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EU Competition Commission Fines Good $2.7 billion; Civilians Flee Fighting in Marawi; Russian Ambassador Sergey Kislyak Recalled to Moscow; U.S. Releases Latest Trafficking in Persons Report. 08:00a-09:00a ET

Aired June 27, 2017 - 08:00   ET

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


[08:00:30] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout live from the Hong Kong harbor front and welcome to News Stream.

Now, the EU slots a record 2.7 billion dollar anti-trust fine on Google, saying the search engined favored its own products.

The cost of the conflict with ISIS in the Philippines. Civilians suffer in the city of Marawi. And as we countdown to the 20th anniversary

of the handover of Hong Kong, we look at one of the biggest issues facing the people of this city: the lack of affordable housing.

Now, the European Union has issued a record fine against the U.S. tech giant Google. Here's the number: 2.7 billion dollars, that is more than

twice as much as the highest fine imposed in the past.

The European competition commissioner says Google has been unfairly using its search engine to steer users toward its shopping platform.

Let's go straight to CNN tech and business correspondent Samuel Burke. He joins us live from London. And Samuel, in the words of the EU

competition commissioner, what Google has done is illegal. So, tell us more about what Google has been doing and why it's been hit with this

recordbreaking fine.

SAMUEL BURKE, CNN MONEY: Well, Kristie, sometimes it can be very difficult to understand these big fines and competition clauses, but

actually this is all quite simple. Now, you may not agree with the EU, but it's simple to understand because we're all so familiar with Google.

So, I want to just put up on the screen what exactly this focuses around, this Google shopping platform. If I type in "blue shoes" to

Google. I may not buy a type of pair like that, but this is what I'll see. And it's all that section right there, you see those images, and you'll

notice in the upper right-hand corner it says "sponsored."

Basically, shoe companies are paying Google to put their product right there. And what the EU is saying is that anything that comes after it,

well, really doesn't have a chance.

Now, what that has called is Google shopping, so it's not just an ad. And this is what's crucial to understand, this is a service that's done by

Google where you might find shoes that are not sponsored, but at the end of the day if you're on the bottom of that page, or god forbid, if you're a

company on one of the second, third, fourth pages you really don't have a shot. And that's what concerns the EU.

Now, Google, of course, says that they disagree with this conclusion from the EU and that they're going to fight it, much in the way that Intel

has been fighting the second biggest fine now that we've ever seen on a tech company back in 2009.

But they say, listen, this is how we make money. We put ads there.

But, again, the difference here is that this is not just an ad, it's a service. Google Shopping allows you to go in and compare different shoes,

different blue shoes, or many other different products.

LU STOUT: Yeah, so the target in today's case is Google Shopping, but Google is also facing other ongoing EU anti-trust investigations here,

right?

BURKE: Well, it's really interesting, because on the one hand you have Google being punished by shareholders in the past who have said you

haven't done enough to get into shopping or you haven't done enough to get into social. And then we see the EU going at Google on many different

fronts, not just on this front with the shopping.

So, you've got the shareholders saying you're not doing enough, and then you have the EU saying you're doing too much.

It's interesting to note that a lot of these tech companies that we speak to that are seeing these major fines from the EU, including Google,

including Apple, feel like they're being targeted because they're American, successful American companies, and the tech companies here in Europe

haven't had the same success, and now some of these tech companies allege that this is the EU's way of getting back at them.

Remember, Apple had a huge fine slapped on it by the same woman, Margrethe Vestager, who is the head of the European Competition Commission.

And so what they feel is that there is this unfair platform, really, that they're going up against in the EU.

But of course there aren't these huge European tech companies, so it would be interesting to note if a Google equivalent in Europe were here and

doing the same thing, would the EU go after it? I suspect they would say that they would.

But at the end of the day what European countries and the EU feels is that the small companies that they do have don't face a chance in

competing, selling their blue shoes, because they just don't have the money to get up there at the top of Google.

LU STOUT: Yeah, and for Google and the EU, a massive fine with massive repercussions. Samuel Burke reporting live for us. Thank you so

much and take care.

Now to Syria now, which is receiving a strong new warning from the White House. Washington says it believes the regime could be planning

another chemical attack and says President Bashar al-Assad would pay a heavy price if it's carried out.

You'll remember that back in April, the U.S. struck a Syrian airfield, which officials said have been used to launch a chemical attack that month.

Washington's new rhetoric could again put it at odds with Russia, the Kremlin calling threats to so-called legitimate leadership of Syria

unacceptable.

Now, meanwhile, there is a critical battle taking place in Syria in the very heart of the city ISIS calls its capital. Now, CNN has

exclusively obtained undercover video from Raqqa where U.S.-led forces are making new gains against the terror group. Nick Paton Walsh has the

extraordinary footage and what it means.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): This is what a reign of terror looks like when it's in collapse. Yes, the

traffic's normal. So is the market. But you can tell, ISIS is losing here on the streets of Raqqa, the capital of their fast shrinking caliphate from

one thing. It's actually pretty easy to film them in secret. Using a hidden body camera could be a death sentence for this activist. But in these

besieged streets lined with sandbags, encircled by American-backed Syrian fighters, they just don't fear ISIS anymore.

To even this foreign fighter, Abu Isha (ph) from Belgium is a target as he makes a front line fashion choice. And elsewhere, two Russian-

speaking fighters appear to discuss air strikes.

UNIDENTIFIED MALE (through translator): We have a problem at the moment. I forgot even the radios. I said to Khalid, do you have them? I

thought he returned them to the base. I said, Let's go there. But apparently they've already attacked and the battle's been going for a day

already.

UNIDENTIFIED MALE (through translator): The planes have been striking the whole day, crushing them. It hit them right on the nose. Planes have

been striking, vehicles are striking, deliberately.

WALSH: Here, Abu Lukman (ph), the Egyptian, looks with his military police for a Tunisian man named Abu Mariam (ph). They don't find him.

UNIDENTIFIED MALE: I'm his brother.

UNIDENTIFIED MALE: Brother.

WALSH: The streets are covered with canopies meant to shelter ISIS fighters from prying coalition drones above. But despite the war, the

market's brimming. Even the wounded hobbling around.

Under siege, why is there so much food? Well, it's shipped in from nearby regime held areas, we're told. Commerce alive and well in the

caliphate. This shop even seems to offer to change dollars.

Sandbags give shelter from air strikes, but also defensive positions when street to street fighting reaches here. But some locals have already

made this hostile terrain. One activist from the group Ahra Alforat (ph) telling us how he pinned night letters, death threats, to the doors of ISIS

informants.

We can only get to them, he says, by leaving messages on their door like, we know who you are. This soon stops them. And some of our friends

started writing the word "free" on the walls of ISIS buildings. Then locals started. The elderly writing it on walls and children on chalk boards,

making ISIS wonder, who are these people. It's getting ugly for ISIS here. They've moved their prisoners out.

Top commanders have fled. Their lieutenants only drive around in low profile, normal cars. Their enemy is literally at the gate. ISIS' world

vanishing fast. And this may be among the last times we glimpse into their warped way of life.

Nick Paton Walsh, CNN, Irbil, northern Iraq.

(END VIDEOTAPE)

LU STOUT: ISIS also has an affiliate in the Philippines, and its militants are battling government forces in Marawi City. The battle has

left at least 66 Philippine soldiers dead, hundreds more wounded and thousands of civilians displaced.

Ivan Watson has been following the story. He joins us now live.

Now, Ivan, a month into this this deadly siege, how much progress is the government of the Philippines making against ISIS militants in the

south?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, first of all, unfortunately the death toll among troops went up to 70 killing in action

over the course of the weekend. And that's a sign of what a grinding battle it has been. The military saying that it has confined the ISIS and

the Philippines fighters to about four neighborhoods in the center of Marawi. But basically this illustrates just how surprised the Philippines

military and government were by this jihadist, this violent extremist threat, how tenacious these fighters were, and how well organized and

sophisticated they were to mount this audacious operation to capture the city that began more than a month ago.

(BEGIN VIDEOTAPE)

WATSON (voice-over): The ambulances arrived in a torrential downpour, unloading the most recent casualties from the Philippines' month-long fight

against ISIS militants hold up in the besieged city of Marawi.

[08:10:09] (on-camera): In almost four weeks of fighting, this hospital has treated some 340 casualties and more wounded soldiers keep

coming every day.

(voice-over): Among those treating the wounded, Lieutenant Colonel Jonna Dalaguit, who runs this military hospital. She's been an army doctor

for 20 years.

(on-camera): Have you ever seen casualties on a scale like this before?

LT. COL. JONNA DALAGUIT, CAMP EVANGELISTA HOSPITAL: No, it's the first time. It's the first time that I've seen this huge number of casualties.

WATSON (voice-over): Among the wounded, this sergeant who we've been asked not to identify.

Sprayed with shrapnel from a mortar round, he gets help from his 65- year-old mother Teresita.

(on-camera): What do you think about ISIS right now?

UNIDENTIFIED FEMALE: I hate them.

WATSON: You hate them?

UNIDENTIFIED FEMALE: I hate them.

WATSON (voice-over): The sergeant is a 17-year veteran of many other counterinsurgency operations, but he tells me the ISIS militants entrenched

in Marawi includes skilled foreign fighters ready to die in battle.

The military says they've rescued hundreds of civilians from the war zone. But in their struggle to save the city, they've also been bombing the

city.

In a recent visit to the region, Philippines' President Rodrigo Duterte apologized for the extreme measures.

RODRIGO DUTERTE, PRESIDENT OF THE PHILIPPINES: You will find in your heart to forgive my soldiers and government and me for declaring martial

law. I have no choice. They are destroying Marawi. I have to drive them out, but I am very sorry.

WATSON: The government is struggling to cope with the many people now suddenly made homeless.

(on-camera): This is what happens when the conflict comes to this corner of the Philippines.

More than 200 families, more than 1,000 civilians, packed into this school gymnasium, and this is just the tip of the iceberg.

(voice-over): In fact, more than 340,000 people have fled their homes in the last month. Among them, Tarhata Musari (ph) and her infant son.

(on-camera): What's your baby's name?

UNIDENTIFIED FEMALE: Martial Law.

WATSON: You named your child Martial Law?

UNIDENTIFIED FEMALE: Yes.

WATSON (voice-over): She gave birth in Marawi on May 23rd, the day ISIS invaded the city, amid explosions and gunfire. Just one hour later,

they fled on foot. The baby may be safe, but Musari (ph) lost her father in the panic. She says she has not seen him since.

(END VIDEOTAPE)

WATSON: Now, Kristie, that very worried mother went on to say that she's actually afraid of martial law on the island of Mindanao, because she

said that reminds her of decades past during dictatorship in the Philippines when her people were forced to suffer at the hands of the

government and the security forces. She clearly fears a repeat of that in the midst of this battle against these ISIS insurgents -- Kristie.

LU STOUT: Yeah, a battle not reaching week five, a baby named martial law. This is the new reality of Marawi. Ivan Watson reporting live for us.

Thank you so much for your reporting.

Now here in Hong Kong, protesters are calling for the full release of a leading Chinese dissident who is gravely ill. The Nobel Peace Prize

winner Liu Xiaobo is on medical parole and is receiving treatment for late stage liver cancer at a hospital in northeastern China. He has been

serving an 11-year sentence. The Nobel committee has expressed relief, but also deep concern, saying Liu should never have been sentenced to prison in

the first place.

Liu Xiaobo's name has been known since the crackdown on Tiananmen Square in 1989, and that was before one of Hong Kong's most famous

lawmakers was even born, but legislator Nathan Law told me that Liu's story went on to inspire his own activism in a way he could never have imagined.

(BEGIN VIDEO CLIP)

LU STOUT: Children of students who grow up in Hong Kong are not necessarily encouraged to become activists. So, how did you become

political?

JOSHUA LAW, MEMBER OF THE LEGISLATIVE COUNCIL OF HONG KONG: Well, the story begins when in 2010 when I -- when I knew that Liu Xiaobo was getting

the Nobel Peace Prize. But back then I was very ignorant towards politics.

After about Liu Xiaobo got the prize, the next day in the morning assembly the president of my school publicly denounced him, saying that,

oh, he's like (inaudible) forces and very bad for China's development. Then, I was very curious, because even though I don't know Liu Xiaobo, but

I know Nobel Prize.

Nobel, who -- are the ones who got Nobel Prize are the ones who contribute a lot in their field. So, I was very curious. So, what was a

person, if he's just like depicted by our president. He got the Nobel Prize, so I look for information. I look for what he's been doing, then I

had a lot of interest in human rights issues. So that really triggered my curiosity.

(END VIDEO CLIP)

LU STOUT: Hong Kong lawmaker Nathan Law there crediting Liu Xiaobo for his own political awakening.

Now, CNN's Matt Rivers is in Beijing with more on this story involving Liu. And Matt, what has been the reaction to the news, of Liu Xiaobo's

release on medical parole across China?

MATT RIVERS, CNN CORRESPONDENT: Well, across China, most people don't know who Liu Xiaobo is. And he's basically been scrubbed from the national

discourse by the Chinese federal government. They don't talk about him. They've banned his books. He was a prolific writer. They even banned his

name. So he is very much an enemy of the state, if you will, of China.

And as a result, most people here in China have never heard of him. And so in terms of the official government reaction, there was press

conference as the ministry of foreign affairs today. And the spokesperson said that this is an internal matter and that people should not be making

disrespectful remarks about Chinese internal affairs. And that's as far as the spokesperson would go, which is is not surprising. China doesn't

usually say any more than that. But the fact is that Liu Xiaobo is not a favored person by the Chinese government.

LU STOUT: Yeah, in fact, your coverage of Liu Xiaobo today has been routinely blacked out from screens inside China. We know this, that Li

Xiaobo has been receiving treatment for late stage liver cancer as of this week. Do we know anything about the quality of care that he's receiving?

RIVERS: Well, it depends on who you talk to. The Chinese government says that he's receiving care from eight of the most well-known oncologists

in the country at a hospital in Shenjiang (ph), which is the city in northeastern China where he is in a hospital right now. But what critics

are saying is that the fact that he is -- that he has late-stage liver cancer means that he didn't get good treatment while he was in prison and

that if he had been released earlier, or not released at all, perhaps his prognosis would be much better.

But the fact is that he does have late stage liver cancer and his prognosis is not good, and so people are saying the fact that it's gotten

to this point is a clear example of the fact that the Chinese government did not treat him in a humane way while he was in prison.

LU STOUT: Matt Rivers reporting live from Beijing. Thank you.

You're watching News Stream live from Hong Kong's harbor front, and up next one of the world's most expensive places to buy a home. We look at

the housing challenges facing Hong Kong 20 years since the handover.

Also, a high court ruling for U.S. President Donald Trump's controversial travel ban back in play. Just ahead, we'll examine whether

reunions like these could be affected and what it will take to enforce the new rules.

(COMMERCIAL BREAK)

[08:20:11] LU STOUT: You're watching News Stream live from in front of Hong Kong's Victoria Harbor. And we'll be down here all week as we

approach the 20th anniversary of the handover of Hong Kong to China. And over the next two days, we'll explore how the city has changed since 1997

and the issues affecting the people of Hong Kong in the years to come.

Now, Hong Kong is one of the most expensive places to live in the world. Housing prices have jumped almost 80 percent in the last 20 years.

An average family now pays 19 times the money is makes in a year just to afford a home.

And many of these flats are tiny.

Now, the government predicts four out of every 10 new apartments built next year will be smaller than 430 square feet.

And then there's the subdivided flat, it's an apartment that is cut into several rooms to be leased out at lower prices. A room smaller than

100 square feet can rent for nearly $390 a month.

But there are worse options. Some of the city's poorest, they live in so-called cage homes. The entire living space consists of a bunk bed

inside a metal cage.

Now, a key election promise by Hong Kong's incoming leader Carrie Lam was to make housing more affordable. And I asked the man who ran her

campaign, Hong Kong politician and businessman Ronald Arculli about what it's become so expensive to buy a home in this city.

(BEGIN VIDEO CLIP)

RONALD ARCULLI, BUSINESSMAN: I think in some ways it's probably a market failure, rather than, you know, putting everything at the doorstep

of the government.

LU STOUT: A market failure, what do you mean by that?

ARCULLI: Market failure in the sense that when the business sector, the development sector knows that there is limited supply of land, you

know, clearly they work within those parameters. And with the population and with the aspiration of Hong Kong people wanting to buy their own homes.

You know, where demand exceeds supply, you could look at the supply side.

LU STOUT: Property prices are so high, there is a lot of angst and anger, even on the Middle Class of Hong Kong. So, what can be done to make

housing more affordable? Can there be more supply released?

ARCULLI: I'm hopeful that Carrie will find some out of the box thinking to increase the land supply, and also -- to also shorten the

development cycle, because even if you can find land, you can put in infrastructure and all that, so maybe one possibility is instead of

government doing it, maybe the private sector could join in that process.

(END VIDEO CLIP)

LU STOUT: And that was part of my conversation with Hong Kong politician and business leader Ronald Arculli.

And stay tuned for more on this week's On China as the people of Hong Kong, both young and old, tell us about their hopes for the city's future.

It airs this Friday, 5:30 p.m. in Hong Kong, 10:30 a.m. in London only on CNN.

Now, U.S. President Donald Trump calls a Supreme Court ruling on his controversial travel ban, quote, a clear victory for national security.

Now, the high court on Monday cleared the way for implementation of parts of his order barring entry for people from six mostly Muslim

countries. The court's decision still allows entry to people who can show a bonafide U.S. connection. Now, the limited ban could take effect later

this week.

And joining me now from the White House is CNN senior Washington correspondent Joe Johns. Joe, no surprise here that President Trump was

very pleased by the court's decision, but it's not a complete victory is it?

JOE JOHNS, CNN WHITE HOUSE CORRESPONDENT: Not a complete victory at all.

I think the takeaway from this, if you will, is that if you are a traveler to the United States, and you're from one of the targeted six

Muslim majority countries, then you have a bonafide connection, in other words, a business a connection, or a family connection, then you can come.

But if you don't have that kind of connection, you need to stay away at least for now.

And the other thing that's important to say is that the court is going to decide on the larger case expected to hear arguments on it some time in

October, but that could change simply because the 90 day expiration period for the president's travel ban could, at least in concept, end at the end

of September, which is before the new term of the Supreme Court even begins.

So, there are a number of balls up in the air here, but for now, it is a victory for this administration, because they'd not been able to get any

vindication in the lower courts. Back to you.

LU STOUT: Yeah, and now we have to interpret some interesting wording from the Supreme Court. The Supreme Court said that the ban may not be

enforced against foreign nationals who have a credible claim of a, quote, bonafide relationship with a person or entity in the United States. What

does that mean?

JOHNS: That means business or family relationship, essentially, but it is also fairly murky because that could put certain lower courts, and

some of the dissent suggested, lower courts that already kicked out the earlier bans in the position of having to decide exactly what that means,

and it could create chaos. There's some concern by many experts and observers, it could create more chaos in the airports, as the government is

called on to determine what constitutes a bonafide relationship.

LU STOUT: Yeah, so there could be more headaches for air travelers this summer because of all this. Joe Johns reporting live from the White

House. Thank you so much, John, take care.

So, something of a victory on the travel ban, much less so on another Trump campaign promise, a Senate Republican bill to replace Obamacare is

now on shaky ground. Suzanne Malveaux brings us a devastating report that has even Republicans worried.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: The Senate health care bill teetering on the edge of collapse after a devastating non-partisan CBO

report estimates that the Senate GOP bill would result in 22 million more Americans becoming uninsured by 2026, making a vote that much harder.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: I think you put all this together and get to 50 is going to be very tough, and the CBO score doesn't

help any. If you have problems with the bill before, you probably have more problems now.

MALVEAUX: A White House official conceding to CNN that Republicans are right on the threshold of losing the health care battle.

SEN. CHARLES SCHUMER (D-NY), MINORITY LEADER: The report makes clear Trumpcare plan would be a cancer on the American health care system.

MALVEAUX: Four GOP senators are currently planning to vote against even starting debate on the Senate floor, which would sink an effort to

pass a bill this week.

SEN. RAND PAUL (R), KENTUCKY: I won't vote to proceed to it unless the bill changes. We have reached out to Senate leadership and said we will

negotiate. We've had no phone calls.

MALVEAUX: Moderate senator Susan Collins explaining her decision in a tweet, noting, "I want to work with my GOP and Democratic colleagues to fix

the flaws in ACA. CBO analysis shows the Senate bill won't do it."

SEN. LISA MURKOWSKI (R), ALASKA: These numbers that we're talking about, these are men and women. These are our families that are being

impacted. So let's please get it right.

MALVEAUX: The number of GOP senators currently opposed to the legislation has grown to six with at least three others expressing

concerns. Leadership can only afford to lose two votes to pass the bill.

SEN. JOHN MCCAIN (R), ARIZONA: My state is a Medicaid expansion state, and so we have a lot of issues.

MALVEAUX: The CBO report also estimates that over the decade the Senate bill would reduce the national deficit by $321 billion largely by

slashing Medicaid funding by $772 billion, leaving 15 million fewer Americans covered under Medicaid, hitting older and lower income enrollees

the hardest while providing a $541 billion tax cut to the wealthy and insurers. The legislation would initially cause health care premiums to

rise but would ultimately lead to a 30 percent reduction by 2020.

SEAN SPICER, WHITE HOUSE PRESS SECRETARY: He had several calls over the weekend, hearing ideas and opinions about how to strengthen it. And

he'll continue to support ways to make the bill stronger.

MALVEAUX: President Trump ramping out outreach to skeptical lawmakers while the White House blasts the nonpartisan CBO analysis, saying "The CBO

has consistently proven it cannot accurately predict how health care will impact insurance coverage."

Vice President Mike Pence will host four Republicans for dinner tonight, three who are undecided, one who is opposed to the bill, to try to

get them on board. At the same time, Senator Majority Leader Mitch McConnell will hold a GOP luncheon. We are told that he is still pushing

for a vote this week, but after that lunch he may reassess.

Suzanne Malveaux, CNN, at the Capitol.

(END VIDEOTAPE)

LU STOUT: Meanwhile, the U.S. is about to release its annual human trafficking report. It's known as the TIP report. And up next, what the

report means from countries around the world and their relationship with the Trump administration.

(COMMERCIAL BREAK)

(HEADLINES)

[08:32:37] LU STOUT: Now, the U.S. State Department is about to release its annual trafficking in persons, or TIP, report, the first under

the new Trump administration. Now, Lynda Kinkade is following developments from Atlanta. She joins us now. And Lynda, every time this report is

revealed, it shows us the countries that are just not doing enough to fight modern-day slavery. So what are you looking out for this year?

LYNDA KINKADE, CNN INTERNATIONAL CORRESPONDENT: That's right, Kristie. Well, this year is the first time the report will be released

under the Trump presidency. And we know that 187 countries and territories will be ranked in accordance with how effective their governments are at

tackling the issue.

Now, we know that -- we'll be looking for which countries will be upgraded and which will be downgraded. The report is set to be released in

about two hours' time here at the U.S. State Department. U.S. Secretary of State Rex Tillerson and first daughter and presidential adviser Ivanka

Trump is set to give remarks and release that report. President Trump has said that this issue will be a key priority. He has called it an epidemic.

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I want to make it clear today that my administration will focus on ending the absolutely horrific

practice of human trafficking.

KINKADE (voice-over): In the early days of his administration, Donald Trump signaled that human trafficking would be a top priority. It's an

international issue that also fits Trump's America first rhetoric.

TRUMP: Getting worse, and it's happening in the United States. In addition to the rest of the world, it's happening in the United States,

which is terrible.

KINKADE: Trump's daughter and counsellor, Ivanka, has taken keen interest in the matter, hosting a human trafficking roundtable at the White

House in May. And a listening session with her father in February.

Mr. Trump has tied trafficking to another major policy issue.

TRUMP: The wall is going to get built. And the wall is going to stop

drugs and it's going to stop a lot of people from coming in here that shouldn't be here and it's going to have a huge effect on human

trafficking.

KINKADE: Now the us State Department is about to release its annual Trafficking in Persons, or TIP, report for the first time under the new

Trump administration.

Since 2001, the report has been grading countries on how well they fight human trafficking. Tier-one countries comply with the minimum

standards of protecting trafficking victims. Tier two includes countries who do not fully comply but are making significant efforts to improve.

There's also a tier-two watch list for countries who do not meet the minimum standards, have a significant or increasing numbers of trafficking

victims, but are taking steps to do better. Finally, there's a third tier for countries not in compliance and not making any effort to improve.

The U.S. was included in the report for the first time in 2010 under the Obama administration, listed as a tier-one country.

With a new administration in town, will there be any changes to watch for? Any new weapons in this battle?

[08:35:38] TRUMP: One of the big, big plagues of the world, not our country only, the world, human trafficking.

KINKADE: We'll just have to wait and see.

(END VIDEOTAPE)

KINKADE: Now, this is the 17th year that the report will be handed out. And the U.S. State Department calls it the world's most comprehensive

resource for tracking government efforts to end human trafficking -- Kristie.

LU STOUT: Lynda Kinkade reporting live for us from Washington. Thank you so much, Lynda.

And we will be broadcasting Washington's release of the report live in a couple of hour's time. Find out which countries U.S. believes are

improving in the fight against modern-day slavery and which countries are losing ground. That happens at 10:30 a.m. in Washington, 3:30 in the

afternoon in London, 10:30 p.m. Hong Kong time.

Now, Russia's ambassador to the U.S. who has spent months at the center of a political storm in Washington, is returning home after nearly a

decade in his post. Moscow says it's all routine. A farewell reception is even planned for Sergey Kislyak next month, but as our Matthew Chance

reports he leaves under a cloud of suspicion.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: He's been at the center of damaging allegations of collusion between Moscow and Trump

officials, allegations that have made this seasoned Russian diplomat a toxic figure in Washington, a cloud of suspicion hanging over his every

handshake.

SERGEY KISLYAK, RUSSIAN AMBASSADOR TO THE U.S.: I personally have been working in the United States so long that I know almost everybody.

CHANCE; Russia's foreign ministry denies allegations of improper contact and says Kisylak's recall to Moscow after nine years as ambassador

would happen in a planned manner. According to its spokeswoman, he would enter the history of bilateral relations as a person who did everything

possible for their development.

But he's likely to be remembered for the chaos wrought by his undisclosed meetings with members of the Trump team. In their wake, a U.S.

national security advisor has resigned, the U.S. attorney general stood aside from investigations into Russia, and President Trump's own son-in-law

and advisor named as a point of focus in an FBI investigation.

The recall of Sergey Kisylak to Moscow has not yet been officially confirmed, but his eventual departure may draw a line under a particularly

damaging phase of U.S.-Russian diplomacy.

Matthew Chance, CNN, Moscow.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream live from the Hong Kong harbor front, and we're taking a special look at the city ahead of the 20th

anniversary of the handover to China. And up next, she's been arrested by police, dropped by sponsors and blacklisted from China. We'll hear from a

Hong Kong pop star who is also a democracy activist.

(COMMERCIAL BREAK)

[08:40:08] LU STOUT: Welcome back to New Stream. We're live in front of Hong Kong's Victoria Harbor as we approach the 20th anniversary of the

handover.

In this city with a population of more than 7 million, being a Hong Konger means a lot of things to a lot of people. And today, we hear from

Cantopop star Denise Ho who is an outspoken critic of Beijing.

(BEGIN VIDEOTAPE)

DENISE HO, SINGER AND ACTIVIST: This word as a Hong Konger, it's always been something sthat I was in search of.

My name is Denise Ho. I am a singer from Hong Kong. And I am a pro- democracy and LGBT activist.

We are not that sure, you know, where our origins are actually from. We are not exactly, you know, Chinese from China, but we are not British

either.

The fact that we can speak our minds and we had the freedom of speech, that is quite different from, you know, Chinese from Mainland China.

Well, back in 20014, I think the moment where I decided that I had to speak out is the moment the first tear gas was thrown into the public, into

the crowds. That was a very enraging moment for me and for many other Hong Kong people. Everything just happened so fast and the way that the Hong

Kong government reacted, it was like totally unacceptable for us.

I have been banned from China since the Umbrella Movement in 2014. I have not had any corporate sponsorships or commercial jobs since then.

I think I have this responsibility to do the right thing.

It is quite difficult, you know, to come to a compromise from both sides where the Chinese government would be comfortable with the level of

insecurity and all that and that Hong Kong, the Hong Kongers would be happy with the level of freedom that we have.

I don't think that anyone has the answer.

(END VIDEOTAPE)

LU STOUT: And that was Denise Ho.

And that is News Stream. I'm Kristie Lu Stout. And I'll be back here all this week as we approach the 20th anniversary over the handover. And

tomorrow, we look at one of the biggest fears of Hong Kong people: the erosion of the city's freedoms by China.

END