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Chinese Hackers Accused of Breaking into Taiwanese Political Party Website; The Battle for Fallujah; al Shabaab Claims Responsibility for Ambassador Hotel Attack; Mastermind of Garissa University Attack Confirmed Killed in U.S. Strike; Fnatic eSports Team Looks to Dominate New Sport. Aired 8:00a-9:00a ET

Aired June 02, 2016 - 08:00   ET

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


[08:00:45] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now, a picture of horror in Fallujah: reports that ISIS is using families as human shields as the Iraqi army tries to retake the city.

Now, accusations that Chinese hackers are ratcheting up tensions with Taiwan, even targeting political websites. The reason: to spy on its

visitors.

And it's not quite blood, sweat and tears, but we'll show you the incredible lengths esports players go to to form a dream team.

Reports that Iraqi forces have been stalled in the battle for Fallujah have been denied. The Iraqi prime minister has come out to say that the

offensive is still underway. He says Iraqi forces are looking for ways to break into the city, but ISIS is thought to be holding hundreds of people

as human shields and those who have escaped say that ISIS is killing men and boys who refuse to become fighters.

Now, ISIS has been putting up a fierce fight. Let's get some perspective from our senior international correspondent, Ben Wedeman. He

joins us live from Baghdad.

And Benm, we know that Iraqi troops, they have Fallujah surrounded. We are hearing these disturbing reports, ISIS using families as human

shields. we have a very dangerous standoff.

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Yes, and really it comes as no surprise. Fallujah, we understand there are 50,000 civilians

still inside the city, according to the UN 20,000 of them are children, some of whom are being pressed into fighting on behalf of ISIS as well.

And of course, the situation has been difficult for quite some time for the civilians inside the city.

The city has been essentially cut off from the rest of Iraq since last September as the Iraqi government prepared for this offensive. So food,

medicine and clean water have been in short supply for quite some time.

But listening to people who come out of it, who managed -- the few people who have managed to escape the city, they describe a dire situation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): Hunger, murder -- if people want to get out they will kill them. We feared for our lives as we

escaped. 550 men got out of the city, not counting families, children and women. Regardless, we're thankful to god.

(END VIDEO CLIP)

WEDEMAN: And of course, we did hear the Iraqi Prime Minister Haider al-Abady insist that the offensive is going according to schedule, but we

know they've run into difficulties. They've run into difficulties in terms of the level of resistance put up by ISIS, which has had two and a half

years to prepare for this battle. They've dug tunnels and trenches in and around the city. They sowed hundreds, its believed, IEDs and other booby

traps. And we've heard from commanders in the field that in addition to the problems with ISIS that the environment itself is very difficult.

There have been dust storms. A lot of the area around Fallujah is farmland. It's muddy. It's swampy in some areas. So it's going to be

tough going regardless of the level of resistance being put up by ISIS.

And the expectation is that despite the hopes of the Iraqi government that somehow they'd be able to declare victory at the beginning of the holy

month of Ramadan, which is just about a week away, this battle could go on for weeks and weeks -- Kristie.

LU STOUT: All right. Ben Wedeman reporting the latest in the battle for Fallujah. Thank you, Ben.

Now, ISIS is on the defensive in Syria as well. We have Kurdish and Arab

fighters backed by the U.S. They are fighting to take back the ISIS hub of Manbij (ph). The terror group uses it as a supply center for its de facto

capital of Raqqa. One aim of the operation is to keep ISIS fighters from crossing into Turkey.

And this is video you're not often going to see. This shows U.S. special forces embedded with Kurdish forces right on the doorstep of Raqqa.

Now, CNN has learned that the offensive is part of a strategy to isolate ISIS before retaking the city.

Now, the war in Syria has taken a huge toll on civilians, but for the first time humanitarian aid has finally reached a Damascus suburb. The

international Red Cross says people there have not had any supplies in four years. The area is being held by rebels and has been under siege since

2012.

Now, the U.S. is calling on Russia to use its influence in Damascus to get more aide in.

al Shabaab says it is behind a deadly siege on a popular hotel in the Somali capital Mogadishu. At least 13 people were killed in the attack

that ended early on Thursday. It all began when gunmen detonated a car packed with explosives at the gates of the Ambassador Hotel and stormed the

grounds.

Now, CNN's Robyn Kriel is following the latest developments from Nairobi. She joins us now live. And Robyn, the hotel siege, it was a very

deadly attack. What more have you learned? How did it unfold?

ROBYN KRIEL, CNN INTERNATIONAL CORRESPNODENT: Well, it began at about 5:45 p.m. yesterday evening in Mogadishu. So a very busy time along one of

Mogadishu's busiest roads. The Ambassador Hotel extremely popular, Kristie, with members of

parliament, with politicians, with Somali Diaspora, those would be the Somalis who have been away and kind come back with the recent sort of

prosperity, as it were, and relative security.

So this is how it happened: a large car bomb packed full of explosives. You can see the damage from the video -- the extent of the

damage that it did to that hotel once it blew up. And then gunmen entering into the hotel killing people one by one.

That was when Somali special forces were called in, we understand. It did take them quite a while to secure the hotel going floor by floor.

This is typical, al Shabaab, Kristie, they have hit a number of hotels for years now striking particularly at hotels with government officials,

security officials and any westerners that they can kill as well.

In fact, I saw a statistic yesterday that said they had struck -- at least 12 hotels or adjacent to hotels since 2015. We then know that they

were all eventually killed.

We're not sure why this attack occurred. It could possibly have something to do with the fact that Ramadan is just around the corner. al

Shabaab usually does step up its offensive during the month of Ramadan. Or perhaps it is linked to the fact that there have been a number of special

operations in conjunction with the United States, African Union who fight Shabaab and Somali army to try and take out a number of key al Shabaab

officials. And they have done so quite successfully.

LU STOUT: And separately, Robyn, the Somali government says its army killed two senior al Shabaab militants, including the mastermind of the

Garissa University attack in Kenya. What can you tell us about that?

KRIEL: Well, yes, Kenyans are extremely relieved that Mohamed Dulyadin, who has been known as the mastermind of that Garissa University

attack -- you'll remember it occurred back in 2015 just before Easter holiday, a number of Christian Garissa University students were preparing

to go on Easter break when gunmen entered their campus killing around 147 people. And ever since then, Dulyadin has been on the radar, really, both

for the Kenyan defense forces who are fighting across the border in Somalia as well as international forces.

So he was successfully killed in an air strike that was confirmed to us both by -- or rather just by the Somali government. We also know of an

even higher ranking al Shabaab official who was killed in a U.S. air strike. He was on the State Department's Rewards for Justice program.

There was a $5 million bounty on his head. He was killed, we believe, in an air strike just a couple of days ago, a U.S. air strike just a couple of days ago. He was the head of

Shabaab's planning and their Amniat (ph), which is really their hit squads. He was known to

be the right-hand man to Shabaab's number one leader Abu Ubaidah.

LU STOUT: All right. Robyn Kriel reporting on the war against al Shabaab. Many thanks indeed for that, Robyn.

Now, in France, a day of travel chaos there. Our cameras caught police firing tear gas at striking rail workers who stormed the tracks in

La Havre.

Now half of all rail service in the country has come to a stop as train workers joined the rolling strikes. They are angry over proposed

labor reforms that the government says are needed to boost hiring. Now, France has an unemployment rate of more than 10 percent.

CNN's Erin McLaughlin is covering the chaos in France. And she will have a live update from La Havre coming up on CNN Money with Maggie Lake,

that's starting in less than an hour from now.

Now, there were also protests in Sao Paulo, Brazil demanding the interim government take action. Protesters there they were outraged over

slashed federal funding for housing.

Now separately thousands in Sao Paulo and in Rio de Janeiro have taken to the streets since Friday after video of a gang rape of a 16-year-old

girl was posted online. All this just two months ahead of the Rio Olympic games.

Now, Rio offers stunning views from its skyline to its coastline, but beyond the picturesque white sand beaches, there is an alarming reality.

Garbage, sewage and debris lined the routes where Olympic teams are training right now.

Our senior international correspondent Ivan Watson reports.

(BEGIN VIDEOTAPE)

[08:10:52] IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Athletes training for peak performance. Members of the German Olympic sailing team preparing for what will be the first Olympic female

competition in this class of sailboat. On the surface, the view off the coast of the Olympic host city, Rio de Janeiro, pretty spectacular. But the

sailors are trying hard to stay out of the water.

ANIKA LORENZ, GERMAN OLYMPIC SAILOR: We don't want to swim in it.

WATSON: They say the bay here is terribly polluted.

(on camera): You hit garbage out here?

LORENZ: Yes.

VICTORIA JURCZOK, GERMAN OLYMPIC SAILOR: Yes.

WATSON: What kind of garbage?

LORENZ: A lot of plastic bags. But training partners of us also hit a chair or some wood.

WATSON: Furniture?

LORENZ: Yes.

WATSON (voice-over): This is the kind of stuff they're talking about.

(on camera): Look at this trail of garbage, flip-flops, tennis shoes, blocks of wood on the surface of the bay, very close to where the sailors

and athletes are training.

(voice-over): Rio has been struggling with its notoriously polluted waters for decades.

We caught up with the city's mayor at the opening of a brand-new sewage treatment plan. It claims to provide modern services to hundreds of

thousands of residents of Rio for the very first time.

(on camera): Do you think the water will be safe for the Olympic athletes?

EDUARDO PAES, MAYOR OF RIO DE JANEIRO: Yes. We had, first thing, because where in Guanabara Bay the sailing is going to happen, it's the

cleanest area of the bay, it's the entrance of Guanabara Bay.

WATSON (voice-over): But people who make a living in Rio's waters disagree with the mayor. We don't get far in Felipe Fernandez's (ph) boat

before the motor stalls, the propeller tangled in a plastic bag. Travel a little further and we find this.

(on camera): It smells awful here. And not just like mud at low tide, but something far more toxic. And the fishermen we're with say this is

basically raw sewage that has washed down out of the city. WATSON (voice- over): The untreated waste of millions of Rio's residents that do not have modern sanitation. It all drains into canals like this, where local

fishermen moor their boats.

(on camera): How is the fishing?

"We don't fish here," he says.

Impossible?

"Look at Rio now," he tells me. "We will host the Olympics. But we don't even have a basic sewage system."

The pollution here, one of the sad realities facing residents and now athletes at the upcoming Olympics.

But these German sailors say they're willing to risk these dirty waters for their shot at Olympic glory.

Ivan Watson, CNN, Rio de Janeiro.

(END VIDEOTAPE)

LU STOUT: Wow, a sad reality indeed.

You're watching News Stream. And coming up next, the website of a political party in Thailand is compromised. And we'll tell you who the

cyber crime group FireEye is behind it, and how the site is being used to spy on its users.

Plus, these gamers are the best at their skills and they are determined to win. They're part of Fanatic, one of the biggest clubs in

esports. And we got a look behind the scenes, next.

(COMMERCIAL BREAK)

[08:16:21] LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now, a Canadian reporter has been publicly berated by the Chinese foreign minister. Now, she had asked about China's human rights record,

the missing Hong Kong booksellers, and a Canadian who is charged with espionage. And the foreign minister's reaction and this outburst, it came

at the end of what he described as a positive trip to Canada. Take a listen.

(BEGIN VIDEO CLIP)

WANG YI, CHINESE FOREIGN MINISTER ( through translator): The question you raise is full of prejudice towards China and total arrogance. This is

totally unacceptable. Do you know that China has brought 600 million people above the poverty line? Do you know that China is now the world's

second largest economy with a GDP per capita of $8,000? If we can't protect human rights how can China achieve such great developments? Do you

know that China has written human rights protection into its constitution?

(END VIDEO CLIP)

LU STOUT: Chinese foreign minister Wang Yi there.

Now, the cyber crime group FireEye suspects that Chinese hackers are using this website belonging to a major political party in Taiwan to spy on

the site's visitors. Now, relations between Taiwan and China have been increasingly tense since the Democratic Progressive Party's leader won in a

landslide election earlier this year.

Now, I spoke with Brice Bolen, the Asia-Pacific chief technology officer for FireEye.

(BEGIN VIDEOTAPE)

BRYCE BOLAND, FIREEYE CHIEF TECHNOLOGY OFFICER FOR ASIA-PACIFIC: So what's happened here is we've discovered that the DPP's website was

actually compromised in what we call a strategic web compromise. The attack has compromised the website and redirected users, people who went to

that website to another site where they could profile those users and potentially target them with strategic delivery of malware to compromise

those users.

This is a strategic web compromise is a sort of attack that we see taking place when organizations want to target the people who would go to

that website.

And in the case of DPP, that's going to be journalists, it's going to be senior politicians and diplomats, anyone that's got an interest many the

DPP's transition into power.

LU STOUT: So who is behind this attack? Are Chinese state sponsored hackers responsible?

BOLAND: Well, we haven't attributed the exact attack actor at this stage, but there's two things

that we do know. One is that the tools that we used for profiling, a tool we call scan box, has been used in the past by Chinese actors in other

campaigns. And obviously we know that the transition of power in Taiwan is of very specific interest to China so we do suspect that one of the

Chinese-based attack groups is most likely behind this attack.

LU STOUT: Yeah, let's talk about motive. Why would this attack take place? Is this another example of perhaps real world geopolitical tension

playing out in cyber space?

BOLAND: Absolutely. This is clearly related to the transition of power that's taking place in Taiwan. It's of great interest and certainly

China is watching that and actively looking at different mechanisms of finding out about new policies that are being developed, trying to

understand the position of individual politicians and using that information to formulate a response to try to counter

Taiwan's move away from a pro-China stance.

LU STOUT: And I'm curious, have you managed to talk to Tsai Ing-wen's DPP party? Are they aware of this report? How are they reacting to it?

BOLAND: I've not been personally in contact with them, but I'm sure that they are aware of these attacks. There's been a number of other

attacks against the DPP both in the run up to the election and now subsequently to the election and lead up to the inauguration. And we can

expect to see continued activity targeting senior politicians and people involved in the new policies that are coming together as Taiwan changes its

government. And we expect to see more of these attacks against senior politicians in the future.

[08:20:21] LU STOUT: So Taiwan's public sector should brace themselves for more cyber attacks to come. What about the private sector

in Taiwan?

BOLAND: Well, Taiwan has actually experienced the highest level of cyber attacks in the world over the last nine months. In fact, in the

second half of last year, 60 percent of our customers in Taiwan experienced a targeted attack, at least one targeted attack, and that's significantly

higher than the global average.

And I think this reflects the standing of Taiwan as a powerhouse in terms of electronics and

intellectual property, but also the amount of activity that's taking place around the transition of power and the change of the political landscape

there.

(END VIDEOTAPE)

LU STOUT: That was Bryce Boland of FireEye there.

Now, NASA is using space age technology to fight air pollution in South Korea. Now, this is a persistent problem there. And the new effort,

it could help clear up where the dirty air is coming from.

Paula Hancocks explains.

(BEGIN VIDETAPE)

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: 0,600 hours, NASA prepares to fly. A beautiful sunrise masked by a lingering haze, one of

the reasons this DC-8 jet liner is here in South Korea.

This flying laboratory will find out what pollutants are here, who is causing them, and how they can be measured more accurately from space.

UNIDENTIFIED MALE: SA-173 (ph), ready for takeoff.

HANCOCKS: Eight hours flying the length and breadth of South Korea over cities, mountains and sea, collecting and analyzing data.

The equipment on this flight may be state of the art, but the plane itself isn't. It's almost half a century old. It first flew back in 1969,

I'm told, as part of the Al Italia (ph) fleet, but as you can see, NASA has completely refitted it to suit its purposes, 25 different instruments for

measuring pollution and 34 scientists.

All of them excited to be part of this mission.

UNIDENTIFIED MALE: Well, I don't think it's a discovery, but the air here is pretty dirty. We kind of knew that.

HANCOCKS: South Korea has long blamed China for much of its pollution, so called yellow dust is known to blow in from deserts in

Mongolia and northern China, picking up some pretty toxic hitchhikers along the way.

But fine dust particles, very detrimental to your health, may often originate closer to home.

UNIDENTIFIED MALE: The plane we're on today, we've seen some of the largest pollution that we've seen the entire campaign and most of that is

coming from local sources.

HANCOCKS: To capture some of this data, the plane has to fly low involving skillful flying from former air force pilots and some deft

negotiating with air traffic controllers, and a fair dose of turbulence.

I's not every day you fly just a few hundred feet over the center of a 10 million strong metropolis.

UNIDENIFIED FEMALE: It's great to look at things, you know, with satellites. And, you know, a lot of them are new and they're reporting

great data, but unless you actually go and measure -- you actually physically measure the atmosphere in situ, then, you know, you're very

limited.

HANCOCKS: South Korea ranked 173rd out of 180 countries in terms of air quality in a recent

study by Yale University, but this year's environmental performance index underlines the fact it is a global problem saying more than 3.5 billion

people, half of the world's population, live in nations with unsafe air quality.

As more than one scientist on board told me, at least South Korea is acknowledging there's a problem and opening up its air space to NASA and

its expertise.

Paula Hancocks, CNN, on board NASA DC-8 research jet over South Korea.

(END VIDEOTAPE)

LU STOUT: All this week we've been talking about esports.

Now, you heard from the gamers, you've seen the way they train, and today we show you the clubs they play for. Fanatic is one of the biggest

clubs in esports right now and sitting at the top means keeping the right team chemistry.

Don Riddell has more.

(BEGIN VIDEOTAPE)

DON RIDDELL, CNN WORLD SPORT: This year rugby becomes an Olympic sport. It's come a long way from the day it was organically invented by a

young English schoolboy called William Webb-Ellis, most sports have evolved into what they've done today, but esports is developing at an electric pace

and one of its leading figures actually passed up a career in rugby for the games of the future.

SAM MATHEWS, FOUNDER & CHAIRMAN, FANATIC ESPORTS TEAM: And I was playing under 21 on the Harlequins, which is a rugby team in England. And

I realized that I guess, you know, could do something which is my own choice and I guess that's what a lot of people who believe in esports, it's

not something that's like a hand me down from their parents, it's something that they're passionate about.

[08:25:04] RIDDELL: So in 2004, Mathews founded an esports team called Fnatic. He sold his car to get them to a tournament in Las Vegas

and the rest is history. Fanatic is now one of the leading teams in the world.

OLOF KAJBJER, WORLD'S BEST CS/GO PLAYER: When I was a Iid i wanted to be a professional football player, that was my big goal in life.

RIDDELL: But a knee injury at the age of 14 forced Olof to pursue another outlet for his competitive drive.

KAJBJER: I played like every night, anyways if I had I regular job. And this -- now it's my job so I -- it's like living the dream.

RIDDELL: Fnatic is a diverse sports club. Their team currently compete in five different titles, including Countersrike and League of

Legends.

One of the most important positions is behind the scene, the chief gaming officer.

MATHEWS: If you're familiar with football, there was a guy who ran Manchester United for decades, Alex Ferguson. We see Patrick Sattermon as

our Alex Ferguson.

PATRICK SATTERMON, CHIEF GAMING OFFICER, FNATIC: I deal with recruitment, analyze their opponents. It's also like diets for the

players, yeah, we're setting up an entire framework for how we can help our players reach the next tier.

RIDDELL: The players live together in gaming houses, playing and training for up to 12 hours a day. The training, competing and attending

publicity events, the players are paid a base salary. They also get to keep any prize money, that's their performance bonus, and many have their

own endorsement deals.

And in a digital industry with with zero barriers to opportunity and growth, there are a multitude of potential revenue streams.

WOUTER SLEUFFERS, CHIEF EXECUTIVE OFFICER, FNATIC: Well, there's obviously today, sponsorship, there's our apparel and merchandising, and

there are opportunities for teams or brands like Fnatic or brands to earn in game revenues. So we have launched our own gaming hardware brand, which

is actually very unique. We're the only team who is designing, manufacturing and distributing their very own gaming hardware.

RIDDELL: Many within the esports community believe that the players, the celebrities are more engaged with the fans than they are in any other

sport. After all, communication and integration are in the very DNA of the digital landscape.

When the French League of Legends player Yellow Star was resigned this year, a stylistic YouTube video trumpeting his return was watched hundreds

of thousands of times.

UNIDENTIFIED MALE: It's time to get back to work.

RIDDELL: Fnatics players compete in 75 different countries every year. More than 2 million fans follow and interact with them on social

media, many of whom proudly wear the team's branded clothing.

SATTERMON: My ambition is on Mondays, people go to work and they don't talk about football but they talk about esports and Fnatic And I

truly believe in that.

RIDDELL: It's a measure of Fnatics dominance that not everyone was cheering when they reached two finals at the Intel Masters in Poland, going

all the way to the title for Counterstrike. They're already regarded like Manchester United or the L.A. Lakers in their pomp. Fnatic has a loyal fan

base, but some others are ready to see them toppled.

The team isn't worried about that, though. They believe that the sky is thelimit in esports, and they are at the very forefront of a sporting

revolution.

Don Riddell, CNN.

(END VIDEOTAPE)

LU STOUT: Okay. So what do competitive gamers play? Well, the most popular games are MOBAs, which stands for Multiplayer Online Battle Arenas.

League of Legends pits two teams of five players against each other. Think of it as a combination of chess and capture the flag.

Each character has special roles to play and everyone has to work together to take over the enemy base.

Now, MOBAs require team work. But other games pit players against each other one on one.

In StarCraft II, players battle by controlling entire armies. This is a game of strategy. But quick reflexes are needed here. Pro players can

carry out ten actions in the game per second.

Now, another popular genre, first-person shooters. In Counterstrike, players team up to complete objectives while shooting anyone who gets in

their way.

Now, it was first released back in 1999 and now it's one of the most popular games in esports.

And finally, there's Street Fighter. Now, this classic is one of a number of fighting games that still attract audience. It's a link back to

the early days of competitive gaming when people would crowd arcades to watch top players. And now you can watch it all online.

And that change shows just how far esports has come. But what's the next step for competitive gaming? Well, tomorrow we'll look at how

technology can transform esports even further.

Now, you're watching News Stream, and just ahead the U.S. is taking aim at North Korea by

trying to cripple its cash flow from around the world.

(COMMERCIAL BREAK)

(HEADLINES)

[08:33:39] LU STOUT: Now, the battle against ISIS will be a key focus for the next U.S. president. The brutality of ISIS is sickening.

Now, horrific killings, the brainwashing of children, and now selling sex slaves online. Now, Arwa Damon spoke with one man who is trying to

help those victims.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The bidding opens at $9,000. The item for sale, an 11-year-old Yazidi girl,

advertised as beautiful, hard-working, virgin.

The screen grab is one of many that Abdullah Shven (ph) keeps in his phone. He was a trade businessman with trade connections to Syria. When his

family members were among the thousands captured, he began plotting to save them.

ABDULLAH SHIEM (ph), YAZIDI RESCUER (through translation): No government or expert trained us. We learned to do it and gained

experience.

DAMON: Now, he has people who troll these ISIS malls on social media chats, looking for any hint of victims' whereabouts.

(on camera): This is one of the sites or the ways that the bartering and trading for some of the Yazidi captives happens. In this particular

case, the girl is being offered up for $10,000.

(voice-over): And that, a location, is a vital clue.

This is video from his most recent rescue, of a woman and her two sons. It took three months to pull off. It's moments like these that make

it all worth it.

So far, he says, his network has freed 240 Yazidis.

He recruited cigarette smugglers who were sneaking produce in and out of ISIS territory. Sometimes the smugglers helped track the captives down.

Sometimes the captives, like his sister, managed to reach out.

[08:35:40] SHIEM (ph) (through translation): There was a wife of an ISIS fighter, who gave her a phone and said, maybe you will be able to save

yourself.

DAMON: Abdullah was able to get her out, along with her youngest son, 5-year-old Saif.

SHIEM (ph): When Saif first got out, he was like a wild thing. We couldn't really talk to him. He was still applying to ISIS mentality, that

everyone is the enemy.

DAMON: He is still not entirely recovered from the brainwashing.

SHIEM (ph): (through translation): They put this in their heads that there is nothing better than a gun.

DAMON: It's the older boys going through ISIS indoctrination that Abdullah is most worried about, concerned they're turning into time bombs

that will kill their own people. World powers, he said, have an obligation to save them and the other slaves.

Arwa Damon, CNN, Northern Iraq.

(END VIDEOTAPE)

LU STOUT: A powerful report from Arwa Damon. And you don't want to miss the next one. She will be investigating further, ISIS atrocities and

the suffering of Yazidi women under the militant's rule. ISIS in Iraq airs Saturday, 1:30 p.m. Hong Kong time only on CNN.

Now South Korea says it welcomes Washington's latest move to further isolate North Korea. The U.S. accuses the north of money laundering and now

is taking steps to make it illegal for American banks to do business with North Korean financial institutions.

Now, let's get the latest now from Washington, our global affairs correspondent Elise Labott joins us live from there.

Elise, thank you so much for joining us.

And tell us more exactly how the is the U.S. cracking down on North Korea as a hub for money laundering?

ELISE LABOTT, CNN CORRESPONDENT: Well, Kristie, it has designated North Korea as a country of primary money laundering concerns. Now,

usually the U.S. will designate some banks, perhaps some state banks, but to designate a whole nation is really significant and it's already illegal

for U.S. banks to do business with North Korean financial institutions, but what they're doing is they're placing additional safeguards and due

diligence measures in place.

So, a lot of times what North Korea will do, because sanctions are already in place, is they'll use correspondent or front accounts to put

money to try and get some money laundering through those type of ways through banks.

So now the U.S. is cracking down on these correspondent or third party accounts and also cracking down on the use of North Korea using third party

banks. So really any country that wants to do -- their banks that want to do business with the U.S. financial institutions will have to make a

choice. Do they want to do business with the U.S. or North Korea? And the choice the U.S. feels is pretty obvious.

LU STOUT: Yeah, and the U.S. is taking major action here.

But it does raise the question, is it going to work? I mean, we know that international sanctions from failed to deter North Korea and its

ongoing missile test. There is that failed test earlier this week.

So how much confidence is there that this action will deter North Korea's illegal financial activities?

LABOTT: Well, I think the U.S. feels that cracking down on the finances is really the way to go after the regime. You've seen all these

missile tests and nuclear tests, obviously the North KOrean program is advancing and the U.S. feels that it's using these counterfeit measures

because there are so many sanctions in place to try and finance it.

So, in February you remember that the President Obama signed some additional measures to crack down on North Korean financial institutions,

already some very tough measures in place in terms of exports from the United Nations security council resolution, exports of North Korean coal

prohibiting member states from buying certain exports from North Korea.

So I feel that the U.S. really thinks that cracking down on the financing of the regime both legal analysts -- it is going to be the way to

dry up that cash flow so that North Korea can't keep funding its nuclear and missile programs.

LU STOUT: Elise Labott reporting live from Washington for us. Thank you, Elise. Take care.

Now, the search for a missing Japanese boy that it is now focused within this three kilometer radius after five days of finding nothing.

Now, the 7-year-old boy was left alone in the woods by his parents as a form of punishment and they reported the boy missing after they went back

and they couldn't find him.

The Japanese military is helping with the search.

Now most people think of artificial intelligence as logical, unemotional programs suited for breaking down and solving complex problems.

So, what would a work of art, a song, written by an AI sound like? We'll play it for you next.

(COMMERCIAL BREAK)

[08:41:56] LU STOUT: Welcome back.

Now, we have brought you stories before about Google's artificial intelligence, its Alpha Go program can play go, this highly strategic game.

And in fact it beat the human world champion earlier this year, but can AI do something creative and more artistic? Well, listen to this.

(MUSIC)

LU STOUT: All right, a little bit 80s techno, not bad, though. That song was written by Google's Magenta's AI program. The drum beats were --

that was later added by humans, but Magenta composed the tune after being given just four notes.

Google says that Magenta is designed to learn and to create art and music.

Now, a $15,000 Lego masterpiece that took three days to build has been completely and utterly destroyed by a little boy in just a matter of

seconds.

Now, here is what it looked like before the disaster -- a statue of a fox from the Disney film Zootopia, but within an hour of going on display

in southern China, a young boy thought to be just four or five years old, he knocked it over.

Now, reports say his parents apologized and the artist did not ask them to pay for the damage.

Good on him.

Now, and that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. World Sport with Christina Macfarlane is next.

END