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CNN Discovers Child Labor In Cobalt Trade; Essential Element For Cell Phones And Electric Cars; China's Foreign Minister In North Korea; World Headlines; Facebook Rolls Out New Privacy Features Amid Various Scandals; The Booming Market Of Artificial Intelligence. Aired 8-9a ET

Aired May 02, 2018 - 08:00   ET

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


[08:00:00] (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong, and welcome to News Stream.

(BEGIN VIDEO CLIP)

LU STOUT: Green energy turned dirty, a CNN investigation uncovers children mining an element used to power electric vehicles. A deal in limbo, world

leaders play for Donald Trump's attention over the future of the Iran nuclear agreement. And finding love on Facebook? Mark Zuckerberg unveils

new features as his company tries to recover from that data scandal.

(END VIDEO CLIP)

LU STOUT: It's the technology at the top can drive us for the greener future, battery powered electric cars are powering the clean energy

revolution. But a CNN investigation has uncovered a dirty secret at the heart of these electric vehicles.

Children, working with the battery's key component cobalt as mined. The Democratic Republic of Congo is the main export of cobalt globally. Most

is mined industrially, but over a quarter of the mineral is mined artisanally or by hand.

CNN's Nima Elbagir, Dominique van Heerden, and Alex Platt traveled to Kolwezi in the DRC. It is the epicenter of a modern day cobalt gold rush.

And what they found was alarming. Here is their exclusive report.

(BEGIN VIDEOTAPE)

NIMA ELBAGIR, CNN CORRESPONDENT: Christian and his friends are digging 20 meters down, taking turns at 24-hour shifts. There's no light, and little

oxygen, but what they bring up is precious. This is the start of a supply chain leading all the way from this makeshift mine to your luxury battery-

powered car.

The sacks are full of cobalt ore, a crucial component in lithium ion batteries set to power the coming green energy revolution, but at what

cost. There is growing evidence that the cobalt supply chain uses child labor.

Companies say they are working hard to verify the source of all their hand- mined artisanal cobalt, but that it's a difficult task. We're here to follow the supply chain, and see if we can do it for them. Before we set

out even the local governor warns us to expect to see children at work.

We arrive at the Musonoi river mine where the cobalt ore is washed to grind it down. Although we've been given permission to film here, as soon as

they see us officials begin to scare the children away.

Not all of them though are fast enough. Some work on. One young boy staggers under his load. His friend sees the camera, and he drops his

sack. They've clearly been warned. A mining ministry official spots this boy carrying cobalt has been captured by our cameras. His response is

brutal. Later, we ask him why he struck the child. He refused to answer.

We've now witnessed for ourselves that children are working here, that they are involved with the production of cobalt, and we've seen the products of

that child labor loaded on to a variety of different vehicles. I'm going to jump into this car that's headed to one of the main public selling

cobalt selling depots.

I'm told we're going to go past the market. This is where the cobalt is bought by brokers. It's where it first enters the supply chain.

The car company Tesla for one says its cobalt sources are audited, and issued with certificates of origin. They wouldn't say from where, or how,

but there is no sign of certification here.

We watched the brokers set the price, and none of them ask where the cobalt is from, or how it was mined. But the mining output tripled, and the fear

is even more children are being pressed into labor. Why? Because cobalt is skyrocketing in price. Supplying your green electric car comes at a

cost.

We have permission to film here, but local mining officials once more try to stop us. Our producer captures the scene on a hidden camera. The

government says it's working to combat child labor.

[08:05:01] But the same mining ministry officials tasked with enforcing an ethical supply chain have been the ones attempting to block our

investigation.

A police officer arrived, and we're told we need to leave for our own safety. We do, but not before we spot a red truck loaded up, and leaving

the very same market.

It matches the distinctive red of the truck used by one of the main international cobalt supply zones -- China's Congo Dongfang Mining. In the

end, we decide to follow it.

We can't afford to lose him because where he delivers that cobalt load, that is the link between the children that you saw down there on the river

front, and the global markets.

As the truck pulls into its final destination, guards rush out to block our cameras. We later received a warning phone call. This facility is under

the protection of the presidential guard. We're told to stay away.

What's going on? That appeared to be a CDM truck, but this isn't a CDM facility. Tax records show it was declared non-operational three years

ago. Rising smoke, and export records show cobalt is still produced here.

CDM's parent company Huayou tells CNN they did have a relationship with the facility which ended only last year. They're disturbed enough to launch an

investigation into our findings although they state other companies also use red trucks.

CNN visited three sites to show how widespread they use of child labor is. At this mine, in spite of our permission we eventually had to resort to

filming undercover to capture the children.

UNIDENTIFIED MALE: How old is he?

UNIDENTIFIED MALE: Nine years old.

ELBAGIR: We couldn't prove where exactly the dirty cobalt enters the international supply chain, but we witnessed that it does. Mercedes-Benz,

Tesla, Fiat Chrysler among others say they have a zero tolerance policy for the use of child labor.

But they acknowledge they are unable to fully map their supply chain due to its complex nature. Car makers simply cannot promise consumers their

products are 100 percent child-labor free.

This is the artisanal mining cooperative called Kasulo. It's run by the main international supplier CDM. Rows and rows of red trucks like the one

we followed await pickup here.

Access and entry are controlled to block the presence of children, and certificates of origin CDM say are dispensed in controlled circumstances.

This is what the big brand names who source their cobalt from Congo believe govern their supply. But this is the exception, not the norm. The cobalt

from Kasulo accounts for less than a quarter of the country's artisanal cobalt exports.

Here, the ministry of mining has to countersign the certificate of origin to be considered valid. So the very same entity whose officials CNN found

complicit in hiding the presence of child labor at the artisanal mines we visited is responsible for certifying the cobalt here is child-labor free.

After 10 day sin Congo, our contact advised us to leave for our own safety. But what have we learned? At the main markets nobody asks where the cobalt

for sale is mined or how. We followed a truck to an operation that is pumping dirty cobalt into the international supply chain under the aegis of

the Congolese presidential guard.

We witnessed mining ministry officials harassing children to hide them from our cameras while others blocked our filming. All employed by the same

Congolese authority car makers entrust to issue the certification.

But from what we've witnessed it's clear, no manufacturer can fully assure you that your electric car is truly ethical. And as demand for essential

cobalt soars, it's children like this little boy who are paying the real price.

(END VIDEOTAPE)

LU STOUT: And before the team left Congo Nima Elbagir spoke to the provincial governor about what CNN found on the ground there, and blamed he

interference and aggression at the mining sites on suspicions among the local population that foreigners (ph), and NGOs are trying to bring down

President Kabila's government.

(BEGIN VIDEO CLIP)

ELBAGIR: Your transparency and your willingness to allow us access to these sites were not reflected on the ground. We were subjected to

intimidation.

[08:10:00] We were harassed. Children were harassed in front of us. They were pushed. They were physically intimidated to leave the sites. So

while we commend what we're hearing from you, what we saw on the ground paints a darker picture I think than you yourself are aware of.

GOVERNOR RICHARD MUYEJ, LUALABA PROVINCE, DRC (through a translator): There's a general view that people are now using cobalt to bring down

Kabila. So there's a kind of resistance and if we're not careful we might find ourselves on the brink of aggression.

But to prove our good will in this, when I learned that there had been these incidents I brought in our police commissioner, the head of our

police. I did this because when I assessed the situation, I concluded there had been a misunderstanding.

We have nothing to hide. What we really want is good will. When we make an effort, we would like to be treated fairly. Given that important cobalt

production is situated in the Congo, it will not be easy to skirt the issue. You and we must work together to make the issue a traceability-

transparent, and to make sites safe, and regularized.

The private companies are earning huge amounts of money, but the population remains poverty-stricken, and that is not fair. I think that true success

must involve a win-win situation for everyone involved. If only one side profits from a situation that gives rise to resentment.

(END VIDEO CLIP)

LU STOUT: OK. So he acknowledges that there is a problem. The governor added that there has been an improvement in the situation in recent years.

He said that their goal is for no children to be working in the mines.

But that progress is overshadowed by a high level of poverty. Nima Elbagir joins me for more on this report. She is in London, and she joins us now.

And, Nima, I mean, wow. It's really...

ELBAGIR: Thank you.

LU STOUT: ... harsh truths that we learn from your reporting to say, that there is absolutely no way electric car makers from Tesla to BYD to Nissan,

et cetera, no way that they can promise their EV's are 100 percent child labor free. So, what does that mean for the consumer? What can we do to

make sure our choices are free of child labor?

ELBAGIR: Well, the good news is that everyone we've spoken to in times of the organizations that work within these communities like amnesty who

spearheaded so much of this original reporting, they say what you shouldn't do is throw your device away.

Don't stop buying because then, you with the consumer lose your power. What needs to happen is companies need to hear from consumers, and they

need to know that transparency matters to consumers.

In China for example, where so many of these -- of the supplies are based, in fact the largest supplier of artisanal mined cobalt is Chinese, and they

have signed up to the organization of economic cooperation development frame work.

Now what that does is that allows you as the consumer to look at the supply chain all the way through, and therefore, see the gap because the problem

is where we lost that dirt cobalt as it went to this matter, that's exactly where the international organizations lose the dirty cobalt. It's like a

black hole.

We know it ends up in the international supply chain, we just can't trace where. But also, what's really important is the companies to be honest

with consumers. Why is it that we needed to do this digging to know that they can't trace their supply chains? Why is it that you are the consumer,

Kristie, and aren't aware of this, so that you can make an educated choice?

LU STOUT: And that is the thing. We need to understand the problem, thanks to your teams reporting. We need to make that educated choice, put

the pressure on the carmakers, but also on other players involved in the supply chain.

You mentioned China, path of all cobalt passes through China. If China is part of the supply chain, should China be taking a leading role here in

ending this practice of child labor?

ELBAGIR: Absolutely. And China already is signing to a lot of the key framework, like that OECD (ph) framework, the Chinese Chamber of Commerce

needs a signature for that. They're also pushing a big global initiative.

But more needs to happen. We need to stop treating the Congo as if it is, you know, that horrible mythological heart of darkness that is too far

away, and too difficult to get to. If we can get to it, then manufacturers can get to it, then the inspector can get to it.

And the amount of money that is being made, the Congo in the next few years is going to account for three quarters of the world's cobalt. That is a

lot of money. There should be enough money to spare for the intentional due diligence, and intelligent due diligence to be done.

LU STOUT: Nima, we are now just going to put a pause for our conversation for just a moment, a lot more to get to on this issue.

[08:15:00] We're going to bring you back in just moments, so please do stick around. And it's not just the DRC, the Democratic Republic of Congo,

where cobalt is being mined. In fact, this mineral is found on five different continents. According to the U.S. Geological Survey, 4,000

metric tons of cobalt are mined in the Philippines alone, in Australia, the number is even higher, 5,000.

And now know that we know what Cobalt is, where it comes from, and the world children play in mining it, and producing it, consider this, there is

good chance that you're carrying something around your pocket, or handbag, or in your hand right now that may have cobalt inside it. CNN's Clare

Sebastian has more.

(BEGIN VIDEOTAPE)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: Now is the time to double down our renewable energy, and bio fuels, and electric vehicles.

CLARE SEBASTIAN, CNN CORRESPONDENT: The U.K. government with industry in the U.K. is supporting the growth of this industry.

UNIDENTIFIED MALE: If we take a look what the Chinese are doing, they are talking about having 7 million electric vehicles on the road by 2025.

Today they have, maybe just over 1 million.

SEBASTIAN: The global race for a low carbon future, government and businesses from Silicon Valley to Shenzhen are going all in on electric

cars.

And for one, once its obscure element it sparked a gold rush. For the last two years, cobalt prices had spiked 300 percent, and that is because

experts say, it has one specific property critical for electric cars.

UNIDENTIFIED MALE: It is really to prevent what's called, thermal run away, and that is just a technical term for the battery getting hotter, and

hotter, and hotter, and ultimately exploding.

SEBASTIAN: Can you have an electric car without cobalt?

UNIDENTIFIED MALE: You can, but it affects energy density, it affects the cycle life of the car overall.

SEBASTIAN: Well, electric car need a lot of cobalt.

UNIDENTIFIED MALE: This is the typical Tesla model assets 85 kilowatt hour, that's roughly about 112 pounds of lithium, and about maybe 15 pounds

of cobalt.

SEBASTIAN: It's likely many of us are actually carrying a few grams right now inside our cellphones, the cobalt is buried deep in the battery's

chemistry, not just on iPhones, but most modern cellphones. How much cobalt within this iPhone?

UNIDENTIFIED MALE: Probably three grams, three to four grams. And the thing about the number of iPhones, or numerous cellphones that are sold

globally, it starts to add up.

SEBASTIAN: And in the future which many believe is increasingly battery- powered, the cobalt rush is not over yet. Clare Sebastian, CNN Money, New York.

(END VIDEOTAPE)

LU STOUT: The cobalt rush is on. I want to bring Nima Elbagir back in. And, Nima, a number of carmakers, tech firms use cobalt. What did they

have to do now to make sure that child labor is blocked out of their supply chain?

ELBAGIR: Well, we have spoken to a number of them. First up, most of them aren't even transparent about how their supply chain works.

Out of the top cobalt manufactures that we've spoke to, only two, BMW and Renault were able to point to their supply chain, and publicly show us how

their supply chain all fit together.

So we need transparency, so that we can stop finding out where the problems are. And BMW are looking at something as potentially revolutionary as

getting hold of their own mine, closing their supply chain in a way where they could be in control entirely of the circumstances on the ground.

The reality that we have come up again, to the round (ph) of a comic has come up against, is that although there are other sources of cobalt, you

cannot take the Congo out of your supply chain. It is just too crucial, it's too big, it's too key.

So you need to stop behaving responsibly, and most importantly, Kristie, you need to be honest with your consumers. It shouldn't have taken us

getting on a plane, and going to the Congo for people to discover this.

LU STOUT: Yes. And we thank you for your reporting, for sharing this discovery. You know, exposing such a dirty train in our so-called clean

tech products. Nima Elbagir, thank you so much, and take care.

ELBAGIR: Thank you.

LU STOUT: Now you, our viewers, you can dig deeper into her powerful reporting to find more on our website, much more on the modern-day cobalt

rush, including an interactive segment that traces what Nima, and her team uncovered. Just go to CNN.com/freedom.

There were more questions about the future of the Iran nuclear deal, the French President said that the current deal is not sufficient on its own.

We will be live in Paris, next.

[08:20:00] (COMMERCIAL BREAK)

LU STOUT: Welcome back. Now, there is growing uncertainty about the future of the Iran nuclear deal, following Israel's claim that Tehran is

still pursuing nuclear weapons. The French President, Emmanuel Macron, says the existing deal is not sufficient on its own.

And a broader agreement will have to be negotiated. Meanwhile, Israel's Prime Minister is defending those dramatic accusations made against Iran.

Now, the U.N. nuclear watchdog has come out as well saying that there is no evidence that Iran try to produce nuclear weapon after 2009.

But Benjamin Netanyahu says that he has exposed the truth that Iran did not want the world to hear. Let's get more now on Emmanuel Macron's comments.

Melissa Bell is standing by for us in Paris. And, Melissa, Macron, again he says the current Iran deal is, in his words, not sufficient, but does he

believe Donald Trump will stay with it for now?

MELISSA BELL, CNN CORRESPONDENT: He is certainly doing all he can to bridge the extraordinary divide deal, Kristie, between Donald Trump's

position of total skepticism with regard to the Iran deal, and other signatures who were firmly behind it, trying to convince, one, a better and

wider deal as possible.

But that initial deal needs to be a part of it for those new conversations to begin, convincing its other allies that looking for a wider doesn't mean

that the first one needs to seize to exist.

And so, ever since (Inaudible), since those comments by Benjamin Netanyahu that you refer to, all eyes are very on Emmanuel Macron, and what he

believes is still possible. Here is what he had to say over night, speaking from Australia, Kristie.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT: I don't know what the U.S. President will decide on the 12th May. I just want to see what is the decision will

be, we would have preferred such a boulder negotiation on the border deal because I think nobody wants a war in the region. And nobody wants

honestly an escalation, in terms of tension in the region.

(END VIDEO CLIP)

Emmanuel Macron's position is clearly this, Kristie, that he believes there is some room for negotiation, for compromise that Donald Trump's concerns

can be met, that those who are in favor of the deal can be satisfied on its validating (ph), even as for the negotiations.

And it, of course, comes to worse, and on May, Donald Trump decides not to stick by the deal, while Emmanuel Macron will be able to say at least, we

have kept the Americans involved in this multilateral conversation, looking towards a new larger framework in region. Kristie.

LU STOUT: And the competition for Trump's attention last week, it seems Macron had Donald Trump's attention this week's because of those dramatic

presentations, the props by Benjamin Netanyahu it seems that the Israeli leader has Trump's mind share. I mean, do you think this tug-of-war for

Trump's attention concerns officials there in France?

BELL: I think there is a lot to play for it, clearly when Donald Trump himself thinks will be crucial, there is of course wider skepticism in the

Republican Party.

But I think that what we have heard these last two days from a officials, in terms of the possibility that this current deal might be kept, which

clearly is a preferred option for Europeans, does suggest that the door is open.

We have heard those from John Bolton, and from Mike Pompeo at the end of that Middle Eastern tour finishing in Amman. But this isn't really leaving

open the possibility saying look, these negotiations for Europe were on going.

They have maybe (Inaudible) by May 12, we can find sort of agreement. And that was good news, because it suggested that the deal hasn't definitely

been taken off the table by Americans.

[08:25:04] They haven't decided yet from what those men have to say, that they are going to put this deal.

LU STOUT: Melissa Bell live in Paris for us, thank you. Now, just days since that historic meeting of the North and South Korean leaders, China's

Foreign Minister has arrived in Pyongyang.

Wang Yi is likely to get a briefing on what went on during those talks, but Beijing is also looking ahead to that potential up coming summit, between

Kim Jong-un and Donald Trump. Matt Rivers has more from Beijing.

MATT RIVERS, CNN CORRESPONDENT: Well, Kristie, this is an important trip for China. Officially, the government has said that the Foreign Minister's

trip to Pyongyang is all about continuing the so-called high-level exchanges that President Xi Jinping and Kim Jong-un agreed upon when Kim

came here to Beijing about a month ago no.

But in terms of any more details, we don't really have much yet, and that is normal. Usually, anytime a Chinese official goes into North Korea,

details of the trip are not released until after it's over.

And that official is back home, and at least so far, that does seem to be the case this time as well. So in no affirm details about the trip from

either side, we're left to ask the question, well, what is going on there, and why is this trip happening now?

Every single analyst that we've spoken to has said that Foreign Minister Wang Yi will likely try to get information, more information about the

meeting last week at the DMZ between South Korean President Moon Jae-in and Kim Jong-un.

He will try and find out more about what was said between those two men. And he also tried to find out more about North Korea's strategy heading

into that expected meeting between Donald Trump and Kim Jong-un.

But there is wide agreement among analysts and experts that we've spoken to, that this trip may not only be about listening to the North Koreans, it

would also be in part about communicating China's position on negotiations.

What they want to see happen going forward. This trip by the Foreign Minister does seem to be in line with a series of actions that China has

taken recently to make sure that it has its interest looked after during these different rounds of negotiations.

Most experts that we've spoken to suspect that there is some concern in the halls of power here in Beijing that China could be marginalized in some way

during these talks. And so look at what you've seen.

You've seen xi Jinping meet with Kim Jong-un, shortly after that, a high- level Chinese delegation met with Kim in Pyongyang. Now, the Foreign Minister is there, and there is talk of a possible visit to North Korea by

Xi himself in the near future.

All of that seems to be the Chinese government making sure that its numerous strategic interests on the Korean Peninsula are going to be

represented as the negotiation process moves forward, and they have long pushed for a return to six party style talks, diplomatic negotiation that

included the U.S., South Korea, China, Japan, and Russia.

In the end though, both China and North Korea holding the details of this trip close to the best, and we will likely not know too much more about all

this until the trip ends sometime on Thursday. Kristie.

LU STOUT: Matt Rivers there. Now, Facebook has had a pretty rough time with this data privacy scandal, but it has a new feature off its sleeve to

regain user's interests by helping them find love.

(COMMERCIAL BREAK)

[08:30:00] (COMMERCIAL BREAK)

KRISTIE LU STOUT, CNN NEWS STREAM SHOW HOST: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream" and these are your world headlines.

French President Emmanuel Macron says the Iran nuclear deal is not sufficient on its own and a broader agreement will have to be negotiated.

It follows a presentation by Israel's prime minister which he accused Iran of lying about its nuclear program. U.S. President Donald Trump has until

May the 12th to decide whether to remain in the deal.

A second round of voting to elect a new Armenian prime minister has been scheduled from May the 8th. The announcement comes after the governing

party blocked opposition candidate Nikol Pashinian in his bid to become prime minister on Tuesday. Pashinian was unopposed but still he did not

receive enough votes.

Sources tell CNN that special counsel, Robert Mueller, raised the possibility of issuing Donald Trump a subpoena. That would compel him to

testify before grand jury in the Russia investigation. Lawyers for the president are preparing to fight the subpoena if it comes.

Facebook CEO unveiled a series of new features at F8 Conference as his company grapples with fake news and data concerns. The site has been under

fire for the massive amount of data it keeps on users from their browsing habits to their phone contacts.

Another company says users can go ahead and delete that. It is adding a clear history feature that will wipe your browsing information, but you

need a Facebook account to do that. Zuckerberg has previously admitted Facebook collects data from people who never signed out.

He also seemed to follow up on a change that he wrote about earlier this year, prioritizing news articles that are seen as trustworthy to fight fake

news, but it is not just about fixing problems. For Zuckerberg, he did spark quite some excitement by unveiling Facebook's own dating service.

(BEGIN VIDEO CLIP)

MARK ZUCKERBERG, CEO, FACEBOOK: I want to be clear that we have designed this with privacy and safety in mind from the beginning. You friends aren't

going to see your profile, and you're only going to be suggested to people who are not your friends who have opted into dating who fit your

preference, although I can't promise that you are going to get an e-mate (ph).

(LAUGHTER)

ZUCKERBERG: It's a tough world.

(END VIDEO CLIP)

LU STOUT: All right, to unpack all of that is technology journalist Charles Arthur. He joins us from Saffron Walden. Thank you so much for

joining us once again, Charles. A lot to get to hear.

But first, let's talk about that dating service. You know, after fake news, Russian ads, Cambridge Analytica, et cetera, et cetera, isn't it just a bit

strange for Facebook to unveil a dating app right now?

CHARLES ARTHUR, TECHNOLOGY JOURNALIST: Well, yes. This is Facebook's developer conference so it tries to show things it will have for third

party, the outside developers. And it's trying to impress them with things sort of been worked out ages before. They have been working on this for

months.

So all the (INAUDIBLE) and so on that will have been happening while this is being developed. They have to have something. They have to have some

sort of template (ph) to built with the conference (ph). I suspect other things went by the way that they have to remain with it.

In a way, it's a bit embarrassing. I think the bests are going around but it will be great way for people to (INAUDIBLE) a little bit. But the

question at this point, what is it going to other dating apps and possibly the bigger thing.

Match.com is sort of shared thing (ph). Match.com has made (ph) Tinder sort of shared thing and IIC (ph) as well, which owns match.com (ph), which

is shared (ph) the concern to big independent dating apps, if you like, as with Facebook because it got so many billions of people using it, simply

going to take over and would wipe them out.

LU STOUT: Yeah, absolutely. Match.com, Tinder, they got to watch out right now. But, you know, a dating app would likely use some really personal

details about ourselves. Should we trust Facebook to find love?

ARTHUR: It's a really good question. I got to say, you know, my dating days are far away (ph) in the past. You know, I have been married for 20

years. But I'm -- Mark Zuckerberg said that one in three people that get married these days meet online. But you'll see (ph) there seems to be a lot

of people who don't meet online. And we have to say that your behavior online is not really the same as your behavior offline. And really, if

you're going to have a relationship, a lot of times (ph) it's offline.

The question of, you know, will it match up people who spend a lot of time in Facebook with people who spend a lot of time in Facebook? I am not sure

about the great relationship actually.

[08:35:00] There is a lot of questions. Well, you know, there's actually quite a few questions. You're sitting there and you likely see so many

people will behave just sort of sitting and not agree (ph) with each other on their phones that you observe and (INAUDIBLE). It will be slightly

concerning if they do.

I think that Facebook maybe needs to be wary here because it is already seeing the aspect (ph) of -- you mentioned fake news, we mentioned the sort

of influence that we've seen (INAUDIBLE) where Facebook is in fact accused of having helped to incite violence against the Rohingya Muslims.

And (INAUDIBLE) was able to use Facebook to sort of inspire a lot of hate speech and getting by (ph). And there is the question of what would be the

unintended consequences with the dating app where Facebook matches you based on everything it knows about you. I don't know if it change your

mind, what to look out on the web, where you've been, what you've done.

But the very big question here about the unintended consequences by bringing people together through an algorithm thing to match each other.

But that's not necessarily --

LU STOUT: Yeah, that would be interesting to see. I mean, it could end up matching you into a mirror image of yourself to the worst version of

yourself, you know, based on how you present yourself on this platform.

Final question for you, not about love, what about trust? Because we know Zuckerberg unveiled another feature, the clear history tool, which allows

users to wipe clean their data. You know, it sounds great but is it going to work? Is this going to ensure our trust in Facebook?

ARTHUR: The reason Facebook is dong this because it has to if it wants to continue working in Europe. Europe is introducing legislation called GDPR,

General Data Protection Regulation, which require users of any service (ph), not just Facebook or Google or Twitter or whatever, to be able to

delete all the data that those companies know about them. So, if Facebook didn't have its clear history and it couldn't work in Europe and Europe has

got a lot of people.

So this is not some great idea that Facebook something had doing this to comply with the law and it makes sure the data will not widely than various

(ph) people. Does it increase trust? I'm not sure it makes a great difference. If people trust Facebook already, they probably don't want to

delete -- they don't trust Facebook then probably they have already deleted -- they will delete their account.

LU STOUT: Got it. It's a function that they are adding because they have to buy love (ph) over there. Charles Arthur, thank you. You're watching

"News Stream". We'll be right back.

(COMMERCIAL BREAK)

LU STOUT: AI is a booming market and device has seen the future technology to see just how far it has come. We've seen AI play complicated logic

games, control our social media feeds. Now, we are seeing a more creative side of AI through song. Samuel Burke has more. He joins us now. Samuel?

SAMUEL BURKE, CNN BUSINESS AND TECHNOLOGY NEWS CORRESPONDENT: Hi, there, Kristie. Well, it's interesting because artificial intelligence will have a

market value of about $16 trillion by 2030. The United Arab Emirates hopes that about $100 billion will be contributed to their economy through their

investments in artificial intelligence.

But so often when we talk about AI, people know it's seeping into their lives, Kristie, but they don't really know what it is. It is hard to

visualize or hear. We found a really interesting example here in Dubai of artificial intelligence creating music and that's where the CEO and co-

founder of Aiva Technologies, Pierre Barreau, comes in.

[08:39:56] You've actually created or rather your algorithms have created the first anthem ever created by AI, an "Ode to Dubai." You can call it the

Dubai City anthem. But anthems are so specific. They have a specific sound. They elicit a specific emotion. How on earth could artificial intelligence

really know how to create an anthem that elicit that feeling?

PIERRE BARREAU, CEO AND CO-FOUNDER, AIVA TECHNOLOGIES: Right. So basically we taught Aiva to learn music and music composition by reading from the

best, people like Mozart and Beethoven. And essentially when we trained Aiva on the requirements for this project, we showed it other infants (ph)

like composed by Beethoven, by other composers.

And by reading all the data and emotional labels associated to the data, the algorithm was able to in first (ph) the musical rules and understand

how --

BURKE: So B.B. King, the Sta-Spangled Banner for instance, is it taking all other banners into account?

BARREAU: It is taking accounts other people's music and then making its own interpretation of music and its own definition of music just like

humans do. We listen to other people's music and then we can write our own based on that.

BURKE: Let's listen to a little bit of it here, Kristie. It's the first anthem ever created by artificial intelligence. Let's take a listen and see

what you think.

The first time I heard it, I thought -- Kristie, when I first heard it, I thought yes, that sounds like an anthem. But I have to say this is all

part of a movie. You believe it's going to be personalized music. Artificial intelligence creating songs based on us. Where do you think you

can use that type of music and what spaces (ph)?

BARREAU: Right. So there's plenty of different spaces (ph) where we can use personalized music. I think that first of all, if you look at the state

of interactive common creation right now, it's pretty primitive. I mean, interactive medias like video games. They have hundred of hours of great

quality contents for great quality music but they only have two hours of music.

That means the same music loops 50 times over. And with artificial intelligence, we can actually create personalized music and creates hundred

hours of it in new spaces (ph) where human creates (INAUDIBLE).

BURKE: Wouldn't it just be a generic song based on what I'm doing with video game, the artificial intelligence would be adjusting the music there?

BARREAU: That's right. And the point is to make music in video games as a tailored frame (ph) as music is in movies, for example.

BURKE: Kristie, I use Spotify a lot to fall asleep so I could see maybe Spotify will invest in this type of technology eventually and maybe adjust

it to my sleeping pattern. Personalized music, I haven't thought of that concept before.

LU STOUT: Yeah, I mean, great innovation. Sounds interesting. As you point out, sounds like an anthem but just a little bit generic. But, look, we are

all armchair critics at the end of the day. All right, got to go. Samuel, thank you so much.

And that is it for "News Stream." I'm Kristie Lu Stout. Don't go anywhere. We got "World Sport" with Amanda Davies, next.

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[08:45:00] (WORLD SPORT)

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