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NEWS STREAM
The Crisis Intensifies: The European Parliament Recognizes Juan Guaido As Venezuela's Interim President With More Opposition Protests On The Horizon; Hazardous Pollution: Thailand's Air Quality Gets So Bad That Schools Close For The Rest Of The Week; Apple Takes Action, The Tech Giant Bans A Facebook Data App That It Says Violates Its Policies. Aired: 8:00- 9a ET
Aired January 31, 2019 - 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." The crisis intensifies: The European
Parliament recognizes Juan Guaido as Venezuela's interim President with more opposition protests on the horizon. Hazardous pollution: Thailand's
air quality gets so bad that schools close for the rest of the week. And Apple takes action, the tech giant bans a Facebook data app that it says
violates its policies.
And we begin in Venezuela where the country's political crisis is now having international ramifications. We have heard that Britain's Foreign
Secretary says that he backs the idea of targeted sanctions against President Nicolas Maduro and those in his regime. While the E.U.
Parliament has just voted to recognize opposition leader, Juan Guaido as Venezuela's acting President - a huge vote of international support.
Also in the past few hours, Spain has condemned the detention of four journalists from the Spanish news agency, EFE who have been held in
Caracas. Now, in Venezuela, there is anti-government protesters filled the streets of Caracas. Once again, the self-proclaimed President, Juan Guaido
trying to win the support of the military and abandon President Nicolas Maduro.
In a "New York Times" op-ed, Juan Guaido writes that the opposition has quote, "Had clandestine meetings with members of the Armed Forces and
security forces." Guiado says, "Mr. Maduro's time is running out." And he is asking for the support of pro-democratic governments, institutions and
individuals the world over.
Now, let's get the latest now from CNN's senior international correspondent, Nick Paton Walsh.
(BEGIN VIDEO TAPE)
NICK PATON WALSH, SENIOR INTERNATIONAL CORRESPONDENT, CNN (voice over): It was one of many that will probably come, but Wednesday's protests were
smaller than the week before. Noisy all the same, and amplified globally by President Donald Trump, who personally telephoned self-declared interim
President and opposition leader, Juan Guaido, just beforehand to offer support.
"Solid support and recognition," he said. "To the Venezuelan constitution, is something very important, not only through Trump, but with more
Presidents in the world, something being discussed now in Europe."
But Guaido has a long road ahead to turn the calls of international recognition and support into actual governing. Trump officials have met
with opposition appointed diplomats in D.C. and say Guaido now has control over eventually billions of Venezuelan state funds frozen under sanctions
in the United States.
But how on earth he will actually get his hands on them or use them in the country to provide humanitarian aid to the hungry is not clear.
Embattled President Nicolas Maduro did what he could to appear in control Wednesday on a walkabout with the very military elites keeping him in
power.
NICOLAS MADURO, EMBATTLED VENEZUELAN PRESIDENT: (Speaking Spanish).
WALSH (voice-over): And delivering a stark response to the White House's talk of all options being on the table.
"We won't allow a Vietnam in Latin America," he said. "If the U.S. intends to intervene against us, they will get a Vietnam worse than they could have
imagined."
The U.S. has dangled the prospect of military action conspicuously in public view. National Security adviser, John Bolton's note-to-self to send
5,000 troops to Colombia, bluntly raising the temperature, whether real or faked.
Yet the Trump administration admits it hadn't heard of Guaido a month ago, and it's hastily conjured vision of Venezuela's future still hasn't found a
way of turning the opposition government they recognize into something real on the ground.
But it must also deal with the urgent and real starvation and poverty of millions that it will increasingly own that more inserts itself into
Venezuela's future -- Nick Paton Walsh, CNN, Bogota.
(END VIDEO TAPE)
LU STOUT: And an update from what you heard from Nick Paton Walsh there, the E.U. Parliament has, in fact, voted to recognize opposition leader,
Juan Guaido as the acting President of Venezuela.
Now, for more background on the horrendous economic crisis in Venezuela, let's bring up our emerging markets manager, John Defterios, who joins us
from Abu Dhabi and John, good to see you.
This has been said time and time again, this is a crisis that was years in the making. Talk to us about the state of the Venezuelan economy.
JOHN DEFTERIOS, EMERGING MARKETS EDITOR, CNN: Well, it's extraordinarily, Kristie, hyperinflation like we've never seen before. It was a million
percent last year. IMF projections are -- from the International Monetary Fund to be 10 times that level in 2019.
[08:05:07]
DEFTERIOS: Nick touched upon it, but not just hyperinflation, but the poverty rate has surged 40% over the last four years. We're looking at
nearly 90% and medicine shortages, food shortages, in a country that has the largest proven oil reserves in the world suffering from power shortages
as well.
It's fascinating, Maduro a week ago has the support of the top military brass paraded around with him yesterday, but it's clear the U.S. is trying
to put a wedge between the military and the leadership as we speak, particularly with the financial news, I think, Kristie, they're chasing
bank accounts of Maduro and the military in offshore accounts, looking for gold that could be overseas as well.
So the message is clear, you can negotiate with us. We'll execute a nice exit for Maduro if that's going to be the case. The opposition leader
Guaido is suggesting the same, but if not, and the U.S. Central Bank and the U.S. Treasury Department have the full backing to chase dollars
wherever they are, because of the US. central banking system.
Now the oil industry has been under a crisis for the last ten years. Let's roll back the clock to 2008. They were producing 3.2 million barrels back
then. That production at the end of 2018, as you can see the top line there, it's just 1.1 million barrels a day. Half of that has been imported
by the United States, and another aggressive move by the U.S., they're putting that revenue into the National Assembly and not into the hands of
Nicolas Maduro.
So 20 years under Chavez, five along with Maduro and you have an oil industry and a crisis because it's not getting any foreign direct
investment. And at the end of the day, it's the Venezuelan people who are suffering something we haven't seen in a quarter century for a single
economy not faced with war to see the hyperinflation due to the printing of money by the Venezuelan Central Bank and the leaders, Maduro and before
him, Hugo Chavez.
LU STOUT: Yes, people are certainly suffering because of the gross economic mismanagement that has been going on for decades inside Venezuela.
John Defterios, reporting live for us. John, thank you so much.
U.S. President Donald Trump is set to meet with the Chinese Vice Premier in the Oval Office in the coming hours, as trade officials from both countries
sit down for a second day of high stakes trade negotiations.
If the two sides don't close a deal by March 2nd, Mr. Trump has threatened raise tariffs on $200 billion worth of Chinese imports. Moments ago, he
tweeted this, let's bring it up for you. Quote, he says, "China's top trade negotiators are in the U.S. meeting with our representatives.
Meetings are going well with good intent and spirit on both sides. China does not want an increase in tariffs and feels that they will do much
better if they make a deal. They correct. I will be meeting with their top leaders and representatives today in the Oval Office. No final deal
will be made until my friend, President Xi and I meet in the near future to discuss and agree on some of the long standing and more difficult points.
Very comprehensive transaction."
All right, for more on what we can expect on today's talks, we've have CNN's Matt Rivers, joining us now from Beijing. And Matt, interesting
tweet from Donald Trump, just read out loud just now. He again, highlighting his close personal friendship with Xi Xinping. Liu He, the
top Chinese negotiator will be representing Xi's interests when he meets with Trump in the Oval Office. High stakes meeting, so much going on here,
what's going to come out of the meeting?
MATT RIVERS, CORRESPONDENT, CNN: Yes, I mean, these tweets from Donald Trump just came out recently, just within the last half an hour or so it
looks like and that's really kind of the first on the record insight into the first day of meetings there.
Sorry about that, Kristie, I'll just have to get mic'd up here. I apologize for that, but China's top trade negotiators basically have been
in Washington since Monday. They had that first day of meetings on Wednesday. Obviously, they are going to meet with Donald Trump today.
That's a huge deal. The fact that Liu He, China's top negotiator will be in the Oval Office there, but what really stood out to me about this tweet
from Donald Trump is that, "No final deal," he says, "Will be made until President Xi and I meet in the near future to discuss and agree on some of
the long standing and more difficult points."
There is no meeting that we are aware of in the near future ala before that March 1st deadline. That's when tariffs go up from 10% to 25% on $200
billion worth of Chinese imports. That will be a huge escalation.
As far as we are aware, there is no meeting scheduled, right now, at least. At least publicly between Xi and Trump before that date, so we're not
exactly sure what the President is saying here. And of course, we're going to try and get some sort of guidance on that from our team at the White
House.
But basically, what my question would be is, is he saying there is no deal possible unless Xi and Trump meet before March 1st or is he saying that
maybe there could be some sort of deal that could - that maybe things could be put on hold until him and Xi meet to kind of finalize an overall
comprehensive deal? He says he wants a comprehensive deal.
[08:10:10]
RIVERS: He doesn't want to leave anything on the table here. So some confusion from the President here this morning. We're definitely going to
need more clarification, Kristie, in terms of exactly what he is talking about what he is talking about when he says there can't be a deal made
unless him and Xi meet before March 1st. That's going to be difficult to pull off, I would suspect given the short notice.
LU STOUT: Absolutely. Matt Rivers reporting live for us from Beijing, thank you very much, indeed.
Now the European Union says that it fully supports a plan by three of its members at attempts to salvage the Iran nuclear deal. Britain, Germany and
France have officially set up a payment channel with Iran to circumvent U.S. sanctions. Germany's Foreign Minister says the plan has been in the
works since the U.S. withdrew from the nuclear deal last year. A formal announcement on the move is expected later today.
Let's break it all down with Atika Schubert. She joins us live from Berlin. And Atika, in practical terms, how does this payment mechanism
work and is it enough to keep the Iran deal afloat?
ATIKA SCHUBERT, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Yes, well, these are the big questions. I mean, this has been talked about for some time.
But it looks like it is finally becoming a reality. And it will essentially be as you pointed out, a work around U.S. sanctions.
According to NDR, Germany's - a subset of Germany's state broadcaster, the special purpose vehicle as it is called is INSTEX which stands for In
Support of Trade Exchange, and it basically allows European companies who want to trade with Iran to do so on this European exchange, using euros,
rather than dollars.
Now, the question as to whether or not it will work really depends on how many companies use it. It's not clear yet and, of course, it's going to
take several weeks to set up. We're presuming it will be announced at some point today. We are waiting for the E.U. Foreign Minister's meeting in
Bucharest to make that announcement.
We did hear from the Vice President of the E.U. Commission, Federica Mogherini, explaining why INSTEX, why this exchange was needed. Take a
listen.
(BEGIN VIDEO CLIP)
FEDERICA MOGHERINI, VICE PRESIDENT OF THE EUROPEAN UNION COMMISSION: The European Union is fully behind the full implementation of the nuclear deal
with Iran for the simple reasons we see it is working. There are 13 reports now by the EIEA that Iran is fully compliant with its nuclear
commitment.
(END VIDEO CLIP)
SCHUBERT: So you hear from that that the E.U. believes the Iran nuclear deal is working and as such, there must be way for companies to continue
trading with Iran. And this is the E.U.'s solution. So it is really a significant move by the E.U., because it is in complete defiance of what
the Trump administration says is a failing Iran nuclear deal. We'll have to see how the White House reacts after today.
LU STOUT: Atika Schubert reporting live from Berlin. Atika, thank you. Now, trashing the Iran nuclear deal, that was a key part of Donald Trump
Trump's presidential campaign. And now he is slamming his own intelligence experts for contradicting him.
Now, remember, these are people that Mr. Trump handpicked. It came after the Director of the National Intelligence testified to the Senate and
directly contradicted Mr. Trump's views on Iran, ISIS and North Korea. Here is part of the President's tweet storm, quote, "The Intelligence
people seem to be extremely passive and naive when it comes to the dangers of Iran and perhaps Intelligence should go back to school," unquote.
CNN national security analyst, Sam Vinograd is live in New York, she joins us now and Sam, wow, he has done this before, but again in a very public
way. President Trump has slammed his own intelligence chiefs. Why does he do this?
SAMANTHA VINOGRAD, NATIONAL SECURITY ANALYST, CNN: He does this because the analysis that they are putting forward, which I really want to stress
here, is not just one person's view. This is a coordinated analysis of the entire U.S. Intelligence community. The 16 agencies that make up that
community work for months to put this thorough assessment together.
We saw the unclassified version released publicly, an unclassified briefing. The classified version, which I've seen when I worked for the
government is much longer. But that is a coordinated assessment of the entire Intelligence Community. They all agree on what's in there, but what
the assessment shows is not what President Trump wants to be able to say is true based upon a political narrative that he is trying to push forward
when it comes to North Korea, when it even comes to China, which you mentioned in your previous segment. He called President Xi a friend. That
is really the opposite of what the Intelligence assessment says.
So he wants to have Intelligence that fits a political agenda, rather than taking this Intelligence assessment, like previous Presidents have done and
using it to really identify whether his policies are working and whether he needs to shift resources or shift strategy.
[08:15:09]
LU STOUT: So President Trump is accepting his intelligence from his Intel chiefs because it doesn't align with his political beliefs, then where is
he getting his intelligence from?
VINOGRAD: Well, that is the million dollar question. We have a few clues. One is he does tend to get a lot of information from television. If you
look at his Twitter feed, there are constant references to on-air commentary and there is a strong possibility that he is relying on
information from a shadow Cabinet of foreign leaders who he meets with one on one.
We know that he has spent time with Vladimir Putin and he has said that he believes Vladimir Putin when Putin says he didn't interfere in our
election. Well, an entire intelligence committee agrees that Russia interfered, in our 2016 election, that they tried to interfere in our 2018
midterms and that they're trying to do it again in 2020.
We know that President Trump spoke to President Erdogan and decided to withdraw from Syria. So it seems like he is getting information and advice
from these leaders rather than relying on his Intelligence Community who in the first instance, really know what to be on guard for when he meets with
foreign leaders who have intelligence backgrounds, like President Putin and for the accurate information that through the U.S. national security needs
and not what foreign leaders have on their own agendas.
LU STOUT: So if President Trump is consulting with Vladimir Putin as a sort of shadow adviser and not listening to his own Intelligence chiefs,
what can the U.S. Intelligence Community do? We know that they are united in their assessment on ISIS, on Iran, on climate change, on North Korea.
But they have a President who doesn't listen, so what can they do?
VINOGRAD: That's such an excellent question because the Intelligence Community does not make policy. The Intelligence Community provides the
best assessment they have on issues and they deliver it to their Intelligence customers. The President is arguably the Intelligence
Community's number one customer. Their job is to get him their best assessment. They give that to him and hope that he is going to use to use
it to inform policy. They can't make him do that.
So at that point, you have to ask, well, what is the check and balance? Who else sees that Intelligence? And that's why this briefing to Congress
earlier this week was so important. Congress has an oversight role and Congress cannot curtail the President based upon his executive authorities
on a range of issues, but, for example, we have seen Congress act to design sanctions that really pass with an overwhelming bipartisan majority against
Russia when they felt that the President was not going to act.
So now that they have all of this information, again, keep in mind, they got a classified briefing or many of them in addition to the open briefing.
Are they going to use that information to take any additional steps to try to prevent a withdrawal from Syria, actions against Saudi Arabia, actions
against Russia, and that sort of thing?
LU STOUT: Got it. Sam Vinograd, as always, thank you so much. Take care.
VINOGRAD: Thank you so much.
LU STOUT: You are watching "News Stream." And still to come right here on the program, a toxic smog has been blanketing Bangkok's skies for weeks
leaving officials scrambling to find ways to clear the air. And a job doesn't get much tougher than this. While most folks are staying inside,
firefighters and police across the U.S. battle the coldest temperatures in a generation. We'll have the latest on that.
(COMMERCIAL BREAK)
[18:20:27]
LU STOUT: All right, coming to you live from Hong Kong, welcome back. This is "News Stream." Now, authorities in Thailand have ordered all
schools in Bangkok and nearby provinces to close for a week after concerns over this hazardous levels of air pollution. The air quality index level
has surged to 175, well past the World Health Organization's safe level of 25.
Officials are now using an unusual way to combat the problem.
(BEGIN VIDEO TAPE)
LU STOUT (voice over): These are Thailand's latest pollution fighting weapons. Dozens of drones dispatched in a desperate attempt to battle
toxic smog in Bangkok by spraying a water and molasses solution to catch air particles.
(BEGIN VIDEO CLIP)
ASWIN KWANMUANG, BANGKOK GOVERNOR (Through a translator): We are doing this because we think it will get better. If we do nothing, we will be
criticized for not doing anything.
(END VIDEO CLIP)
LU STOUT (voice over): But the plan has a number of critics.
(BEGIN VIDEO CLIP)
TARA BUAKAMSRI, THAILAND COUNTRY DIRECTOR, GREENPEACE SOUTHEAST ASIA: That dawn operation, the drones today in the morning, actually it's a stunt.
It's useless operation.
(END VIDEO CLIP)
LU STOUT (voice over): A murky haze has been choking the capital for weeks now, sparking criticism over the government's uneven response just weeks
ahead of elections.
Students across Bangkok were dismissed from class early on Wednesday after authorities ordered the closure of hundreds of schools for the rest of the
week.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (Through a translator): I don't want school to be closed because it's getting close to final exam. But I'm worried about my
kids' health.
UNIDENTIFIED FEMALE (Through a translator): I heard on the news that schools were closed, so I rushed here. My son's health is got good. He
coughs a lot and always has to use a nasal spray.
(END VIDEO CLIP)
LU STOUT (voice over): Thailand's Department of Pollution says air quality in Bangkok has fallen to harmful levels as the amount of hazardous dust
particles known as PM2.5 exceeded safe levels in more than 40 areas around the capital. These microscopic particles are small enough to lodge deep
into the lungs and pass on to other organs.
(BEGIN VIDEO CLIP)
BUAKAMSRI: Ever increasing number of automobiles in the city; another source is also coming from factory, large scale burning from plantation
from mining, from deforestation in Cambodia.
(END VIDEO CLIP)
LU STOUT (voice over): Authorities have tried everything from seeding rain clouds to housing down streets to control the pollution crisis. But have
so far failed to clear the air.
(END VIDEO TAPE)
LU STOUT: And these smoggy skies couldn't come at a worse time for Thailand with the Lunar New Year just days away. People celebrating have
been urged to reduce the use of incense and fireworks and the government is considering closing factories if this situation does not improve.
Now, more than 200 million people across the United States, they face another day of dangerously cold temperatures. At least 11 weather-related
deaths have been reported so far. Conditions are so brutal that many have been warned not to even step foot outside.
Frostbite can occur within minutes. Record lows are being set across the Midwest, including Chicago, and it's even too cold for the Postal Service,
which has suspended service across large parts of the country.
In the southern hemisphere, dangerous extremes of another kind. Humans are helping zoo animals beat the heat as temperatures reached 40 degrees
Celsius. The heat is making it difficult to fight wild bush fires in South Australia.
Now, let's get more now on the conditions in the U.S. and the challenges faced by those on the front lines. Ryan Young now with more on this deadly
cold.
(BEGIN VIDEO TAPE)
RYAN YOUNG, NATIONAL CORRESPONDENT, CNN (voice over): A brutal arctic freeze, sweeping over nearly a quarter of the country, bringing the coldest
air in a generation to parts of the Midwest.
(BEGIN VIDEO CLIP)
ROCHELLE DAVENPORT, CROSSING GUARD: It's freezing cold. My face, my toes, everything.
(END VIDEO CLIP)
YOUNG (voice over): With a low temperature of negative 23 and a wind chill of negative 52, the Windy City's temperatures lower than parts of
Antarctica and Alaska causing giant ice breaks to blanket the river and a wall of ice steam to form along Lake Michigan and across the skyline.
The dangerously cold weather even showing its strength inside.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The steam froze around where the leaks are in my front door.
(END VIDEO CLIP)
YOUNG (voice over): In Minnesota, a wind chill of 65 below zero. These ultra-marathoners crossing the finish line with their faces fully covered
in ice. Police uniforms frozen completely upright to showcase the freezing cold.
Residents in both Minnesota and Michigan asked to turn down their thermostats to conserve natural gas. Meanwhile, snow squalls ripping
through the northeast, bringing near whiteout conditions and winds of up to 30 miles per hour in New York and Philadelphia.
[08:25:10]
YOUNG (voice over): This time lapse video showing the squall blowing through New York City, lake-effect snow creating blizzard-like conditions
in upstate New York, dropping two to three inches of snow per hour in Buffalo, where temperatures dipped to negative 35 below zero. Near
Rochester, a 21-vehicle wreck bringing this highway to a standstill. A snow squall also to blame for this 27-vehicle pileup near Reading,
Pennsylvania.
(BEGIN VIDEO CLIP)
ROBERT STRAUSE, DRIVER: We couldn't see anything because the snow was being driven perfectly horizontal.
(END VIDEO CLIP)
YOUNG (voice over): First responders across the country forced to brave the treacherous conditions.
(BEGIN VIDEO CLIP)
JOHS BUSH, DEPUTY CHIEF, MAHAFFEY COMMUNITY VOLUNTEER FIRE DEPARTMENT: The temperature not only affects the manpower, but also the hose lines freeze
up instantly.
(END VIDEO CLIP)
YOUNG (voice over): Firefighters in Indiana covered in ice as they battle this house fire in negative 22 degree weather.
(END VIDEO TAPE)
LU STOUT: And that was CNN's Ryan Young reporting. You know, quite a challenge for emergency crews across the United States given those
conditions. Let's go to the CNN Weather Center for more. We've got Chad Myers for a look at when there could be some relief. And Chad, dangerous
weather there, bone chilling weather in parts of the U.S., when will conditions improve?
CHAD MYERS, METEOROLOGIST, CNN: I believe everyone will get out of a negative compared to record levels on Saturday afternoon. So we still have
48 hours of this. A hundred and twenty million people will feel wind chills at zero degrees or colder today and it's just everywhere.
Now, that's zero Celsius. And we go minus 40 Fahrenheit is equal to minus 40 Celsius. So that's where the scales cross, and it feels like 37 below
right now -- Celsius in Detroit, and that's what the wind on your face, that's the wind on the pets. That's the wind on everything except
vehicles. Vehicles don't feel wind chill, they just feel the temperature.
Well, the temperature in Minneapolis right now is 31 below. International Falls 43 below degrees Celsius. So most of these areas here are seeing
airport delays. Two thousand or more planes cancelled yesterday, already that many planes flying today have been cancelled. Many people here in the
United States trying to get to the football big game coming up over the weekend in Atlanta, Georgia, unable to fly through Chicago at all.
Here comes the warm air. It is on its way. It finally gets here Saturday. Finally here, we will begin to warm things up. Wednesday's morning low of
30 degrees below zero was the coldest since 1994 and then by Monday -- Sunday into Monday -- we get back up somewhere in the ballpark of about 10
to 12. Even New York City up to 14.
But there is so much cold air, so much misery. Most of the schools have actually cancelled because they don't want the kids standing on the bus
stops when the wind chill is approaching minus 40 degrees out there.
LU STOUT: All right. The cold weather there in the United States, both deadly and highly disruptive. Chad Myers reporting for us live. Chad,
thank you.
You are watching "News Stream" and still to come, it is spat of the Titans. Apple bans a Facebook app for violating its policies, and Facebook hits
back. We'll tell you more.
And speaking of Facebook, how do you know if a video you watch online is truly real? A warning on the latest internet deception coming up.
(COMMERCIAL BREAK)
LU STOUT: I'm Kristie Lu Stout in Hong Kong. You are watching "News Stream" and these are you're world headlines. The E.U. Parliament has
voted to recognize Venezuelan opposition leader, Juan Guaido as acting President. It is a huge international endorsement for Guaido who says he
has held secret meetings with the military to try to get support to oust President Nicolas Maduro. This as, Britain's Foreign Secretary says he
backs the idea of targeted sanctions against the Maduro regime.
Britain, Germany and France have officially set up a payment channel with Iran to avoid U.S. sanctions against the country. Germany's Foreign
Minister says a plan to allow international payments between Europe and Tehran has been in the works since the U.S. left the Iran nuclear deal last
year. The European Union announced that it fully supports the move.
The pop megastar Mariah Carey is facing calls to cancel her concert in Saudi Arabia set to take place in the coming hours. Women's rights
activists are hoping that she will at least use her platform to push for change. They say that she should focus attention on the many women
languishing in Saudi prisons simply for campaigning for the better treatment of women.
Now, turning to tech in a spat between two titans. Apple has banned a market research app used by Facebook to collect data on how people use
their smartphone. In this statement, Apple said this, quote, "Facebook has been using their membership to distribute a data collecting app to
consumers, which is a clear breach of their agreement with Apple."
Now participants signed up and were paid by Facebook to take part in the program, which tracked users' phone as well as online activity. And
Facebook has responded. CNN's Samuel Burke joins us now with more and Samuel, we've got this brewing feud between Apple and Facebook over data
privacy. It is heating up and now Facebook has a response, what is it?
SAMUEL BURKE, BUSINESSS AND TECHNOLOGY CORRESPONDENT, CNN: That's right. In fact, there is an interacting headline or rather clever headline in the
"New York Times" today that has this picture of Tim Cook and it says, "Maybe only Tim Cook can fix Facebook's privacy problems," because, of
course, it is Tim Cook's company that's taking this app out of the Apple app store. Facebook is not falling on their sword.
Facebook is saying, "Hey, we were very clear that this app was paying people $20.00 a month in gift cards to get information," including
teenagers they were paying to get this information.
Let me just put up on this screen exactly what a Facebook spokesperson is telling us, saying, quote, "The following key facts about this market
research program and the app was called Facebook Research are being ignored. There is nothing secret about this. It was legally called the
Facebook Research App."
I think this really shows, Kristie, the lengths that Facebook is willing to go to try and get data, even it is legal, may be even ethical but even seen
poorly, it could be poor PR headlines for them. They want data, it seems at all costs, including twenty bucks a month in gift cards.
LU STOUT: You know and despite the bad press that Facebook gets over its handling of our privacy, it's still raking in the cash. The latest
earnings report is out.
BURKE: That's right. Facebook stock is up 11% in pre-market right now. It's fascinating when Wall Street gets everything wrong and suddenly, a
report comes out that's really the opposite of what people expected. Let me just put up on screen for you, the three big takeaways I have after
Facebook but out this blockbuster earnings report.
Number one, 2018 was terrible PR, but great for business. People are addicted to social media it seems because they say they're deleting the
app, but they don't, and where else are advertisers going to go? Number two, Facebook it seems like they're going to shift away from reporting
Facebook's numbers to all of their messaging apps, like Instagram, WhatsApp and Messenger.
So just like Apple is not reporting iPhone as often. The next time around, expect to see so much about the other apps, because they're starting to
well and expect to see more ads in Instagram especially.
And number three, and perhaps the most important, Kristie, fake accounts are up 27% to 116 million. So we heard Sheryl Sandberg say as soon as this
report came out, this shows that we can both spend money on security and at the same time be profitable.
[08:35:00]
BURKE: But I don't know how people would agree the platform is safe if the amount of fake accounts is going up which 27% in spite of all those
scandals we heard about fake news and the Russian accounts in 2018.
LU STOUT: It's incredible, despite the Cambridge Analytica scandal, despite the tech lash against Facebook, earnings bonanza for the platform.
Samuel Burke reporting for us live. Samuel, thank you so much.
Now, these days it is easy to get duped by disinformation and something called deep fake videos because of advancements in AI. But for the U.S.
government combating this art of social media deception has become a matter of national security.
Miguel Marquez has more.
(BEGIN VIDEO TAPE)
BARAK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: Especially our friends who are lesbian, gay and bisexual.
MIGUEL MARQUEZ, NATIONAL CORRESPONDENT, CNN (voice over): Which Barack Obama speech is real, which is fake?
(BEGIN VIDEO CLIP)
OBAMA: I visited with the families of many of the victims on Thursday.
(END VIDEO CLIP)
MARQUEZ (voice over): The one on the right, fake? Researchers at the University of Washington took Obama's speaking and made it look like he
said the same thing at a different time and place. How about this one? Which one is fake if you pick the man? You are wrong. Researchers at
Stanford University transferred the expression, head position and eye gaze from a man and applied it to the woman. They are called deep fakes --
videos that look so real, it's hard to tell what's fake.
BuzzFeed published this Obama video. His lips digitally altered. His voice, the actor Jordan Peele.
(BEGIN VIDEO CLIP)
JORDAN PEELE, AMERICAN ACTOR: There is a dangerous time.
(END VIDEO CLIP)
MARQUEZ (voice over): It doesn't take much imagination to see how videos like these could diffuse, disrupt and intensify anger in everything from
business to foreign policy to politics.
(BEGIN VIDEO CLIP)
RICHARD BURR, U.S. SENATOR, NORTH CAROLINA, REPUBLICAN: I don't need to remind anyone in the room, when this country's democracy was attacked in
2016, it wasn't with a bomb or a missile or a plane, it was with social media accounts that any 13-year-old can establish for free.
(END VIDEO CLIP)
MARQUEZ (voice over): In the year since the 2016 election campaign, we have seen fake after fake after fake, including photos of Hillary Clinton
or Donald Trump, meant to stir anger, motivate or depress one side or the other. Many shared tens of thousands of times.
(BEGIN VIDEO CLIP)
AARON LAWSO, SRI INTERNATIONAL: Yes, I think many times you can misrepresent reality in a the way that can convince people of it being
other than it really is, is potentially dangerous, especially if you have no way of detecting it.
(END VIDEO CLIP)
MARQUEZ (voice over): Detecting fakes is exactly what SRI, along with the government's defense advanced research projects agency is trying to do.
Trying to stay one step ahead of deep fake technology using artificial intelligence to teach computers the tell-tale signs of a fake.
For now --
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: This is very truly surprising for me.
(END VIDEO CLIP)
MARQUEZ (voice over): It's a little bit of fun whether a Jennifer Lawrence, Steve Buscemi mash up or a seemingly obsessed Nicolas Cage fan
who has put him in everything from the "Matrix" or Julie Andrews ...
(BEGIN VIDEO CLIP)
JULIE ANDREWS, BRITISH ACTRESS: "The hills are alive ..."
(END VIDEO CLIP)
MARQUEZ (voice over): From "The Sound of Music."
(END VIDEO TAPE)
LU STOUT: That was CNN's Miguel Marquez reporting. Now, you are watching the real deal. This is "News Stream." And still to come, double check
your spelling, especially when you are getting inked in a foreign language. Ariana Grande's tattoo blunder is next.
(COMMERCIAL BREAK)
[08:40:00]
LU STOUT: Welcome back. Now, we heard earlier about the polar vortex in the U.S. and that scorching heat wave in Australia, and yet, U.S. President
Donald Trump is giving global warming the cold shoulder while taking heat about a tweet. Here's CNN's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CORRESPONDENT, CNN (voice over): How cold is it? Cold enough that rail crews are using fires to warm the tracks in Chicago, cold enough
that reporters are doing the toss steaming hot water in the air trick.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Almost turns to dust.
(END VIDEO CLIP)
MOOS (voice over): Cold enough to inspire another typo prone presidential tweet.
(BEGIN VIDEO CLIP)
JIMMY KIMMEL, LATE NIGHT TALK SHOW HOST: "What the hell is going on with global waming?
STEPHEN COLBERT, LATE NIGHT TALK SHOW HOST: "Please come back fast. We need you."
(END VIDEO CLIP)
MOOS (voice over): With the President once again, questioning global warming, it's safe to forecast a 10% chance of shade.
(BEGIN VIDEO CLIP)
UNIDENTIFIED CHILDREN: Hi, Mr. President.
(END VIDEO CLIP)
MOOS (voice over): Kimmel had two kids school the President in science.
(BEGIN VIDEO CLIP)
UNIDENTIFIED BOY: Weather is what happens today, climate is what happens over the long run.
(END VIDEO CLIP)
MOOS (voice over): Old cartoons recirculated. Trump is cold, therefore, global warming is a hoax. New cartoons popped up. "Are you crazy or just
plain stupid?" "Yes." Wisconsin Democratic Congressman, Mark Pocan, tweeted, this was something only a moron wouldn't understand.
MOOS (on camera): Even one of his own government agencies took a swipe at the President for his latest blast of hot air about the cold.
MOOS (voice over): The National Oceanic and Atmospheric Administration tweeted a simplistic teakettle graphic to demonstrate winter storms don't
prove that global warming isn't happening, but it was a typo that had critics gleefully proclaiming "global whaming," as of George Michael had
invented it.
Is President Trump fooling with us? Pity this reporter after spending 10 minutes outside.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: These are my pants that I just had damp this morning.
(END VIDEO CLIP)
MOOS (voice over): He discovered global waming in his pants. Jeanne Moss, CNN, New York.
(END VIDEO TAPE)
LU STOUT: Okay, and are you thinking - are you considering about getting a tattoo in a foreign language? Well, you might want to think again. The
American pop star Ariana Grande got a new tattoo to honor her latest single called "Seven Rings," but the attempt to ink her - oh, it backfired. You
see this Japanese Kanji character, we'll bring it up for you, this one right here, that means seven. And this one here, that means hoops or
circles, but when you put the two characters together, the word actually means "small charcoal grill."
Now, Grande later fixed the typo on her palm by adding another character, and if you read it this way, sort of up down then it means, yes, seven
rings. A marked improvement.
And that is "News Stream." I am Kristie Lu Stout, but don't go anywhere, "World Sport" with Amanda Davies is next.
(SPORTS)
[09:00:00]
