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NEWS STREAM

Samsung Recalls Galaxy Note 7; Growing up with Mother Teresa; Hurricane Hermine Downgraded to Tropical Storm; Polls Tightening in U.S. Presidential Race. Aired 8-9a ET

Aired September 02, 2016 - 08:00   ET

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


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

Now, a global recall: Samsung in damage control and decides to take back its Galaxy Note 7. We'll tell you why straight ahead.

Also downgraded: Hurricane Hermine weakens to a tropical storm after hitting Florida but how much damage did it cause?

And growing up with the future saint: here how Mother Teresa touched the life of one of CNN's own.

Samsung is asking more than 2 million users around the world to send back their Galaxy Note

7s. Now the smartphones were only launched last month, but users have been posting pictures online, saying that their phones caught fire while

charging. Samsung says it's found a problem with the battery and will stop selling the phones for now.

Now, this could not have come at a worse time for Samsung. While it remains the biggest

smartphone maker, it had been losing market share to competitors like Xiaomi and other low cost rivals. And sales had just begun picking up

recently.

Now, the recall is also an embarrassing setback. The Galaxy Note is Samsung's flagship line, the one that pioneered the trend for large screen

phones years before Apple joined in. And the Note 7 did receive glowing reviews.

Now one website the Verge called it Samsung's best device, arguably the best big phone ever

made.

Now let's dig deeper into the story. We have Paula Hancocks standing by in Seoul near where

Samsung is based. And Samuel Burke is at the IFA (ph) conference in Berlin. It's one of the world's

top electronic shows. Welcome to you both. And we'll start with you, Paula. Tell us about the local

reports there in South Korea. What prompted Samsung to issue this global recall?

PAUL HANCOCKS, CNN INTERNATIONAL CORREPSONDENT: Well, Kristie as you say, there have been a small number of videos and photos that were emerging

online showing the charred remains of these handsets. Some consumers claiming they had caught fire while charging.

Now, Samsung earlier in the week had said that they were postponing shipping these handsets out, as they were checking quality control and then

this Friday afternoon they did admit that there is a problem with the battery cell.

They say it is just a small number that is affected at this point, based for every 1 million, for example, the ratio would be about 24 that were

affected.

But they've sold 2.5 million of these devices. They say that they will replace every single one of those regardless of when they were bought.

So certainly this is a PR disaster for Samsung. As you say, this had been very well received by critics, this Note 7. And they just started to have

this turnaround in their fate. At the beginning of this year they were hoping to build on that success, but certainly this is not what Samsung

wanted to be announcing today.

LU STOUT: Yeah, this is massively unwelcome news for Samsung. Let's go to Samuel Burke who is standing by from Berlin. And how are tech industry

players there and people you've been able to talk to reacting to this development?

SAMUEL BURKE, CNN MONEY: Kristie, people are very surprised that this happened to Samsung. But almost everybody I talked to here say they're

not surprised that it has to do with the battery.

You've covered tech for years. You know that the battery is not only the bane of the existence for users -- we of course would like them to last

longer -- it's the bane of the existent of the smartphone creators and everybody else who is working especially with lithium-ion batteries.

They say that it's a constant problem for them and they're surprised that with just 35 incidents,

that Samsung is deciding that they're already recalling more than 2 million phones.

The other thing, you said that it couldn't happen at a worse moment for Samsung given that they're just on this comeback. They've had so much

success with this phone, but next week is the launch of what's expected to be the iPhone 7 with Apple. So, Samsung has

been everything it can to get as much attention as possible before this tech conference, at this tech conference, and now they're having to talk

about this.

I just walked to the Samsung booth, though, and I still see the display there for the Samsung Galaxy Note 7.

LU STOUT: That's the reaction there at this major tech conference in Berlin.

Let's go back to Paula Hancocks in Seoul. And Puala, the reaction in South Korea? We know Samsung is the blue chip company. It put the country on

the map as an innovator, it's a very popular brand there in its home market in this extremely mobile savvy society. How are Koreans reacting to this

global recall?

HANCOCKS: Well it's interesting that Samsung announced this after the stock market was closed this Friday afternoon. Clearly they want people to

mull over the news before investors react.

And certainly I think there's going to be a fair bit of surprise. This is unprecedented for Samsung, this kind of global recall in their handset

business.

Now Samsung has said that it will take a couple of weeks for them to even be able to prepare for this recall. They say here in South Korea it will

be September 19 that they'll be able to start replacing these phones.

They don't have a date yet for the rest of the world. It has been sold in ten countries around the world. But they do say to consumers, if you are

worried, you can take your handset in to a local service center, they can check, locally, if it is, in fact, one of the ones with

the faulty battery. And if you're still concerned then they can swap it with another product -- Kristie.

[08:04:33] LU STOUT: All right. And let's go back to Samuel Burke standing by for us. And Samuel, the Galaxy Note 7 was described as one of

the best smartphones ever made by Samsung, one of the best large format smartphones ever out interest. What's next for this model? Is it back to

the drawing board for Samsung? Will there be a new improved version after the recall? Have you heard anything about that?

BURKE Well, as I talk to some of the CEOs at the start-ups here and some of the medium size

companies about their experience with these batteries, they say that the good news for Samsung, based on what we're hearing that it's just the

battery.

Sometimes what you have is a combination -- the battery with another part and they're touching and that's creating the problem. But given that

Samsung says there are telephones with two different types of batteries and it's only one type of battery causing a problem that

means that Samsung should be able to continue with this line without problems. They can continue making this very successful phone and just

switch the batteries for now.

So that could be some good news for investors and good news for the people who really have liked this line. It's had incredible reviews, not just

from the tech community,but also the larger reviews like consumer reports gave it one of the best reviews they've ever given a smartphone.

And anecdotally I can say with my use and other enthusiastic Samsung users, they really do love this phone, but certainly not the people who posted

those images of the phones seemingly exploding and going up in flames on social media.

LU STOUT: Yeah, frightening images indeed. So, bottom line here, big setback for Samsung but a surmountable one. Samuel Burke and Paula

Hancocks reporting for us. A big thank you so you both. Take care.

Now, to the southeastern United States now and 23 million people are under storm watches and

warnings all thanks to Tropical Storm Hermine. It roared ashore as a hurricane early on Friday morning, and then it weakened.

So far no reports of injuries, but thousands are without power in Florida.; trees are down, streets are flooded. And it is now moving northeast

through the state of Georgia.

Now let's bring in our Polo Sandoval in St. Marks, Florida with an update.

And Polo, it is now a tropical storm. It's weakened, but it does still pose a threat, right?

POLO SANDOVAL, CNN CORRESPONDENT: Right. Especially for much of the southeast. But here, though, one of the first parts of the United States

that actually was exposed to the storm, it's incredible what a difference a few hours has made.

Again, we are in Saint Marks, Florida, which is in the Florida panhandle, and it's really one of the closest populated areas to where the storm

actually made landfall about six hours ago. But it's incredible now, a significant difference. The floodwaters that you mentioned are receding as

you can tell over my shoulder.

In fact, much of this roadway was actually covered with water only about an hour ago. And you can see how quickly it's begun to recede as the sun

begins to shine through. People now have an opportunity to get in their vehicles, and go out and assess the damage for themselves.

You mentioned some of those downed trees. That's very important, too, Kristie, because that seems to be that much of the damage was caused not

just by floodwaters, but also some of these trees. The extent of any minor injuries, because some of these trees actually fell on top of homes.

But at this point we understand that there aren't any significant injuries to tell you about.

But, what is important here is as you see what we're looking at in the state of Florida, it will

give you a preview of what the rest of the southeast region of the United States could be in store for as this storm continues to make its way north

-- Kristie.

LU STOUT: Yeah, it's good to hear that that water that we're seeing in the video just then right behind you is starting to recede.

And Polo this was the first hurricane to hit Florida in eleven years. It's been awhile. So, how prepared were people there for the storm?

SANDOVAL: Extremely. You know, there's about 100,000 people still without power this

morning in and around the area. Some of those power outages are actually intentional, that's because 11 years ago, when the last storm blew through,

officials on the ground here and first responders learned that it's best to actually cut off the electricity before the storm

blows through in order to prevent more damage. And of course, as you may imagine, any potential injuries.

There are also several homes in the area that are actually built on stilts, because of the floodwaters we haven't been able to get much closer than

this quite yet.

But some of those homes after the last storm they were rebuilt that way. And several o he folks who have mobile homes were actually removed from the

area.

So yes, that actually played a very significant role in the way this area prepared. And as I just heard from a resident a few moments ago, it could

have been worse at least here there is some hope that the damage will be quite minimal when everything is said and done, Kristie.

[08:10:00] LU STOUT: All right, Polo Sandoval reporting for us live. Thank you very much indeed for that up date.

Now Hermine may bring more headaches for Florida its fight against Zika. Some experts warn that the flooding it causes could be a perfect breeding

ground for mosquitoes. Although, the Center for Disease Control says it is more likely there will be an uptick in what is called nuisance mosquitoes,

not the disease carrying variety.

Now, Zika carrying mosquitoes were recently discovered in Miami Beach, the first such finding in the U.S. And there have been 49 locally transmitted

cases of Zika in Florida so far.

And here in Asia, the Zika virus continues to spread in Singapore. The number of locally transmitted Zika cases there has risen to 185. And two

of the patients are pregnant women.

A recent study by the UK medical journal Lancet finds that parts of Asia and Africa could be vulnerable to potential Zika outbreaks and it says

that could affect some 2.6 billion people living there.

U.S. President Barack Obama has just paid a visit to a wildlife refuge in the Pacific that he recently expanded to become the largest protected

marine sanctuary in the world. It includes historic Midway atoll where the natural beauty and wildlife are being threatened by plastic waste.

Nick Paton Walsh reports.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: Midway has always been vital to somebody -- a home for birds to breed; and for the U.S. and Japan,

a place so strategic they fought a decisive battle for it in World War II.

Wherever you step you're still reminded here of sacrifices made of a naval battle where American luck and courage combined to defeat Japan so

unexpectedly historians still marvel at it today.

Even now it houses these sensors, meant to detect radiation from a North Korean nuclear test.

We head to Midway's Eastern Island, home to the old U.S. airstrips used to attack the Japanese; now, where the albatross fights to survive.

UNIDENTIFIED MALE: On this day, he didn't make it very far.

WALSH: It is here we can see how plastic has gotten in to a species.

Matt cut open a bird, dead for only a matter of days.

UNIDENTIFIED MALE: So, as you open it up, you can see, all that plastic. The same color as squid.

WALSH: The colors that distinguish this brand make it appeal to the birds as food, too. It's the color of squid.

UNIDENTIFIED MALE: Nobody lives on this island anymore. Nobody's lived on this island for decades. This is all that has come in in the stomach of

birds, adult birds bring it back. They feed it to their chicks, and as the chicks pass away, carcass lays here. The bones disappear. The feathers

disappear, because they're natural. And what you end up with the bone will disappear eventually

but what will stay is all these pieces of plastic that just litter the ground here.

WALSH: Just pull up a handful here. It is amazing, actually, because I mean it's just endless. Even the tiniest bits like this, little bit of

green plastic here, almost indistinguishable.

UNIDENTIFIED MALE: Yeah.

WALSH: I mean, everywhere.

UNIDENTIFIED MALE: You know, albatross out there foraging, they bring five tons of plastic to this small island every year just in their stomachs,

five tons of plastic comes out of the ocean.

These are, you know, the classic canary in a coal mine.

WALSH: Some suggests that by 2050 there will be more plastic by waite in the ocean than biomass. That's fish and living creatures. Just pause and

imagine that. And if you're not an environmentalist, fine, forget those images of pristine beaches destroyed. But think about this, there is

potentially an impact on human health. Scientists really don't know yet, but they do know that they've seen in fish the fact that they've ingested

plastic has damaged their tissues, has damaged their reproductive health, potentially in those seals, too. You saw as well, there have been similar

problems. They're trying to work out whether or not by eating that fish you can, as a human, ingest those toxins and have similar impact to your

body, too.

But bear in mind, the ocean is what 3 billion people live off on a daily basis and the damage done to it is also about a daily choice you and I make

to throw something away. It doesn't simply vanish -- the coffee cup, the water bottle, it ends up in the ocean, and sometimes on those pristine

beaches of Midway.

Nick Paton Walsh, CNN.

(END VIDEOTAPE)

LU STOUT: We are choking the world's oceans and this has got to stop.

You're watching News Stream right here on CNN. Still ahead in the program, as Mother Teresa is about to be raised to sainthood, we'll speak with CNN's

Mallika Kapur who grew up in the nun's Calcutta community and we'll hear from a man saved by Mother Teresa.

(COMMERCIAL BREAK)

[08:17:07] LU STOUT: Coming to you live from Hong Kong, you're back watching News

Stream.

Now, the late Mother Teresa will officially be recognized as a saint in the Roman Catholic church on Sunday. Now, she died nearly 20 years ago, but is

still remembered around the world for the life she lived dedicated to serving the poor, particularly in Calcutta, India.

Our own Mallika Kapur grew up in Calcutta and Mother Teresa was part of her everyday life. Mallika joins us now live. And Mallika, what was it like

to effectively grow up with Mother Teresa?

MALLIKA KAPUR, CNN INTERNATIONAL CORRESPONDENT: You know, Kristie, back then, all of us grew up in Calcutta and were, you know, young students in

the '70s and '80s. I don't think we really realized who we had in our midst, in our community, you know. And that's really

because Mother Teresa was just so accessible. She was a regular Calcuttan just like everybody else was.

So, even though we had a chance to meet her, really, often and to interact with her, I don't think we really understood or realized that we were

watching history right itself at that time. She was so accessible. She lived in the heart of the city, people could drop in. She lived in this

big gray house with a big door which was always open. And people from all backgrounds, all religions, were always

welcome there.

She always said come in any time, and if she was home, she came out of the chapel or out of

her room to hold your hands, and to welcome you.

(BEGIN VIDEOTAPE)

KAPUR: When Mother Teresa came to India, a young nun following her calling she came to this bustling city in the east and never left. Calcutta became

her home.

It's where my home is, too. I enjoyed a simple, happy childhood here. It revolved around family, friends, school, and Mother Teresa figured

prominently in each of those fields of my life.

Initially Mother Teresa was part of the Loreto Order of Nuns, the same order that set up this school, Loreto House, my school. And I remember

sitting in these very classrooms listening to nuns tell us stories about Mother Teresa.

Locals call her simply "Mother" and I often saw Mother and her Sisters going about their work helping, caring, feeding the poorest of the poor.

Back then, I had no idea I was watching history unfold.

She lived in the heart of the city in this simple room where she later died. Visitors from all faiths and all walks of life were always welcome at

Mother's house. It's where I first met her.

She gave me this prayer and then she took my hands in her hands. She had a really firm grip and then she said to me over and over again "God bless

you, my child. God bless you."

Mother adored children and many local families including mine often helped out at her home for abandoned children.

When I was a little girl I wrote a poem on Mother Teresa and the next time I came here I just tagged along with my mother who was volunteering here at

the children's home and Mother Teresa met me and she said come here, come here. I want to show you something. She had taken my poem and (inaudible) I

mean put in a sheet of plastic and she stuck it right here.

Some residents complained she put Calcutta on the global map for the wrong reasons, poverty and desperation. But most locals are protective of here.

They say they're proud our city produced a saint.

(END VIDEOTAPE)

[08:21:01] KAPUR: And you know, Kristie, my mother is still a volunteer with the missionaries charity and whenever I go home to Calcutta, which is

fairly often, it's really nice, it's heartening to see that Mother Teresa's legacy and her work is still continuing, and very much the same way that

she wanted it to -- Kristie.

LU STOUT: Yet that present-day impact is so heartening to hear and your report just a beautiful look into the history and the impact of Mother

Teresa and her work there in your hometown.

Mother Teresa, as we all know, is on her way to sainthood, Mallika, but she has had her

share of criticism. It would have been some of the more serious allegations against her.

KAPUR: You're right. You know, as surprising as it may sound, well you know there are criticisms. And some of the serious allegations against her

are that she was driven by Christianity, that she was on a mission to convert people. That she, of course, had controversial views on things

like family planning on abortion and contraception. And some people who've worked, who volunteered at her homes previously have said that things like,

you know, the standard of medical care that was provided at the hospitals was really not up to mark. There was -- there were stories or allegations

of nuns reusing needles, for example. And there are allegations of very little transparency when it comes to funds.

So there are some allegations against her. And these critics do have a right to have their voices heard.

But, if you talk to people who were close to Mother Teresa, they'll say, look, it was never Mother Teresa's intention to run a five-star hospital,

that's not what she intended to do. And if other people think that's what she should have done, well then they're entitled to their opinion, but

that's not what Mother Teresa intended to do and her goal, her intention was simply to serve the poorest of the poor. And that's what she spent a

lifetime doing.

And critical opinion of her aside, just her name alone, Mother Teresa has become a synonym for goodness. I mean, is that the general feeling in

Calcutta to about her?

KAPUR: Absolutely.

You know, even the critics, you'll hear these voices somewhere else, but you'll be very hard-pressed to find any of those voices in Calcutta,

because back there people are really protective of her. They're incredibly proud of her. There is so much love for her, because people

there have seen firsthand what she's done, what she's done for the city, what she's done for anybody who need help in that city.

I've seen it firsthand, too, Kristie. I've spent a lot of time in her various homes, especially a fair

amount of time in her home for abandoned children and I can tell you that every baby I've seen there, some of them critically sick, but these babies

now have a chance at life and these are people who would have never made it if they hadn't been brought in to one of Mother Teresa's

homes. And seeing that people in Calcutta are just so proud of her and have so much love and affection for her and so much respect and right now

the mood there is one of immense joy and pride, and with her upcoming canonization on Sunday.

LU STOUT: I can feel it through your reporting. Mallika Kapur thank you so much for sharing that personal account of the legacy of Mother Teresa.

Thank you.

Now, Mother Teresa, she took countless people into her care helping the poor, the sick, the abandoned on the streets of Calcutta. She founded a

home for the dying, as well as a school, clinics, and an orphanage. And one of the people Gautam Lewis. He says it's impossible to forget her.

And he joins us now live from outside Mother House in Calcutta, India.

Sir, thank you so much for joining us here on CNN. And please share with us what is your earliest memory of Mother Teresa and being taken to this

site behind you, her home for children?

GAUTAM LEWIS, SAVED BY MOTHER TERESA: Though, I'm outside the home of Mother Teresa, the orphanage is just down the road. And my earliest memory

is about survival. I was given in to the children's home where I could be given life because my original birth parents couldn't look after me.

[08:25:11] LU STOUT: And I understand that even though Mother Teresa was tiny in person you write that you remember her as this towering figure.

Was that because you were a child or just because of her presence, her sheer, towering presence?

LEWIS: It was both, because I was on the floor crawling about and looking up at her.

but it was also because I guess she was the guardian angel that I needed.

LU STOUT: And there was a time when she stepped in as a guardian angel. There was a time when you were at the orphanage, on the home for children,

when you stopped talking for six months. Can you tell us about that period, and what Mother Teresa did to help you then?

LEWIS: When I found out and understood for the first time that I was an orphan and I was abandoned, I stopped talking for six months. And the only

way that Mother Teresa could unlock my voice was to bring in psychiatrists and to provide that therapy that I deeply need.

LU STOUT: Yeah. She's unlocked your voice, and also what you are today. You're a pilot, photographer, a founder of a UK-based flying school for the

handicapped. What is your feeling now about Mother Teresa, and the impact on your life, especially as she's on the cusp of being canonized?

LEWIS: I have a deep responsibility to not waste the chance that she gave me to have a different destiny away from Calcutta. So for me, to be in

Calcutta, in the city of joy during the canonization is me following my heart and reconnecting with my heritage.

So, on behalf of I guess all the children whose lives have been changed because of the service above self, thank you. But also, it's never too

late to make the right decision to become a saint for someone.

LU STOUT: Yeah, in addition to the impact that she made on your life, a tremendous one at that, what else did she do that you believe warrants her

to become a saint?

LEWIS: I think what she demonstrated through love, and therefore through her connection through humanity, she demonstrated what we can all do if we

harness that collective energy towards doing something good. Think of how much effort and energy we use to create conflict. So it probably starts

with a simple act of smiling and brightening up someone's day.

LU STOUT: All right, Gautam Lewis, thank you so much for sharing your story with us and take care. Gautam Lewis joining us live from Calcutta.

You're watching News Stream and still to come we'll be taking a look at Hong Kong's first legislative election since the Umbrella Movement of 2014,

and explore why it's a hugely contentious vote this time around.

Also ahead, the man who created Alibaba has a new idea, one that he says will help small

business owners around the world make more money.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:32] LU STOUT: Hillary Clinton is still leading the U.S. presidential race, but that lead is shrinking. Now, take a look at CNN's

newest poll of polls, it shows Clinton with a five-point lead over Donald Trump. Our previous poll of polls had Clinton's lead at ten points.

Now meanwhile, Donald Trump's wife says two media outlets published lies about her so she's suing them. Melania Trump filed suit against the Daily

Mail in a blog called Tarpley (ph). And she says they made false and defamatory statements about her involvement in an escort service. The

lawyer says the stories included a false claim that she was supposedly an escort in the 1990s.

The Daily Mail has retracted its story.

And while the U.S. watches its presidential race, here in Hong Kong, voters are getting ready to let the city's lawmakers this weekend, and it is a

contentious vote with Hong Kong's independence a major topic. Now, some candidates have been barred from running because of the issue, and that's

raising concern over the city's freedom of speech.

(BEGIN VIDEOTAPE)

LU STOUT: A grassroots effort to get out the vote. Hong Kong is one of the only places in the People's Republic of China where local's get to

choose their own legislature and they take that right very seriously.

But since the pro-democracy protest of the Umbrella Movement two years ago, Hong Kong residents are increasingly concerned that China may be

encroaching on their rights which differ from the mainland like Freedom of Speech and assembly.

Particularly alarming to many here, the disappearance and then reappearance in Chinese custody of five Hong Kong men associated with a publishing house

that produced gossipy books about the Chinese political elite.

The younger generation are increasingly anxious about the future, leading to the growth of several new political parties known as localists who want

more autonomy for Hong Kong, or even independence, something pro-Beijing parties warn would destabilize the city and the economy.

YING CHAN, HONORARY PROFESSOR, UNIVERSITY OF HONG KONG; The sign for Beijing is trying to crack down, paying a lot more attention, to put these

rambunctious elements under control. And then people say no. No. You know, we need a bigger voice in government.

LU STOUT; For the first time ever, Hong Kong's legislative candidates were asked to sign this:

a pledge saying that they would uphold Hong Kong's basic law and that includes a provision that Hong Kong is an inalienable part of China.

Edward Leung is among six localist candidates that the government barred from running, a move some see as infringing on the democratic process.

EDAWRD LEUNG, HONG KONG INDIGENOUS: I think, and we think as long as Hong Kong is ruled by China, there's no room, no way to realize the real

democracy and our autonomy.

LU STOUT: Leung is now campaigning for other localists still permitted to run. He's also waiting trial on rioting charges in connection with

February's clashes in Hong Kong Mongkok District.

A recent survey found 17 percent of Hong Kong residents want independence from China, but less than 3 percent believe it is possible to attain.

The majority of voters here still expect to back the more traditional political parties like student Student Nathan Chan. He is sticking with

the more experienced pro-democracy Civic Party even if lots of his peers support the localists.

NATHAN CHAN, VOLUNTEER: I do admire what they're standing for. They're very firm. They know what they're doing. But at the moment I didn't see

myself supporting them any time soon. They think they're very practical in the short term.

[08:35:04] LU STOUT: Such criticism does little to sway Edward Leung.

LEUNG: People might think us as too idealistic but for every major change in history, there must be someone very idealistic to stand up first. If

you do not talk about independence, who can talk about it for you?

LU STOUT: Hong Kong's relationship with China: the question at the very heart of its identity facing every voter who walks in to the polls.

(END VIDEOTAPE)

LU STOUT: As mentioned the government has repeatedly clamped down on ideas promoting the city's split from China, even warning teachers against

discussing the topic in class. But some students are defying those warnings by handing out pro-independence flyers outside schools on the

first day of the new school year on Thursday.

Now the Hong Kong elections also seem to be a target for hackers. Now according to iSight (ph) this is a unit that the U.S. cyber security firm

FireEye, the China based hacking group APT-3 attacked two Hong Kong government agencies earlier this month with new malware tools.

iSight says it can't name the agencies as they are potential victims, but says both are significant breaches. Now, the group's president tells us

that they're still unsure why Hong Kong is a target.

(BEGIN VIDEO CLIP)

JOHN WATTERS, PRESIDENT OF ISIGHT: Why they're going after Hong Kong -- Hong Kong target is suspect to us, because it's different than their

previous motives have been. So when we think of APT-3, for us, attribution is motivation, intent and capability so the motivation, intent, and

capability previously was for economic espionage targeting commercial entities in the U.S. and in Europe.

To now shift that into a political agenda, is certainly a change in behavior. You know, so that's of note when you think about why they would

be targeting an agency in Hong Kong.

But you have the same affiliate back in to China who maybe their policy objectives had shifted from economic espionage into learning more about in

this case what is a close ally.

(END VIDEO CLIP)

LU STOUT: Now, Waters also told me that in the Asia-Pacific region Taiwan is the most targeted entity when it comes to cyber threats. And that's

followed by Hong Kong.

Now this just coming in to us here at CNN, the U.S. government just released its August job

numbers, the U.S. economy added 151,000 jobs last month. The unemployment rate remaining at 4.9 percent.

Now a good jobs report could push the Federal Reserve to hike interest rates.

The G20 summit it's is happening in Hangzhou, China this weekend. And Jack Ma is there, hoping to pitch his latest idea to world leaders. Now, the

founder of Alibaba created his company in Hangzhou some 17 years ago and now wants to build a so-called electronic world trade platform that could

help small businesses find customers globally.

Now he explained his latest idea to Andrew Stevens.

(BEGIN VIDEO CLIP)

JACK MA, FOUNDER, ALIBABA: Well, we call electronic world platform, it's not electronic world trade organization. If it is WTO organization it's

like a, you know, nearly 200 government leaders sit in a room, they quarrel, they fight because of the political reasons, they stop the trade.

We think trade is something to stop the wars. Trade is something that to improve the communications. When trade stops the war comes.

(END VIDEO CLIP)

LU STOUT: And you can catch more of Andrew's interview with Jack Ma. It's coming up in about 20 minutes from now on CNN Money.

Now a government press officer tells CNN that Ireland will formally launch an appeal

against that ruling by the European commission that's ordering Apple to pay the country some $14.5 billion in back taxes.

The Irish parliament will debate the cabinet's decision on Wednesday. Apple has also vowed to fight the ruling, which it says will severely hurt

its operations.

And you're watching News Stream. And coming right up, a fiery explosion destroys a SpaceX rocket. Up next why Facebook is disappointed.

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[08:40:46] LU STOUT: Now a SpaceX rocket exploded while it was being fueled on Thursday. It was supposed to take a satellite into orbit for

Facebook to boost internet access in Africa, Europe and the Middle East. Fortunately, no one was hurt.

Now Facebook's Mark Zuckerberg wrote in a post while traveling to Africa this. He said I am deeply disappointed to hear that SpaceX's launch

failure destroyed our satellite."

Now, SpaceX describes it as an anomaly. Now, the company is trying to make space flight cheaper by developing rockets that can land upright after

launch and be reused, but they've had some major setbacks.

A rocket exploded during a launch in June of last year during one of its International Space

Station supply missions. And they've lost several other rockets trying to land them upright.

Now before we go, I want to share with you a love story. It's a love story one between

the people of Japan and the Kit Kat bar, but not the milk chocolate and wafer one you might be familiar

with. Now, a Japanese chef Yasumasa Takahi (ph) has pioneered a variety of Kit Kats with unique flavors. He got purple potato, matcha green tea,

wasabi, lemon vinegar.

Now, the Japanese market is notoriously difficult to break in to for non- domestic brands. But its popularity is due to a language quirk. Now, Kito Kato in Japanese means to surely win. And the bars are given as gifts with

handwritten messages. And if you happen to be visiting Japan, you can find them at KitKat boutiques, or major train stations and Airports.

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

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