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NEWS STREAM

U.S. Market Sell-off Affects Global Market; Hurricane Michael Slams Florida Panhandle; IMF Warns Against Currency and Trade Wars; Astronauts Escapes Soyuz Malfunction; New Video Surface on Khashoggi Disappearance; Chinese Intel Officer Extradited to U.S.; China legalizes Xinjiang Camps; World Headlines; Tropical Storm Michael Thrashes Southeastern U.S.; NASA's First Resident Artist Explains VR Exhibit "The Moon"; A Deliciously Local Food Tour at Sham Shui Po. Aired 8-9a ET

Aired October 11, 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] KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream."

The wrath of Hurricane Michael, residents wake up to devastated homes, flooded streets and flattened trees after the storm slams into Florida and

Georgia.

Speeding towards Earth, astronauts on a Soyuz rocket set for the International Space Station return in a dramatic emergency landing.

And more evidence on the missing Saudi journalist who went into a consulate in Turkey more than a week ago and has not been seen by friends and family

since.

We'll have those stories in just a moment, but first, U.S. markets, they open about 90 minutes. It is not looking pretty. Now signs are pointing to

a pretty significant loss when the bell rings. So these are the numbers for you. You look at the Dow Futures, Nasdaq Futures, S&P 500 Futures, all down

by about 0.5 percent.

And it comes as markets in Europe have been showing declines. Let's bring up those numbers up for you. And you can see additional red arrows. There

you see the FTSE 100 down more than 1.5 percent, the Xetra DAX down 0.9 percent and in Paris, the CAC 40 down by 1.5 percent.

Meanwhile, markets here in Asia earlier in the day they posted the steepest losses in global trading. The Nikkei and the Hang Seng dropping close to 4

percent. As for the Shanghai Composite, it lost more than 5 percent. Now, I'll be speaking with our chief business correspondent, Christine Romans

about all this market uncertainty in just a few minutes from now.

Now, residents across the southeastern are waking up to asses the damage from Hurricane Michael's path of destruction. The storm made landfall in

Mexico Beach, Florida as a Category 4 hurricane, the strongest ever to hit the region. Two storm-related death have been reported including a child.

Now just look at what these huge winds did to this home in Panama City Beach. The roof, it was literally ripped off. And now a tropical storm,

Michael is still pummeling parts of Georgia as it heads north towards the Carolinas. More than half a million customers are without power across

three U.S. states. Erica Hill is in Panama City Beach, Florida where it's just after 7:00 a.m., and Erica, folks there in Florida waking up to assess

the damage. What are they seeing this day?

ERICA HILL, CNN CORRESPONDENT: There is a lot to assess, I can tell you. So we made a good portion of our drive this morning as we headed east in

the dark. And even in the dark it was very clear as we crossed into Bay County our phones all of a sudden started buzzing with emergency alerts,

but not only there was a curfew in order, there was a boil water alert for Bay County.

And we could see very low hanging power lines, downed power lines. There were entire lamp posts on bridges laying on the bridge, a number of trees

down understandably, pieces of metal from stru8ctures like we're seing behind me, wrapped around trees. And I just want to step out of the shot a

little bit so we can give you a sense of the damage here.

So we are at a marina in Panama City Beach on Grand Lagoon. This, according to Pirate's Cove website is a mega barn that can hold some 450 boats. As

you can see the pieces of metal, it is shredded. Things are literally turned around, trees on the other side of me. We hear the metal shaking,

moving. There is only a slight breeze right now and you can see inside to some of the boats.

What is really remarkable, too, as we look at this and you see the force of the winds and the strength of this system, as we were driving along this

morning too, it almost felt like we were covering a tornado this morning because there would be areas that were devastated and right next to them,

entire yards of boats, Kristie, that were untouched.

There is a lot to assess this morning, people trying to figure out what is left of their homes. People still trying to reach loved ones, and we'll be

covering a lot more of that for you throughout the day.

LU STOUT: Yes, and just look at that apocalyptic scene behind you. Hurricane Michael certainly left a mark there in Panama City Beach. Erica

Hill reporting live for us. Thank you so much. Now let's bring in CNN meteorologist Chad Myers. He's standing by for us.

And Chad, this was a powerful storm. We saw, you know, what happened there in the live shot right behind Erica Hill. It arrived with a big punch. Walk

us through the damage and also where Michael is now.

CHAD MYERS, CNN METEOROLOGIST: Two hundred and fifty kilometers per hour was the landfall number in a town called Mexico Beach. We can't even get

there. So what you see on the screen behind me and at Panama City Beach is nothing.

[08:05:04] Mexico Beach is gone. All the homes are either damaged or just gone. The water, the surge, the wind of 250 is equal to a super typhoon

because that starts at 241. So we were higher than what a minimal super typhoon would be. Tyndall Air Force Base had 209 kilometer wind speed. And

then before they got any further, the wind gauge broke.

So, we really don't even know if that was ground zero. We don't even know what the real number there was. So where is it now? Eighty-five kilometers

per hour over Columbia. Now the storm did go right over Augusta, Georgia. And if that name rings a bell, it's where the Masters is played every year.

I suspect that there is some damage there as well. It was still a 65 kilometers to 85 kilometers per hour storm then. There are your tropical

storm warnings. They still go on up to the places we talked about so readily with Matthew. Remember that storm? Matthew put down all the rain

here. In some spots one meter of rain two weeks ago.

And that water is still trying to go away, still trying to go down the rivers. And now we're putting more rain on top of that. It does move

offshore. It will affect D.C., Philadelphia, maybe even New York City with the flights today. If you're in and out of those areas here, any kind of

intercontinental airports probably will start to slow down international airports because of that rainfall especially later on today.

Some spots could pick up about 250 millimeters of rainfall. So there it is right now, heading toward Columbia, South Carolina. Trees are still coming

down on this because the tree roots are completely saturated from all that rainfall. Remember that one meter of rainfall from the previous storm. So,

even at 85 or 100 kilometers per hour, there are still many, many trees down. Almost a million people so far without power, Kristie.

LU STOUT: Well, this is a powerful storm, a historic storm. Chad Myers reporting, thank you. Michael brought incredible storm surge to

Apalachicola, Florida and the mayor of that city, Van Johnson joins us now on the phone from Destin. And mayor, thank you so much for joining us here.

First, the damage assessment. No doubt you've been getting up to speed on the devastation delivered by Hurricane Michael. What have you learned?

VAN JOHNSON, MAYOR OF APALACHICOLA, FLORISA (via telephone): Yes, I have. I'm learning that the streets are littered with trees that fell during the

storm, that we're out of power, that there's no electricity. Crews are out there now still assessing the overall damage.

We do have a small city crew out there that is trying to remove a lot of debris out of the roads. So right now, things are just chaotic and we're

just trying to find out what is going on so we can get our lives back to normalcy as soon as possible.

LU STOUT: Absolutely. You know, there was that call to evacuate from the governor of Florida. You're calling us from Destin. You heeded that call.

You evacuated, but how many people in your community decide not to leave before the storm?

JOHNSON: Well, before the storm, it was probably about 60 percent of the people decided to stay. As the storm approached and intensified to a

Category 4, people had a change of heart and they started to evacuate. But about 20 percent of the people stayed there and hunkered down during the

storm even though I was a mandatory call to evacuate from the governor's office, from the county emergency management office, as well as from my

office.

LU STOUT: A number of people, as you said, they decided to stay put. So, what about rescue operations? Among those who decided to ride out the storm

in their own homes, are they finding themselves in need of rescue?

JOHNSON: Not necessarily. I did receive a call from a resident yesterday saying that a tree had fell down right in the middle of the driveway

(inaudible) and they couldn't get out. But there was nothing at that particular time we could because we were still under the hurricane and

assessment is under way.

LU STOUT: Got you. And I want to ask you about power outages because we're hearing that close to about half a million customers are without power

across multiple U.S. states. What's the situation in your community?

JOHNSON: Well, we have about 2,400 people in Apalachicola and they're out of power, as well.

LU STOUT: OK, got it, sir. Thank you very much indeed for joining us. Van Johnson, the mayor of that community, hit hard by this storm. We wish you

and your colleagues and the people of Apalachicola there in Florida the very best as you rebuild. Take care.

Now, let's return to the state of the markets around the word. You know, just the storm that's happening there. Wall Street futures all pointing

down. European markets a few hours before they close for the day. We got CNN's chief business correspondent Christine Romans joining me from New

York now. Christine, welcome back. After that big sell-off yesterday in the U.S., we're seeing deep falls in markets across Asia and Europe.

[08:10:02] CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes, this thing has sort of ricocheted around the globe. It was a pretty momentous

decline for stocks in the U.S. quite frankly. I mean, you saw the Dow down more than 800 points. That's the third largest point drop ever.

But I want to put it in perspective because percentagewise, that still is not even the top 20, I don't think. It's not remarkable in terms of the

percentage decline. But what was interesting is that you had just record highs just a few weeks ago and now you got a reassessment really because of

higher interest rates and concerns about passive (ph) growth and global growth next year because of the China-U.S. trade war.

LU STOUT: And tracking U.S. stock performance, do you think the sell-off is going to continue, not just for today, but days from now?

ROMANS: I think you might see it today at the opening bell. I mean, I've been watching futures for the past four or five hours and they've been

consistently weak. We'll be looking for some inflation data that comes out this morning in the United States, morning time. If that shows maybe a

resurgence of inflation, that could be a problem for stocks here.

But if it shows, you know, benign inflation, then maybe you're going to get some buying here, some relief. Just have to sort of see how it goes. But I

think what you're really seeing here is this focus on interest rates. Interest rates have been rising in this country.

The fed is raising interest rates to try to cool off the red hot economy. And it's interesting because the president addressed this. The president of

the United States who often uses the stock market as his personal scorecard, now he's found a scapegoat. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think the Fed is making a mistake. They're so tight. I think the Fed has gone crazy.

The Fed is going wild, I mean, I don't know what their problem is but they're raising interest rates and it's ridiculous.

(END VIDEO CLIP)

It's interesting this morning. There's a lot of chatter among the Wall Street watchers and the Wall Street tacticians who say that it might not be

good for the president to be talking down the Fed and scapegoating and blaming the Fed because, you know, attacks on the Fed aren't necessarily

good for investor confidence either. So, that does not help his case if he really wants stocks to go up.

LU STOUT: Yes. So what is this going to happen ahead, you know, is this going to be the end of the bull market or is this a correction albeit a

pretty significant one?

ROMANS: So, look, corrections can be good. You know, you still have very good fundamentals in the American economy. You have still very good profit

growth, although we think that the third quarter could be the peak of profit growth. So that means next year is going to be a little more tough.

You see a lot of wild cards in the China trade situation. That is something that hangs over the market. But nine years into a bull market, you know, is

it the end? Is this sort of like a whimper? No one really knows for sure, but we do know that the economy is very strong here. Corporate profits

continue to be strong. Economic statics continue to be strong.

If the Fed can raise interest rates slowly and gradually and not in a disruptive way, there is really no reason why the economy couldn't take

that. Remember, December's interest rates is sort of the shock absorbers on a very strong economy. That's a good thing if it's done right.

LU STOUT: Yes, so many factors to consider here as we try to anticipate what is going to happen next with these markets as they move. Christine

Romans, reporting live from New York. Thank you so much.

A looming trade war between the U.S. and China, rising interest rates, those comments from President Trump, the specter of inflation, all this and

more have contributed to this market slump. And that's not lost on the president of the IMF, Christine Legarde, who is warning against trade

conflicts and currency manipulation.

She has been speaking in Bali, Indonesia at the launch of an IMF and World Bank Summit. To discuss all these issues and more, we are joined by Robert

Koepp from the Economist Corporate Network here in Hong Kong. Robert, welcome back. Good to see you.

ROBERT KOEPP, DIRECTOR, ECONOMIST CORPORATE NETWORK: Hi Kristie. Thanks for having me.

LU STOUT: You just heard Christine Romans talk about, you know, the wild card of U.S.-China trade. Is that the biggest factor here behind this major

global sell-off?

KOEPP: It certainly among the chief factors. I'd say the other big factor is a huge appreciation that we've seen in major tech stocks. So last month

and the month before that, we had Amazon and Apple reach a market capitalization of $1 trillion, first time ever in history. So, that's

symbolic of what's called the FANG group of companies. Some would also add FANG plus as one index that measures in addition to that. There is some

Chinese stocks, but big tech has been really overweighted. So that's another contributing factor.

LU STOUT: Got it. Yes, as you said, tech stocks, they have really taken a particular beating here, you know, to make it a little bit more regional.

The Hong Kong listed tech from Tencent just entered its tenth straight day of declines. So, is this a correction for the tech sector globally?

KOEPP: Yes, I think -- I mean, the correction, there's different ways to measure it. I think it's certainly a reality check, to put it that way. I

mean, Tencent's been facing regulatory issues in China and then the trade war contributes to all of this. Apple is very dependent on China's supply

chains.

[08:15:06] Tencent is exposed to Chinese regulations and so forth so, in the back drop of the U.S.-China trade conflict, we have these tech

exposures that relate both to this very high valuation and then lots of things going on within the U.S. and within China relevant to their

valuations. So, that's kind of a complex explanation but it's all intertwined, to put it that way.

LU STOUT: Y es. In fact, the tension between the U.S. and China is growing. You know, just overnight, President Donald Trump announced new

investment restrictions aimed primarily at China to keep China from getting access to sensitive American-made technology.

KOEPP: Indeed.

LU STOUT: What is your thinking about the forecast, you know, the look ahead for the U.S.-China relationship?

KOEPP: It's not looking particularly positive right now. I think the view in Washington, at least at the White House is that they need to hold their

ground and they are not about to concede until China budges. I would say that China has been making moves, kind of behind the scenes.

So like Tesla in July was given permission to build a $10 billion giga factory. Actually, that's (inaudible) Trump doesn't like but for U.S

business interest, it's a positive sign because it shows Chinese opening up. That sort of (inaudible) foreign enterprise puts in a lot (inaudible).

So, there are some positive movements, but until we see kind of breakthrough maybe a change in the presidency, I don't think U.S.-China

relations economically are going to improve too much.

LU STOUT: Yes. And knowing that and all the other factors weighing on the markets, how long can we expect this global sell-off to go on?

KOEPP: Well, the global sell-off is although related to U.S.-China trade frictions, they are also, I mean, the investor should be pricing that in.

So I don't think we have to wait for U.S.-China trade relations to improve before the stock market recoveries.

Currently based on the data we heard and as Christine was just mentioning, you know, it's not an absolute plummet of the stock market. So, let's see

how the next few days play out. I would say the main thing to look for are not only the economic macro fundamentals but company reportings of

earnings.

So that will be coming out the end of this week and then the next week. If those are positive actually there is a good chance the stock market will be

recovering.

LU STOUT: All right, Robert Koepp, director of the Economist Corporate Network, always a pleasure to have you here on the program. Thank you. Take

care.

Now, do stay with CNN for the opening bell on Wall Street. Following Wednesday's massive loses, get that and more on First Move with Julia

Chatterley. That starts in about 40 minutes from now. And the moment you could take a look at what to anticipate, there's all down arrows there in

terms of the futures.

Now, up next, you're watching "News Stream." Two men on board a Russian spacecraft, they have just gone through what must have been a terrifying

ordeal. We'll tell you what happened that forced the Soyuz to make an emergency landing.

Also ahead, President Donald Trump has been speaking about the disappearance of the missing Saudi journalist, Jamal Khashoggi. We'll bring

you the very latest on the search for answers, right here on "News Stream."

[08:20:00] (COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong. Welcome back. This is "News Stream." What began as a trip to the International Space Station

ended abruptly just a few hours ago with a dramatic emergency landing. The crew on board the Soyuz, a Russian cosmonaut and a NASA astronaut, they

have survived a hard dusty landing in Kazakhstan.

They are said to be doing OK. It's an incredible story. We have CNN's Fred Pleitgen standing by in Moscow with more. And Fred, the crew is alive

despite a very hard landing. This was an extraordinary rescue.

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: It certainly was. You know, this was a major incident obviously for the Russian space program

and obviously in partnership with the Americans as well. But I could have been so much worse, Kristie.

We do have the first images that we just got a couple of minutes ago of these two, one astronaut and one cosmonaut obviously, after they had been

retrieved from that capsule. It shows them on what seems to be two couches with medical equipment seemingly hooked up to them obviously monitoring

their vital signs.

Now, the information that we're getting from the Russian side at this point, they say that both of these astronauts are in good condition. The

latest that I got, just a couple of minutes ago, Kristie, is that they are currently on a helicopter and they're going from the site where the capsule

touched down back to Baikonur, which is of course Russia's main space station from where they lift off their rockets into space.

It's about 250 miles away from where that capsule touched down. Meanwhile, we're still trying to piece together what exactly happened with that

launch. It seems as though the rockets took off from the Baikonur Space Station and then about, I'd say a little less than three minutes into the

flight, the crew radioed back and said that there had been a malfunction with the main booster.

We've been listening to the radio transmission which was going out live and it was really amazing to see the professionalism of these two crew members

as they realized their spacecraft was in trouble and that they had to do something and had to the abort the mission.

They radioed back that they had separated from the booster rocket and that they were starting to do what's called a ballistic dissent back towards

Earth which is at a much steeper angle than would usually be the case, much faster and much more tough also on those astronauts as well.

And they managed to touch the spacecraft down. Apparently at all times, and they were conscious and they did have communications back to the main

offices of the Russian Space Administration. There are some NASA folks there as well.

And as we said now, apparently right now they're on those helicopters. They're back on their way to Baikonur and of course pretty much everybody

at NASA and also at the Russian Space Administration, probably a lot of people around the world breathing a sigh of relief because of course,

Kristie, we've known from unfortunately space disasters that we've had to report on in the past, how small the margin of error is when you're talking

about space travel, Kristie.

LU STOUT: Yes. But I still can't get over the video. This was a stunning emergency landing. They're back on Earth and they are reported to be in

good condition. Fred Pleitgen reporting live for us in Moscow. Fred, thank you.

U.S. President Donald Trump says it appears Saudi Arabia is behind the disappearance of the missing journalist, Jamal Khashoggi, but it's too

early to talk about America's response. The Turkish government has released more video it says ties the Saudi state to his disappearance.

These images first aired on Turkish television, a report that this was the moment 15 Saudi operatives arrived at Ataturk Airport just hours before

Khashoggi visited the Saudi consulate in Istanbul and vanished. The Saudi government denies any involvement. And here is what Mr. Trump had to say.

(BEGIN VIDEO CLIP)

TRUMP: This is a bad situation. We cannot let this happen to reporters, to anybody. We can't let this happen and we're going to get to the bottom of

it.

(END VIDEO CLIP)

LU STOUT: Now, CNN's international diplomatic editor, Nic Robertson, joins us now from Istanbul. And Nic, what impact will the fate of Jamal Khashoggi

have on Saudi Arabia's international ties especially with the U.S.?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITORL: Well, it is a testing time for the leadership in Saudi Arabia because the allegations that

they're being exposed to, what Turkish officials say is a murder of Jamal Khashoggi in the consulate here not long after he walked into it Tuesday of

last week.

It is a very strong allegation. The turkish authorities are leaking closed circuit television recordings to media here in Turkey, leaking names of

those 15 Saudi men who arrived in Saudi Arabia around the time that Jamaal Khashoggi was killed.

[08:25:02] So the there is a lot of pressure and scrutiny emerging here in Turkey that's putting end to national pressure on the leadership in Saudi

Arabia to come up with answers. And at the moment, it's a difficult situation for them because there is no real wiggle room here.

They had said that they would allow Turkish authorities into the consulate to, you know, for an examination of it as part of the investigation. That

has been put on hold. The Turks are saying that the Saudis are not cooperating fully.

So I think where this leaves the Saudi leadership is in a very difficult situation where their relationship with their international partners, not

least President Trump and of course with Turkey of being put under strain, so their credibility in how they answer these very strong accusations is

really going to be tested. And so far, they haven't put forward lines that have been palatable it seems to those allies around the world.

LU STOUT: Now, the pressure continues to build on Saudi Arabia to provide some real answers. Nic Robertson reporting live for us from Istanbul. Nic,

thank you.

In an unprecedented move, a Chinese intelligence officer has been indicted on economic espionage charges and extradited to the U.S. from Belgium.

Yanjun Xu is accused of trying to steal trade secrets from aviation and aerospace companies in the U.S.

Just a short time ago, the Chinese foreign ministry spokesman called the accusations, quote, "pure fabrication." The Trump administration has vowed

to crack down on China's theft of intellectual property. Xu faces up to 25 years in prison if convicted.

China is rejecting criticism after Xinjiang appeared to officially legalize so-called re-education camps. The camps are for people accused of religious

extremism. Human rights groups have long alleged the Chinese government has been detaining hundreds of thousands of Uighurs as a largely Muslim

minority in such centers. The rights group say it is an effort to enforce loyalty to Beijing.

(BEGIN VIDEO CLIP)

LU KANG, CHINESE FOREIGN MINISTRY SPOKESMAN (through translation): Taking such measures to prevent and crackdown on terrorism and extremism have

helped preserve stability as well as the life and livelihood of people of all ethnicities in Xinjiang. These measures are firmly supported by all in

Xinjiang.

(END VIDEO CLIP)

LU STOUT: Now, just a little over a month ago, authorities in Xinjiang denied that the camps even existed. You're watching "News Stream." And

still to come, Hurricane Michael is downgraded after devastating parts of the U.S. Gulf Coast. But this tropical storm is still on the move and it is

carving a path of destruction.

[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." These are your world headlines.

The head of Russia' space agency says the crew of the Soyuz spacecraft, a NASA astronaut and a Russian cosmonaut, have been rescued. The Soyuz was

forced to make an emergency landing in central Kazakhstan after a booster failure. NASA says the men are in good condition.

Wall Street opens for business in an hour and it is bracing itself for another day of heavy losses after stocks stumbled in Asia and Europe on

Thursday. Wednesday saw the third biggest point decline in the Dow's history and it could get worse in trading today. U.S. President Trump has

blamed the Federal Reserve for the fall.

We are seeing images of destruction from the island of Mallorca, Spain where at least 10 people were killed after heavy rain triggered flash

flooding on the island. The water cut off roads and forced schools to close. Hundreds of emergency responders including members of the military

have been deployed to the scene.

As morning begins in the U.S. state of Florida, residents are getting a first look at the devastation left by Hurricane Michael. Dianne Gallagher

is live for us from Panama City. She joins us now. Dianne, we know that the storm surge ripped apart the Florida coast. What kind of damage have you

seen?

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: Kristie, I'm going to be honest, that storm surge ripped apart the coastline here in the panhandle,

but really, I want you to take a look at what the wind did as well.

Now, remember, Hurricane Michael was just about two miles per hour away from a Category Five. This was an extremely strong Category Four hurricane.

This is not an uncommon sight here, Kristie. It's an auto facility where they fix cars, they have parts, things like that, just ripped to shreds by

those winds. We are seeing this on almost every single block in Panama City here.

I just went through to a mobile home park, a community right behind this, to talk to residents. Most of them, Kristie, spent the night through the

hurricane all day in their homes. Now look, these are aluminum metal homes and the hurricane just shredded them.

You can see the trees that just fell into them. One home, three trees on one mobile home. Thankfully, only one foot injury in all of these. At this

point right now because the light has sort of just come with daybreak here, we are still not entirely sure of exactly how much damage we are looking

at.

We do know that in the words of Governor Rick Scott of Florida that it is utter devastation. But just how bad it is right now, Kristie, we are still

not sure. I can tell you that more than half a million people do not have power as a result of the storm.

The good news is we have already seen power trucks driving by as soon as the sun came up. We are also seeing civilians with boats and backhoes and

other types of equipment on the back of their vehicles, towing them around to go and assist right now.

There appears to be a dire need of chainsaws, food, and water in these communities. We are not sure when they are going to get the power back. We

have a boiled water advisory because they are not sure if it is safe right now for people here.

And Kristie, this isn't even the worst of it. Down at Mexico Beach which is about maybe an hour away from here, the flooding there was so severe that

it came up almost to the rooftops of some of the homes there, and they are just now starting to get into that community as the light has come up to

see how bad this devastation was.

This was the worst hurricane to hit the panhandle of Florida since they started keeping records on hurricanes.

LU STOUT: Wow! Roof-high flood waters and right behind you. You know, just looking at the scene there and what you've described for us, just these

fierce winds literally shredding this community apart, we can clearly see the devastation caused by this hurricane. Dianne Gallagher reporting live

for us. Dianne, thank you.

You're watching "News Stream." And still to come to CNN, we are going to take a bite into authentic Hong Kong. It's a place that serves old school

favorites and where some kitchens run 18 hours a day. We're going to take you to the culinary hot spot that has attracted the likes of our dear

friends, Anthony Bourdain.

[08:35:00] (COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong, welcome back. This is "News Stream." Now, this is a full series. It's called "Smart

Creativity." As part of the series this week, we bring you the artwork of NASA's first ever artist-in-residence.

Laurie Anderson is the woman behind a lunar landing installation at Denmark's major contemporary art gallery. It is a virtual reality

experience, allows viewers to explore the surface of the moon, but not just any moon.

(BEGIN VIDEOTAPE)

LAURIE ANDERSON, ARTIST: I want to walk into work of art and get lost in it. Every artist from the beginning of time has wanted to come into that

world. VR offers you that in a way that is unique.

People are attracted to the moon because it presents itself in so many mysteriously different ways. I'm somebody who wants to lose my body in

works of art that take me out of this place, this body I love. Virtual reality can do that. This piece is called "To The Moon."

UNIDENTIFIED FEMALE: Now, you are on your way to the moon.

ANDERSON: But as soon as you land on the moon, you start seeing all the constellations. We use the constellations as more or less like drawings of

things we've lost. So, we had things in nature reflect of constellation of a polar bear and as you look at that polar bear, it dissolves. So, it's

almost like a picture that becomes an idea that just blows away when you see it.

Then you also see democracy and if you look at it, you realize all of these things -- we think it is unstable and so fragile and can be lost. It's not

narrative anymore. It's not linear. It's not contained in the rectangle that you're looking at.

The moon is a dream. And so I wanted to push it more in that direction. You can fly into a graphic representation of a dinosaur made from its own DNA.

Diamonds are falling from the sky, a little nod (ph) to twinkle, twinkle little star. (INAUDIBLE) flags.

Also, this -- that was a nod (ph) to the colonization of the moon by everybody. So, here is a Russian flag, here is an American flag, and

they're being planted around you.

So you're flying around in this free world. And it is like combination of hallucination and reality. And so it ends up being this very mysterious

thing, very much like the moon itself.

A work like this is for me is just a way to encourage people to go, wow, what is that? To think about it, not just to the world as we see it, but

the beauty of the information that we can't see, the things that we can't see.

(END VIDEOTAPE)

LU STOUT: I just love that. Laurie Anderson is the coolest. Now, this week, CNN is exploring a neighborhood in Hong Kong called Sham Shui Po.

This area serves up some delicious local dishes from street food to bamboo pole noodles. We visit some of the restaurants to get a taste of some of

the classics of Hong Kong.

(BEGIN VIDEOTAPE)

[08:40:02] LU STOUT (voice over): In this bustling neighborhood of Hong Kong, Hop Yik Tai eatery serves up a local favorite.

NICOLE FUNG, FOOD AND TRAVEL BLOGGER: We are in Sham Shui Po and we are going to eat rice sheet rolls or cheong fun. This place is in a little

alleyway here. This is a really popular Hong Kong street food snack. They're served differently, but the street food way is just plain but with

bunch of different sauces.

LU STOUT (voice over): Nicole Fung is a food and travel blogger and comes to this recommended eatery in Sham Shui Po often.

FUNG: Very chewy and very soft. Very healthy. It's just like (INAUDIBLE) delicious sauce. It's very simple, but very good.

LU STOUT (voice over): While shoppers might indulge in this area (INAUDIBLE) markets, for Fung, it is all about finding local culinary

treasures.

FUNG: Sham Shui Po is very unique to Hong Kong, so you can get really classic favorites.

LU STOUT (voice over): Classic favorites like tofu pudding.

FUNG (voice over): It's really healthy and you can kind of see like -- there's like layers of tofu in here.

LU STOUT (voice over): Fung says the best in Hong Kong is served here at the family-owned Kung Wo factory.

RENEE SO, DIRECTOR, KUNG WO FACTORY: Actually, our shop has a very long history, almost 50 (ph) years.

LU STOUT (voice over): Renee So is the fourth generation to run this restaurant.

SO: We have a kitchen operating 18 hours a day, so we start making the tofu at 1:00 a.m nonstop until 4:00 p.m. every day.

LU STOUT (voice over): So says that the number of tourists who visit her restaurant has increased in the past few years, especially vegans (ph) and

vegetarians interested in soybean products. This might be true for So but Fung believes it is because of the area's charm.

FUNG: I think Sham Shui Po is becoming more gentrified. There's a lot of like older buildings that are being torn down and then they're building new

buildings so there are a lot of more people coming through.

LU STOUT (voice over): The area has also attracted food enthusiasts from across the world. "Parts Unknown" featured the famous Lau Sum Kee

Restaurant earlier this year.

FUNG: Lau Sum Kee is one of my favorite noodle spots in Hong Kong. They are known for their egg noodles. Actually, it's called bamboo noodles. They

still make it old school way.

So the first time I came here was with my dad, as well. This is one of his favorites. But it's like a classic Hong Kong dish. He's been eating it

since he was a kid.

LU STOUT (voice over): This is what childhood memories taste like. For fun, eating at Sham Shui Po reconnects her to her roots.

FUNG: Sham Shui Po to me is very authentic. When people want to come visit Hong Kong, I think they should come to Sham Shui Po because it actually

feels like Hong Kong.

LU STOUT (voice over): Authentic Hong Kong, certainly a palate teaser.

(END VIDEOTAPE)

LU STOUT: Did that wet your appetite? It did mine. And that is "News Stream." I'm Kristie Lue Stout, but don't go anywhere, "World Sport" with

Amanda Davies is next.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

END