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Indian Principal Arrested in Food Poisoning Scandal; Pope Francis Visits Aparacida; U.S. Secretary of State Announces Israeli-Palestinian Peace Talks; China Imposes Five-Year Ban On Government Building Construction; William and Kate: Modern Parents?; Apple's Profit Margins Shrink On Increased Sales of Cheaper Products

Aired July 24, 2013 - 08:00   ET


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

Now Indian police arrest the principal of a school where 23 students died after eating school meals.

A U.S. politician in trouble for sending explicit text messages admits that he did it again.

And we'll tell you what's behind Apple's drop in profits.

Now police in India have arrested the principal of the school that served poisoned food to students, killing 23 of them. The meals are part of a free lunch program at a school in northern India's Bihar State. And tests later showed pesticide in the food and cooking oil used to prepare the meal.

Now let's go live now to CNN's Sumnima Udas who is following developments for us from New Delhi. And Sumnima, it took awhile to track her down, but tell us what led to the arrest?

SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT: Kristie, the principal of that school really has been the most wanted person, or woman in that state for quite some time. But after eight days in hiding, the head mistress - her name is Meena Kumari actually was on her way to the court to surrender when police, the local police, got wind of what she was doing and arrested her before she made it to the court.

Now what will happen is they will be questioning her tonight. And they will be presenting her in front of the local court tomorrow.

Now, of course, she is the only - she and the cook were the only two adults involved in this tragedy. All of the rest were children. The police have already questioned the cook. The cook had said to the police that she had suspected there was something smell - the smell was strange of that cooking oil that she had used. And she had expressed a concern to the head mistress, but the head mistress told her to use that oil anyway.

So the police will now be questioning the head mistress as to why exactly this happened, how the oil got there, and how the pesticides got into the oil in the first place. And most importantly whether any of this was deliberate or accidental.

LU STOUT: Yeah, the headmistress or the principal, again has been arrested. She'll be facing police questioning. Her husband is still on the run. Do we know if any other arrests have been made?

UDAS: No other arrests have been made so far, Kristie. But as you mentioned, the police all still looking for the husband. He is not one of the accused, but they would still like to question him about - you know, about the case as to how the pesticides got there, if he knows anything more about the pesticides and the cooking oil that was used in that meal.

LU STOUT: Now news of the arrest, it must be welcome news to the families of the victims. Now last week, we know that when you were reporting there in Bihar state, the doctors, they were trying so hard to save the two dozen poisoned children. Any update on their condition?

UDAS: Those children, actually, are doing fine. There were two dozen of them. And then of course one of the cooks, as well. They were all in that hospital for the past eight days. And they are still there. And they are doing fine.

Of course, when they were brought there eight days ago, they were - a lot of them were vomiting. There were - some of them were fainting right then. There was a lot of froth coming out of their mouth. And that's how the police actually detected - sorry, the doctors detected that there was something strange here, that this was just not a normal food poisoning story, that there was some possibly some sort of chemical involved. And now we know that this compound of the chemical, or pesticide called organophosphorous was inside that cooking oil, or mixed with the cooking oil.

And according to the police, there was huge amounts of this pesticide. It was actually five times the amount found in a regular commercial bottle of that pesticide - Kristie.

LU STOUT: Well, news of this arrest, it's nice to hear and see some movement on this case and perhaps eventual justice for the families.

Sumnima Udas, thank you so much for your reporting.

Now, Pope Francis is scheduled to head for one of Brazil's holiest cites in this hour. Now he is visiting the National Basilica of Our Lady of Aparacida, said to be the largest Marion shrine in the world.

Now there will be no wrong turns on this trip. The pontiff is traveling by helicopter.

But security is still a concern. Now a small, homemade explosive device was found during police training near the shrine on Sunday.

Now Vatican officials say that Pope Francis asked to visit the shrine because of his personal devotion to the Virgin Mary.

And Miguel Marquez is following the pope's visit to Brazil for us from Rio de Janeiro. He joins us live. And Miguel, tell us more about what is on the pope's agenda today.


Well, he is often running already without a problem, getting from his house here in Rio to the airport in Rio. It went very, very well. We understand that federal authorities are stepping up their role and actually taking over parts of his security.


MARQUEZ (voice-over): This morning, Pope Francis on the move. He's a man taking little down time even on what was supposed to be his day off. A special moment at the residence where he's staying in Rio, a private mass given by the pontiff himself.

This as questions about how the pope's car ended up in the wrong lane, exposing him to hundreds of adoring followers but also possible harm. The pope himself calm throughout the incident, at one point, even kissing a baby.

Here are at Rio's operations center, officials say there are typically three routes for getting the pope from point "A" to "B", but that can be changed in an instant. Some officials blame miscommunication between federal and local officials. Others have suggested a lone public servant failed to properly direct the pope's motorcade.

Officially, no answers for now. "We will not talk about the past," he says. "We will only talk about the days ahead."

This as World Youth Day finally gets started. Also as a security concern, hundreds of thousands of pilgrims.

(on camera): This is the opening ceremony and the opening mass of World Youth Day. And despite a pretty miserable evening here in Rio, tens of thousands have showed up, the main stage about a half mile from where I'm standing.

PHIOEBE PHAM, PILGRIM FROM ORLANDO, FLORIDA: I'm emotional. I might want to cry.

MARQUEZ (voice-over): The crowds will only grow by week's end, millions of pilgrims looking to Pope Francis for leadership.


MARQUEZ: Now the estimates are that 400,000 to 500,000 pilgrims showed up to that mass last night. And the pope wasn't even there. I'm looking at live pictures of Aparacida right there. There are tens of thousands of people waiting in town for him there.

It is raining there today. So they may have some problems with the weather as well. But the pope has a big day ahead of him.

And Aparacida, keep in mind, it's also important to him. It's important to Brazilians because of the mysticism that this - the revered Virgin Mary has here. This is the black Virgin Mary with the history of slavery here. This is seen as a national shrine. It also goes back to his roots and a lot of the work he laid before becoming pope for what he now sees as his role in running the church - Kristie.

LU STOUT: Now the pope is in Sao Paulo today, but he will be returning soon to Rio. And when the pope greets all the crowds at Copa Cabana, the scene behind you, when he's there on Thursday, what should we expect?

MARQUEZ: You should expect a very, very big scene. I mean, we're expecting over a million people to line Copa Cabana here. It was about half of what they've prepared for so far, the number of screens. There's about 25 giant screens that go all the way back. It is going to be a spectacle, to be sure.

We also expect protests throughout this city. There were some on Monday night. We expect that to pick up through the week as well. It seems to me that the way that he got from his house or the residence that he's staying here to the airport today was so smooth and without incident, they clearly have worked that out.

We may also see the pope being less public here in Rio, because the number of people who want to touch him, who want to see him, who want to sort of venerate him just - it is just - it's an incredibly wild scene. And I think we're going to see a lot of energy here when he makes his appearance on Copa Cabana Beach - Kristie.

LU STOUT: All right, looking forward to see your reporting on that.

Miguel Marquez joining us live from Rio, thank you.

Now, four people, including two children, have died after a boat believed to be carrying asylum seekers capsized off the coast of West Java. At least 160 people were on board. It is not clear where the boat set off from or where it was headed. Indonesian officials have suggested that the boat was trying to make it to Australian waters.

And just last, Australian prime minister Kevin Rudd announced asylum seekers arriving by sea would no longer be resettled in the country.


KEVIN RUDD, AUSTRALIAN PRIME MINISTER: All of our agencies are actively following this and ensuring that everything that can be done, is being done. This underlines the need for policy changes in Australia on asylum seekers policy, which sends a very clear message to people smugglers to stop sending people by boat to Australia. We are seeing too many drownings. We are seeing too many sinkings, too many innocent people being lost at sea.


LU STOUT: Now rights groups accuse the government of shirking its responsibilities. And Indonesian officials have transferred the survivors to temporary shelters or clinics and continue to search for more.

Now authorities in Mexico say that they have rescued 94 migrants crammed into a hauling truck in sub-human conditions. They say that the group included people from Latin America, Nepal and Bangladesh. And authorities say each person paid thousands of dollars to be smuggled into the United States.

And the driver of the truck is being investigated for human trafficking.

Now also ahead right here on News Stream, he came, he waved, and now he needs a name. We'll bring you up to date on the first two days of Baby Cambridge's life.

And a UK judge has ruled that a man accused of ordering the murder of his wife during their honeymoon can be extradited to South Africa to face trial.

And enough is a enough. As China's leaders impose a five year building ban on government buildings.


LU STOUT: Welcome back.

Now after months of shuttle diplomacy, U.S. Secretary of State John Kerry announced on Friday that Israeli and Palestinian leaders have agreed in principle to meet face to face. And the first meeting could happen within the week.

Now, despite this breakthrough, Ben Wedeman tells us why many are skeptical about the talks.


BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Bringing about peace between Israelis and Palestinians is a task that has occupied one U.S. administration after another.

The process has scene countless handshakes and photo ops. And many have pledged to do what it takes to make it happen.

CONDOLEEZZA RICE, FRM. U.S. SECRETARY OF STATE: We've come quite a long way. We've got quite a long way to go. But we're not going to tire until I've given it my last ounce of energy and my last moment in office.

WEDEMAN: And now it's U.S. Secretary of State John Kerry's turn.

JOHN KERRY, U.S. SECRETARY OF STATE: On behalf of President Obama, I am (inaudible) announce that have reached an agreement that establishes a basis for resuming direct final status negotiations between the Palestinians and the Israelis.

WEDEMAN: The same thorny issues need to be confronted - the status of Jerusalem, permanent borders, settlements, security, and the fate of millions of Palestinian refugees.

20 years ago this September, the Israelis and the Palestinians signed the Oslo Peace Accords in the Rose Garden of the White House. Since then, the peace process has collapsed, been revived, collapsed, been revived and so on. Meanwhile, the walls that separate the Palestinians and the Israelis only grow higher.

Over the last 20 years, the settler population in the West Bank and East Jerusalem has grown from around 100,000 to more than half a million. Israel has built what it calls a security barrier, the apartheid wall to Palestinians, that snakes around and through Palestinian towns and cities.

A long and bloody uprising and two wars in Gaza have left a bitter legacy of hatred and resentment.

Palestinian analyst Mahdi Abdel Hadi is skeptical about the prospects of a breakthrough, but sees no other option to talks.

MAHDI ABDEL HADI, PALESTINIAN ANAYLST: I don't have hopes or disappointment, I come to realize what is the game and what is in stake. Survival or stay in the prison culture for the coming 10 years, left alone in the dark and living behind the wall in slums.

WEDEMAN: A time table has yet to be set for the resumption of negotiations.

URI SAVIR, FORMER ISRAELI NEGOTIATOR: When you make peace, you have to make every day about 10 unpopular decisions. You need a lot of guts.

WEDEMAN: Veteran Israeli negotiator Uri Savir helped draft the Oslo Accords. He knows better than most the nature of the challenges ahead and the cost of failure.

SAVIR: The alternative of peace is war and bloodshed. And we will have war in the Middle East if we will not have peace.

KERRY: Mr. Prime Minister, thank you.

WEDEMAN: A stark reminder for would-be peace makers.

Ben Wedeman, CNN, Jerusalem.


LU STOUT: Now the newest member of Britain's royal family is on the move. Prince William, his wife Catherine, and their newborn son, they were seen leaving Kensington Palace by car just a few moments ago. And it's unclear where they are going.

Now Prince William and Catherine introduced the new prince to the world outside St. Mary's hospital on Tuesday. He was born on Monday and is third in line to the British throne. And if this scene looks familiar, well it should. The new prince's debut on the world stage was similar to that of his father's.

Prince Charles and Princess Diana walked down those same steps to present Prince William after he was born in 1982.

Now we know it's a boy, we know what he looks like, but what we don't know is what his name will be. But there is still a lot of speculation and bets being placed on that.

Now Zain Verjee, she joins us live from outside Buckingham Palace. And Zain, first, the royal family, we know they have left Kensington Palace. But before then, they were already receiving royal visitors. What can you tell us?

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: We had a little bit of an unexpected surprise. It was pretty exciting just a short while ago. There were so many people, tourists, waiting for the changing of the guard. That happens around 11:30 every single day at Buckingham Palace. But they got a special treat. The queen left the palace and headed over to Kensington Palace in order to meet her great-grandson. And it was really a person visit. So it wasn't any kind of official detail that was put out there.

But it's such a - it must have been such a wonderful moment for the whole family. She spent about 30 minutes or so there. And everybody expected her to come back to the palace. So I legged it down to the golden and black gates there. And the heat was just too much. I waited about 30 minutes. She did not come back, or hasn't yet, to the palace. So it's unclear whether she'll be back or going to another location,.

Prince Harry also, we're learning, a little while ago, too, visited Baby Cambridge. So Uncle Harry got his first look as well.

William and Kate, as you say, are on the move. We don't know if they're going somewhere, if they're coming back. But I'm pretty confident they have not gone out to buy nappies - Kristie.

LU STOUT: That for certain.

And one can only wonder what they were discussing during these visits and whether or not the queen was consulted about the baby's name.

VERJEE: It's a possibility. I mean, we really don't know at this stage.

The queen and Prince William have a pretty close relationship, so he may have said I'm thinking about this name, what do you think? And I think he would really like her to endorse it. So I can't be sure, but because they have an intense closeness it's likely he may have floated it.

LU STOUT: All right, Zain Verjee joining us live outside Buckingham Palace. Thank you, Zain.

Now Russian media report that the man who leaked information about a U.S. surveillance program, Edward Snowden, could soon be leaving the Moscow international airport. Now he's been staying in the airport's transit area since June 23 seeking asylum in several countries, including Russia.

Let's bring in our correspondent Phil Black. And Phil, we know that he's been stuck in that transit hotel in Moscow for just over one month now. So how does this announcement change the game for Edward Snowden?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: So what it means, Kristie, is that after - as you say, over a month of camping out somewhere in the transit area of Sheremetyevo Airport, it's very likely he'll be leaving this airport today.

The reason, one week ago, he applied for temporary asylum in this country, that is asylum that would allow him to leave the airport and stay here for up to a year as essentially on political grounds, because he believes that he's been persecuted by the United States.

As part of that process, a lawyer that has assisted him in this case, in applying for asylum here has always said that while that application for asylum can take up to three months, before that period he should receive documentation that allows him to enter Russia for a period of time while his official asylum application is being considered, an official short-term status if you like, that would finally allow him to cross the immigration line and enter Russia properly.

What we are now told is that he has received that documentation.

So he has now received paperwork from Russia's federal migration service, which will allow him to enter Russia for as long as it takes for his official asylum application to officially be considered and for him to officially come back with an answer.

We don't know how long that will take, as I say. Anything up to three months or so. But what the headline here is, is that finally Edward Snowden after more than four weeks will have the official right to leave this airport and enter Russia - Kristie.

LU STOUT: Russia has finally granted him that document, so Edward Snowden can finally leave the transit area of that Moscow airport. But how far is Russia willing to go to work with Snowden. Will Russia grant him asylum or give him safe passage so he can get his way to another host country?

BLACK: Well, this is certainly a key step on the road towards granting him asylum. Russia had never closed the door on that option. If anything, the Russian government has always spoken about it hypothetically as a distinct possibility as long as Edward Snowden was prepared to enter - was prepared to live up to a condition, that being that he would stop aggravating the United States. He would stop leaking top secret information. He would stop publicly criticizing the electronic surveillance program.

Edward Snowden has said he is prepared to live up to that condition as part of his asylum application here.

So, if he is granted asylum, it means that he will be allowed to stay here for up to a year, although that is something that can be extended upon application as well. But keep in mind, as well, that President Vladimir Putin has always said that if he is allowed to stay, it would only be for a period of time. It would not be indefinite. He would always expect Edward Snowden to move on to another country.

It is most likely that that would be one of the Latin American countries that have officially offered him full political protection, whether it be Venezuela, Ecuador or Nicaragua, but the big question there remains how will he get there? That's why he hasn't traveled to any of these countries yet, because he simply does not have the logistical option to do so.

What Russia is acting here as is effectively an intermediary, a short- term measure that will allow him to finally stop camping out in an airport. It would seem secure proper accommodations (inaudible) until he is then able to move on to one of these countries that is prepared to take him permanently, Kristie.

LU STOUT: Yeah, Russia is acting as intermediary here, but Russia also doesn't want to gamble on its relationship with the U.S. What is the risk here for Snowden? I mean, if his asylum request is denied and he is on Russian soil, is there a risk that he could be deported?

BLACK: Well, in theory, yes, but Russia has always said it is not prepared to do that. Russia has had plenty of time to do that if it so wished. America has made it very clear that it would like Russia to expel Snowden, send him back to the United States where he would face the criminal charges they wish to bring against him. Russia has always said that it not possible, because they do not have an extradition treaty between Russia and the United States.

More than that, Russia has expressed some sympathy, really. Some very senior politicians and officials here really going all the way to the president himself have referred to Snowden has a human rights activist.

So it seems very clear that Russia is not prepared to kick him out. But at the same time, Russia has shown some concern about not upsetting the relationship with the United States. President Putin said that he believes bilateral relations between the two countries is far more important than this issue.

So Russia has really been trying to walk a delicate line here, one of balance, one where Russia is not prepared to jump to the wishes of the United States by expelling Snowden, sending him back, but at the same time does not want to unnecessarily and perhaps overly aggravate the U.S. either - Kristie.

LU STOUT: All right. But with this new development, Edward Snowden is now on the move.

Still in Russia, but at least out of that transit area in the Moscow airport. Phil Black joining us on the line, thank you.

Now you're watching News Stream, and still to come, U.S. congressman Anthony Weiner, he is back in the spotlight, because of a new sexting scandal. But surprisingly, right there next to him, and even standing up for him, is his wife. Her story later.


LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now there has been heavy rain in Southeast Asia, let's get the update now with Mari Ramos. She's standing by at the world weather center - Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, Kristie. Yeah, some very heavy rain, especially across parts of Southeast Asia. You know, we've been talking about you guys there in Hong Kong that you keep getting these strong thunderstorms pretty much every single day. Well, as we head farther to the south, the rain has been more persistent and heavier.

Look at some of these rainfall totals. Over here, 446 millimeters of rain in just a period of two days, between Monday and Tuesday. And over here, 230 millimeters of rain. Just gives you an example of how widespread the rainfall has been.

I have some pictures to show you from Thailand, and from different parts of Thailand, and rescue operations, like the ones that you see here as the water in many cases rising slowly and filling up as the rivers burst their banks. So, people are having to either move out of their homes or try to rescue whatever they can, because the flooding is so widespread across some of these areas.

There have been landslides that have been reported in some of the more mountainous regions. And you can see here how difficult it just becomes for everyday life to continue when you see such heavy rainfall. Not one person on that street. And then you see one person trying to cross over onto those sides. So clean water is a concern for many of these communities. People trapped in the floods is another concern. And then of course to be able to continue with daily life - food, water, work, people trying to make a living. So this is a concerning situation that continues to develop there across Thailand.

When you look at the forecast over here, look at that, more rain expected across some of these areas back over toward the rest of Southeast Asia as well and back over toward Myanmar where we see some very heavy rain still across some of this region and then also into parts of India.

Again, for Kolkata, you've had some very heavy rain. But on the side, Mumbai, also experiencing extremely heavy rainfall.

I want to show you this from the area where the earthquake happened. And you can see right there that they've had a cold front that moved through. What we're expecting to see is some scattered rain showers across this region still over the next 24 to 48 hours. The heaviest rain is farther to the south. But an area that was affected by that - by Monday's earthquake where rescue operations are still ongoing, where people have been left homeless, the rain will be a huge concern over the next couple of days. It's becoming more active now. And in some cases, eight centimeters, five to eight centimeters are not out of the question across this region.

Where it's not raining, well it's been pretty warm, even for you guys in Beijing. I think you'll see conditions a little bit cooler tomorrow compared to today, but that's not going to change much for many of you across these areas where the cloud cover has pretty much disappeared for now. It's hot and it's humid.

Look at that, 40 degrees against an average of 33 in - in one city. And as we head farther to the south for you in Beijing, 38 your daytime high today. 38 also in Shanghai. That means for both of you it has been the hottest day of the year so far.

In Shanghai, unfortunately, I'm afraid you're going to see a repeat of that as we head not just through tomorrow, but even as we head into the weekend.

Meanwhile, the rain easing up here across the Korean peninsula and moving in into parts of Japan.

The high temperatures in Beijing, 34. 39 in Shanghai. 31 in Hong Kong. You can thank the rainfall for that, because otherwise you'd be in the mid-30s.

Let's go ahead and move to another part of the world. We keep talking about the heat, Kristie, well look at this. This is in South America where the temperature is extremely cold. It is winter here, of course. Buenos Aires up to 1. It was 0 just a little while ago. Look at Santiago at -2.

As we head to areas farther to the north we're still dealing with some extremely cold conditions. And of course the pope visiting this area. You'd think it's always warm in South America, right? This is Aparacida where the pope will be conducting a mass later today. Look at all the pilgrims out here on the bottom in tents, in blankets, just waiting for him, because temperatures have been barely making it to about 10 degrees Celsius.

We will take a break right here on CNN. Don't go away. More News Stream in just a moment.


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 revealed that the U.S. government monitors e-mail and telephone calls could soon be leaving Moscow's airport. Now Russian media report that he has been given documents that allow him to leave the airport's transit area where he's been staying for more than a month.

Now Snowden is wanted by the U.S. on charges of espionage. He applied for temporary asylum in Russia.

The principal of the Indian school that served a poison meal to students has been arrested. Now police say 36-year-old Meena Kumari was on her way to surrender at the time of her arrest. Now she had been missing since last week when 23 children died and more than two dozen became ill after eating a free lunch at school.

Now the head of Egypt's military has called on supporters to stage mass demonstrations on Friday to show support for the country's armed forces. General Abdel Fattah al-Sisi's remarks were broadcast live. It comes as protests continue for and against former President Mohamed Morsy who was ousted by the military earlier this month.

And this week, at least 14 people were killed in fighting between the two sides.

A judge in Britain has ruled that a man accused of ordering the murder of his wife can be extradited to South Africa to face trial. Shrien Dawani, seen here on the extreme right, and his wife Anni, were on honeymoon near Cape Town in 2010 when armed men stopped their car. Anni was later found shot dead. Shrien Dawani has denied paying the assailants to kill her. And he has been under treatment in Britain for psychiatric issues since the incident.

Now let's go back to one of our top stories - the pope's first foreign trip. It comes at a time of unrest in Brazil.

This was the scene in Rio de Janeiro on Monday night. And protesters are angry about the cost of events like the pontiff's visit and the upcoming World Cup and Olympic Games. But others hope that the pope's presence will usher in a more festive mood.

Shasta Darlington reports.


SHASTA DARLINGTON, CNN CORRESPONDENT (voice-over): Dancing and jumping with joy. A party to welcome some of the hundreds of thousands of pilgrims flocking to Rio de Janeiro for the week long run-up to World Youth Day and Pope Francis' historic visit. His first international trip as pope. Here, the city itself greets everyone with open arms, and many have opened their homes. Maria Ricarda (ph) is putting up four pilgrims in her small house.

"When the priest asked me to do it, I felt as God was telling me to open my doors," she says, "so I opened them."

She lives in Bargina (ph), the slum that will be visited by Pope Francis on Thursday. While children at the local church rehearse, police patrol the streets. Part of a massive security operation with more than 30,000 troops and police. At a control center in the heart of Rio, every location the pope will visit is closely watched.

Anti-government marches that started weeks ago are a big concern. Police and protesters clashed on the day of the pope's arrival.

DARLINGTON (on camera): Dozens of police have come here to the center of Rio de Janeiro in full riot gear. In the back, they've got on gas masks and that's because right across the street over here you have hundreds of protesters.

(voice-over): They try to march on the governor's palace where the pope was received by officials.

"The pope's visit was financed with public money," says one protester. "There is so many other things that need to be financed in this country."

And the bill for the visit is jaw-dropping. The government alone is spending more than $50 million.

More protests are planned when the pope will lead mass for thousands on Popicavana (ph) Beach later this week. At least the sand sculptures here have been more welcoming. They say they covered up bare bottoms out of respect and shaped the pope's image for all to admire.

Shasta Darlington, CNN, Rio de Janeiro.


LU STOUT: Now, new allegations have surfaced involving a former U.S. congressman who is now vying to be New York's next mayor. Anthony Weiner has admitted to having online sex chats more than a year after leaving congress and undergoing therapy for it.

Now the controversy returned after a gossip website published a series of lewd text and photos. They're said to be from an exchange between Weiner and a woman last summer.

Now the National Organization for Women is calling on Weiner to withdraw from the race, but Weiner says he will remain a candidate.

And you just saw here there in that video standing by his side. Her name is Huma Abedin. And as Dana Bash reports, her reaction to her husband's latest admission is fast becoming part of the story.


DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT (voice-over): In the annals of political wives standing by their men, this was unprecedented.

HUMA ABEDIN, WIFE OF ANTHONY WEINER: Anthony's made these horrible mistakes both before he resigned from Congress and after. But I do very strongly believe that that is between us and our marriage.

BASH: In her carefully chosen words, Huma Abedin telegraphed so much.

ABEDIN: It was not an easy choice in any way, but I made the decision that it was worth staying in this marriage. That was a decision I made for me, for our son, and for our family.

BASH: It was extraordinary that she spoke at all. Until now, it was just the picture that signaled that the politician in trouble had support of his wife. Then South Carolina governor, Mark Sanford, stood alone as he explained his affair, but other wives did participate silently.

Louisiana senator David Vitter's wife as he was accused of sleeping with prostitutes, former Idaho senator, Larry Craig's wife in the face of allegations he was trolling for sex in an airport bathroom, and former governor, Eliot Spitzer's wife after he admitted to seeing high-priced prostitutes, a scene that prompted an entire TV series, "The Good Wife."

Huma Abedin is no stranger to personal problems playing out on the political stage. For decades, she's been a key behind the scenes confidant of politics most famous scorned woman, Hillary Clinton. Bill Clinton officiated at her wedding. Hillary Clinton is quoted as saying, "I have one daughter, but if I had a second daughter, it would be Huma. Despite being notoriously private, Huma is incredibly savvy knowing full well the potential impact of this moment.

ABEDIN: I love him. I have forgiven him. I believe in him, and as we have said from the beginning, we are moving forward.

BASH: Dana Bash, CNN, Washington.


LU STOUT: Now police in Japan are searching for a man in connection to the murders of five people in a remote western area. Now their bodies were discovered over the weekend. Their homes had all been burned down. And police, they found this note, it was posted on the door of a 63-year- old man who they are looking for in connection to the killings.

It is apparently a haiku poem that when translated it reads, quote, "setting on fire/smoke gives delight/to country fellows."

Now police have not made a direct link between the note and the murders, but they say that the missing man could provide them with valuable information about what happened.

Now, to China now where a five year ban has been imposed on the construction of new government buildings. David McKenzie tells us why from Beijing.


DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: The moves to ban the construction and restoration of any government building in China for five years can be seen as part of President Xi Jingping's push towards austerity and anti-corruption.

The unusual move, though, makes a little bit more sense when you consider images like this. This is a six story pharmaceutical state company based in Harbin (ph), complete with opulent chandeliers and gold trim meeting rooms. Images of excess like this have angered Chinese online, especially when you also consider the huge, sometimes enormous headquarters in far flung provinces and small cities widely shared on social media and complained about.

The ban was already in effect for some months, but it seems like the government now wants to tie up some of those loopholes to stop particularly local officials from getting around it.

It seems like Xi Jinping has his finger on the pulse of some of the more populous initiatives to stop anger here in China, but also the systemic reform that is needed, analysts say, might be difficult to push through.

David McKenzie, CNN, Beijing.


LU STOUT: As David mentioned, this ban is part of a drive by Chinese President Xi Jinping to crack down on extravagance and corruption among government officials. Earlier this year, China banned TV and radio commercials for luxury goods such as expensive watches, gold coins, and liquor. Now state media report, it was because they promote incorrect values.

And in March, the government ordered that no welcoming ceremonies be held for Communist Party delegates arriving in Beijing for the annual National People's Congress.

And military officials, they were instructed to share hotel rooms and bring their own toiletries.

Now the government has also called for an end to lavish banquets paid for with tax dollars, telling delegates instead to eat at modest lunch buffets.

Now yesterday, we told you about a rough landing for one U.S. plane. Now the Southwest Airlines jet's nose gear collapsed on Monday. 10 people were injured in the incident. And Brian Todd spoke to a prominent safety expert and former 737 pilot about landing gear failures.


BRIAN TODD, CNN INTERNATIONAL CORRESPONDENT: The nose gear collapses, flame shoots up, the plane grinds to a stop. The FAA says a review of air traffic control tapes indicates the pilot likely didn't know there was a landing gear failure until Southwest Flight 345 was skidding.

As for the passengers...

(on camera): Any warning at all?

UNIDENTIFIED MALE: No. None, whatsoever.

TODD (voice-over): We got an inside look at what that 737 cockpit control system might have looked like at the crucial moment.

KEVIN HIATT, FLIGHT SAFETY FOUNDATION: This is when the landing gear lever is in the down and locked position. The three green lights indicate that the gear is down and safe.

TODD: And that's what the Southwest pilot would have seen Monday evening, right?

HIATT: That's what the pilots would have seen just prior to landing, yes.

TODD: Kevin Hiatt of the Flight Safety Foundation is a former 737 pilot. He says landing gear failures don't happen very often on those models. With cockpit and exterior diagrams, we looked at what could have gone wrong.

HIATT: You've got a strut here that comes down to the wheels. So perhaps something in here, when the plane touched down and the forces on a plane when it touched down, may have decided to fail at that particular time. The gear could have maybe failed backwards, or it may have collapsed back up this way.

TODD: At that moment, if there's been no prior warning.

(on camera): Is the pilot just hanging on to that steering mechanism for dear life and keeping it straight?

HIATT: Well, they would probably take the control yoke, as we'd say, and they would push it forward. And then use the rudder pedals down here to help steer the aircraft until it came to a stop.

TODD (voice-over): Here's how one passenger on Flight 345 described that moment on Monday.

UNIDENTIFIED MALE: We hit the ground, skidded for 10 or 15 seconds. It was very loud.

TODD: I asked Hiatt what the worst case scenario could have been at LaGuardia.

HIATT: The worst part of an event like this could be where the aircraft wing or main landing gear fails and comes down, gets into the dirt and does some type of a spin or even a cartwheel.

TODD: With much of the plane's fuel in the wings, Hiatt says, that could spark a much larger fire. Southwest flies only 737s in its fleet. And the LaGuardia accident isn't a first. In June 2007, a Southwest 737 had a nose gear collapse in Oakland, California. The pilot did have advance warning then and made an emergency landing.

(on camera): When I asked Hiatt if this was a problem unique to Southwest Airlines or to the 737, he said no. The main issue, he says, is the frequency of takeoffs and landings. The simple wear and tear on any given aircraft.

Brian Todd, CNN, at Reagan National Airport.


LU STOUT: Now, still to come here on News Stream, when customers buy Apple products they're opting for the less expensive ones these days like the iPad Mini or the older iPhones. We'll tell you what that means for the tech giant's accounts.


LU STOUT: Welcome back.

Now Apple's accounts have seen better days. The tech giant's net profits have fallen 22 percent in the third quarter compared to the same period last year. But the company's results still offered one surprise, iPhone sales soared 20 percent year on year. In fact, Apple shipped more than 31 million of the smartphones in the three months through June. But iPad sales fell.

Now here is one of the reasons why Apple's profit was down, it's profit margin fell. Now in simple terms, that's how much profit Apple makes from every product. And Apple is partially responsible for this drop in profit margins, because of this, the iPad Mini. It is the cheapest iPad they have ever sold. And those margins could narrow further if Apple introduces the rumored low cost iPhone later this year.

Now Apple's mix of older and cheaper products signals the company's shift away from high end devices.

Now let's bring in our regular contributor and editor of the Nicholas Thompson.

Nick, good to see you. And Nick, this is the question, is the low-end the new high-end?

NICK THOMPSON, NEWYORKER.COM: Yes. I think that's a good way to put it. I think companies like Apple that have traditionally focused on high- end products, luxury products, they haven't introduced cheap phones in the past, in part because they thought it might diminish their brand and the sort of feeling and the buzz you get when you hold an iPhone product. Now, companies like Apple have to do that. That's - well, for two main reasons.

One, that's where the growth is. A lot of people in the world, people who aren't as affluent as people in America where traditionally has been very strong, those are the people who are now buying phones.

The markets here are pretty much saturated. Secondly, high-end phones, the competition is really tough. It used to not be so tough for Apple, they could put out a new phone, it will be better than everything else. Now it's extremely hard to do that, so they need to go for growth, so they need to go for lower end phones.

LU STOUT: So the competition is tough, new markets emerging, that's why we're seeing this trend.

I've got some show and tell for you, this is the $12 Gongkai (ph) phone. We source this here in Xinjing (ph), China. It's not a smartphone. This is a very cheap sort of snap together mobile phone. But there's also cheap smartphones from other Chinese big brands like ZTE, Huawei, et cetera.

So Nick, can western brands compete against these Chinese rivals?

THOMPSON: Well, Apple's main - in China, in particular, Apple is having a terrible time. And yes it's very hard to beat a $12 phone. Apple will never be able to make a $12 iPhone. It's far too expensive to do that. Apple will go for - you know, it will certainly be a step up from the $12 phone.

But it is also the case that Apple has had a lot of success in India. And they've had a lot of success in India through marketing, through figuring out distribution channels. So it is possible.

The limiting factors when going into a country like India or China are competing with the low cost phones, which is hard. And then figuring out the infrastructure and the way the government policies work, which is also hard.

So Apple has to do both of those. And it's actually more the latter that has been the biggest challenge for Apple.

But to the point about the $12 phone, yes, phones are getting cheaper. All the components are getting cheaper. Prices are going to keep going down. That does put extra pressure on these companies.

LU STOUT: And a final question for you, Nick. Your own experience working in the developing world. I mean, what is the reality on the ground for tech brands trying to woe the emerging market?

THOMPSON: Well, it's very hard. I mean, I remember when I started writing about technology in West Africa in 2002 or 2003. I was very excited. I most in Ghana. And it seemed like, wait, this is really taking off, this is going to boom, this is going to transform the way people live. You look, oh my gosh, you can take a computer, you have the internet, suddenly you have access to all this information.

But the truth is it takes a lot more than that, and it's something that I learned gradually over time as I watched things not happen, right. You need the computer, but you also need electricity, you need functioning markets, you need people to be able to repair the parts, you need roads so that the person with the new motherboard when the computers motherboard breaks can drive there. It ends up taking a lot of things have to happen. So it tends to come more slowly.

But ultimately, as we're seeing for example in Ghana, it does come.

I had wanted in 2003 to write a book about a man who has started an internet cafe in rural Ghana and I stayed there for a little while and it just - it bombed out and he turned it into a bicycle shop.

But I think that that kind of place now can really work. So it just takes longer than sometimes the very optimistic people think.

LU STOUT: Yeah, very, very true there. You know, thanks for reminding us. It takes so many factors for technology to take root in an emerging market. Nick Thompson there, joining us live from New York. Thank you so much. Take care.

THOMPSON: Thank you, Kristie.

LU STOUT: Now to this week's CNN Hero. Now for years, New Orleans has been a city plagued by violence, especially gun violence with the majority of the victims being young, black males. And sick of seeing so many young people in her community die, this week's CNN Hero is fighting violence with love.

Here's Lisa Fitzpatrick.


LISA FITZPATRICK, COMMUNITY CRUSADER: A typical week for a child in Central City is that you'll see at least one dead body.

UNIDENTIFIED FEMALE: There was a shooting here. I was just noticing they still haven't cleaned up the blood.

FITZPATRICK: Five year olds who have been in two shootings, 16-year olds with colostomy bags. I didn't want it to be normal anymore. I just decided I had to do something.

My name is Lisa Fitzpatrick and my mission is to teach conflict resolution skills to the children of New Orleans so they can avoid violence and stay alive.

I love New Orleans for its sense of community but there's an undercurrent of hopelessness.

Who can tell me what their sign says?


FITZPATRICK: Everything we do here is to build positive, social relationships. Our motto is reconciliation, never retaliation.

UNIDENTIFIED MALE: I was on the verge of getting ready to seriously hurt somebody. But Miss Lisa stopped us. She definitely taught me to be in control of myself. When I come here, I'm like a big brother. The way Miss Lisa influenced me is the same way that I feel like I'm influencing them.

FITZPATRICK: The successes are not necessarily going to Harvard, but when that kid makes a conscious effort to spread the message of nonviolence, that's the success.

I love you.



LU STOUT: Welcome back.

And yes I'm going to talk about the royal baby again. And many in the media have used one word to describe new parents Prince William and Catherine: modern. But John Berman wonders is that really the case?


JOHN BERMAN, CNN CORRESPONDENT (voice-over): The world celebrates the new prince, the future king, the possible first British monarch of the 22nd century. The parents, William and Kate, hailed as young, fresh, modern.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": It seems that these two do things their own way.

UNIDENTIFIED FEMALE: This is a very modern royal couple.

UNIDENTIFIED FEMALE: They're very hip, modern couple, of course.

BERMAN: OK. Maybe, but it's safe to say there are modern families and then modern families. Young Baby Cambridge's entrance to the world might be ground breaking by royal standards, but it's not like he has two daddies or Sofia Vergara.


BERMAN: On the modern side --

UNIDENTIFIED MALE: The royal highness, the duchess of Cambridge was safely delivered of a son at 4:24 p.m. BERMAN: A break from tradition, sending word of the birth in an e- mail. Not so modern. They still posted that official announcement on that gilded easel thing, and then there was this guy.


BERMAN: Modern, no nannies. Not so modern, access to five castles. Modern --

UNIDENTIFIED FEMALE: When the baby was born, William (INAUDIBLE) especially encrypted phone with the news.

BERMAN: An encrypted phone, not so modern, that call was to tell his grandma that he did his duty and produced an heir. Modern, those 41 and 62 gun salutes, sure it's not Twitter but at least they weren't cross bows or slingshots. That's fairly modern-ish. Modern, the duke of Cambridge will take two weeks paternity leave. Not so modern, I just called him the duke of Cambridge.

(on camera): William and Kate are expected to be more hands on parents than past royals. Instead of a nanny as we've mentioned, they've reportedly hired a housekeeper to help around the palace.

John Berman, CNN, Washington.


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