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Prime Minister Erdgoan Warns Protesters Patience Is Limited; Rafael Nadal Wins Eighth French Open; Some Question Benefits of Brazil Hosting World Cup, Olympics; Former Treasury Secretary Paulson: Key To China's Future Is Reform

Aired June 10, 2013 - 8:00   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.

Now, the man who leaked information about a U.S. intelligence surveillance program reveals himself and he's here in Hong Kong.

Apple was set to unveil a new look for the iPhone and iPad software.

And the king of clay speaks to CNN as Rafael Nadal captures a record eighth French Open.

Now this man has been identified as the source behind one of the biggest leaks in the history of U.S. intelligence. 29-year-old Edward Snowden worked for a major defense contractor as a computer technician for the National Security Agency. And The Guardian and The Washington Post report he is the one who revealed details about a classified U.S. surveillance program called PRISM.

Now Snowden left America three weeks ago to hide out here in Hong Kong.

(BEGIN VIDEO CLIP)

EDWARD SNOWDEN, SOURCE OF LEAKED NSA INTELLIGENCE: Hong Kong has a strong tradition of free speech. People think, oh, China, great firewall. Mainland China does have significant restrictions on free speech, but the Hong Kong -- the people of Hong Kong have a long tradition of protesting in the streets, of making their views known. Internet is not filtered here no more so than any other western government. And I believe that the Hong Kong government is actually independent in relation to a lot of other leading western governments.

(END VIDEO CLIP)

LU STOUT: Edward Snowden there.

Now let's look at the pros and cons of Snowden's selection.

Now Hong Kong is a special administrative region of China. Under the one country, two systems agreement it enjoys more freedom than the mainland. And the semi-autonomous government tolerates political dissent.

But the freedom of speech Snowden praised, that has come under question in recent years. Now critics say that the mainland is interfering with Hong Kong's independent press. And unlike China, the former British colony has an extradition treaty with the United States. Hong Kong could reject the request if it's deemed to be politically motivated.

Now top U.S. lawmakers say that Snowden should be prosecuted. And the Justice Department has officially launched an investigation.

Brianna Keilar has more.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT (voice-over): As Edward Snowden stunned the world with his admission, the administration intensified calls to hunt down the leaker of an NSA surveillance program.

Sunday night, the Justice Department formally announced they were launching an investigation into the unauthorized disclosure of classified information. President Obama returning from California after a two-day mini-summit with the Chinese president had no comment. But he recently made clear he's upset by the state of high profile leaks.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I don't welcome leaks, because there's a reason why these programs are classified.

KEILAR: Making the Sunday talk show rounds, the chairman of the House Intelligence Committee said the leaks don't give a full picture of the NSA program.

REP. MIKE ROGERS (R), MICHIGAN: I know the reporter that you interviewed, Greenwald says that he's got it all and now is an expert on the program. He doesn't have a clue how this thing works. Neither did the person who released just enough information to literally be dangerous.

KEILAR: Something the former NSA chief agreed with.

GEN. MICHAEL HAYDEN, FORMER NSA/CIA DIRECTOR: There are no records of abuse under President Bush, under President Obama.

KEILAR: But how the NSA gathers its information and what it does with the data remains a point of contention.

SEN. MARK UDALL (D), COLORADO: I'm not convinced the collection of this vast trove of data has led to disruption of plots.

KEILAR: And on Capitol Hill, the fight is just beginning.

SEN. RAND PAUL (R), KENTUCKY: Don't troll through a billion phone records every day. That is unconstitutional. It invades our privacy. And I'm going to be seeing if I can challenge this at the Supreme Court level.

KEILAR: Brianna Keilar, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Now, no charges have been filed against Snowden just let.

Now let's bring in Anna Coren now from the Hong Kong harbor front. And Anna, first the big question, the fundamental one, why did he do it?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Well, Ed Snowden says he couldn't have this on his conscience any longer, that is what he told The Guardian newspaper that he complained about abuses that he had witnessed, they weren't addressed, and that is why he has gone public.

Now he has, however, flown 14 hours and halfway around the world to, I guess, release this information, this highly sensitive information, but he says that the NSA, the National Security Agency, has developed this built- in infrastructure that can intercept almost everything and that it lies about the scope of its surveillance of American citizens.

Let's have a listen to what he told The Guardian newspaper.

(BEGIN VIDEO CLIP)

SNOWDEN: Even if you're not doing anything wrong, you're being watched and recorded. And the storage capability of these systems increases every year consistently by orders of magnitude to where it's getting to the point you don't have to have done anything wrong, you simply have to eventually fall under suspicion from somebody even by a wrong call.

(END VIDEO CLIP)

COREN: So as Snowden says, he wants to inform the public, he wants to trigger debate and for the system to become transparent.

He also says that he doesn't want media attention, that he doesn't want to become the story. But, Kristie, I can assure you that everybody in the world right now is looking for Ed Snowden.

LU STOUT: Everyone is, indeed, looking for him. Where is he?

COREN: Well, we know that he is here in Hong Kong. Our producers found a hotel we believe that he was staying in. The reception staff said that an Ed Snowden had been staying there for the past three weeks and had checked out at noon. So that is the information that we have received so far.

Where he is now, we don't know. This is a city of 7 million people and hundreds if not thousands of hotels, so he could be anywhere.

Why Hong Kong? That is the question that everybody is asking. And certainly it is an interesting point, why travel halfway around the world to really release this highly sensitive information here.

Well, we spoke to an immigration lawyer, Patricia Ho a little bit earlier today. And she believes that China is the key factor. Take a listen.

(BEGIN VIDEO CLIP)

PATRICIA HO, IMMIGRATION LAWYER: Hong Kong itself has a terrible system for protecting asylum seekers in general, but at the same time in his case in particular if he is wishing to prevent extradition to America, the Chinese government can intervene and maybe, perhaps, he considers that the Chinese government would be interested in doing that.

(END VIDEO CLIP)

COREN: Now, it's worth noting, Kristie, that Hong Kong and America share a very healthy extradition treaty. It's not uncommon for people here in Hong Kong to be extradited right back to the United States, however if this was in China's interests to intervene, it has the veto power to stop it.

So if China wants this information, which of course is speculation at this stage, but you know he is holding onto a treasure trove of highly sensitive U.S. intelligence information that I think there is no doubt China would want.

LU STOUT: All right, Anna Coren reporting live on the story for us. Thank you very much indeed for that, Anna.

And there are still many questions about the monitoring program that Snowden revealed. Now the director of National intelligence took the unusual step of declassifying some information about PRISM. It says U.S. citizens or residents cannot be intentionally targeted. And it says that permission is still needed to target people overseas.

But Snowden says just collecting the information is the problem.

(BEGIN VIDEO CLIP)

SNOWDEN: The NSA specifically targets the communications of everyone. It ingests them by default. It collects them in its system and it filters them and it analyzes them and it measures them and it stores them for periods of time simply because that's the easiest, most efficient and most valuable way to achieve these ends.

So while they may be intending to target someone associated with a foreign government, or someone that they suspect of terrorism, they're collecting your communications to do so.

(END VIDEO CLIP)

LU STOUT: Now, the U.S. government says it does not unilaterally obtain information from the servers of U.S. providers. And these companies have denied knowledge of PRISM.

Now the Guardian has published a new slide it says comes from the NSA which says collection directly from the servers. But there is debate as to what that means, exactly.

Now you are watching News Stream. And coming up right here on the program, a nation in prayer. And South Africa's national hero Nelson Mandela spends a third day in hospital.

Also, as anti-government protests rage on in Turkey, its prime minister delivers a strong warning.

And tech's changing landscape as Apple struggles to stay ahead.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories on the show today.

Now we started with the man who leaked details on an NSA surveillance program. And later, we'll kick off our series looking at superheroes ahead of the release of the new Superman movie.

But now to the status of a South African icon, Nelson Mandela. Now the South African government says he is still in serious condition after the former president was taken to a hospital in Pretoria on Saturday for a recurring lung infection.

Now, the 94-year-old has been in and out of hospital in recent years. And this is his fourth time there since December.

Our Errol Barnett joins us now from the Pretoria Heart Hospital where Mandela is being treated.

And Errol, what is the latest word on his condition?

ERROL BARNETT, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, the latest word from the office of the presidency here is that Nelson Mandela's health remains unchanged. so that tells us as you've just mentioned that he is still being treated for this recurring lung infection that has brought him to the hospital some four times over the past seven months. It means that doctors still see his status as serious, but stable.

And there's a bit of good and bad news in there. It means that after Nelson Mandela's health took a turn for the worse at the end of last week and was brought into this hospital -- remember, he does enjoy the attention of a 24 hour medical team -- this medical team was able to stabilize him.

But unfortunately the bad news there is that since Saturday, that's all doctors have been able to do. His condition has not improved.

Now we've seen two of his daughters on Sunday come and visit the former president here at hospital. We also understand his wife Graca Machel has canceled an international trip she was meant to take this weekend. She is likely at his bedside.

But the interesting thing, Kristie, is that this is all happened while there's a larger conversation taking place in South Africa from close friends of Nelson Mandela, Andrew Mlangeni, for example, a man who served time on Robben Island with him was quoted in newspaper this weekend as saying it's distressing to see Madiba, as he's called, in an out of hospital these last few months. Perhaps the family should let him go. And then South Africans would feel more comfortable letting him go.

A highly taboo topic in South Africa, and really many African cultures, you don't speak about the impending death of a respected elder. So to hear that now is quite a contrast to conversations we would have heard even six months ago.

LU STOUT: Yeah, that's for certain. As you said that he is in serious, but stable condition. His condition has not improved. What is the general level of concern there in South Africa? We know that Mandela is 94-years-old. He is frail. He has had this recurring lung condition. Just how concerned are people there?

BARNETT: Well, people are very concerned. I mean, Nelson Mandela is to turn 95 next month. This is a man who has had a remarkable life. He, in fact, contracted tuberculosis while serving time on Robben Island, the reason that he's had some many respiratory issues, and there is -- he is receiving the best medical treatment possible.

He had gall stones removed in December. He had fluid removed from his lungs and was treated for pneumonia this past March. But in the images and video that we see of Nelson Mandela, the most recent being President Jacob Zuma visiting his home in late April, he is obviously a man who is slowly slipping away. He seems disconnected from what's happening around him. Many of his friends and family say that spark, that charm, that cheeky wit that Nelsom Mandela is known for is missing.

And he is mortal like the rest of us and cannot possibly live forever.

So for South Africans, they want to respect the fact that he is now a private citizen, but his family really needs to be by his side.

But also as far as a national sentiment is concerned, they now need to search for a new leader, a new individual who could represent the hope and vision for a country, no small feat, but that just speaks to how remarkable Nelson Mandela really was and still is.

LU STOUT: And Errol, there are concerns worldwide about the health and condition of Nelson Mandela. Could you describe the international media presence there outside the hospital in Pretoria and just how much information hospital authorities are willing to offer?

BARNETT: Yeah, Kristie. This happens each and every time we go through one of these, you know, what we call Mandela health scares. You get international media here. I've seen outlets from the United States, from Europe, from Asia, all with a presence here on this street. In fact, having nothing else to do, but to talk to all of us, because the government is very careful in how much information they do and do not provide.

So the appetite internationally is quite remarkable for a man who has stepped out of the public eye almost a decade ago. And it speaks to how interested people are to know about the current health of Nelson Mandela.

But they, as we are getting -- the only thing we can confirm is coming from the government. And because the ANC even received a bit of backlash for going to Nelson Mandela's home in April seeming to have a photo opportunity next to an ailing individual, they are careful not to seem as if they are benefiting in any way from this publicity.

So a lot of attention and very little information kind of characterizes these scenes as we wait to hear how the beloved Nelson Mandeal is doing.

LU STOUT: Yeah, thank you for the update. And also thank you for giving that added bit of political context as we air to our viewers worldwide those photos back in April of Nelson Mandela.

Errol Barnett joining us live from Pretoria, thank you.

Now anti-government protests in Turkey have entered their 11th day despite a warning from the country's prime minister. Now in a speech on Sunday, Recep Tayyip Erdogan told demonstrators his patience does have limits.

(BEGIN VIDEO CLIP)

RECEP TAYYIP ERDOGAN, TURKISH PRIME MINISTER (through translator): We have been patient. We will be patient, but even patience has an end. And look, the people who are hiding behind the demonstrators and seeking to do politics from it must first learn what politics is. We are not the ones who fall for the provocations on the streets, but they are.

(END VIDEO CLIP)

LU STOUT: Now, Prime Minister Erdogan, he made this speech at a pro- government rally. And there are expected to be more this week.

Now, our Nick Paton Walsh is monitoring developments. And he joins us now live from Istanbul. And first, Nick, have you seen more protests today?

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: Well, as usual at this time of day the crowd behind me in Taksim Square is small size. There is that hardcore group staying in the Gezi Park, conservationists camped in there. We occasionally see crowds ebb and flow on Taksim itself. But it's not really until the evening when things pick up normally.

Last night in Ankara, there were pictures televised of clashes between protesters and police tear-gassed and water cannons used there. But we've seen very little evidence of clashes here in central Taksim, quite a number of days now, the atmosphere rowdy, festive this weekend, characterized by very large crowds of football fans turning up almost to celebrate the identity to occupy this area for quite so long, but of course that question is how long can this go on for? Prime Minister Erdogan is clear he did not have limitless patience at the weekend.

And on his little campaign tour, six speeches in one day, four of them alone in Ankara, the nation's capital. Two rallies that were clearly in support of him, raising questions, of course, if the days go by we are expecting pro-Erdogan rallies in Istanbul in the capital at the weekend. Fears of course -- nobody wants to see them get too close to opposition rallies in case there's confrontation.

But right now, there seem to be a waiting game, people waiting to see how protesters can endure here, but also waiting to see when prime minister Erdogan will make his next step. Is he going to move for any kind of conciliation here -- Kristie.

LU STOUT: It is a waiting game. And today is the 11th day of anti- government protests there in Turkey. Do you think the anti-government protesters have become more organized as each day goes on? And do they have now a clear list of demands?

WALSH: Well, the presence here is increasingly sophisticated, it's fair to say. I mean, I've seen long human chains of people faring in supplies of water. There's a walkie-talkie system inside the Gezi Park encampment. There's even a library we've just been to see where you can get books out, no fine or ticket system there. There's medical assistance, a seemingly kind of small community in almost utopia forming, even a professor giving a maths lesson on some steps over here.

So, a real sort of small society forming inside Gezi Park. The people involved in that certainly of an alternative perspective politically.

There has been the Taksim Platform that put forward its list of demands including the dismissal of everybody involved in the protest violence. The Gezi stays as it is. Most of that seems to be rejected out of hand by Prime Minister Erdogan, particularly in the tone of his last speeches.

So the question really is as this protest gets more entrenched, seems to get more organized not through political leadership, but just through its presence here and the sustainability of that, the question is who makes the move towards reconciliation here, where's the compromise? What will the prime minister do to try to get people to go home voluntarily or will he do nothing at all? Will he simply wait for central Istanbul to get tired of this presence, the inconvenience, and sometimes even the unsanitary smell that it causes, what for that to happen and then perhaps even send the police in again.

Nobody really knows, but that's the tension in the background here, Kristie.

LU STOUT: All right, Nick Paton Walsh and what to look out for. Nick joining us live from Istanbul, thank you.

Now people in the Afghan capital of Kabul were woken by the sound of explosions and gunfire Monday morning. And police say insurgent fighters launched a pre-dawn attack. Two suicide bombers blew themselves up at a building at the Kabul international airport. And five gunmen then stormed the structure, exchanging fire with security forces.

Now the fight, it went on for about four hours, but in the end, all the attackers were killed. Now two civilians were injured and the group Hezb-i Islami claimed responsibility.

Now China's new leaders have promised to crack down on corruption and reform the economy. And still to come, my conversation with former U.S. Treasury Secretary Hank Paulson on what he thinks China needs to do to continue its economic growth while maintaining stability.

You're watching News Stream.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now the Hollywood blockbuster season is heating up and so is a series of superhero movies. And we'll be looking at the superhero trend all this week on CNN. And first up is the franchise that perhaps started it all: Superman. Now the latest installment, Man of Steel, debuts in New York on Monday. And Neil Curry looks at why comic book heroes are just so popular.

(BEGIN VIDEOTAPE)

NEIL CURRY, CNN CORRESPONDENT: Comic book heroes, our fascination with them can begin from a very early age and can last a lifetime.

STAN LEE, CEO, POW! ENTERTAINMENT: The thing about superhero stories, they're like fairy tales for grown-ups. Every child loved reading fairy tales when he or she was a child. They were stories about monsters and witches and giants and magicians.

Well, superhero stories have that same flavor, but they're done for adults as well as for children.

CURRY: The characters he helped to create for Marvel Comics more than half a century ago have stood the test of time. He's the prime reason this person is dressed like this. UNIDENTIFIED MALE: I picked Spider-Man, because I've always been a fan of Spider-Man. He's a real guy, like, you know, he's got problems like everyone else does and, you know, he has to deal with it all and being a superhero at the same time.

CURRY: If, as has been said, clothes make the man, then presumably superhero clothes make the Superman, or at least the Iron Man.

UNIDENTIFIED FEMALE: How long did it take you to do this costume?

UNIDENTIFIED MALE: About approximately 300 hours added together.

UNIDENTIFIED MALE: Everything goes beyond just the comic book now, because it's not just a book, it's a comic book that's tied in with a video game, that's tied in with a movie, and it broadens the reach. Thousands of people are exposed to comic books through movies as opposed to through comic books for the movie, it's going the other way. They enjoy the movie, then they get the comic book.

CURRY: Comic book sales in North America alone were close to half a billion dollars last year. So far this year, they're up almost 20 percent.

SHARAD DEVARAJAN, CEO, GRAPHIC INDIA: A comic book is essentially with an unlimited budget. It's a place where you level the playing field, where a creator just with a pencil and pen can kind of create worlds imaginable, destroy those worlds and recreate them in three pages.

CURRY: The other end of the playing field stand the movie makers, armed with $100 million budgets. Their pen and pencils replaced by sophisticated team of special effects. They, too, can create, destroy, and recreate worlds not in three pages but in 3D.

JOSS WHEDON, DIRECTOR: I think Marvel Comics in general, you know, just they're telling stories of, you know, kings and betrayal and, you know, they're the grandest soaps there are.

CHRIS HEWITT, EMPIRE MAGAZINE: The Avengers is the third biggest film of all time, $1.5 billion worldwide. And Iron Man 3 is probably going to be the fourth biggest film of all-time around about $1.3 billion worldwide. And I think Man of Steel has the potential to out do maybe both of them.

I think the saturation point is somewhere away yet.

SHANE BLACK, DIRECTOR: It depends on the cleverness of the film makers. I think the innovation that we see and the degree to which people continue to up the stakes, change it up, use different approaches, there's always going to be another superhero move.

CURRY: And he's not wrong. In this case, the superhero in question is this fellow.

UNIDENTIFIED MALE: My father believed if the world found out who I really was, they'd reject me.

CURRY: 75 years after D.C. Comics introduced Superman to the world, he's being reintroduced to movie audiences as Man of Steel. HEWITT: I think the superhero genre is so popular today, because quite simply this is the new mythology for us. These people, superheroes, are our Greek gods, they're our Roman gods. And they're just very, very cool.

CURRY: So the gods smile, a printing press rolls, and a new superhero adventure will soon be delivered to our doors and comic stores.

Neil Curry, CNN.

(END VIDEOTAPE)

LU STOUT: Now, Man of Steel, it opens June 14 in the U.S. Now the film is under Warner Brothers, which is owned by CNN's parent company Time Warner.

And still to come right here on News Stream, we speak to the former U.S. Treasury Secretary Hank Paulson on the future of China and how stability can be reached through speeding up reform.

And what now for Apple? We look at how the high tech company can once again regain its position as the industry leader.

(COMMERCIAL BREAK)

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

Now the man who exposed confidential U.S. intelligence programs has come forward saying he is not afraid to declare who he is or what he's done. Now Edward Snowden, an American computer technician was the source for two explosive newspaper reports revealing the scope of secret eavesdropping and data gathering by the U.S. government. In an interview with The Guardian, Snowden explained why he decided to speak out.

(BEGIN VIDEO CLIP)

EDWARD SNOWDEN, NSA LEAKER: You recognize that some of these things are actually abuses. And when you talk to people about them in a place like this where this is the normal state of business, people tend not to take them very seriously and move on from them. But over time, that awareness of wrongdoing sort of builds up. And you feel compelled to talk about it.

The greatest fear that I have regarding the outcome for America of these disclosure is that nothing will change.

(END VIDEO CLIP)

LU STOUT: Edward Snowden there.

Now in South Africa, the president's office says Nelson Mandela remains in serious, but stable condition. He was admitted to hospital with a lung infection. Now the statement asks South Africans to pray for the man they know as Madiba. Now it was the first update we've received in more than 48 hours.

In Kabul, seven militants have been killed after they launched an attack near the international airport. Now gunmen briefly took over a five story building near the airport. The Taliban have claimed responsibility. They say Americans using the airport were the intended target.

Engineers in China are preparing for their next manned space mission in a program to establish an orbiting space station. The Shenzhou 10 spaceship is due to blast off on Tuesday with a crew of three from a launchpad in a remote part of the Gobi Desert.

Now, the leaders of the U.S. and China wrapped up a landmark summit over the weekend. And it ended without a breakthrough on the thorny subject of cyber security, but that's just one pressing issue in U.S.-China relations.

Now at the Futune Global Forum in Chengdu, I sat down with a former U.S. Treasury Secretary and CEO of Goldman Sachs Henry Paulson, now chairman of the Paulson Institute.

Now he has visited and negotiated with Chinese officials over the last few decades. And I started by asking him what China needs to do to change from a nation of savers to a nation of investors.

(BEGIN VIDEOTAPE)

HENRY PAULSON, FRM. U.S. TREASURY SECRETARY: A Chinese saver have very few options. They can put money in a bank savings account where they didn't even earn the rate of inflation, or they could invest in real estate. But there weren't good options. And so Chinese obviously save a lot. They need to save a lot, because it's precautionary savings. They don't have the same sort of social safety nets we have in the United States. They're the mirror image. We have ones we can't afford, and they have ones that they can't afford to continue to have, because they need to be more generous.

But having capital markets, world class capital markets -- and they've come a long way -- will make a big difference in helping the savers get the kinds of returns they need to save.

LU STOUT: And can the Chinese carry out this economic reform drive without liberalizing political reform?

PAULSON: The lens that the Chinese look through is the one of stability, maximizing stability. So whether I'm talking about economic reform or political reform, I say -- and I sincerely believe -- that the path which is going to ensure the greatest stability is going to be speeding up political reform, speeding up economic reform. There's more risk in going too slow than there is in going too fast.

LU STOUT: Now there's long been a view in the west that you engage China. You bring -- help bring prosperity to China, encourage economic reform, that will lead to political reform, that could lead to democracy. Do you agree with that? Or is that just a pipe dream?

PAULSON: In the time I've been coming to China, the lives of the Chinese people, the personal liberties are all greater. It's not easy for an economy this size to rebalance its -- its growth. It just plain isn't.

But I think the key test is going to be what things do they get done early? And I'm optimistic that financial market reform will get done early, because that's the key to so many things. But if it doesn't get done relatively early, than I think that's also a sign that won't be very encouraging.

(END VIDEOTAPE)

LU STOUT: All right, Henry Paulson there speaking to me in Chengdu at the Fortune Global Forum saying he is optimistic that financial market reform will get done and get done early.

Now something else we're watching today, Apple is set to unveil a new look for the iPhone and iPad software at their annual developers conference in just a few hours.

Now reports say that Apple's design chief is changing the look of the whole iOS operating system. But how influential will Apple's new designs be? Now Dan Simon reports on the challenges facing the once dominant company.

(BEGIN VIDEOTAPE)

STEVE JOBS: And we are calling it iPhone.

DAN SIMON, CNN CORRESPONDENT (voice-over): When Steve Jobs unveiled the original iPhone, it was years ahead of what anybody else was doing. Six years later, the landscape has dramatically changed.

Can they be as dominant as they once were?

BOB O'DONNELL, VICE PRESIDENT, IDC: I'm not sure they can be as dominant as they once were. I don't think anybody can be quite as dominant as Apple once was. I think we see the pie of influence is spreading.

SIMON: That's why today is so important for the company to show consumers that Apple is just as important as ever. First off, in the highlight of the event, they'll be showing off the latest operating system that powers your i devices. Some of which have become stale according to technology analyst like Bob O'Donnell.

O'DONNELL: So, the things that they innovated on are now standard and common place. The trick is, can they come up with new things or continue to evolve their existing products and ways that continue to completely set them apart?

SIMON: Apple is also expected to introduce a new music streaming service to compete more directly with services like Pandora and Spotify. Also expect updated laptops. But a new phone and tablet are not expected until later in the year, products they need to regain steam.

UNIDENTIFIED FEMALE: Oh, wow. Can I share, too?

UNIDENTIFIED FEMALE: No, yours doesn't do that.

SIMON: Samsung has stolen a lot of the buzz with its clever commercials on space also once dominated by Apple. Wall Street hasn't been kind as Apple's growth has slowed. Its stock is trading about 35 percent lower from its 52-week high. Apple CEO, Tim Cook, was recently pressed about the company's fortunes.

UNIDENTIFIED MALE: There's a sense that you may have lost your cool. That somebody else has got the cool, that Samsung has got the cool. Is Apple in trouble?

TIM COOK, APPLE CEO: Is Apple in trouble? Absolutely not.

SIMON: Dan Simon, CNN, San Francisco.

(END VIDEOTAPE)

LU STOUT: And Apple isn't the only company with a big announcement to make today. Now this is also the week that the video game industry gets together to show off their latest products at the E3 show in Los Angeles.

Now half an hour before Apple's event, Microsoft is due to show off the first games for the Xbox One. Now Microsoft showed off the TV functions of the console when they unveiled it a few weeks ago, but you get to see the first games on Monday.

And a few hours after Microsoft, Sony is due to talk about Playstation 4. And while Sony has showed P is for games, we don't actually know what the console will look like just yet. And we'll have much more on E3 all week right here on News Stream.

Now coming up right here on News Stream, face your fears. We dive into the world of extreme big wave surfing where life is about running toward the storm.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now in the world of extreme big wave surfing, it is about raising the bar one wave at a time. And for many surfers, the chase for the big swells is a constant, almost obsessive pursuit. Now in our Art of Movement segment this week, Nick Glass introduces us to one surfer who has a life dedicated to pushing the limits.

(BEGIN VIDEOTAPE)

NICK GLASS, CNN CORRESPONDENT: The Brazilian Maya Gabeira suited up and ready for a brutal Atlantic challenge. The year, 2009. The place, Dungeons off South Africa. And a terrifying wave 45 foot high, the highest ever ridden by any woman.

Today, she lives by the beach in California, but is always looking out for the next big wave wherever it may be.

MAYA GABEIRA, BIG WAVE SURFER: I'm looking into this swell to possibly fly into Tahiti this weekend.

GLASS: Storms are now so closely monitored that big waves can be tracked as they develop.

GABEIRA: 16 second intervals between one wave and the other in the ocean, that's very important information, here gives you the waves in meters, the biggest of the swell could be 4.5 meters.

GLASS: Gabeira simply lives for the big waves, is sponsored to ride them.

GABEIRA: Being a part of that crazy moment in hard on control where most harbors shut down and everyone goes to shore. I've had times where I was actually just really scared. I wanted it to happen as quick as possible. And then I have times where, you know, I can completely recall the whole ride. So it's really -- it's really intense.

KELLY SLATER, 11 TIME WORLD SURFING CHAMPION: I have a lot of friends that their whole goal is to surf the biggest wave in the world, you know, as big as it gets, as crazy and scary it gets, they're ready for it.

GLASS: For surfers, it's all about those special fleeting moments in the water when it all comes together -- body, board, and perfect wave, moments, movements, measurable in heartbeats and seconds, but lingering in the memory for a lifetime.

(END VIDEOTAPE)

LU STOUT: Great series there.

Now you're watching News Stream. And up next, he spent eight months out of action, but now he is an eight-time French Open champion. Coming up on the program, we hear from Rafael Nadal whose latest win in Paris also lands him in the record books.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And let's get an update on the two major river floods in Europe. Mari Ramos is at the world weather center. She joins us now -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, Kristie. Heavy rain over the weekend, really didn't help things out for people along these areas of these two major rivers that you mentioned, the Danube and the Elbe and all of its tributaries that continue to flood across the region.

I want to start you off giving you an update with Budapest. Budapest threatened, of course, by the Danube. The rivers runs right in the middle of the city. And the flood waters have peaked now in Budapest.

Now it got to 8.9 meters. The city is protected up to 9.3, so you can see how close that actually was.

And the river is expected to go down now in levels slowly. It's normal level about 6.5 meters, but that won't happen until probably the middle or late June. That just gives you an example of how intense the river flooding there has been.

This is a picture also along the Danube. And this is from Deggendorf in Bavaria, in southern Germany. And I zoomed into this picture, because you see that line right there? You see it right on the wall? This is how high the water actually went. And you can see a man walking by there, that kind of gives you an example, or just kind of help us understand how high the water did get along many of these areas.

This is a car dealership, just another example of the untold millions of dollars in losses that they're going to have here. That car completely covered, obviously ruined. You can't fix cars once they're completely submerged like that, or not at least what their value was.

But you have factories, businesses, schools, all kinds of things that have been affected by the flooding.

Now as we continue to move to areas farther to the -- farther downstream, I should say -- that crest, like I said, has already moved past Budapest. And there, they're starting to kind of clean up a little bit from what happened. But it's going to take a long time for that water to go down.

As we continue moving farther south, we can see right over here that there are still millions of people along the way of this river, thousands of kilometers still to follow. So Serbia, Romania, they are on alert now as the river continues to get higher and higher into those areas. And it probably won't get to Belgrade as we head into next week. So we still have a long ways to go, or maybe weekend or early next week.

The Elbe on the other hand is continuing to move northward. You can see right over here where the crest is just past this area here to the north, but it still has a long way to go until it reaches the sea, probably won't get to Hamburg until -- as we head into the weekend or early next week into those areas as well.

I want to show you this picture of what it looks like from space across the region. This is a month ago along the Elbe River. Can you even see it? Barely even visible here a month ago in these areas. And now, there it is, right there, you can see a little bit better. When we zoom in a little more and go forward in time, this is what it looked like on Saturday and look at these difference of colors right over here. That's an example of how wide, or how much water actually has gone in this area right there, the water expanded about 10 kilometers, that's very significant.

Most of the areas that we see flooded right along the river banks, some homes, some businesses, but also, Kristie, we're seeing a lot of agriculture land that has been affected.

And of course everybody is talking has this anything to do with climate change. And I've got to tell you, you can't associate one advance with climate change, per se. But when we talk about our changing Earth and our changing weather patterns, with climate change, with the Earth warming, events like this could become more common, events where you have extremely heavy rainfall, could become more common, so we could see events like this more and more in the future. So we'll have to wait and see what the experts say about that.

I want to show you a different kind of image. And if we can go to the pictures from China -- I don't know if we can do that -- but the flooding that we've seen in China is different than the flooding that we've seen in Europe. And the reason it's different is because the flooding that you have along the Elbe and the Danube is flooding that is happening relatively slowly. We had very heavy rainfall, the rivers slowly flooded. They are slowly rising as they move along these areas and then we're starting to see them slowly go down.

This flooding that you're seeing right here in China is flooding that is happening because of torrential downpours, it's flash flooding. It happens very quickly. It traps people in their home. And that's the kind rescue that you're seeing here. A story that is being repeated over and over, the flooding that we have across southern parts of China right now, you're going to see that rain move farther to the south back over into southeastern parts of Asia and of course Southeast Asia. We'll continue to monitor that as well. You can see it here on the satellite image.

Back to you, Kristie.

LU STOUT: Wow, a tale of two floods in two very different corners of the world. And both very, very intense. Mari Ramos with the very latest. Thank you.

Now we're going to talk sports now. And this man is celebrating his record eighth French Open title. Rafael Nadal beat fellow Spaniard David Ferrer in straight sets, 6-3, 6-2, 6-3. It is his 12th career grand slam title and it makes him the first man in history to win the same tournament eight years.

Now this victory was particularly sweet, because Nadal had just returned to the game in February after being sidelined for months with a knee injury. And World Sport's Amanda Davies sat down with him after his win.

(BEGIN VIDEOTAPE)

AMANDA DAVIES, CNN SPORTS CORRESPONDENT: It's a phrase we're getting quite used to, Rafael Nadal French Open champion and he's done it again. I'm pleased to say I'm joined by the eight-time Roland Garros champion. Congratulations.

After everything you've been through over the last 12 months with your injury, what is your overriding feeling now?

RAFAEL NADAL, EIGHT-TIME FRENCH OPEN CHAMPION: Well, thank you very much. Yes, just very special for me to have this trophy with me in all time. The special -- the feeling is, you know, very emotional. A lot of people supported me a lot and helping me a lot during this period of time. And I receive hundreds of messages that give me a lot of positive energy and helped me a lot.

So I can just say thank you very much everybody who really supported me. Because of them, I have this trophy with me.

DAVIES: And how difficult was it playing David Ferrer? A friend, a teammate, somebody to for him it was his biggest moment of his career?

NADAL: We are professional tennis players. We are competitors. Both of us wanted to win. David is a great -- good friend. And he's a great person, a great example for the kids. He's a fighter. He's a worker. And he deserved to be where he is today. And I'm happy for him to be -- to he was in front of me in the final.

Sorry for him today, but I really hope that he will have another chances in the future.

DAVIES: I must just ask you about the protester who came onto the court. What was your reaction? How did it affect you?

NADAL: Well, this -- no, it didn't affect me. You know, I was a little bit scared at the beginning, because I didn't see -- you know, everything is very quick out there, you know, and I saw just somebody coming with some fires, so I was a little bit scared at the beginning. But it's very strange that was impossible -- impossible to predict.

And I just can say thank you very much for the security guys. They did amazing work and I really felt safe.

DAVIES: Whatever happened, it doesn't take away from a phenomenal achievement. Rafa Nadal with Amanda Davies for CNN in Paris.

(END VIDEOTAPE)

LU STOUT: And that eighth French Open win has propelled Nadal ever higher into the list of tennis all-time greats. Nadal has now won 12 grand slams, that is more than Andre Agassi, more than Bjorn Borg, and more than Rod Lever. And he's now level with Roy Emmerson and behind just two men: Pete Sampras and Roger Federer.

Now Brazil is counting down to the 2014 World Cup and the 2016 Summer Olympics. And as it makes preparations, the large price tag along with an economic slowdown in the country has some asking whether the games actually will do more harm than good. And Paula Newton reports from Rio.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: You've heard the one about Brazil, right? We'll forever be the land of tomorrow? Well, time to put that tired cliche to rest.

From the seemingly robust economy to the drop in crime even in the Brazilian shanty towns call Favelas to the new and growing middle class. Many people around the world see Brazil as the country to be in now. People like Luis Vuitton, Cache, Gucci.

In terms of a luxury brands, how many want to get into this mall?

GABRIEL PALUMBO, DIRECTOR, VILLAGE MALL: In terms of development, I guess Brazil is on the top of the wave at the moment.

NEWTON: But for Brazil, riding that wave will soon mean proving it can meet expectations.

This country is now consumed by staging the football World Cup next year and the Summer Olympics in 2016.

Brazilians are proud of it.

RENATO FRAGELLI CARDOSO, ECONOMIST: They tend to be, but my question is are they really aware of the missed opportunities?

NEWTON: The truth is, economic growth has slowed significantly in the last couple of years. And some worry rather than helping the country, the World Cup and Olympics will cost Brazil dearly. And that money might be better spent on infrastructure.

CARDOSO: This new middle class will start thinking about the future. We must have some strategies to grow in the long run. It's not a question of just distributing the income we already have, we have to increase the income.

NEWTON: To do that, Brazil will need more investment, less corruption, and a continued resolve to lift people out of poverty and into the Middle Class.

IGNACIO CANO, SOCIOLOGIST: I think this is the crucial element of this country. This country was based on extreme inequality -- slaves on the one hand, and masters on the other. We can change that and we can reduce the gap. I think other things will happen.

NEWTON: This is an eternally resilient place with optimism to spare. And there are some good reasons to believe Brazil may finally be catching up with its destiny.

Paula Newton, CNN, Rio de Janeiro.

(END VIDEOTAPE)

LU STOUT: And this week, our month long roadtrip to Brazil continues as we examine why the country is on the move in travel, culture, and sport. We have special coverage in World Business Today. It's coming up in just a few minutes.

And just before we go, on Saturday, millions of people tuned into the season finale of Britain's Got Talent to witness this. Judge Simon Cowell getting egged on live TV.

Now according to Entertainment Weekly, the woman was in the backup orchestra for the contestants who continued sitting throughout the egg throwing. Now at least one egg may have hit the mark. Cowell later took off his jacket. Simon Cowell is known as a rather opinionated music industry producer and judge. It's not the first time he's had something thrown at him.

On Sunday, he tweeted this, quote, "I really don't like eggs."

Now compare that reaction to the one that John Malkovich, the actor got. Now some offstage heroics prompted a crowd in Toronto to give the actor a standing ovation. He is starring in a play in the Canadian city, but he played a leading role in a real-life drama last week. An American tourist says he tripped and he fell seriously slashing his throat on some scaffolding and he says John Malkovich calmly took charge, applying pressure to the wound with his scarf to stem the bleeding.

A doorman called police and the rest, as they say, is showbiz history.

And that is News Stream, but the news continues at CNN. World Business Today is next.

END