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U.S. Temporarily Suspends Some Egyptian Aid; CD Sales Popular In Japan; Bo Xilai Trial Update; CNN Leading Women: Diana Mulligan; 70 Percent Of Manila Underwater; 1,300 Pound Saudi Man Forklifted From Home

Aired August 20, 2013 - 08:00:00   ET


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

Now, the United States suspends some military aid to Egypt as the crackdown on anti-government protesters continues.

We'll be live Jinan (ph), China where the trial of disgraced politician Bo Xilai will take place.

And they may be disappearing in many parts of the world, but we'll tell you why the CD is still big in Japan.

Now as the turmoil continues in Egypt, the United States has made a quiet, but very significant move. Now Washington is temporarily suspending some military aid to the country. A U.S. official stresses that no decision has been made to cut off the aid permanently, rather, this, quote, "reprogramming of funds will be in effect while a review is undeway."

Now let's take a closer look at how the U.S. aid to Egypt breaks down. Now according to a U.S. State Department report, which was released in June, most of the funds by far for the military out of $1.5 billion, more than $1.2 billion is in the form of military aid. Now nearly $2 million is spent on military education and training. $250 million goes to economic assistance support.

Now we have correspondents covering the story from the U.S. and Egypt. Our world affairs correspondent Jill Dougherty is live from CNN Washington. Reza Sayah joins us live from Cairo. But first, let's go to Jill. And Jill, tell us why did the U.S. decide to do this, to quietly suspend aid to Egypt?

JILL DOUGHERTY, CNN CORRESPONDENT: Well, so far remember we've been reporting all along that the president did not want to come down on either side of that question -- is it a coup or is it not a coup? Because they wanted to not get on either side, alienating either the government and the military or the demonstrators who were on the streets, the supporters of Morsy.

After all, if they did immediately suspend aid, it could -- actually if they continued the aid, it could look very bad, because the military at that moment, practically, was mowing down people on the streets of Cairo.

So what they're trying to do is give a signal, move some money around. This reprogramming is possible because a lot of the money that the United States gives is given in a very complex way, not directly to the Egyptian government, but it's given to, as we've been reporting, into a federal reserve bank in New York into an account that the Egyptians draw on. And it includes, as you said, mainly military aid, but there also is some non- governmental aid, economic aid, et cetera.

So by not coming down on either side, they can kind of hold back and then very quickly re-trigger this if they want to either go ahead with it or end it completely.

LU STOUT: Interesting semantics at play here. The United States reprogramming aid and trying to send a message to Cairo. What message is being received then?

Let's go to Reza Sayah live from the Egyptian Cairo. What is the reaction there? And what impact will the suspension of aid have there on the ground?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: It's not clear at this point, Kristie, but certainly Washington is hoping that this pressure, this delay in aid is going to end the bloodshed. The bloodshed, of course, the outcome of the military-backed government's bloody crackdown against the Muslim Brotherhood. However, at this point there's no indication that this government here in Egypt is going to put on the breaks on this crackdown. In fact, it seems the opposite is happening.

Dozens of senior Brotherhood leaders have been detained, hundreds of other members and supporters also jailed. You've had at least 800, 900 Brotherhood supporters and members killed.

This delay in aid is Washington's way of saying, Egypt, you're going down the wrong path. Slow down.

But again no signs that Egypt is heeding that pressure. And I think moving forward, a lot of people are eager to see if things get worse the U.S. would officially cut off aid. That doesn't seem to be imminent at this point, but certainly if that happens that could have significant impact -- Kristie.

LU STOUT: All right, Reza.

Let's go back to our Jill Dougherty in Washington. Jill, some added context here, before we went to you we showed our audience that pie chart of how much aid is being given to Egypt every year from the United States. And we saw that Egypt's military by far gets the lion's share of that $1.5 billion annual aid package.

But why is this happening, why is this aid program, why is it even in place?

DOUGHERTY: Well, because of Israel, basically, because of the peace agreement between Egypt and Israel. And the United States wanting to support Egypt, because of that, of keeping the peace.

And also, when you look at the money that all of the demonstrations aside, Egypt has used this type of equipment for fighting terrorism in Sinai. Sinai, you know, attacks coming from Sinai on Egypt -- I'm sorry, on Israel. So there's really a very big Israel component. It's very important for the region, for regional security, et cetera, Kristie.

LU STOUT: Interesting the geopolitical ramifications here.

Let's go back to our Reza Sayah in Cairo. And Reza, the aid it goes both ways, doesn't it? I mean, it's not just the U.S. giving aid or favors to Egypt, but from Egypt -- for example, using the Suez Canal or overflight rights. Could you tell us more about what Egypt has offered the U.S. over the years? And could Cairo decide to suspend those measures?

SAYAH: Technically, Kristie, those are moves that Egypt can make. The Suez Canal, its airspace, they belong to Egypt. U.S. navy warships frequently every month use the Suez Canal.

There's no signs that the Egyptian government is looking to cut off access for the U.S. to the canal and its airspace, but certainly these are cards that both sides can play. But I think if you'd look at the big picture, both Egypt and Washington they want to avoid a conflict, they want to avoid escalating matters, because they would both jeopardize a key strategic ally.

But the fact that we're even talking about this, Kristie, shows how dire the situation is getting.

LU STOUT: And finally, one last question for Jill Dougherty back in Washington. Jill, I mean, what will it take for this reprogramming of aid to end, what will it take for the U.S. to fully restore aid to Egypt?

DOUGHERTY: They have already said what they want is this military government, the interim government and the military to move very speedily toward real democracy, bring everybody into the political process and then move on to new constitution and elections. What the United States doesn't want is a military government in power ad infinitum in Egypt. It wants civilian government, but it realizes at this point it's going to be very difficult to bring the Muslim Brotherhood back into the equation. It's gone pretty far down the road.

LU STOUT: Jill Dougherty live for us in Washington, Reza Sayah live in Cairo, a big thank you to you both.

Now the crackdown on protesters is continuing in Egypt. In fact, today authorities arrested this man, Mohammed Badie, the Muslim Brotherhood's spiritual leader. Now state run TV says he is accused of inciting violence.

Meanwhile, the former president Mohamed Morsy remains in detention. Now he hasn't been seen in public since the military ousted him on July 3.

Now prosecutors have charged him with a slew of offenses, including the detention, torture and murder of Egyptian citizens.

Now the detention of these two men has left many to wonder about the future of the Muslim Brotherhood in Egyptian politics. It is the oldest and largest opposition group in Egypt. But for decades, it operated underground. It was banned by the government of former president Hosni Mubarak.

Now it only became a part of mainstream politics in Egypt in 2011 when it formed a political wing, the Freedom and Justice Party.

Now a significant number of Egyptians apparently support the interim government's actions. Ian Lee spoke to some who say the crackdown on pro- Morsy demonstrators, while tragic, is necessary.


IAN LEE, CNN INTERNATIONAL CORRESPONDENT: The streets in Egypt have been a battleground with deadly clashes between security forces and supporters of ousted President Mohamed Morsy. The military, too, has its supporters. Even if they aren't in the streets, some are choosing to fight on a different front.

TIMMY MOWAFI, CO-FOUNDER, CAIROSCENE.COM: We asked for the army to intervene at some point. We asked for this. The Egyptian people asked for the army to intervene.

LEE: Timmy Mowafi is the co-founder of Cairo Scene, a lifestyle website with a political edge. Support for the military regime's crackdown on pro-Morsy protesters isn't hard to find in this newsroom and on their website. Here, it's seen as unfortunate but necessary.

MOWAFI: It's a devastating thing the numbers which have died on either side, but there were armed people on the street. This would not be acceptable in any other country.

LEE: Egypt is a country divided, as the death toll continues to rise.

(on camera): On one side, you have the military and interim government saying they draw legitimacy from the people, pointing to the millions of protesters who've turned out on June 30, demanding Morsy's ouster. On the other side, the Muslim Brotherhood and their allies claim legitimacy from winning previous elections. Both sides see the fate of the country at stake.

(voice-over): But the crisis now has some looking for a third option.

EIHAB BORAIE, SENIOR WRITER, CAIROSCENE.COM: Well, personally, I am not with the military, but I am also definitely against the Brotherhood. I do think that we are finishing the revolution. Unfortunately right now, there's going to be a lot of ugly days to come before we get to that period where we have normalcy in this country.

Despite the large uprising against Morsy, many believe there has to be reconciliation.

DALIA AWAD, MANAGING EDITOR, CAIROSCENE.COM: I do think -- and it's very important that the Muslim Brotherhood should not be excluded, should not be driven underground, there needs to be some inclusion.

LEE: But with both sides locked in battle, political solution seems all but impossible.

Ian Lee, CNN, Cairo.


LU STOUT: And now to Pakistan where former President Pervez Musharraf has been charged in the 2007 assassination of Benazir Bhutto. Now the charges include murder, conspiracy to murder, and facilitation of murder.

Now Bhutto, Pakistan's first female prime minister, was murdered as she campaigned for general elections.

And Musharraf's spokesman says that the unprecedented charges are part of a smear campaign.

This is the first time a former head of the army has been charged with any crime in Pakistan.

You're watching News Stream. And coming up next, disgraced Chinese politician Bo Xilai goes on trial this week for alleged corruption. David McKenzie has a live report.

Also ahead, by direct order of the king, one of the world's heaviest men is removed from his home with a forklift truck. Why Saudi King Abdullah is coming to this man's aid.

And later, the CNN Freedom project, we'll tell you about one woman's escape from sex trafficking and prostitution in the U.S. State of Florida.


LU STOUT: Welcome back.

You're watching News Stream. And you're looking at a visual version of all the stories we've got in the show today.

Now we've already told you about the U.S.'s decision to hold up aid to Egypt. And later we'll tell you why a Palestinian researcher hacked the Facebook page of CEO Mark Zuckerberg.

But now let's turn to China. Now former rising star of the Communist Party is preparing to stand trial.

Now Bo Xilai is charged with bribery, corruption and abuse of power. He used to be party chief in the southwestern city of Chongqing. And Bo has not been scene in public since he was stripped of that post last year. His trial will take place far from his former base of power. It's set to begin on Thursday in the eastern city of Jinan.

Now the trial will be the latest chapter in China's sensational political scandal. Now David McKenzie has just arrived in Jinan. He joins us now live -- David.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, that's right, Kristie. Some in China are calling it the trial of the century, the trial of Bo Xilai, former Community Party kingpin. At the very least, it's one of the most sensitive moments for the party in at least 30 years since the 80s, in fact.

But the story of Bo Xilai, this extraordinary story with many twists and turns doesn't really start here in Jinan, but 1,000 miles away at his power base in Chongqing.


MCKENZIE: Chongqing, a megacity of some 30 million in the southwest, and center of China's biggest political scandal in a generation.

Bo Xilai ran this city, the son of a famous revolutionary leader, a princeling, tapped to join the untouchable ranks of the party, a Chinese politician that broke the mold.

FRANK CHIN, POLITICAL COMMENTATOR AND COLUMNIST: Bo Xilai was unique. I mean, he was not a Mao Party (ph) hack the way I think 99 percent of party officials are.

MCKENZIE: Bo organized massive Sing Red rallies, packing stadiums with Communist Party faithful in TV friendly spectacles, a throwback to the days of Mao that startled both friends and enemies.

LI ZHUANG, LAWYER (through translator): He was good at using media to glamorize himself. He successfully fooled ordinary people. They weren't able to see his real intentions and political ambition.

MCKENZIE: Bo signaled his ambition by bringing in powerful police chief Want Lijun. Together, they arrested thousands of alleged criminals in a smash black campaign.

(on camera): Bo Xilai and his police boss had almost unlimited ambition. If you look at this, it was supposed to be the cloud computing center of the Chongqing police force, it's enormous cathedral like.

(voice-over): His lofty aims and brutal tactics made him enemies.

ZHUANG (through translator): During his four years ruling Chongqing, he marked his cruelty and history with a number of people he arrested, executed, put in relocation camps and thrown into jail.

MCKENZIE: For Communist Party royalty, Bo's downfall began in an unlikely place, a shabby Lucky Holiday hotel where Bo's wife Gu Kailai's business dealings with a British family friend went horribly wrong.

(on camera): Court documents show that Gu Kailai lured Neil Heywood to this hotel for a late-night meeting. She plied him with expensive whiskey, and then when he got ill she laid him on a bed like this and poured rat poison down his throat.

(voice-over): Local authorities tried to cover up Heywood's death, surrounding the hotel and cremating his body. It may have all ended there had Bo's police chief not fled, asking for asylum then surrendering to the Chinese government and revealing the coverup.

CHIN: Corruption is so widespread that if they wanted to target somebody they can almost always find something to use against a person. And I think that Bo had a lot of enemies in Beijing. And when this came up, it was a godsend.

MCKENZIE: Bo Xilai was stripped of his party membership, his wife, Gu, convicted of murder. From the very heights of power, Bo Xilai could now face the death penalty.


MCKENZIE: Well, this trial won't be a trial in many ordinary senses. That it even came to trial, Kristie, means that they've come to a conclusion. Already, we believe -- and this will be largely a show trial by the Communist Party. There is a sense, though, that the government will try to make it part of Xi Jinping's much vaunted anti-corruption campaign. But as you heard, at least from that analyst and many I've spoken to, that really this is much about corruption as it is about someone who flew too high too fast compared to his contemporaries.

LU STOUT: So the trial is scene more as a political statement as opposed to a legal proceeding.

Now David, before the trial we understand that Bo Xilai's son, Bo Guagua who is in the United States, he issued a statement. What did he say?

MCKENZIE: Well, that's right. Bo Guagua, the son of Bo Xilai and his wife Gu Kailai issued a statement to The New York Times, which we've corroborated with a close contact of the family. He said that in fact he believes that they haven't really been -- that this is really just a trial in only name. Let's -- I'll read you a statement from that. It's "if my well-being has been bartered for my father's acquiescence, or my mother's further cooperation. Then the verdict will clearly carry no moral weight."

What that's insinuating is that they're using the son of Bo Xilai, who is in the U.S. studying, as a bargaining chip to try and make sure that Bo Xilai and Gu Kailai cooperate.

Certainly, no evidence has come forward to suggest that. And some irony that Bo Guagua is complaining about the methods of this trial when Bo Xilai himself was famous for these kind of show trials that we are likely to see here on Thursday.

LU STOUT: Good point there.

And finally, David, why is this trial taking place not in Beijing, not in Chongqing, but where you are, reporting live in Jinan in eastern China?

MCKENZIE: Well, I think the main thing that this isn't Beijing or this isn't Chongqing, this isn't near the power base for the party or the power base of Bo Xilai himself. The party officials, we believe, wanted to keep it far away from the action, as it were, far away from any potential protests or signs of a support for Bo Xilai.

When we recently were in Chongqing, it was quite extraordinary the level of rank and file support for Bo Xilai amongst just ordinary people on the street.

Many of his policies there were very popular, both his policies to crack down on organized crime and because of his Chongqing model, a model which he brought a new system, in his mind, to try and equalize the growing income gap here in China.

So, Bo Xilai would certainly still have supporters, his high level supporters, I'm sure, will be very quiet, though, in the next few days.

LU STOUT: All right, David McKenzie reporting live for us in Jinan, China. Thank you.

Now the Bo Xilai case is a complicated one, you can find all of the intricate details on our website, just check out behind the Bo Xilai scandal at Among other things, you'll find analysis from our Beijing bureau chief Jaime Florcruz who went to university with Bo Xilai.

Now you're watching News Stream, and coming up next, Saudi Arabia takes extreme action to help an obese man. We'll tell you who made this incredible move possible.


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

Now he is one of the world's heaviest men, weight in at 610 kilograms, that's more than 1,300 pounds. And now Khalid Bin Mohsen Shaari is getting help from the king of Saudi Arabia.

Now Elizabeth Cohen, our senior medical correspondent, joins us now with more. And Elizabeth, it's good to know that he's getting help.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It is, Kristie. But, you know, really it's not clear how well this is going to work. IT won't be easy to help this man lose significant amounts of weight.


ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Meet Khalid bin Musen Shaari. At 1,345 pounds he may be the heaviest man in the world and he's not even 21 years old. He hasn't been able to leave his bedroom for more than two years. These pictures show the dramatic moment when he was taken out of his home using a forklift. Part of it had to be demolished to bring him out.

UNIDENTIFIED MALE: It's obviously an extreme case. The chances that this guy is really sick are really high.

COHEN: It's unclear how he got to be this severely obese, but Dr. Robert Lustig, a leading pediatric endocrinologist has a theory.

DR. ROBERT LUSTIG, PEDIATRIC ENDOCRINOLOGIST, UCSF: I don't think can he eat himself to 1,345 pounds, but he can certainly drink himself to it. Liquid calories don't stimulate satiety like solid calories. It's hot there and goes down easy.

COHEN: Liquids don't fill you up the way food does so perhaps he never felt satisfied. Saudi Arabia's King Abdullah is paying for a military plane to transport Shaari to Riyadh to undergo medical treatment. Step one, says Lustig, a restrictive diet, not weight loss surgery.

LUSTIG: You can't do surgery on them now. It's too dangerous. You basically would have to keep him in the hospital for years on a restricted calorie diet. At some point, it will become safe to do a bariatric procedure.

COHEN: According to the "Guinness Book of World Records," the heaviest living man in the world has been Manuel Uribe from Mexico. He topped out at 1,235 pounds, but has managed to lose some weight and is down now to 980 pounds. Shaari is not alone. Obesity is a serious issue in Saudi Arabia with more than 35 percent of its citizens considered severely overweight.


COHEN: Now, not just severe obesity, but also type II diabetes have become a problem in the Gulf States -- Kristie.

LU STOUT: Elizabeth, surgery for him, not scheduled at the moment. So what are the other options for him?

COHEN: Right. They can't do surgery for several reasons. One, it would be tough to get him up on the operating table, and two anesthesia would be a huge risk for him at this point. So those are just two of the reasons that they can't do surgery.

What we suspect they're going to do based on talking to doctors in the United States is put him on a very, very restricted diet, a very low calorie diet, and monitor him in the hospital to, you know, monitor his health, but also to make sure that he sticks to this diet, because it's going to very, very difficult to maintain. It could be years before it's safe to do surgery on him.

LU STOUT: Well, here's wishing him the very best. Elizabeth Cohen reporting live for us, thank you.

You're watching News Stream. And coming up after the break, CNN's Freedom Project brings us the inspiring story of one woman's escape from sex trafficking and prostitution.

And much of the world has moved on to buying digital copies of music, but in Japan music lovers are staying loyal to the CD. Find out why.


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

A U.S. official tells CNN the Obama administration is holding up some of its military aid to Egypt while it reviews the situation there. Now Saudi Arabia has said it is willing to make up for any shortfall in international aid.

Meanwhile, Egyptian state TV says the spiritual leader of the Muslim Brotherhood has been arrested. Now the report says that Mohammed Badie is accused of inciting violence.

Pervez Musharraf, Pakistan's former president, has been charged in the 2007 assassination of Benazir Bhutto. Now security was tight at the court in Rawalpindi. Musharraf denies the charges of murder, a criminal conspiracy for murder and the facilitation of murder.

At least seven people have been killed by severe weather in the Philippines. Tens of thousands of people have been forced from their homes. A state news agency says 70 percent of the capital Manila is under water. Now flights have been canceled and schools are closed as the rain is expected to continue.

Now a U.S. army psychiatrist who has admitted killing 13 people at the Ft. Hood army base could begin his defense this Tuesday. Nidal Hassan is representing himself at the court martial. And the prosecution says that Hassan believed his Muslim faith required him to kill U.S. soldiers because they were being sent to fight Muslims in Afghanistan.

Now let's get back to the news of those fatal floods in the Philippines. Many parts of Manila under water. Mari Ramos joins us now from the world weather center with that and more -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Kristie, this is a story we've been talking about for the last couple of days, but you can see the situation getting worse as the rain does not stop.

And I want to go ahead and show you some images as I tell you the story of what's going on in this part of the world. I think is just a very sad picture. You see this person there walking with water up to his chest.

So when they talk about Manila being 70 percent under water, this is what they mean. It has rained so much over the last few days that the water has nowhere to go. You can see people again over and over trapped by the high water. You know, many cases, of course, vehicles can't go by. Businesses are closed.

This picture from a KFC there in Manila. This is from one of our iReporters Sherbien Dacalanio. Thank you for sending us this.

If you have pictures, go to CNN iReport -- or and go ahead and send us your pictures. We want to know how you're dealing with this massive flooding.

Here you see it. The buses were still running in some parts of the city early in the morning, but then in many cases they were canceled. Schools were closed for a second day in a row across these areas.

And I want to show you some of the rainfall totals. Really amazing. These are new rainfall totals that we've been adding up. And these are numbers since Sunday. So Sunday, Monday and Tuesday. This is the rainfall that has happened across these areas. And you are looking at over half a meter of rain here in Manila.

If you think about August being the rainiest month of the year, normally they get about 417 millimeters of rain. So this is about 150 percent of their normal average. For Sangley Point, that's 190 percent of their average for this time of year.

And question that happens is, yeah, well some years it does rain more than that during the month of August. The concern is, and the reason it's so tragic here, because the rain has fallen over three days, not spread out through the entire month. And that's very important to try to understand.

We've talked about the southwest monsoon, how it brings rainfall across these areas. You probably saw this yesterday, but again remember when we get these tropical cyclones that form just to the north and east of the Philippines it enhances all of that moisture coming in.

And just the rainfall can be extremely heavy. And it is even worse when these tropical cyclones move very, very slowly.

In this case, the storm is named Trami. It has been moving very slowly across the north and east of the Philippines, headed in the general direction of Taiwan, some very heavy rain expected in those areas as well. And I'll show you that in just a moment.

But I don't want to leave Luzon just yet. Again, over the next couple of days an additional 8 centimeters of rainfall very possible in these areas, Kristie. That is extremely dangerous rainfall.

Meanwhile, the storm very slowly moving away, moving toward Taiwan as a typhoon, we think, probably by this time tomorrow. And of course that's going to bring some extremely heavy rainfall over these areas as well. In some cases over Taiwan we could see 25 centimeters of rain in the next two days alone.

Back to you.

LU STOUT: Yeah, very dangerous levels of water. Mari Ramos tracking the storm for us. Thank you.

Let's take a look at South Korea now. Now Seoul, it kicked off an annual 10 day joint military drill with the United States on Monday. Now Paula Hancocks attended and exercise that played out what would happen if the North attacked.


PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: South Korea is preparing for the worst-case scenario, an attack on its underground system. Now what we're seeing here is a drill that's taking place in one of the downtown subway stations. There's been a bomb attack on one of the trains that's still in the tunnel. And we've been seeing people being evacuated from that train. Many people were injured. And what we're seeing is an integration here of the military and also of civilians and fire personnel. And you can see here, they're simulating a potential gas attack.

And so this is really what Seoul officials say is making sure that they are ready for any kind of scenario. It is very important for them, they say. This is just an annual event, the civilian defense does want to make sure that they are ready for any kind of attack and that they can have the kind of emergency response that you need in a megacity like the South Korean capital.

Now there were around 160 people involved. As I say, it is an annual event. And it's hard to have a much bigger military drill. We're seeing around 50,000 South Korean personnel and military officials. We're seeing 30,000 U.S. troops involved in a much bigger military drill.

And interestingly at this point there has been a rather muted response from North Korea. In the past, they have been particularly angry when they've seen this kind of thing.

Paula Hancocks, CNN, Seoul.


LU STOUT: Now, as part of our CNN Freedom Project initiative, we're taking a closer look at sex trafficking in the United States. Now there, it's estimated that up to 300,000 adolescence are at risk of becoming commercially exploited for sex each year.

Now joining us to talk more about trafficking in America is CNN's Adriana Hauser -- Adriana.


Well, according to the United States Department of Justice, South Florida, which is where I am, is the third busiest sex trafficking region in the country. And as you know, Kristie, sex trafficking and prostitution are very, very closely linked.

So what we have done over the past several months is we have collected the testimonies of women who were either trafficked as children and also the testimonies of women who see prostitution as the only option to survive. And we did this to better understand this industry. Today, we hear the story of Kat Rosenblatt, a very inspiring woman who turned a painful past into positive action. Let's take a listen.


HAUSER: Katerina Rosenblatt says she was only 13 when her mother, escaping an abusive relationship, took her to live in a hotel in Miami Beach. She remembers her mother worked long hours and she wandered alone.

KAT ROSENBLATT, SUVIVOR OF HUMAN TRAFFICKING: Soon enough, there was a trafficking ring that spotted my vulnerability, being alone, having low self-esteem, coming from a dysfunctional home life. You know, they spotted that. And so there was an older girl that recruited me. And she came up to me as a big sister.

And so she was 19 and thin and pretty and everything I thought I wanted to be.

HAUSER: Kat says the girl's name was Mary and she had a plan.

ROSENBLATT: She introduced me to her pimp. And I didn't know he was a pimp. I didn't know he was a scam artist at the time. I thought he was just a nice man, like a father.

HAUSER: Soon after, she remembers finding herself inside a hotel room, dressed as a bride, convinced she was playing a game. She remembers the locked door and drugs on the table.

ROSENBLATT: This guy, who was half dressed, with a beer belly hanging our, ready to partake in his transaction. He had negotiated the price with Mary. I should say, 20 years ago, the price was $550 for a virgin girl.

HAUSER: Kat says that time she managed to talk and plead her way out of the situation. But soon after, she said she was tricked again, this time by a friend's father.

ROSENBLATT: It came in a place that you would never suspect it, and that was in my middle school. I was in seventh grade and they blind-folded us and took us to a brothel in Broward County -- from Miami to Broward. They had paid her father $40 for each of us.

HAUSER: She doesn't remember how long she was there for and how many men came by.

ROSENBLATT: And they let me know what would become of me if I ever told anyone. They told me that they knew where I lived, they knew who my teachers were, and knew what school -- they knew everything about me. There was nothing I could do to protect myself. And at 14-years-old, I didn't even know where to begin.

HAUSER: She dropped out of school and became addicted to drugs. Prostitution didn't seem so foreign any more. She met up with a pimp. Her dreams were crushed.

ROSENBLATT: I'm nothing but a drug addict and I guess a prostitute for these guys. At 15, I had given up on myself. I belong to the street. I belong to whoever would show me kindness, or give me cocaine.

HAUSER: More than 20 years ago, a drug overdose and a customer with AIDS scared her so much she ran away from that life and never looked back.

ROSENBLATT: And I just remember waking up and walking away and saying I'm done with this. I'm never going back there. These people could care less about me. They would kill me if they could.

HAUSER: It was not until recently that she dared to tell her story. Her motivation was to help girls in her same situation. Now, Kat works along law enforcement to help them better understand the industry. She also started an organization that provides shelter, support and counseling to victims of trafficking. The name: There Is Hope For Me.


HAUSER: Kristie, and other than these painful testimonies, in the next few days we will also take a look at what the authorities are doing at local, state and federal level to fight this very perverted industry that according to the United Nations generate more than $32 billion worldwide -- Kristie.

LU STOUT: Yeah. Looking forward to that. And that report, very powerful -- both brutal and inspiring. Adriana Hauser there, thank you.

And as Adriana said, Kat's story is just the first in a weeklong series on sex trafficking in Florida. And News Stream will bring you more powerful testimonies throughout the week.

Now he says that he found a big security flaw in Facebook's system. So why is this IT researcher not being rewarded for it like others have in the past? We've got his story coming up next on News Stream.


LU STOUT: Welcome back.

Now this week on Leading Women, we'll introduce you to Diana Mulligan, president and CEO of a leading Fortune 500 company. Now she grew up in a small, rural town and has broken down key barriers on her way to the executive suite. Felicia Taylor sat down with Mulligan to hear about her path to success.


FELICIA TAYLOR, CNN CORRESPONDENT: In New York City, an insurance giant dating back more than 150 years is now lead by its first female CEO.


TAYLOR: Diana Mulligan.

The day's busy agenda includes getting an update on a customer research project.

UNIDENTIFIED FEMALE: Trust is just sort of a blanket thing.

TAYLOR: As head of The Guardian Life Insurance Company of America, Mulligan oversees about 5,000 employees, providing customers with everything from life insurance to investment services.

(on camera): What's been the greatest challenge in getting into that corner office?

MULLIGAN: The way I've thought about my entire career is am I working on something interesting today? Is what I'm working on impactful to the broader society in some way? If so, yes, I'll keep doing it. I ended up in the corner office. But, you know, it wasn't as though there was a goal and I was trying to overcome challenges.

TAYLOR: Mulligan became president and CEO in 2011, Managing a business with more than $12 billion in sales, according to the company.

MULLIGAN: The board was clearly very excited yesterday.

TAYLOR: At a meeting with her top managers, it's hard to miss that she's the only woman in the room.

MULLIGAN: In my career, I've been surrounded by a lot of men. And so at this -- you know, after 23 years I don't really think about it that much anymore. I wish more women would see the opportunity in insurance and financial services and come our way.

TAYLOR: And are there really opportunities?

MULLIGAN: I mean, obviously I'm here, right? When I was in business school, I didn't think about being a CEO of a Fortune 500 company, because there weren't any. Today, there's so much publicity around female CEOs that I think young women coming through school today actually do believe it's a possibility. I think the opportunities are absolutely there.

We've got two more today.

TAYLOR: Mulligan says taking math and science in school is key for a career in the insurance industry.

MULLIGAN: One of the things that I'm actually working on is making sure that girls see the opportunity and actually the necessity of studying math and science, because I think without the STEM background, the science, technology, engineering, mathematics, girls are closing down opportunities without even realizing it for careers later on in life where they need that background.

TAYLOR: What inspires you?

MULLIGAN: Well, nature energizes me and I think it is because I grew up in the midst of farms and I spent a lot of time outside as a child.

Children inspire me, because they have so much hope and so little fear.

The people who work for this company inspire me. I feel they deserve to have the best leader that I can possibly be. So that's definitely an inspiration.


LU STOUT: And next week, we'll bring you more of our conversation with Diana Mulligan. Now she's been reading the stock tables since she was just 9 years old. And this early love of numbers helped pave the way to her business success.

For more Leading Women, log on to our website

Now you probably still have some CDs in your collection, but when was the last time you actually bought one? Still ahead right here on News Stream, we'll take you to the country where despite being able to buy music digitally, CD sales are still on the rise.


LU STOUT: Welcome back. You're watching News Stream. And let's return to our visual rundown now.

In a few minutes, we'll tell you why most Japanese people still buy music on CDs. But now to the story of a Palestinian IT security researcher who says that he recently found a big glitch on Facebook. He says he tried to warn Facebook about the flaw, but when staff didn't appear to take him seriously, he decided to take the matter all the way to the top of the company.

As Jim Clancy reports, he is now being criticized instead of rewarded.


JIM CLANCY, CNN INTERNATIONAL CORRESPONDENT (voice-over): Khalil Shreateh is a 30-year-old information technology specialist who fairly rocked Facebook's world last week with a single post. You see, Shreateh used his barely-running five-year-old laptop to find a security breach no one else has ever uncovered, and he showed it to them by posting to Facebook founder Mark Zuckerberg's personal timeline.

KHALIL SHREATEH, PALESTINIAN IT SPECIALIST: to find a way to post to other Facebook users' timeline, this is dangerous, so dangerous, because it will allow people to make public ads without paying Facebook money.

CLANCY: In other words, spammers could post ads to anyone's timeline on Facebook, whether they were friends or not. Shreateh showed us copies of his e-mail exchanges with Facebook security experts, who at first said it wasn't a bug, and then said they couldn't see it even when he posted on the timeline of one of Zuckerberg's friends.

If they wanted proof, Shreateh thought, he would give it to them.

SHREATEH: So, I posted to Zuckerberg's timeline, making one print- screen and opening the post, making the second print-screen, and immediately, less than one minute, I got some security software engineer asking me, "Please, send all the details to my e-mail."

CLANCY (on camera): Shreateh lives in the bustling city of Yatta, south of Hebron on the West Bank. Unemployment here hovers above 22 percent, and it's especially tough on young people. Khalil himself hasn't had a job in two years. He was hoping that Facebook would reward him for the security flaw he discovered, but apparently, that's not to be.

(voice-over): Facebook says it regrets that Khalil Shreateh broke the terms of agreement by posting on Zuckerberg's personal page. Therefore, he's not eligible for a cash reward that he estimated would be anywhere from $500 to several thousand dollars.

SHREATEH: I really needed that money. I spent more than two years looking for a job. Jobless everywhere here. Cannot find a job, it's hard to find a job.

CLANCY: He has become a local celebrity, with the media and small crowds gathered outside his home. And up in the city center, we sample the local opinion in the matter.

(on camera): Does Khalil deserve money from Facebook?


CLANCY: For finding this?


UNIDENTIFIED MALE: And deserves a job and deserves some position in security for them.

CLANCY (voice-over): Shreateh says he has gotten other job offers, but he thinks many are from hackers who want to exploit his discovery, and he wants no part of that.

SHREATEH: Really, I feel proud to be a Palestinian and finding something like that on Facebook. I'm really proud.

CLANCY: Jim Clancy, CNN, on the West Bank.


LU STOUT: Great story. And as Jim just mentioned, Facebook, it normally rewards people who alert them to bugs in their system. The company has paid up to $10,000 per bug found. And so far they've paid out more than $1 million in reward money.

Now Google also has a similar reward program, having paid out about $2 million total.

And Microsoft has a program that pays up to $100,000 per bug that's brought to its attention.

Now Facebook is now stranger to hackers. The company often boasts about the hacker culture at the company, so much so it's even honored them with their address with a road around their headquarter that's called Hacker Way.

Now for many people, this image evokes nostalgia, the CD has gone the way of the cassette tape and the vinyl record as music consumers buy digital tunes. But that's not the case in Japan.

Now Pauline Chiou finds out why they're still devoted to the compact disc.


PAULINE CHIOU, CNN INTERNATIONAL CORRESPONDENT: For loyal fans of the Japanese pop group Baby Raids, the chance to sing and dance with the group's five members apparently isn't enough, they want to meet the girls one-on-one, to shake hands, to interact, maybe even to get a thumbs up.

The price of such an encounter, the tickets come free if you first buy the special edition CD single for between and $10 and $16.

This enthusiastic fan bought 20.

SUGURU HASHIBA, BABY RAIDS FAN (through translator): I want to shake hands, talk with them about stuff and be cheered up directly by them.

CHIOU: CDs might be past their prime in many parts of the world, but in Japan they are still going strong.

Physical media like CDs and DVDs make up 80 percent of music sales here, compared to just 34 percent in the United States and 49 percent in Britain.

The Japanese now buy more CDs than consumers in any other country. And CD sales rose in 2012 while the number of digital downloads fell.

Industry experts say a major factor is the value Japan's consumers place on having a material item.

KOTARO TAGUCHI, RECORDING INDUSTRY ASSOCIATION OF JAPAN (through translator): One time, a foreign retailer told me that Japanese people don't mind the prices, but do care about what comes with the CDs. That made me realize that in Japan's packaged music culture, CDs always come with special goods, like DVDs, booklets and photo albums.

CHIOU: Artists have responded by issuing limited edition CDs, adding more elaborate packaging, or intricate art work. Another contributor to the trend, age. Japan's customer base is getting older and clinging to the technology of their youth.

TATSUYA MURAKOSHI, VICE MANAGER, TOWER RECORDS (through translator): Especially customers who are in their late 30s or older, who grew up in the packaged music era. They have a tendency to buy CDs.

CHIOU: This attachment translates to better profits for recording companies, which can charge more for each physical sale than a digital download.

The Baby Raids and other Japanese bands like it, are trying to build on this trend, enticing supporters into buying 10 or 20 of each CD single just to get the chance to spend more time with the girls.

ERIKA DENYA, LEADER, BABY RAIDS (through translator): We can't be more thankful to them for buying so many CDs just to talk to us.

CHIOU: A small price to pay for these devoted fans, and one that's paying off for Japan's music industry.

Pauline Chiou, CNN, Hong Kong.


LU STOUT: But the CD is not the only bit of old technology that still thrives in Japan, the Fax machine remains popular. In fact, according to The New York Times, 100 percent of businesses and nearly half of all homes own one. That as of two years ago. And one expat rider says that he found that many Japanese companies would not accept paperwork by email. He also writes that businesses there still do not take credit cards, instead they insist on good old fashion cash, which ironically you can use to buy some of the newest high tech gadgets in the world. But bear in mind that 24 hour ATMs are hard to find in Japan, most are kept inside the banks, which mean they close at the end of the business day.

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