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U.N. Resolution for Syria to Stop Crackdown on Dissent Fails; Conrad Murray Trial; Labor Unions Endorse Occupy Wall Street Movement; Apple Unveils iPhone 4GS; NBA Owners Still Unable To Reach New Deal With Players Union

Aired October 5, 2011 - 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: Welcome to NEWS STREAM, where news and technology meet.

I'm Kristie Lu Stout, in Hong Kong.

Now, we begin with Syria, with action or non-action at the U.N. But inside the country there are signs that armed resistance is growing.

And the protest movement to Occupy Wall Street is getting ready for a boost.

Plus --

(BEGIN VIDEO CLIP)

TIM COOK, CEO, APPLE: I'm really pleased to tell you today all about the brand new iPhone 4S.

(END VIDEO CLIP)

STOUT: Apple unveils its latest iPhone, which looks remarkably similar to the old one.

Now, the U.S. ambassador to the United Nations calls it a sad day for Syria. A Security Council resolution calling on the Syrian government to stop its bloody crackdown on dissent has failed. Despite reports of 2,700 deaths, Russia and China vetoed the proposal. Its sponsors voiced disappointment and anger after the vote.

(BEGIN VIDEO CLIP)

SUSAN RICE, U.S. AMBASSADOR TO U.N.: The United States is outraged that this council has utterly failed to address an urgent moral challenge and a growing threat to regional peace and security.

GERARD ARAUD, FRENCH AMBASSADOR TO U.N. (through translator): Let there be no mistake, this veto will not stop us. No veto can give carte blanche to the Syrian authorities, who have lost legitimacy in assassinating and killing their people.

(END VIDEO CLIP)

STOUT: Syria's ambassador responded by blasting U.S. policies in the Middle East, prompting the Americans to walk out. The British envoy followed. And human rights activists say the U.N. failure will enable more repression in Syria.

Now, Russia and China said the resolution would not help.

Arwa Damon is following developments in Syria from CNN Beirut, in neighboring Lebanon. She joins us no live.

And Arwa, what is the reaction inside Syria to the U.N. veto and the latest on the crackdown?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, the activists are growing increasingly worried that this blatant division within the international community over how to tackle the uprising in Syria is only going to further embolden the Syrian government, only allow it, despite what we heard the French ambassador saying there, literally carte blanche to do as it will when it comes to trying to suppress these voices of dissent. There's been something of a growing yet reluctant conversation amongst activists as to whether or not they will perhaps be forced into carrying weapons, but at the same time, we are also seeing amongst a small group of defectors an effort to try to create some sort of an organized armed rebellion.

(BEGIN VIDEOTAPE)

DAMON (voice-over): Defectors from the Syrian military say they were told they were targeting terrorist armed gangs, only to find themselves face to face with peaceful demonstrators, and under orders to shoot. In late July, former air force officer Colonel Riad al-Asaad announced the formation of these Free Syrian Army, the first effort to organize an armed resistance made up mostly of defectors. He states, "The mission is to stand with and protect the people."

We reached him by phone in his safe haven in Turkey, close to the border with his homeland. "The regime turned the army into its private gang that was killing people, killing innocents," he says.

In recent weeks, the number of defections have accelerated, though, for now, the force numbers in just the thousands, a mere fraction of the power the Assad regime has at its disposal. But this armed entity could signal a considerable turning point in the Syrian uprising.

"We are carrying out operations on Syrian land," al-Asaad claims. "They are fearful we are causing them losses."

Facebook pages of the Free Syrian Army and of Khalid Bin Walid Brigade list their clashes with Syrian security forces. One claimed, for example, it takes responsibility for killing four snipers.

CNN cannot independently verify these statements, but events on the ground appear to show violence increasing in areas where the defections are concentrated like Homs and Resta (ph), with losses reported on both sides. Al-Asaad believes that as the cycle of violence and death continues, more defections will occur, claiming that the morale among the government's already fatigued troops, mostly Sunni, is rapidly declining. But, he says, in the face of such a brutal regime, defecting is a hard decision. One also needs to be aware the regime might well retaliate against their family.

Al-Asaad says they need international help to bring down the Assad regime. "We are asking the international community and the United Nations to support us by establishing a no-fly zone and a naval blockade, and with weapons," al-Asaad says. With this, he believes the Free Syrian Army can secure an area to operate from, from within Syria, a safe zone that would encourage more defections and provide protection.

After seven months of ruthlessly targeting mostly peaceful demonstrators, al-Asaad says the Syrian government left them with no choice. "This regime will stay until the last drop of blood," he explains. "This is a regime built on the use of force, and it cannot be brought down except for by force."

Many activists we've spoken to are now reluctantly talking about the need of self-defense, realizing its necessity in the face of a regime that refuses to back down, but dreading the potential consequences.

(END VIDEOTAPE)

DAMON: And among those consequences, Kristie, is the very real fear amongst many activists that the longer this drags out, the more polarized the nation becomes, the greater the possibility that this could potentially spiral into a widespread civil war.

STOUT: And Arwa, I wanted to ask you bout this "New York Times" report. It's saying that Syria has revoked a ban on imports of consumer goods, fearing a backlash from the business elite. So, is this a sign of President Assad's vulnerability?

DAMON: Well, the business elite is one of the main pillars that is holding up this regime. And by and large, they have at least publicly remained silent. We have not seen in any of the main commercial hubs -- Damascus, Aleppo -- any sort of widespread demonstrations against the Syrian government.

Now, initially, the government had passed this temporary ban that basically prevented the import of goods whose Customs duties exceeded five percent around 10 days ago. This was meant to try to preserve the country's foreign reserves, try to make sure that the economy didn't really begin to crumble. That did, however, according to the Syrian state-run Arab News Agency a negative impact.

Prices basically were skyrocketing, and so the government decided to reverse this. And it most certainly would seem that it is doing this to try to continue to appease that business community.

At this stage, it seems as if the Assad regime cannot afford to lose control or lose the support of any one of the pillars that are holding it up. And I was saying, the business community very critical to that, as is the security services themselves, too -- Kristie.

STOUT: Arwa Damon, watching Syria for us, live from Beirut.

Thank you very much for that.

Now, a newly-freed Amanda Knox says all she wants to do now is to enjoy some private time with her family after spending four years in prison. Now, the young American woman, she arrived back home in Seattle, Washington, on Tuesday, one day after an Italian jury overturned her murder conviction in the 2007 killing of her British roommate, Meredith Kercher.

At Seattle's airport, she tearfully thanked her supporters.

(BEGIN VIDEO CLIP)

AMANDA KNOX, MURDER CONVICTION OVERTURNED: I'm really overwhelmed right now. I was looking down from the airplane, and it seemed like everything wasn't real.

What's important for me to say is just thank you to everyone who has believed in me, who has defended me, who has supported my family. I just want -- my family is the most important thing to me right now, and I just want to go and be with them. So thank you for being there for me.

(END VIDEO CLIP)

STOUT: Another high-profile case continues to unfold in southern California, and that is the involuntary manslaughter trial of Michael Jackson's former doctor, Conrad Murray. Now, we could hear testimony later on Wednesday from investigators who prosecutors say recovered vials of Propofol from the pop star's home after he died.

Several of Dr. Murray's ex-girlfriends riveted the courtroom on Tuesday. Randi Kaye has more.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Prosecutors trying to persuade the jury Conrad Murray is responsible for Michael Jackson's death showed he was busy making phone calls and sending text messages instead of monitoring his star patient's IV. They paraded out a small harem of women in Dr. Murray's life.

Michelle Bella, a dancer at a Las Vegas club who met Murray in 2008, told the jury she was contacted by the doctor in the hours before Jackson died.

DEBORAH BRAZIL, PROSECUTOR: Did Conrad Murray send you a text on June 25th of 2009?

MICHELLE BELLA, DANCER: Yes.

KAYE: And this woman, Sade Anding, Murray's former girlfriend, who prosecutors say was on the phone with Murray the moment he realized Jackson had stopped breathing.

SADE ANDING, WITNESS: I said, "Hello? Hello?" And I didn't hear anything. And that's when I pressed the phone against my ear, and I heard mumbling of voices.

It sounded like the phone was maybe in his pocket or something. It was -- and I heard coughing. And nobody answered.

KAYE: The timing of this phone call is key. Here's why. Anding says Murray called her at 11:51 a.m.

BRAZIL: How long into your conversation with him would you estimate that he stopped responding or speaking back to you?

ANDING: Well, when I realized five to six minutes. But he probably could have been off the phone before that.

BRAZIL: The call was made at 11:51 and only lasted six minutes. Prosecutors say that would mean Murray knew Jackson was in trouble at 11:57 a.m.

Remember, 911 wasn't called until 12:20 p.m., 23 minutes later.

Next came Nicole Alvarez. They, too, met in a Las Vegas club. Alvarez testified that from April to June, Murray had packages delivered to her apartment.

BRAZIL: Did you have any sense of what these packages contained?

NICOLE ALVAREZ, WITNESS: No.

KAYE: The man who knows is Tim Lopez, a Las Vegas pharmacist who testified Murray ordered vials of Propofol from him and had them shipped to an address in Santa Monica, California. Turns out that was Murray's girlfriend's address.

The defense tried to lessen the blow.

NAREG GOURJIAN, DEFENSE ATTORNEY: Was there anything wrong with shipping medication to an address provided by a doctor?

TIM LOPEZ, LAS VEGAS PHARMACIST: No.

GOURJIAN: OK. So as long as the doctor directs you to ship the medication and tells you "I will have control of the medication," that's OK for you, correct?

LOPEZ: Yes.

KAYE: The coroner says Jackson died of acute Propofol intoxication. Listen to how much Murray ordered.

BRAZIL: Mr. Lopez, after reviewing all of the orders placed by Conrad Murray to you, can you provide me with the total number of Propofol vials that were sold and shipped to Conrad Murray?

LOPEZ: I can confirm the number.

BRAZIL: Is the number 255?

LOPEZ: Yes.

KAYE (on camera): Two hundred and fifty-five vials of Propofol over two- and-a-half months. In fact, on May 12, 2009, just two days after Conrad Murray made an iPhone recording of Michael Jackson sounding wasted and slurring his words, prosecutors say Murray ordered another 65 vials of Propofol. Yet, the defense says Conrad Murray was trying to wean Michael Jackson off the drug.

Randi Kaye, CNN, Los Angeles.

(END VIDEOTAPE)

STOUT: Now, ahead on NEWS STREAM, protecting the world's biggest mammals. Activists are angry over Japan's plans to resume whaling, and there may be trouble brewing on the open seas.

Plus, Wall Street protesters, they're at it again. We'll look at the growing movement in the U.S., who is getting involved and where it's heading next.

And preparing to mark a milestone. It has been almost 10 years since the war in Afghanistan began, but how much has changed?

(COMMERCIAL BREAK)

STOUT: All right. Welcome back.

Let's bring up some pictures for you of the Greek capital today, where thousands of workers have walked off the job. Now, flights are grounded, hospitals are running emergency services with the country in the midst of a 24-hour strike. Some demonstrators have gathered in front of parliament to protest more austerity measures, but many analysts say that the government plan will not prevent Greece from defaulting on its debt.

Now, in the U.S., protesters on Wall Street are gearing up for a big march in New York. And what started out as a group of unemployed college students has grown to include celebrities and labor unions.

Demonstrations have also spread to other cities. And their goals, while nonspecific, are to oppose social inequality and corporate greed.

Let's bring in Susan Candiotti, live in New York.

And Susan, it's 8:00 a.m. in the morning there. Can you describe the scene for us?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: I can.

It's about a little after 8:00 in the morning here in New York, and this public park is really in the shadows of the World Trade Center, Ground Zero, where reconstruction is going on in the background. At this hour, most of these protesters, because they usually stay up late, are still sleeping at this hour, as you can see, on the ground, in sleeping bags, on mattresses. But they say they're willing to stay out here under these conditions as long as they can, and so far the city has not given them the boot -- they're in a public park here -- because they say they believe in this movement, a movement they hope is growing. That is, protesting corporate greed.

And yes, they have had a few celebrities come out in the last three weeks - - that's how long they've been out here -- including people like Michael Moore, the documentary filmmaker, who is going to be here and is in support of this latest protest today, this latest demonstration that will take place, with the help of a lot of unions who will be represented here this day. Yes, the movement is still leaderless. Yes, it still lacks organization. But more and others say that's the way they like it.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, FILMMAKER: What you see here and what you're seeing all across the country are millions of people who have had it. And they are rising up peacefully, nonviolently, because we have the votes, we are the majority of the citizens. Power in a democracy is derived from the people, and they are not "the people." They are the upper one percent.

(END VIDEO CLIP)

CANDIOTTI: And, you know, Kristie, I was talking a little while ago with a grandmother and her grandson who are out here from Detroit, Michigan, have been out here for several days and are planning to spend the week out here. Why? Well, the young man said, "This is the protest," as he called it, "of my generation." And his grandmother said she has been waiting to join some sort of a protest ever since the economic collapse of 2008.

So that's a thumbnail sketch of the kinds of people who are out here. Yes, some people are unemployed. Yes, some people have their homes in foreclosure. Other people have lost their job. But it is going to be a very long day for them, as they hope that hundreds from unions will be joining their ranks at a demonstration later this day.

Back to you, Kristie.

STOUT: You know, it is incredible. This movement has grown so much. It's attracting people from all sorts of different demographic backgrounds.

You mentioned unions and labor leaders. A very significant development. They are now endorsing this movement. But why? What are they telling you?

CANDIOTTI: Yes, many of them are endorsing the movement. Some of them in word only, but some of them, indeed, by being here this day.

The reason they say they are is because they say unions represent some of the same problems that affect many people. They have suffered wage cuts, benefit cuts, loss of jobs, as we said. And so -- health benefits, as well. And so they said that is a microcosm of what is affecting many other people in the United Sates.

And that is why they are coming down here to joins this movement, even though, again, as they stress, no one's come up with a solution yet. They're still looking for one. They feel their presence says enough by being out here, that they at least think something should be done. Something needs to be done to protest what the financial markets -- what's happening with them and what is happening with banks and financial institutions of all kinds.

STOUT: A lot of angry people out there.

Susan Candiotti, joining us live from New York.

Thank you very much for that.

Now, despite vocal opposition, Japan says it plans to resume whale hunting expeditions in the Southern Ocean this winter for what the government calls scientific purposes. And on Tuesday, Japan's Fisheries Ministry said that it will also boost security around its fleet to guard against anti-whaling activists.

Now, Japan's mission was caught short last year after repeated interference by activists from the Sea Shepherd Conservation Society. The group says its efforts helped save 800 whales.

Earlier, John Vause spoke to the head of Sea Shepherd and asked what the group plans to do this year.

(BEGIN VIDEO CLIP)

PAUL WATSON, SEA SHEPHERD FOUNDER & PRESIDENT: What we do is we find them, we block them, we prevent them from loading their whales. The only way that they can stop us is to sink us. So, if they're prepared to kill us to go ahead and kill their whales, then that's the only thing that's going to stop us, because we're going to be down there with our three vessels, and we will block them. And we'll do what we've done for the last seven years, is shut down their illegal whaling operations.

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: So, essentially, your tactics will be the same, but you're willing to put your life at risk.

WATSON: We've always been willing to risk our lives. My entire crew is very passionate about that, and we've proven to be -- that our tactics are successful, they work, and they just frustrated them.

And they have sent security vessels down before, but the question is, will they bring arms, will they fire on us? We don't know.

(END VIDEO CLIP)

STOUT: Now, Watson says that his team has been attacked before by Japanese whaling vessels that have either rammed their boat or thrown concussion grenades. And this video that you're looking at, it purports to show him pulling out a bullet from his vest after a Japanese whaling crew fired at his boat.

Commercial whaling has been banned for years, but Japan points out an exception that allows limited killing for research purposes. And officials from Australia, New Zealand, they say that's nonsense and are strongly urging Japan to reconsider.

(BEGIN VIDEO CLIP)

TONY BURKE, AUSTRALIAN ENVIRONMENT MINISTER: We say to Japan they do not need to do this. There is no justification for continued whaling. They should not be sending their fleet to the Southern Ocean.

Australia unequivocally condemns commercial whaling. We don't accept that this is scientific. It should not go ahead.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

MURRAY MCCULLY, NEW ZEALAND FOREIGN MINISTER: We've expressed our disappointment. We're additionally very concerned to see that both Sea Shepherd people and the Japanese government are making noises that have an ominous feel about them.

On Japan's part, talking about unspecified security arrangements. On the part of the Sea Shepherd, they're talking about more aggressive tactics this year. That's got a very bad feel about it, and we want both parties to take stock before they embark on anything that both will regret later on.

(END VIDEO CLIP)

STOUT: Now, CNN, we have reached out to the Japanese government for a response to Australia and New Zealand's anti-whaling statements today, but officials declined to comment.

Now, ahead here on NEWS STREAM, America's long war.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: On my orders, the United States military has begun strikes against al Qaeda terrorist training camps and military installations of the Taliban regime in Afghanistan.

(END VIDEO CLIP)

STOUT: A young Afghan man says he felt hope and fear when he heard those words by then-President George W. Bush on October the 7th, 2001. And 10 years on, has his life changed for better or for worse?

(COMMERCIAL BREAK)

STOUT: Welcome back.

Now NATO is taking more aim at the feared Haqqani militants in Afghanistan. It says a coalition air strike has killed a senior Haqqani commander near the border with Pakistan. Another Haqqani leader was captured last week. Now, NATO, U.S. and Afghan authorities blame Haqqani insurgents for carrying out a string of recent high-profile attacks including last month's attack on the U.S. Embassy in Kabul.

This comes as the U.S. and Afghanistan prepare to mark a milestone on Friday, the 10th anniversary of the war in Afghanistan. It is now one of the longest-running conflicts in U.S. history, longer than the U.S. Revolution, the U.S. Civil War, and America's involvement in World War II. But not longer than Vietnam.

Now, U.S. and coalition troops entered Afghanistan in the aftermath of the 9/11 attacks. They were on a mission to find al Qaeda leader Osama bin Laden and to remove the Taliban regime from power. And 10 years on, Osama bin Laden is dead, but Taliban and al Qaeda-linked militants continue to fight.

Nick Paton Walsh spoke with a resident in Kabul about what has changed and what has not.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): Like Americans remember where they were on 9/11, Afghans remember when the first American bombs fell.

JAWAID SARHAL, BOMBING WITNESS: Both of the bombs just hit the Taliban's aerial defense system on the top of the hill.

BUSH: Good afternoon. On my orders, the United States military has begun strikes against al Qaeda terrorist training camps and military installations of the Taliban regime in Afghanistan.

SARHAL: My family and I were all sitting right in this room, and we have just done with dinner. And afterwards of the dinner, we just heard a big blast.

WALSH: A decade ago, Jawaid was 16, his family running for the basement.

SARHAL: By the time we heard the explosion, we all just ran out of the house and we just came here. We were --

WALSH: They stayed put through the bombing, the Taliban, and 10 years of war, but it's only now America is withdrawing that Jawaid, an adviser to NATO who is surely needed here, is plotting his escape.

SARHAL: The first reason is the bad security that we have here in Afghanistan, just to provide a safe environment for my only daughter.

WALSH: When the bombs hit that night, there were no electrical lights, but there was hope the Taliban were over.

SARHAL: I had kind of mixed feelings on that night -- hope and fear. But today, hope is gone and fear is still with me.

WALSH: We drive around Kabul, a city that empties after dark. The lights stay on now, the wealth of war everywhere together. But it's fear in the high-rises, the wedding halls. People are staying at home.

SARHAL: You don't really feel safe, especially these nights and days.

WALSH (on camera): There's nobody here, is there? I mean, this is like --

SARHAL: Yes, it starts at 9:00 p.m. here.

WALSH: So who are these guys?

SARHAL: They could be a part of the police that -- you know, because it's going to be hard for you to make a distinction between who is a good guy and who is bad.

WALSH (voice-over): That's the job of these checkpoints bringing Kabul City evermore uncertain. The police commander tells us when the Taliban were in power he worked for them, but seconds later, changes his mind and says they actually punched out his front teeth in a jail cell (ph. Now he's leading the search for them.

For years, Kabul was a safe and vibrant sanctuary as the war raged across the country. But that's less and less the case today. In fact, just behind me is the high rise building from which militants laid siege to the U.S. embassy for nearly 20 hours.

That bold attack making the powerful here seem so weak. A decade of America has given some enough money to keep the lights on in a city where it's ever more rare to have something you could be sure of.

Nick Paton Walsh, CNN, Kabul.

(END VIDEOTAPE)

STOUT: And again, the tenth anniversary of Operation Enduring Freedom is this Friday.

Up next here on NEWS STREAM, if you were waiting for the iPhone 5, then you're still waiting. Apple gave us the iPhone 4S instead. And I'll tell you what's new about it.

And India unveils what it calls the world's cheapest computer, but does it actually work? Our Sarah Sidner gives it a try.

(COMMERCIAL BREAK)

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

Now the U.S. ambassador to the UN says the United States is outraged after China and Russia used their veto powers to block a draft resolution on Syria in the UN security council. Russian ambassador said some countries were being too hasty in their judgment of Syria's rulers.

Now Amanda Knox says she is overwhelmed to be back home in the United States. The 24 year old arrived in Seattle, Washington late on Tuesday after her conviction for murder in Italy was dramatically overturned. Now Knox made a few remarks to media and thanked her supporters.

Now protesters on Wall Street are set to get some reinforcements. Now several U.S. labor unions have endorsed the ongoing demonstrations and say they will join the crowd in New York's financial district. The Occupy Wall Street movement started weeks ago to oppose social inequality.

And 17 people have died in a coal mine accident in southwestern China. State media report that there was a, quote, coal and gas outburst on Tuesday. Now government officials say an investigation into the exact cause of the accident is underway.

Now Apple unveiled the successor to the iPhone 4 on Tuesday. And it is the iPhone 4S. Apple says the new iPhone is much faster and has a new processor. But it looks almost exactly the same as the iPhone 4 leading to criticism from analysts who hoped for a completely redesigned iPhone 5.

Now the iPhone 4S will go on sale in the U.S., the UK, and a few other countries on October 14th.

And consumers in Italy and France may have to wait to get their hands on the iPhone 4S, though. Samsung says it will file preliminary injunctions to block the sale of the phones in those two countries. It says the iPhone 4S violates two Samsung patents.

Now Apple and Samsung, they have been involved in a back and forth fight for months over patent infringement. And Apple says that Samsung's Galaxy phones and tablets seen here are copies of the iPad and the iPhone. Now Samsung denies the accusations and has made counter claims. And the battle has been fought in courtrooms around the world.

Now you're looking at just some of the countries where claims have been filed. And what makes the battle all the more remarkable is that Samsung is also a supplier for Apple. Flash memory chips in the iPhone 4 are made by Samsung.

And when the iPhone 4S finally becomes available in stores, consumers will be able to check out its camera capabilities. With its 8 megapixel camera, the new Apple smartphone promises to be as good or better than many point and shoot devices on the market.

So the opportunity to take pictures like this one of Victoria Harbor in Hong Kong is open to us all. Yes, this photo was taken on an iPhone. And an older model at that. And it's part of an exhibition of iPhone photography here in Hong Kong by Time Magazine senior editor Liam Fitzpatrick.

And I caught up with him before Tuesday's iPhone launch took place.

(BEGIN VIDEOTAPE)

LIAM FITZPATRICK, TIME MAGAZINE: This is a shot taken looking westward to Hong Kong Island in Kowloon. It was taken on my phone as I was going home in a taxi.

STOUT: An iPhone.

FITZPATRICK: On an iPhone, an iPhone 3GS.

STOUT: So why shoot with an iPhone?

FITZPATRICK: Well, it's the camera I've always got on me. I have a DSLR as well, but it's -- you know, you don't always lug that around. And the iPhone is -- or any kind of smartphone that you want to take picture with it, it's always in your pocket. It's really convenient.

STOUT: How were you able to create this effect?

FITZPATRICK: There are a lot of really great apps. And that's part of the joy of the whole experience is like learning which apps work and which are good. And there's so many of them so beautifully mimic analogue photography. You've got this whole palette of effects to choose from that before would have taken like a day to achieve in the dark room.

STOUT: OK, give me your top three apps for photo developing, photo manipulation.

FITZPATRICK: I often use them in combination, so it's really hard to single out three. I mean, I guess if people just go to -- you go to the app store and you look up photography, I use all the ones that come up in the first 20 hits.

STOUT: Now Hong Kong looms large in this photo exhibition. Describe this image for us.

FITZPATRICK: This is looking at Western District. And I guess what I've tried to do here is just give a flavor of how maritime Hong Kong is. I like to take pictures from on the water looking at the city rather than the other way around.

STOUT: And giving an iPhonography exhibition, an exhibition of photos taken only on your iPhone, what kind of reception is it getting?

FITZPATRICK: It's been really good. People have really liked them, and they've enjoyed them. And I guess -- people are interested in the fact that they're taken on the phone. And I guess the challenge for me is to move a bit beyond that and just have them seen as pictures.

STOUT: Now here's another photo from your exhibition. You tend to work mainly in landscapes, is that right?

FITZPATRICK: I love landscapes. I love deep populated landscapes in particular. And I love weather. I love clouds. I love lighting. I love that kind of stuff.

STOUT: Do you think landscapes are a better subject matter for an iPhone camera as opposed to close-ups, still life type photos?

FITZPATRICK: It's just a personal interest. And I'm really inspired a lot by early photographers, 19th Century photographers, whose cameras couldn't capture the speed of human movement, so a lot of my images are deliberately depopulated.

STOUT: iPhone 5 is coming out. Do you plan to get an iPhone 5 and shoot pictures with that.

FITZPATRICK: Yeah, I want those 8 megapixels, I think.

STOUT: I'm going to show you a pretty interesting statistic for you. If you bring up Flickr.com you can see that the most popular camera used by photographers in the Flickr community is the Apple iPhone 4.

FITZPATRICK: Yeah, it says it all really. It's such a democratic kind of camera. And, you know, honestly I think the next great photo of this century will be taken by some random kids somewhere with their phone, sure.

STOUT: And let's bring up the last image that we have here from your exhibition. Another really beautiful landscape type, depopulated as you call it, image. How does it feel when you look at an image like this and it's mounted, it's framed, it's not in a virtual space, but a physical space. Does it lend more gravitas to the work?

FITZPATRICK: I (inaudible) that. But certainly I felt this impulse to do something that was very classic and old school and have an exhibition in a bricks and mortar venue and print them out as opposed to just showing them online.

But I think one of the things it's done is it also shows people that these images can very luminous and very rich and colorful mounted on a wall, not just back lit on the screen.

(END VIDEOTAPE)

STOUT: Liam Fitzpatrick there speaking to me earlier. And again all of those photos shot with his iPhone 3GS.

Now with so many of us relying on our phones to keep us connected, we wondered who has the fastest connection. And being the competitive people that we are, we decided to run a test with a little help from my friends.

So I'm joined now by Zain in London and Michael in Atlanta. Like me, they're holding iPhones running the speed test app. So guys, go ahead and run the test. I'll give some background in the meantime.

The mobile speed test app, you can find it free on the App Store. It measures ping, or the reachability of a host or IP network, download time and upload time as well.

And I should stress that this is completely unscientific. And that here in Hong Kong, we do get awful reception on top of this building. So that's going to explain my very pathetic score.

But let's go to you first, Zain. What did you get?

ZAIN VERJEE, CNN CORRESPONDENT: Well, first of all, don't make excuses.

MIHCAEL: Yeah, really.

VERJEE: OK, in case you lose don't already preempt that. Mine is downloading pretty slowly actually too. I have, oh my gosh, this isn't good. I have .50 megabits.

MICHAEL: Wow. Loser.

STOUT: No.

VERJEE: It was better a few minutes ago. Can I do it again?

MICHAEL: No. No you can't.

STOUT: Oh, no. Don't do it again, because I just got an amazing read just now. It was something else before. Now it's .80. Booyah.

Zain, OK (inaudible) Michael what do you have?

MICHAEL: I got 1.16 -- 1.16. But I -- my excuse will be that I'm in the CNN black hole here, which -- the studio. But 1.16 -- but I did it at home, I'll have to say like here's one I made earlier, I got 4.53 sitting on my back deck doing this. But in here it's 1.16.

VERJEE: That's what you do in your spare time?

MICHAEL: I do. It's all I've got to do. It's pathetic, isn't it Zain. Ever since you left Atlanta...

(CROSS TALK)

VERJEE: Just to be sure of my read. And I have -- oh gosh, it's even worse. I'll stick to .5.

STOUT: Yeah. And that is just the definition for mobile broadband. It's 0.5 megabits per second.

I have, let me bring it up again. I have to refresh my screen. 0.8 megabits per second right here.

MICHAEL: Oh, I win then. Oh, then I win.

STOUT: Yeah, which -- again, the connectivity here at the top of this building is pretty pathetic.

Hong Kong is a place, and you guys have been here before, where you could use your mobile phone under the ocean in the cross harbor tunnel you can access 3G speed. So this is definitely not representative -- this is my Hong Kong represent moment. This is not representative of Hong Kong connectivity right here.

MICHAEL: My experience, too, is it depends on the carrier. I'm not going to mention the carrier on this one, but my work Blackberry is a different carrier. And I -- there are all kinds of places over Atlanta. I get nothing, nothing, nothing, nothing.

This one is slightly better than the other one.

VERJEE: I just want to add, I was looking at the survey...

STOUT: ...that just made me and Zain feel better.

VERJEE: That actually lists the average connection speeds around the world. This is according to Acami (ph) which handles web traffic. And the number one country with the best speed around the world is actually South Korea. They have 13.7 megabits a second. And Hong Kong actually came second, 9.4.

So yeah, you were right. I know you're up on the 40th floor. And you had a lame one. But Hong Kong did well. And...

(CROSSTALK)

STOUT: I'm doing my little mobile happy dance.

VERJEE: don't even feature on the top 10 list.

MICHAEL: Yeah, I can vouch for that.

You know, when you put the wireless on, though, if you are using the wireless. I mean, I got something like 10 when I did that. But you don't maybe use the wireless when you're checking that connection thing.

But, yeah...

(CROSSTALK)

STOUT: go ahead. I'm going to let you go. Zain, Michael it's been a pleasure. Wonderful game for one-upmanship. I can't believe Atlanta just trumped London and Hong Kong. Thank you very much indeed.

VERJEE: This was 6.

STOUT: And like I said, this was -- love you guys, take care. This was a completely unscientific test. Theoretically the iPhone 4 is capable of speed of up to 7.2 megabits per second.

Now in India, there's no competition, at least when it comes to the price when it comes to its latest tablet computer. Now the device, which was unveiled today, it sells for less than $50 a pop. And Sarah Sidner gives us a look.

(BEGIN VIDEOTAPE)

SARAH SIDNER, CNN CORRESPONDENT: Now computers are getting cheaper and cheaper, but this is crazy cheap. India's Ministry of Education has announced it has come up with the world's cheapest computer. And this is it.

Now we got a sneak peak at this little gadget here. It's about 7 inches. So it's smaller than an iPad. It has two USB ports here. It also has an HD screen. So you can watch videos for example.

What the ministry has done, because obviously it's the Education Ministry, it has uploaded some applications in here so that you can actually watch, for example, a lecture. And this is a lecture from one of India's very prestigious schools, one of their IITs. And so students can use it for all sorts of things. Basically anything that you can do on a computer, typing your notes, sending an e-mail, you can do on this little gadget.

The HD screen is nice, because you can again watch different things, including movies if you so like on this computer.

One of the things with this is that basically you have to have Wi-Fi in order for it to get a signal, in order for you to be able to get online. So that's one thing that people might have a bit of an issue with.

The other thing is that some of the touch screen technology is a little bit difficult. You have to be a bit forceful to try and make it work. It's not as sensitive, for example, as an iPad. However, we're talking about a device that does just about everything you can image a computer does, except for the fact that it's only about $50 so a lot more people could afford this.

Now initially the ministry says that it will be handed out to students, given as a text book would be given. So this will be something that students can access and have a hold of, especially if they don't have much of an access, for example, in their dorm rooms, to computer. They will have one that can fit in their bag, for example.

Eventually, though, as you might imagine with technology that is so inexpensive, you will imagine that private companies will pick this technology up and try to go out there and sell it.

All in all, this is a pretty cool gadget. And it's a fraction of a cost of a smartphone, never mind a computer.

Now the question is this, with such an inexpensive device, will it force other computer companies to start slashing their prices so that more and more people can have access to something like this?

Sarah Sidner, CNN, New Delhi.

(END VIDEOTAPE)

STOUT: Now months of monsoon floods are taking a toll on Thailand. And now the water threatens the capital. Will the forecast bring relief or more misery? Mari Ramos is keeping watch.

(COMMERCIAL BREAK)

STOUT: Welcome back.

Devastating flooding in southeast Asia. We've got to get the very latest now with Mari Ramos. She joins us from the world weather center -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Yeah, what a mess. We talked about what happened in the Philippines with two storms that came back to back affecting millions of people there. But in southeast Asia, they've had three storms back to back for Hainan and Vietnam in particular.

You know, when we talk about all of these storms, Kristie, you know we get a lot of questions. So is this more active than other years? Not necessarily. When you look at how many storms we've had so far this year, 18, compared to the average of 19, we're pretty close to where we should be. 11 typhoons so far this year, compared to 12. And four have been super typhoons, so that's a little bit above the average so far this year of what we normally would get when it comes to tropical cyclones in this part of the world -- but by the way, can happen any time of the year, not just during the summer months.

I want to show you over here -- right there, that's the remnant of Nalgae. It's still considered a tropical depression. It's still going to bring some rain we think here across northern parts of Vietnam, but notice across areas to the south we're still seeing some significant rainfall here. This is just associated with the seasonal monsoon rains. And it's affecting not just Hainan and Vietnam, but also as we get into Laos and Cambodia, significant flooding as well, also back over toward Thailand and even as we head over into Myanmar.

So this is very significant. And again we're going to see even more rain showers here. Notice that red bull's eye there in northern parts of Vietnam. That's the remnants of Nalgae you can still see there, maybe -- what 15 centimeters of additional rainfall there. And then widespread areas of 3 to 5 centimeters of rain across the rest of the region.

And it's unfortunately ongoing. And this is a picture from Bangkok that I want to show you of the rain that's affecting that region. So we're not just talking about isolated areas, we're talking about densely populated big cities that are being affected by the monsoon floods across this region.

There is no other typhoon coming, by the way, to Thailand. The remnant of Nalgae could bring some rain showers, but there is no full-fledged tropical cyclone there.

Notice back over here, severe flooding across Hainan as we head over into southern -- southeastern parts of China with weak or moderate flooding.

As we head into other parts of the region, you'll notice that we're still dealing with a drought. Back over here toward western China and over to the north in the border with north Korea still significant to moderate drought expected in those areas, or we have in those areas.

Next is the Philippines. I want to go ahead and show you some pictures that we have of the rescue efforts that are ongoing through these regions. Now, more than 3 million people were affected by these storms that moved through this area. You mentioned, Kristie, two back to back typhoons Nesat and Nalgae. Those affected many areas.

The hardest hit provinces are the ones in Luzon. There are 350,000 people in evacuation centers. And that leaves millions more in situations like this where they're just wading across water. They're, of course, stepping up the rescue efforts now trying to deliver goods, water, and food to the affected the people.

Let's go ahead and check out your city by city forecast.

Wow, look at these pictures, Kristie. This is from the southwestern U.S. in the U.S. state of Arizona. More than 15 cars piled up into each other. It looks like more than 15 to me from those images right there.

That is a dust storm. This time of year, they tend to kick up as thunderstorms approach the area. Unfortunately -- wow, it doesn't really rain much. But the dust, it doesn't take much to kick that up. And you can see it there crossing the highway. At least one person was killed. So this was serious stuff. It shut down this part of the interstate.

You know, those of you guys that watch from Beijing, or northeastern China when you get those dust storms you know what I'm talking about. In this case, it's very windy when they come through. Almost like what you would see across portions of the Middle East.

Scary stuff there. Looking at better weather today. Back to you.

STOUT: That's good to hear. That looked like a scene from a disaster movie there. Wow. Mari Ramos, thank you very much for that.

Now up next here on NEWS STREAM, fans they got to see their favorite NBA stars on Tuesday, but they weren't on the court, they were shuffling in and out of meetings as pro basketball's lockout continues. Alex Thomas will tell you how long it might last. That's coming up next.

(COMMERCIAL BREAK)

STOUT: Welcome back.

Now when the disagreement between NBA players and team owners first emerged, most of us thought it would soon be resolved, but as Alex Thomas in London can explain time is running out ahead of the new basketball season.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Yeah, Kristie, to be stark about it, there are just five days left to save the start of the NBA season. The entire pre-season has already been canceled. And league commissioner David Stern says the first two weeks of fixtures will be called off too unless a deal is reached before October 10.

Team bosses and players still can't agree how to split the sport's revenues. And no more talks are planned.

(BEGIN VIDEO CLIP)

ADAM SILVER, NBA DEPUTY COMMISSIONER: I'm not going to get a good night's sleep after this afternoon's session I would say I'm personally very disappointed. I thought that we should have continued negotiating today. And I thought that there was potentially common ground on a 50/50 deal. I think it makes sense. It's -- sounds like a partnership. There still would have been a lot of negotiating to do on the system elements, but I'm personally very disappointed.

DEREK FISHER, NBA PLAYERS ASSOCIATION PRESIDENT: We're continuing to be open-minded about what a final deal will look like, but today was not the day to try and continue to close that type of gap. It was just not a place that we feel we can go. But that doesn't mean that we're not willing to negotiate. We're not saying that negotiations are over, but in the foreseeable future obviously until another meeting is possibly canceled, we're just not sure at this point.

(END VIDEO CLIP)

THOMAS: And with the 2011-2012 season in doubt, many NBA stars are making alternative plans. Kobe Bryant is considering a $2.5 million offer to play for one month at Italian club Virtus Bologna. Brothers Pau and Marc Gasol also have announced that they will be training with their home team Barcelona until further notice. While New Jersey Nets point guard Deron Williams already in action in Europe. He scored 15 points in a Euro Cup qualifier for Turkish side Besiktas on Tuesday. One report, though, said he looks out of shape. Williams on a $5 million deal there.

Anthony Parker, the San Antonio Spurs, has decided to play for a team in France. They (inaudible) stake him. Remember France is the international team that Parker plays for. He says if the NBA season is canceled he'll stay to help that French club try to win the title.

And find out how the Yankees fared in World Sport in two-and-a-half hours time. And we'll have some Major League Baseball playoff action for you, Kristie.

STOUT: Alex, thank you very much for that.

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

END