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Global Sell-Off, Crackdown in Syria; On the Front Lines in Libya

Aired August 5, 2011 - 08:00:00   ET


ANNA COREN, HOST: Welcome to NEWS STREAM, where news and technology meet.

Hello. I'm Anna Coren, in Hong Kong.

World markets take a pounding ahead of the U.S. July jobs report. We'll have that for you very soon, as it's released in about 30 minutes' time.

Plus, a powerful typhoon lashes the Japanese island of Okinawa.

And what happens to victims of sex trafficking after they've been rescued? We'll talk to one organization about rehabilitating those freed from sexual slavery.

Down, down and down. The world's stock markets are on a slide. A deep sell-off led Wall Street to its worst day since the depths of the 2008 financial crisis.

Well, the Dow Jones suffered its ninth highest points loss ever on Thursday, closing down more than 512 points, or 4.3 percent. Well, Asian markets followed suit in Friday, with hefty losses on all the major indices. And it's a similar story in Europe.

With more on that, let's go to World Business Today's Andrew Stevens, who's live from Hong Kong's Victoria Harbour.

Andrew, certainly an ugly day here in Asia, and a similar scene unfolding in Europe.

ANDREW STEVENS, "WORLD BUSINESS TODAY": Yes, an ugly day just about anywhere you look, Anna. There's been so much gloom and pessimism, both on the U.S. economic outlook and also the debt crisis in Europe.

Just bring you up to date on the latest on the debt crisis.

Olli Rehn, who's the EU economic affairs commissioner, has been talking to the media. He's been trying to calm the markets. He's been saying that Italy and Spain are not in danger of requiring any sort of bailout, although he did say that the eurozone's 440 billion euro rescue fund -- this is a facility which countries can tap into -- is actually too small and does need to be enlarged. We don't know by how much at the moment, but it's an admission that Europe still has plenty of work to do to get this debt crisis under control.

The big fear at the moment in Europe is that Italy and perhaps Spain are going to be dragged into this contagion. Italy's the third biggest economy in Europe, so if that happens, it is a major crisis in Europe.

And if you look at the numbers on the stock markets in Europe, Anna, down around about two percent. Olli Rehn not having much of an impact on trading today, but the markets have been hovering between two and three percent lower. Remember, they were down between three and four percent yesterday, so they're still falling.

Here in Asia, the immediate reaction to that big sell-off on Wall Street was the sharp sell-off right across this region. Japan, down 3.7 percent. Hong Kong, down by 4.3 percent. Australia, 4 percent.

So, there's real fear still in the markets. And now we've got this economic number, the jobs number, out very soon. A lot of people are watching that one.

COREN: Andrew, this crisis of confidence being experienced in the global markets, you speak about Europe being a contributing factor. Obviously, the U.S. is a major factor as well, and there's now talk of perhaps a double-dip recession.

Is this likely?

STEVENS: Well, talking to economists I have today -- I spoke to about three or four, and none of them said yes, we are likely to see a recession. Flat growth, stalled growth, weak growth in the second half, yes. But you had some very strong voices -- Larry Summers, the former head of the U.S. economic -- the president's economic team, saying there's now one in three chance of recession. Another Harvard professor saying there's a 50-50 chance of recession.

And certainly if you look at the numbers we're seen over the past two weeks, it's all pointing to a much weaker than first thought U.S. economy. Remember, the U.S. economy was supposed to be sort of getting a full head of steam in the second half of this year. Things were looking pretty good in the first half, and a lot of people were getting bullish about the second half.

It has slowed quite dramatically, much more dramatically than many think. So it's really reassessment time. Wait and see what the next few numbers look like on the economy, on the strength of the economy, like manufacturing, like the jobless numbers, like consumer sentiment, which is going to give a clear picture. But certainly recession is back on the table -- Anna.

COREN: Andrew, at the half hour we're obviously going to get those U.S. jobs numbers. What can we expect?

STEVENS: Well, the consensus is to 75,000 new jobs to have been created in the non-farm payroll for July, which sounds OK, but consider, you need about 200,000 jobs being created per month to start making a dent in the overall unemployment rate, which is around about 9.2 percent. So we're a long way off that.

And also, the last two or three months, we've seen the numbers coming out disappointing on the downside. Last month, the number was 18,000. People have been expecting a figure of around about 50,000 or 60,000. So there's been a lot of disappointment in the jobless numbers.

Seventy-five thousand is what's expect. But a lot are saying, well, you know, don't be surprised if it could go well under that summary. They're saying it could be negative.

COREN: Yes. We'll find out very soon.

Andrew Stevens, in Hong Kong.

As always, great to get your analysis. Thank you.

Well, the world's stock markets are clearly in something of a tailspin, and it may not be over yet. Critical U.S. jobs numbers, as Andrew mentioned, are due out in half an hour. And the bottom of the hour we'll bring those to you.

But first, let's take a look at how it all unfolded on Wall Street Thursday.


ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yesterday's gains, they were just a mirage. We're watching stocks plunge, chipping away at investor confidence. We are seeing the pace of selling for the Dow pick up steam.

POPPY HARLOW, CNNMONEY.COM: This is a market that you need to pay attention to when you have a steep decline like we're seeing now.

BROOKE BALDWIN, CNN ANCHOR: Three hundred seventy points plunging here.

Four hundred seven, massive plunge. Continuing to take this massive plunge.

HARLOW: We're close to two times as bad as the worst day we've had this year.

BALDWIN: And you see the people standing up there applauding. I imagine a lot of people looking at these numbers at home, not applauding at all.


COREN: Well, as we mentioned, this is one of the biggest one-day points lost in the Dow's history. You can see here, the 512-point drop comes in at number nine.

Well, the biggest loss here was 777 points, and that was on September 29, 2008. Well, right at the heart of the financial crisis -- in fact, four of the biggest five points losses -- occurred in 2008. But Thursday's plunge doesn't come close to the biggest percentage drop. Thursday's 4.3 slide pales in comparison to the 22.6 percent that the Dow shed on October 19, 1987, known since as "Black Monday."

We'll certainly have much more on the markets a little later in the show, including those eagerly awaited July U.S. jobs numbers due out in just over 20 minutes' time.

Well, let's now turn our attention to Syria, where activists are believed to be heading back to the streets to demonstrate against President Bashar al-Assad and his government.

On Thursday, activists reported more of a security crackdown in and around Hama in which at least 109 people died. Residents of Hama say there is no electricity or running water, and that communications are patchy. We are also hearing fresh reports of renewed violence in the capital, Damascus.

CNN is unable to report from inside Syria at the moment because the Syrian government has restricted foreign media access into the country. At the same time, people inside Hama tell us that snipers and tanks are blocking the city's exit points.

With the security crackdown looking and sounding increasingly violent throughout the country, our Dan Rivers takes a look at what we know.


DAN RIVERS, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): This is how the Assad regime heralded the start of the holy month of Ramadan. Through the night and through the day, the brutal onslaught of tanks and machine gun fire continued relentlessly.

As the devout were fasting, columns of troops streamed along empty highways in a renewed attempt to crush Syria's uprising. The sky choked with smoke, the streets with soldiers, rounding up bloodied protesters, one by terrified one, to goodness knows what awful fate.

You don't have to look far to see the terrible human toll in this conflict. And that's what this is rapidly becoming, according to some.

BARAK SEENER, SYRIA ANALYST, RUSI: This is going to slide into a civil war because the regime is becoming increasingly over-stretched. The regime now, the army has to enter urban settings. They are trained to do so. And because of their lack of professionalism, they're going to be increasingly willing to use live firepower, so that's going to create a bloodbath.

RIVERS: In some places like Hama, the bloodbath is already clear to see. This video was posted on YouTube and aired on Syrian TV. It's not clear who's dumping these bodies or who the victims are. But despite these appalling themes, the protesters seem unbowed. Thousands gathering every night to chant defiantly.

Russia is part of a network of dissidents outside Syria which is distributing this video.

"RASHA," SYRIAN DISSIDENT: I'm seeing the worst video every day. Watching those videos are just making me collapse and unable to continue. So I just stop. But the video of the mother who, her husband was killed by Hafez al- Assad and her son was killed by Bashar, her voice was just unbearable.

RIVERS: How many more mothers will be mourning for their sons before the month of Ramadan is over in Syria?

Dan Rivers, CNN, London.


COREN: So distressing, isn't it?

Well, for the very latest, let's go to our Arwa Damon, who's been in touch with activists in Syria and is following the latest developments from Beirut.

Arwa, what are you hearing?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Anna, those who have -- we have been able to get through to continue to paint a really horrific image of what is happening inside Hama. A resident of the city that CNN spoke to just a while ago was continuing to say that tanks were firing indiscriminately into residential areas. He said that buildings had been destroyed.

Whilst he was on the phone with CNN, one could actually hear the sound of explosions, the sounds of gunfire. He was again talking about the power shortages, how it's the hospitals' ability to treat the wounded that have already been very stretched, because many doctors have fled, medicines are in short supply, great, growing concerns of food shortages.

People really painting a desperate and dire situation. The government, for its part, is saying that it entered Hama to target armed gangs that it is blaming for the ongoing unrest. Syrian state television said to be showing destruction inside the city, but saying that it managed to cleanse it of these armed gangs.

And, Anna, while all of this is going on, we're still continuing to see demonstrators take to the streets. The demonstrations reported to have already begun in some parts of the country. People, again, chanting for the downfall of -- also chanting their support for Hama. Really a show of defiance in the face of Syria's military might.

COREN: Arwa, there is a little bit of interference in our connection, but I want to ask you another question. The U.S. Secretary of State, Hillary Clinton, she has come out and said that Bashar al-Assad's government, military forces, are responsible for the deaths of 2,000 peaceful protesters. There is this international condemnation not just coming from the U.S., but the U.N., as we've heard the last couple of days.

But it's not enough to stop the bloodshed.

DAMON: No, Anna, it's really not. This is a regime that has continued to remain defiant in the face of all sorts of condemnation, despite the fact that the U.S. and the European Union have slapped additional sanctions on individuals within the regime itself.

What activists will tell you needs to happen to really change the course of action that the Syrian government has chosen to take is going to be economic sanctions. That, they say, could possibly put enough pressure on the Assad regime to force them to change their course of action.

Also, if the merchant middle class begins to feel the economic pinch as well, they in turn could start to put pressure on the Assad regime. But at this point in time, we are not seeing anything that is changing the government's behavior, which analysts are calling schizophrenic.

On the one hand, they are promising political reforms. The president just put two new laws into effect, including this multiparty political law that activists had been calling for. On the other hand, they continue to act as if they believe that they can blast their way military into forcing the demonstrators into submission.

The government's behavior is such that activists will say it's clear that they're shaken up by what is taking place. But they are also, it would seem, completely at a loss at how to handle it in a way that would actually bring it under control.

COREN: Arwa Damon, in Beirut.

Thank you for that update.

Well, after the break, we'll take you on patrol with rebels at the front line in Libya.

And after the raids, after the court cases, the rehabilitation of young sex trafficking victims in India.

Plus, we'll get an update on Typhoon Muifa, now barreling on towards mainland China.


COREN: With months of fighting now under their belts, rebel troops in Libya are closing in slowly on the capital, Tripoli.

Well, CNN's Michael Holmes is on the front lines with them and reports from an ancient lookout.


MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT (voice-over): Two thousand years ago, so the locals say, this crumbling structure was an observation post for Berbers on the lookout for invading Roman armies. Today, it's a lookout for a whole new war -- rebel fighters watching over the Gadhafi- held city of Tiji, a few kilometers away.

Rebels have it sealed off on three sides. From the fourth to the northeast, Tripoli.

(on camera): The rebels are calling Tiji, the town behind me, a gateway city. That's because they say if they take that and the nearby town of Bader, to the east, then there's going to be very little standing between them and the doorstep of Tripoli.

(voice-over): But talking about taking Tiji and actually achieving it are different things. Rockets arrive daily from the city and into the nearby town of Kabaw. But rebels are not returning fire at the moment. That's because when they advanced on the city and engaged Gadhafi troops in a fierce firefight earlier this week, they saw families, including women and children, running into houses, and so they withdrew.

TAREK ZAMBOU, HEAD OF LOCAL MILITARY COUNCIL: This situation, we're facing a big problem, because Gadhafi's forces and Gadhafi (INAUDIBLE) people as a human shield.

HOLMES: That's a claim we can't independently verify, but it is clear that after making significant gains last week, seizing half a dozen towns beneath the Nafusa Mountains, the advance here has stalled at this key city. Rebels say they've gotten word to the remaining residents to leave, and leave soon.

ZAMBOU: We go in, but we try as we can to avoid the civilian people. But we should go, because we give them the chance.

HOLMES: During our visit to this observation post, anti-aircraft fire ineffective from this distance could be heard coming from the city. Zambou says he likes that sound. It is, he said, the sound of Gadhafi fighters wasting ammunition.

(on camera): And this is as close to the front line as we'll get today. The rebel commander we're with says if we drive down that road, we will be seen by Gadhafi forces and they will open fire on us and on his men.

(voice-over): With the prize that is Tiji so clearly in their sights, the rebels say it won't be long before they're firing back again.

Michael Holmes, near Tiji, western Libya.


COREN: Well, next on NEWS STREAM, Indian police are working to save more women from sexual exploitation, but the process does not end with a raid or a rescue. The CNN Freedom Project shows you the next steps in fighting modern-day slavery.


COREN: Well, this week on NEWS STREAM, the CNN Freedom Project has brought you the story of nine girls who were rescued from a brothel in New Delhi. The youngest is said to be just 10 years old.

Well, it started when Indian police, including this officer, went on a raid similar to this one. We learned the suspected brothel manager has been arrested and charged with kidnapping, rape and forcing girls into prostitution.

We also heard from a lawyer, an activist, and a government official. They say Indian police are now prioritizing the fight against human trafficking and treating girls found in brothels as victims instead of as criminals.

But rescue efforts like the one we just highlighted are not the final step in saving girls from exploitation. And one group believes it should be not be the first step either.

Well, Apne Aap works to stop sex trafficking before it stops. And we spoke with the organization's founder, Ruchira Gupta, back in January.



RUCHIRA GUPTA, FOUNDER, APNE AAP: Apne Aap is an organization which works against sex trafficking, and the way we do it is by organizing women and girls to resist exploitation in their lives. According to the Central Bureau of Investigation, three million women and girls are trapped in prostitution right now. And the tragedy is the numbers are going up and the age is coming down. What we have to do is go after the demand, because as long as there is a demand, there's enough for people, for the traffickers, to exploit.

(INAUDIBLE) going out into the villages, organizing women.

We have reached out to more than 10,000 women over the years, and girls. And we work in different parts of India.

The aim of Apne Aap is that the women will become independent and non- dependent. And we want to reach out to more and more women.


COREN: Well, Apne Aap also reaches out to the women who have become victims. The group helps them start new lives.

Well, founder Ruchira Gupta, who we just heard from, joins us now live from New York.

Ruchira, such a fantastic program. How does it feel to be helping these women and girls change their lives?

GUPTA: Inspiring and satisfying. It gives us hope that change is possible and prostitution is not inevitable.

For so many years, society believed that prostitution was inevitable and men would be men, and women could not say no if they were poor. And our program shows that women can become teachers, doctors, lawyers if given a real choice. And most men do not want to buy sex.

The ones who do have been taught from the ages of 12 that buying sex is OK, and if they use a condom it's all right, the girl doesn't get hurt. But again, our interventions humanize the face of prostitution.

The rescue operations that you just showed show what can happen to a girl in prostitution, and it changes the mindset in society. And we hope that men will stop buying sex and girls will get real choices. Our programs organize the girls into small groups to be able to go to school, to find their self-confidence, to rescue each other so that they are never, ever, ever prostituted.

COREN: Yes, Ruchira, it's such a fantastic, fantastic organization that you do run.

I can imagine the enormous challenges though facing these women. How hard is it for them to break free of prostitution and start these new lives?

GUPTA: It's extremely hard because they're so traumatized. They're raped repeatedly eight or nine times a night from the time they're 13 or 14. They forget who they are, they forget who their parents. They begin to call the brothel manager "mama" and the pimp "papa," and they don't believe that a future is possible.

The only future they think is possible is for their daughters. That's when they approach us. And they say, "Can you get our daughters into school?" And we do.

And we show that the daughters then help their mothers get out of prostitution by supporting them to rent apartments outside the red light area, by giving them medical support. And then the mothers become stronger and help other women to form small groups and start small businesses.

So, it is a sister-to-sister program. It's organizing women into circles of support just like Alcoholics Anonymous and looking at a future which is possible for any independent woman in independent India.

COREN: You give these women skills and vocational training. What sort of jobs do they end up doing?

GUPTA: They end up becoming gas station attendants. They end up setting up sewing cooperatives, running small soup kitchens and canteens. They also are learning how to use computers to become data entry operators and spoken English so that they can even get jobs in companies which are known as BPOs, these outsourced offshore companies to do backend work.

COREN: It's simply amazing.

I know you've dealt with thousands of women and girls over the years, but is there one particular story that continues to inspire you, that continues to give you hope that the world can change?

GUPTA: Yes. There is a woman called Nisha (ph) who's a girl (ph) woman. And she was prostituted in her own home by her so-called father, who said he was her legal guardian.

And she was a student of our girls' hostel. We had actually managed to get her away from the home into the hostel to study.

Her father pulled her out and put her into prostitution. We went to the police and the chief minister and pulled her back again. And today, she is studying and she wants to be a karate teacher.

So she has turned her life around in spite of the trauma, the rape, and the repeated body invasion. In spite of losing her childhood, now she has a future. And she's trying to help other girls.

COREN: Yes. Well, there you go. I mean, that's what it's all about, isn't it, these people turning their lives around and then helping others?

What is your goal? Where do you see this program going? What do you hope to achieve?

GUPTA: I want to dismantle the system of prostitution. I want girls to have real choices -- the most marginalized, the most vulnerable, the most at risk, for survivors to have a new life.

And I want men to stop buying sex. I want them to be made accountable. I want the Indian government to change its law to make men more accountable through very high punishments and jail sentences for pimps and Johns. And I want society to stop thinking prostitution is OK, and just like they treated the no smoking campaign, the no tobacco campaign, I want things to change also for prostitution.

COREN: Ruchira Gupta, you are an inspirational woman who is certainly running an extraordinary organization, Apne Aap. Thank you so much for your work and for coming on NEWS STREAM and talking to us about it.

GUPTA: Thank you very much. And I hope more sisters will join us.

COREN: I hope so, too.

GUPTA: They can go on to our Web site on

COREN: OK. All right.

Ruchira Gupta, joining us from New York.

Thank you very much for that.

Well, still ahead on NEWS STREAM, is America working? We'll bring you the latest U.S. jobs figures, the ones investors and the markets are so anxious about.

And an update from Tokyo as Typhoon Muifa lashes Japan.


COREN: I'm Anna Coren in Hong Kong. You're watching News Stream. And these are the world headlines.

In Syria protested to demonstrate again today as the military continues its crackdown on anti-government activists in Hama. One group says at least 109 people were killed on Thursday. And we've heard from one resident of Hama who says that number is closer to 150. Residents say that tanks and snipers are preventing the wounded from getting to hospitals.

Well, you're looking at Typhoon Muifa as it slams into the coast of Okinawa in Japan. The storm kicked up waves and dumped heavy rain across the region. It's now a category two storm heading west. Muifa is expected to roar ashore on China's east coast this weekend.

Well, Thailand's parliament has elected the country's first female prime minister Yingluck Shinawatra. Her Puae Thai Party won and outright majority in last month's general election. The business woman turned political leader is the youngest sister of ousted premier Thaksin Shinawatra. The king is expected to formally endorse Yingluck's position soon, making her posting official.

Well, the U.S. stock markets will resume trading in about an hour's time. And traders will be hoping to avoid making faces like these seen on Thursday as a big selloff sent the Dow Jones to its worst single day of loss since the depth of the 2008 financial crisis. We'll have much more from Wall Street in just a moment.

But first, the U.S. has just released its latest jobs numbers and the number of non-farm jobs created in July added 117,000 jobs. Well, that's far ahead of expectations. Analysts had it predicted an additional 75,000 non-farm jobs. Well, compare that to the previous month when only 18,000 jobs were created, but still well short of April's 217,000. The unemployment rate dropped slightly to 9.1 percent.

But take a look at how that compares to the numbers we've seen so far this year. Remember, these are the numbers of non-farm jobs added each month. So things were looking pretty good in February, March, and April when around 200,000 jobs were added each month. But look what happened between April and May. Well, a slump of more than 88 percent with only 25,000 jobs added in May. And June, that was even worse, just 18,000 new jobs as you can see there in the corner.

Well, let's find out how the jobs numbers are going down in the U.S. Our Felicia Taylor is on Wall Street. Felicia, what's been the reaction?

FELICIA TAYLOR, CNN CORRESPONDENT: Anna, things are very, very positive on Wall Street, I have to tell you. Futures are soaring on this number. It's a much better than expected number. We were looking for up 75,000, we got 117,000. This is just the kind of positive news that the investors really needed to see after what was a record breaking day on Thursday where we marked the ninth steepest loss for the Dow.

So a better than expected jobs number has futures up about 1 percent across the board. Clearly very, very positive news right now.

We could see what they call a dead cat bounce where we're going to get a little bit of a relief rally on this number and then maybe the selling could continue, because basically the fundamentals are still in place. The economy isn't growing as quickly as people would like to see. This is a better than expected number on jobs, but still not good enough and doesn't indicate any kind of a trend.

The last couple of months have been very, very disappointing on jobs to the downside, but this is good news on a Friday as we head into the weekend -- Anna.

COREN: Certainly good news on a Friday.

As you say, better than expected numbers, but how long, though, can this optimism last considering what is going on in the global financial markest?

TAYLOR: Well, unfortunately I don't think the optimism is going to last very long. Like I say, I would expect to see a little bit of a relief rally. It's what they call a dead cat bounce, you bound higher and then you're going to come back down again, because the fundamentals are, like I said, still in place.

The markets in the United States are concentrating on the economy now. We have that debt ceiling deal. It's finished. It's off the table, but still investors are not happy with what Washington has done. They don't see the kind of consensus that they really need.

The problem in this country remains jobs. This is better than expected, but not good enough. We need to see job growth of 200,000, 300,000 for a continued basis, say, four, five, six months in a row for people in a row for people to really believe that corporate America is hiring again.

We've seen earnings come in that are quite happy -- and quite healthy, rather. And the reason, though, is because people have been laying off employees. It's not because they've actually had growth in their companies -- Anna.

COREN: All right. Felicia Taylor, we'll certainly be monitoring the U.S. stock market as it opens very soon. Felicia, great to have you with us. Thank you.

Well, let's now turn to some activity here in the Asia-Pacific. China is bracing for the impact of a powerful typhoon which is already battering Japan. Well Typhoon Muifa slammed into Okinawa on Friday bringing strong winds, giant waves and heavy rain. Well, ports are closed, flights canceled and tens of thousands of homes are without electricity. The storms now heading west and is expected to make landfall on the mainland tomorrow.

Well, for the very latest on Typhoon Muifa we're not joined on the phone from Tokyo by journalist James Reynolds. James, what's happening where you are?

JAMES REYNOLDS, JOURNALIST: Hi, Anna. Well, actually I'm on the island of Okinawa itself, which was got the full brunt of the storm today. And the winds have been howling for the last 18 hours. (inaudible) quite a lot of (inaudible) and as you mentioned the power outages and, you know, it's generally been quite a dangerous situation out on the street today, Anna.

COREN: And James it's now crossing over to mainland China. When is it due to hit do you think?

REYNOLDS: Well, the current forecasts I've seen show it coming very close to Shanghai, it's one of the most populous cities in China. So even if it, even if it just missed that area it would still cause potentially quite a lot of disruptions. It's a low lying area, it's heavily populated, and (inaudible).

So, you know, the prognosis at the moment isn't too good -- Anna.

COREN: And James where you are in Okinawa, tell us about the damage that this typhoon has caused.

REYNOLDS: Well, luckily Okinawa has a very kind of (inaudible) typhoon prone infrastructure. Everything here is built very solidly. So the damage has been superficial, but there has been disruptions to power supply. I saw numerous power lines came down. But other than that, luckily Okinawa fared pretty well -- Anna.

COREN: All right. James Reynolds in Okinawa following Typhoon Muifa. Thank you for that.

Well, let's get more on this storm and where it's headed with our meteorologist Pedram Javaheri whose been watching the typhoon from the international weather center -- Pedram.

PEDRAM JAVAHERI, CNN WEATHER CORRESPONDENT: Yeah, Anna. The storm system now beginning to move away, fortunately, from the Island of Okinawa. And again the heavy rainfall as you heard, the damage left in place for a portions of the southern tip of Okinawa going to be a priority here as far as the storm as concerned. And those winds up to 157 kilometers per hour.

Now on the Saffir-Simpson scale in the Atlantic Ocean, this storm would be just barely making it to a category two status and has weakened a little bit. You kind of see the northern fringe of it here as some dry air has moved on into towards that area and kind of weakened the storm a tad bit. But I do think it'll strengthen again over the next 24 to 48 hours.

But take a look at these observations, this is what our friend out there was dealing with, dealing with winds over 130 kilometers per hour, rainfall in excess of 200 millimeters, and again the heaviest rain, the strongest winds are going to begin to move out of this area over the East China Sea. And then Shanghai, the next area of concern with the storm system.

The models take this just offshore of Shanghai in about 48 hours, that's Sunday afternoon or so we're going to be looking at this for very strong winds across the city of Shanghai and also strong rainfall.

But fortunately, again, the core of the storm, the right hand, or the northeast quadrant of the storm where the strongest winds typically lie, that stays away from Shanghai and heads north out towards portions of the Bohai Bay.

And this area around areas of the Yellow Sea and the Bohai Bay are going to see the storm system weaken as it interacts with cooler sea surface temperatures. So that's the better end of the forecast as we are going to see weakening post, say, Sunday. But right now still looks like a very, very rough weekend ahead for portions of Shanghai.

Now across the Caribbean, take a look at this, this is what's left of Tropical Storm Emily, just isolated thunderstorms, a few areas of convection popping up across the eastern coast of Cuba and that's about it. And the rainfall that we were concerned about, getting that heavy rainfall over portions of say, Haiti, Port au Prince. We know there's a lot of folks out there living in tent city.

And you take a look at this, the heaviest rain right along the coast. This is based on the NASA trim estimates that show you how much rainfall based on satellite imagery may have fallen in this area. And we know up to 150 millimeters was possible around, say, Santa Domingo. But notice Port au Prince, largely spared from all the rainfall.

So a good look across this area of the world really if you look at it in a positive aspect is that the heaviest rainfall stays either offshore or over areas that are not dealing with the aftermath of the quake from last year. So that's the good news with this.

And right now the storm system does have about a 60 percent chance for redeveloping back into a tropical storm in the next 48 hours. And if that happens, this will ride right along portions of the Bahamas and eventually right out back out to sea.

Now let's take a look at your city by city forecast.

COREN: Well, let's now turn to the drought in Somalia coming on top of years of conflict. And it puts some 4 million people in need of food assistance. Well, the United Nations says it's programs in nutrition, water, sanitation and shelter are not even halfway funded. And with such basics still facing huge gaps, many of the countries existing social welfare programs are coming under severe strain if not breaking down altogether.

Well, Nima Elbagir has that story from the capital Mogadishu.


NIMA ELBAGIR, CNN INTERNATIONAL CORRESPONDENT: It's the children's break time. And although they're definitely having fun showing us their favorite games, this is more than just play time.

So who won this time?

In war torn Somalia's only school for the blind, playing is a matter of survival. In addition to braille, the children must learn to be aware of their surroundings. And in a country where disabilities are viewed as a curse and the afflicted hidden away, they're also learning to be proud of themselves and their gifts.


ELBAGIR: Amal is a budding poet who wants to grow up to be a professor.

AMAL: Before, when I was not in school, I was (inaudible) only also was (ph) I am only (inaudible). When I was in the school. Now I learn something. I can do most things which I never thought.

ELBAGIR: There are no figures for how many blind children there are here, but other than those blinded by war wounds, many Somali children's blindness is reversible if only the resources were available.

Six months ago, Abikar Bashir, the founder of this school, began knocking on the doors of families that he knew had blind children. He couldn't raise the funds needed for treatment, but he could try to ensure they were no longer locked away by their families.

ABIKAR BASHIR, AL BASEER SCHOOL FOR THE DEAF AND BLIND: In Somalia they are not much known about blindness. So the families do that when their child gets blind they just keep on (inaudible) staying there just eating, going to the toilets without doing nothing.

ELBAGIR: For some parents it's a matter of protecting their children. For others in a country where everyday is a struggle for survival the burden is just too great.

Ali is 20 now and wants to learn English to be an interpreter. But as a child he survived fending for himself on the streets of Mogadishu. He can mimic and recognize the sounds of the different weapons used in the Somali conflict perfectly.


ELBAGIR: A talent that helped save his life, helping him to gauge the intensity of the fighting and how quickly he needed to reach shelter.

UNIDENTIFIED MALE: I go to El Baseer School.

ELBAGIR: Now he says the school is helping change his life.

UNIDENTIFIED MALE: And I have learnt more subjects.

ELBAGIR: But Abikar worries that they won't be able to afford to do that for much longer.

BASHIR: There is not any other international agency or local agencies working about that issue. They don't want to check project is for relief education, for IDPs, for whatever. But educating these disabled people, they are not much interested.

ELBAGIR: In a country where millions of children are starving, the aid agencies priorities are understandable. But Abikar hopes someone will help him continue to give these children a purpose, not just give them aid.

Nima Elbagir, CNN, Mogadishu.


COREN: What beautiful kids.

Well helping children and their families in Somalia can be as simple as texting four numbers to your mobile phone. To learn more, visit the Impact Your World section of our web site at

We'll have a complete sports update after the break, including the return of Tiger. Golf's former world number one is back in tournament action for the first time in 12 weeks. Alex Thomas will tell us how he's getting on.


COREN: Well, can you guess what this is? Give you a hint, it's out of this world literally. Well, this is a new picture of Mars. And scientists say those streaking brown lines might be evidence of flowing water and that is stunningly significant to the search for new life.


PHILIP CHRISTENSEN, GEOPHYSICIST, ARIZONA STATE UNIVERSITY: The key here here is we know Mars has a lot of ice, but this is the first time we've seen the potential for liquid water. It might be salty water, but it's still -- it's still liquid. And I think that's the real -- the key is it's not that Mars doesn't have a lot of ice, but liquid water certainly to an organism is very, very, very different than ice.


COREN: Of course, this picture is not hard proof of water on the Red Planet, but tests to confirm that can and will be done right here on Earth.

Well, it's the richest and most prestigious club football tournament on the planet. And some big European teams found out earlier how they can qualify for next season's Champion's League. Well, let's join Alex Thomas in London for more on that. Hello, Alex.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Yes, Anna, a club in the group stage of the UEFA Champion's League can comfortably earn $20 million. And there are far more riches than that on offer for sides if they can go through to the knockout rounds. So no wonder Europe's top clubs are desperate to play in it.

And the draw for the final qualifying round was made earlier on Friday. The matches include 2006 runners up Arsenal against Italian club Udinese. Germany giants Bayern Munich will take on FC Zurich. 2009 semifinalist Lyon face Russian team Rubin Kazan. And Portuguese club Benfica are up against the 2010 Dutch champions FC Twente.

Now Arsenal still don't know if Cesc Fabregas will be available for that Champion's League game. The former Gunners skipper still wants to move back to Barcelona, the club he played for as a boy. Negotiations continuing, but Fabregas still took part in Thursdays open training session in front of the Arsenal fans. And so did Samir Nasri, the French midfielder whose been linked with a move to Manchester City.

Now Tiger Woods says he's got his competitive feel back after posting a respectable score of 68 at the WGC Bridgestone Invitational on Thursday. But his first tournament round since May was overshadowed by former caddy Steve Williams who helped his new golfing partner Adam Scott take the lead.

Woods didn't get his first birdie until the 10th hole where he showed the form that once took him to number one in the world, spinning this excellent approach shot to within four feet of the hole and going on to make the put. There's plenty of cheers where the huge gallery following him and Darren Clark, his partner on the day.

Another birdie followed at the 16th where Tiger showed his putter is working well, reading that one correctly. In it drops. Woods 2 under for the tournament.

But that's six strokes behind the man at the top of the leaderboard, Australia's Adam Scott had an 8 under par round of 62 with Williams on his bag. The New Zealander's (inaudible) by Woods earlier this year.

Scott went on to have a good round, but Tiger afterwards admitted he had a few jitters.


TIGER WOODS, GOLFER: I felt nerves out there on that first tee just like I did when I came back off the long layoffs after winter. Obviously the surgeries I've had over the years, 2002 into 2003, and then '08/'09. That first tee shot I was pretty nervous.

It felt awesome. I hadn't hit the ball like this. This was fun. To be able to hit the ball with that much flush, feeling through the golf ball, the speed I had. It was pretty nice.


THOMAS: Now something slightly more lighthearted to finish with, Anna. The test cricket series between England and India to decide whose the best team in the world continues next week. And Australia's Shane Warne is commentating on it for English television. But the once slightly chubby spin bowler has been copying some flat from the Aussie press for the recent dramatic change in his appearance. Wax Work Warne and Scrawny Warne just some of the kinder headlines.

Let's show you why. This is Warne when he burst on to the international cricket scene in 1993. By 2004, he still had the blonde spiky hair, but was looking slightly rounder shall we say. Last week at Trent Bridge, though, there seemed to be a lot less Shane Warne to go around. And the Aussie media are putting the blame squarely on his new girlfriend, British actress Liz Hurley. Although Warne himself says he's nearly looking after himself.

Big crawl, Anna, or is there something in it. What do you think?

COREN: Personally, personally, maybe this is because I am from Australia. I think he's looking a little thin. Don't you think, Alex?

THOMAS: Yeah, (inaudible) for the, you know, a chappy, happy go lucky sort of guy.

COREN: Exactly. No, he's looking rather gaunt. Maybe she's starving him. Who knows.

THOMAS: Poor guy.

COREN: Yeah. It must be tough to be Mr. Liz Hurley.

All right, Alex Thomas good to see you. Thank you for that.

Well, you're watching News Stream. It is supposed to be charming and romantic, but we'll tell you about the horse and carriage ride that ran frighteningly off course in a New York story. That's after the break.


COREN: Well let's say New York institution, a horse drawn carriage ride through Central Park, but this time it was a frightening ride to nowhere when the horse tripped while backing up. Well, CNN's Jeanne Moos has the story.


JEANNE MOOS, CNN CORRESPONDENT: Nothing like a nice, serene ride in a horse carriage through Central Park right?

THERESA SHAVER, TOURIST: Oh my gosh. Oh my gosh. Oh my gosh.

MOOS: When the horse pulling Theresa Shaver, her husband and son got spooked by a pedacab like this one, Theresa got even more spooked than the horse.

SHAVER: Oh god. I got to get off. Get off. Get off. Run. Eddy run.

UNIDENTIFIED MALE: His back feet hit this curb. The horse trips and goes down.

MOOS: The horse, Smokey, got up then fell again. Theresa thought the carriage might hit her teenage son.

SHAVER: Run. Oh my god.

MOOS: As she saw the horse lying there, she got more upset. Even then they got him up.

Her husband tried to calm her down.


SHAVER: The horse.

MOOS: Soon Theresa realized the carriage had left with her bag in it. When she found the carriage 20 minutes later it was back in line where the horses wait for riders.

SHAVER: That horse dropped to the ground twice and you guys have him back on to work again? You know how traumatic that was for me? And I got the whole thing on video just so you guys know.

MOOS: A spokesman for the driver says what he knows is that Theresa overreacted.

UNIDENTIFIED MALE: She went nuts is what she does. People were looking at her.

SHAVER: And you put him back to work after he drops to the ground twice? You put him back in that (EXPLETIVE DELETED) line? Are you kidding me?

MOOS: They're saying you overreacted. You acted crazy.

SHAVER: I may have. You know -- I mean, I love animals and it is a traumatic experience to see an animal that size fall to the ground.

MOOS: After Theresa confronted the driver, the ASPCA confirmed the horse was taken back to its stable.

UNIDENTIFIED MALE: All I can say is the horse is absolutely fine. And thanks be to god.

MOOS: Every time something like this happens, it reignites that long running controversy -- animal rights supporters versus the carriage drivers.


MOOS: Drivers say the horses are well treated and a wonderful tourist attraction. The animal rights folks say the horses are overworked and live in confined conditions.

There is one guy who can shed more light on all this, but he's not talking. Neither Smokey the horse nor his driver had much to say.

UNIDENTIFIED MALE: I'm tired already.

MOOS: Where's Mr. Ed when you need him.

Theresa's story sure has people talking if not horses.

SHAVER: And I have it on video you son of a (EXPLETIVE DELETED)

MOOS: Jeanne Moos, CNN.

SHAVER: Oh my gosh.

MOOS: New York.


COREN: Well, passionate isn't she?

Well, finally, let's take a look at these pictures. Let's call it getting the skinny on Russian politics. In this case, three women strip down to bikinis to express support for President Dmitri Medvedev. Well, the women were trying to inspire interest in Mr. Medvedev's initiative to cut down on beer drinking in public.

Well, they invited people in Pushkin Square to pour their cans of beer into buckets. When the beer reached a certain level, the girls removed their shorts and then their tops.

Waste of perfectly good beer, wouldn't you say?

That is News Stream, but the news certainly continues here at CNN. World Business Today is coming up next.