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CNN NEWSROOM

Greece Presents New Proposal to Creditors; Foiled Holiday Terror Plots Revealed; Confederate Flag to Be Removed from South Carolina Capitol Grounds; Typhoon Threats in Eastern China; Will China's Markets Rebound After Devastating Loss; Greek Financial Crisis Touches Every Aspect of Life; Body of Unidentified Girl Found in Massachusetts. Aired 1:30-2a ET

Aired July 9, 2015 - 01:30   ET

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


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[01:00:11] GOV. NIKKI HALEY (R), SOUTH CAROLINA: The confederate flag is coming off the grounds of the South Carolina state house.

(END VIDEO CLIP)

GEORGE HOWELL, CNNI HOST: Lawmakers in the U.S. join forces to take down a divisive symbol.

The FBI reveals it foiled terror plots linked to the Fourth of July holiday.

And Greece makes a last-minute proposal to the Eurozone.

From CNN world headquarters here in Atlanta, I'm George Howell. This is CNN NEWSROOM.

Good day to you. And welcome to our viewers here in the United States and around the world. We begin this hour in the U.S. state of South Carolina. History is being made there. Lawmakers decided that the confederate flag on the state house grounds will now be coming down. That flag will be removed in just about nine hours time, then moved to the state's relic room.

On Thursday, something many people thought they would never see in their lifetime, the state's governor, Nikki Haley signed the bill until to law that authorized that flag's removal.

(BEGIN VIDEO CLIP)

HALEY: We heard about the true honor of heritage and tradition. We heard about the true pain that many had felt. And we took the time to understand it. I saw passions get hot. I saw passions get low. But I saw commitment never ending.

UNIDENTIFIED MALE: Right.

HALEY: And so what we saw was another action. And that action is that the confederate flag is coming off the grounds of the South Carolina state house.

(APPLAUSE)

(END VIDEO CLIP)

HOWELL: The confederate flag is seen by many as a reminder of slavery and racism in the United States. It's been a subject of contingent in South Carolina for years. Some consider it a matter of national -- of heritage, rather. It gained attention after a tragedy last month. A massacre inside of a church in Charleston, South Carolina, nine black worshipers were shot and killed during a bible study session. Police say the white suspect, who had posed with pictures with that flag, wanted to start a race war.

Earlier, I spoke to Grady Brown, a state lawmaker who voted to take down the flag and he says even though he had ancestors who served in the confederacy, this was the right thing to do.

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GRADY BROWN, SOUTH CAROLINA HOUSE DEMOCRAT: Proceedings will start around 10:00 a.m. in the morning. And of course we hope it will be peaceful and I know it will be, it has been a big week. You know, since all of this has happened a couple of weeks ago. South Carolina has been very nice in the fact we have -- all of our people have been so calm and collected. And just I'm happy to be a part of the process here in South Carolina to bring the flag down and do what is best for her people, for our people and for the great state of South Carolina. It's been my pleasure to represent my district, district 50 for the past 31 years and this is something I'm looking forward to being part of. And hopefully tomorrow morning it will get done and it will be placed in the confederate relic room which will be the resting place for the confederate flag.

HOWELL: I want you to talk to me, sir, just about what it was like -- because it would take, you know, it took an overwhelming amount of support among your fellow legislators to bring this flag down. And what we saw, we saw this 12-hour debate play out about whether it should come down. What was it like for you to be in that hall and to see that debate happen?

BROWN: Well, you know, for me with the amount of confederate heritage that I have, I have a great daddy who fought for four years who took his oath 150 years ago to support the union, you know. I knew that the best thing for me to do was to vote in the affirmative to bring the flag down. And there were a lot of house members who felt that way from the very beginning. There were others who had different opinions and there are a lot of constituents back home calling, emailing and telling legislators do not bother my flag.

You know, what's happened I think tonight, as we approach tomorrow morning, 10:00 on the 10th of July is going to be what is best for her people, that is South Carolina and our state. And I'm looking forward to this being a peaceful resolution to an issue that's really been boiling for quite some time. HOWELL: Your governor Nikki Haley signing this bill in to law.

Basically bringing that flag down. What does it mean for the people of Charleston? What does it mean for the victims' families of the Emanuel nine?

BROWN: Well, I think the legislature by passing the resolution yesterday afternoon or the bill last night, really told Charleston that we feel your pain. We understand what's been going on, and South Carolina and the general assembly -- the Senate did it in three days. The house did it in four days and I really believe that we have done what's best for our state.

Again, the governor asked to bring it down. The Senate went along with it so candidly and quietly and the house has done the same. With much more debate than the Senate had because you have 46 senators and 124 house members. So you had three times as many opinions when it comes to the flag and the issues that surround it.

[01:05:35] HOWELL: One other quick question. The president of the NAACP also telling CNN that given that flag is coming down, we could see -- we will see the boycott of your state lifted. That boycott has certainly cost the state business. What do you expect as this boycott is lifted? What does it mean for your state?

BROWN: Well, I was just telling someone tonight, the NCAA athletics they have told us from the very beginning, as long as the flag flies we will not hold events in South Carolina. The NAACP holds their conventions out of their state. I know this will be a tremendous boom to our local economy and it will be good for everybody concerned. And I know that the governor, the Senate, the house and all of its members who supported these issues will be proud of the fact when that flag comes down tomorrow morning.

(END VIDEOTAPE)

HOWELL: And the confederate flag at this point set to come down at 10:00 a.m. here in the United States.

Now on to the state of Missouri and a new law there that caps how much money local governments can collect from traffic tickets. It comes after a U.S. justice department report that found officers were excessively ticketing drivers, especially African-Americans, to generate revenue in the town of Ferguson, Missouri. The state's governor called the bill the most sweeping municipal court bill in Missouri's history. The sponsor of the bill also weighed in.

(BEGIN VIDEO CLIP)

ERIC SCHMITT, MISSOURI STATE SENATE: And so, for the cities that are out there that are viewing their citizens as nothing more than ATMs, reform is coming. And for the people of the state, and for the people who live in these communities who have lived in many ways under the fear that they are going to be pulled over and harassed because that city needs money, that's going to change. That's the significance of this bill.

(END VIDEO CLIP)

HOWELL: You'll recall the federal investigation of the traffic tickets came after the police shooting of Michael Brown in Ferguson last August. His death sparked allegations of excessive police force and bias against African-Americans.

The British government is warning its citizens not to travel to Tunisia unless it is absolutely necessary and it is asking people already in that country to leave.

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PHILIP HAMMOND, BRITAIN FOREIGN SECRETARY: Since the attack in Suez (ph) the intelligence and threat picture was developed considerably leading us to a view that a further terrorist attack is highly likely. We have now completed an assessment with the security measures in tourist areas. And while we are working with the Tunisian authorities to further strengthen those measures we judge that more work is needed to effectively protect tourists from the terrorist threat.

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HOWELL: That warning comes nearly weeks after that breach attack that killed 38 people, most were British tourists. Tunisia's president has declared a 30-day state of emergency. That gives police and military more power to fight terrorism there.

Now, back to the United States where Americans are learning that they had several close calls leading up to the Fourth of July holiday. Potential terror attacks inspired by the group ISIS.

CNN's Jim Sciutto reports.

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JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): U.S. law enforcement thwarted several terror plots in the last four weeks, including plots tied to the July 4th weekend, U.S. officials tell CNN. Director James Comey said the FBI has made more than ten ISIS related arrests in the last month. Some tied to the holiday.

JAMES COMEY, FBI DIRECTOR: They stopped the stuff trying to come at us for July 4th but now it is July 7th and 8th and they are on to the same thing.

SCIUTTO: The foiled attacks included targets coast to coast and were unsophisticated with plans that included guns, knives and other weapons, fitting ISIS' public calls to supporters to attack in any way possible. Investigators believe that ISIS members overseas enabled the plots, recruiting and encouraging Americans to carry out attacks on U.S. soil, even selecting possible targets. Comey calls it crowd sources terrorists.

Senator James Risch telling CNN Wednesday that time was critical.

JAMES RISCH, U.S. SENATE REPUBLICAN: Some were quite imminent actually.

UNIDENTIFIED FEMALE: Within days.

RISCH: Within days. There was course, there was even one that was within hours or minutes.

SCIUTTO: The foiled plots come as the FBI continues to warn that terror suspects have gone dark in cyberspace basically in communicating through encrypted messages that is widely available but impossible for the intelligence community to monitor.

July 4th weekend may have pass but U.S. officials tell CNN the risk of terror attacks remains very high.

[01:10:14] SETH JONES, RAND CORPORATION: Based on very recent past trends, ISIS has been willing to and able to push out information to Americans and a small number of been willing to try to act based on that.

(END VIDEOTAPE)

HOWELL: CNN's Jim Sciutto reporting there.

A top American general says despite the threats from terror groups, Russia poses the greatest danger to the United States. Joseph Dunford is the next nominee to be the next U.S. joint chief of staff chairman. He met with the Senate armed services committee on Thursday.

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GEN. JOSEPH DUNFORD, U.S. JOINT CHIEFS OF STAFF NOMINEE: My assessment today, Senator, is that Russia presents the greatest threat to our national security. In Russia we have a nuclear power. We have one that not only has the capability to violate the sovereignty of our allies and to do things that are inconsistent with the national interest but in the process of doing so. So if you want to talk about a nation that could pose an existential threat to the United States I'd have to point to Russia.

(END VIDEO CLIP)

HOWELL: Dunford said he favors sending more advanced weapons to Ukraine to defend against Russian aggression there.

A recent data breach of the U.S. government is much worse than previously thought. Investigators now believe hackers stole the personal information of more than 21 million people both inside and outside of the government. Those exposed included 19.7 billion people who applied for security clearances with the office of personnel management. Plus, roughly two million non-applicants, mostly spouse s and partners of applicants.

It was initially estimated that four million people were impacted. Director of national intelligence John Clapper told CNN China is the leading suspect in that hack.

Greeks rally outside of the parliament building as the government reveals its latest plan to save the country from bankruptcy.

Plus, Donald Trump responds to rivals who have been slamming his remarks on immigration.

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[01:15:18] HOWELL: Welcome back to CNN NEWSROOM.

The Greek parliament will spend this day debating the government's new plan to save the country from bankruptcy. Reuters quotes the ruling party spokesman, who says there will be certainly -- this will be a big deal today. Huge crowds of demonstrators gathered outside of the building in Athens on Thursday. The government is hoping to get a third bailout loan from European creditors. In exchange it is purportedly imposing tax hikes on restaurants, on hotels and TV advertising. Changes to public employee pensions such as raising the retirement age and phasing out tax breaks for Greek islands.

Many in Europe say the reform plan won't do much good unless Greece's creditors agree to restructure its debt. Some call that a haircut. European council president Donald Tusk says it unavoidable. German chancellor Angela Merkel, disagrees though.

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DONALD TUSK, EUROPEAN COUNCIL PRESIDENT: The realistic proposal from Greece will have to be met by an equally realistic proposal on debt sustainability from the creditors. Only then will we have a win-win situation.

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): We are not dealing with debt sustainability for the first time. I've said that a classic haircut is out of the question for me and that hasn't changed between yesterday and today.

(END VIDEO CLIP)

HOWELL: CNN's Richard Quest talked about the issue with the chief economist for the international monetary fund.

(BEGIN VIDEOTAPE)

OLIVER BLANCHARD, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND: To the extent that we decrease what we are asking of the Greeks, that comes with a need for extra financing and by implications, some debt relief. So when we do the math, we conclude that indeed there has to be policies offered by the Greeks but there has to be some form of debt relief on the other side. Otherwise the plan makes no sense.

RICHARD QUEST, CNN BUSINESS CORRESPONDENT: But in this sort of chicken and egg situation, which comes first? Because the Greeks continually say they can't sign up to bailout conditionality unless they know what the debt relief component is. It's a strong argument.

BLANCHARD: No, absolutely. It cannot be a chicken and egg. It has to be two chickens or two eggs. They basically at the same time, the Greeks have to offer something and then the other side has to say, well, given this this is the debt relief that we are willing to do. But there has to be commitments on both sides. It doesn't have to be done today overnight. But there has to be credible commitments on both sides.

You can't have one side say, well, show me what you are going to do and then we will think whichever side it is. It has to be both sides have to come to the table and say, OK, if you do this, I'll do that and they have to be explicit about it.

(END VIDEOTAPE)

HOWELL: Eurozone finance ministers will meet on Saturday to discuss the Greek debt crisis. An EU emergency summit is scheduled for Sunday. We are just hours away from now the third deadline set for negotiators to reach an Iran nuclear agreement. U.S. secretary of state John Kerry said Thursday that progress is being made but added that the west is willing to walk away from these talks.

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JOHN KERRY, U.S. SECRETARY OF STATE: This is not open ended. President Obama made it very clear to me last night, you can't wait forever for the decision to be made. We know that. If the tough decisions don't get made, we are absolutely prepared to call an end to this process.

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[01:19:55] HOWELL: Earlier this week, a top democrat quoted President Obama saying the chances of a deal now are less than 50/50. An agreement would require Teheran to curb its nuclear program in exchange for the easing of economic sanctions.

Saudi Arabia's former foreign minister has died. For four decades, Prince Saud Al Faisal served as the kingdom's top diplomat. Here you can see him meeting with then U.S. secretary of state Hillary Clinton back in 2009. He was appointed to the position in 1975 and was the world's longest serving foreign minister when he retired in April of this year. Faisal was 75 years old.

Now to the U.S. presidential campaign and Republican candidate Jeb Bush who is already amassing an impressive war chest for the race ahead. Mr. Bush and his political action committee safe they have raised about $114 million in campaign contributions. That puts him well ahead of the other Republican contenders in the race. In fact no candidates for president has ever raised that much money this early in the race.

Another Republican presidential hopeful Donald Trump has taken a different take on reports that the chairman of the Republican National Committee is concerned about the billionaire stance on the issue of immigration. Trump admits Reince Priebus asked him to tone down his remarks but says in the phone call on Wednesday Priebus actually congratulated him on his surge in the polls. Priebus declined to comment on Trump's version of events. Before that call, Trump sat down with our Anderson Cooper for a one-

on-one interview. Here's what he had to say about his opponents when it comes to that issue, immigration.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN HOST, AC 360: Let me read you what some of your fellow Republicans have said. Bush said Trump is wrong on this. He is doing this. He is not a stupid guy. Don't think he thinks every Mexican cross the border is rapist. He is doing this to inflame and a side to draw attention.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: So, look. Bush is weak on immigration. Forget about his stance on common core which is a total disaster. He's very weak on immigration and that's his prerogative if that is what he wants to be, but he doesn't get it.

COOPER: Marco Rubio. Trump's comments are not just offensive and inaccurate, but also divisive.

TRUMP: Marco Rubio is somebody who is extremely weak on immigration. He all of the sudden toughens his stance because his poll numbers went down. If he ever got elected, you would have people flowing across the border.

COOPER: Rick Perry. I was offended by his remarks. He is going to have to defend those remarks. I never will. I will stand and say that those are offensive which they were.

TRUMP: Well, I could be much more offensive to Rick Perry. But the fact is he was governor of Texas. The borders are disaster. He could have done much more as governor of Texas to make the border strong.

COOPER: Lindsey Graham, just today tweeted, why would any group vote for a party if it embraces that view, I sure has hell wouldn't.

TRUMP: Well, if Lindsey Graham - I think he has always been very nice to me. But then he wants to bomb everybody. All I know is every time I watch Lindsey Graham, he wants to bomb everybody.

COOPER: Carly Fiorina.

TRUMP: Well, you know, she came out very weak yesterday on my opinion on immigration. A little bit harshen me because, you know, I'm very strong on the immigration situation. But she lost her job at Hewlett- Packard, viciously was fired, viciously.

COOPER: (INAUDIBLE)

TRUMP: No. You don't generally lose your job when you do a good job.

COOPER: You don't think she can run a country?

TRUMP: I don't think she is the right person. I think she is very nice. She then ran for the Senate in California against Barbara Boxer and got killed. She got killed in a landslide. Now, she is going to running for president.

COOPER: Ted Cruz, who has backed you up on immigration.

TRUMP: Well, I have great respect for the fact that he had the courage to back me up and to say that what I'm saying is right. All I'm saying and all he is saying is we have to stop illegal immigration. It's causing tremendous problems including crime. I have great respect for the fact that he was willing to stick up. And Carson, he stuck up too. He came out the other day very strongly. So I have great respect for them.

(END VIDEOTAPE)

HOWELL: Trump made the number two in recent polls. But according to analysis from Pivot, the presidential candidate only has a one percent chance of winning the Republican nomination.

Now to the Pope. Pope Francis who's on an eight-day tour of South America. In a speech Thursday in Bolivia, he criticized capitalism. A reoccurring theme of his papacy and focused on the quote "new colonialism of austerity measures and free trade deals in the world today." And he apologized for past offenses committed by the Catholic Church in Latin America.

(BEGIN VIDEO CLIP)

POPE FRANCIS, CATHOLIC CHURCH LEADER (through translator): When the Pope speaks of colonialism, he overlooks certain actions of the church. I say this to you with regret, many and grave sins were committed against the native peoples of America in the name of God.

(END VIDEO CLIP)

[01:25:02] HOWELL: Later today Pope Francis will visit one of Bolivia's most notorious maximum security prisons. Palmasola prison is located in Santa Cruz, Bolivia's largest city. It is about 500 kilometers or 300 miles from the capital city of La Paz. The complex houses more than a third of the country's prisoners and resembles a small city. Criminals, many of them convicted on violent crimes, live side by side as neighbors. Even young children are permitted to live on the grounds with parent. Police patrol the perimeters of the complex, but inmates are essentially in control of what happens inside of its walls.

Police in Bangladesh say a rush to receive donated clothes resulted in a stampede killing at least 20 people and injuring dozens more. You are looking at pictures of the aftermath. Authorities fear the death toll may rise. A stampede took place in (INAUDIBLE), outside of the gates of a tobacco factory.

China's markets are close - closed rather in just a few hours. And after weeks of losses, investors are hoping for a second rally.

Plus, we'll meet the man behind one business that's still thriving in the Greek financial crisis.

You are watching CNN NEWSROOM.

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[01:29:45] HOWELL: Welcome back to our viewers here in the United States and around the world. You are watching CNN NEWSROOM. Good to have you with us.

I'm George Howell.

The headlines this hour. Greece is hoping to secure another European bailout with a reform plan of (INAUDIBLE) and privatization. The government wants to raise taxes on hotels, on restaurants, and shipping companies. Parliament will debate the plan today before it goes to European creditors.

South Carolina governor Nikki Haley signed a bill in though law to take down the Confederate battle flag from the state house grounds. It will be removed 10:00 a.m. local time and moved to a museum. The flag gained national attention last month after a white gunman killed nine African-Americans seen in pictures with that flag.

Hours from now, Pope Francis will visit what is considered Bolivia's most violent prison. He will meet with inmates and their children at the max security complex in Santa Cruz. The Catholic leader is visiting -- it is part of his eight-day tour of South America

As the remnants of Typhoon Linfa move away from Hong Kong, there is a new threat for Shanghai as another more powerful typhoon barrels toward eastern China.

Let's go to Meteorologist Derek Van Dam with more on that -- Derek?

DEREK VAN DAM, AMS METEOROLOGIST: Yeah, George, I think residents in Hong Kong are probably going what typhoon. The skies cleared quickly. It moved across the region 12 to 24 hours ago, deposited, and no longer a threat. This is the scene in the Guangdong Province. The typhoon making landfall there. It battered motorists and neighborhoods with strong winds and rain. Toll toppling trees as you can see on your TV screen, damaging power utilities, kicking up the surf. It closed airports, some railways and schools. In fact the Hong Kong international airport was closed for a period of time overnight last night with wind gusts in excess of 40 to 50 kilometers an hour and of course the heavy rainfall grounding some of those flights. Now we focus our attention from Linfa and look to Chan-hom. This is a significant typhoon that is splitting the difference between Okinawa and Taiwan but it has a general west to northwesterly path that will make landfall in the east coast of China in the next 24 hours. Look at what is in the path of the storm, Shanghai. Population 24 million. We have the possibility of stronger winds, even though it will be a weakened phase. The storm will significantly impact that region with heavy rainfall and certainly gusty winds. This is the current stats on the storm. 220 kilometers an hour, just below super typhoon status. We will watch for this storm carefully here at the CNN World Weather Center going forward. You can see the population density across the east coast of China, very compact. Forecast is going to get worse from here. If you are in Shanghai consider checking your flights for this weekend.

Switching gears quickly, we had a volcano that's been slowly erupting in the Indonesian island of East Java. We'll show you an overlay that shows you the volcanic ash is spewing four to six kilometers into the atmosphere. We had general easterly winds that brought the smoke across the popular tourist destination of Bali. The airport there was closed and still is closed thanks to volcanic ash that continues to float across the region. George, we all know, we have covered this several times, you and I together, that volcanic ash and jetliners do not mix well.

HOWELL: No, they don't.

VAN DAM: For sure.

HOWELL: Busy man. A lot happening in the world right now.

Derek, thank you very much.

VAN DAM: Thanks, George.

HOWELL: China's markets are looking to rebound for a second day after weeks of devastating losses. A Chinese government securities agency is offering billions of dollars in loans to brokerage firms to buy stocks.

CNN Asian Pacific editor, Andrew Stevens, is joining me from Hong Kong.

Andrew, good to have you with us.

Two consecutive days of rallies. Are we to believe this is -- the way it is, the new trend or is there still pessimism about what is happening?

ANDREW STEVENS, CNN ASIAN PACIFIC EDITOR: It is a good question, George. Sadly, the best way of answering it is to say it is too early to call whether this is, in fact, the bottom of this stock market rout are, the measures we have been reporting from Beijing have now working. They have been gaining traction. Without a doubt we saw a big jump yesterday followed been an equally impressive rebound today. Stocks are off their bottom. If you look at the performance of the market, over the past three to four weeks, it's been a jagged performance up and down, up and down. But the general direction, the momentum, if you like, has been down. This is also a market that doesn't really bear a lot of resemblance to reality at the moment, given the fact that so many companies suspended shares from trade. The government is basically buying anyone who is selling at the moment. That's with we are.

The big question, or one of the other big questions, of course, is how damaging is this beyond the stock market? Is there going to be a ripple through the world's second-biggest economy. My colleague, Richard Quest, put that question, the significance of the stock market slump in China to the chief economist of the International Monetary Fund a few hours ago. Listen to what he had to say. (BEGIN VIDEO CLIP)

[01:35:24] OLIVIER BLANCHARD, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND: China, I think, is largely a side show for the time being. The stock market in China is very much a side show. It could have some affect on spending but probably not much. So, no, I have an optimistic view as to where we are. We are obsessed by Greece and China but when you go away from these events from the stock market in China, from the Greek discussion, I think things are more or less on schedule. It is not a great recovery but it is there.

(END VIDEO CLIP)

STEVENS: So basically, George, Olivier Blanchard downplaying the global significance of what is happening in China. Two days on. another strong rally. You have to say that there's a growing likelihood we may have actually seen the bottom here

HOWELL: Andrew, to reiterate the efforts the government has been taking to essentially hold the line, is there a mood that those efforts are work something?

STEVENS: I think so. I think that's definitely the case. This is a market that was in the grip of panic as the -- actually, Beijing itself admitted with sort of irrational trading going on. So when you get that sort of situation all sort of logic goes out the window. Not to say this wasn't a bubble to begin with but no one looking at whether these markets were actually getting toward fair value but getting everything out of the market. Beijing introduced these measures to soak up the sales. The companies took the decision on their own volition and it does distort the market completely. As these companies come back to trading from suspension, it will be interesting to see if we get a 10 or 15 percent rebound whether or not people are going to want to sell in to that rising market or think, as Beijing certainly hopes they'll think, that the worst is over, Beijing's backing us, so we can even start to buy again or at least not sell again. That's what we will be watching out for the next week.

HOWELL: We'll have to see what the next few days bring.

Andrew Stevens, in Hong Kong.

Andrew, thank you for your reporting there.

STEVENS: Thank you.

HOWELL: The stock market highs and lows in China are similar to what happened on Wall Street in 1929.

CNN's Claire Sebastian reports.

(BEGIN VIDEOTAPE)

(MUSIC) CLAIRE SEBASTIAN, CNN CORRESPONDENT (voice-over): The roaring '20s, a time of short skirts, short-term trade -- and a long, steep decline. 86 years later and some say it is happening again in China.

The Shanghai Composite, up more than 80 percent in the past year, has lost almost a third of its value in the past four weeks. Compare that to the Dow in 1929, and the graphs look eerily similar.

In the post-war euphoria of the 1920s, people borrowed money to buy stocks, a practice known as margin trading. Strategists see history repeating in China.

UNIDENTIFIED MALE: The levels of margin left handing in China are historically unprecedented. At the peak it was 12 percent of the total market float.

SEBASTIAN: That was the boom, and when it comes to handling the bust, the parallels continue.

(on camera): On October 24th, 1929, otherwise known as Black Thursday, a group of top American bankers met in this building, 23 Wall Street, then the headquarters of JPMorgan. They agreed to pull their resources to prop up stock prices. Now almost nine decades later, 21 Chinese brokerage firms are doing almost exactly the same thing.

(voice-over): In China's case, the government enlisted its brokers to buy stock to support prices. In 1929, the market crashed again four days later. What happens next in China is open to debate.

And Ann Lee is the author of "How the U.S. Can Learn from China." She says in this case the reverse maybe true.

ANN LEE, AUTHOR: Certainly, the Chinese are studying the history there as well. It is possible it will work in their case because they are going to probably be even more aggressive.

SEBASTIAN: Not everyone is optimistic.

UNIDENTIFIED MALE: That's what we saw in 1929 as well, which is the market was not at a sustainable level and all of the attempts, all the kings' horses and men couldn't put Humpty together again, and that's what we are seeing now.

[01:40:10] SEBASTIAN: The impact of the Wall Street crash, a global depression lasting almost a decade. Most believe China's bear market will be contained to China.

Each bubble and each bust is different, each difficult to manage. A hard lesson learned on Wall Street.

Clare Sebastian, CNN, New York.

(END VIDEOTAPE)

HOWELL: Now back to the financial crisis in Greece. It touches every aspect of life in that country. The banks are closed. Businesses are suffering and people are losing their jobs, but one man is doing his best to weather this storm.

Here's CNN's Richard Quest.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN HOST, QUEST MEANS BUSINESS: This is the world of sandals and feet. All styles, all types. And in this world Melissinos rules as emperor. They have been turning the best Greek leather into quality foot ware since 1920, three generations. Georgios, then Stavros (ph), and now Pantelis, the poet. They have created sandals to the stars.

PANTELIS MELISSINOS, POET SANDAL MAKER, I made for Sara Jessica Parker, for the wife of the vice president of the United States, and recently for Timora (ph), a famous model.

QUEST: I have come to be fitted with my own bit of Greek tradition and my choice is as plentiful as the legends themselves.

(on camera): Who knew sandals could be so difficult? Plato, Hermes and more. Perhaps something more modern.

MELISSINOS: The John Lennon style.

QUEST (on camera): The John Lennon.

(voice-over): I settle on the status (ph). It's a warning sign of trouble and appropriately, in business, Greece is in crisis.

But here is the exception. The fame of Melissinos has spread far. The shop is always crowded.

MELISSINOS: Business for us is good because we are making something that is handmade and people like -- still like handmade things.

QUEST: Even with such riches, life is getting more difficult. Leather, the basic raw material of the trade, is becoming harder to obtain. And the lack of cash is spreading havoc in an economy that runs on notes and coins.

MELISSINOS: In hard times, in old-fashioned society like the Greek society, it is nice to see something real in their hands. They need to see cash. This is how they understand the concept of money. They don't want to know they have whatever points in a bank account. They want to see real things, like a real tomato, real a watermelon, real money.

QUEST: Pantelis, the poet, has been working on my sandals for 20 minutes, hard work for a product that he still sells at only $38 a pair. When you asked him why he doesn't charge more, he just shrugs.

(on camera): All in all, everything's snug.

Perhaps the Greek government and the Eurozone could learn a thing or two from the poet sandal maker where everything here seems to be a perfect fit.

Richard Quest, CNN, Athens.

(END VIDEOTAPE)

HOWELL: Basically, benefitting from the fact it is handmade there.

Just ahead here on CNN NEWSROOM, the remains of a little girl found in a trash bag on the Boston shoreline. The desperate search to find out who she is.

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[01:46:52] HOWELL: Welcome back to CNN NEWSROOM. I'm George Howell.

In the U.S. state of Massachusetts, authorities are hoping the public can help them to solve a gruesome and heart-breaking mystery. The body of a young girl, possibly 4 years old, was found nearly two weeks ago in a trash bag along a rocky shoreline.

CNN's Alexandra Field has more.

(BEGIN VIDEOTAPE)

DAN CONLEY, SUFFOLK COUNTY, MASSACHUSETTS, DISTRICT ATTORNEY: I think we can all agree she is precious and deserves the dignity of a funeral and burial under her own name.

ALEXANDRA FIELD, CNN CORRESPONDENT (voice-over): Her own name, because right now to the authorities she doesn't have one. Police call her only Baby Doe.

A computer generated picture shows what she may have looked like, a 4- year-old with big brown eyes, long brown hair. She was wearing polka dot leggings and this zebra-striped blanket found with her. Authorities are released images of both hoping someone may recognize them.

Baby Doe's body discovered discarded in a trash bag along the shore of Deer Island, Massachusetts, a place where waste water is treated just east of Boston's Logan Airport.

CONLEY: We appeal to the caregivers, the parents, step forward, clear your conscience. No person deserves to be discarded like. This at the same time, I do worry there may be other children in the home that need our attention and protection.

FIELD: Online, tens of millions are sharing her story. Sharing their grief and searching for answers.

An early flood of tips suggested that she could be a 3-year-old who went missing from West Virginia in 2011. Police have since ruled that out.

The National Center for Missing and Exploited Children is pouring over the databases, looking for a match. ROBERT LOWERY JR, VICE PRESIDENT, NATIONAL CENTER MISSING AND

EXPLOITED CHILDREN: Lots of people are calling in with tips and leads and we want them to continue. We are checking on the welfare of a lot of children, 24 welfare checks on children who resembled Baby Doe.

FIELD: Police say they are not sure when Baby Doe died. Toxicology tests will show if she was poisoned or given drugs. There were no visible signs of trauma to her small body. Baby Doe, 3.5 feet tall, weighing just 30 pounds.

(on camera): Along with the hundreds of tips that poured in, there have been offers of help from funeral homes and individuals, even churches who are offering to provide burial services for the child. But investigators are focused on who is finding out who's responsible for this little girl and what happened to her.

In New York, Alexandra Field, CNN.

(END VIDEOTAPE)

HOWELL: We'll be right back after this.

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[01:53:18] HOWELL: Welcome back to CNN NEWSROOM. Let's turn our attention to Wimbledon. Serena Williams is headed to the women's single final again after she beat her archrival Maria Sharapova in Thursday's semi final match.

World Sport's Christina MacFarlane has the details.

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CHRISTINA MACFARLANE, CNN WORLD SPORT CORRESPONDENT: The women's finals are set here at Wimbledon. 20-time grand slam champion Serena Williams will take on Gabine Muguruza of Spain. Serena survived three tough matches to breeze through the semi final against long-time rival Sharapova. She will be competing in her eighth Wimbledon final and a chance to keep on track for the potentially historic calendar grand slams. However, could Gabine Muguruza caused an upset on center court on Saturday? The young Spaniard put Williams out of the French Open a year ago. Today, she played the match of her life against the player from Poland. Gabine Muguruza is through to her first ever grand slam final and she becomes the first Spanish player to come this far since 19 years ago.

Christina MacFarlane, CNN, Wimbledon.

(END VIDEOTAPE)

HOWELL: So when a U.S. robotics company challenged a Japanese firm to a duel of giant robots, Japan said, "Bring it on." And now the Asian team is getting ready for a clash of epic proportions.

Our Jonathan Mann has the story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We have a giant robot. You have a giant robot. You know what needs to happen. We challenge you to a duel.

[01:55:06] MANN: It's fighting talk from U.S. robotics company Mega Bots, with a challenge to the Japanese rival, Sutobashi (ph).

UNIDENTIFIED MALE: Prepare yourselves and name the battlefield. In one year, we fight.

MANN: Both companies make giant robots big enough to ride in. Team U.S. has the six-ton Mark 2 Mega Bot, piloted by two people. And for Team Japanese, the Kuratas, a one man robot, which is already commercially available. Kuratas seems confident about its odds.

UNIDENTIFIED MALE: We can't let another country win this. Giant robots are Japanese culture. Yes, I'll fight. Absolutely.

MANN: There's one condition, Kuratas says building something and sticking giant guns on it is super American and what the fight really needs is melee combat, hand to hand. Watch out for that sometime next year.

Jonathan Mann, CNN.

(END VIDEOTAPE)

HOWELL: Which robot will win? We'll have to see.

We thank you for watching this hour of CNN NEWSROOM. I'm George Howell at the CNN Center in Atlanta.

Another hour of news is straight ahead with my colleague, Natalie Allen. You are watching CNN, the world's news leader.

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