Return to Transcripts main page

NEWS STREAM

UN Aid Convoy Leaves Damascus; President Obama Undaunted at Calls to Block Supreme Court Nominees; Pope Visits Ciudad Juarez; India's Taxi Fabric Helps Personalize Mumbai's Taxis. Aired 8:00a-9:00a ET

Aired February 17, 2016 - 08:00   ET

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

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

Regional tensions: Asian nations widely condemn China over claims it has deployed missiles to a disputed island.

Thousands living in Syria's war-torn cities are about to receive desperately needed aid. We'll take you to the front line of this

humanitarian crisis.

And Apple versus the FBI where last year's San Bernardino terror attack has

these two organizations in conflict.

Now some of China's neighbors are calling for restraint in the region's latest territorial dispute. Taiwan and U.S. military officials

say Beijing has deployed surface-to-air missiles on Woody Island in the South China Sea.

Now, Beijing is not confirming the report, but insists the island in question is Chinese territory and that deployment of, quote, defense

facilities is reasonable.

Now, this all comes as U.S. President Barack Obama called for a halt to militarization of Asia's oceans at a meeting in California of southeast

Asian leaders.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We discussed the need for

tangible steps in the South China Sea to lower tensions including a halt to further

reclamation, new construction, and militarization of disputed areas.

Freedom of navigation must be upheld and lawful commerce should not be impeded. I reiterated that the United States will continue to fly, sail,

and operate wherever international law allows and we will support the right of all countries to do the same.

(END VIDEO CLIP)

LU STOUT: so, Ivan, more tension in the South China Sea. And today, the Parasol Islands, this island chain is in focus. Why is it under such

hot dispute?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, you have got Pentagon officials and Taiwanese defense officials telling CNN that China

appears to have placed surface-to-air missiles here on Woody Island. That's in the Parasol Islands. And that's claimed not only by China, but

Taiwan, and Vietnam. We are getting images from a satellite company that calls itself ISI. And what they show is what appears to be the deployment

of these weapons systems along this beach, a weapons system that has not to date really been publicly disclosed. And that's part of what is ramping up

concern.

Of course, China does -- has had a presence on this island for more than half a century. But it is moves like this that are raising concern

among all of the neighboring countries in the region.

LU STOUT: And China's claims in the South China Sea don't nd there at the Parasol Islands.

WATSON: No. If you take a look at the South China Sea here, all of these countries have competing claims over parts of it. But China way up

here is claiming maritime territory all the way down to here, including this area, the Spratly Islands here, which the Philippines claims as its

economic exclusion zone.

And even a 2-year-old can see it is much closer to the Philippines than to China.

Look at what China has been doing in this archipelago here of reefs and atolls. This is Fiery Cross in 2005. Look what China did in 10 years

with this impressive land reclamation program. They built an airstrip and they built an island what was basically submerged.

Now, the Chinese foreign ministry stands by its actions. Take a listen to what they had to say about this.

(BEGIN VIDEO CLIP)

WANG YI, CHINESE FOREIGN MINISTER (through translator): I hope that media

everywhere, including those in western countries and Australia, will turn your attention to the lighthouses that we have built on some of the islands

that we are using in South China Sea which are in operation now and they have been

very useful in ensuring the safety of the passing ships in those waters.

As for the limited and necessary self-defense facilities that China has built

on the islands and reefs, stationed by Chinese personnel, this is consist to self-preservation and self-protection that China is entitled to under

international law. So there should be no question about it.

(END VIDEO CLIP)

WATSON; Beijing arguing that all of this land reclamation basically comes town to self defense.

LU STOUT: China is building out ports, runways, entire islands in the South China Sea. And there is pushback from China's neighbors and the

United States. How are they challenging China's claims?

WATSON: Well, in the case of the Philippines, which is particularly incensed, because it claims this reef as its own territory, it has taken

China to court at The Hague under the United Nations convention for the law of the sea.

The thing is that China has refused to even go to court, arguing that the court has no jurisdiction over this issue here.

The U.S. has stepped in. And that's where things could get tricky, potentially, because the U.S. has been carrying out what it calls freedom

of navigation operations. It's been sending warplanes, sending U.S. navy ships into these areas to challenge China's claims to them. China is

calling those actions bad for stability in the region. So the stand-off continues.

[08:05:19] LU STOUT: Ivan Watson, thank you.

Now, countries throughout the region are keeping a cautious eye on what is happening. The Australian foreign minister, Julie Bishop, is in

Beijing for high-level meetings. And here's what she had to say earlier on Wednesday.

(BEGIN VIDEO CLIP)

JULIE BISHOP, AUSTRALIAN PRIME MINISTER: We have an interest in maintaining peace and stability in the South China Sea, as does China and

the other claimants. We urge restraint and we urge that all parties settle their differences peacefully.

(END VIDEO CLIP)

LU STOUT: Taiwan voiced a similar sentiment. It says, quote, the Taiwanese

defense calls on cooperation from all parties to safeguard the South China Sea's peace and stability and avoid any unilateral action that will

escalate tension.

Now, Japan took a stronger tone news saying this, quote, we have deep concerns over such actions, and we want to reemphasize that Japan cannot

accept it.

Now, China isn't the only country to develop islands in the disputed South China Sea and the territorial disputes have resulted in even more

interests in defense and surveillance aircraft.

Andrew Stevens is at the biggest airshow in Asia. He has more on what military contractors are focusing on now.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: This is the biggest aerospace and defense show in Asia. And normally it's the big commercial airline deals that generate all the headlines.

In fact, most of the business here, 70 percent about of all the exhibitors are in the aerospace and defense areas. And this year, as

tensions in the South China Sea continue to rise, there's been more and more talk about what is available in military hardware to counter what's

been happening in China.

Now, people I've been speaking to want to stay off the record, but they say the interest has been focusing on surveillance, on marine

surveillance. Now, big countries like Australia and even India are buying big sophisticated long-range surveillance aircraft like the P-8.

But the smaller countries, those in Southeast Asia, are showing more interest in the unmanned surveillance aircraft, the drones. I was speaking

to one senior defense contractor, and they were saying at least two southeast Asian

countries are looking at the drones as a way of monitoring what's going on in the

maritime activity in the South China Sea.

Another analyst I've been speaking to also says there has been interest in anti submarine equipment, submarine prosecution systems as he

termed it.

But all we can say for sure at this stage is that there has been a jump in defense budgets in many countries across this region. And that's

only likely to continue as tensions in the South China Sea continue to rise as well.

Andrew Stevens, the Singapore airshow.

(END VIDEOTAPE)

LU STOUT: Now, the UN human rights chief has raised concern over five missing Hong Kong book sellers. The men had been working for a publisher

specializing in books critical of China's Communist Party. And then they vanished. Beijing claims four of them are under investigation, while

another is assisting authorities.

Now, the case sparked protests in Hong Kong. The UN high commissioner says that he is also worried about China's crackdown on lawyers. Beijing

calls his remarks biased and misleading.

You're watching News Stream. And after the break, a live report from the Syrian capital where a convey of UN vehicles is setting to head into

besieged areas with desperately needed aid. We've got the details ahead.

Plus, a former prime minister of Thailand on trial for a controversial government program that critics say was engineered to get votes. What she

has to say about the charges against her.

(COMMERCIAL BREAK)

[08:10:45] LU STOUT: Welcome back.

Now, aid convoys in the Syrian capital are loaded and ready to go this hour. Barring any major disruptions, they will head into several besieged

areas in the coming hours with the express permission of the embattled government.

Now, Damascus cleared the humanitarian shipments after UN special envoy Staffan de Mistura held talks with Syria's foreign minister on

Tuesday.

In an exclusive interview with CNN's Fred Pleitgen, de Mistura tells us the upcoming aid delivery is a litmus test for recent diplomatic

efforts.

(BEGIN VIDEO CLIP)

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: So, the delivery of aid to besieged areas is very, very important. What do you think will

happen, what do you hope will happen, and how important is this?

STAFFAN DE MISTURA, UN SPECIAL ENVOY TO SYRIA: Let's start with the last point. It is not important. It is essentially, crucial for two

reasons. First, because there are now more than 400,000 people living in besieged areas, 400,000 Syrias, besieged both by the government, most of

it, but also by ISIL. Deir ez-Zor 200,000 of them. And by the opposition.

Secondly because the people have been literally starving. And when they are not starving, they are very close to it, even in Deir ez-Zor

they're starting suffering.

And three, because this is a test. It is a test on what was decided in Munich. In Munich, it was clearly a commitment by everyone to ensure

that this would be happening.

(END VIDEO CLIP)

LU STOUT: The UN special envoy speaking to Fred Pleitgen there.

Now, our senior international correspondent Fred Pleitgen is standing by right now. He is with the UN aid convoy waiting to depart. He joins us

now on the line from Damascus.

And Fred, victims of war there in Syria are waiting for this desperately needed aid. Can you tell us exactly where the aid will go. We

know it's going to depart in just the next hours ahead. Where will it go. And how will it reach its destination?

PLEITGEN: Hi, Kristie.

Yeah, there is actually some movement after hours of waiting for these aid convoys to start going. Actually in the past couple of minutes, one

aid convoy marked here from central Damascus, it was several of the lead vehicles. And they are going to merge with aid trucks both from the United

Nations and from the Syrian Arab Red Crescent. We expect more aid convoys to start moving in the next couple of minutes, in the next couple of hours

to try and deliver aid to the besieged areas here in this country.

And when you talk about which areas these deliveries are going to go to. It's basically two categories. One is areas that are besieged by

Syrian government troops. The little down of Madaya (ph) would probably be the most prominent example where of course people have been suffering a

great deal, where there was widespread starvation.

The aid convoy had actually left just a couple of minutes ago from here is bound for (inaudible) which is an outskirt of Damascus that has

also been (inaudible) where the UN says it hasn't delivered any aid for past two years.

Now, there's other (inaudible) categories, these areas that are besieged by the rebels. And there's two towns in (inaudible) province they

are supposed to be delivered today. They're called Kapraya (ph) and Foal (ph). And those are also in bad need of supplies as well.

So, this is an aid delivery requires both sides to do their part to allow these convoys through and to make all of that happen. And that's one

of the reasons why it is not only important -- of course from a (inaudible) but also politically as well. Because it would be one of the first times

that the parties involved here would agree on anything. And finally, of course, the one party that hasn't been a part of of this is ISIS.

LU STOUT: Yeah.

And can you give us more details on what kind of aid is on board these convoys? And also tell us more about any security guarantees that can make

sure these aid convoys, the teams that are along with these UN aid convoys will be able to reach the besieged areas safely.

PLEITGEN: Well, that's going to be the big test in the next couple of hours. Because it's one thing (inaudible) these aid convoys to get the

clearance to get going. It's another thing for them to actually be able to go to into these besieged areas. There's checkpoints to cross. There's

main entry checkpoints to these besieged areas that need to be crossed.

So, there is still a lot of areas where things could go wrong with these aid deliveries. And of course we also have to keep in mind that it's

combat zones that these convoys are going into. So, certainly there is an amount of risk that is involved.

Now, the UN envoy Staffan de Mistura says he has a deal to deliver these aid deliveries, both into the rebel-held areas or the areas besieged

by the rebels and the areas besieged by government forces as well. So, they hope that will be taken care of.

That doesn't mean everything works very smoothly then when it's on the ground.

And finally, what's in these convoys, it is a lot of food stocks, a lot of high energy foods, things like rice, things like beans, chickpeas,

things that will get people going.

One aid package that they deliver in boxes was set to be able to supply one family of five people for about a month. And you have several

tons of these packs on these convoys. Of course, some of areas are quite big.

And then on top of that, Kristie, you also have medical supplies that are being delivered as well, which of course are also very, very important

to the people that are in those besieged areas, Kristie.

[08:15:55] LU STOUT: All right, Fred Pleitgen there on the line from Damascus, we thank you for your thorough reporting. Fred Pleitgen there

reporting on the urgent need for aid in Syria and the immense challenge to deliver it safely.

Now, our senior international correspondent Nick Paton Walsh has been following the fast moving developments in northern Syria and how it could

dramatically alter the course of the war. You can find his report on our website. Just go to CNN.com/Syria and there you'll also find our complete

coverage of the country's now nearly five year civil war.

Now, Thailand's supposed prime minister now on trial has spoken with CNN. Now, she's been charged for creating a corrupt scheme to try and get

votes through a government program that supported the country's rice farmers. And the former prime minister sat down with Saima Mohsin for her

first TV interview since she was ousted from power.

(BEGIN VIDEOTAPE)

SAIMA MOHSIN, CNN INTERNATIONAL CORRESPONDENT: It's May 2014 and once again the military are back in charge in Thailand. Thousands of opposition

supporters had taken over the streets of the capital in this shutdown Bangkok protest making world headlines. They wanted the government and

then caretaker prime minister Yingluck Shinawatra out. And thanks to the army, the opposition got what it wanted.

The UN condemned the coup and the U.S. cut military aid to Thailand. Yingluck has been keeping a low profile since then, although even on a

simple trip to the supermarket it's obvious she still has supporters.

She chose to speak to CNN in her first TV interview since the coup.

What happened the day of the coup? When did you realize this is a coup happening? Can you talk me through that day?

YINGLUCK SHINAWATRA, FRM. THAI PRIME MINISTER (through translator): I was at home. Some people called to tell me there was a coup. At first we

couldn't believe it. So, we called to check and found out my cabinet members and some leaders of the opposition who were actually meeting to

find a solution for the nation had all been arrested.

MOHSIN: So you were invited to the military camp for a chat, to call it that? So, what was that like?

YINGLUCK SHINAWATRA (through translator): They told me to stay calm and they asked me not to meet with groups of people for a while. They

asked me not to post on Facebook.

MOHSIN: Do you feel you should have more of a right to speak out politically, have an opinion about the current situation in Thai politics?

SHINAWATRA (through translator): I'd like to ask for more freedom of speech for the general public so their voices can be heard by those in

power.

MOHSIN: Giving us her first TV interview in almost two years, Yingluck is clearly trying try raise her profile and not fade away into

Thailand's political history books. Her struggles, though, apart over yet.

The first female prime minister of Thailand is making regular court experiences, charged with negligence in connection with a controversial

government-run rice scheme, allegations she denies.

SHINAWATRA (through translator): I think this is totally bizarre. Its aim was to help people, the problems happened at execution level, but

instead I, as a policy maker, am being prosecuted in a criminal suit.

MOHSIN: She can't leave the country without permission from the court or government. Her brother, former prime minister Thaksin Shinawatra, was

also overthrown in a coup in 2006 and sentenced to two years in prison in absentia. He's living in self-imposed exile.

There is, of course, a risk that you might try to leave the country like your brother, Thaksin, did.

SHINAWATRA (through translator): I stand firm to fight my case. I have duties and responsibilities to fight on. All eyes are on me. I

assure you I have never thought of fleeing.

MOHSIN: She speaks cautiously and carefully under the watchful eye of her lawyers and no doubt as we broadcast the military.

Saima Mohsin, CNN, Bangkok, Thailand.

(END VIDEOTAPE)

[08:20:10] LU STOUT: Now, Pope Francis brought hope to some of the poorest and most violent parts of Mexico. And after the break, CNN will be

live at the next stop on the papal visit: the U.S.-Mexico border.

(WEATHER REPORT)

(COMMERCIAL BREAK)

LU STOUT: Wow, coming to you live from Hong Kong. Welcome back. You're watching News Stream.

Pope Francis is kicking off his final day in Mexico. He spent Tuesday encouraging communities to overcome resignation in one of the most gang-

infested regions in central Mexico.

(MUSIC)

LU STOUT: Pope Francis there greeting the faithful.

He urged them not to give in to hopelessness. He also criticized Mexican authorities saying that they are failing to provide opportunity for

the young.

Now, he is on his way to another region consumed by drug violence: The U.S.-Mexico border. Let's bring in Polo Sandoval who joins us now from

Ciudad Juarez. And Polo, today will be a day of deep symbolism for the pope and the people of Mexico. Tell us what we should expect to see.

POLO SANDOVAL, CNN CORRESPONDENT: Right, absolutely. Not only will this be Pope Francis's final stop during this Mexico tour, but it would

also be perhaps the most symbolic one. I'll tell you why that is. As soon as he arrives here at about noon eastern time, he is expected to head

straight to a place that really earned that reputation for being the most dangerous prison during the height of the Juarez violence in 2010.

I had an opportunity to speak to some of the people there, some of the folks who have run that prison today. They told me this overpopulation

bred a culture of violence. The inmates ran that facility.

Today it prepares to welcome the pope. Pope Francis will actually pray with about 700 inmates there along with their families. After that, a

couple of quick intermittent stops before he heads here to the U.S./Mexico border that you

mentioned a little while ago, Kristie. This is where he will hold a massive outdoor mass.

At least 215,000 people expected to be in attendance, some of which we actually saw spending the night in a line in what is a relatively cold

morning now, anxious to be able to secure that spot to see Pope Francis. And you mentioned the deep symbolism that comes with a visit here to

Juarez, Kristie, that's very important. During the actual mass itself, he is expected to actually break away and head to a temporary migrant memorial

that's been set up right next to the actual altar itself. He will pray there for the migrants that have crossed that boundary and those who sadly

did not make it.

And of course that moment is expected to renew focus on this issue of immigration. It is a pillar for the papacy of this pontiff, and also very

important issue in the United States, which is right next door.

So, clearly something that people are waiting to see the moment that he leaves Mexico in just a few moments and then makes his way here to the

u.S./Mexico border, Kristie.

[08:26:38] LU STOUT: And Polo, we are looking at live pictures of these anxious crowds that have been gathering there in Ciudad Juarez, as

you pointed out, many of them started to wade overnight, anxious to see the pontiff. Yesterday we saw Pope Francis literally pulled into the crowds.

Now, we know that this is a pope of the people. He prefers to directly engage and interact with people, but in light of what happened

yesterday, are there going to be extra security measures taken there in Ciudad Juarez?

SANDOVAL: Yeah, absolutely. We've already seen it almost on every street corner. We were here about two weeks ago. And the police presence

really is significantly higher today mainly obviously that event will be something that will be playing out in the minds of those individuals that

have been assigned to protect the holy father.

It was a fairly tense moment that unfolded there during his stop in Morelia in Mexico yesterday as one of these faithful followers perhaps got

too excited and actually pulled on the pontiff's arm.

What's interesting it was the first time that we saw that endearing smile leave the holy father's face. He was quite frustrated as he nearly

fell on top of a child. So, as a result you can expect to -- for authorities, for police, and of course the Vatican Swiss guard to be on

extra high alert being that this is a pope with whom you can expect the unexpected. He often likes to tear away and get closer to the people who

truly adore him, many of which are waiting anxiously to grab their spot here at the mass.

LU STOUT: That's right, on this final day of his visit to Mexico, many thanks indeed for your reporting. Polo Sandoval joining us live from

CNN, Juarez, Mexico.

Now, that special mass will be part of our extensive coverage of the pope's final day in Mexico. You can watch it right here CNN. And while in

Juarez, Pope Francis will get the chance to be serenaded by a famous group of singing nuns. That's thanks in part to a viral video that made them an

overnight sensation. You can see if for yourself on a special section of our website. Just go to cnn.com/popeinmexico.

You're watching News stream. And still ahead, the battle between Apple and U.S. federal investigators. Why the company says it will fight a

court order involving last year's San Bernardino shooting.

Plus, we are just three days away from the next primary in the race for the White House. And we'll tell you what the current president says

about Donald Trump and his chances of becoming commander-in-chief.

(COMMERCIAL BREAK)

(HEADLINES)

[08:32:47] LU STOUT: Now, Barack Obama has given his take on Donald Trump's run for president. And the message, the American people won't

elect him. But the Republican says that he is not offended by the criticism. Here is what they said.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I continue to believe Mr.

Trump will not be president. And the reason is because I have a lot of faith in the American people. And I think they recognize that being

president is a serious job. It's not hosting a talk show or a reality show. It's not promotion. It's not marketing. It's hard. And a lot of

people count on us getting it right.

DONALD TRUMP, 2016 REPUBLICAN PRESIDENTIAL CANDIDATE: This man has done such a bad job, he has set us back so far. And for him to say that

actually is a great compliment, if you want to know the truth.

You're lucky I didn't run last time when Romney ran, because you would have been a one-erm president.

(END VIDEO CLIP)

LU STOUT: Now, this back and forth, it comes as a new poll shows the Trump, he has a healthy lead now in South Carolina.

A CNN/ORC poll shows that 38 percent of likely voters support Donald Trump, putting him 16 points ahead of Ted Cruz.

Among Democrats, the same poll shows Hillary Clinton with a big lead over Bernie Sanders, 56 percent to 38 percent.

Now, CNN is hosting a two-day event ahead of the crucial South Carolina primary. All six presidential candidates will take part in a town

hall moderated by Anderson Cooper. You can tune in Thursday and Friday 7:00 p.m. in Hong Kong, 8:00 p.m. in Tokyo, only on CNN.

And now to a hot button issue that could sway the race to the White House: the nomination of a replacement for the late Supreme Court Justice

Antonin Scalia.

Now, President Obama has promised to name a nominee, but Republicans say the choice should be made by the next president. Chris Frates has

more.

(BEGIN VIDEOTAPE)

OBAMA: The constitution is pretty clear about what is supposed to happen now.

FRATES: President Obama again vowing to nominate a replacement for the late Supreme Court Justice Antonin Scalia, lashing out at Republicans whose

say the next president should fill the seat.

OBAMA: This will be the opportunity for senators to do their job. Your job doesn't stop until you're voted out or until your term expires.

FRATES: In his fierce comments about the fierce battle brewing over Scalia's replacement, Obama said the vacancy shouldn't get caught in the

crosshairs of partisan politics.

OBAMA: I intend to nominate somebody, to present them to the people, to present them to the Senate. I expect them to hold hearings. I expect

there to be a vote. I'm amused when I hear people who claim to be strict interpreters of the constitution suddenly reading into it a whole series of

provisions that are not there.

FRATES: Senate Judiciary Chairman Chuck Grassley telling Iowa radio he hasn't decided if his committee will hold confirmation hearings for the

president's nominee.

SEN. CHUCK GRASSLEY, (R) IOWA: I will would until the nominee is made before I make any decisions, in other words, take it a step at a time.

FRATES: But most Senate Republicans are toeing the party line, promising to delay the process until after the election.

SEN. JESS SESSIONS, (R) SENATE JUDICIARY COMMITTEE: There is no doubt that by following what Mitch McConnell, our leader, Republican leader has

said. That we are not going to bring this nominee up this year. He's doing exactly what Harry Reid would do if he were in the majority at this time.

HATCH: The Democrats are crying and moaning and groaning. It is highly hip critical. Literally we're in the middle of a voting campaign for

president of the United States, and I think it just makes sense to put this off for the next president.

(END VIDEOTAPE)

[08:36:36] LU STOUT: That was Chris Frates reporting there.

Now, the tech giant Apple is vowing to fight a U.S. court order involving the investigation into last year's deadly San Bernardino

shooting. A judge has ruled the company must help unlike the iPhone of shooter Saeed Farook.

Apple says the order would require it to create a new operating system that could potentially bypass the security of any iPhone. It warns such a

move would expose customers to a greater risk of attack.

Now, the FBI says it has tried and failed to retrieve the data on its own.

(BEGIN VIDEO CLIP)

JAMES COMEY, FBI DIRECTOR: It is a big problem for law enforcement armed with a search warrant when you find a device that can't be opened

even though the judge said there's probable cause to open it.

As I said, it affects our counterterrorism work. San Bernardino, a very important investigation to us. We still have one of those killer's

phones that we have not been able to open.

(END VIDEO CLIP)

LU STOUT: Now, Apple CEO Tim Cook issued a statement saying this, quote, while we believe the FBI's intentions are good, it would be wrong

for the government to force us to build a back door into our products. And ultimately

we fear that this demand would undermine the very freedoms and liberty our government is meant to protect.

You're watching News Stream. And still to come on the program, one of the traditions of the Lunar New Year went digital all thanks to the

messaging app WeChat. We'll tell you how popular it was to send out all those virtual red packets.

(BEGIN VIDEOTAPE)

LU STOUT: Welcome back.

Now an Indian startup company is giving a stunning makeover to Mumbai's black and yell taxis. It's called Taxi Fabric. Richard Quest

took a ride with its founder who says he wants to make cabs all over India stand out.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: This is Mumbai -- noisy, dusty, brilliantly lively, home to more than 21 million people, tens

of thousands of whom used these iconic black and yellow taxis for their daily commute.

Outside, these taxis all look pretty much the same. Go inside and you discover some have had a drastic makeover.

Now I'm starting to he see that the fabric is everywhere.

SANKET AYLANI,FOUNDER, TAXI FABRIC: Yeah. I almost puts you into this cocoon that you enter, you know. And that's why it is more welcoming

when people they get in.

QUEST: Taxi Fabric created this transformation, a startup that's festooned, colorful canvases, in dozens of camps. The themes tell the

story of Mumbai and take the rider on a journey.

This fabric shows truck art . It is all so deliciously simple and remarkably effective.

From the heavy rains of the monsoon to yoga and meditation and of course Bollywood.

The good, the bad and the beautiful.

AYLANI: Yeah, that's this taxi. It's the Bollywood sort of celebrities, and you know all the characters here. And these are movies

right from 1980s up until now.

QUEST: What began as an experiment has now grown. Even Coldplay shot their music video inside a cab.

Still, the entrepreneurs face the age-old problem. Are you a businessman or a designer?

AYLANI: I'm a designer.

QUEST: So you are a designer who thinks he has got a project that will make money.

AYLANI: Yes, absolutely.

QUEST: But you haven't worked out how to make money out of it yet.

AYLANI: We are working it out right now as we speak.

QUEST: More taxis, that's the answer, the took tooks (ph), the auto rickshaws. Taxi Fabric has grand ideas for expansion, to get into as many

of the rickshaws as they possibly can. And there are thousands of rickshaws across the

country, just think of what they could do.

Richard Quest, CNN, Mumbai.

(END VIDEOTAPE)

LU STOUT: Now, last week millions of people around the world celebrated the

Lunar New Year. And the Chinese tradition of red packets that went digital in China. In fact, around $32 billion virtual red packets were sent out

over the popular messaging app WeChat. It's even set up a game so friends and family can fight for bigger red packets.

But China warns officials to beware of of digital gift giving and WeChat's red envelopes are, and have been, monitored.

Now, before we go. I want to show this scene from right here in our news room just a few hours ago.

Yep, that's a lion right next to me. The so-called lion dance is an annual tradition here in the Hong Kong news room as we ring in the Lunar

New Year.

The ancient Chinese practice of lion dancing, an iconic fixture of the holiday. The custom involves the lion, operated by two dancers winding its

way around. Well, as you can see in our news room today. Entering every office along its path to spread good luck. Quite the start to the year of

the monkey right here in Hong Kong.

And that is News Stream. I'm Kristie Lu Stout. World Sport is next.

END