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World Headlines; Extreme Weather; Japanese Medical School Changed Test Scores To Favor Men; P2P Lending Crisis; Monitoring Drones. Aired 8-9a ET

Aired August 08, 2018 - 08:00   ET

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

(COMMERCIAL BREAK)

[08:00:00] KRISTIE LU STOUT, CNN ANCHOR: I`m Kristie Lu Stout in Hong Kong and welcome to "News Stream."

Fires, drought and heat. How extreme climate conditions are affecting the entire planet and will likely only get worse.

Too close to call. A key special election that could serve as a barometer for as midterms comes down to the wire.

And waiting for denuclearization. The U.S. National Security advisor says North Korea is not living up to its end of the bargain.

Now, this image may only look like hell on earth, but this tells only part of the story of the extreme weather we`re seeing happening all over the

world, from here in the Asia-Pacific all the way to Europe and to the Americas, people are experiencing conditions almost unheard of in some

places. Take a look.

For example, southeastern Australia is suffering one of the driest winters on record affecting crops and putting livestock in danger. And farmers will

be facing this for months. We are going to have more on that story in just a moment.

Now meanwhile, on the other side of the globe, more than a dozen colossal wildfires are still ravaging California. One of them has set the record for

the largest fire in the state`s history. CNN correspondent Dan Simon is nearby. He will be joining us live in just a moment.

And it is a heat wave in Japan. That`s been sending record numbers of people to the hospital -- some 71,000 since the end of April. Olympic

organizers are worried about what heat could mean for the 2020 Summer Games. And nearby South Korea is experiencing deadly heat as well. We will

have a report from our Paula Hancocks in just a moment.

The prime minister of Australia is calling the country the "Land of Drought and Flooding Rains." The entire state of New South Wales is in the worst

drought in over half a century. It has been affecting all living things for months now. And let`s show you this.

This is -- it`s literally a mob. That really looks like a mob of almost 1,300 cows encircling a water truck. Now, the co-owner of a livestock

company in the area says it has not rained since May and the stock routes are now closed.

(BEGIN VIDEOTAPE)

LU STOUT (voice-over): There has been barely any rain in this part of eastern Australia for months. A drought scorched large areas of land

crippling farmers and leaving their animals with little to eat. The entire state of New South Wales is now affected.

(BEGIN VIDEO CLIP)

MALCOLM TURNBULL, PRIME MINISTER OF AUSTRALIA: This is the worst drought in New South Wales since the 1965 drought. Not many of us remember that

very well. Most Australians weren`t born then. So, it is a -- it is a shocking drought.

(END VIDEO CLIP)

LU STOUT (voice-over): For the farmers, the situation is bleak. Their crops are failing. There are water shortages, and with no grass for the

animals to eat, they must spend thousands of dollars to feed them if they can.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Been here all my life and it`s the worst I`ve ever seen in 58 years.

(END VIDEO CLIP)

LU STOUT (voice-over): These pictures show the bodies of cattle at one family farm. Some of the animals still alive here are too weak to eat. As

the drought continues, farmers are increasingly dependent on government assistance. This week the Prime Minister Malcolm Turnbull announced a new

aid package of nearly AUD 200 million in addition to separate state relief measures.

The assistance includes money from mental health services, a necessary step for many farmers struggling to deal with the strain on their livelihoods.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I find droughts a little bit like cancer, it sort of eats away at you just gets drier and drier and more severe and more severe

and impacting on your life a lot worse.

(END VIDEO CLIP)

LU STOUT (voice-over): With no sign of this dry spell ending, help for these farming communities can`t come soon enough.

(END VIDEOTAPE)

LU STOUT (on camera): And while Australian farmers wait for the rain, large parts of Asia are sweltering the summer heat in the northern

hemisphere. Now, we are joined now by CNN`s Paula Hancocks from the South Korean capital of Seoul. And Paula, this extreme heat wave there has

already taken dozens of lives. Why has it become so deadly?

PAULA HANCOCKS, CNN CORRESPONDENT: Well Kristie, this is what we asked the meteorological agency here. Summer is always hot in South Korea. Generally

uncomfortably so, but they say that is because of the high pressures of the north pacific. This year, the (inaudible) agency says that they also have

hot air from Tibet coming in. But that`s just the short-term effects.

He says that when you look long term, it`s clear. The analysis from the (inaudible) agency is this is global warming and temperatures are only

going to get higher.

(BEGIN VIDEOTAPE)

HANCOCKS (voice-over): Summer holidays in Seoul. Heat, water and children, it`s the perfect combination for having fun. But this year the heat has

proved deadly across much of Asia, and the quest to stay cool has gone beyond child`s play.

[08:05:03] Forty-three people in South Korea have died from heat-related causes. Police are now carrying umbrellas on patrol to escape the sun.

Paramedics have been given special ice vests for the first time this year. At last week`s repatriation ceremony for Korean War remains, military

personnel in full uniform paid their final respects on the hottest day in 111 years.

A (inaudible) agency spokesman says the temperature has risen sharply this year.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translation): We`re expecting ups and downs in coming years, but the average temperature will continue to rise.

(END VIDEO CLIP)

HANCOCKS (on camera): If you are struggling in downtown Seoul, then you can walk through one of these cold water sprays and it really does cool you

down. This is something that Tokyo is considering. They are looking ahead to the Summer Olympics in 2020 and they`re looking at something like this

to help keep spectators cool.

(voice-over): Amid concerns, conditions could be unbearable for the athletes. Olympics organizers are asking the government to literally change

time, to put the clocks forward during the summer so the day starts earlier when it`s cooler.

Japan`s heat wave has sent a record nummber of people to hospitals since the start of May. One hundred and thirty-eight people have died. The city

of Kumagaya near Ttokyo saw temperatures hit over 41 degrees Celsius, a 106 degrees Fahrenheit two weeks ago, the highest ever on record.

North Korea is far less equipped to deal with the heat. Electricity is not a 24-hour luxury, air conditioning is rare. Kim Jong-un has been dressing

for the weather carrying out field guidance in short sleeves and a straw ha. Even state-run media has been talking about severe high temperatures.

No mention of fatalities.

And it`s not heat but lack of rain hitting Australia, now in mid-winter. The Prime Minister Malcolm Turnbull is pledging cash for farmers hit by the

worst conditions in decades. Power grids from southern China to Seoul to Tokyo have been severely tested this summer. Officials hoping the worst of

the deadly heat wave is behind us.

(END VIDEOTAPE)

(on-camera): Now certainly here in South Korea we are feeling the temperatures ease this week. Not so much in Japan, though, where we are

still seeing temperatures above 40 degrees Celsius. Kristie.

LU STOUT: Our Paula Hancocks there reporting on these record breaking temperatures across Asia and it is dangerous. Paula, thank you.

Now, extremely dry weather in California is feeding the largest fire in the state`s history. Right now, thousands of firefighters are battling some 17

mutual (ph) wildfires. So far this year, fires across California have burned an area twice the size of Los Angeles.

Our CNN`s Dan Simon is in Lake Port, Northern California. He joins us now live. And Dan, it`s going to take a while, perhaps weeks to put out this

record-breaking fire. What is the latest on efforts to contain it?

DAN SIMON, CNN CORRESPONDENT: Well, hi Kristie. The good news with this Mendocino Complex Fire is that it has slowed down significantly, but the

numbers are still staggering. We`re talking about 450 square miles, and this of course continues to be fueled by extreme heat and very dry

vegetation.

In the meantime, Kristie, this is one of 75 homes that has been destroyed, and the homeowners did everything they could to protect themselves from a

wildfire. They cleared the area of brush. They had a defensible barrier with rocks and gravel. All of the things that you`re told that you should

do, but in their words, the fire had other plans. Take a look.

(BEGIN VIDEO CLIP)

SIMON: I can`t imagine what is like to go through this. What`s the hardest thing?

EMILY SCHNEIDERMANN, HOMEOWNER: I just want to go home. Yesterday when I arrived all the stucco was just standing. Everything else have burned, but

it was just the stucco up and it was really unstable and it was -- that was really hard to see because you could tell where, like, the staircase and

where everything was, and -- it was -- like trying to picture what our home was like.

(END VIDEO CLIP)

SIMON: But of course, you have so many other people in the state who are grappling with similar emotions. As you said, you have 17 major wildfires,

13,000 firefighters throughout the state -- more firefighters here than in any other point in California history. You have firefighters here from as

far away as Australia and New Zealand, Kristie.

LU STOUT: Wow. And that`s the thing, you know, they are (inaudible) of resource but it`s been a very busy and deadly fire season there. So they

need additional help, additional help has come in from our countries to fight these fires. You know, meanwhile, and this is incredible in the case

of the fire there in Mendocino, no deaths reported. What are the factors behind that?

SIMON: It`s because this fire is burning in a very remote area. We`re talking about steep, rugged terrain and firefighters have done a pretty

good job trying to keep the flames away from some of these residential areas.

[08:10:02] In the scope of -- in terms of what we`ve seen lately, 75 homes, while that seems like a large number, when you consider what the Carr Fire

had, the fire we covered last week, more than 1,000 homes destroyed there. So, relatively low number with this one.

LU STOUT: Yes, but still, right behind you we see a picture of ruin and devastation. Dan Simon reporting for us live. Thank you so much and take

care.

Now, I want to bring in now our CNN meteorologist Chad Myers. He joins us from World Weather Center. And Chad, as you just saw from our

correspondents all over the world, we are seeing extreme weather events all over the world. From those record-setting fires in California, the drought

in Australia, the deadly heat in Asia, we know it`s happening in Europe as well. Is this related to global warming?

CHAD MYERS, CNN METEOROLOGIST: I would say you have to say yes at this point in time. We always say, Kristie, that you can`t blame one event on

global warming. It`s the personality of the Earth that is changing. It`s not just one day you have a -- you`re in a bad mood. It`s the whole

personality of the Earth and every time we have a bad mood, its one bad mood after another, after another and then you pile on top of each other

and you`re changing the personality of the Earth.

We`re already here in 2018, well above normal where we would call pre- industrial normal, where we have temperatures now of almost 1.2 degrees celsius. Higher than when we started burning fossil fuel to have tractors

or trucks or cars, or whatever it might be. But it`s the CO2 that`s in the atmosphere that is pushing the temperatures up. There is no question.

But now we talked about this yesterday, that there`s this possible piling on effect. If we don`t get this stopped and stop emitting CO2, that we

could start getting methane in the air because of permafrost melting. We could start seeing the global glaciers going away.

That`s also -- yes, it`s not just that there`s ice and it`s not there anymore, but that glacier is an (inaudible) number, much higher than Earth,

much higher than dirt. So, that bounces heat and sunlight back up into the atmosphere. When that ice is gone, especially sea ice then all of a sudden

you don`t get that reflection back up into space.

We`ve already seen a record number here of hectares burned across parts of California for this time. These are the numbers for the entire year and

we`re already here. We`re only in really August, and just starting fire season.

So what does a global warming event look like? What does Earth look like? Well, there`s more water vapor so therefore, there is more potential for

heavy rain. There is less ice. There is less snow cover. There is a warmer temperature which we`ve been seeing. So yes, this is exactly what we could

expect from what we call climate change or global warming.

Here is the rub. From where we were back in the `60s, somewhere around 360 parts per million of -- billion of carbon dioxide, now we are way up here,

we are at 410 and globally about 408. That`s keeping in the heat. That`s keeping in the warmth and melting the glaciers.

If we warm the glaciers, warm the sea ice, warm the natural ice that should be up here at the poles, all of a sudden, the sun can hit the water and

warm the water. There you get that feedback effect melting more ice, Kristie.

LU STOUT: Chad Myers there, laying it out for us, presenting the evidence, the link between climate change and these extreme weather events happening

all over the world. Chad, as always, thank you. Take care.

Now, you are watching "News Stream." A little bit later right here in the program, we are going to tell you more about how Japan is preparing to deal

with the heat and humidity at the Tokyo Olympics in just two years` time.

Also, Indonesian state media, they are now reporting that the death toll from that powerful earthquake that rocked Lombok Island has now climbed to

131. Thousands of villagers lost their homes. Many are still in desperate need of food, water and shelter.

And rescuers are racing to find survivors buried under wrecked buildings. They are trying to reach right now, four people believed to be trap under

the ruins of a mosque there. About 4,500 tourists have been evacuated from the islands off the coast of Lombok.

This is "News Stream" coming to you live from Hong Kong. And up next, a Trump-backed Republican holds a razor-thin lead in a high profile special

election. Why Democrats say even if their candidate loses, is showing as a good sign for November`s midterms.

And Rick Gates prepares for a third day of grilling as the former right- hand man to President Trump`s campaign chairman tells all about his old boss.

[08:15:00] (COMMERCIAL BREAK)

LU STOUT: Welcome back. Now, five U.S. states held primaries or special elections on Tuesday night, and the most watched race for a House seat in

Ohio, that remains too close to call. Republican Troy Balderson holds a razor-thin lead and has declared victory. His Democratic rival, Danny

O`Connor tells CNN no matter what happens, he`ll be ready to face Balderson again in the November midterms.

(BEGIN VIDEO CLIP)

DANNY O`CONNOR, U.S. DEMOCRTIC HOUSE CANDIDATE: We always knew that the fight would continue on August 8th because, you know, we have an election

in November, and we feel great about the conversations we`re having right now. We`ll be out campaigning today and having serious conversations with

voters about their future, about why their family needs someone who`s going to fight for them in Washington. About why they need someone who`s going to

stand up for health care access, and that`s what we want to do. We feel great about where we are, though.

(END VIDEO CLIP)

LU STOUT: And here`s why this race matters. Ohio`s 12th district has been a solidly Republican House seat for decades. President Trump won the

district by 11 percentage points in 2016. It covers a very demographic area from the affluent northern suburbs to the city of Columbus to the foothills

of the Appalachians, but Ohio`s Republican governor John Kasich, who held the seat for 18 years, summed up the concerns some Republicans have about

the impact of Mr. Trump`s policies.

He said, "Suburban women in particular. Here are the ones that are really turned off." Now, CNN`s Ryan Nobles joins me from one of the suburbs,

Westerville, Ohio with more on the story. Ryan, again, a very slim lead for the Republican Party in a very Republican conservative district no less.

How did it come to this?

RYAN NOBLES, CNN CORRESPONDENT: Well, Kristie, it really depends on who you talk to, but if you just look at the variables between what happened in

2016 and what happened here last night, there`s one glaring difference, and that is that Donald Trump has been president now for a little more than a

year and a half.

And it`s hard not to attribute at least some of this bleeding of Republican support to his presidency. And as you mentioned John Kasich`s theory about

all this -- Kasich of course, a pretty big Trump critic, but someone who knows this district very well, having represented it for close to 20 years.

And he believes that the Trump presidency has been a real drag on traditionally Republican voters and this area where we are right now,

Westerville, Ohio which is one of those of a fluent suburbs of Columbus, Ohio, that you were talking about. So, the president strongly disagrees. He

put out a tweet last night suggesting that had he not come here over the weekend to stump for the Republican candidate, Troy Balderson, that perhaps

he would not have come out victorious.

But when you see a seat that Republicans have safely held for more than 30 years, and that the Republican candidate for president won by 11 points

just two years ago, and they are now clinging to just a 1,700 vote lead, you have to imagine that it`s got something to do with the Donald Trump

presidency.

(BEGIN VIDEO CLIP)

TROY BALDERSON, U.S. REPUBLICAN HOUSE CANDIDATE: America is on the right path and we`re going to keep it going that way.

(APPLAUSE)

[08:20:01] It`s time to get to work. Over the next three months, I`m going to do everything I can to keep America great again.

(END VIDEO CLIP)

NOBLES: And you could see there that Troy Balderson is not running away from Donald Trump in any way, shape or form. He has embraced the

president`s role in all of this. You have to wonder if what happened last night how that plays itself out because as you point out, Kristie, these

two candidates will be running again in the next couple of months in this November election, essentially revisiting of what we saw here last night,

and we`re wondering, will the president be as visible as he was during this special election?

LU STOUT: Yes. And it`s just amazing to watch. A shockingly competitive race there in Ohio. That could be a sign of what`s to come for the

midterms. Ryan Nobles reporting live for us from the U.S. state of Ohio. Thank you.

Now, the star witness in the trial of former Trump chairman Paul Manafort admits he stole from his boss and that he had an ex-marital affair, but

claims that now he`s trying to take responsibility for his actions. Now, Rick Gates, who will be back on the stand for a third day today, was

grilled by Manafort`s defense team over those actions and more. Joe Johns has the story.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT (voice-over): Star witness Rick Gates back on the stand painting a clearer picture of financial crimes

he says he committed with former Trump campaign chairman Paul Manafort. Gates testifying Manafort sent him hundreds of e-mails, many directing him

to transfer money through offshore accounts.

Prosecutors showing an April 2015 e-mail Manafort sent to Gates after finding out he had to pay higher taxes than he anticipated. Manafort

writing, "WTF. How could I be blindsided like this? You told me you were on top of this. We need to discuss options. This is a disaster." For the first

time, Manafort`s and Gates` ties to President Trump entering the courtroom.

Prosecutors presenting an e-mail Manafort sent to Gates asking for tickets to Trump`s inauguration so he could give them to banker Stephen Koch. The

government alleges Koch helped Manafort get a loan under false pretenses. In another e-mail, Manafort floating the banker for secretary of the army.

Gates repeatedly telling the jury Manafort was the ringleader of their many schemes and kept a close eye on all financial dealings. Judge T.S. Ellis

interrupting Gates saying, "Manafort didn`t know about the money you were stealing so he didn`t do it that closely."

Manafort`s attorneys launching a fierce cross-examination trying to shred the credibility of his right-hand man. Gates admitting to having an extra-

marital affair and the defense highlighting his refusal to use the term embezzlement.

Manafort`s lawyer pushing, "Why won`t you say embezzlement?" Gates replying, "What difference does it make?" The defense again asking, "Why

don`t you say embezzlement?" Finally, Gates caving, "It was an embezzlement from Mr. Manafort."

Gates also testifying he may have submitted personal expenses for reimbursement by President Trump`s inauguration committee which he helped

operate. Manafort`s attorney pressing Gates, "This jury is supposed to believe you after all the lies you`ve told?" Gates appealing to directly to

the jury saying, "I`m here to tell the truth. Mr. Manafort had the same path. I`m here, I have taken responsibility. I`m trying to change."

(on-camera): What matters here, how much the jury will absorbs and whether all the pointed questions and damaging admissions create doubts about the

guilt of Paul Manafort. His attorney leaving the courthouse on Tuesday said his client had a great day. Kristie.

LUSTOUT: Joe Johns there. Now, North Korea may not be living up to its commitments on denuclearization, but another Trump/Kim summit may still be

in the cards anyway. That`s according to U.S. National Security adviser John Bolton.

Speaking on Fox News, he said the U.S. president and his senior officials are keeping the door open to North Korea. So, we know what the White House

thinks, but what about North Korean officials? Here is CNN`s Will Ripley.

WILL RIPLEY, CNN COORESPONDENT: Kristie, both North Korea and the United States can agree that since the Singapore summit on June 12th, there has

been little, if any, substantive progress on the issue of denuclearizing the Korean Peninsula. But the blame for that, well, it really depends on

which perspective you are looking at.

The United States feels that it`s pretty simple. North Korea hasn`t been transparent about how many warheads they possess, where their missiles are

being produced, where they are enriching nuclear fuel. They think that the North Koreans needs to do more.

The North Koreans feel they`ve already done enough, suspending their missile and nuclear tests, returning the purported remains of U.S. service

members killed in the Korean War, blowing up their Punggye-ri nuclear test site and possibly dismantling their Sohae satellite launching station.

The North Koreans say it`s the United States that needs to do more, that needs to give some relief to sanctions, step by step relief on sanctions,

not keeping the sanctions in place until the denuclearization process is over.

[08:25:03] North Koreans also want a peace treaty formally ending the Korean War. This has been the sticking point. Both sides have been kind of

blasting each other, but the one person that the North Koreans are not criticizing, even though they`re criticizing the U.S. internal politics and

the State Department, but they`re not criticizing President Trump.

They have said that President Trump and their leader, Kim Jong-un laid out a vision and they believe that President Trump wants that vision fulfilled,

which may be why the president`s National Security adviser, John Bolton, is leaving the door open to direct presidential diplomacy, Trump and Kim,

listen to what he told Fox News.

(BEGIN VIDEO CLIP)

JOHN BOLTON, U.S. NATIONAL SECURITY ADVIDER: The Secretary of State, Mike Pompeo is prepared to go back to North Korea to meet with Kim Jong-un.

We`ve proposed that in our most recent letter from the president to Kim Jong-un. The president is prepared to meet at any point, but what we really

need is not more rhetoric, what we need is performance from North Korea on denuclearization.

(END VIDEO CLIP)

RIPLEY: So right now, we watch to see what the next steps will be. Will Secretary of State Mike Pompeo return to Pyongyang? Will North Korean

leader Kim jong-un fly to New York next month for the United Nations General Assembly? Wouldn`t that be something? A meeting between Trump and

Kim at Trump Tower in New York, it would have been unthinkable. Just six months or a year ago, Kristie, but this is 2018 and we know anything can

happen.

LU STOUT: Will Ripley there. Now, Malaysia`s former prime minister has pleaded not guilty to three counts of money laundering, that`s according to

Reuters. The charges are tied to the transfer of about $10 million from a subsidiary of a state-run fund into Najib Razak`s personal bank account. He

faces several other charges after police seized more than $200 million in luxury items and property linked to Najib and some in his inner circle. The

judge says he will announce a trial date on Friday.

After a deadly heat wave in Japan, the government is taking steps to keep athletes and spectators cool at the Olympics in two years` time. We`ll tell

you more about that, next.

(COMMERCIAL BREAK)

LU STOUT: I`m Kristie Lu Stout in Hong Kong. You`re watching "News Stream" and these are your world headlines.

It remains too close to call in a high-profile U.S. House race in Ohio. The Republican candidate holds a razor-thin lead and has declared victory. But

his Democratic rival outperformed in a district that has been solidly Republican for decades. They`ll face each other again in November`s midterm

elections.

British Prime Minister Teresa May has rebuked her former foreign secretary, Boris Johnson, that after he referred to women wearing burqa`s as "letter

boxes and bank robbers." May says, "Nobody should be trying to tell a woman how to dress."

[08:30:00] The regional government says the Australian state of New South Wales is now 100 percent in drought. One of the driest winters on record

has caused failing crops, water shortages, and a lack of food for livestock. It comes amid a heatwave affecting much of the Northern

Hemisphere.

And these pictures came to us moments ago from Orange County, California. Hot temperatures and windy conditions on Tuesday made conditions very

difficult for crews battling the 1,300-hectare wildfire. In all, there are 17 large wildfires burning across the state with more than 14,000

firefighters working to put them out.

Temperatures around Tokyo have surpassed 40 degrees Celsius this summer. Hardly the weather for intense exercise, but in two years` time, the

world`s best athletes will descend on the Japanese capital for the 2020 Olympics.

In anticipation of a hot and humid games, the government is reportedly getting creative with how it could reduce the heat. Under consideration

here, adopting daylight saving hours, treating roads with heat-reducing materials, and starting events early.

Now with more, I`m joined now by Jeffrey Kingston, director of Asian Studies at Temple University Japan. Jeffrey, welcome back to the program.

Good to see you. We all know that the weather in Tokyo during the month of July can be very, very hot. So, what are the best options for Japan to

reduce the heat for the Olympic games?

JEFFREY KINGSTON, DIRECTOR OF ASIAN STUDIES, TEMPLE UNIVERSITY JAPAN: Yeah, it`s been really brutal and five years ago when Prime Minister Abe

made a presentation to the Olympic committee saying the weather in Tokyo is balmy at the end of July, we were all cracking up thinking, well, all

depends on how you define balmy.

You know, what they did in the past in `64 is Japan moved the Olympics to October and the weather was fine. But these days, with television

contracts, that`s not really an option. So, the other good option is basically adopting daylight savings and moving the clock two hours ahead.

So that right now we`d be talking, you know, just after dinner around 7:30 rather than 9:30 in the evening.

And it seems, according to a recent poll out yesterday, that more than half of Japanese people are just fine with that and only about 12 percent

oppose. So I think this is probably going to be the best option.

LU STOUT: But what about technology? You know, there is talk of using heat-inhibiting pavement. Could something like that actually work?

KINGSTON: I`m a historian. I take it on faith. But they do say they can spray this on pavements and it does have a significant impact. They`re

talking about doing about 100 kilometers of spraying in Central Tokyo. I guess that might work.

They also are talking about bringing in lots of new greenery, but that doesn`t seem like it`s really going to work. They seem like more band-aid

approaches. The thing is the sunrise now about 4:50 in the morning. That`s way too early.

LU STOUT: And if there is no solution and judging from what you felt this summer, I want to ask you just like, what people could be experiencing if

there is no solution in 2020? What impact will Tokyo`s heat and humidity have on athletes and fans of the games that year? How uncomfortable is it

going to be?

KINGSTON: Well, it certainly will have an impact on athletes` performance, at least athletes performing outdoors. It`s very dangerous to their health

when, you know, the temperatures above 35 centigrade and humidities above 60 percent, this is really endangering people`s health, and we had two

weeks of that weather.

Today, however, we`re getting a typhoon, which is disrupting transport networks. So, if it`s not going to be the hot weather, it could be the

typhoon, and we also had a few rumbles underneath. So there are various issues that people have to contend with, but end of the day, I think it`s

going to be an enjoyable Olympics. May be hot, though.

LU STOUT: Yeah, especially if they adopt, as you suggests, you know, the daylight savings proposal. Could be the best one. Jeffrey Kingston, we will

leave it at that. Thank you so much for joining us. Take care.

KINGSTON: Thank you.

LU STOUT: Now, an internal investigation has found a Japanese medical school deliberately lowered women`s entrance test scores for over a decade.

Tokyo Medical University has since apologized for that. It has apologized for the discrimination. It has pledged to consider possible compensation

for those affected.

Lawyers investigating the practice concluded that scores were manipulated to favor men and reduce the number of women admitted to the school.

Now, a look at problems with peer-to-peer lending in China. The way it works is this. You give money to a lender who loans it to other and then

you make money on the interest. But, Matt Rivers tells us many peer-to-peer loans in China have not been repaid and thousands there have lost their

life savings.

(BEGIN VIDEOTAPE)

[08:35:02] MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: These are some of the victims being treated like criminals by the government that they say

failed them. China is in the middle of a widening peer-to-peer lending crisis and protests erupted in Beijing this week.

They were met by an overwhelming police response. Look at this woman. Prone, being dragged into a cop car. Another scene here, pulled towards the

bus. This is how China deals with public protest.

This man spoke to CNN and we agreed to protect his identity. He could face government retribution for speaking to us. He invested about $40,000, his

and his parents` entire savings, in a P2P company called "Toronja" (ph). He thought it was safe.

In China, the law only protects a small group of people, he says, not us, the masses.

In early July, the company collapsed. His family`s savings were gone and there was nothing he could do. The company`s website says the chairman

disappeared. Police opened an investigation and have detained 13 people, but says nothing about paying anyone back.

He said, "I fear that my family will learn this. My parents would be suicidal if they knew. So only me and my wife know for now."

Four thousand four hundred and seventy P2P firms have collapsed since 2012, according to Wang Dai Juja (ph), a respected industry analysis firm. The

firm says nearly 1.2 million people lost their investments worth about $11.5 billion in all.

The People`s Bank of China said they would crack down on bad lenders and "comfort" the investors. We don`t know what that means and the PBOC didn`t

reply to our request for comment. But for many, that wasn`t good enough, hence the protests.

They tried to take their case here to the country`s banking regulator but the government didn`t let them get that far. Most of the protesters were

rounded up on streets or on the subways. One person gave CNN video that he says shows police showing up at one would-be protester`s house and not even

allowing him to leave.

Most of the protests planned for outside this building were coordinated on WeChat, a messaging app that experts say the government monitors in real

time though Beijing denies that. And yet all signs point to the government knowing that these protests were going to happen beforehand. The massive

police response shows you how far Beijing is willing to go to stamp out dissent.

Another victim who lost about $200,000 told CNN the protests will likely continue. "We need to fight for our rights," he says. "My life is ruined.

Now I`m like a financial refugee." So despite the threats of jail or detention, it seems that people who have already lost everything have

little left to lose.

(END VIDEOTAPE)

RIVERS: Now, Kristie, you`re probably asking, why did all of these people choose to invest their savings this way? And part of the reason is that the

government here actually encouraged them to do it. So take a look at these photos. The P2P company we just told you about called "Toronja" (ph) was

actually a favorite of local and national government.

Officials toured their offices and even attended fancy banquets like this one. The government essentially promoted this company. People truly thought

that this was legit. And now the same government that told them to invest this way is essentially leaving them out in the cold. Kristie?

LU STOUT: Wow! Reckless promotion there. Matt Rivers reporting, thank you. You`re watching "News Stream." Up next, they are airborne, highly

maneuverable, and potentially deadly. Drones could be the next terror threat. We are going to investigate what can be done to defend against them

when we come back.

[08:40:00] (COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, welcome back. This is "News Stream."

Now, apparent drone attack in Venezuela on Saturday targeting President Nicolas Maduro has reached new concerns about drones and how to counter any

potential threat. CNN`s Samuel Burke looks at the latest technology to tracking devices and keep the skies safe.

(BEGIN VIDEOTAPE)

SAMUEL BURKE, CNN BUSINESS AND TECHNOLOGY NEWS CORRESPONDENT: Chinese drones start at DJI, whose devices were used in Saturday`s apparent attack,

according to Venezuela`s interior minister. It has a drone management system. It`s already selling to airports, nuclear plants, and security

agencies around the globe.

AeroScope monitors and identifies the company`s drones, which make up more than 70 percent of all drones on the market. The system listens for drones

talking to their controller.

BRENDAN SCHULMAN, VICE PRESIDENT OF POLICY AND LEGAL AFFAIRS, DJI: The AeroScope system is used to remotely identify where drones are flying and

uses the radio signal that already exists in the drones to communicate what drone is flying, where it is, where it`s going, and most importantly where

the pilot is located so the authorities can find the pilot and go ask questions about why they`re flying and if necessary take other actions.

BURKE: The system can tell authorities the serial number of the drone and the point from which it took off. The biggest hurdle now is the lack of

government rules and norms around these drone monitoring systems.

SCHULMAN: Right now, we`re waiting for the FAA to create a mandate for remote identification, which would require all drones to broadcast these

kinds of remote identification signals which would allow people on the ground to know where the drones are flying and to take actions that might

be necessary.

BURKE: While DJI systems give officials details about a drone`s movement from their authorities, they have to decide what measures to take to bring

the drone down, like using a jammer to cut the radio link between an operator and the drone, though this can stifle mobile communications in the

surrounding areas.

Authorities have also looked into shooting down drones, though experts say this poses a risk to spectators as well as nearby structures. In Dubai,

they send a small plane known as the "drone hunter" to chase down the devices. Dutch police even tried training eagles to grab the drones out of

the skies, but it proved too expensive and more complicated than they expected.

(END VIDEOTAPE)

BURKE: So, Kristie, while this disagreement about the best system to bring a drone town, experts do agree on one thing, the incident in Venezuela

shows the threat presented by drones is far from hypothetical. It`s already here and now. Kristie?

LU STOUT: Samuel on the story there, thank you.

And that is "News Stream." I`m Kristie Lu Stout. But don`t go anywhere. "World Sport" with Amanda Davies is next.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

END