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Connect the World

World Stocks Down Sharply Again in Trading; Chinese Couples Using Americans as Surrogates; Immigration Crisis on Macedonia's Border; ISIS Blows Up Ancient Temple in Palmyra. Aired 11:00a-12:00p ET

Aired August 24, 2015 - 11:00   ET

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

[11:07:14] BECKY ANDERSON, HOST: Well, you're watching CNN. This is Connect the World with me Becky Anderson. Welcome.

Billions wiped off the value of global shares. Oil at a six-year low. This is the Dow Jones right now. And this is good news compared to where

it was at the open some couple of hours ago.

It plunged 1,000 points within minutes of opening today. So, a bounce back. Investors, though, calling this Black Monday rattling the markets'

concerns over the health of China's massive economy. And it's not just U.S. markets, earlier Asia closed down heavily. The Shanghai composite

dropping eight-and-a-half percent, wiping out all of the gains made this year. And it didn't stop there. Europe's markets following the global

downward trend, too.

Well, as we continue keeping an eye on these U.S. markets, this is almost the close of play across Europe as you see there, and these oil

markets also down. Just a year ago, a barrel of oil cost about a $100. Brent Crude, the international standard, fell before $44 alone, not seen

since 2009. U.S. crude now at a six year low, trading briefly below $39 a barrel.

Well, there are lots of numbers in there. Lets break them all down for you. Emerging markets editor John Defterios joining me now.

And John, global markets down. Early doors at least in the U.S. Investors were also heading for the exit in the wake of the European and

Asian stock markets.

You are emerging markets editor. And it's weakness in those markets that is worrying so many people. Why, John?

JOHN DEFTERIOS, EMERGING MARKETS EDITOR: Especially in China, Becky, right now. Let's be candid here. The world got very used to China growing

between 8 and 10 percent for a quarter century. China will be lucky to hold on to 6 percent in 2015. And that perhaps will be a struggle. That's

why we see equity markets being scooped out today.

Outside the Dow Industrial and that 1,000 point drop, we saw selloffs between 3 and 5 percent right across the board. You mentioned one of the

standouts was Shanghai with that drop of 8.5 percent. But let's go regionally here and those markets that are linked to commodities like

Dubai. It's now in a bear market in the last month with a drop of 20 percent.

Saudi Arabia down another 7 percent today. Its first day of trading was Sunday. That's a drop of 15 percent in two days. And again it is

linked to commodities, particularly like oil. You talked about the fall of North Sea Brent, and also WTI in the United States. We're seeing a fall of

4 percent today, breaking right though $40 a barrel, touching $39 in the United States. And North Sea Brent going from $45 down to $43.

And in the backdrop, Becky, there's a concern now that the U.S. will raise interest rates. They're sitting at a historical low at a quarter

percent. The average for the last 40 years is hovering around 6 percent.

But many worry that the party is over. I would find it very difficult for the U.S. Federal Reserve with this much uncertainty in the markets to

start raising interest rates with China slowing down.

[11:10:16] ANDERSON: Yeah, it does seem ironic, doesn't it, that the idea of a rise in interest rates, although that might hurt investors in

some equities, but good news on the U.S. economy might actually equal this sort of performance on the markets.

John, we've mentioned falling oil prices. Iran's oil minister came out overnight saying that an emergency OPEC meeting could be effective in

stabilizing prices and that Iran will be raising their own production as soon as possible.

He said, quote, if Iran's oil production hike is done promptly, we will be losing our market share permanently.

What do Iranians want to achieve with an emergency summit?

DEFTERIOS: Well, they're trying to build some space for themselves within OPEC and in the global economy for oil to be released if that deal

is signed in congress on September 17. Bijan Zangeneh calling for an emergency meeting.

Let's remember, though, who is the architect of this strategy to flood the market with oil. That's the world's number one exporter and the

largest play within OPEC, which is Saudi Arabia.

Now, the oil minister for Saudi Arabia said we'll never cut oil production again. I spoke to a number of different Gulf sources here,

which is in that camp of Saudi Arabia's right now who said, John, no reason to call an emergency meeting, because we don't have a strategy to alter our

plans.

If Russia comes to the table, a non-OPEC player and says we'll cut production, we may talk about calling an emergency meeting, but it's far

too early to see that.

The other twist to the Iranian statement today is that we see Saudi Arabia on one side and Iran on the other. And these are the geopolitics

playing out there in the Middle East at the same time.

ANDERSON: Let's talk about other commodities, John, if we can. This isn't just about oil, is it? What influence is this having on other

emerging markets?

DEFTERIOS: Well, Becky, this is the core question. It will reflect something much bigger at play right now. And the big question is outside

the United States, which is pretty stable and growing right now, and the potential threat of raising interest rates, who will grow to support the

world economy?

China at 6 percent doesn't drive commodity demands. We've seen a big selloff in products like coal and iron ore. 15 to 20 percent correction

going down to lows we didn't see since the global financial crisis of 2008.

So, Southeast Asian markets, African markets, Latin American markets and their currencies seeing record lows at this stage, because the demand

is not there.

Now point back to 2008 when we had this financial crisis China spent $600 billion to try to prop up the Chinese economy and the world economy at

the same time. There is no discussion about a Chinese stimulus package of that scale right now. And that's why we saw that market tumble 8.5 percent

and why global markets are so concerned at the same time, Becky.

ANDERSON: On the status of the markets throughout the hour here on CNN.

Let's bring up the Dow for our viewers just to keep an eye on that, as I said at the beginning of this hour, that market down as many as 1,000

points on the open. But do consider China off some 8.5 percent at its close. So, really, a bit of catch up going on there on a Monday morning.

That Dow now down 441 -- I was going to say just 441, still a big drop on the U.S. market today, but off some two-and-two-thirds of one percent. It

was a lot messier than that earlier on in the trading session.

And stay with us for continuing coverage of what investors are calling Black Monday. More after this short break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. This is CNN Connect the World with me Becky Anderson. 15 minutes past 7:00 here in the UAE. Our top story this hour,

a global market meltdown. Billions had been wiped off the value of global shares, oil at a six-year low.

This is the Dow Jones right now. It plunged 1,000 points within minutes of opening today. Clearly doing better than it was off just more

than -- sorry 400 points there, some two-and-two-thirds of one percent.

I'm -- want to say that it's a better day than we might have expected on the Dow, but watch this space. We'll keep you bang up to date in

exactly what's going on.

Well, they fled one hellish situation only to walk right into another. Thousands of people trying to make their way across Europe to seek asylum

and now flooding into Serbia on foot. They are coming from Macedonia after crossing its border with Greece. The very latest flash point in this

crisis. It comes as German chancellor Angela Merkel and French President Francois Hollande meeting to discuss what's being called Europe's worst

refugee crisis since World War II, some calling it the worst crisis in its entirety since the cold war for Europe.

Arwa Damon joining us now live in Macedonia. You're just across the Greek border. And you've spent some time there now. And at this point

yesterday, Arwa, reporting the good news that Macedonia had actually opened its border and allowed some of these refugees to push towards their

destination effectively, which is northern Europe.

What are people telling you there?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Becky, everyone, especially the Syrians have absolutely tragic stories of what they've had

to endure back in their homeland and then how arduous the journey just to get here was.

On the other side of this wire fence, that is Greece. And this is what it looks like today, fairly well organized, relatively speaking.

You've had groups of people continuously arriving, being lined up, and they're fully being let across to then catch the bus on the Macedonian side

of the border. But even just getting here is just absolutely exhausting. Earlier, we saw a woman who was three months pregnant collapsing from the

heat. She had to be carried across. Many of these people have felt as if this was the only option that they had to ensure a future for their

children.

You can see the kids here making this journey mostly on foot. It's hard to believe that these little children have already probably spent days

walking and they have days, if not weeks, of walking ahead of them until they do reach their final destinations.

And as you were saying there, this is a crisis the likes of which Europe has not really seen in its recent history. And as one aid worker we

were talking to, Becky, said what people need to think about -- because there has been a lot backlash against the refugee and migrant populations,

they've been coming through some the local populations, feeling overwhelmed by the influx, some countries not necessarily welcoming them, but this one

aid worker was making the point that, you know, when it comes to talking about how Europe needs to start handling this, an individual needs to

recognize the fact that this could be any of us.

We take a lot of what is around us as being guaranteed, the fact that our society seems like it's not going to crumble, that war might not

necessarily come to our doorstep or other circumstances that could put us in these kind of positions, well that's not necessarily the case. So the

starting point of any kind of conversation needs to be was a level of compassion, humanity and the recognition that we could all end up in this

situation and that is what we need to really take into consideration. Because all these countries do have to come together at this stage for some

sort of long-term solution, the crises that drove these very different populations out are not going to be ending, demographics are changing that

is the sad reality of the world we live in. And we cannot abandon these people.

[11:20:03] ANDERSON: Arwa Damon on the story for you. Arwa, thank you.

Well, the streets of Beirut are much quieter today after protesters called off another planned demonstration, but their campaign against the

government is far from over. Organizers say they want to reevaluate their approach after more than 400 people were injured in clashes over the

weekend. The protests began over the government's failure to collect rotting garbage in the streets, but quickly turned into widespread outrage

against the government in general.

Well, let's get the very latest now from Nick Paton Walsh who is live in Beirut. Any reaction to those images we saw last night, Nick, from

authorities at this point? Are they going to do anything about this?

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: The first thing we've seen the most obvious symbolic reaction, Becky, is a large collection

of what you know as t-walls. Concrete slabs have been erected right down where there were protesters yesterday forming an enormous concrete wall

between the prime minister's residence and the rest of those people out in Beirut, a symbolic gesture, certainly, and the police will say it's for

their own security, but it does certainly isolate them, cut them off from those people down the streets below.

Secondly, we've heard from the protesters today, and they are calling for people to come on to the streets again nationwide, or whatever city

they're in on Saturday at 6:00 in the afternoon there. They're calling for investigations into what happened on Saturday and Sunday. And they're

holding key ministers responsible for that.

The government, themselves have been again referring to the role of infiltrators of a third party to instigate the violence we saw. And, you

know, while the density of those individuals will be debated a lot, and that's happening already now in Lebanon, it was clear there was a certain

minority that were much more keen on confronting the police than peaceful majority of the crowd and that allowed that violence to escalate here.

But so far today, the presence of the army that began about midnight last night has calmed things on the street. We're hearing from the

protesters at their conference that they are hoping for some kind of silent candlelit walk from near the justice palace where many of those detained

last night are being held. But that is a relatively small operation we understand at the moment, the focus being on Saturday, an ability for them

to organize themselves better ahead of that broader protest.

All eye really, though, on the government and what level of reform it can put in. The environment ministers announced tenders to deal with the

waste crisis, companies that will be involved in cleaning it up. That hasn't pleased the protesters at this stage as people looking to see quite

how fast the government can implement reforms. They can put up a wall very quickly within 16 hours of the army coming onto the streets, but we haven't

seen that level of swift response to the reforms requested by the protesters -- Becky.

ANDERSON: Nick Paton Walsh in Beirut for you this hour.

Live from Abu Dhabi, this is Connect the World with me Becky Anderson. 22 minutes past 7:00 here in the UAE.

ISIS destroys another part of Syria's historical legacy. I'm going to take an in depth look at the latest casualty and what it means.

First up, though, transformations is taking us to Japan where one town is turning to cycling to drive tourists to the area. That's next.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Sweeping hills, traditional temples and a magnificent view of the sea, the town of Onomichi

in Hiroshima Prefecture serves as a gateway to one of Japan's best cycling trails.

It sits at the starting point of the Shimanami Kaido, a 70 kilometer cycling route, linking Japan's main island of Honshu with seven islands.

And in an effort to attract more people to a town showing signs of slowing, it has turned a former maritime warehouse into a cyclist's haven:

Onomichi Utu (ph).

KOJI ISHI, DIRECTOR (through translator): We created this with a concept of building a town within this facility.

COREN: The project is spearheaded by a local company founded by hometown friends looking to generate jobs and create business through

tourism.

ISHI(through translator): We want to revitalize the local (inaudible). Unless we do something, in five or 10 years, population will

decrease and young people will leave the countryside.

COREN: Although every design and feature of Onomichi Utu (ph) circle around the theme cycle, there was a bigger goal in mind.

UNIDENTIFIED MALE (through translator): Instead of Utu (ph) getting all the attention, we had the vision of using it to raise the value of the

entire town. Our team tried to look from the perspective of discovering Onomichi.

UNIDENTIFIED FEMALE (through translator): The words we repeatedly used was sophistication within simplicity.

COREN: Their concept: breathing new life into the structure while trying to preserve its vintage character.

UNIDENTIFIED MALE (through translator): There are people who enjoy cycling as a sport and those who enjoy Japanese culture. These are our two

target customers.

COREN: Since its launch, Onomichi Utu (ph) has boosted the town status as a travel destination in Japan with the opening of hotel cycle,

travelers have the option to stay overnight.

UNIDENTIFIED MALE (through translator): Cyclists can check in without having to get off their bikes.

COREN: T hey can ride right up to their rooms fitted with a bike rack. Everything in this space is bike friendly: grab a cup of coffee at the

cycle through counter, have a glass of wine while you pedal.

UNIDENTIFIED MALE (through translator): This area is getting attention from cyclists, but other tourists will be fully satisfied after

visiting this space.

COREN: the locals of Onomichi have also gotten a lift, regional produce and products promoted in Onomichi Utu (ph), they have also hired

within the local job market.

UNIDENTIFIED MALE: In order to keep contributing to the community, I hope Utu (ph) continues to deliver new things not just temporarily, but for

five, 10, even 50 years.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

[11:30:23] ANDERSON: At half-past seven in the UAE, this is Connect the World with me Becky Anderson. The top stories for you as you would

expect at this hour. Stock markets around the world have been falling sharply amid fears over the health of China's economy. Markets across Asia

suffered major losses and the U.S. hasn't been spared falling more than 1,000 points just after the opening two hours ago.

It's clawed back some of those losses in mid-morning trade. We will keep you updated on what is a developing story for you.

Thousands of migrants have crossed the border from Macedonia into Serbia as they try to make the journey across Europe. Police in Macedonia

reopened their border with Greece over the weekend after spending days trying to stop migrants from entering.

Four men who may have prevented a massacre on a high speed train have been awarded the Legion of Honor in France. Americans Anthony Sadler,

Spencer Stone and Alex Skarlatos took down the gunman with help from Chris Norman of the UK and a fifth man who has not been identified.

French President Francois Hollande said by their courage they saved lives.

Well, world powers' agreement with Iran over its disputed nuclear program picked up support in the U.S. today. Democratic Senator Debbie

Stabenow says she will vote in favor of the agreement. Her pledge comes after two other high profile senators and members of U.S. President Obama's

own party have been critical of the deal.

The U.S. congress has until September 17 to vote on the accord.

Well, let's refocus on our top story for you. Global stock markets have been all over the shop over persistent fears about the health of

China's economy. The benchmark index in that country dropped a staggering 8.5 percent on Monday wiping out all its gains for the year.

Stocks in Europe taking a beating as well. Markets in that part of the world have just closed. And here are how the major indexes ended the

day. You can see the FTSE off there 4.5 percent. The DAX in Germany down more than 5, France off nearly 6, and the Swiss market down over 5 percent.

The freefall we saw after the opening bell on Wall Street, well it left investors dizzy. The Dow fell 1,000 points. It has, though, since

recovered somewhat as you can see down just less than 3 percent.

Let's get more on what has been a huge selloff across the world. CNN's Cristina Alesci joining me now from New York.

And it has been a day of red across the board, a day of -- when I say a day of red, I'm talking 24 hours.

The U.S. stock market, though, clawing back at this point. Why?

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: That's right. Well, as you mentioned when we opened it was really an environment of fear and panic.

Investors here in the U.S. reacting to what happened in Asia overnight in Europe.

And then we saw things kind of calm down a bit, and that's because if you look at the fundamentals, which by the way the market, you know, it

doesn't necessarily react to the fundamental. But if you look at the fundamentals of the U.S. economy for a second, you look to see, you know,

we've got pretty strong jobs numbers. We've got pretty strong housing numbers. So, the U.S. as it has been really all year long it has been a

stalwart against what's happening in the emerging markets.

Now the real question for U.S. investors is how the global economic slowdown will impact us here. And what you're seeing today in the market

is people trying to figure that out over the long-term.

But one thing is for sure when you talk to traders here on the floor, there is a new dynamic. Remember, U.S. stocks were pretty much immune to

what was going on in the rest of the world until this point. We've entered into a new world. And we're going to have to see how it plays out from

here.

But remember, we've pulled back a bit, which does seem to indicate a sense of rationality a bit.

ANDERSON: Thank you.

To a story now that we've been monitoring closely here on Connect the World, more history being destroyed in Syria. This was the ancient

Baalshamin temple in Palmyra. It dates back to the 1st Century, long before Islam.

But ISIS filled it with explosives and blew it up.

Officials say it's the first time the group has targeted an ancient structure of this size in Palmyra.

Well, the big question is why. Why is ISIS destroying important historical sites all across the region? CNN's Ben Wedeman explains.

(BEGIN VIDEOTAPE)

[08:35:00] BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: From the Mosul Museum to the ancient Assyrian site of Nimrud, nothing is off limits.

ISIS militants have destroyed unique statues and artifacts documenting the very history of human civilization. Their value beyond estimate.

ISIS says God ordered them destroyed because people in the past worshipped these objects instead of God, including the famous winged bulls

of Nineveh, dating back to 900 BC.

It`s about eradicating a country`s, indeed, an entire region`s, cultural heritage, its past, and perhaps ruining whatever hope people still

have in the future.

(END VIDEOTAPE)

ANDERSON: Well, Ben Wedeman joining me now from Rome.

And Ben, many people looking at what ISIS is doing are quite frankly shocked, as I'm sure you and I are as well. But in reality destroying

history isn't anything new, is it? The Romans did it when they sacked Carthage. And more recently, the bombing of Mosar Bridge (ph) in Bosnia

was one that caught the world's attention, or in 2001 when the Taliban destroyed 1,500 year old statues of the Buddhas in Afghanistan.

Some might argue that there is some historical revisionism going on here. Do you buy that? Or do you see this as unprecedented, this

destruction by the Islamic State. And if so, why?

WEDEMAN: It's not necessarily unprecedented, Becky. As you mentioned, some very clear examples like the Bamiyan Buddhas in Afghanistan

in 2001.

So, really, it's not unprecedented. For instance, the Wahhabi movement in Saudi Arabia that revisionist Islamic movement that still is

the official ideology of Saudi Arabia, they engaged very much in this sort of destruction in the early part of the last century.

But I think what's important to keep in mind is they are doing it for shock value. ISIS, that is one of their main tactics, not just the

destruction of ancient heritage as we've seen in Syria and Iraq, but also the executions that they revel in.

And in fact, just a few weeks ago they executed in the amphitheater of Palmyra, 25 Syrian soldiers on camera, executed by basically it appears

from the video by teenagers.

So, this is really part of their shock value to push their brand, so to speak, and attract those who have a similar ideology -- Becky.

ANDERSON: Ben, I want to remind our viewers of a story that you reported on almost 10 years ago. The Grand Mufti of Egypt at the time

Sheikh ali Gomaa declared that under Islamic law statues were haram and called for them to be banned.

So, you pointed out that there is precedent here, but it's important to ask, is there any religious justification to what ISIS is doing?

WEDEMAN: Well, certainly Ali Gemahdi (ph) chief religious official in Egypt at the time did point out that at the time of Muhammad, the prophet,

that indeed he did order that idols be destroyed. But many Egyptians at the time argued that, OK, that was the case back at the beginning and

during the 600s, at the beginning of Islam, but the situation has changed, that there are more than a billion Muslims in the world and there's no need

at this point to go around destroying idols.

But, we've seen this is a recurrent theme among hard-line clerics. I remember just a few years ago doing a story about clerics in Egypt

following the revolution calling for the pyramids to be covered in wax, basically to obscure them from public view.

There were others in Medieval Egypt who called for the destruction of the Sphinx, one of those men who tried to destroy it shortly afterwards

there was a flood in the area of the Sphinx and the villagers went out and killed him, because they were afraid that he had aroused an ancient curse.

So, yes, on the one hand there is a line within Islam that calls for the destruction of such idols, but there is a counter movement that

basically rejects this philosophy -- Becky.

ANDERSON: And is there anything so far as Islam is concerned that might justify the looting of these artifacts, not necessarily the

destruction of them, but the looting of them for financial gain, for revenue generation? I've heard that argument bandied in this region. Can

you can stand argument up, because they certainly make a lot of money out of the looting of artifacts don't they, the group that calls itself the

Islamic State.

WEDEMAN: Certainly, they've turned a blind eye to it. And we understand from Moon Abdel Karim (ph), who is the head of antiquities in

Syria that that's one of his main concerns at the moment in addition to the destruction of the antiquities in Palmyra, is that -- and I've heard this

from other archaeologists in Europe and elsewhere that the real worry is that ISIS is making millions of dollars off of basically giving licenses to

looters, some of them professional teams of looters brought in from Turkey who are basically they buy a license and they pay taxes to loot and sell on

the black market for antiquities.

And as far as any sort of religious justification goes, certainly ISIS will say, well, this stuff is Haram anyway and therefore they might as well

make a buck on the side. And they seem, according to many sources, be making quite a few bucks out of this business -- Becky.

ANDERSON: Ben Wedeman is in Rome for you this evening. Ben, thank you.

You can find more on what is a wide range of artifacts across Syria, including a special photo series on the ruins of Palmyra, that's CNN.com.

CNN.com. If you are a regular viewer you will be well aware of that.

Live from Abu Dhabi, this is Connect the World. I'm Becky Anderson for you.

Coming up, we look at the growing trend of Chinese couples paying American women to carry and give birth to their babies as surrogates.

That's next.

And another recap of our top story, the staggering losses on Wall Street and other financial markets around the world.

(COMMERCIAL BREAK)

ANDERSON: You're watching CNN. This is Connect the World with me Becky Anderson. Welcome back.

The stock selloff continues. Investors were calling it Black Monday rattling the markets concerns over the health of China's massive economy.

Let's show you how things played out. Asia's markets closed down heavily. Watch this space as those markets will be open just hours from

now. The Shanghai Composite dropped 8.5 percent in its Monday trade wiping out all the gains made this year. And it didn't stop there. Europe's

market is the next to open following the global downward trend, too. And then the Dow off 1,00 points at the open. It has, though, since recovered

somewhat.

Well, for years Americans have looked to China to adopt kids, but now wealthy Chinese couples who want to grow their families are looking to the

United States, specifically many are hiring American women as surrogates.

We start this part of the show with Ivan Watson who went to California to meet one woman who was signed on.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Eight months pregnant.

UNIDENTIFIED HUSBAND OF AUDRA ANDERSON: She likes it when he kicks.

WATSON: Weeks away from giving birth.

ANDERSON: You saw that one.

WATSON: But this is not your typical pregnancy.

ANDERSON: I know it's not my baby.

WATSON: The child growing inside Audra Anderson will be going to parents in China.

(on camera): Who are the future parents of this child you are carrying right now?

ANDERSON: A Chinese gay couple. And they are the most wonderful people that I know. They are loving and caring. And if I didn't think that, I

wouldn't have given them two wonderful children.

WATSON (voice-over): Anderson's surrogate pregnancy is not unusual. A growing number of women in the U.S. are becoming surrogates for wealthy

Chinese couples who can't have children of their own for biological or legal reasons. Agencies like West Coast Surrogacy in Irvine, California,

are seeing a large influx of customers from overseas. In fact, 40 percent of their clients are from China.

AMANDA YOU, CHINESE LIAISON, WEST COAST SURROGACY: They can choose. We have basic and VIP plans.

WATSON: It costs around $150,000 U.S. to have a child this way.

Hi, this is Amy.

WATSON: The company's founder says that Chinese clients first started knocking on her door around four years ago.

AMY KAPLAN, FOUNDER & DIRECTOR, WEST COAST SURROGACY: They feel that it's safe here. The laws are completely supportive of their having children

here.

WATSON: Surrogacy is banned in China. Parents can still face fines for having a second child, and Beijing does not recognize gay marriage, all

reasons that attract would-be parents to surrogacy in the U.S.

And there is an added bonus.

KAPLAN: Coming to the U.S., for one, their child will be a U.S. citizen. I'm sure that has some draw to it.

(MUSIC)

WATSON: There are other American companies trying to get in on this growing surrogacy industry. Unlike international adoption, there are very

few rules governing international surrogacy. Some industry insiders are calling for more regulations.

KAPLAN: We have seen agencies who are unethical and have been caught doing unethical behavior. And there is always that fear that they are not

following the standards and the guidelines.

WATSON: Here in a small desert town in southern California, Audra Anderson says she is already considering carrying a third surrogate child.

She can earn from $35,000 to $45,000 for each baby.

(on camera): Is that a contributing factor, being paid for this?

ANDERSON: Not really. I know that we used part of our compensation to go visit the other family in China.

WATSON (voice-over): Anderson, her husband and daughter visited China for the first time in 2014 to see her surrogate child's biological family.

The Chinese family has asked to remain anonymous.

ANDERSON: I got to see the family that I made. And, oh, the twinkle in his eye looking at his little girl, there is nothing better than that.

WATSON: Audra Anderson represents a small but significant swing in international family planning. For generations, wealthy Americans adopted

unwanted babies from China. Now a growing number of wealthy Chinese are hiring American women to give birth to their children.

Ivan Watson, CNN, California.

(END VIDEOTAPE)

ANDERSSON: Well, this is clearly a complex and sensitive issue. And it's hard to get a sense of its scale. But we do know that more and more

Chinese couples are turning to surrogates in the United States.

Several factors may be driving that, not least in fertility. According to reports, the Chinese Population Association says that 12.5

percent of Chinese adults are now infertile, a dramatic rise in recent years.

Another factor, children born to surrogate U.S. parents will have citizenship and they can then apply for a green card for their Chinese

parents when they turn 21. Also, the couples there may be looking for circumvent China's restrictive one child policy.

Well, earlier I spoke to the founder of a company who helps Chinese couples arrange for surrogacy abroad. Tony Jiang has also been through the

process himself for his three children.

And I began by asking him why he chose an American surrogate for his kids rather than turning to other more traditional suppliers of surrogate

mothers like India.

(BEGIN VIDEOTAPE)

TONY JIANG, FOUNDER, DIYI CONSULTING: That's a good question, because I felt in China, you know, before I go to U.S. for service I failed twice

in China already. It's kind of in the market and (inaudible) it's kind of an illegal business.

I tried to explore the worldwide servicing market before I made the decision I go to the U.S.

As the company (inaudible) Ukraine, India, Thailand, U.S. (inaudible) is way better, because first of all at the technology level, second the

legal environment, secondly I don't think foreigners doing service in the U.S. will be discriminated at all, because your parental rights were also

prejudged before the baby was born, so it's very easy and the way of working the delivery plan and the way for you to bring back your babies is

also very easy compared with those solutions from the other countries.

ANDERSON: Does the citizenship issue also help to encourage Chinese families to seek a U.S. mother?

JIANG: I don't think citizenship of U.S. will be very attractive this moment, because you know in the U.S. is also a country with such levy on

tax so a lot of my customers actually that they have Canadian passports or Australian passports already, so (inaudible) that baby as having U.S.

citizens. But you -- Canada or Australia, you cannot do service legally. So that's why they go to U.S. for service, not for citizenship.

ANDERSON: One of the ethical arguments against surrogacy, Tony, is that it is for the wealthy only. And when one considers that we are

talking about 130,000 dollars, do you understand people's concerns?

JIANG: Well, definitely. A lot of people cannot afford this, first of all. Secondly, either you spend that much money, it's then necessary

result in the outcome, a newborn baby for you. Because on average my -- the average age of my customer, this woman is already over 40 years old.

Fortunately, they are wealthy, they can't afford this. But unfortunately the (inaudible) is so poor that not everyone resulting a very happy ending.

(END VIDEOTAPE)

ANDERSON: Well, a fascinating phenomenon. What do you think of the story? Let us know. You can follow what the team is working on throughout

the day and send us your reaction to our stories by going to the Facebook page, Facebook.com/CNNConnect. You can always get in touch with me, you'll

know this, if you are a regular viewer @ BeckyCNN. That is @BeckyCNN.

Live from Abu Dhabi, this is Connect the World. Coming up, from Shanghai to Switzerland, stock traders have been watching the major indexes

fall sharply all day. We'll recapture how bad it seems after this.

Plus, we'll look at how this former Bay Watch actress traded in her swimsuit to become a member of the British aristocracy. Up ahead.

(COMMERCIAL BREAK)

[11:55:45] ANDERSON: All right, you're back with us here in Abu Dhabi. It is Connect the World with me Becky Anderson at five to 8:00.

Just before we go, I want to recap the big story that we've been following for you. Steep losses on the global financial markets. The Dow

Jones index on Wall Street fell a staggering 1,000 points at its open. It's recovering somewhat in its mid-morning session, but is still down

significantly, but nothing like it was, off some 224 points now. There's some money to be made on that.

Traders in Europe also witnessed a major selloff and those were the markets at the close of play there. Paris, the biggest loser in percentage

terms, as you can see, that Switzerland off three-and-a-third percent as well-crafted

And here's a look at the losses in Asia-Pacific. Well, that 8.5 percent drop in Shanghai was enough to wipe out all of its gains for the

year.

Well, just before we go, tonight's Parting Shots for you.

And if you are not born into nobility, there is another way to join the ranks: get married. Well, former Bay Watch star Allison Joy Langer did

just that. And according to British newspaper reports, she is now the Countess of Devon after her husband Lord Courtney inherited his title.

She swapped sand castles on California's beaches for this castle in the English countryside.

The Hollywood Icon Grace Kelly, you'll remember did one better, becoming a princess in what was dubbed a storybook wedding at the time.

She married Prince Rainier of Monaco in 1956.

Kelly's daughter, Princess Stephanie didn't quite follow in her footsteps, she married Portuguese acrobat Adens Peres (ph). They're not

divorced.

And finally, my team we're very happy to be reminded of this one, former CNN plus journalist Letizia Ortiz Rocasolano you see here anchoring

a show for the network is now the queen of Spain. She married the then Crown Prince Felipe back in 2004.

I'm Becky Anderson. That was connect the world.

END