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European Commission Hits Apple With Record Tax Bill; Gene Wilder Dies at 83; Italy Rescues Thousands At Sea; Aleppo's Flower Man. Aired 8-9a ET

Aired August 30, 2016 - 08:00   ET

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

[08:00:13] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now, Apple's record tax bill: the tech giant is ordered to pay back more than $14 billion to Ireland. We'll break down this major verdict.

Also, a dramatic rescue on the high seas: more on the operation to save thousands of migrants risking their lives to make it to Europe.

And a lifetime of laughter comes to an end: the entertainment world bids a fond farewell to Gene Wilder.

And we begin with a developing story that could have a profound effect on the entire tech

industry. Now, the European Union has slapped Apple with a tax bill of some $14.5 billion. The EU commission says the benefits of lower taxation

Apple has enjoyed in Ireland are illegal.

Both Ireland and Apple say that they will appeal.

Now, CNN Money's business and tech correspondent Samuel Burke joins us live from London with more on the story. And Samuel, first some context here.

What led us to this decision? Why is Apple in this position that it has to pay back $14.6 billion plus interest?

SAMUEL BURKE, CNN MONEY: Kristie, let's make this as simple as possible. Apple is an American company that had a tax arrangement in Ireland that

allowed them to pay a very low rate. They've always said we have this agreement with Ireland. Ireland says it's legal and Ireland has always

said publicly this is within the framework of our country.

But, today the European Union came out and said that tax break, as they're basically calling it, is specific to Apple, and therefore it is unfair to

the rest of the companies who want to compete in Ireland, and the rest of the European Union. And they said that Apple, it's not a penalty, they say

Apple owes back taxes of more than $14.6 billion. That is the largest tax

decision of its kind in the history of the European Union. Plus, they have to pay interest, so it could be even bigger.

But the number that really stands out to me, Kristie, is all along we've known that companies, more or less, pay about 12.5 percent tax in Europe --

in Ireland, rather. And I want to put up on the screen what the European Commission published today. They found that in 2003, Apple paid an

effective corporation tax of just 1 percent. And in 2014, 0.005 percent.

And that is, in part, what helped lead the commission to this decision to tell Ireland to

collect these back taxes from Apple.

LU STOUT: And Samuel, what do you think will be the wider impact of this decision? I mean, what impact is it going to have on Apple, on other

companies, especially American multinational companies, on Ireland and other EU nations?

BURKE: Kristie, there are a lot of groups here who have a lot to lose.

First off, Apple may lose well over $14 billion. Of course, many would argue that they owe that money and they should have paid it a long time

ago.

Ireland could lose out on Apple. Apple could move to other countries, as well as other companies that have their bases -- their tax bases at least

here in Europe.

We know that Netherlands and Luxembourg, for example, have had deals with Amazon and

Starbucks that have already come under the fire of this commission. So those companies could leave here.

So we could see Europe under a lot of pressure. It sounds like very little tax, but if you're one of the countries collecting that very little tax it

can add up a lot for you.

And finally here you have to think about the United States. If Apple has to pay that amount

of money to Ireland, they get a foreign tax credit. So the United States' budget could all of a sudden be a dip or a dent that correlates to

somewhere over $14 billion that was not a number the United States is expecting. So this could have a huge negative impact on the United States

federal budget.

LU SOUT: Now, there's a lot at stake here. But the story doesn't end here, does it. I mean, Apple and Ireland say they will appeal. Could this

decision be overturned?

BURKE: It could be overturned. It going to go through the system now. I just want to read you what Apple has to say in response to this, much like

Ireland, they say they are going to appeal this decision. And a spokesperson went on to tell us the following: "the European commission has

launched an effort to rewrite Apple's history in Europe, ignore Ireland's tax laws, and upend the international tax system in the process. The

commission's case is not about how much Apple pays in taxes, it's about which government collects the money. It will have a

profound and harmful effect on investment and job creation in Europe."

And certainly if Apple employees lose their jobs in Ireland, those people won't be very happy. And really at the heart of this story, it's much like

the Brexit. Even though Ireland is not a part of the UK, Kristie, because it comes down to should a country's laws supersede the EU's laws? And

that's really what this fight is over.

[08:05:17] LU STOUT: All right, Samuel Burke reporting for us. Thank you, Samuel. And Apple isn't the only U.S. tech company finding roadblocks in

the way it does business in Europe. Earlier this year, the European commission filed antitrust charges against Google. The commission accused

Google of abusing its market dominance and forcing manufacturers to preload Google apps onto Android devices.

Now, Europe has also clashed with Google over the way the company views freedom of information.

Now, Europe's top court got Google to change the way it shows search results two years ago by ruling that people have the right to be forgotten.

That means, Google and other search engines have to remove unwanted links, usually about personal information, even if the links are relevant search

results.

Now, the Italian coast guard says it has rescued 6,500 migrants in just over one day. Families from Sub-Saharan Africa were drifting off the coast

of Libya in these overcrowded boats just clinging to anything that could keep them afloat.

The Coast Guard says it coordinated 40 operations to rescue these people and one of its busiest days in years. The international organization for

migration says already this year more than 3,000 people have died trying to cross the Mediterranean Sea.

And for more on the story let's go to CNN Contributor Barbie Nadeau. She joins us now live from Rome. And Barbie, this was a remarkable rescue

operation. Tell us more. How did Italy's coast guard manage to save thousands of migrants at sea?

BARBIE NADEAU, CNN CONTRIBUTOR: Well, you know, 6,500 people is a lot considering especially that they saved 1,000 the day before. That means

the access they have out at the sea right now are taxed to the limit. They have to after rescuing these people, they have to bring them to the Italian

shore where they'll be processed. Then they have to go back out to sea. There are four operations going on right now to save even more people.

But there are a lot of things to think about here, looking at it in context. The people that were rescued on these boats didn't just begin

their journey in Libya. You know, they've been traveling for weeks and many, many months with these little kids, young children, before they even

get on the boat. And then when they get to Italy, the journey really begins for so many of them as they apply for asylum, as they try to find

work, as they try to find other members of their family. It's just one part of a -- of a very, very expensive process in which people are escaping

some of the worst atrocities in the world to trying to find relative safety, Kristie.

LU STOUT: Yeah, it is such a long and treacherous journey. And in this group of thousands of migrants who are rescued, a pair of 5-day-old newborn

twins were saved. I mean just imagine what they must have endured, what kind of conditions they endured, and also the question of what will happen

to them next.

NADEAU: Well, that is the big question. Europe is under a lot of pressure to sort of take some of these migrants and refugees that land in Italy, and

that were landing in Greece as we saw last year.

The problem is, though, Europe doesn't want them. And Italy really isn't - - is really pushed to the limit in terms of what they can do to take them in. There's a recession still going on in Italy in terms of Italians trying to find work

and trying to get themselves economically back on their feet.

There's just not a lot that they can do to help these refugees and migrants. And the borders are continuing to close in (inaudible) the

border between Italy and France, very difficult to cross that border for these people that are trying to get north, especially trying to meet their

families. It's a very difficult situation.

There's some seasonal work here with the agricultural community, but not enough to sustain all of these many tens of thousands of people that are

coming.

But 6,500 people in one day is really taxing the system. And there are still many, many more boats coming, many boats to rescue, Kristie.

LU STOUT: Yeah, thousands and thousands of migrants saved in just 30 hours, a very remarkable rescue. Barbie Nadeau reporting for us live from

Rome. Thank you.

Now, another chapter of the war in Syria is unfolding as Turkey intensifies its cross border offensive. Now, Turkish state-run media says the military

shelled 21 targets in northern Syria over the past 24 hours, but it did not specify which targets.

Now Turkey has been pummeling both ISIS strongholds inside Syria and Kurdish forces. And and that has raised alarm bells from the U.S., which

is an ally of both Turkey and the Syrian-Kurdish forces who are crucial in the fight against ISIS. The Turkish president has vowed to take down any

group the government sees as a threat to Turkey's borders.

The city of Aleppo is at the epicenter of Syria's civil war. But one man managed to find his

own private oasis providing plants, and flowers as symbols of beauty despite the destruction around him.

Krishnan Guru-Murthy has the story.

(BEGIN VIDEOTAPE)

[11:10:13] UNIDENTFIED MALE: (SPEAKING IN FOREIGN LANGUAGE)

KRISHNAN GURU-MURTHY, BBC CHANNEL 4: He's called Abu Wad (ph). It means father of the flowers. That is his young son, Ibrahim. For five years of

hellish war, this pocket of serenity has been perhaps the most amazing survivor in Aleppo.

Abu Wad runs the city's last garden center.

UNIDENTIFIED MALE (through translator): My place here is worth billions of dollars. I own the world. We ordinary people own the whole world. This

world is ours.

GURU-MURTHY: But Abu Wad's world is in rebel-held Aleppo, and it's been bombed relentlessly by the Syrian regime and now the Russians.

We met during a lull in the bombing earlier this year. Of the million people who lived in this part of the city, just 250,000 remained. And

throughout this time, Abu Wad hasn't stopped gardening.

UNIDENTIFIED MALE (through translator): The sound of war is like Bethoveen's music. We have become accustomed to this music. Without it we

couldn't manage. So we think of it as music now.

This one was hit by shrapnel from a barrel bomb. But it is still alive, thanks to god. (SPEAKING IN FOREIGN LANGUAGE)

GURU-MURTHY: Aleppo was one of the great cultural beauties of the world, and one of the longest inhabited. Today, so much of it has been laid

waste, and thousands have been killed. Defiantly amid all this, Abu Wad's whole existence seems dedicated to the beauty of life.

UNIDENTIFIED MALE (SPEAKING IN FOREIGN LANGUAGE)

UNIDENITIFIED MALE (through translator): How much is it?

UNIDENITIFIED MALE (through translator): 300.

GURU-MURTHY: This customer chooses rosemary plants.

UNIDENTIFIED MALE (through translator): Take them to the roundabout where my car is.

UNIDENTIFIED MALE: (SPEAKING IN FOREIGN LANGUAGE)

GURU-MURTHY: Rosemary, not for rembrance here, as much as resistance.

UNIDENTIFIED MALE (through translator): For us, making remembrances beautiful gives meaning to life. It motivates people. So we don't only

see destruction from the construction. We continue to live and rebui9ld that which has been destroyed.

GURU-MURTHY: Some Aleppans buy the flowers and plant them on roundabouts in the city, small islands of vitality, and surely a comfort to those who

by choice, or lack of it, remain in Aleppo, because to live here is to live every day with grief.

13-year-old Ibrahim gave up school to stay close to his dad. He helps in the garden center, but is clearly weighed down by the worries of war.

IBRAHIM (through translator): The customer Abdul Aziz used to buy flowers here, but now he is dead. But whoever wants to buy flowers is welcome

here. Sometimes it's people from the hospital who come here. And sometimes Free Syrian Army fighters come to buy flowers.

GURU-MURTHY: Freshly cut flowers in the middle of Aleppo's war seems too extraordinary to believe.

It didn't last. In the final days of May, six weeks after we met, the intense bombing by the Syrian regime and Russia began again. A bomb landed

near the garden center. Abu Wad was hit and died immediately. The nursery is closed. Nobody comes to buy flowers anymore.

And this is where Abu Wad, the gardener of Aleppo, is buried, with no blooms to decorate the

graves. Without his dad, Ibrahim seems lost.

IBRAHIM (through translator): What do you want me to do?

UNIDENTIFIED FEMALE (through translator): Your dad -- God rest him -- before he died, you were working with him?

IBRAHIM (through translator): Yes.

UNIDENTIFIED FEMALE (through translator): He (inaudible) care for your brothers, just like you did?

IBRAHIM (through translator): That's true.

UNIDENTIFIED FEMALE (through translator): You knew something like this might happen?

[08:15:03] IBRAHIM (through translator): I know.

UNIDENTIFIED FEMALE (through translator): So what are you planning to do now?

IBRAHIM (through translator): I really don't know.

GURU-MURTHY: In time, perhaps he will remember how this father described the cycle of life.

UNIDENTIFIED MALE (through translator): The flower is finished now, but the new one can now start to grow. Flowers help the world, and there is no

greater beauty than flowers. Those who see flowers enjoy the beauty of the world created by God. And when you smell them they nourish the heart and

the soul. The essence of the world is a flower.

(END VIDEOTAPE)

LU STOUT: Such a stirring and beautiful report there from Krishnan Guru- Murthy.

Now, Kkyrgyzstan is reporting a suicide attack on the Chinese embassy in the capital Bishkek. The government says that the bomber drove a vehicle

into the gates of the embassy and then detonated. Three local employees were injured and China is calling the attack an act of extremism and

violence. It says there has been no claim of responsibility so far.

You're watching News Stream, and still to come, claims of racism surface in the U.S. presidential campaign.

And Singapore has reported more cases of the Zika virus. We'll hear from a medical expert

on the impact of the virus in Southeast Asia when we come back.

(COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong, you're back watching News Stream. And senators in Brazil are expected to vote in the

coming hours on whether to oust suspended President Dilma Rousseff. Mrs. Rousseff, she spoke at her impeachment trial on Monday defending her

record.

Now she is accused of manipulating the budget to hide a shortfall before her 2014 re-election. She says she committed no crime.

U.S. President Barack Obama is scheduled to meet controversial Philippines President Rodrigo Duterte on the sidelines of a summit in Laos next week.

Likely to be high on the agenda, human rights in the Philippines and the new president's crackdown on the drug trade.

A White House spokesman says the two leaders will also discuss the ongoing disputes in the South China Sea.

There are just over two months to go until election day in the U.S. and accusations of racism are being raised on both sides of the political

divide. Now, separately Donald Trump is pulling personal life of a senior Hillary Clinton aide into the campaign. Jason Carroll has more.

(BEGIN VIDEOTAPE)

[08:20:15] JASON CARROLL, CNN CORRESPONDENT (voice-over): Accusations of racism leading to more personal attacks on the campaign trail.

KELLYANNE CONWAY, DONALD TRUMP CAMPAIGN MANAGER: People will look at that and say, you seem desperate.

CARROLL: Donald Trump's campaign manager hitting back at Hillary Clinton's running-mate for remarks he made last week, linking Trump to former Ku Klux

Klan grand wizard David Duke.

SEN. TIM KAINE (D), VICE PRESIDENT CANDIDATE: Donald Trump is pushing their values, Ku Klux Klan values, David Duke values.

CONWAY: In the case of Tim Kaine, I mean, we expect the rough and tumble politics, the lies from Hillary Clinton, her folks. But Tim Kaine, you've

been a mayor, a senator, a governor, you're running for vice president, Harvard Law degree and you stoop so low that you are making these

allegations. And I think it is going to backfire.

CARROLL: But Duke, who is running for a Senate seat in Louisiana is promoting Trump in robo-calls for his Louisiana Senate campaign.

DAVID DUKE, FORMER IMPERIAL WIZARD OF THE KU KLUX KLAN: It's time to stand up and vote for Donald Trump for president and vote for me, David Duke for

the U.S. Senate.

CARROLL: Trump had been criticized for not disavowing Duke's endorsement quickly enough during the primary. Trump's campaign did quickly disavow the

robo-calls in a statement and on CNN.

KATRINA PIERSON, NATIONAL SPOKESPERSON, TRUMP CAMPAIGN: It's absolutely disturbing the Trump campaign has no knowledge of the campaign that David

Duke is running and we have disavowed David Duke and don't condone any of the activities that he's doing.

CARROLL: At a fundraise in the Hamptons, Clinton saying Duke Senate bid is a by-product of Trump dog whistles to racist voters.

UNIDENTIFIED FEMALE: Nobody knows how well he is going and how his embrace of Trump and Trump's acceptance of him could out that man, that despicable

man, in the Senate of the United States.

CARROLL: This is as Trump supporter Pastor Mark Burns apologized after tweeting this photo of Hillary Clinton in black face, mocking her outreach

to black voters.

UNIDENTIFIED MALE: The last thing I want to do is to offend people.

CARROLL: Meanwhile, the Republican nominee seizing on the latest sexting scandal surrounding the husband of long-time Hillary Clinton adviser Huma

Abedin.

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: She is married to a guy that is uncontrolled and uncontrollable.

CARROLL: Abedin announcing her separation from disgraced former Congressman Anthony Weiner after The New York Post published suggested pictures he

allegedly sent to another woman with his child lying next to him. Something people close to the family tells CNN left Abedin furious and sickened.

Trump using the opportunity to slam Clinton's quote, "bad judgment."

TRUMP: He's a sick person and, you know, she has access to classified information. To think that is very likely that much of this information

Anthony Weiner would know about. And I think it's something that was terrible.

(END VIDEOTAPE)

LU STOUT: And that was CNN's Jason Carroll with that report.

Singapore says that 15 more people have caught the Zika virus. That means there are now 56 known cases of locally transmitted Zika inside the

country. And all those cases, they came from the same neighborhood.

Now, the ministry of health warns that the virus could spread to other parts of the city.

Now, let's get more of this from Peter Piot. He is the director of the London School of

Hygiene tropical medicine. He also co-discovered the ebola virus. He joins us now from London via Skype. Peter, thank you so much for joining

us once again here on News Stream.

Your thoughts on the situation in Singapore. Can Singapore stop the Zika virus, or will it spread further?

PETER PIOT, LONDON SCHOOL OF ECONOMICS: Well, if there's one country that can really do a good job at controlling an epidemic like Zika it's

Singapore. But let's not forget that Zika virus has been present in Asia for quite awhile. That countries like

Thailand, Vietnam, Indonesia, Philippines, have also had outbreaks.

And this shouldn't come as a surprise, because if you want to know where the risk is for Zika, look at where the mosquito is that transmits it, and

that's Aedes Aegypti, look where Dengue is, and then that means that much of Southeast Asia and East Asia and South Asia is actually at risk.

So with the rainy season coming up in Southeast Asia, and a huge population concentrations, I

think there is a serious, serious risk for a major Zika epidemic.

LU STOUT: Yeah, you say that the Zika virus has been present for quite a long time already in Southeast Asia. But this time around this current

outbreak it's been linked to birth defects like microcephaly. So, how worried should pregnant women in Singapore be? And should pregnant women

travel to Singapore?

PIOT: Well, microcephaly and birth defects have been first described in Brazil during this major, major ongoing Zika epidemic. And before there

were no spikes of that.

Why is that so? We don't fully understand it. It may be that people became infected, pregnant women became infected with Zika virus because

it's a huge tragedy, but it's a fairly rare event. But to be on the safe side now, it's particularly for pregnant women in the first trimester of

pregnancy that are at risk. And it would be safe to not travel to areas where Zika transmission is going on. Now in Singapore that's in one part,

southeast part of the island, but one should be very cautious.

But Zika control is based really on vector control. In other words, making sure that there are no breeding places for mosquitoes, and that can be a

little can, a small can can generate thousands of mosquitoes.

So that's the basis, and then using repellent for individuals.

[08:26:05] LU STOUT: So we need to exercise caution here.

We know that Hong Kong reported its first imported case of the Zika virus last week. It was from a tourist who was in the Caribbean in early August.

What are the warning signs of a Zika infection, to self-screen, to figure out if I have the virus, or to screen out others with the virus?

PIOT: Well, one of the challenges is that Zika infections is often asymptomatic, and certainly not specific. It's like -- more like a flu

like syndrome with some rash. It could be Dengue, you know, that looks very similar. But most people don't suffer that much from it. And that's

why they would may not even seek medical attention.

Diagnosis not so easy, diagnostic tests are not there. But the fact that now that Zika is present in Asia that every physician should really

consider it in people with that kind of flu-like syndromes, Dengue like symptoms, even if they have not traveled to Latin America or the Caribbean

because it's present in Asia now.

LU STOUT: Yeah, absolutely. A lot more vigilance is required in the region now.

Now, Dr. Peter Piot joining us live from London. Thank you so much for your expertise and take care.

Now, as discussed, Singapore is not the only Southeast Asian nation dealing with local Zika virus cases. According to the World Health Organization,

it says that Thailand, Vietnam, and The Philippines have evidence of local mosquito-borne infections. Thailand has

reported almost 100 cases across ten provinces. The European Center for Disease Prevention and Control has listed

Thailand as a, quote, red alert country, with widespread transmission.

You're watching News Stream. Still to come on the program, we have more on Apple's multibillion dollar tax bill after the break.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:36] LU STOUT: Now let's talk more now about Apple's massive tax bill and what prompted the EU's ruling.

Now it brings an end to a controversial sweetheart tax deal that Apple had in Ireland.

So how did that deal work? Now, we're joined by Kelly Strickland-Coutinho. She is a tax expert and a barrister with 39 Essex Chambers. She joins us

now live from London. Thank you so much for joining us. And please give us more background to this decision. I mean why was Apple, according

to the European commission, paying significantly less tax than other businesses in Ireland?

KELLY STRICKLAND-COUTINHO, BARRISTER: Well, it's a very interesting question. And it goes right to the key of the issue that we have here,

which is that Apple are said to have had a favorable treatment because, they say, it's said that the Irish government have offered them a

favorable, and selective deal, which allowed them to pay less tax.

I have no doubt that Ireland and Apple's response to that is going to be that, in fact, everybody was entitled had they asked for the same treatment

to get that kind of tax deal from the government. Essentially what's really going on here is that the profits that Apple had generated within

Europe were being attributed to Ireland, and were being taxed at relatively low rate there and that's something which happens within the EU generally

and is fairly common.

LU STOUT: OK. Now both Apple and Ireland say they're going to appeal the rule ruling. How is that going to proceed?

STRICKLAND-COUTINHO: Well, there's been a case of a similar type which has gone -- started to go through the courts, and that's to do with Starbucks.

And essentially what will happen is that both Apple and Ireland will put in their papers to say the basis on which they appeal. And the European

courts will manage how those two cases work together.

As I say, there are some cases which are already on their way through the courts. So there is one to do with Starbucks, and there are a number of

other ones to do with multinationals which were established in Belgium.

So there are likely to be a range of these cases going through. But Apple is really a crucial

one, partly because of the amount of money involved, and partly because the issue that they're talking about is whether it's appropriate to have

profits taxed in one country where they arise within the EU generally.

LU STOUT: That's right. And we're talking about a lot of money here in back taxes, $14.5 billion. It's not including interest. Apple is

appealing this. We know Apple is a powerful company. It has armies of lawyers and lobbyists. It is confident that the decision will be

overturned. Will it?

STRICKLAND-COUTINHO: Well, this case is a real game changer for international tax. And of course the U.S. government have lobbied the

European commission heavily. Apple has itself also lobbied heavily. I think it's very likely that these really important points are going to get

tested in the courts in a way that we may well see changes to the decision that the

European commission has taken.

LU STOUT: And also Apple has said that the EU ruling will have a profound and harmful effect. What kind of effect is it going to have investment in

job creation in Europe? And how will that be weighed during the appeal process?

STRICKLAND-COUTINHO: Well, one of the really interesting things about the decision that's come out today is that the European Commission say that

Ireland has to recover that very large sum of money from Apple, but it also says that if other countries see appropriate to tax those profits, then the

amount that Ireland will have to recover is going to be reduced. And what that's really about is looking at where it's appropriate for profits to be

taxed within the EU.

That's going to be really quite important and looking at how those various amounts of money

might be allocated within the EU, is something that the international tax system has been looking at for a long time.

[08:35:36] LU STOUT: Well, a number of people are watching this decision. And of course it's not over yet. The story continues with the appeal

process. Kelly, we'll leave it at that. Thank you very much for joining us here on News Stream. Take care.

Apple's tax bill, it was announced by the EU commissioner for competition. And you can

listen to an interview with her in about an hour from now. Just tune in to CNN Money with Maggie

Lake.

Now, Facebook has stopped using humans to write news descriptions in headlines for its trending box, instead it's relying on computer

algorithms. Now, you can see the new version on the right here. The topics, they no longer have actual headlines.

Instead, there's just this very brief description and the number of people talking about them.

Now for more on the story, CNN Money's Brian Stelter joins us now live from our New York bureau. Brian, good to see you. And the question is this,

has ditching human editors led to a fake news problem for the company?

BRIAN STELTER, CNN MEDIA CORRESPONDENT: You know, so far there's already a problem. It's already been a few days since this algorithm took

over. The editors were removed. And already there's been one prominent example of a fake news story popping up in the trending box.

This was a story over the weekend about Fox News anchor Megyn Kelly, a claim that she was leaving the network, she was being kicked out, which was

flatly untrue. Now, this isn't the kind of thing that's in the gray area where it can be debated. It's not an opinion story. It's just an untrue

story made up by right wing websites that don't like Megyn Kelly.

So it pops up in the trending news box. It stays there for a better part of a day until Facebook fully removes it. And now they are apologizing.

Now, here's a statement from Facebook saying they have acknowledged this problem. They know it was a mistake and they

apologize for it. It's been corrected.

And the statement goes on to say that they know there's a broader issue with hoax and fake

websites. They say we're working to make our detection of hoax and satirical stories quicker and

more accurate.

Now that's what they say but there's a lot of skepticism about what Facebook is going to

do about this problem.

Now, as you know, Kristie, when you log on to Facebook you'll see fake articles all the time that friends of yours are sharing, family members

are sharing. We all have it if we use Facebook.

I'm not here to say that Facebook should stop you from posting whatever you want to post, but at least in the trending box they've got to do a better

job of making sure that truly fake news doesn't show up.

LU STOUT: There's also a story here of unintended consequences. Because it was back in May, Brian, when we were talking about Facebook was being

accused of political bias. So that is when they made the decision to get rid of the human editors and replace them with an algorithm.

Now we have this fake news issue, this other consequence to that decision. Facebook says it's going to address it,it knows it's a problem. Can it

address this problem?

STELTER: This is a very sticky issue for Facebook. I mean, you think about how this algorithm works, it is looking at what people are sharing on

Facebook. It's looking at what people are posting onto their own pages. And based on that, it is deciding what is trending based on what is

actually being shared. So it lots of people are posting fake or made up or misleading articles, those stories are automatically going to be funneled

into the trending news box and are going to be given more weight by Facebook.

It's a problem not just on Facebook, but honestly of users. Because if people -- if people

believe the made-up stories that are online -- and I'm not just talking about stories that are misleading or stories that are opinionated, I'm

talking about stories that are meant to trick you. It's a growing problem online and Facebook is suffering the consequences.

LU STOUT; All right Brian Stelter reporting for us live from New York. Thank you, Brian, take care.

And you're watching News Stream. Still on the program, Hollywood is saying good-bye to actor Gene Wilder who died at the age of 83. And we're going

to take a look back at his comedic legacy.

(COMMERCIAL BREAK)

[08:40:54] LU STOUT: Welcome back.

Now Hollywood legend actor Gene Wilder has died at the age of 83. And Wilder was best known for his comedic roles in 1970s and '80s.

Jeanne Moos looks back at his unforgettable career.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: Willy Wonka has left this world.

Actor Gene Wilder changed it with his performances from his Oscar nominated role in

The Producers to his other Oscar nominated role in Young Frankenstein.

UNIDENTIFIED MALE: Frankenstein.

GENE WILDER, ACTOR: Frankenstein. You must be Igor.

UNIDENTIFIED MALE: No it's pronounced Igor.

MOOS: Wilder died at the age of 83 from complications of Alzheimer's, though his nephew said it never stole his ability to recognize those

closest to him.

There was nothing wild about Wilder in person. He had a sweetness about him even when deflecting a question.

WILDER: Are you asking me if I want to have a baby?

UNIDENTIFIED MALE: You know, yeah.

WILDER: Well, I'll tell you after the interview.

MOOS: He was an actor who painted water colors, who married four times. His third wife was SNL favorite Gilda Radner, who got ovarian cancer even

as Wilder himself successfully battled non-Hodgkin's lymphoma.

WILDER: And I'll sign right now, I'll exchange life spans with you. The irony is I meant it. I thought that she'd pull through and that she would

live longer than I would.

MOOS: Five years into the marriage, she was gone.

Wilder's fourth wife survives him.

There's a big hole in comedy's heart at the loss of Gene Wilder, tweeted comedian Larry Wilmore.

Wilder blazed his way through Mel Brooks comedies. A hard drinker with a quick draw.

No wonder kids liked him. He was an expert in not growing up.

WILDER: A lot of men are babies. To grow up is -- it something that comes easier to women.

A toast to your imagination, Gene Wilder. You'll live in ours.

Jeanne Moos, CNN, Nnew York.

(END VIDEO CLIP)

LU STOUT: And there's no doubt about that.

And that is News Stream. I'm Kristie Lu Stout.

END