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NEWS STREAM

UK Phone-Hacking Investigation Widens to Include Scotland Yard Detective; Former News International Chief Arrested and Questioned By Police; Monsoon Rains Cause Flooding in India; Typhoon Headed Towards Japan; Japan Wins First Ever Women's World Cup; Twitter Sets Record During World Cup; British Open First Major Win for 42-Year-Old Darren Clarke; Pacific Island Nation Shark Sanctuary; Murdochs and Rebekah Brooks All To Appear Before House of Commons; Top British Police Officer Resigns

Aired July 18, 2011 - 08:00:00   ET

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


KRISTIE LU STOUT, CNN ANCHOR: Welcome to NEWS STREAM, where news and technology meet. I'm Kristie Lu Stout in Hong Kong.

A question by police. Now former News International chief Rebekah Brooks will face questions from British lawmakers on Tuesday.

A rare day to celebrate in Japan as the women's football team wins its first ever World Cup.

And as Harry Potter goes out with a bang, an awful lot of ala kazam. The final film breaks box office records.

Now, the UK's phone-hacking scandal is continuing to spread from journalists to media barons to politics, and now to the upper echelons of the police force.

Just a few hours ago, it emerged that one of Scotland Yard's most senior detectives, John Yates, is to be investigated over his links to a former deputy editor at the "News of the World," Neil Wallis.

Monita Rajpal spoke to former deputy assistant commissioner at the London Metropolitan Police, Brian Paddick, about Yates.

(BEGIN VIDEO CLIP)

BRIAN PADDICK, FORMER DEPUTY ASSISTANT COMMISSIONER, LONDON METROPOLITAN POLICE: Well, John Yates is in trouble because the commissioner in his resignation speech said that one of the reasons was he didn't know the extent of the phone hacking. It was John Yates's job to find out how widespread it was, and he failed to do that, and he failed to tell the commissioner.

MONITA RAJPAL, CNN CORRESPONDENT: Do you think that it would be time now for John Yates to hand in his resignation, then? Or do you think other moves will be made against him?

PADDICK: Well, we've already seen this morning the mayor of London, Boris Johnson, has asked the Metropolitan Police Authority to investigate John Yates and his links to "News International." And I can't really see how his position is tenable now that his boss has resigned.

(END VIDEOTAPE)

STOUT: As you heard, this all comes the day after Metropolitan Police commissioner, Sir Paul Stephenson, announced his resignation. And again, it was linked to Wallis, who was himself arrested last week. It emerged he had been hired as a communications consultant for the police after leaving the paper.

And meanwhile, former tabloid editor and chief executive, Rebekah Brooks, was arrested by police on Sunday. She was questioned and later released on bail.

Rebekah Brooks was once the darling of the Murdoch empire. From secretary to editor to the very top of News International, her rise through the ranks was meteoric. Yet now she's at the heart of one of the biggest scandals to grip the UK in decades and out on bail after being arrested on Sunday.

So, what went so wrong? Atika Shubert explains.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): In the cozy world of British politics and media, Rebekah Brooks was at its very center. She wined and dined the rich and powerful on behalf of her boss and mentor, Rupert Murdoch.

SHUBERT (on camera): From ambitious journalist to, arguably, the most powerful woman in British news media, now arrested by British police investigating allegations of phone hacking and police payments by Murdoch newspapers. Just how did Rebekah Brooks get to this point?

SHUBERT (voice-over): Brooks first came to News International as a secretary at "News of the World." She quickly developed a reputation for her tenacity as a journalist, reportedly once disguising herself as a cleaning lady to scoop a competitor.

Described as both ruthless and charming, she was soon the youngest editor of the "News of the World" and, shortly after that, the "Sun," both owned by Murdoch's News International.

She spearheaded a controversial campaign to, quote, "name and shame" alleged pedophiles, publishing their names and addresses in the paper.

As the editor of the "Sun," Brooks testified to parliament that her paper had paid police officers for information. And it was under her editorship that the "News of the World" allegedly paid a private investigator to hack into the voice mail messages of Milly Dowler, the 13-year-old girl murdered in Britain, whose investigation and court case made front page headlines.

Those allegations did not come to light until almost a decade later, after Brooks had scaled the corporate ladder to become chief executive of News International, a position she resigned last week.

Brooks has denied having any knowledge of any phone hacking by her staff.

It was Brooks who cemented a relationship with Prime Minister David Cameron, inviting him to lunches at her country home with the head of News Corporation, Rupert Murdoch's son, James.

There have been several arrests in the phone-hacking scandal so far, but Rebekah Brooks is the highest profile yet, and the one closest to Rupert Murdoch himself. Atika Shubert, CNN, London.

(END VIDEOTAPE)

STOUT: And we'll have more on the phone-hacking scandal a little bit later here on NEWS STREAM. Let's take you next to India, where unusually heavy monsoon rains are causing havoc across many parts of the country, making rivers overflow, affecting tens of thousands of people, and leading to tragedy.

Now, just look at these horrifying images that come from Sunday. This family of five, they were having an afternoon picnic on some rocks when the river around them swelled rapidly, and you can sense the desperation and their fear as they cling to each other for support.

But the waters were too strong and quickly overtook them, and only two were able to swim to safety.

Now, meanwhile, Japan is also bracing for bad weather. The country's meteorological agency says Typhoon Ma-on is expected to make landfall tomorrow. Guillermo Arduino is following it all from the International Weather Center. He joins us now.

Guillermo, some truly tragic weather events across the world.

GUILLERMO ARDUINO, CNN METEOROLOGIST: Yes, I think the Japan story, though, is going to be dramatic, of course, because of the winds, and especially because of all the sensitivity that we have surrounding the story of Japan, especially what happened March 11th with a tsunami, and then the crippled power plant.

Though they are building a roof, and the concern right now, even though they think they're going to be able to manage it, is that the rains may leak into areas where they don't want water in the power plant, that they are building a roof right now.

Well, first of all, look at what's going on. Clearly-defined center of the system, then it comes close to the southern parts of Japan. Here, Kochi is an example, Chugoku, the island. And then, because of interaction with the land, starts to fizzle out.

What you can expect in that case is winds going down, the rain persisting, and then the system continuing to move into the northeast.

Now, we look at this satellite picture to show you that we see rain showers right now, and that's a report that I see in plenty of stations in Japan, rain showers only.

Of course, as I said, with interaction with the land and many other features, the cyclone is expected to weaken. It's going to go by Tokyo, probably, if it continues with this path.

So, the worst of all is going to be taken by Chugoku. It's a typhoon, something we shouldn't under estimate but, at the same time, let's put it into perspective. Remember, Japan is very well prepared to sustain winds at that level and also the rain and the weather associated with a cyclone like this.

So, it's not an extraordinarily strong cyclone, but we're looking at it, again, in the interest of all the sensitivity surrounding Japan.

As for the monsoonal flow, we are in full swing with the monsoonal rains in India. Pakistan is seeing indications that the rains are already there. And now, it's going to take, Kristie, until September for the rains to clear completely from the subcontinent, you see?

So, we are almost at the very end of phase one, which is covering the subcontinent with rains. And then, it will start phase two, soon, that will take a long time until the rain goes away. Kristie?

STOUT: So, relentless rain, there, until September.

ARDUINO: Definitely.

STOUT: Guillermo Arduino, thank you for the forecast.

ARDUINO: Thank you.

STOUT: We'll talk later. Coming up next here on NEWS STREAM, it has been a tough year for Japan, but with their women's football team in the World Cup final, millions were backing the underdogs for success against the US.

In Afghanistan, the times are changing. General David Petraeus hands over command.

And Harry Potter is going out with a bang. We'll bring you the latest in a long line of success stories for JK Rowling and company.

(COMMERCIAL BREAK)

STOUT: Welcome back. Now, the women's World Cup trophy is heading to Japan for the very first time. This squad pulled of a nail-biting victory over the favored US team.

The Americans controlled much of the action, but could not capitalize and, by the end of extra time, the two teams were tied. It all came down to penalty kicks, and Japan dominated, three to one. You can see the excited winners rushing the field after that last shot went in.

The American goalkeeper says she felt something bigger was pulling for Japan's team. Well, that of course is a reference to the March 11th earthquake and tsunami. They devastated northern Japan and triggered a nuclear crisis.

The country is still suffering effects on its food and power supply. And throughout the tournament, Japan's national football team has been thanking friends around the world for support in the wake of the disaster.

Now, it is especially personal for two players on the squad, Karina Maruyama and Aya Sameshima. They both worked for TEPCO, the operator of the crippled Fukushima Daiichi nuclear facility.

Maruyama wrote this on her blog, that since the crisis, quote, "I did not think it was the time to play football. There was constantly a mix of emotions in my heart, and I felt torn. But because of everybody's support, I was able to use that power as my strength."

And after their victory, her teammate Sameshima tweeted this. "Thank you everybody for your enormous support. This is a gold medal we all won together."

The entire team is due back in Japan just over ten hours from now, and Paula Hancocks gives us a taste of the mood in Tokyo.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: Japan's winning team is currently in the air and they're on their way back here to Tokyo for what can only be an almighty homecoming.

HANCOCKS (voice-over): The entire nation got behind this team when they beat the United States. Everyone I've spoken to was incredibly excited, and it was an incredible atmosphere during the game.

Many people told me that this is the boost that Japan needed after the devastating earthquake, tsunami, and the ongoing nuclear and political issues that are still happening. They say that this team has given Japan inspiration.

Now, the team's spokesperson said at Frankfurt Airport that this team is not really used to this kind of attention, and they don't really know what to expect when they get back to Tokyo.

HANCOCKS (on camera): I have a fair idea of what they should expect, and I think it will be crazy. We're heading at the crack of dawn off to the airport to see them come back. I'm pretty sure we will not be the only people. I think there will be a lot of people welcoming the victorious team back here.

Now, the team captain, Homare Sawa, said at the airport, quote, "This is a dream." This is was her fifth World Cup, the first that Japan has won, and it seems as though 26 should actually be a lucky number here in Japan, now, as 25 times they've played the United States before, and this is the first time that they've actually beaten them.

Now, local media here in Japan is reporting that the team actually flew to Frankfurt economy class, so there's now speculation as to whether or not they'll be upgraded to come back here to Japan. I'm sure we'll hear about that soon.

But that really shows the difference in the quality of the sport. There's a lot of money in women's football in the United States and in Germany compared to Japan. There's no money in the sport here. I'm sure that that will change now that this team has won the World Cup.

Now, it was an incredible night, a wonderful atmosphere, a little bit sleep-deprived, a little bit tipsy in some cases. And of course, at 7:00 AM on a Monday morning when this finished, there was still champagne corks being popped. It's not often you could do that without being judged.

So, the celebration is not over. The team arrives on Tuesday morning, there'll be a press conference after that, and then who knows what lies in store for the world's number one football team? Paula Hancocks, CNN, Tokyo.

(END VIDEOTAPE)

STOUT: Twitter scored a new record during the women's World Cup final. Twitter says it saw nearly 7200 tweets per second during the game between Japan and the US, and that is a new all-time high.

Among the people tweeting was none other than US president Barack Obama. As you can see, the president watched the match with his family in the White House, and he posted a message of support on Twitter.

In fact, he said this. "To the women of our national soccer team, sorry I can't be there to see you play, but I'll be cheering you on from here. Let's go, BO." And you know that he wrote that himself because of the signature, BO. His staff continued to live tweet the game, sending a total of 13 messages.

Now meanwhile, in Sandwich, England, one of golf's near event was finally celebrating a victory at the Open. Now, this man, Northern Irishman Darren Clarke, he finished top of the pile two decades after he first entered golf's oldest tournament.

But as he told CNN, his route to the top has been far from smooth.

(BEGIN VIDEO CLIP)

DARREN CLARKE, 2011 BRITISH OPEN CHAMPION: You almost wouldn't wish it on anybody, would you? It's one of those sort of things, it's weird. It's a game of give and take, isn't it? Takes it away and it gives you it back.

I've had a tough period of late, obviously, since Heather passed away. But my boys were a priority, and they have grown up into really good kids thus far. They're only 10 and 12. And of that, I'm very, very proud. Even more proud of that than being the Open champ.

(END VIDEO CLIP)

STOUT: Now, Clarke beat American's Phil Mickelson and Justin Johnson by three shots to lift the coveted claret jug at his 21st attempt at the age of 42, and that makes him the oldest Open winner since Roberto de Vicenzo way back in 1967.

Ahead here on NEWS STREAM, they're hunted for their fins and pushed to the brink. Shark populations are under pressure in Asia, but one island nation is working to change that. We'll tell you how next.

(COMMERCIAL BREAK)

STOUT: Coming to you live from Hong Kong, you're back watching NEWS STREAM. Now, in China, Hong Kong, and Taiwan, a popular traditional dish has been drawing a lot of controversy. Shark fin soup.

An estimated 70 million sharks are caught each year, mostly for their fins. But the remote Pacific island nation of Palau is trying to change that by turning its waters into a shark sanctuary. Anna Coren has more.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN CORRESPONDENT (voice-over): In a remote corner of the Pacific, the ocean is teeming with activity. Here, nature is left alone for one species in particular.

This is the world's first shark sanctuary. It's here that this predator is protected from its worst enemy, humans.

These emerald waters are in Palau, an island nation just 500 miles east of the Philippines. Shark conservation is a top priority here thanks, in large part, to this man, conservationist and local politician Noah Idechong. To him, protecting the environment is closely linked to the way of life in Palau.

NOAH IDECHONG, ACTIVIST AND POLITICIAN: I've been involved since I was a kid because, of course, when you grow up in Palau, you're trained to think in a certain way. You respect nature, you respect the fish and the things that they use.

A very beautiful cove.

COREN: Today is a rare day off for the senator. He has spent the past 11 years in politics fighting for conservation.

IDECHONG: This is a place for baby sharks.

COREN: Sharks have consistently been at the top of his agenda.

IDECHONG: There is somebody just taking the sharks away from Palau and actually mutilating the sharks. And Palauans don't really like to see those things happen in their back yards.

COREN: The reality is gruesome. Sharks are being caught for their fins, which are highly valued as a Chinese delicacy.

Dermot Keane runs a local dive center. More than a decade ago, he started to notice that many fisherman were targeting sharks for their fins and then leaving them to die. As an avid diver, he was committed to protecting Palau's pristine environment, which includes sharks.

DERMOT KEANE, PALAU SHARK SANCTUARY FUND: It's a natural starting point for divers to be among the leaders in bringing forth this message. They're the ones that spend time with the sharks and with the other fishers.

I think part of the battle in the early days was to get the message beyond just the SCUBA divers.

COREN: And that he did. The local community rallied and, in 2003, Palau declared itself a shark sanctuary, and shark fishing was outlawed.

JOHNSON TORIBIONG, PRESIDENT OF PALAU: The world takes from the ocean between 70 to a hundred million sharks a year. Most of them are caught only for their fins, and the hunting for sharks is very barbaric and wasteful.

COREN: The survival of the sharks depends on these men. They're tasked with patrolling Palau's waters, an area as big as France. The crew's only patrol boat has not been on the water for months, as it undergoes repairs in Australia for most of this year.

Limited resources means that many offenders aren't caught.

ELLENDER NGIRAMEKETII, CHIEF, DIVISION OF MARINE LAW ENFORCEMENT: The demand in the market is quite big. And as long as demand is there, I don't think it's going to stop.

COREN: Today, local divers are helping researchers get a clearer picture of Palau's shark populations. There's little science to back up the effectiveness of the shark fishing ban, but these divers say without it, the whole ecosystem would be vulnerable.

TOYA HAREL-BORNOVSKI, MICRONESIA SHARK FOUNDATION: Oolong has a very healthy shark population, and they aggregate at the mouth of the channel, and it's very interesting to know about their whereabouts. If you know this data, you can protect them better.

COREN: These divers are working on a shark-tagging project. A new receiver is being installed in this reef to monitor the movements of dozens of tagged sharks.

Here in the waters of Palau, sharking counters are common. It underpins the country's tourism industry, which relies heavily on these close encounters.

It's delicate work, but it's this close vigilance that has helped this protect these predators. They are just one of the many people here in Palau who are committed to making this sanctuary work. Anna Coren, CNN.

(END VIDEOTAPE)

STOUT: Incredible pictures there from Palau.

Now, let's go back to our top story tonight, the phone-hacking scandal in the UK. Rebekah Brooks is due to attend a House of Commons hearing into the scandal tomorrow.

Her arrest has muddied the waters such that it remains unclear whether she will attend and, if she does, what she can say. But Rupert Murdoch and his son James have confirmed that they will be there to face what will no doubt be some tough questions from politicians.

With more on that, and a preview of Tuesday's hearing, let's cross over to Dan Rivers, who joins us now live from Westminster, and Dan, who should we expect and what should we expect to take place at tomorrow's hearing?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Kristie, the latest information I have is that all three will attend, although in two separate sessions.

So, Rupert and James Murdoch will appear first, and then followed by Rebekah Brooks, perhaps because of the legal advice she's been given, given that she was arrested and questioned for 12 hours yesterday, and then released on police bail.

We're being told by the committee that they will frame their questions very carefully so that they don't prejudice any forthcoming trial, if it comes to that, of Rebekah Brooks.

So, it looks like all three will be there, not together. First of all, James and Rupert, then Rebekah Brooks, but facing similar questions, one would imagine, although the exact framing of those questions may change. It's going to be an incredible day.

As well as that, there will also be a separate committee talking to the assistant commissioner, John Yates, who's under a lot of pressure for his position, in light of the resignation of his boss, Sir Paul Stephenson.

Sir Paul Stephenson was forced out as the top policeman of the UK, or resigned, anyway, after a series of allegations, the most damaging of which, I think, was this allegation that he had enjoyed about $20,000 worth of hospitality following an illness at a spa resort that was represented by a PR firm employing the former "News of the World" deputy editor, Neil Wallis.

It's pretty complicated stuff, but Neil Wallis also represented the police at one time. And so, there's this kind of image that is coming out of a very cozy relationship, if I can put it that way, between the police and certain members of the Murdoch press.

Now, Sir Paul Stephenson is being categorical in his denial that he's done anything wrong, but clearly admitting that the perception was bad and that he had to go. Here's what he said on resigning.

(BEGIN VIDEO CLIP)

SIR PAUL STEPHENSON, METROPOLITAN POLICE COMMISSIONER: However, the issue of my integrity is different. Let me state clearly. I and the people who know me know that my integrity is completely intact.

I may wish we had done some things differently, but I will not lose any sleep over my personal integrity.

(END VIDEO CLIP)

RIVERS: So, basically saying he didn't do anything wrong but, clearly, he felt that the pressure was on him enough and that the image and the perception of what was going on under his leadership was sufficiently bad that he had to go.

It is an incredible chain of events when you look back on the closing of the "News of the World," on Rebekah Brooks having to resign, then she's arrested and, now, Britain's top policeman has also resigned as well. Kristie?

STOUT: Yes, it is incredible the pace of how this scandal is unfolding and spreading. Now, British prime minister David Cameron, he plans to make a statement to MPs on Wednesday. What is he likely to address?

RIVERS: I think it's going to come back to this constant allegation about his judgment in hiring Andy Coulson as his communications director, Andy Coulson former editor of the "News of the World" who himself has also been arrested as part of this police inquiry.

And it's constantly sort of coming back to the doorstep of Number 10 Downing Street at the suggestion that the prime minister needs to explain himself more fully. Why did he ignore repeated warnings not to hire Andy Coulson from colleagues and from members of other parties. Why did he sort of steamroller this through?

And why, particularly, did Andy Coulson go and visit the prime minister for a weekend at the prime minister's country residence three months after he quit from 10 Downing Street. A lot of questions for him to ask.

STOUT: Yes, and the potential fallout so far-reaching here. Dan Rivers joining us live from London. Thank you.

Now, remember, CNN will carry Rupert and James Murdoch's testimony live on Tuesday. Our special coverage begins in just under 24 hours from now with Richard Quest outside the houses of Parliament. That begins 8:00 PM Hong Kong time, 1:00 PM in London, right here on CNN.

Coming up on NEWS STREAM, in Libya, after months of war, supplies are low. We are in rebel-held portion of the west where the struggle for food is increasingly tough.

And in Egypt, there are question marks over the health of this man, former leader Hosni Mubarak, after he reportedly slipped into a coma briefly on Sunday. We'll have more on that in a moment.

(COMMERCIAL BREAK)

STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching NEWS STREAM. And these are your world headlines.

Now one of Britain's most senior detectives is to face a second grilling before parliament. John Yates has been recalled to answer questions about his links with former News of the World executive Neil Wallace. The decision was made just hours after Britain's top policeman, Commissioner Paul Stephenson resigned over the phone hacking scandal engulfing Rupert Murdoch's media empire.

Italian Prime Minister Silvio Burlesconi has been dealt a courtroom defeat. A Milan judge has rejected a bid by his lawyers to move his trial on charges of under-age sex and abuse of power to a special court. The 74 year old is accused of paying for sex with a 17 year old night club dancer.

South Africa is celebrating Nelson Mandela's 93rd birthday this Monday. The annual milestone has been branded International Mandela Day by the UN in recognition of the legacy of South Africa's first black president.

And the Taliban are claiming responsibility for another high profile murder. Key adviser to Afghan President Hamid Karzai was killed by gunmen on Sunday. A firefight with police forces lasted for hours. And this comes just days after Mr. Karzai's half-brother was assassinated by a trusted guard.

Now in another instance, a blast in eastern Afghanistan has killed three NATO service members. It comes on the same day that General David Patraeus stepped down as the top commander there.

Now let's bring in Pentagon correspondent Barbara Starr to tell us about the new man in charge, Marine Lieutenant General John Allen. Barbara, tell us more about General Allen and how the command in Afghanistan will change under his leadership.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well Kristie, this change had been long anticipated and announced some months ago. General Allen, of course, a marine, very respected, coming to take over for General Patraeus who is retiring and will come back to Washington to head the CIA.

General Allen very quiet, very sort of non-public figure, but very respected inside the military. He knows Afghanistan backwards and forwards, but he comes to this war of course at a very tough time. U.S. troops are beginning that withdrawal process, coming back to the United States. Security being handed over to the Afghans. And as we have seen from the latest developments, it is still very tenuous in that country.

So General Allen will be the one who will have to really bring it home, make this whole strategy of counterinsurgency, turning things over to the Afghans, make it work over the long-term so U.S. troops really can withdrawal from combat in that country.

General Patraeus coming back to head the CIA. His focus will likely shift to areas like Yemen, Somalia, but still countries like Pakistan, Iran, North Korea front and center for General Patraeus when he heads the CIA -- Kristie.

STOUT: Now Barbara, we have seen the killing of a key Karzai aid and the recent assassination of Karzai's brother. And they both highlight the challenges ahead. So what is the Pentagon's view on the readiness of Afghan forces?

STARR: Well, I think most people in the U.S. military would tell you that it is still a mixed picture at best. They've really upped the training, tens of thousands of Afghans now part of the security force there, but it's still pretty problematic. There are some, no question, that fight very hard and very well. That's what you would expect.

But one of the biggest challenges in Afghan security forces still of course is a lack of literacy. There's a lot of literacy training going on. But that's really a very enduring problem across the force, getting them that kind of training and getting them really trained up to be able to function, to be able to do their jobs whether it's in the field essentially it's Afghan infantrymen, or Afghan police patrolling towns and villages -- Kristie.

STOUT: And also, General Patraeus, he is a lifelong military man. He's returning to the U.S. to run the CIA. Is this an unusual career move?

STARR: Well, not in the United States in recent years, actually. There have been a number of active duty, very senior U.S. military officers who have intelligence expertise, who have gone on to intelligence posts either at the CIA, the National Security Agency, Director of National Intelligence. Some have served on active duty, some have retired and then gone on to serve. It's been something that has happened here in the U.S. in recent years.

General Patraeus will retire. He'll take off the uniform after 37 years in the army, come back in September will move to head the CIA as a civilian.

But make no mistake, he's going to have to demonstrate to that CIA workforce that he's really left the army behind, he's no longer a general, and that he is ready to head a civilian intelligence agency -- Kristie.

STOUT: Barbara Starr, live in the Pentagon, always a pleasure. Thank you.

STARR: Thanks.

STOUT: Now turning now to Libya. Now only has the country been beset by civil war for months, but in the rebel held west food supplies are down and the price of petrol is up. Ben Wedeman has more.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: The evening break is ready in of Zintan's bakeries. Young boys wait patiently to take home the hot, fresh loaves. No one is starving in western mountains that rose up against the rule of Moammar Gadhafi, but food and other essential goods are in short supply.

Watermelons are a treat in this dry, hot climate, but they are a treat most Zintanis can't afford.

"I have enough money to buy a watermelon," Hamid tells me, "but 95 percent of the people don't have the money to buy one."

If you need to fill your tank, you buy fuel on the street corner from 16 year old Ahmed. His father buys it in Tunisia, a two hour drive from here.

Before the revolution, a liter of petrol cost 16 cents, about 70 cents a gallon. Now it costs more than 10 times that.

"You can't fill up your tank like before," says Ziad. "You just fill up as much as you need to go around town."

Banks opened recently for the first time in months. Cash has been in desperately short supply as is medicine.

More often than not, Ahmed the pharmacist can't fill prescriptions.

"We're low on antibiotics, cough syrup and medicine for diarrhea and high blood pressure," he says. "90 percent of what we should have is missing."

Cigarettes seemed to be the only item in plentiful supply, though prices are up.

The shelves in Zintan's stores are pretty bare. All you can find is things like biscuits and other odds and ends, however, in the place of normal commerce, a new system has sprung up.

In what used to be Zintan's Pepsi warehouse, volunteer workers load up a truck with relief supplies: milk, pasta, dates, clothing, and some soft drinks. Everything has been donated either by aid groups or wealthy Libyans living abroad. Everything comes via Tunisia. These goods are delivered to neighborhood centers, which in turn divide what they receive according to the number of family members.

Moussa (ph) is picking up supplies for his extended family, 11 people in all. His wife, Khada (ph) is confident somehow they'll get by.

"We'll manage," she says. "Our grandparents ate dates and barley. God will not let us die of starvation."

For the time being, this town is living on more than bread alone.

Ben Wedeman, CNN, Zintan, Western Libya.

(END VIDEOTAPE)

STOUT: In Egypt there are fresh concerns over former President Hosni Mubarak's health. Now doctors say he slipped into a coma on Sunday only to come out of it hours later. Now this comes amid a major cabinet reshuffle to appease protesters' demands. Now journalist Ian Lee joins me now from Cairo with more on both of these stories.

And first up, Ian, what do we actually know about Mubarak's condition?

IAN LEE, JOURNALIST: Well, what we know right now is that from what the hospital said -- the hospital was the last one to speak on the condition -- the hospital said that Mubarak had low blood pressure, but that they were able to stabilizing.

This contradicts what his lawyer said yesterday evening which says that Mubarak slipped into a coma. Now the hospital came right out after that and said, no he wasn't in a coma and that he had low blood pressure, but they stabilized him. But a lot of Egyptians are seeing this as some sort of stall tactic. People I've talked to in Tahrir say that this is a stall tactic so that Mubarak won't have to stand trial in early August.

STOUT: Yeah, there's so much skepticism out there. So from your point of view as a journalist, has the Egyptian government been forthcoming and transparent about the state of Mubarak's health?

LEE: Well, we're always getting different reports from state media or his lawyer. So these keep coming out about his health. But when we hear something like he is in a coma, the hospital is quick to release a statement that either confirms or denies any report that we're hearing.

So what we're hearing right now is that he's doing all right, but you know, we're definitely keeping an eye on it.

STOUT: OK. And separately, Egypt will find out today who will run the government. So Ian, any idea how this new cabinet will take shape?

LEE: Well, these new players in the cabinet, a lot of them are new to many Egyptians, but so far people seem pretty indifferent. They welcome the change, but a lot of people say that they want the cabinet to have more power. They want more of a civilian government that's helping with the transition. A lot of people see SCAF, the Supreme Council of the Armed Forces, which rules Egypt right now as kind of the lead dog that's making all the rules. People would like to see more of a civilian transition of power already.

So talking to people in the square today they said, you know, this is great, but we want to see them have more power.

STOUT: Ian Lee joining us live from Cairo. Thank you, Ian.

Now the Arab Spring and its impact on Lebanon, now that is going to be the focus of Richard Quest's exclusive interview with Prime Minister Najib Mikati. Join us 8:00 pm here in Hong Kong for Prism right here on CNN.

Now he has been asking for a move away from his current football club for over a year now. And now it appears that Carlos Tevez is about to get his wish. So where will the Manchester City striker end up? We'll have more on that in just a minute.

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STOUT: Welcome back.

Now Apple has won a preliminary ruling against a Taiwanese phone maker HTC for infringing on its patents. Now HTC makes phones that run Google's Android operating system, that's Apple's main competitor for control of the software that runs on mobile phones and tablets. And this heated fight in the mobile phone market has led to a flurry of lawsuits.

Take a look over here. Now this is just a small selection of some of the many cases between a number of tech companies. Now Apple recently lost a case against Nokia, forcing them to pay Nokia a large some, plus royalties.

And that didn't stop Apple from going after Samsung, accusing it of copying the iPhone and the iPad. Now Samsung countered by seeking a ban on imports of the iPhone, iPad, and iPod Touch to the U.S. Now it's interesting to note here that Samsung makes many of the chips inside those Apple devices.

And if that's not strange enough, how about this one? Microsoft has an agreement with HTC and a few other Android handset makers to share patents in exchange for royalties. So, if you walk into a phone store and decide to buy an Android phone instead of one running Microsoft's Windows Phone 7, Microsoft still earns money.

And it's not just about hardware and software. Microsoft and Apple are doing battle over the right to use the term App Store.

Now let's go to sports now. Our Manchester City star man might finally get the move he's been looking for for months now. And Don Riddell joins us live from London with more -- Don.

DON RIDDELL, CNN SPORTS CORRESPONDENT: Hi there, Kristie.

Yeah, Carlos Tevez could be on his way to Brazil soon. Manchester City have confirmed that they have accepted an offer from Corinthians for the striker, but say a deal has yet to be done.

Tevez has been unsettled for some time now and has been seeking a move back to South America. He did spend two very successful years with Corinthians before moving to England five years ago.

Now to many people, Brazil are the best football team in the world. And even when they're not winning World Cups, they are still producing some of the most sought after players on the planet. So, when their Copa America quarterfinal against Paraguay went to penalties, you'd have fancied them, right? Especially since their opponents hadn't managed a single shot on target all game.

Well, not only did Paraguay win the penalty shootout, but Brazil didn't hit the back of the net once. Not only that, they didn't even hit the target with three of their four kicks. Ilano, Andre Santos, and Fred all completely missed. Thiago Silva's penalty was saved. And that completed a weekend of upsets at the Copa -- Argentina and Chile were also sent packing.

The Japanese moto GP (ph) must be in (inaudible) this year following the announcement that two top riders will not race there on the 2nd of October. The former world champion Casey Stoner and the reigning champ Jorge Lorenzo have stated that they will not compete at the MotoG circuit, because it is just over 100 miles from the strickened Fukushima nuclear reactor. The race has already been postponed because of the earthquake and tsunami earlier this year. The race organizers have ordered an inspection of the circuit and will report their findings next week -- Kristie.

STOUT: All right, Don, thank you very much for that.

Don Riddell there joining us live from London.

Now Harry Potter has done it, biggest midnight debut, biggest opening day, and just to complete the set best opening weekend. That's in the U.S. where Harry Potter and the Deathly Hallows Part 2 grossed $169 million over the weekend. And as ever, fans queued around the block to catch the movie.

Now worldwide, the 8th and final film of the franchise raked in $476 million on its opening weekend. It is the first Potter film to be screened in 3D, which bumps up ticket prices a bit. Now nevertheless, Potter is proving to be box office magic.

And whatever you may think of it, there is no denying the Potter franchise has been a stampeding runaway success. Now take a look at this, according to the box office data web site called The Numbers, the Star Wars films have brought in more than $4.4 billion. Now there have been 23 James Bond movies, grossing more than $5 billion. But here's the interesting bit, even before this weekend's launch, Harry Potter was the film franchise leader.

And check this out, after the opening weekend, it has extended its lead, raking in a grand total of more than $6.4 billion.

Now ahead here on NEWS STREAM, it is a special day for Nelson Mandela. The former South African president is celebrating a very special birthday and the entire country is helping mark the occasion. We'll tell you after the break.

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ALAN RICKMAN, ACTOR: I think (inaudible) it's like a whole world takes one look at that face, that history, and that story and you feel about the size of a gnat. And why is that? Because of his -- never mind courage and endurance, but his continuing humanity. A very happy birthday Mr. Mandela.

CHARLIZE THERON, ACTRESS: Madiba, happy birthday. I wish you everything that is beautiful. He's been a grandfather to millions. And I think that relationship is what makes his legacy so special.

(END VIDEOTAPE)

STOUT: Indeed, birthday wishes are pouring in for South Africa's Nelson Mandela. The nation's first black president is now 93 years old.

Robin Curnow joins us from Johannesburg to tell us more about how the nation is celebrating Mandela's birthday.

What's happening there Robin?

ROBIN CURNOW, CNN INTERNATIONAL CORRESPONDENT: Well, there's been a lot of singing. When I dropped my 4 year old at kindergarten this morning, all the kids were lined up and singing a happy birthday song to him. And that played out across the country. It's estimated more than 12 million school children here before they went to classes this morning gave Nelson Mandela a little happy birthday song.

And of course they're not the only ones. It's quite an emotional day for South Africans. I think a lot of us get choked up when we talk about it, because he is such a special person in so many people's lives here. This is a man who created this nation, who led this country out deep, deep racial divisions and made everybody one. And I think it's not lost on South Africans, so on a day like today people from all walks of life, all different races, get together and do their little bit to honor his legacy. Take a look at this.

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CURNOW: Revved up and ready to spread a message of change. These are the unlikely road warriors for Nelson Mandela, a multiracial, multilingual group of South Africans, they've ridden the highways and byways of the country for the past week doing good along the way.

Stopping off in forgotten little towns, honoring the most vulnerable with their time.

UNIDENTIFIED MALE: We're going to be painting, also, a wall here.

CURNOW: Their gift to Nelson Mandela for his birthday.

UNIDENTIFIED MALE: This is how you paint a wall.

CURNOW: On this stop, the bikers are painting a small orphanage in a small town called Harrismith.

Brightening up walls, adding a little color, a little hope to the kids' lives just like Nelson Mandela would do.

ZELDA LA GRANGE, MANDELA'S PERSONAL ASSISTANT: For Madiba, it shows him, it demonstrates to him that people are passionate about his legacy.

CURNOW: Mandela is now 93, too frail for public appearances, his memory is going. And he battles with the health problems that come with old age. But many in South Africa want to remind him and others that his sacrifices, his extraordinary life's journey is not forgotten and still relevant to the ordinary person.

UNIDENTIFIED MALE: It's opening up my views, you know, and it comes through helping that it's a selfless act.

UNIDENTIFIED MALE: We've come here, we've made a change. We've painted this jungle gym so there's concrete evidence that we were here so that this can be an example for others in the community, but we leave behind to actually do the same as we have done.

UNIDENTIFIED MALE: Madiba's legacy is about people enjoying each other's company and having fun providing service.

CURNOW: Mandela's birthday on July 18 has been branded Mandela day. His image is emblazoned across the national airline. And on the powerful motorbikes that have crisscrossed the country to remind people that Mandela's most enduring legacy is to give a little of yourself for the greater good.

(END VIDEOTAPE)

CURNOW: OK.

And, you know, I think it's important for most South Africans and many people here feel that, but the recognize that Madiba, as he's called, is old, is frail as I mentioned there, his memory is going. It's not disputed that he is very frail. And people are very aware that every day he's here with South Africa that they have to honor that. And I think there's a real, real quite emotional face here that people are grateful.

And as I mentioned, I think there is a real lot -- quite a lot of soul searching among many people in South Africa as they really take this day to pause and see how far they have come and how much Madiba means to them.

STOUT: Yeah, love seeing that reaction there in South Africa. So much positivity there.

Robin Curnow joining us live from Johannesburg. Thank you.

Now a typhoon is nearing Japan. When will the rough weather start? Let's bring in Guillermo Arduino once again -- Guillermo.

ARDUINO: I was checking out the south especially, because Karoshima (ph), for instance, sees some winds, but I am seeing rain showers reports, especially in southern parts near Shikoku, all over and into Tokyo at times rain showers. We don't even get rain right now. And of course the island, the Kyushu islands is where we see the roughest of the weather as we speak.

Because of that high that we have there to the right is that the system is going to turn, but that high is going to define exactly what's going to happen.

Everybody is in agreement that the cyclone is going to turn towards Tokyo, but because it is expected to make landfall within 24 hours in Shikoku, then it's going to start weakening a little bit because of the interaction with the land.

Again, here, in this picture you see how wide the system is. And the farther it goes to the north, the weaker it's going to become, but the next 24 hour period is actually very important, because when we are going to see it nearing landfall and that's at the strongest stage that the cyclone is going to be.

It is not an extremely strong cyclone, but because of what has happened recently in Japan is that we're looking at it with more attention.

And of course the typhoon season is not over, it's just the beginning, so we're going to see a lot of it in the months to come. So this is good training for everybody.

What you see that -- all of the organizations are in agreement that that's what's going to happen. Tokyo, where we are very concerned about what's going on there, is going to be brushed by this system. We're going to see rain. We're going to see wind. But it could be much worse.

And we're lucky that the strongest winds are to the south of the eye of the system, and that's pretty good.

Now we look at what's going on with rain elsewhere in Asia. And especially here into Myanmar, for instance, we see a lot of rain with some parts of India and definitely in the next two days a lot of rain associated with this typhoon into Japan.

Temperature wise, no changes. It's going to continue to be very warm. Some examples, this is what you have in here, the Tuesday highs. Look at Islamabad. The monsoon hasn't reached there yet, that's why it's almost 40 degrees. But Mumbai is under the monsoon flow, so we see that temperatures are a little bit cooler there. 36, the current temperature in Jaipur. And Bangkok 29.

In Europe, we see rain, especially into the Alpine region. Actually, the storms are going to develop there and scatter showers all over from the North Sea to Scandinavia, France and Britain -- Kristie.

STOUT: Our Guillermo, thank you.

And that is NEWS STREAM. But the news continues at CNN. "WORLD BUSINESS TODAY" is next.

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