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CONNECT THE WORLD

Palestinian Youth Clash with Israeli Security in Jerusalem; Shia Militias Push Back Against ISIS; In Brazil, You Can Rent a Friend for a Day; Demonstrations in Tahrir Square on Anniversary of Morsy Ouster; Kurdish Independence Push; Exodus from France; Middle East Tensions; Jordan's Farmers Suffer; Dubai Market Tumbles; Qatar Economy; Oil Prices Down; Pay TV Powerhouse OSN; Bollywood Heavyweights

Aired July 3, 2014 - 11:00:00   ET

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


ATIKA SHUBERT, HOST: Welcome to a special edition of Connect the World live from Jerusalem. The top stories this hour, cross border tensions

erupt between Israel and Gaza again as anger flares over the death of a Palestinian teen in Jerusalem.

Israel hits Gaza with several air strikes after rockets from the Palestinian territory fell on Israel. There are also reports that Israel

has moved reinforcements towards the Gaza border.

The U.S. is stepping up security on flights headed to America from Europe and the Middle East. Passengers can expect closer inspection of shoes and

electronics, and in some cases another level of screening at bordering gates. The new security measures are said to be prompted by intelligence

reports...

Now, I understand that we have a live report coming in from Jerusalem soon. I understand that Ben Wedeman is on the ground in Jerusalem where a number

of clashes are happening. We're going to go straight to Ben who is out in the field. Ben, what's the latest that you can tell us?

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Yes, Atika. We in Shofat (ph) where just up the hill there's more than 100 Palestinian youth who

have been there for several hours already throwing stones in the direction of the Israeli police and security. And of course they're firing back with

stun grenades and rubber bullets. But now, of course, the Israeli authorities are telling us we need to move back.

Here, why don't you just -- here, this guy is telling us to move back.

So, the situation remains tense. And were at the house of Mohammad Abu Khedair, that 16-year-old Palestinian youth who reportedly was abducted and

killed in West Jerusalem, that situation is just one of the reasons for this tension, which is, of course, also the result of years of frustration

among the residents of this part of Jerusalem who complain of discrimination by the Israeli authorities, of poor municipal services

despite the fact that they have to pay taxes to Israel.

So, there's many reasons for frustration among many people -- yeah, just hold on, my friend. Hold on. Many reasons for frustrations among the

residents of Shofat (ph) in addition to, of course, the killing of 16-year- old Mohammad Abu Khedair -- Atika.

SHUBERT: What more do we know about the details from the family in terms of a funeral coming up? This is obviously going to be a time of great

tension and anger, but what are the preparations now in place to try and keep things calmer once this funeral actually happens?

WEDEMAN: Well, we were at the house of Mohammad Abu Khedair. We spoke with his father and his uncle and others there. They are still waiting for

the body to be released by the Israeli hospital authorities.

Can you just hold on one minute. Just relax, relax. OK.

UNIDENTIFIED MALE: There.

WEDEMAN: We're live. You're live on CNN. Will you just relax?

UNIDENTIFIED MALE: Please. Please. Thank you.

SHUBERT: Ben, I can see there that they're trying to move you on?

WEDEMAN: There will be a funeral. It's OK, stay with me, Atika. They will have a funeral.

Stop.

But they insist that even if they receive the body at night, they want the funeral by day. Of course, this is something that will attract thousands

of people and will obviously be an occasion for increased tension -- Atika.

SHUBERT: Well, thank you very much for keeping us up to date on that. As you can hear there from Ben, still very much a volatile situation there on

the ground in Jerusalem where there has been that most recent boiling over of anger there after the killing -- a kidnap and killing of a Palestinian

teenager.

Now we're going to go to another region in the Middle East, into Iraq where we've seen a number of developments there.

We have Arwa Damon who is live for us in Baghdad. She has been talking to a number of Shia militia who say they are now prepared to fight with ISIS.

Arwa, what's the latest that you have for us today?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, a quick update on the situation on the ground. Iraqi security forces and the government saying

that they have made numerous gains against ISIS fighters just coming out with a statement saying that they killed 88 ISIS fighters in battles taking

place in Salahuddin Province. Also reportedly pushing back the front line in Diyala Province as well.

That being said, the U.S. has also released its initial assessment on the capabilities of the Iraqi security forces saying that they do believe they

will stand and fight when it comes to protecting Baghdad, but also the U.S. raising concerns about ISIS advances from the northwest towards the Baghdad

airport. And that is the front line that we traveled to with a Shia militia.

(BEGIN VIDEOTAPE)

DAMON: We find the front line about 25 kilometers from Baghdad's airport. These Shia fighters are with the Abu al-Fadl al-Abbas brigade.

Many of them are hiding in the open field in front us.

You can see them in the distance. You can see them in the grass.

Mortars fired by conventional Iraqi forces thud in the distance. That is where we are told the ISIS positions are.

The sounds of the mortars that we're hearing are outgoing. And this village they moved into it at dawn about a few hours before we arrived. And we can

see their men that are at their current front line just over there.

At 5:00 a.m we began creeping in, just to the edge of the orchards," battalion commander Abu Mou'amal al-Lami says. "Our special forces entered

first, just with knives."

These men are experts in unconventional guerilla warfare. Al-Lami was trained as a special forces officer under Saddam Hussein. He then became a

member of one of the Shi'a militias that fought the Americans, though he won't tell us which one. In fact, many of these men are now applying

skills they learned from attacking U.S. troops.

And they are fresh off the battlefield in Syria where the brigade was formed by Abu ali al-Darraji. He was in Syria with his family, applying

for asylum in the west when the Syrian revolution took a sectarian turn.

"Our holy shrines are a red line," he says.

Fighters from Iraq flooded in to protect the Syrian shrine of the prophet's granddaughter, Sayyida Aaineb, sacred for the Shi'a.

The brigade grew in strength battling alongside the Syrian regime's tanks against the rebels.

"We returned to Iraq about a month and a half ago," al-Darraji tells us. "We knew that ISIS would be planning on coming to Iraq."

Now wearing Iraqi military uniforms, for these hardened fighters deployed to one of the fiercest front lines, it's a battle to the death.

After overrunning an ISIS position, they show us what little the ISIS fighters left behind.

60 millimeter mortar round that they found with them.

This is a scope for an anti-tank weapons system that they also found.

Pumped by their successes, they dance.

"Where are you ISIS today? We will damn you," they chant.

But it is perhaps this country that is already damned. Al-Darraji still plans on applying for asylum in the west someday. Once the Shi'a shrines

are safe, he says, there is nothing more to keep him here.

(END VIDEOTAPE)

DAMON: And Atika, the reason why he says he feels that way is because he has very little faith that Iraq's politicians will be able to come together

and form the type of unity government that would ensure this country's long-term stability and security.

SHUBERT: Arwa Damon for us live in Baghdad, the Iraqi capital there. Thank you very much.

Well, one year ago today Egypt's President Mohamed Morsy was overthrown in a military coup. This was the scene in Tahrir Square that day as Morsy

supporters packed the street.

But right now, security forces are on high alert in Cairo. Protesters have promised a day of rage.

Now media reports say an explosion on the outskirts of the capital killed two people early this morning.

A pro-Morsy alliance has called for mass demonstrations and marches today. Ian Lee joins me now from Cairo. Ian, what is the scene like there right

now?

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Well, Atika, these massive demonstrations that the Muslim Brotherhood were calling for today haven't

seemed to materialize quite yet. We have seen some demonstrations. The numbers have been lower, the intensity not so great. But it is still

daytime here. We're expecting thing to pick up after Iftar, after protesters break their fast. There's still a lot of day left.

But there have been already five bombings around Cairo this morning. You talked about two of them. There have been three others. One of the people

killed, though, was a bomb maker. And these bombs have been small, they have been amateurish as the government has called them at times, not

something sophisticated as we've seen a couple of times here before, or the kind of bombings you see in Iraq.

Well, what we're witnessing, though, is the government going all out on the Muslim Brotherhood, committing to total war. They arrest people. People

have been killed. And there's also those in self-imposed exile. And really the government isn't going to allow the Brotherhood any room. There

has been talks earlier last year about some sort of reconciliation. At this point, it doesn't seem like reconciliation with the Muslim Brotherhood

is on the table, Atika.

SHUBERT: No. And I was -- I mean, it seems as though Egypt's leader al- Sisi has somehow consolidated his position.

I mean, it's an amazing turn around from what we saw just a few years ago. And then of course we saw those people in Tahrir Square a year ago.

What is the future,then, for people like Morsy for those that are now in the opposition?

LEE: Well, definitely for those who are in the Muslim Brotherhood and the high ranking Muslim Brotherhood members, it is a grim future for them.

We've seen most of the high upper echelon already given death sentences. Now it's -- we're unsure if those will actually be carried out. There's a

long, lengthy appeals process.

But it seems like there's no room for the Muslim Brotherhood now.

And when you talk about other opposition groups are groups that don't necessarily go along with Presidnet al-Sisi who may disagree with him.

Those groups are treading carefully right now. Most notably is the Salafi movement here in Egypt, which did remarkably -- I think surprised a lot of

people in the first round of Parliamentary elections after the revolution. They have been somewhat hesitant to fully back the government, although

they did initially last year. Now there is a bit of internal fighting.

But really what we're seeing from the opposition is they are playing it cautiously if they go against the government too hard. We've seen a lot of

opposition members, secular ones, liberal ones, thrown in jail as well, Atika.

SHUBERT: Thank you very much. That's Ian Lee for us live in Cairo.

Well, still to come, the violence in Iraq has raised suggestions of an independent Kurdistan. We'll be speaking to the foreign minister of the

Kurdistan regional government later in the show to find out just how real that could be.

And we'll also be switching gears to the World Cup. We look at how tourists are renting friends in Rio. It's a booming business in Brazil.

We'll explain that later.

(COMMERCIAL BREAK)

SHUBERT: You're watching CNN. And this is a special edition of Connect the World with me, Atika Shubert in Jerusalem. Welcome back.

Now we have reports of clashes in Jerusalem today after a day of heavy street violence. The family of 17-year-old Mohammad Abu Khedair is waiting

for Israeli authorities to conduct an autopsy and return his remains. His charred body was found in Jerusalem on Wednesday.

Israel says its war planes attacked 15 Hamas targets in Gaza after more than 20 rockets were fired into Israel over the last two days.

Now a short while ago, I spoke to Yishai Frankel, he is the uncle of one of the Israeli teens killed recently in the West Bank. This was his message

to those behind the recent killing.

(BEGIN VIDEO CLIP)

YISHAI FRANKEL, UNCLE OF NAFTALI FRAENKEL: We are pained and grieved by the kidnapping and murder of the three Israeli teens one of whom is my

nephew Naftali. We're in the midst of the days of mourning. Unfortunately and tragically we heard yesterday morning about the kidnapping and brutal

murder of a Palestinian boy in Jerusalem.

The police, from what we hear, does not yet know the motive or who the killers are, but we want to be very clear stating that a crime is a crime,

a murder is a murder. Thou shalt not kill is directed at any human being. And the murder of an Arab is equal to the murder of a Jew or a Christian,

and us, who have been victims of, you know, such terror condemn any such act from any side. We condemn it in every possible way.

SHUBERT: What do you say to those people who are calling for revenge in the name of your nephew?

FRANKEL: You know, we underwent a tragic sequence of events here of 18 days of not knowing the fate of my nephew and his friends. And then, you

know, hearing about the tragic murder.

We call and urge everyone to continue to show this restraint. Any actions should be carried out by our government, by the legal system, and we call

out very clearly to anyone we refrain from revenge. This is not the spirit of our sons, this is not our spirit. Our spirit is that of kindness, of

togetherness, and you know the small people who call for revenge this is very different in diametrically opposed to what we believe in and what we

call for.

(END VIEO CLIP)

SHUBERT: Now you saw there images of the funeral for those three Israeli teenagers - it was really a nation united in grief. And also there are

pictures of Mohammad Abu Khedair as the Palestinian teenager recently killed.

Now at the heart of all of this latest unrest is the issue of violence towards children and adolescence. Many people are asking how to protect

the young and what impact cases like this will have on them.

Well, Ddr. Danny Brom of the Herzog Trauma Center has been studying that issue and he joins me now.

Thank you so much for talking to us.

Tell us a little bit more about this particular impact of violence and the threats of violence have on children and adolescence. How do they process

all of this?

DR. DANNY BROM, ISRAEL TRAUMA CENTER: Well, of course it depends on whether you're talking about small children, older children, adolescence.

Small children we know now, and we've done a study on small children in (inaudible) where already for 14 years there is daily -- almost daily

attacks.

So for small children, it's very clear that the mother and the father are the main issue. If they can continue to regulate how they react, then the

children will be OK. If you go to higher ages, then they need explanations. They need to understand what is happening, why is it

happening and will it happen to me? What are the chances that it will happen to me and who is going to protect me. And again, there the parents

can be very important.

And then you get into adolescence, and there it becomes very complicated, because there you see that if a adolescent becomes problematic, when he has

difficulties processing it, he might go into sensation seeking in order to understand what's happening. Like some of the youngsters say, you know, if

I can be killed, I can as well kill myself.

SHUBERT: So, that feeling of a cycle of violence that could continue into the future. And you mentioned adolescence, there is a particular issue

these days with social media, Facebook, Twitter, all kinds of different ways in which this affect of violence is somehow amplified.

And you've done a special study on this. Can you tell us about that?

BROM: We didn't really study this, but it's so clear that Facebook and all social media basically give you a feeling you can say anything. There are

no boundaries. And as we know from our development you have all kinds of thoughts. Thoughts are OK, but you don't say everything and you do

everything. Now it seems that in Facebook it's OK to say whatever you want and whatever comes up.

SHUBERT: We've seen a number of calls for revenge, for example, and hate speech and so forth being posted online as it was after those three

teenagers were laid to rest on Tuesday. That seems to have only exacerbated things and made things worse, a lot of that coming from

adolescents. Does that fit the pattern you've been seeing.

BROM: Yeah, the central element of coping with these kinds of things is the regulation of emotions. Are we adults able to regulate our emotions?

Well, if you look on the street not very well.

And if we can't do it well, then our children won't be doing it well. And that's where it gets problematic.

SHUBERT: Well, thank you very much for taking the time to talk to us. I appreciate that.

That's Dr. Danny Brom of the Herzog Trauma Center.

Now we have in depth coverage of this developing story on our website. If you go to CNN.com to get the latest, including this article from peace

campaigner Alan Elsner. He argues that the only solution to the killing of teenagers this week is not an escalation in an already volatile situation.

Well, we're live from Jerusalem. This is a special edition of Connect the World. And coming up, we're going to switch gears a bit and move to the

World Cup. You're visiting a new city and know no one? No problem. We'll look at the start-up that hooks you up with a friend at the World Cup in

Brazil who will show you around.

(COMMERCIAL BREAK)

SHUBERT: Live from Jerusalem at a time of heightened tension, you're watching Connect the World. Welcome back. I'm Atika Shubert.

Well Algeria's football team got further than ever before in the Brazil World Cup and were welcomed as heroes when they flew home. Now they could

win every more fans worldwide. Star striker Islam Slimani has been reported as saying that the team will donate the $9 million they received

in prize money to the people of Gaza. Slimani apparently said they need it more than us.

Now the final stages of the World Cup almost upon us. Fans will soon be on their way to the world's favorite part city Rio de Janeiro. Some of them

will be going alone, but as Isa Soares reports it doesn't have to stay that way.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Stephane a tourist from France, is about to take a tour with a complete stranger, a local he has

just hired for the day to be his friend. He's paying Lais (ph), a lawyer based here in Rio de Janeiro, to be his local friend, to show him the

hidden spots of the city, places that a guidebook fail to show.

A friend of his also joins the tour to see what it's like. Their first stop, to try some of the city's best savory pastries.

UNIDENTIFIED FEMALE: You can see there, Moearta (ph). And everybody come on Sundays and look at the sunset.

SOARES: Over a bite, they take in the view. And with Lais (ph) there, there is no need for a map.

UNIDENTIFIED MALE: There was the building, you know, there's a cross.

UNIDENTIFIED FEMALE: Mota Fogul (ph) there downtown.

SOARES: Renting a local friend has become a popular worldwide business, especially in Rio de Janeiro where tourists look for alternative and

creative tours during the World Cup. Created by Dennielle Cunha, the website Rent a Local Friend has more than 3,000 members, all of whom have

been approved by the company.

DANNIELLE CUNHA, CEO, RENT A LOCAL FRIEND: We have chefs, we have bankers, we have doctors, we have lawyers, we have people who work for start-ups.

So there's basically everything you can imagine. And the idea is some do it for complimentary income, and others -- and the majority -- they do it

for the interesting meetups.

SOARES: For Stephane who is visiting Rio for only three days and has no time to lose, this is more than just about making friends, it's an

opportunity to see how Brazilians live and play, what it's like to be Brazilian.

STEPHANE BENFEGHOUL, TOURIST: That's why I did a local friend, because I do not really like standup tours, tailor made tours.

SOARES: So Lais (ph) is not taking him to Copa Cabana beach where all the tourists go. Instead, she showing him Rio's unspoiled and pristine

beaches.

BENFEGHOUL: And this place is not for local people?

UNIDNETIFIED FEMALE: I think it's more for local people.

BENFEGHOUL: Local people.

SOARES: For Lais (ph), this is an opportunity to show her Rio.

UNIDENTIFIED FEMALE: I live here alone in Rio and I want to make friends, but for me I like to show my favorite places and make extra money in my

spare time.

SOARES: For the local friend can charge anything up to $150 for four hours, from that, the company takes 30 percent. But for the local tourist

who has never been to Rio and who wants to see the city inside out, well it pays to hire a friend.

Isa Soares, CNN, Rio de Janeiro, Brazil.

(END VIDEOTAPE)

SHUBERT: Now, I understand we have some live pictures coming in from Shofat (ph) north Jerusalem where some of those clashes have been ongoing

between Palestinian residents there and Israeli police. This is the same neighborhood, of course, where that Palestinian teenager Mohammad Abu

Khedair was abducted and apparently killed.

He has -- the body has not been returned to the family yet. They are still waiting for an autopsy. And of course then they are hoping to bury him if

not today, then at the earliest point tomorrow.

But as you can imagine, tensions rising in that neighborhood as you can see there pictures of some of the stone throwing and tear gas and stun grenades

there.

Well, we'll have more on that and the latest world news headlines just ahead.

Plus, the leader of Iraq's Kurdish minority calls for a vote on independence, so we'll be speaking with the foreign minister of the

autonomous Kurdish region coming up next.

(COMMERCIAL BREAK)

ATIKA SHUBERT, HOST: This is a special edition of CONNECT THE WORLD live from Jerusalem. The top stories this hour.

Cross-border tensions erupt between Israel and the Palestinians again as anger flares over the death of a Palestinian teenager in Jerusalem. Israel

hit Gaza with several airstrikes, saying rockets from the Palestinian territory had fallen in Israel. There are also reports Israel has moved

reinforcements towards the Gaza border.

The US is stepping up security at airports in Europe and the Middle East where direct flights depart for US cities. Passengers can expect closer

inspection of shoes and electronic devices. In some places, extra screening will take place at boarding gates. The new measures are said to

be prompted by intelligence reports that terrorists could be making more sophisticated bombs.

Also, the US embassy in Uganda is warning Americans about a potential terror attack at the country's main airport. The warning concerns Entebbe

International Airport near Kampala. It's based on information from Ugandan police. Intelligence sources say there is, quote, "a specific threat" from

an unknown terrorist group of an attack on the airport this evening.

Eight people were killed and seventeen wounded in western Baghdad on Wednesday after two blasts targeted people leaving a Shia mosque. Also on

Wednesday, Iraq's prime minister declared an amnesty for Sunni tribesmen who fought against the government, but not for anyone who killed Iraqi

troops. The move is aimed at easing sectarian tensions.

Well, Iraq's Kurdish region has taken a step closer to possible independence. The president of the autonomous state has asked lawmakers to

prepare for a referendum.

Now, take a look at this map. The Kurdish region is in the north, there, in yellow. As the Sunni organization ISIS has made violent advances, the

Kurds have also expanded their territory. The president hasn't yet set a timetable for an independence vote so far.

Now, joining me now is the foreign minister of the Kurdistan regional government, Falah Mustafa Bakir. He is in Washington. Thank you very much

for joining us, sir. Can you tell us a little bit more about this referendum? I know no timetable has been set, but how quickly can this be

done, and what will happen immediately after?

(SILENCE)

SHUBERT: I can't hear.

FALAH MUSTAFA BAKIR, FOREIGN MINISTER, KURDISTAN REGIONAL GOVERNMENT: No, I cannot hear anything. I did not hear anything.

SHUBERT: I'm not sure if we still have our guest, so I'm going to move on with that story, unfortunately. We'll have to move on, but some

interesting developments there if that referendum does actually come to pass.

So, we have a number of developing elements here in the Middle East. Of course, we're live in Jerusalem, where heightened tensions have continued,

now, for a number of days, of course, after those three Israeli teenagers who were kidnapped and killed were finally laid to rest on Tuesday.

And then, unfortunately, a day later, a Palestinian teenager also abducted and, apparently, murdered. And even now, as I speak, tensions continue in

Jerusalem, where we see a number of clashes still taking place.

Now, we have some updates on that particular case. Authorities in Israel have not yet made any arrests on those killings, but the family of 17-year-

old Mohammad Abu Khedair is waiting for Israeli authorities to return his remains for burial.

There is also CCTV video of Khedair being -- Abu Khedair being forced into a vehicle, but authorities have not yet released those videos. So, we are

waiting for more material to come in there form the police.

Now, I understand that our guest is, in fact, ready. We have, now, the Kurdish foreign minister with us for the Kurdistan autonomous region. We

heard a little bit about that referendum that is being planned, but still no timetable. Thank you very much for joining us, sir. Can you tell us a

little bit about how a referendum like this might take place, and how quickly?

BAKIR: Well, thank you for hosting me. Indeed, today the president of Kurdistan was in the parliament in order to discuss the mechanisms and also

to set up the date for a referendum. Today, we are facing a new reality in Iraq, a reality that has created a state next to us.

We have a border which is 1,035 kilometers next to us being ISIS. So therefore, that determines we have to think about our own future in the

midst of all this turmoil.

SHUBERT: I want to play a quick bite from (sic) you from Israeli prime minister Benjamin Netanyahu. On Sunday, he came out in support of an

independent Kurdistan. Here's what he had to say.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL (through translator): Regarding the Kurds, they are a fighting people. They have proved their

political commitment, political moderation, and deserve political independence.

(END VIDEO CLIP)

SHUBERT: I just wanted to get your quick reaction to that statement. What did you think of what he said?

BAKIR: Well, this is the true definition of the history of the Kurdish people. We have suffered a lot. We have been betrayed. We have been

divided against our will. We deserve a better future.

Indeed, we have continued to play a positive role in bringing about a new Iraq, but that failed. It failed not because of us, because of the wrong

policies in Baghdad. Therefore, we deserve a better future for the people of Kurdistan.

Today, we are committed to a dual-track path that will be helping the political process in Iraq, because even if we go for independence, we still

have to deal with Iraq as a neighbor. Therefore, the people of Kurdistan deserve a better future, and that could only come in -- through a

referendum and to have independence for the people of Kurdistan.

SHUBERT: I want to ask you about what some analysts have been suggesting ever since we've seen this resurgence of violence across Iraq saying that

perhaps Iraq as we know it shouldn't exist anymore, that it should be split up into a Kurdistan north and perhaps even Sunni-Shia divisions in the rest

of the country. When you hear things like that, even with your desire for independence in Kurdistan, what's your reaction?

BAKIR: Well, going back to history, Iraq is an artificial state. It was built on wrong foundation, a foundation that brought Sunnis, Shias, and

Kurds together. We were annexed to Iraq in order to keep that balance.

But any course if union will not survive. This was -- the wrongs of the past have to be remedied today. We were independent in 2003. We went back

voluntarily to build a better Iraq, and we were expecting that we would have a federal, democratic, pluralistic Iraq.

But unfortunately, in the last ten years, we have contributed positively to the success of this process, but Baghdad proved to be the wrong place

because the culture is not there. The mentality of power-sharing, wealth- sharing, of democracy, does not exist.

We had a golden opportunity for Iraqis in 2003 after the removal of Saddam Hussein in order to build that better country. That was the case when we

were talking about the federal state and when the idea of soft partitioning of three federal states within Iraq was proposed. We thought that that

would be an opportunity for all the communities in Iraq to have it.

And the fact is, Iraq is bi-national, multi-ethnic, and multi-religious society. We Kurds have to have a better future, because we want to have

our own rights. But unfortunately, we were not treated as equal partners in the process.

So today, the new reality requires the new policy, a policy that we have to secure our own people, we have to defend our own people, and to secure a

better future for them. We can't do that when we have 1,035 kilometers of border with ISIS and only 15 kilometers that we share with the rest of

Iraq.

SHUBERT: OK. Thank you very much for giving us insights into the new reality and the new policies needed. Thank you very much. That is Kurdish

foreign minister Falah Mustafa Bakir.

Well, we're going to move now to Europe with a story that still has impact on this region. In France, many people in the Jewish community are on

edge. They say antisemitism is on the increase, and it's one reason thousands of them are packing up and moving to Israel. As Jim Bittermann

reports, some say the tense atmosphere makes it hard to be loyal to their culture and their country.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): At a Paris synagogue, a farewell ceremony. Hundreds gather to say good-bye to

some of the growing number of French Jews who are pulling up stakes and moving to Israel.

According to the Jewish Agency for Israel, 2600 French Jews have immigrated so far this year, and the agency expects the number to top 5,000 by the end

of the year. If so, it will represent one percent of the French Jewish community who are leaving in a single year.

Singal Adeline (ph) and her family are among them. They'll abandon their homeland July 16th, leaving just after one last Bastille Day celebration.

Like many who are leaving, they want a change from the depressing economy and the apparent growing antisemitism in France. Since her son was

attacked four years ago, she fears for the safety of her children.

Dramatic antisemitism attacks, like the recent deadly shootings at a Jewish museum in Belgium allegedly committed by a French citizen, make Jews here

nervous. But they point as well to the less-newsworthy insults and aggressions they say the face every day.

At the departure ceremony, the chairman of the Jewish Agency, Natan Sharansky, was presented a long list of French immigrants to Israel. For

Sharansky, once an immigrant to Israel himself, the surge in migration may also be a response to what he believes is the duplicity in the way Israel

is treated in European public opinion.

NATAN SHARANSKY, CHAIRMAN, JEWISH AGENCY FOR ISRAEL: Double-standards towards Israel, demonization of Israel, delegitimization of Israel. That

Jews have to choose whether to be loyal to the mood in Europe or whether to be loyal to Israel.

BITTERMANN: Not everyone who's leaving has such clear motives. For 22- year-old Edouard Hariri, who faces military duty after he arrives, it's a chance to get back to his Jewish roots. But he adds that while the rest of

his family is staying behind, they're keenly aware of the growing anti- Jewish sentiment in France.

EDOUARD HARIRI, PLANS TO MIGRATE TO ISRAEL: It's always been a question in my household or in the community of leaving, because it's not possible

anymore, and why stay? When it's always a question of do we leave, then maybe something is wrong.

BITTERMANN (on camera): In French, there are two ways of saying good-bye: "Au revoir," which means roughly "until we meet again," and "Adieu," which

is more final, more permanent. Some of those who are packing their bags may not yet have decided which of the good-byes they'll be saying.

BITTERMANN (voice-over): Some, like Hariri, say they may come back one day. But the fact that so many are immigrating just now says much about

the country they're leaving behind.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

SHUBERT: Now, we're coming up to the end of our news hour, but before we go, I'd like to just take a look at some of those live pictures that are

coming from East Jerusalem this hour. As we know from our report with Ben Wedeman, who's there, clashes have been ongoing there between Palestinian

youth throwing stones and Israeli police responding with stun grenades and teargas.

That appears to still be ongoing. And last night, we saw it spreading to other neighborhoods. We'll have to see whether or not that continues.

This, of course, is the neighborhood of Palestinian teen Mohammad Abu Khedair, who was kidnapped and killed yesterday. His parents are still

waiting for the autopsy to be concluded and his body returned for burial.

We'll bring you the latest developments as that news comes in. We continue to follow the police investigation and those street clashes.

I'm Atika Shubert and this has been CONNECT THE WORLD live from Jerusalem, at a time when the Middle East peace process seems more elusive than ever.

Thank you very much for watching. MARKETPLACE MIDDLE EAST is up next.

(COMMERCIAL BREAK)

JOHN DEFTERIOS, HOST: This week in MARKETPLACE MIDDLE EAST, we take a look at how conflict in Syria and Iraq are destroying farmers in neighboring

Jordan.

And we speak to the chief executive of pay TV network OSN about expansion and the right programming for the region.

The spread of ISIS through Iraq unsurprisingly will impact the Jordanian economy. After all, the kingdom shares a 180-kilometer border with Iraq.

And this follows three years of fighting in Syria, which has spilled into Jordan as well.

Often overlooked in this process is the impact this has on those dependent on exports via road transportation, like farmers. I had a chance to meet

many of them in the Mafraq region who are struggling to survive.

(BEGIN VIDEOTAPE)

DEFTERIOS (voice-over): This is Bedouin country in Jordan, where one can see a shepherd guide his flock right off a main road. Mafraq is a two-hour

drive outside of Amman, but just two kilometer or just over a mile from the Syrian border. Farmers on this land share tales of struggle. The arteries

of their work, roads through Syria on to Turkey, have been cut off by fighting.

MUSLIH AJAL MASSAEED, WOOD DISTRIBUTOR (through translator): It's difficult to go on with a business. At the moment, we can't do anything.

We gather wool and stop until Allah can send us a buyer.

DEFTERIOS: But their prayers, three years into Syria's civil war, have not been answered. Here's a sign of the desperate times: tons of sheep's wool

piled up in Massaeed's distribution yard, rotting with no place to go.

DEFTERIOS (on camera): Without safe passage through Syria, the wool doesn't make it to the market in Turkey, and Jordanians say the Romanian

farmers are filling the void. Eventually, because of the cost of storage, much of the supply may just have to be burned.

MASSAEED (through translator): Of course, the Syrian border is very important to us. Most of the source of our income to Turkey, and we were

pleased, and there was business flow.

DEFTERIOS (voice-over): In this nearby village, this tribal leader told me it is getting worse, since Syrian refugees now make up nearly one out of

every four residents, creating more tensions for whatever work is available.

NIMER AL FAWWAZ, TRIBAL LEADER (through translator): They Syrians took over so many jobs in the commercial sector, tailoring and farming,

especially cheap wages, working 10 to 15 hours a day.

DEFTERIOS: With little in the way of manufacturing in the rural areas, the government encouraged vegetable farming. The problem is, with no certainty

of getting goods through Syria and now Iraq, buyers in the wealthier Gulf states are looking elsewhere. Farmers say they are fetching just one-fifth

for the tomatoes compared to the last two years.

ABDULLA ABU SALEH, VEGETABLE GROWER (through translator): This year, it changed completely to a half a dinar a kilo. I don't know what it will

cover, the labor or insurance or spending on the farm or planting soil. It is expensive and it is a major negative impact on all farmers. No prices.

DEFTERIOS: This is a nascent industry here, and growers complain there's no government support a farming cooperative to help with distribution.

MOHAMED KHAIR, FARM OWNER (through translator): A farmer cannot be a farmer and a supplier. There should be a market regulator that controls

the production, with the help of the government.

SALEH (through translator): We already have been affected so hard and we might not produce after this year. No demand, and all the money we

consumed is such a waste.

DEFTERIOS: Financial relief is also in short supply, with the government under strain, due to the rising cost of refugees.

(END VIDEOTAPE)

DEFTERIOS: Farmers are encouraged to get into different products. Today, it's a fight for survival. Now, let's take a look at some of the business

stories which caught our eye during the week.

The Dubai financial market finished the month of June by entering bear market territory, with a loss of 22 percent. Uncertainties about

construction group Arabtec and its former CEO spreading to other property companies.

Qatar's economy bounced back in the first quarter of 2014, posting GDP growth of 6.2 percent. This followed a slowdown in the final quarter of

2014.

And oil prices came off their nine-month highs this week as exports continued in Iraq despite fighting in the heart of the country.

This week marked the beginning of the holy month of Ramadan. Of course, eating habits change, and so do TV viewing habits. When MARKETPLACE MIDDLE

EAST continues, we speak to the CEO of one of the largest pay-TV platforms in the region, OSN, to see what's on offer.

(COMMERCIAL BREAK)

DEFTERIOS: Welcome back to MARKETPLACE MIDDLE EAST. If one wanted to catch a Hollywood blockbuster or a leading US or British TV series, chances

are they'd have to catch it on OSN. It is a leading pay-TV platform here in the region. It continues to grow and evolve. Leone Lakhani spent the

day with its chief executive.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: OSN Plus, the streaming service that gives you everything you love about OSN --

LEONE LAKHANI, CNN INTERNATIONAL CORRESPONDENT (voice-over): Spanning 24 countries across the Middle East, OSN is home to 140 channels.

LAKHANI (on camera): So, this is your call center?

DAVID BUTORAC, CEO, OSN: One of three we have in the region. We have over a thousand customer-facing staff.

LAKHANI (voice-over): This is the man at the helm, CEO David Butorac, with nearly 30 years experience in the news business. Ninety-five percent of

OSN's revenues come from subscriptions, as opposed to advertising. The Middle East's multilingual viewers have access to hundreds of free

channels, so the company's CEO says keeping these diverse consumers happy tuning in and paying for content is a challenge.

BUTORAC: You have every country's free-to-air on a satellite dish. There is over 600 free-to-air channels, by and large in a common language, that

we are competing with. So, what we have to sell is premium so the consumer will subscribe rather than watch free.

LAKHANI: Butorac says consumers today also want more controls over that content. Just last year, Morgan Stanley studies showed a 50 percent

decline in TV viewers in the past decade, with online viewing increase. So, Butorac's business strategy embraces the multi-platform audience.

BUTORAC: We need to keep pace with consumer demand. But by evolving our platform as we have from a subscription-based multi-channel platform to an

on-demand platform to a subscription-based on-demand platform that is available not just on TV screens, but on tablets, on laptops, on

smartphones, and we can take content out to where the consumer wishes to consume it.

LAKHANI (on camera): Do you think TV networks will become obsolete, or online streaming and video-on-demand going to be more dominant?

BUTORAC: No, because it's actually watching content. If you actually look at what's happening today, the investment in primary content has never been

greater for the television screen. You now have Hollywood movie directors, movie actors, who are now doing television.

So, the consumer is getting more sophisticated in what they want, but as a broadcaster, we can deliver that.

LAKHANI: The competition now is global. People can log on and they can get things from America, from the UK, from everywhere. So, your

competition is not just here anymore, is it?

BUTORAC: Look, that leads to a very interesting issue, because some of that competition is, in fact, piracy. And the difficulty we have, even

with legitimate content, when a platform like ourselves purchases the exclusive rights to air movies, other platforms can't legally download into

this area, because we own those exclusive rights.

Now, I accept that it is increasingly difficult and the fight against intellectual property piracy is something that all broadcasters face as

their number one threat.

LAKHANI: What's your growth strategy, then?

BUTORAC: Well, the growth strategy is always to make certain that we provide compelling content and a reason to subscribe. On OSN, 77 of our

series are within 24 hours of US release.

The consumer wants to watch television seven days a week, not twice a week for 90 minutes at a time. And so, the opportunity for us to continue to

expand is to make certain we continue to offer relevant and premium content, whether it's English-language or Arabic-language.

Ultimately, we are an Arabic-speaking region, 93 percent of our new customers are Arabic-speaking. So, we deliver premium Arabic-language

content, and that's what makes our service compelling.

(END VIDEOTAPE)

DEFTERIOS: One way to entice TV subscribers and cinema-goers is to put star actors on screen. And you can get no bigger than the Bollywood

heavyweights, whose popularity reaches beyond India. Leone Lakhani has more

(BEGIN VIDEOTAPE)

LAKHANI (voice-over): The elaborate the song-and-dance sequences, the melodrama, all the ingredients of a classic Bollywood movie can be films

produced in Mumbai. In 2013, they racked up nearly $2 billion in revenue, according to the consultancy KPMG. But one of India's largest studies says

the Gulf Arab states are the main market outside India.

NELSON D'SOUZA, HEAD OF OPERATIONS MENA, YASH RAJ FILMS: In 2004, the Middle East market would contribute 4 percent to the entire overseas

international market. But since then, it's gone up to 30 percent.

LAKHANI: Yash Raj Films releases all its blockbusters in the region, like this one, "Doomed 3," featuring its biggest stars. The studio says 75

percent of its international sales come from the United Arab Emirates alone.

LAKHANI (on camera): Bollywood films are so popular here that they feature right next to the Hollywood heavyweights. Now, this theater says last

December, the Indian film "Doomed 3" was the third-biggest selling in the entire country, just behind "The Fast and the Furious" and "Iron Man"

sequels.

LAKHANI (voice-over): That's partly because these films are regular viewing for nearly 2 million Indians who live here. But it's not just

them.

D'SOUZA: The Arabs, the locals, as well as the Indians, Pakistanis, Bangladeshi, are watching. There are a few other nationalities who go in.

You have the Filipinos, who watch, since most of our films are subtitled.

LAKHANI: Analysts say part of the appeal are the cultural parallels between the regional neighbors.

MANJU RAMANAN, EDITOR, "FILM FARE" MAGAZINE: We are close geographically, so we have similar sensibilities and tastes. So, what works in India also

works in this part of the world.

LAKHANI: The Arab networks are catching on. The region's biggest broadcaster, NBC, launched NBC Bollywood last October. It's already

noticed a jump in the number of viewers from about 61,000 to nearly half a million in Saudi Arabia alone.

RAMANAN: Television will have to address Bollywood, because it's the biggest puller

UNIDENTIFIED MALE: Action!

LAKHANI: The proximity to India, less than three-hours flying time to Mumbai, makes the gulf an appealing filming location, like this Indian

satire shot in Dubai. Close not just geographically, but culturally, too, both on and off the screen.

(END VIDEOTAPE)

DEFTERIOS: And that's all for this edition of CNN MARKETPLACE MIDDLE EAST. Thanks for watching. I'm John Defterios. We'll see you next week.

END