means to get here they

would almost certainly have had to cross through a security checkpoint -- Kristie.

LU STOUT: All right. CNN's Oren Lieberman there reporting live at the scene of a stabbing and shooting attack in Jerusalem's old city. Many

thanks indeed for that update.

Now, Syrian peace talks are in danger of collapsing in Geneva as a new offensive pushes through northern Syria. Now, the opposition delegation

was meant to meet with the UN-Syria envoy on Tuesday. Instead, they canceled the meeting condemning what they called a massive acceleration of

Russian and regime military aggression on a Aleppo and Homs.

And it appears that this battle is gaining ground. Syrian state TV says government forces have taken a strategic area north of Aleppo with the

help of Russian air support.

Now, the United States is looking for ways to intensify the military campaign against ISIS in Syria. Now, the Pentagon has already announced

that some 50 special forces are operating there.

Now, recently published satellite photographs show an airstrip being extended in Kurdish controlled territory in northern Syria. The Pentagon

only says that U.S. forces in Syria are consistently looking for ways to increase efficiency.

Now, Clarissa Ward is the first journalist to visit the airfield.

(BEGIN VIDEOTAPE)

CLARISSA WARD, CNN INTERNATIONAL CORRESPONDENT: This place doesn't exist, according to the U.S. Defense Department. But behind that berm of

freshly dug earth, a small agricultural air strip is being turned into something very different -- a military air field just 100 miles from ISIS

positions.

Satellite photos show the work that has been done here in recent months. So you can see behind me, they are working to extend the runway so

that larger planes could land here. The advantage of this site is that it's well-secured inside Kurdish territory. So it could be used to supply U.S.

Special Forces deployed here in Syria.

He's coming now.

We were escorted away from the air field as soon as we were spotted -- told it was a military zone. It's another example of the U.S.' growing

military footprint in this remote corner of northern Syria and its deepening relationship with Syrian Kurdish fighters known as the YPG.

In an abandoned apartment building closer to the front line, we were given access to the YPG's joint operations room. It is a modest setup. 21-

year-old Dahan Hasaki (ph) and his colleagues talk to their men on the battlefield using newly-provided tablets, they pass on enemy locations to a

coalition command center from where air strikes can be launched.

Right now, this is the front line of Hasaka, he says. "Our comrades there have seen the movement of two enemy fighters and so we sent this

message along with their coordinates to the general command room."

When there are heavy clashes, the operations room moves to the front lines. Immediately after the strikes, Hasaki and his men rush in to make

sure that the right targets have been hit.

Who taught you how to use this? He tells us a group of foreigners and Americans trained his commanders who, in turn, trained him and his

comrades. In the skies and on the ground in Syria, the U.S. is deepening its commitment to the battle against ISIS.

Clarissa Ward, CNN, northern Syria

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come can, the struggling tech company Yahoo! makes a major announcement. Just how much

does it plan to reduce its workforce? Find out after the break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back now.

Asia markets have finished down with Japan's the Nikkei suffering the sharpest drop. Now, it closed with losses of 3 percent. Now, weak

earnings contributed to the fall. Investors are concerned about uncertainty over oil markets and slowing global growth.

Now, Yahoo! says it will lay off 15 percent of its workforce after reporting a huge loss last quarter. Its CEO Marissa Mayer says a leaner

company will help solve growth problems.

Now, the tech company announced more than $4 billion in losses for the last three months of 2015.

Now, despite facing difficulties during the past few years, one report says had more web traffic than Google and Facebook as recently as December

2013.

Yahoo! investors have not been shy in voicing their frustration about the CEO, Marissa Mayer. Among them, Eric Jackson, the managing director of

the hedge fund SpringOwl Asset Management, he's actually led the call for Mayer to go. And Jackson will be speaking with Maggie Lake, that's coming

up on World Business Today, that starts in about 20 minutes from now.

Now, for more on the story, let's go straight to Brian Stelzer right now who joins us live from New York.

And Brian, I mean, your thoughts on this. Is a leaner Yahoo the solution to its growth problems?

BRIAN STELTER, CNN CORRESPONDENT: It does makes sense the company is going to get smaller no matter what it does in the future. But I can't

help to look at some of these headlines and just think when is this come going to be put out of its misery.

I would ask a quick question, what does Yahoo do better than any other company? And it's hard to come up with an answer to that question right

now.

And that might be fundamentally what the problem is. Yes, the company is marginally profitable but it is not growing. It continues to plans to

shut off assets. And it seems like the current plan from CEO Marissa Mayer involves doing a little bit of everything.

She is pleading for patience, asking for more time, describing a complicated situation. She wants to continue to try to turn around the

company. At the same time, they are moving forward with a possible plan to spinoff some of their core assets. And at the same time, they are open to

offers to sell their core assets altogether.

We know that Verizon, other companies, might be eyeing Yahoo! might be interested in buying off parts of the company. It seems no matter what

happens the company is going to continue to get smaller and smaller and smaller. And this 15 percent reduction in the workforce is the last

indication of that.

[08:40:56] LU STOUT: And to what degree is Marissa Mayer to blame here? I mean, did she inherit an already imperiled Yahoo when she became

CEO a few years back, or did she help hasten the demise of Yahoo?

STELTER: She certain did inherit a very troubled company a number of years ago, a company where growth was not happening. She tried a number of

different thing, including a series of magazines, sort of digital magazines with splashy hires like Katie Couric and David Pogue. Those continue to be

operating, although some of them are probably going to be merged, and some of them might be shut down altogether.

It is an incredibly saturated, incredibly competitive environment for publishing. So, a company like Yahoo has a very, very hard time standing

out in what is -- every day a more competitive space.

And then of course there are assets like Tumblr and like Mail. And much of the $4.2 billion decline is that that's writing down those assets

saying they're less valuable than originally perceived to be.

So, it continues to be a stready stream of bad news for her. She even had to defend yesterday the company's spending on parties and on food for

employees, because of those activist investors you're talking about, who are increasingly dissatisfied with the company. She had to come out and

say we're not spending as much as you think we are on things like food.

But, companies like Google and Facebook, Yahoo's rivals, so-called rivals, don't get asked those questions, of course. This is a very complex

problem for Marissa Mayer. And now the activist investors, basically the ball is back in their court. We'll see what they decide to do next.

LU STOUT: All right. Brian Stelter joining us on Yahoo today, a far cry what it was back in

its heyday in the 1990s.

Brian Stelter, thank you.

Now, Microsoft has bought the company behind the popular keyboard app SwiftKey for $250

million. It may seem like a lot for a simple keyboard app, but SwiftKey is powered by sophisticated

software to guess what word you're going to type next.

And it is precisely this technology that Microsoft wants, saying that it matches their vision for anticipating what users want instead of simply

reacting.

And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere.

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