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Ousted From Nissan, The Company's Board Votes To Dismiss Carlos Ghosn As Chairman; A Crucial Draft Agreement, the UK and EU Take A Big Step Forward On A Post Brexit Relationship; And A Judicial Feud, Donald Trump Fires Back After A Stern Rebuke From The US Chief Justice John Roberts; A CNN Exclusive On The Horrendous, Unimaginable Consequences Of Drought In Afghanistan, And Eastern Australia Cloaked In Red As Dust Storms Sweep In From The Outback; Amid Multiple Accusations Of Racism, The Fashion House Dolce And Gabbana Pulls A Shanghai Show And Big Names Threaten A Boycott. Aired: 8-9a ET
Aired November 22, 2018 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KRISTIE LU STOUT, HOST, NEWS STREAM: I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream." Ousted from Nissan, the company's board votes to
dismiss Carlos Ghosn as Chairman. A crucial draft agreement, the UK and EU take a big step forward on a post Brexit relationship. And a judicial
feud, Donald Trump fires back after a stern rebuke from the US Chief Justice John Roberts.
And we have breaking news out of Tokyo where Nissan's board has unanimously voted to oust Carlos Ghosn as Chairman. Ghosn who was widely praised for
turning around the Japanese carmaker more than two decades ago was arrested earlier this week on allegations of financial misconduct. Kaori Enjoji
joins me now live from Tokyo with more and Kaori, as expected the Board of Nissan has dismissed Ghosn as Chairman.
KAORI ENJOJI, CORRESPONDENT, CNN: That's right. This is an end of an era for Nissan and Carlos Ghosn and this is the celebrity CEO who helped turn
around and saved Nissan from the brink of bankruptcy nearly 20 years ago. His board convening especially today here in Japan and voting unanimously
to remove him as Chairman of the company.
At the same time, Greg Kelly, another executive who was arrested alongside Carlos Ghosn earlier on in this week was also removed from his position.
This ouster comes just three days after the arrest of Carlos Ghosn on allegations of financial misconduct including understating his income and
also possibly using corporate funds for personal gain.
This comes at a very, very delicate time for both Nissan and Renault and I think it is very unclear as to what is going to happen next. There are
question marks as to how this kind of financial misconduct could have gotten on for as long as five years as alleged and there have been concerns
that overall governance practices at Nissan itself in an attempt to address that at the special Board meeting today, Nissan has agreed to set up a
third party committee to examine their governance procedures.
Also interesting from this Board meeting was the fact that they failed to appoint a new Chairman to fill Carlos Ghosn's shoes. Instead, they have
set up an advisory committee which Nissan says will take nominations to try and fill that post. This is more than just a story of a fallen celebrity
CEO. This is the story of emblems of industry for Japan and France because it's Nissan and Renault we're talking about and to highlight that, the fact
that the economics and finance ministers, Kristie are both being later today in Paris, I think is very indicative of that fact.
LU STOUT: That's right and also on Carlos Ghosn on himself, they are in Japan. He has been arrested and he is being held in this detention center,
but he hasn't been charged yet. When are we going to hear any news on that? What kind of charges could he be facing?
ENJOJI: Well, the allegations are for financial misconduct as I say. The prosecutors are looking into that. They have 10 days, possibly up to 20
days to make a formal charge or to indict him. That first 10-day time span will take until the end of next week, until Friday, but they can extend
that for another 10 days. Until then, he will remain in this detention center, which is on the outskirts of Tokyo. He has access to a lawyer.
Interesting that the French Ambassador to Japan visited him this week in this detention center, which is highly unusual. Carlos Ghosn of course is
a French citizen, but it is very unusual for the Ambassador himself to make that visit.
And I think this is also another indication that this is becoming a very political hot button issue for both Japan and France as well.
LU STOUT: Breaking news, Carlos Ghosn has been ousted as Chairman of Nissan. This is an end of an era as he put it. Kaori Enjoji reporting
live from Tokyo. Thank you.
A deal that delivers - that was the message from the British Prime Minister just moments ago as she updated the world on the progress of Brexit
negotiations and once again, Theresa May insisted her draft agreement is the way forward. And her statement came just after she secured a key
agreement with Europe.
(BEGIN VIDEO CLIP)
THERESA MAY, PRIME MINISTER OF GREAT BRITAIN: This is the right deal for the UK. It delivers on the vote of the referendum. It brings back control
of our borders, our money and our laws and it does so while protecting jobs, protecting jobs, protecting our security and protecting the integrity
of the United Kingdom.
[08:05:04]
MAY: The agreement we've reached is between the UK and the European Commission. It is now up to the 27 leaders of the other EU member states
to examine this agreement in the days leading up to the special EU Council meeting on Sunday.
(END VIDEO CLIP)
LU STOUT: Now, the Prime Minister has agreed on a draft declaration on UK's post Brexit relationship with EU powers. The President of the
European Council, Donald Tusk sent out a tweet confirming that earlier in the day. Now, let's get latest on what all of these means. Nina dos
Santos is at 10 Downing Street in London with the British perspective, but first to Brussels where CNN's Erin McLaughlin is standing by. And Erin,
this declaration has been reached between the UK and 27 other EU states, how does it define their future relationship?
ERIN MCLAUGHLIN, CORRESPONDENT, CNN: Well, it defines it in some 26 pages, really laying out the groundwork for future negotiations once Brexit
actually takes place.
I have a copy of the leaked draft agreement right here. Let me just read to you Section 3 on Page 1 of this agreement. It says that this
declaration establishes the parameters of quote, "An ambitious broad, deep and flexible partnership across trade and economic cooperation, law
enforcement and criminal justice, foreign policy, security and defense and wider areas of cooperation." It goes on to say that "The future
relationship will be based on a balance of rights and obligations."
So reading through this document, Kristie, it's clear that there is something in it for both sides, but also clear compromises had been made.
Earlier today, the Commission gave its noon day briefing, a spokesperson there saying that at this point, it seems the Commission's work is done.
Take a listen to what he had to say.
(BEGIN VIDEO CLIP)
MARGARITIS SCHINAS, CHIEF SPOKESPERSON OF THE EUROPEAN COMMISSION: In a way, our job is done. As of 10:45 today, we are sending what we think
reflects an agreement, reached the negotiator's level, but also an agreement in principle reached at the political level.
(END VIDEO CLIP)
MCLAUGHLIN: So now that the political declaration has been completed in draft form, that will be distributed to the capitals for evaluation
alongside the agreement that was reached last week that is the Withdrawal Treaty, that is legally binding the terms of this so-called divorce. All
of that to be signed off potentially by the 27 remaining EU member states at this extraordinary summit that is expected here in Brussels on Sunday.
We are expecting another visit from British Prime Minister Theresa May before that happens now, Kristie, on Saturday.
LU STOUT: Got it, Erin. And Nina, Theresa May, she just made a statement there at 10 Downing Street. Is she now more confident, in a better
position to deliver a deal on Brexit?
NINA DOS SANTOS, CORRESPONDENT, CNN: Well, what she does have here is two parts of the puzzle, Kristie. As Erin was outlining the first part of the
puzzle was that withdrawal agreement which is rather detailed, 585 pages, rather controversial here in the UK especially with the key members that
prop up Theresa May's party, the DUP because they were concerned about the treatment of Northern Ireland.
Many MPs who might have been sitting on the fence will now have the second part of the puzzle, which is this political declaration, some clarity on
that and of course Number 10 will be briefing them to try and get them to put both parts together and make the pitch that this is the best deal that
Theresa May is able to get with Brussels for the UK. One that she said on the steps of Number 10 Downing Street just moments ago delivers on the
result of the referendum and is a significant breakthrough.
As Erin was pointing out though there is also negotiations that are going to be taking place here in the UK before she goes back to Brussels. She
has already had a conference call to update her Cabinet and in a couple of hours' time, she is going to be having an emergency statement in the House
of Commons to update Parliamentarians on this deal.
Remember, she needs support from all sides of the House. At the moment, as we've often said, the political arithmetic especially with the regards to
the withdrawal agreement hasn't looked like it was in her favor, let's see how things go now that they have the political declaration which could form
the foundation of the future relationship that the UK has with the EU, Kristie.
LU STOUT: Yes, the outputs of which very positive for Theresa May for the time being. Nina dos Santos reporting live for us in 10 Downing Street,
Erin McLaughlin live for us from Brussels. A big thank you to you both.
The lead up to a bombing, which took the lives of 22 people mostly young girls was riddled with mistakes by a British spy agency. Now, that's
according to report released on Thursday, which MI-5 admits it failed to track the bomber before last year's attack on a concert in Manchester,
England despite the fact that he was flagged for review.
It also says the agency failed to act after the bomber visited an extremist contact in prison more than once.
[08:10:05]
LU STOUT: Turning now to the United States where this week alone, President Donald Trump has sided with Saudi Arabia over his own
intelligence agency. He has blasted the retired US Admiral who oversaw the Osama Bin Laden raid and used a juvenile slur to insult a senior Democrat
congressman.
Now, he is going after the Chief Justice of the United States, Jeff Zeleny has that.
(BEGIN VIDEO TAPE)
JEFF ZELENY, SENIOR WHITE HOUSE CORRESPONDENT, CNN: President Trump in an extraordinary public feud with Chief Justice John Roberts.
On the eve of Thanksgiving, an unprecedented and unseemly exchange that started earlier in the day when the Chief Justice issued a rare rebuke of
the President for criticizing a member of the Federal Appeals Court as an Obama Judge.
"We do not have Obama judges or Trump judges, Bush judges or Clinton judges," Roberts said, "What we have is an extraordinary group of dedicated
judges, doing their level best to do equal right to those appearing before them. That independent judiciary is something we should all be thankful
for." The President firing back on Twitter. "Sorry, Chief Justice John Roberts, but you do indeed have Obama judges and they have a much different
point of view than the people who are charged with the safety of our country. It would be great if the Ninth Circuit was indeed an independent
judiciary."
In a second tweet, the President went to ask why there are so many opposing views on border and safety cases filed there and why there are a vast
number of cases overturned. Then he admonished Roberts to study the numbers and added, "They are shocking and making our country unsafe."
It all started as the President left the White House yesterday blasting at the judge's decision for temporarily blocking one of his executive orders
to change US asylum policy.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You go to the Ninth Circuit and it's a disgrace. This was an Obama judge and I'll tell you what? It's
not going to happen like this anymore.
(END VIDEO CLIP)
ZELENY: The Supreme Court Chief Justice appointed by President George W. Bush has been striving to bring civility to the bench.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CHIEF JUSTICE OF THE UNITED STATES: We speak for the Constitution. That job obviously requires independence from the political
branches.
(END VIDEO CLIP)
ZELENY: It was his statement defending the judiciary that provoked a response from Trump. All of this tonight as the President finally
submitted his written questions in the Russia investigation but Rudy Giuliani telling CNN special counsel Robert Mueller may be far from
finished with the President.
Giuliani, one of the President's lawyers is bracing for new questions for Mueller about potential obstruction of justice. A move he said the Trump
team would fight. "We will consider them and answer them if necessary, relevant and legal," Giuliani telling CNN, "If it was something that would
be helpful, relevant, not a law school exam."
As Trump opens his six-day holiday visit to his Florida resort, Giuliani's comments tonight signal the Russia probe and the President's role in it is
very much alive despite repeated attempts to diminish it, like yesterday while leaving the White House.
(BEGIN VIDEO CLIP)
TRUMP: The written answers to the witch hunt that's been going on forever, no collusion, no nothing. They've been finished.
(END VIDEO CLIP)
ZELENY: Giuliani said any questions about Trump's transition and actions during his time in office including whether he obstructed justice firing
FBI director James Comey would violate the President's executive privilege.
CNN has learned the President did answer Mueller's questions about potential Russian collusion including what he knew at the time about his
son, Donald Trump, Jr.'s meeting with Russians at Trump Tower and whether he knew anything about Russian hacks when saying this about Hillary
Clinton's e-mails on July 27, 2016.
(BEGIN VIDEO CLIP)
TRUMP: Russia, if you're listening, I hope you are able to find the 30,000 e-mails that are missing.
(END VIDEO CLIP)
ZELENY: So even as the Russia investigation still hangs over this President with a potential of new questions to come from the special
counsel's office, it is that extraordinary and unprecedented, perhaps, even unseemly fight with the Chief Justice that certainly is unusual,
particularly coming on the eve of Thanksgiving and of course, the President may need the Supreme Court and their ruling in the months and years to
come. Jeff Zeleny, CNN, West Palm Beach, Florida.
(END VIDEO TAPE)
LU STOUT: You're watching "News Stream," and still ahead, doing the unthinkable. A CNN exclusive on the horrendous, unimaginable consequences
of drought in Afghanistan, and Eastern Australia cloaked in red as dust storms sweep in from the outback.
[08:15:16]
LU STOUT: Coming to you live from Hong Kong, welcome back. This is "News Stream." Now in Afghanistan, something unimaginable is happening. An
extreme drought is forcing some families to sell their children so they can afford to feed the rest of their household. We are learning this as part
of an exclusive CNN investigation and tragically, this is just one of the many challenges that Afghanistan is facing right now.
CNN's Nick Paton Walsh has the story for us. He joins us now live from London. And Nick, in addition to the endless violence there, this drought
is driving families to do the unthinkable.
NICK PATON WALSH, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Yes, extraordinary this drought in the northwest of the country, around the city
of Herat. Some of you may be familiar, it has now for four seasons in a row, four years in a row not brought the rainfall needed desperately for
agriculture there, and that is adding the extraordinary parched nature of the land that is adding to the violence, to record deaths of Afghan
security forces and now, this awful, horrifying symptom of the suffering that people are facing.
(BEGIN VIDEO TAPE)
PATON WALSH: It's not record violence or Taliban control of territory that they are fleeing, not ISIS or unparalleled airstrikes by the coalition that
has finally forced them from their homes. They are instead running from drought. A record dry spell forcing more families in Afghanistan from
their homes this year than the war has.
And as if Afghanistan hadn't already broken all superlatives for its misery, this is what it is driving them to. Meet Mamarin and her six-year-
old daughter, Akilla. You think a tiny family united under plastic sheeting. The desperation means it hasn't turned out that way.
Mamarin has sold Akilla for $3,000.00 to this man, Najmadin who will give her to his 10-year-old son, Sheraga. Listen to how they got here. Mamarin
first.
I fled my village, she says with my three children because of severe drought. I came here thinking that we'll receive some assistance, but got
nothing. To avoid starvation among her children, I gave my daughter to a man for about $3,000.00, but I've only got $70.00 so far.
I have their money, no food and no breadwinner. My husband was also killed. She doesn't know that I've sold her, how could she know? She's a
child, but I had no other choice.
What if Akilla tries to run, we ask? Whether in tears or laughter, she says, Akilla will have to go. Who will sell a piece of her heart, unless
they really have to?
Akilla's buyer, Najmadin thinks buying a six-year-old girl is an act of charity. Her family don't have anything to eat he says. They were hungry.
I know, I am also poor, but I am sure I can pay it off slowly in two or three years. The cameraman asks, but aren't they children?
It doesn't matter he says. These things happen here even an old man marries a young girl. It happens.
Najmadin also fled the drought. The UN says it has put 275,000 people on the move this year, about half from around the area of Badghis.
The wheat crop has failed us, he says, we couldn't grow melons. All the other crops failed because of the drought. We lost our livestock, the
sheep, cows and goats all died of hunger as there wasn't any food for them.
Around the camp, we hear this kind of horrific story repeated.
[08:20:02]
PATON WALSH: Here, this man sold his four-year-old daughter to a 20-year- old man to settle a debt. It is a world of survival and unimaginable choices where families must betray each other just to live.
And winter is ahead, promising to be colder and arid and hungrier, too.
(END VIDEO TAPE)
PATON WALSH: Now startlingly, Afghanistan last year had a record opium crop, the raw material that goes on to make heroin that often ends up in
western markets. This year, the drought means that record, well they were 30% short of managing to produce as much. It is hitting every parts of the
Afghan economy and we have to also look at the broader context.
It is not clear if this recent period of drought is related to climate change that is more broadly sweeping the Earth, but if you look for example
to how the Syrian Civil War began, many say that there was a period of failed harvest ahead of that, exacerbated social tensions here and as we
all know, Afghanistan has have had decades of war, 17 years of US involvement of late and it is now reaching its serious (inaudible) in terms
of the loss of life. Kristie.
LU STOUT: Yes, just misery upon misery for many in Afghanistan. Nick Paton Walsh reporting, thank you.
Now, Sydney has been turned this shade of red as a dust storm makes its way across large parts of Eastern Australia. The red dust is being brought in
by winds from the country's drought stricken outback.
Authorities have advised residents to stay indoors if they can, to avoid inhaling the hazardous air. Meteorologist Chad Myers joins me now and
Chad, incredible to see these huge red dust forms in Sydney. What are the conditions like across Eastern Australia?
CHAD MYERS, METEOROLOGIST, CNN: Well, the low pressure was to their west and because it's south of the equator, the low is spinning the opposite way
that we expect it in the northern hemisphere and it took this dust that was in New South Wales just from the ground where there actually should have
been crops and plants and even just outback anything. Nothing there because it hasn't rained in so long.
They need 300 millimeters of rainfall over the next three months to get this drought under control in New South Wales, that's more rain than
they've had for the entire year so far, so that's what has happened here.
This dust picked up by the front itself and pushed into the eastern parts of Australia. Now, don't get me wrong, this is dust storm time of the
year. But typically, they don't get this far too the east to get to the air quality problems that we have had here across parts of Eastern
Australia.
Typically, the dust would settle before it would actually get there. Not this time. In fact, some of the areas here have very unhealthy air quality
and it's not going down. I was watching the last few hours of air quality, the AQI Index. You can go WAQI.info and watch these numbers go up as the
dust continues to settle in the area.
This is what New South Wales looks like. Lowest on record, all of these dark red in here, the lowest on record for moisture in the soil that they
have ever seen. So we need this low. We need the rain. We need another one and another one and another one, but the wind with this one was the
problem. It picked up the dust and blew it around rather than the rain getting their dust to settle, Kristie.
LU STOUT: Now, a bad drought fueling this bad air across Eastern Australia. Chad Myers reporting for us. Chad, thank you so much. Take
care.
MYERS: You're welcome.
LU STOUT: Now, people suffering from those deadly wildfires in Northern California, they are now preparing for a new danger, heavy rain. Now
warnings of possible flash flooding are in place for about a million people.
The wet weather is expected to last until Friday and it could trigger mud slides across hills where soil has turned to ash. More than 80 people are
now confirmed dead in fires across the states. More than 500 others are still unaccounted for.
The release of a new report on climate change has been moved up from December to this Friday and that has prompted speculation that the US
government is trying to bury the report amid Thanksgiving in so-called Black Friday shopping sprees.
The previous National Climate Assessment Report concluded that climate change was the result of human activities. President Trump has pointed to
the current cold snap in parts of the US to question global warming. Now, just a reminder, climate change refers to the consistent rise in global
temperatures year after year, not extreme weather over a short period.
To the Middle East now where a British academic who is beginning a life sentence for spying is at the center of a major diplomatic round. The UK
is warning of serious diplomatic consequences after Matthew Hedges was convicted and sentenced in a United Arab Emirates court.
The family of the 31-year-old says he had no lawyer at the hearing and was forced to sign a confession in Arabic, which he doesn't speak or read.
Hedges was arrested in May and held in solitary confinement for almost six months.
The British government was shocked by the verdict and Prime Minister Theresa May says they are taking action.
(BEGIN VIDEO CLIP)
MAY: We are of course as he is deeply disappointed and concerned at today's verdict and I realized how difficult and distressing this is both
for Matthew Hedges, but for also for his family.
[08:25:15]
MAY: We are raising it with the Emirate authorities at the highest level. My rather good friend, the Foreign Secretary is urgently seeking a call
with Foreign Minister Abdullah Bin Zayed during his visit to the UAE on November 12th, he raised the issue with both Crown Prince Mohammed Bin
Salman and the foreign minister and I can assure my honorable friends and other members that the foreign office will remain in close contact with
Matthew, his family and his lawyer. We will continue to do all we can to support them as they consider next steps and we will continue to press this
matter at the highest level with the Emirates.
(END VIDEO CLIP)
LU STOUT: Now, according to UAE law, Hedges has the right to appeal for a retrial. You're watching "News Stream," and after the break, amid multiple
accusations of racism, the fashion house Dolce and Gabbana pulls a Shanghai show and big names threaten a boycott.
I'm Kristie Lu Stout in Hong Kong, you're watching "News Stream," and these are your world headlines. Carlos Ghosn is out at Nissan after the
automakers Board voted unanimously to remove him as Chairman. Ghosn is currently in custody following his arrest on Monday on claims of financial
misconduct. He has not publicly commented on those allegations.
The British Prime Minister has insisted her Brexit plan is the right deal for the country. Theresa May spoke after reaching a key agreement with
Europe. She has secured a draft declaration on the UK's post Brexit relationship with EU powers.
The head of Russian military intelligence has died after a prolonged illness that's according to the country state media. Igor Korobov has
headed the GRU since 2016, the UK believes that orchestrated the nerve agent attack in Salisbury, England earlier this year.
The customer is always right, and they're also not happy. The fashion house Dolce and Gabbana are starting to lose business in one of their
biggest markets and it is backlash following accusations of racism. They've had to cancel a fashion show in Shanghai and the brand has been
pulled from big name online retailers.
(BEGIN VIDEO CLIP)
LU STOUT: In a series of Dolce and Gabban adverts, a model attempts to eat Italian food, with chopsticks accompanied by a narration and stereotypical
Chinese music.
The ad was intended to promote the luxury brand so called Great Show billed as a tribute to China to be held in Shanghai this week. Instead, it caused
a massive backlash and criticism for allegedly mocking Chinese people.
Reeling the controversy, a screenshot of alleged racist comments posted on Instagram by the company's co-founder, Stefano Gabbana reacting to
criticism of the videos and accused of making ...
[08:30:16]
LU STOUT: ... derogatory remarks towards China. He later reposted it with the words, "Not me." Claiming his account had been hacked. "I love
China and the Chinese culture. I'm so sorry for what happened." He wrote. The designer's apologized for any distress caused and in an official press
statement said this quote, "Our dream was to bring to Shanghai a tribute event dedicated to China which tells our history and vision. It was not
simply a fashion show, but something that we created especially with love and passion for China and all the people around the world who loves Dolce
and Gabbana."
But it was too late. Social media had erupted with criticism of the company and co-founder calling the advert and post offensive and racist.
The controversy was the number one topic on China's Twitter-like Waybo platform with more than 120 million reads.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (Through a translator): I think we need to be rational, but I think that we should see how they explain this matter to
us. If they maintain this vicious attitude and of course, we can't accept this, we need to boycott the brand.
(END VIDEO CLIP)
LU STOUT: Celebrities and models pulled out of the show which was eventually canceled. Movie stars like Zhang Ziyi said they would boycott
the brand.
(BEGIN VIDEO CLIP)
TIFFANY AP, BEIJING BUREAU CHIEF, WOMENS WEAR DAILY: My every day customer, we have just seen social media light up in videos, people taking
their Dolce and Gabbana clothes and destroying them in some really creative ways, so burning them, cutting them into shreds, using it as cloths to wash
their toilets et cetera.
I think this is nothing short of a real crisis for the brand.
(END VIDEO CLIP)
LU STOUT: As negative sentiment grows, police and security guards have been stationed outside Dolce and Gabbana stores in Beijing and Shanghai.
The CNN search result show Dolce and Gabbana products had been pulled of major Chinese e-commerce platforms like JD and Taobao.
What was supposed to be a great show has turned into a great fiasco for the brand. A massive market lost in just a matter of days.
(END VIDEO TAPE)
LU STOUT: Now a major PR disaster for Dolce and Gabbana. Now, in the west and frankly many parts of the world, Elon Musk's Tesla may be the pinnacle
of the electronic vehicle or EV industry, but in China, this electric car maker is backed by Warren Buffet may soon take over the throne, especially
in terms of sales.
Now, to find out Matt Rivers takes us on a spin with BYD's latest model in the Chinese city of Shenzhen.
(BEGIN VIDEO TAPE)
MATT RIVERS, CORRESPONDENT, CNN: In the race to dominate the global electric vehicle market, you might think that American carmaker Tesla is
leading the pack, but several Chinese competitors are catching up, if not already ahead.
And if you believe the snazzy car ads, one of them might just win.
(BEGIN VIDEO CLIP)
RIVERS: This is a high quality video.
MIA GU, BRAND MANAGER, BYD: Yes.
(END VIDEO CLIP)
RIVERS: This is one of the hopefuls - BYD or Build Your Dreams. The company launched here in Shenzhen 23 years ago. While you might not have
heard of it, investors have.
(BEGIN VIDEO CLIP)
RIVERS: It's a big milestone when Warren Buffet invests in a company.
GU: It is, it is.
(END VIDEO CLIP)
RIVERS: Mia Gu is one of the brand managers here.
(BEGIN VIDEO CLIP)
MIA GU, BRAND MANAGER, BYD: This BYD's car showroom.
(END VIDEO CLIP)
RIVERS: And she shows us their latest models, most aren't that flashy, cheaper designed with the average consumer in mind. But some are slicker
than others. Mia called them sexy.
Only one way to find out, we take their so-called new generation Tang out for a spin. So quiet. This sells for about half the price of Tesla's
popular Model S and that's their big pitch. It's just like a Tesla, but for less.
(BEGIN VIDEO CLIP)
GU: Tesla's price now is still a little bit expensive for many people.
(END VIDEO CLIP)
RIVERS: China is the world's largest automobile market and it's also the world's biggest polluter. No wonder perhaps that authorities want two
million electric vehicles sold here by 2020 and they offer subsidies to car buyers to help.
(BEGIN VIDEO CLIP)
GU: One of the biggest I think, the killer of people's health is the exhaust.
(END VIDEO CLIP)
RIVERS: They produced over 100,000 electric vehicles per year. Sold in China, California, and everywhere in between with a global work force
that's 220,000 strong. Clearly, China is going all in on new energy. Now, Tesla wants in here, too.
Elon Musk's company recently announced, it would open up a plant in Shanghai, not that BYD is worried.
(BEGIN VIDEO CLIP)
GU: We're quite open to competition. We welcome more and more industry players.
(END VIDEO CLIP)
RIVERS: Of course, the ride could be bumpy. After years of explosive growth, BYD's profits dropped 20% in 2017. Some now wonder if the dream of
electric vehicles here is too dependent on those government subsidies and what happens if they go away? But for now, the company is confident the
future is electric. Matt Rivers, CNN, Shenzhen.
(END VIDEO TAPE)
[08:35:04]
LU STOUT: Now, in the waterways near Mexico City, a genetic marvel and cultural icon is sadly facing extinction. Just ahead, why the Mexican
salamander matters to science and how one group of researchers is trying to save them.
Now, would you believe half of the food we produce end up in landfills and that all adds up to $680 billion in the industrialized world. Now, fruits
and vegetables rot when we don't eat them quickly enough, but a startup based in California has come up with an ingenious solution. Take a look.
(BEGIN VIDEO TAPE)
JAMES ROGERS, CEO, APEEL SCIENCES Food waste is an issue across the globe. If you look at estimates today, somewhere between a third and a half of
fresh produce that's grown ends up in a landfill.
In places of the world that don't have the same type of cold chain infrastructure that we take for granted here in the United States, those
losses can be as high as 80% to 90%.
And so appeal is really here to help start addressing those issues by reducing the amount of food that we end up throwing into a landfill.
My name is James Rogers and I am the CEO of Apeel Sciences. It's amazing that every single form of life on this planet employ some form of
protective barrier in order to insulate it from the environment.
With an avocado, that's the skin. The name of our company, Apeel comes from the idea that fruit with a peel on it has naturally five times longer
shelf life than fruit without a peel.
By creating this thin barrier of plant material on the outside of the produce, we slow down those first two processes, so we slow down the rate
that the fruit is losing moisture and we slow down the rate that oxygen is getting in and that creates a healthier piece of produce, which is
naturally able to resist those biotic stressors for much longer.
This could be better quality, longer lasting and more nutritious and you're going to be less likely to throw it away.
(END VIDEO TAPE)
LU STOUT: Some inspired thinking there. Now, in the murky waterways of Southern Mexico City, a true genetic marvel is on the brink of extinction.
It's called the axolotl or Mexican salamander and since the 1800s, researchers have been studying how they regenerate damaged tissue, not only
limbs, but heart tissue, spinal cord tissue, even brain tissue.
A 1998 census found there were about 6,000 wild axolotls per square kilometer in their main refuge in Mexico City. By 2004, that had dropped
to about 1,000 per square kilometer and in 2014, less than 35 per square kilometer.
According to one model, by 2020, there may be none at least not in the wild. But one group of scientists, they have a plan and joining me now is
the leader of that rescue mission. His name is Luis Zambrano. He is a biologist at Mexico's National Autonomous University and sir, thank you so
much for joining us. First tell us, why? Why is the axolotl on the verge of extinction?
LUIS ZAMBRANO, BIOLOGIST, MEXICO's NATIONAL AUTONOMOUS UNIVERSITY: Well, I think that we have two reasons, but basically, this is because this is the
urbanization of Mexico City. I mean, the wetland is in Mexico City, the axolotl just living in that area, or at least the last remains of axolotls
that are still living in that area.
[08:40:10 ]
ZAMBRANO: So we have three basically problems. One is urbanization per se. I mean, the axolotl is stressed with human population, but basically
with noise. The second one is water quality. Mexico City needs a lot of water and this is stealing the water from the wetland to humans'
necessities, and we return that water to the wetlands, so the water quality has dropped in the last 50 years or so.
And the third problem is the exotics invasion of carpa and tilapia which have been invading most of the water systems in Mexico. But here, it's
really, really bad.
So we have these three problems, those are causing the eradication of axolotl population.
LU STOUT: Yes, human encroachment, invasive species, water pollution. These are the threats, so what can be done to restore the population in the
wild?
ZAMBRANO: Well, basically, we are trying to do the same thing that we have done for almost 2,000 years in that area that we forgot in the last 60
to 70 years. We are trying to restore - the area where they live is called Xochimilco was a huge barn or the food production for Mexico City and in
the last 50 years, it's changed that for the urbanization process.
So we are trying to restore the traditional agriculture, which was living very well with axolotls for 2,000 years since the Aztecs arrived there.
LU STOUT: Yes, and these are remarkable creatures. They can regenerate tissue. If we lose these species, is this also major loss for science and
medicine?
ZAMBRANO: Yes, I mean, the thing is like we may lose the genetic variability of these species because the wildness - the axolotls in the
wild are by far more diverse in terms of genetic structure than the ones that are in tens around the world. I mean, we have axolotls around the
world in different colonies, but they are less diverse than the ones that we have in the wild.
So we can lose a lot of things, particularly Mexicans who will lose parts of our history because the axolotls are part of our culture because
axolotls can become part of our culture for a long time.
LU STOUT: Well, we have to save this beautiful creature. Luis wishing you and your team the very best as you do just that. We'll have to leave it
there and that is it for "News Stream." I'm Kristie Lu Stout. Don't go anywhere, we've got "World Sport" with Christina McFarland coming up next.
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