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Tyhpoon Nida Closes in on Hong Kong; A Look At Rio Infrastructure Ahead of Olympics; South Korea Designs Zika-resistent Olympic Suits; Uber Makes Deal with Chinese Ride-Sharing Service. Aired 8-9a ET

Aired August 01, 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, CNN HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now, just four days to go and the games are coming, but will Rio be ready?

Typhoon Nida closes in on Hong Kong, bringing even more rain to southern China.

And taking on Trump, a Muslim American family whose son was killed in Iraq step up their verbal battle with the Republican candidates.

In the run-up to Rio there have been blame games, even some game faces, but finally the games themselves will begin this week. And for all the

concerns about the host city and its readiness, the excitement is impossible to ignore. After Friday's opening ceremony, more than 10,000

athletes will compete for almost 5,000 medals and the chance to make sporting history. This is the first time the games have ever been held in

South America.

Now none of the incredible talent and sportsmanship that will be on display can happen without the display itself. Now, getting the games'

infrastructure ready on time has been one of the biggest concerns.

And Shasta Darlington takes a look at one piece of the puzzle: transportation.

(BEGIN VIDEOTAPE)

SHASTA DARLINGTON, CNN CORRESPONDENT: It's a beautiful day. So we're going to head to some Olympic stadiums and test out the public transportation

system, which is coming together at the very last minute.

Olympic transport tickets cost about $49 for a week, or $8 for a one- day card. So for the first leg we're taking this journey underground on the

metro. And here we go. So we're going to head up to the escalator and up to the train that will be our next leg of this journey.

So there are no signs yet for the Olympic parks. A tourist is going to be pretty lost. They would probably head over here to the information booth.

So we'll head over here. So let's ask security if they know. Excuse me, Olympic park? Olympic Park?

Part two, getting on the train.

UNIDENTIFIED FEMALE: Will depart from platform 8.

DARLINGTON: So this used to be the can of sardines train. Obviously it's looking better now. They've put more cars on the tracks, especially as we

get close to the Olympics, and more security.

So if you're coming to see track and field, this is your stop. And let's see if, if you calculate the time to switch trains, it's about 50 minutes

from your hotel door to right here at the stadium.

If you continue on to the Deodoro Park for BMX or Rugby, give yourself a good hour and 15 minutes from the hotel. You have just seen an equestrian

even or maybe a canoe slalom, and you want to get to the main Olympic Park, you're going to take this dedicated bus line.

Right now it's empty. In fact, it looks like they're still finishing it. But once the Olympics starts, this is going to be a really important

trajectory. It's going to connect the Olympic Park right there -- the main one to all of the hotels on Rio's south side.

The good news is this has its own exclusive lane. So hopefully we won't be sitting in traffic. That was fast, comfortable, and air conditioned. I'd be

getting on the metro now, but the new line won't be open until four days before the Olympics start. For now -- stuck in traffic.

Shasta Darlington, CNN, Rio de Janeiro.

(END VIDEOTAPE)

LU STOUT: And now just four days to go until the games begin. So will Rio be ready? Let's bring in CNN Amanda DAvies. She joins us live from the

city. And Amanda, we remember that Rio did stage that successful World Cup two years ago. So can they do it again with the Olympic games, despite all

the challenges?

AMANDA DAVIES, CNN WORLD SPORT: that's the big question, Kristie. A lot has happened here in Brazil. And in Rio since the two years since that

World Cup was held. In political and economic terms, it's been very, very interesting for me. This is the first time I have been back here since

that World Cup, which was deemed such a success on the international stage.

But of course, a World Cup is a tournament that is hosted across an entire country, an Olympic Games is focused on one particular city: that city here

is Rio de janeiro, a city which is already under incredible stresses and strains with the socioeconomic situation and, of course, the political

unrest that we have here in Brazil, as well.

So, they're not making life easy for themselves in terms of those four clusters that Shasta was

talking about. It means that the transportation, the logistics, are particularly difficult. But as Shasta mentioned that metro line, line

number 4, that has become so infamous, because it has been heralded to such a degree as a great legacy project of this games, it was meant to open in

July, that has opened as of today, so members of the media, people with tickets to events have been allowed to use that for the first time.

And it's very interesting walking around, as you would expect, with four days to go before the start of the games, there are lots of last-minute

finishing touches, very much still taking place.

Hey, I was in Sochi in 2014, that was no different then. Now, London wasn't any different. Athens was no different, either in 2004. This is

what happens in an Olympic games. And the media do, of course, pick up on the negative headlines. We had the stories of the Australian team with

their concerns over the safety at the athletes' village. They moved in three

days late.

There's been reports that the main access ramp at the sailing venue collapsed on Saturday where the boats go in and out of the water. But

we've had reassurances that that will be completed for August 8 when the sailing starts taking place. But, on the whole you can see that this is a

city that is starting to get excited about the prospect of an Olympics that are taking

place. The restaurant we were at last night, the waiters were taking photos of the fact that their restaurant was so busy. There was our CNN

crew. There was another Dutch TV crew sitting just across from us.

The volunteers are all very invested in what's going on. They know what's going on. You ask them a question and they have an answer. They can point

you in the right direction.

It is -- this is the big unknown, isn't it? These last few days. Is will the tickets be sold? There are still a lot to be sold. But the athletes

are starting to give what they've seen a thumbs up and it looks spectacular. There's no doubt that on television the pictures that will be

beamed across the world will be difficult to argue with.

LU STOUT: Yeah, absolutely. And that sense of excitement building up that's good to hear. Amanda Davies reporting live for us from Rio thank

you.

Now Hong Kong, where I'm broadcasting from right now, is bracing for a direct hit from

Typhoon Nida one of the region's strongest storms this year. Now, it is likely to make landfall right here in the coming hours bringing heavy rain

and gale force winds. More than 120 flights have been canceled.

Now, Nida already cut a path of destruction through the Philippines.

This was the scene in the country's northwest. As you can see in this video, the storm was packing quite the punch there.

Now, our meteorologist Chad Myers has been tracking the storm from the world weather center. He joins us now live. And Chad, Typhoon Nida is

going to be hitting hong kong and southern China tonight. How is it going to be developing in the coming hours?

CHAD MYERS, CNN METEOROLOGIST: In fact, you're probably less than six hours away from the worst of it. So, it is now getting very close, still

gaining a little bit of strength, about 130 kilometers per hour with likely a gust to 160. But that should be it.

Now you think of Hong Kong as a very technologically advanced city and a lot of that is going to be able to take this storm no problem, but there

will be areas where 130 kilometers per hour wind will take down a lot of things.

There goes the storm, a direct hit right on top of it. That means the eye should likely go over Hong Kong or at least very close. Possibly, a few

kilometers north, but that shouldn't matter. There will be some storm surge in the harbor. There will be waves, almost 15 meters high,

especially north and east of the city. There will be about 100, almost 200 millimeters of rainfall from it, possibly causing some minor flooding.

I don't think this was a huge floodmaker, but maybe the storm surge could be the bigger floodmaker there. Thinking about all the harbors and bays

and all the places that this storm water could go. Hong Kong right there, with the population density right under where the winds will be the

strongest.

Now as the storm hits land, it is going to die, because that's what they do -- storms, typhoons, cyclones, hurricanes, all the same thing, they need

water. They need hot water to live, and as soon as this gets out of the warm water of the ocean, things will be completely better.

But for now, you have six hours before the worst starts. There will be significant bands of rain coming in. One just missed Hong Kong, with now a

lot of lightning to the southwest of Hong Kong City.

But now there's more in the way of these bands coming in, Kristie, and I think we'll probably see them all night long.

LU STOUT: So Nida will eventually weaken, but there will be storm surge, so to all our viewers watching from southern China, from Hong Kong, stay

away from the water front, do take care.

And Chad while we have you, you have reported extensively, and we've talked about this, just

the deadly flooding.

MYERS: Yes.

LU STOUT: That's been happening across China, what is the arrival of this typhoon, Nida, what does it mean for a country that has already been

saturated with so much water?

MYERS: Well, the good news is where this is making landfall. Most of the flooding was up

here for one event, and then here for the second event. And so this should be slightly south of where the area is so very saturated.

But you know, think about how the storms circulates like this as it spins like this, there may

be heavy, heavy bands of I don't know, a third of a meter of rain, maybe 300 millimeters of rain, in some of these areas that have been flooded

already. i just think this is a near-miss to really put down a lot of rain in those flooded areas. That's great news.

[08:11:16] LU STOUT: All right, Chad Myers there reporting. Thank you so much, Chad. And we'll talk again soon.

Now let's go to Syria where Russia says ground fire brought down one of its helicopters returning from an aid delivery mission in Aleppo. Now, the

Kremlin says all five crew members were killed when the chopper was shot down over Idlib Province.

Nearby fighting is raging on eastern Aleppo as rebels try to break a siege by President Bashar al-Assad's forces. All this just one day after

longtime military ally Russia said that it was working with Syria to open up four more humanitarian corridors in Aleppo.

Now, Ian Lee has been tracking developments from Beirut. He joins us now. And Ian, Syria and Russia again saying that they're going to open these

corridors, more corridors opening. Are families using these corridors to leave Aleppo?

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Well that is the question, Kristie. Hearing from the Syrians, and Syrian state media and also Russian

state media, they're saying that 169 civilians have fled from Aleppo, including 69 fighters who laid down their arms for what the amnesty that

the Syrian government says that they will receive if they do so.

But you have to look at Aleppo and the part that is besieged. You have 200,000 to 300,000 people in that part of Aleppo. So, talking to people

inside that area, they're saying that they just frankly don't trust the government to uphold their promise to allow people to leave and not have

any sort of repercussions or ramifications once they leave.

They don't trust the government, and this is from past sort of incidents like this where the government has opened up corridors in other cities.

Amnesty International as well as the Syrian Observatory for Human Rights has reported in these incidents that men and

women were separated and the men were then never heard of again.

So, people inside the city of Aleppo, that's besieged, do not trust the government. At least that's what we're hearing and what they're saying is

when they go to these corridors, they're not seeing any signs that anyone's crossing over.

LU STOUT: Aleppo has been under siege for an extended period of time here. Who still remains inside the city? And what are living conditions like for

them?

LEE: Well, living conditions are quite bleak. If you go to a market, there's no food. There's no fruit, vegetables or really any food products.

The shelves are bare.

Also, petroleum is running low and that's crucial for ambulances, for the generators that operate at hospitals, they're running dangerously low.

So there is a real need for humanitarian aid.

Now, the rebel group Ahrar e-Shem (ph) has launched an offensive, they say is to break the siege on Aleppo. That front line is about 20 kilometers,

16 miles long. They've been planning it they say for 20 days.

There's a lot of heavy fighting. They have two fronts from what it looks like one in the northern part of Aleppo, one in the southern part to try to

get to that besieged part.

But so far talking to those commanders on the ground it doesn't seem like, or at least they're saying they haven't been able to break that siege. But

right now that is the main concentration of the fighting is to break that siege.

LU STOUT: All right, Ian Lee reporting for us. Thank you, Ian.

You're watching News Stream. And still to come, Uber is switching up its tactics in China and

turning its business rival into a business partner. We have more on the deal coming up.

Plus, Donald Trump's latest war of words this time with the parents of a fallen American soldier. What the family is now saying about their feud

with the U.S. presidential candidate.

(COMMERCIAL BREAK)

[08:17:22] LU STOUT: Coming to you live from Hong Kong, ahead of the storm. We're awaiting the arrival of Typhoon Nida. You're watching News

Stream.

Now, Uber is joining forces with this Chinese rival, the ride hailing company Didi Chuxing. Now, both companies have poured billions into China

in this effort to dominate this massive market. But Uber's CEO pointed out in a Facebook post that both companies have yet to turn a profit there.

Let's get more on the story and bring in Andrew Stevens for more. So, why did Uber make this move?

ANDREW STEVENS, CNN MONEY: Well, as the boss says they weren't making any money,

Kristie, and they were losing a lot. We don't know exactly how much, but a billion dollars a year seems to be the industry figure people have been

talking about. That would be $2 billion for Uber.

Didi has also been losing money as well. They have been throwing discounts not only as the

passengers, but also the drivers just trying to get market share. And it was one of those situations which just couldn't continue. It was a war of

attrition. Didi, as you know, it's backed by AliBaba. Apple put in a billion dollars. It had big pockets. So basically, in the end it won.

But I should say that Uber doesn't walk away empty handed. They end up with nearly 20 percent of the expanding company. That's worth about $35

billion.

So that's a $7 billion investment in a massively growing market.

LU STOUT: Yeah, it's interesting to see consolidation happening in this market, and it happening in China, of course, where billions have been

spent there.

But I've got to ask, from the consumer's point of view, you know, for people who do travel often, go into Mainland China, rely on the Uber

service, what's going to happen for them when they use the ride hailing service?

STEVENS: Well, if you think about it, what we are looking at now potentially is a monopoly. And monopolies tend to charge as much as they

possibly can, because there's no competition. So that is not obviously going to be good for the consumer.

The consumers have been getting a great ride, so to speak, because they've been trying to get the marketshare. Once the competition is gone, those

prices will increase. The question is by how much, and whether they'll increase fairly or not.

The other thing, too, though, as a consumer if you and I are there, we will still use the Uber app. We will still be picked up with ostensibly an Uber

driver. So the operations at the front end will look the same, it's just that it will now be part of Didi.

LU STOUT: Good to know. But the fare increases, that's something to expect.

STEVENS: Absolutely.

LU STOUT: All right, Andrew Stevens there, thank you very much.

OK, now that story that we mentioned earlier before the break, the parents of a fallen Muslim-American soldier, they made this emotional appeal to

Donald Trump to show a little empathy. Now, the Khan family spoke to CNN. This happened in the last hour, and Khizr Khan criticized Trump

at the Democrat's convention for his proposal to temporarily ban Muslims and asked if he had read the constitution.

And Trump in turn pushed back saying that Khan had no right to stand before millions of people

and claim that he had never read the U.S. constitution. But a short time ago, Khan said he has every right.

(BEGIN VIDEO CLIP)

KHIZR KHAN, FATHER OF U.S. MARINE KILLED IN IRAQ: That is again his ignorance

of the first amendment. I have exactly same rights as he does. He had been abusing, disrespecting, women, judges, all decent Americans, he had

been so abusive of them. I exercise exactly same rights that again proves his ignorance. He wants to have one set of rights for

himself, and he wants to have another set of rights for others. No.

(END VIDEO CLIP)

LU STOUT: Khizr Khan speaking to CNN within the hour.

Now, Trump appeared to have been watching the interview when it aired on CNN. And he tweeted during the broadcast, the Khan family has been all

over television criticizing him but they are not the story. It's radical Islamic terrorism and the U.S. his words.

Now, Phil Mattingly has more on this growing feud.

(BEGIN VIDEOTAPE)

KHAN: Have you even read the United States Constitution? I will -- I will gladly lend you my copy. You have sacrificed nothing and no one.

PHIL MATTINGLY, CNN CORRESPONDENT (voice-over): A defining moment at the Democratic National Convention, now sending shock waves through Donald

Trump's presidential campaign.

TRUMP: I think I made a lot of sacrifices. I work very, very hard. I've created thousands and thousands of jobs.

MATTINGLY: Trump criticizing this Muslim mother and father of a U.S. soldier killed in Iraq.

TRUMP: His wife, if you look at his wife, she was standing there. She had nothing to say. She probably -- maybe she wasn't allowed to have anything

to say. You tell me.

MATTINGLY: Khizr Khan, whose son, Captain Humayun Khan, was killed in 2004, firing back at Trump.

KHAN: For this candidate for presidency to not be aware of the respect of a Gold-Star mother standing there, and he had to take that shot at her, this

is height of ignorance.

He is a black soul, and this is totally unfit for the leadership of this beautiful country.

MATTINGLY: His wife, Ghazala, also speaking out in a "Washington Post" op- ed saying, quote, "Walking on to the convention stage with a huge picture of my son behind me, I could hardly control myself. What mother could?

Donald Trump has children whom he loves. Does he really need to wonder why I did not speak?"

Trump attempting to clarify his remarks in a statement, calling Khan's son a, quote, "hero" but also stating that Khan had "no right to stand in front

of millions of people and claim I have never read the Constitution, (which is false)."

Khan defending his scathing rebuke of Trump, saying he wrote his own speech.

KHAN: There is no Clinton campaign here. There is no prompter here. I am articulate person.

MATTINGLY: Adding that Trump is missing two qualities required in a president.

KHAN: That is moral compass and second is empathy. This candidate is void of both traits that are necessary for the stewardship of this country. I do

not believe his whole year-long rhetoric -- division, excluding people, talking about them derogatorily -- has prepared him.

MATTINGLY: Late Sunday, Trump's running mate, Indiana Governor Mike Pence, issuing his own statement. Quote, "The family, like all Gold- Star

families, should be cherished by every American," all as top Republicans are distancing themselves from Trump's remarks and praising Captain Khan as

an American hero.

This firestorm comes after Trump earlier in his campaign questioned whether Senator John McCain was a hero after being captured in Vietnam. McCain's

daughter tweeting this over the weekend: "I would ask what kind of barbarian would attack the parents of a fallen soldier, but oh, yes, it's

the same person who attacks POWs."

CLINTON: He has, throughout the course of his campaign, consistently insulted and demeaned individuals, groups of Americans.

(END VIDEOTAPE)

LU STOUT: And that was our Phil Mattingly reporting.

Now, you heard him refer to the Khan family several times as a Gold Star family. That is a term used for families who have lost loved ones in the

U.S. military. It comes from the U.S. service flag whose stars are changed from blue to gold when a service member dies in the line of duty.

Now Russia is calling accusations that it hacked the computers of the Democratic Party insulting and inappropriate, that's according to a report

from Interfax. Now, the Clinton campaign has accused Russia of hacking the Democratic National Committee's email to help Donald Trump.

U.S. officials also claim there's evidence Russia was behind it.

Now when Theranos started it looked like it could revolutionize medical testing, but it's been the subject of a criminal investigation as it

struggles to prove its methods live up to federal standards.

We go inside the company next.

(COMMERCIAL BREAK)

(HEADLINES)

LU STOUT: Now, it has been a rough last few months for Theranos, the biotech company, it was supposed to provide cheaper and more efficient ways

of running medical tests. But in October of 2015, The Wall Street Journal called Theranos' technology into question, prompting a series of

investigations. And then in may of this year, Theranos was forced to void two years' worth of lab results produced by its edits and testing device.

That scandal cost Theranos its partnership with Walgreens.

And last month, federal regulators revoked the license of its California facility, and banned founder Elizabeth Holmes from owning or operating for

two years. Now, our Dr. Sanjay Gupta met with Holmes and went behind the doors at the labs at Theranos to learn more about its testing methods.

(BEGIN VIDEOTAPE)

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): For the very first time, Elizabeth Holmes is opening up the secret labs of Theranos.

ELIZABETH HOLMES, FOUNDER AND CEO, THERANOS: No one has ever seen this. You are the first one.

GUPTA (on camera): Wow.

(voice-over): In 2003, then 19-year-old Elizabeth Holmes dropped out of Stanford and founded Theranos, with the hope of using small amounts of

blood, just a few drops, to do what normally took numerous tubes. Testing blood may seem like a simple process, but, in fact, there are numerous

steps that can impact the results.

For example, the tourniquet. How long is that supposed to be on? Was that alcohol or iodine used to clean my arm? What's the size of the needle? And

why are there so many tubes? The anticlotting medicine is not standardized. Nor the various reagents used to do the testing itself. Let alone the

machines that finally spit out the results. It is a big $75 billion industry with thousands of players controlling little pieces of the

process. Theranos wants all of it.

GUPTA: OK.

HOLMES: The is the inside of -

GUPTA (voice-over): What resulted is this black box. A mini lab. The company says it can run up to 40 different tests on a tiny sample of blood.

HOLMES: We've designed it to allow for the same operations that a technologist could do in a laboratory.

GUPTA: Holmes believes that a finger stick, instead of a needle, will make people more likely to get their blood tested.

GUPTA (on camera): I'm going do this myself. Tiffany, hello.

TIFFANY: Hello.

GUPTA: That's still a needle in there.

HOLMES: A lancet is a - is a poke. Did it hurt?

GUPTA: Actually, I barely felt it. I'll be honest. I'm not just saying that.

(voice-over): For what it's worth, this Theranos blood test put my cholesterol at 170. My own doctor found it to be 169 just the week before.

Holmes says she wants to make this sort of testing available anywhere, anytime.

HOLMES: There's no reason why these can't be distributed in - in very, very decentralized locations.

GUPTA (on camera): Your home?

HOLMES: Yes.

GUPTA: You think people's homes should have these, essentially a clinical laboratory in their own house?

HOLMES: I think that's a very interesting space.

GUPTA (voice-over): But wherever the tests occur, the results need to be precise and accurate. And that's where the story of Theranos starts to

crumble.

DAVID KOCH, EMORY UNIVERSITY SCHOOL OF MEDICINE: There were several labs that were tested that weren't totally accurate.

GUPTA: One study in the Journal of Clinical Investigation found the tests from Theranos retail testing sites in Phoenix, Arizona, to have significant

discrepancies. But even more damaging, an assessment from the Centers for Medicare and Medicaid Services of their Newark, California, lab, which

questioned Theranos' ability to run a clinical laboratory, citing, quote, "a global and long-term failure of the quality control program," and

demanding they get their act together. "Wall Street Journal" investigative reporter John Carreyrou first broke that story last October.

JOHN CARREYROU, "THE WALL STREET JOURNAL": Theranos wasn't able to do so to the agency's satisfaction. So the agency has now decided it's going to shut

that lab down and it's going to ban Elizabeth Holmes from the blood testing industry for at least two years. GUPTA: Holmes has until September 5th to

appeal. But in her first interview since the CMS decision, she insists the technology was never to fault for the erroneous results. Instead, she

blames it on flawed operations and personnel.

HOLMES: At the highest level, we didn't have the right leadership in the laboratory, and we didn't have the implementation of the quality system in

terms of procedures and the associated documentation to ensure that we were realizing the quality standards that - that we hold ourselves to.

GUPTA: Of course, in the middle of all this, are patients whose health depended on Theranos for accurate results.

(on camera): Does this man who goes by the initials R.C. right now in Arizona, who is suggesting that the lab results that he got from Theranos

were not accurate, led to him having a heart attack. Based on what you know, is it possible that what he's saying is true? Could he have gotten a

lab result that was so askew that he didn't act on it and then a month later he ended up having a heart attack?

HOLMES: I'm not the lab director, and so -

GUPTA: I know, but you're the CEO and founder of the company and this is as serious as it gets.

HOLMES: Yes. What I know is that I put the best people in place to be able to investigate every aspect of this, and ensure that we meet the quality

standards that we hold ourselves to. And I know they're doing that.

CARREYROU: The biggest problem was going live with blood tests that didn't work, or that worked only part of the time.

GUPTA (voice-over): Theranos is under the microscope of the U.S. attorney's office and the Securities and Exchange Commission about whether it misled

investors about the technology. For now, Holmes and Theranos are hell bent on gaining back the significantly eroded public trust, improving the

product they have to offer is the real deal.

(on camera): It's probably the most important question I think anybody who's watching has about this, does it work?

HOLMES: Yes.

GUPTA: You're confident in that?

HOLMES: I am confident in that.

GUPTA: Dr. Sanjay Gupta, CNN, Palo Alto, California.

(END VIDEOTAPE)

LU STOUT: Good interview there.

Now, voters in Tokyo have made history by electing their first female governor. Yuriko Koike won in a landslide beating her closest rival by

more than 1 million votes. Koike was also the first woman to serve as Japan's defense minister.

Now, Anna Fifield, Tokyo bureau chief for The Washington Post spoke to CNN earlier about the vote.

(BEGIN VIDEO CLIP)

ANNA FIFIELD, THE WASHINGTON POST: Yukiko Koike's victory is not going to crack the glass ceiling in Japan overnight. But it is a really significant

moment for the status of women in Japan. Yuriko Koike has now become the first female governor of Tokyo, that's a role that basically combines a

city mayor and a state governor together here and she will have a lot of influence in that role.

And significantly, she's been elected by people because they were -- showing some dissatisfaction with the ruling Liberal Democratic Party led

by Prime Minister Shinzo abe.

So Koike was not backed by the party. They backed a different candidate. But the voters flocked to her instead, because she was portraying herself

as something of an outsider, someone who could come in and be much more transparent in the way that city hall is operated here.

Her two predecessors had both been forced to step down because of financial scandals. And there is some disillusionment here with the way they had

been running Tokyo, especially in the lead-up to the Olympic games.

(END VIDEO CLIP)

LU STOUT: Anna Fifield there. Now in her campaign, Koike vowed to overcome child care

shortages and to push female friendly policies so that, quote, both women and men can shine in Tokyo.

Now, fears over the Zika virus succeeded in scaring off some of the world's top talent from this

year's Olympic games. But there's one country whose athletes remain undeterred. Coming up, a look at South Korea's anti-Zika move.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now the mother-in-law of Formula 1 boss Bernie Ecclestone is finally free more than a week after kidnappers took her hostage. Two people have been

arrested.

Authorities say that she was being held for ransom in this house just west of the Brazilian city of Sao Paulo. Ecclestone is worth billions of

dollars and has been involved in motor sport for more than 50 years.

Now, with just days to go until the Rio games kickoff, one country is taking extra steps to ensure its athletes are protected from the Zika

virus. South korea has designed its very own brand of mosquito repellent uniforms for its Olympians.

And Paula Hancocks went to the factory to speak to the designer about this line of protective wear.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: The national flag. the team logo, encouraging messages from people sewn into the lining: this is South Korea's olympic uniform. 600 are being made here just outside

Seoul for athletes and officials to wear in Rio this August. And there's something else that makes this outfit unique: it is apparently Zika

resistant.

But aside from the long sleeves and the long trousers keeping skin off limits to mosquitoes, the rest remains a bit of a mystery.

The Zika resistant part of this uniform is apparently top secret. Now, all we've been told once these uniforms are finished, they're then shipped off

to an unnamed company and there they coat the uniforms with an insect repellent chemical. We're not allowed to film that part.

We're told it has been tested to repel mosquitoes, and it works. No lab results or footage available, though.

Designer Kim Soo-chong (ph) says she was going for protection, and comfort, and something truly Korean.

"I wanted our athletes to look classy and stylish," she says, "as they're on the global stage. Next, I wanted it to be in the unique Korean style.

Lastly, it had to be functional and comfortable."

South Korea's Olympic committee says so far no athlete has dropped out through fears of the Zika virus, but medicine, insect repellent and

mosquito nets are being prepared as well as a uniform that leaves little exposed for the mosquitoes to bite.

Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: Now, there is one team in Rio that has already won a major victory even before the games begin. For the first time in the history of

the Olympics, a team of refugees will take part in the games. Now, the athletes come from Syria, South Sudan, Ethiopia and the Democratic Republic

of Congo.

The IOC's president says this, quote, these refugees have no home, no team, no flag, no national anthem, but he said we will offer them a home.

And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. We will have much more on the buildup to the Rio games on World Sport with

Rhiannon Jones next.

END