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Connect the World

John Terry Acquitted Of Racial Abuse Charges; Scottish Football Giants Rangers FC Reorganized As Third Tier Club; JP Morgan Stock Ends Week Up 6 percent

Aired July 13, 2012 - 16:00   ET


MAX FOSTER, HOST: Tonight on Connect the World, football judgment day: former England captain John Terry is found not guilty of racism.

ANNOUNCER: Live from CNN London, this is Connect the World.

FOSTER: Cleared of racially abuse of another player, but did John Terry's trial tarnish football even further. Tonight, we'll put that to a former star who is trying to stamp out racism.

Also tonight, overwhelmed with grief: families mourn their loved ones as a reported massacre in Syria fuels anger against the international community.

And one of the world's most famous photographers captures the real story of London's east end as it gets ready to stage the Olympic Games.

In a packed court room, one of the world's most famous footballers heard his fate today: not guilty. John Terry, the captain of Chelsea Football Club has been cleared of racial abuse towards another football player. It comes at the end of a week long trial which has seen some of football's biggest stars give evidence.

Matthew Chance was there as the verdict was announced.


MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: Cheers from supporters, John Terry left court not guilty of the racial abuse charges threatening to damage his career. There was no comment from the former England captain and Chelsea skipper, only a brief statement from his legal team. "He did not racially abuse Anton Ferdinand," it read, "and the court has accepted this."

It was this exchange on the pitch last year that brought Terry and the entire sport of soccer under the spotlight. TV cameras caught Terry mouthing the word black to fellow player Anton Ferdinand along with strong sexual swear words. Terry never denied saying the words, but said he merely repeated them sarcastically after Ferdinand accused him of a racial slur. He gave his account in an interview recorded shortly after the incident took place.

JOHN TERRY, CHELSEA MIDFIELDER: Yeah, I just saw him calling me a black (EXPLECTIVE DELETED)...


TERRY: You know, understand that I was quite take aback by that, because as I've said I've not been ever accused of anything like that. And, you know, I didn't take it lightly at all.

UNIDENTIFIED FEMALE: Can you remember exactly what you said back to him?

TERRY: I think it was something along the lines of, "you black (EXPLECTIVE DELETED), you're (EXPLECTIVE DELETED)...

CHANCE: In its not guilty verdict, the court found that although the prosecution built a strong case, it seemed likely Terry's belief that he was wrongly accused had strengthened over time, much to the relief of his fans outside.

Here he is now (inaudible). Here he is, an innocent man is John Terry leaving this court his reputation intact.

But many feel the strongly abusive language described in court is part and parcel of the game has cast a shadow over the sportsmanship of its top players.

LORD OUSELEY, CHAIRMAN, KICK IT OUT: It seems that some men playing football and are highly paid have got a problem with conducting themselves in a satisfactory manner.

CHANCE: Not racism, but an ugly side of what is meant to be the beautiful game.

Matthew Chance, CNN, London.


FOSTER: I'm joined in the studio by Matthew and Paul Mortimer, a former football player for Charlton Athletic and a member of Show Racism the Red Card.

Matthew, you've been following this all week. Is it over now or is there some other legacy from this?

CHANCE: Well, it's certainly over the John Terry. He must be very relieved that he can resume his career back as the Chelsea captain. Of course he was already stripped of the captaincy from England as well. And that maybe some kind of a sense in which they may reconsider that situation. Certainly the FA are conducting their own investigation into this. They're going to make some, you know, draw some conclusions from it as well.

But, you know, even though it's over for him, it certainly casts this shadow over the sort of sportsmanship, as I was saying in that report the sportsmanship of the players at the highest level in this game, the sort of in a sordid, awful language that was described in the court is something I think was quite shocking.

FOSTER: Paul, we've heard a lot about the ugly side of football and disrespectful refs and things like that over the years. And it seems as though this case brought a lot of that to light. What do you think this case really did?

PAUL MORTIMER, SHOW RACISM THE RED CARD: It hasn't shown football in a good light as it really. There's a lot of this that's called industry language, it is, it happened. I'm an ex-player. I experienced a lot of it, took part in it, although I didn't use that much bad language, but it was part and parcel of the game.

And weirdly enough in amongst all that, there is an etiquette, there is a line that you don't cross. And this sort of crossed the line a little bit, because the words that were used are unacceptable in society in general. And they -- you know, footballers across all levels, kids will look at that. In fact, I -- in my work as an educator I go into schools and talk about racism and it's a hot topic amongst the years seven and eight year old kids. They talk about this. And they ask me questions about what's happening.

So they're up to the current events. And it's up to us to make sure they have a clear understanding of what it'll mean.

FOSTER: That role-model factor is a big one here, isn't it, particularly when you're talking about football as a big level sport.

Let's hear some kids that we spoke to about the role models of football.



UNIDENTIFIED MALE: My favorite player is (inaudible).



UNIDENTIFIED MALE: (inaudible), because he gets lots of goals.

UNIDENTIFIED MALE: Christiano Ronaldo.

UNIDENTIFIED FEMALE: Mostly I like Rooney. I'm trying to do one of his moves, the bicycle kick.


FOSTER: They've all got their role models haven't they? So what do you think young kids will have coming out of this case, because they would have seen it in the headlines, they would have seen footballers talking in this sort of language. What sort of impact on young kids will this have?

MORTIMER: It doesn't have a very good impact. It doesn't show football and football players in the light that you want them to be shown. Like we've spoken, the FA will investigate it, because you know their sort of rules and regulations are slightly different than the courts.

What they will be asking is is this kind of language, is it acceptable on a football pitch? Football players are role models and should conduct themselves in a certain way. So I expect the investigation to show something like that.

And hopefully, hopefully we can then go on to educate kids, because it's where we go from here like you said. Kids have to realize that this is unacceptable and not to copy in the playground which is what, you know, what happens a lot.

FOSTER: We saw during the trial, didn't we, that all this sort of debate around the context of these racist comments, as the prosecution are calling them. What did we learn about what is racist and what isn't racist when people are making these extreme comments?

CHANCE: Well, it (inaudible) the slur that was alleged that was -- the words that were used stepped over a certain line. But I think it's also clear from the conversations that were described in the court that the line of, you know, decency was perhaps stepped over a lot earlier than any racist alleged comment was made.

I mean, this whole idea in this very professional workplace, the professional football field, that you can abuse people in this way, that you can -- you know, kind of use those words that were kind of identified in court really -- in a formal environment you don't hear those words very much. You certainly don't hear it in 21st Century workplaces that often.

I think there's certainly a sense, and I saw the people who were watching this, that this workplace, the football workplace which is viewed by millions of people, should now start to change at least, if not changed completely and dramatically.

FOSTER: And apart from the kids we also spoke to an adult about what they thought about this after the verdict.


UNIDENTIFIED MALE: I don't know the agenda was, but it certainly wasn't about racism in football, because I don't think, you know, it's that deep in football. It's not deep in our country. I just think it was just a one off incident and somebody got on the back of it and went let's make a name for ourselves. It's a good decision, but silly case. Still a silly case.

UNIDENTIFIED MALE: What happens on the field should really stay on the field, I think. I think they (inaudible) actually should just take it as it comes and stop being such big babies and just sort it out on the field instead of taking it to managers and stuff, you know, and overreacting.

UNIDENTIFIED MALE: There's a sort of community based side of it and how it affected young children seeing their idol acting this way. Yeah, I think it's going to have big impact on young kids.

UNIDENTIFIED FEMALE: As far as football goes I think we're so used to things kind of being swept under the rug and, you know, a lot of things are forgiven. And if you look at the behavior of footballers and how atrocious it is in so many instances and people just move on, because if you're a footballer it's OK, it's not a big deal.

So I don't think it's going to be that damaging. I think it will probably be a week or two and then people will be over it. And it will be forgotten.


FOSTER: If nothing else, Paul, I guess people are talking about racism in football. You're a part of this campaign backing that, but also raising awareness about it. Is there anything positive that has come out of this, or is the campaign been put back?

MORTIMER: I think it's -- things like this really do us a favor, because they give us the chance to get out there a definition of what racism is, of why it happens, of what it is unacceptable and of the punishments that can be there if you are a racist, if you behave in that way, because it is a pattern of behavior, it's the way people treat each other. And it's something that people need to understand and need to recognize is unacceptable.

So every single time something like this happens, it gives us a chance to explain, to educate, to make sure people understand. And also to push, to nudge people like the FA into doing things, into seeing -- you know, making sure that these things don't happen.

FOSTER: It is a strong message to a lot of very powerful players, isn't it Matthew?

CHANCE: I said at the beginning of this, I mean I think one lesson that will be drawn from this -- maybe this isn't the first case of its kind, is that at least here in Britain that that kind of suggestion of racial abuse that was made here won't be tolerated and may well be prosecuted if it's reported, not necessarily by the victim, but by any member of the public. It wasn't Anton Ferdinand that reported this alleged abuse, it was a member of the public that did it. And I think that's a very strong message.

Players are going to think twice before they make these kind of remarks in the future.

FOSTER: Matthew, Paul, thank you very much indeed.

Our top story tonight, England football player John Terry has been cleared of racial abuse. At the end of a four day trial, the Chelsea captain was found not guilty of racially insulting another player in a heated match last year. We get reaction from the footballing world with our sports team later in the show for you as well.

Much more to come here on CNN Connect the World. Outrage builds on the streets of Syria. And this time it's not exclusively at the regime.

JP Morgan reveals a massive trading loss, as it grows. So why is its stock on the up? We'll bring you the latest from Wall Street.

And through a famous lens, a story of London's east end before it became an Olympic stage. All that and much more when Connect the World continues.


FOSTER: You're watching CNN and this is Connect the World with me, Max Foster, welcome back to you.

Now after 16 months of bloodshed, peace plans and the international summit, Syrian protesters are saying enough. Thousands took to the streets today calling for special envoy Kofi Annan to go. It comes one day after another reported massacre, this one in the northwestern village of Tremseh. I must warn you, this next video is very graphic. Opposition activists say up to 287 people are slaughtered throughout the country on Thursday. CNN can't confirm the authenticity of this video, but the UN has confirmed the assault.


GENERAL ROBERT MOOD, HEAD OF UN OBSERVER MISSION TO SYRIA: (inaudible) presence in the Hama Province. We can verify continuous fighting yesterday in the area of Tremseh. This involved mechanized units, indirect fire, as well as helicopters.


FOSTER: Well, the government is once again blaming armed terrorists. Say with us. We'll speak live to an opposition activists in around 20 minutes.

Here's a look at some other stories connecting our world tonight. Stock in U.S. banking giants JP Morgan closed out the week on a high note, up 6 percent, trading just over $36 a share. The company reported a steep trading loss of $5.8 billion, that's more than twice the amount it originally estimated as a result of risky trades in its chief investing office.

Despite that, the banks higher than expected earnings buoyed the stock. Felicia Taylor is in New York and joins us now.

To many people, Felicia, bizarre reaction, but a reaction nevertheless.

FELICIA TAYLOR, CNN CORRESPONDENT: Well, absolutely. And actually, you know that loss of $5.8 billion was almost triple the original number which was more like $2 billion that we've heard. We could see those losses actually accelerate between now and the end of year, that's because there's still exposure to that derivatives type trade that initiated the loss to begin with.

They've eliminated, or wound down about 70 percent of it. There's still about 30 percent of exposure out there. There is the potential for them to make a gain on this trade. Expectations are of course, though, that it will result in further losses, maybe over a billion dollars worth.

So at least one analyst out there that I've spoke to earlier today had this today that is concerning to him.


THOMAS RUSSO, ANALYST, GARDNER RUSSO & GARDNER: The one area that always remains an issue is derivatives. I mean, there was a question that asked what about those $86 billion worth of derivatives on the asset side and $74 billion on the liabilities on the derivatives side.

Now, exit imponderable. And they still have that exposure. So that's ultimately the hardest part of the business to get your arms around.


TAYLOR: But on the other side, you know, the good part of what JP Morgan Chase does is its commercial lending business is up 24 percent, granted MNA is slowing down, but it's slowing down for the entire banking industry. But they did have, you know, relatively OK real estate lending. So there's plenty of other areas of the business that are still very profitable.

They did make a profit in the second quarter, $5 billion. That was 8 percent less than the period before, but nevertheless it's a $5 billion profit for a bank that's going through this kind of problem. Jamie Dimon on the conference call was certainly apologetic and forthright about the fact that this has brought the company, you know, to its knees so to speak. Those weren't exactly his words, but nevertheless it has shaken its core is what he said and reminded them that they needed to offset these derivatives. They shut down that arm of the business, that they will no longer be taking part in these trades, and certainly four people that we know of so far have been -- have resigned from their positions. They will not be receiving any kind of a severance. They won't be receiving any kind of compensation possibly for this year. And certainly they could claw back up to two years' worth of compensation for those individuals -- Max.

FOSTER: And if we look at the market reaction, Felicia, the damage control does seem to have worked.

TAYLOR: Absolutely right. I mean, there's no question about it. I mean, while he was, Jamie Dimon, apologetic to a certain aspect, he was also very defiant that this company was going to be stronger after this. They were going to get back to their core businesses and do what they do best. And at least one shareholder that I spoke to, a well known shareholder, was definitely a buyer and bullish on the stock.


KEN LANGONE, CEO, INVERNED ASSOCIATES: I've never good about owning a stock, I feel great about owning JP Morgan stock. And that's the only reason I came. It's an incredible company, extremely well run, with the highest ethics and integrity. How much better can it be?


TAYLOR: Jamie Dimon said this was a one off event. I mean, it certainly has taken months to work through it, but this was a one time event for the company and their not going to be taking part in these risky derivatives trades in the future -- Max.

FOSTER: Felicia, thank you very much indeed.

Now China reported a 7.6 economic growth rate -- 7.6 percent economic growth rate for the second quarter marking its slowest rate since the beginning of the global downturn in 2009. That rate seems high when compared to U.S. growth which sits at just over 2 percent, but on average China has enjoyed near 10 percent growth rates for several decades. It's another indicator of global slowdown off the back of weak job numbers in the U.S. and ongoing debt crisis here in Europe.

Russian president Vladimir Putin has voiced approval for a controversial bill passed by the lower house of parliament on Friday. It requires any non-government organization that receives funding from abroad to register as a foreign agent. Failure to comply could result, would result in fines, or jail time. Opponents say that Mr. Putin will use the law to silence government critics. The Douma also passed a bill making libel and slander a criminal offense.

Madagascar's lemurs are headed for extinction due to widespread deforestation and illegal hunting. Conservationists say they're now the most endangered primates on the planet. Over 90 percent of lemur species are threatened, 23 species are considered critically endangered, meaning their numbers have dropped by at least 80 percent.

Now we're going to take you to a short break, but when we come back, what's next for John Terry now that's he's been acquitted of racism charges. World Sport's Patrick Snell weighs in on that for us. Stay with us.


FOSTER: Well, the football world has been reacting for former English captain John Terry's acquittal on racism charges. Patrick Snell has more on that for us from CNN Center. And he certainly had the full backing of his club so he can get back to the sport.

PATRICK SNELL, CNN SPORTS CORRESPONDENT: Absolutely, Max. And this is what Chelsea have been all about. And John Terry, relief for him on Friday, a not guilty verdict. And now it's all about trying to focus and get back down to the issue of preseason training. But this had been a five day trial taking place at a magistrate's court in the center of London. We heard from witnesses like Jose Mourinho, the now Real Madrid coach, his former club boss at Chelsea with his testimony. Ashley Cole, as well, a Chelsea teammate.

But it concluded, Max, with that not guilty verdict. And reaction has, you're quite right, been pouring in from the football world as Terry leaves court on Friday for the final time he personally did not say anything, but his employers Chelsea Football Club did a little earlier this Friday. They didn't give us too much, but this is what the club did say. An official Chelsea FC statement on their web site right now. I just checked it.

The club saying, "we are pleased that John can now focus on football and his preseason preparations with the team." And that's good news for him, because I think that's what he best wants to be best known for at least is getting down and actually playing the games.

FOSTER: And in terms of his reputation, is that intact? Because he's still seen as a good player. It's all of this trial business seen as a separate thing?

SNELL: Legally it's still very much intact, of course, but the reality, the real crunch point if you like, Max, is what's going to happen when these two clubs, Chelsea and Queens Park Rangers, meet again. Anton Ferdinand is still a QPR player. Rio Ferdinand is Anton's brother is still very much a Manchester United player. And Rio Ferdinand of course was not part of the same England squad as Terry, the one that went recently to Poland and the Ukraine.

So I think football wise, then certainly we've not heard the last of this. There's still going to be the ill judged chanting from the terraces if you like. That's not going to go away in the world of football.

But for John Terry for now it's all about preseason training. The U.S. beckons for the Cheseal team. Will he be part of the party that comes to the United States to play games in an environment that traditionally they are more comfortable in -- Max?

FOSTER: And Patrick, north of the English border in Scotland, a different football story, but also making huge headlines.

SNELL: Yeah, this is shocking news if you're a fan of Rangers, the most successful club in Scotland, the team from Ibrox. Of course it's a new club now, very quickly in a nutshell, basically financial hardships to say the least going into administration. They've got you know new owners but what happened on Friday is that, yes, they did get readmitted into these Scottish football league, but they have to start again as it were as a new club in the third tier, the third league of Scotland's footballing hierarchy if you'd like. This is reaction now from a very busy day in Scotland.


DAVID LONGMUIR, SCOTTISH FOOTBALL LEAGUE CHIEF EXECUTIVE: I'm comfortable today that the Scottish football league made a very, very decisive decision, which was based on sporting fairness and I think the Scottish football league were ideally placed to make that decision. I've always said that we have applied a tried and trusted process from day one. I made that clear at the outset of the process. And I think it's now for others to work with us to take the game forward in a way that we would -- they would wish.


SNELL: Well, Rangers are 54 times Scottish champions, Max, but it's going to be awhile before they'll even get the chance to add to that tally. Back to you.

FOSTER: OK, Patrick, thank you very much indeed for that.

Now coming up on Connect the World we dive into the legacy of one of the world's most famous green pioneers, the legendary ocean explorer Jacques Cousteau.


FOSTER: A very warm welcome to our viewers across Europe and around the world. I'm Max Foster, and these are the latest world headlines from CNN.

The England football player John Terry has been cleared of racial abuse. At the end of a four-day trial, the Chelsea captain was found not guilty of racially abusing another player in a heated match last year.

UN and Arab League Special Envoy Kofi Annan says he's "shocked and appalled" by a reported massacre in Syria. Thousands of protesters want action, not words, and they're calling for Annan to go. Activists say up to 220 people were slaughtered by Syrian forces in the village of Tremseh yesterday.

US banking giants JPMorgan reported a $5.8 billion trading loss after a trading blunder in its Chief Investment Office. When the mistake was first revealed back in May, CEO Jamie Dimon estimated it would cost around $2 billion, but he said -- but he did say that that number might move higher.

London police say the son of one of the world's wealthiest men has been arrested in connection with his wife's death. Forty-nine-year-old Hans Kristian Rausing was initially arrested on Monday on drug charges, and his wife's body was discovered in their home. It's still not clear how Eva Rausing died.

If the death toll in Tremseh is confirmed, it'll be the single bloodiest day in the Syrian conflict. Now, a day later, the killing continues unabated. A large explosion took part of central Damascus, and opposition groups say at least 80 people were killed throughout the country today.

Meanwhile, UN observers say Syrian helicopters are targeting populated areas around Tremseh in Hama province. Now, Tremseh is near the sites of two other reported massacres. At least 55 people were killed in June -- on June the 6th in Qubeir, and more than 100 people in May in the city of Homs.

So, we've heard the outrage and the ultimatums from the world's top diplomats. What now? Where do we go from here? Joining me now from Washington is George Netto, a member of the Syrian National Council, and Senior UN Correspondent Richard Roth is in our New York Bureau.

First, though, to George, has the international community finally reached its breaking point, do you think? Will it be forced to act this time?

GEORGE NETTO, SYRIAN NATIONAL COUNCIL: That's what every time we say, after every massacre. Unfortunately, every massacre is more bloody than the one before, and it's hard to believe that the one yesterday, potentially the numbers could climb up to 220. That's totally sad, and in a conflict that has been very sad every day.

For Special Envoy Kofi Annan to say he's shocked to the core, this is a really big massacre yesterday, and we're very sad. But every time we think that's going to change the mind of certain members of the Security Council, but unfortunately, we're always disappointed. So, we hope this time, it will.

FOSTER: Richard, Certainly Mr. Annan is coming up with his strongest words yet, really, isn't he? About the Syrian regime. But where are we with those discussions at the UN?

RICHARD ROTH, CNN SENIOR UN CORRESPONDENT: All right, right now, the five permanent members of the UN Security Council, those with veto power, the big boys, are meeting near the UN.

A vote is possible as early as Wednesday, because the Security Council must renew, if it wants to, the presence of those 300 unarmed observers, a mission that's really collapsed in Syria. They're not really doing anything as the violence continue. They weren't able to really stop it, not many thought they would be able to.

Kofi Annan's rhetoric and the words, Ban Ki-moon, the current Secretary-General, his words, everything's been ramped up. But now, people seem to be pointing fingers even more. Some Western diplomats are saying the problem isn't really the diplomats, it's Russia for blocking any potential resolution or action.

The Security Council is going to be discussing right up until the deadline of Friday for the renewal of this mission, but the bigger picture, the violence here, no one seems to be able to stop it.

Ban Ki-moon in his letter, now -- he's got his own -- he said that the failure to implement these resolutions and the Council failure to unite is going to give the Syrians license to commit more massacres. Max?

FOSTER: Is there some sort of Western strategy, Richard, with Russia to try to get it to move on this one?

ROTH: I don't know. They really publicly from Secretary of State Clinton to other European foreign secretaries have mounted a fierce rhetorical war on Moscow, but right now, the plan is try to get the Security Council to go for economic sanctions, the threat of it, with a resolution that would imply this and give the Syrians about ten days to comply.

Russia and China in the past, and currently, they're saying "that's our red line, we're not going near there." But as the massacres mount, perhaps they'll be able to get some type of compromise, but it doesn't appear likely at the moment. It's always too soon to tell on some of these things.

FOSTER: George, it's no wonder, really, that many Syrians look at the UN and think it's all been a bit pointless, this whole exercise. Kofi Annan's mission just has not worked, as he admits.

NETTO: As he admits and as the reality is. It's been a totally failure. In fact, the killing escalated since we started with the mission.

But the key is going to be, we will be requesting the United Nations Security Council to step up to the plate. Somebody needs -- the international community needs to address its moral duty in protecting civilians in Syria.

And in one day for 200 -- over 280 people dying, I think that's hopefully a threshold that will awaken a lot of consciences, including the Russian conscience, which has been really resilient. We're extremely disappointed.

We see historic ties between the two people and we still are amazed that the Russians are persisting on supporting the wrong side in this and supporting the killer with their own weapons. There is a lot of documentation, now, of weapons that are Russian-made that are being used directly in killing civilians.

FOSTER: In terms of the resistance to the regime, what sort of power have they got right now? As you say, if they are receiving weapons still, the regime, what sort of effort is going into arming the other side?

NETTO: The other side meaning us? Meaning the Syrian Free Army?

FOSTER: Well, the non-regime side.

NETTO: Yes. So, clearly, there is some shift of momentum, and it's really due to the gravity of the Syrian Free Army. But by no means we're getting any significant support in terms of weapons for the Free Syrian Army, but on the other hand, the regime does have a lot of weapons, that that's not going to be the issue.

But I think the defections, I think the pressure and the continuous pressure -- and we're hoping some kind of resolution under Chapter 7 that can put some teeth to Kofi Annan's proposal. Even Mr. Annan himself has requested that the threat of consequences needs to be added to that mission, otherwise it's not going to work. So, we're hoping something's going to change next week.

FOSTER: Richard, if Russia refuses to sign up to a resolution, is there an alternative strategy that the Western powers can use and make something happen next week?

ROTH: Well, for weeks, we've heard, there's no plan B. Kofi Annan will be in Moscow on Monday, that's his second trip in recent days. He's got to be exasperated.

But despite hints and feints as various visitors go to Moscow, they come away thinking, well, it looks like Russia may be signing onto a plan, a transitional political plan to remove Assad in Syria. And then, they see no change. Of course, they have China also with them at the Security Council.

Other nations continue to ramp up potential sanctions, but every call for any type of firm, united action at the Security Council has gone nowhere, really, in 16 months, except for agreeing to the Kofi Annan six- point plan, which barely got started.

The -- one Western diplomat said, with one call from Damascus, you can stop the heavy weapons being used. That's what has to happen.

FOSTER: OK. Richard Roth, thank you very much. Also, John -- George Netto with the Syrian National Council. Thank you both for joining us on that.

NETTO: Thank you, Max.

FOSTER: Stay with us on CONNECT THE WORLD. Next up, David Bailey shows us what London's East End was really like before its Olympic transformation.


FOSTER: Two weeks to go and the Olympic Games Open Ceremony will be underway at this very hour, in fact. Is London ready? Well, according to Seb Coe, not yet, but it will be. The local chairman told media that organizers are still putting the final touches on transport, security, and Olympic venues, thanks partly to unseasonable conditions.


SEB COE, CHAIRMAN, LOCOG: The weather has -- you know, the weather has complicated, if I'm being honest, some of the things that we've been doing. We will deal with it as we have in the past. But I don't think I'm breaching any great confidences when I tell you this has been quite a wet summer.

So, we're in -- but so all-in-all, we're in great -- we are in very good shape. But yes, plenty of work still to do, right up to the Opening Ceremony.


FOSTER: Well, at that press conference, Seb Coe also spoke about the legacy he hoped the Games would leave for London, specifically he applauded the regeneration of the city's East End, which is where the global spotlight will fall come July the 27th. But as Becky found out, the area has been a focal point for one famous Brit since the 1960s.


BECKY ANDERSON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Iconic images of East London, captured by an iconic East Ender. This is David Bailey's snapshot, taken over 50 years, of the stories neighborhood in which he was born and raised.

ANDERSON (on camera): Because this is a picture that really stands out. Nowhere but England, right?


ANDERSON: Nowhere but England and the East End.

BAILEY: They're great, aren't they? She's probably only about 19.

ANDERSON (voice-over): Through the faces and streetscapes of East London, Bailey's new exhibition tells a tale of life amid poverty, crime and the rubble of war.

ANDERSON (on camera): How old were you when you took that, and what do you remember?

BAILEY: I guess I was right about 22, 23. It was -- kind of Proustian, in a way, because that was my playground, those bomb sites. I mean, don't -- I don't feel sorry for myself. It was perfectly OK because we didn't know any different.

And from the age of about three and a half to probably two years after the war, the sound I remember most is walking on broken glass. Again, I liked it. I loved jumping on someone's broken window in a bomb site. But everywhere you went was the crunch of broken glass, and it's the soundtrack to my life.

ANDERSON: What are your enduring memories?

BAILEY: Of the East End?


BAILEY: Oh. I don't know. There was no expectations, really. I didn't have any expectations. I knew I was an artist, in a way, because all I did as a kid was draw, because I'm really badly dyslexic. People that say, oh, that's a good get out, they don't know the misery I had at school, because I used to get caned because I couldn't spell.

It wasn't -- I mean, now, people expect too much, because governments have told them they can have everything. We accepted the way things are, but had the persistence to try to move on.

ANDERSON (voice-over): What they lacked in reading skills, he made up for with a keen eye and charisma. Models, movie stars, rock legends, and crime bosses have all sought out his lens, including the infamous Kray brothers, who shared his East End stomping ground.

BAILEY: This is a gambling club that belonged to Reg and Ron.

ANDERSON (on camera): The Krays.

BAILEY: Yes, and that was -- that was firebombed ten minutes after we left. And this is another one. This was the Rio Club. And Checker (ph) - - Checker, the -- Reg used to give me as my minder, he used to, when I was down there, he used to give me someone to look after me in case I --

ANDERSON: You knew all these guys, right?

BAILEY: Yes, Checker. I helped him escape from the police. God, I'm going to get in trouble for that one.


BAILEY: I gave him 350 quid to disappear.

ANDERSON: When was that? 1965?

BAILEY: 68 or something. But he was a good guy, Checker. He was a nice guy. Kind of a gentle giant.

ANDERSON: Yes, yes.

BAILEY: Someone didn't want to be photographed, he'd grab them and say, "All right, Dave, you can take their picture."


BAILEY: "Checker, it's not quite the picture I'm after."

ANDERSON (voice-over): Today, this is the kind of picture Bailey's capturing in the East End.

BAILEY: This is good. This is -- what it's now become. This kind of colorful, bit of mystery, because you can't see their faces. And walking away is two Essex girls, with the tight skirt and the -- so, this is kind of, for me, the slow change of things.

ANDERSON: More multicultural the district may be, but it's remained a neglected part of London until recently. As the hub for the 2012 Olympics, it's been undergoing a major transformation.

ANDERSON (on camera): What do you think of the regeneration of the area.

BAILEY: At least it was a positive mood. People say, oh, will it be any -- there's always the pessimists, but let's just change things, and change is good, and change is the way things move on. If you don't have change, you don't move on, really.

ANDERSON (voice-over): Becky Anderson, CNN, London.


FOSTER: And you are watching CONNECT THE WORLD. When we come back, leave your tennis racquets, baseball bats, and hockey sticks at home, but don't forget your broomstick. More on the latest sport that's hitting the ground running.


FOSTER: All this week on CONNECT THE WORLD, we're shining a light on Green Pioneers, inspired individuals enhancing our planet. We met the man responsible for making the upcoming Olympics the greenest Games the world has ever seen. And the young Californian saving the planet one teenager at a time.

Tonight's Green Pioneer is the legendary Jacques Cousteau. He's the French explorer and most famous for his underwater films and inventing modern-day scuba gear. But as Jim Bittermann tells us, Captain Cousteau was also a compelling activist who drew the public's attention to the disastrous consequences of over-exploiting the Earth's natural resources.


JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): This is the Jacques Cousteau most people would recognize, the man in the wet suit, air tanks strapped to his back, heading overboard.

It was a routine he repeated over and over again, hundreds, perhaps thousands of times over his long and adventure-filled life. But less-known was that Cousteau was an inventive genius.

SUSAN SCHIEFELBEIN, COUSTEAU COLLABORATOR: I remember most that he was enchanted with ideas, that he was delighted, he was almost like a little child. But he was the most creative and imaginative person I've ever met.

BITTERMANN: Susan Schiefelbein was for more than two decades a close collaborator with Cousteau and helped him write his autobiography.

SCHIEFELBEIN: A scientist who would be very involved and have a passion in his work could go to Cousteau and say A, B, and Cousteau could skip to Q and understand immediately the intervening steps.

BITTERMANN: The Frenchman practically invented scuba diving when he developed the regulator valve that made possible breathing air from tanks underwater.

Apart from the scuba equipment, which he called an Aqualung, Cousteau was perhaps best known for his underwater photography. His stunning documentaries produced for television and cinema had their origins in the adventurer's childhood curiosity.

SCHIEFELBEIN: He wanted a navy and aviation career and went to the naval academy at Brest and did extremely well. And then, was in a car accident and was too terribly hurt ever to be a pilot. And so, he was strengthening himself by swimming, and he became a naval explorer kind of by default.

BITTERMANN: If he came to diving by accident, it was a fortunate accident, indeed, because it led Cousteau to a lifelong search to find out what lies beneath the surface of the world's oceans.

BITTERMANN (on camera): Cousteau's endless curiosity led him to explore ever more remote, ever deeper waters. He needed something which could withstand extreme water pressure, yet maneuver silently, like a diver can, without disturbing the aquatic life around it.

Submarines wouldn't do because of the turbulence and danger caused by the propellers. Nothing like he had in mind, existed, so Cousteau had to invent it.

SCHIEFELBEIN: He pulled out a saucer from under a coffee cup and then put another one on top and he said, "Something like this."

BITTERMANN (voice-over): Cousteau very often insisted on testing his new devices and techniques himself, frequently risking his own life in the process.

SCHIEFELBEIN: Here was a man who took these devices down enormous depths, not having any idea what would happen. And so, it was really trial and error in a very dangerous sense. And he always survived.

BITTERMANN: But for Cousteau, survival of the environment is what was really important. In the 1960s, he helped stop underwater dumping of nuclear waste in the Mediterranean Sea and helped restrict commercial whaling in the 1980s. He wanted to protect the world he so enjoyed exploring.

SCHIEFELBEIN: If somebody said, "What do you expect to see at the bottom of the Romanche Trench, which they were the first to photograph, he would say, "If I knew what I expected to see, why would I go? Why would I even look?" And so, it was aller voir.

BITTERMANN: Aller voir, "go see." Advice Cousteau himself followed until the end.

Jim Bittermann, CNN, Paris.


FOSTER: This month, CNN's taking a look at people around the world who have put their passion into action to change the planet. These people are Green Pioneers, and they'll be profiled on a CNN Going Green special Saturday, 1:00 PM GMT.

Now, in tonight's Parting Shots: a quaffle, a golden Snitch, and a Nimbus 2000. If any of these ring a bell, it's likely you're a Harry Potter fan. And meet the young athletes who want to turn the magical game of Quidditch into Olympic reality.



COMMENTATOR: US with the quaffle, moving up.

Dodged the keeper, that's a goal!

ALEX BENEPE, INTERNATIONAL QUIDDITCH ASSOCIATION: Quidditch was a fictitious sport in the Harry Potter books, originally is played on brooms flying high through the air.

ANGUS BARRY, TEAM UK CHASER: I love things like this. That's what makes it different from other sports.

AUGUST LUHRS, TEAM USA CHASER: I feel more comfortable running with a broom, now, then I do without one.

BENEPE: It involved a lot of magic, so we had to adapt it to reality, and the real version is often called Muggle Quidditch, because in the Harry Potter books, a Muggle is a non-magical person.

COMMENTATOR: And puts it in! Score now 40-20.

BENEPE: As much as this has become a serious sport, it still did come from Harry Potter, and the Olympics are now in England, and Harry Potter is from England. This is a good time and a good place to show the world this new sport.

COMMENTATOR: Nice bludger shot!

LUHRS: I think a lot of people discount Quidditch because they say it's just a bunch of nerds flying around on broomsticks, but it's really an extremely athletic sport.

COMMENTATOR: Great pass off! And that's another goal.

LUHRS: If the Olympics are striving to create an atmosphere of athletes and competition, there's no better sport than Quidditch.

BARRY: It's a quite fast-paced game, this all, because you've got four balls in play and a Snitch.

BENEPE: The last player on each team is the Seeker. They have to chase the Snitch. In the books, it's a golden flying ball with wings. In real life, we've turned it into a very swift runner who has a Velcro tail attached to the back of their shorts. The Seeker has to chase him down and pull it out --

COMMENTATOR: And that's a grab!

BENEPE: -- to get an extra 30 points for their team and end the game.

COMMENTATOR: UK team pulled the Snitch.

ELLIE DARCEY-ALDEN, ACTRESS, "HARRY POTTER AND THE DEATHLY HALLOWS PART 2": I think it's brilliant. It's really funny to watch. I didn't realize it was so rough and tough, and it's great to just have a go.

TIAM PARINEGAD, QUIDDITCH FAN: I think it's a real sport. I'm going to join when I go to the US, so yes.

BENEPE: You do not have to be a Harry Potter fan to enjoy playing Quidditch. And in fact, a lot of our players have never even read the books.

ALEX WALKER, QUIDDITCH FAN: I'm actually not very much of a Harry Potter fan, but I just like it.


FOSTER: Imagine what JK Rowling thinks of that as it grew out of an idea.

I'm Max Foster, that was CONNECT THE WORLD. Thank you very much for watching. The world headlines are up next after this short break.