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Stocks Nosedive in China, Asian Region; Saudi Arabia Cuts Ties with Iran After Embassy Attack; Closer Look at Nimr al Nimr; At Least 5 Killed in Northeast India Earthquake; Saudi Arabia Severs Ties with Iran; Danger Looms in Liberated Ramadi; Manhunt After Deadly Shooting in Tel Aviv; Armed Protesters Take over Federal Wildlife Refuge Building in Oregon. Aired 2-3a ET

Aired January 04, 2016 - 02:00   ET

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

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(HEADLINES)

[02:00:43] ROSEMARY CHURCH, CNN ANCHOR: Hello, and welcome to our viewers here in the United States and all around the world. I'm Rosemary Church.

ERROL BARNETT, CNN ANCHOR: Good to be back by your side, Rosemary, as we kick off the New Year.

Thanks for joining our two-hour block. I'm Errol Barnett. This is CNN NEWSROOM.

CHURCH: And stocks in the Asia-Pacific region have had a brutal start to the year. In particular the markets in China plummeted on the first trading day of 2016. Look at those numbers.

BARNETT: Live look at the region right now. Trading on China's major exchanges has been halted for the day. A circuit breaker, you can describe it, kicked in when stocks tumbled 7 percent. Weak numbers from China's manufacturing sector and the uncertainty in the Middle East are just some of the reasons playing into this.

CHURCH: All right. We have Paula Hancocks with more on how this is playing out across Asia.

But first, let's go to Matt Rivers. He joins us live from Beijing.

Matt, trading has been suspended in China after the market fell nearly 7 percent. What is going on here? What is driving this sell-off exactly?

MATT RIVERS, CNN CORRESPONDENT: Well, trading was suspended around 1:30 local time here after, as you mentioned, trading or after the stock market dropped roughly 7 percent. The reason why they are suspended is these so-called circuit breakers. They were put in place to try and curb some of the volatility we found in Chinese stock markets last year. The rules surrounding them would be that if the stock market falls 5 percent, trading is halted for 15 minutes. If it falls by 7 percent, then trading is halted for the rest of the day.

As for the reason behind today's sell-offs, we spoke with several analysts after this happened and the general feeling behind all of this is that it does have to do with this manufacturing index. This is a survey that is sent out monthly to different purchasing managers in the manufacturing sector across the country asking them in a more informal way how they think their companies are doing, and then depending on their answers, that information is then aggregated and that gives us this survey that came out. And so because this would be the seventh of the last eight months that manufacturing would appear to have been dropping here in China, so that, according to analysts that we spoke to, has spooked investors on this first day of the New Year.

CHURCH: And, Matt, you explained how these new market-suspension rules work. But tell us why the decision was made to put them in place for the start of this New Year.

RIVERS: The circuit breakers are in place across the world, so this is not unique to China. These circuit breakers were put in place at the end of last year because of the wild volatility we saw in Chinese markets in summer months of 2015. We saw incredible changes on a day- to-day basis and that is not good for any stock market or investors trying to make money in those markets. So these circuit breakers were installed by the Chinese government as a way to try and curb that volatility, to give investors a time when the kind of drops happen, that we saw today, to give investors time to regroup, calm down and hopefully ease some of the panic that led to the sell-offs in the first place.

CHURCH: Many thanks to Matt, joining us live from Beijing.

BARNETT: Now we want to cross over to our Paula Hancocks. She is tracking this all from Seoul, South Korea.

And, Paula, even though the numbers out of China are the lowest, coming down almost 7 percent, it's not as bad elsewhere in the region, but there is a downward trend that we can see right now. Talk us to just about what the picture looks like for the region.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Errol, it is not a particularly good start for the year, that's for sure. It's a very bad start for the year for Japan's Nikkei. As you saw, down about 3 percent, and in Hong Kong, down about 2.5 percent. The Sydney, as you say, not the severe fall we see in China, but they have been affected by this. Bear in mind, all of these countries would do trade with China, so further proof of China's slowing economy is not beneficial to any of these countries. So obviously that is spooking investors.

Not just China, though. There are other things taken into account here. Tensions in the Middle East, with diplomatic ties severed between Saudi Arabia and Iran. That is another issue that is going to play heavily on investors minds. But consider the oil price. This is one thing that is going up today. We've seen oil stocks up about 2 percent at one point after having a very bad year in 2015. Brent was done about 35 percent for the year. But we are seeing an uptick again because of the tensions in the Middle East. Saudi Arabia and Iran are both major oil producers and the two having a dispute is pushing those prices higher. But of course, that global oversupply of oil that concerned investors last year is not going away. So this could well be short-lived -- Errol?

[02:06:05] BARNETT: All right, Paula Hancocks in Seoul, South Korea, for us. Our Matt Rivers in Beijing on the downward trend and trading suspended in China after that 7 percent drop. Thanks to you both.

CHURCH: To another big story we're following. An already troubled region facing growing hostility between two fierce rivals. Saudi Arabia has cut diplomatic ties with Iran after demonstrators stormed the Saudi embassy in Teheran over the weekend. They ransacked offices and threw Molotov cocktails that started a fire.

BARNETT: They were protesting Saudi Arabia's execution of a dissident Shiite cleric. You see him here, Nimr Al Nimr. A Saudi court had convicted him of inciting sectarian strife, sedition and breaking allegiance with the Saudi ruler. The Saudi foreign minister ordered Iranian diplomats out of the country within 48 hours.

(BEGIN VIDEO CLIP)

ADEL AL JUBEIR, SAUDI FOREIGN MINISTER: We are determined not to allow Iran to undermine our security. We are determined not to let Iran mobilize or create or establish terrorist cells in our country or in the countries of our allies.

(END VIDEO CLIP)

BARNETT: CNN Producer Shirzad Bozorgmehr joins us on the phone from Teheran.

And, Shirzad, many analysts are looking at this and saying that relationship between these two nations has been cold at best. But it really hasn't been this bad in decades. Tell us about reaction to all of this, both political and social, there in Iran.

SHIRZAD BOZORGMEHR, CNN PRODUCER (voice-over): The official reaction just came from the deputy foreign minister who said that Saudi Arabia is trying to externalize its internal problems with dissension within the country and the arguments between the families themselves. And this is the general view in Iran and also the domestic policy as well as foreign policy. Obviously, the foreign policy at the moment but because of the upcoming election if Teheran, parliamentary elections pretty soon, this is fast becoming a major issue between hardliners taking against Saudi Arabia and reminding people in Iran who are trying to calm things down and say that things should go through legal channels and harshness should stop. So it is keeping all of the politicians very busy and at the same time through organization answers clerics and certain other organizations are setting up the memorials ceremonies for a member executed in Saudi Arabia. And so both the people of Iran are fully aware of the intensity of increasing danger of conflict between the two countries. And calmer heads are trying to behave in a peaceful manner rather than conflict. BARNETT: And just based on your expertise, your long experience there

in the country, which side is likely to win out in response to this? Hardliners or those reformers who want to see a more judicial resolution to this crisis? Which way is this likely to go?

BOZORGMEHR: There is no way to predict that. But the rhetoric coming from the hardliners is much more -- much stronger than the rhetoric coming from the reformist side. And then as I said, the parliamentary election is a major issue in this. Domestic politics is going to somehow take advantage of this situation for their own benefit, and fill that next parliament with their own candidates. On the whole, I would say that the hardliners are much more vocal but the government is reforming, so ultimately, they supreme leader, Ayatollah Khomeini, will weigh in. He usually does that towards the end. And so the indications so far have been that he is not for impeding the Saudis. He will most likely insist that national interest of Iran should be paramount in any discussion or any agreement that would be forthcoming.

[02:10:52] BARNETT: All right. So there in Teheran, Shirzad Bozorgmehr, talking to us over the phone as Saudi Arabia cuts ties with Iran after that embassy attacked. Shirzad, thank you for that.

Rosemary, as he says there, is not a uniform response. You have hardliners, much more vocal. We saw some of the images there, burning flags and the like. Not as negative as some of the reformers who want to see a more peaceful resolution to this. It's contentious.

CHURCH: We will see where it goes for sure.

But we did want to know how experts think this dispute could unfold across the region.

BARNETT: Yeah. Earlier, Amara Walker and Michael Holmes spoke with Simon Henderson, an analyst with the Washington Institute for Near East Policy.

(BEGIN VIDEOTAPE)

SIMON HENDERSON, WASHINGTON INSTITUTE FOR NEAR EAST POLICY: What I'm looking for in the next 24 to 48 hours is to see whether any of Saudi Arabia's allies in the gulf countries, perhaps even further afield, like Jordan, will follow Saudi Arabia in cutting off diplomatic ties with Teheran. If they do, the crisis worsens. The danger is that this is a crisis which can spiral out of control.

AMARA WALKER, CNN CORRESPONDENT: How do you think that this might affect or impact wars wee are seeing right now in Yemen and Syria as the world has been desperately trying to find a diplomatic solution for these conflicts?

HENDERSON: Well, it is certainly a setback for anything like peace talks in Syria or peace talks in Yemen. There has been some progress in these talks, as was mentioned, the Saudis and Iranians are actually in the same room, certainly on the Syrian talks. The Yemeni talks are more complicated because the Saudis regard the rebels in Yemen as being Iranian-inspired and supported. But with this degree of mistrust and bad blood, there's every danger that even these peace talks will be swept to one side.

(END VIDEOTAPE)

BARNETT: As you can see, already, Sheikh al Nimr, the cleric executed in Saudi Arabia, was deeply respected in Iran and in many other parts of the Shia world.

CHURCH: And he was an outspoken critic of the Saudi government.

CNN's John Jensen takes a closer look at his background.

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JOHN JENSEN, CNN PRODUCER (voice-over): His fiery criticism of the ruling family in Saudi Arabia was extremely rare.

NIMR AL NIMR, SHIITE CLERIC: (SPEAKING FOREIGN LANGUAGE)

JENSEN: It was this type of political descent from Nimr al Nimr that in part led to the Shiite cleric's execution on Saturday. Now his death is sparking outrage across the region.

(SHOUTING)

JENSEN: Al Nimr was a prominent religious leader from Saudi Arabia's oil-rich eastern region, home to the country's minority Shia.

(SHOUTING)

JENSEN: In 2011, protests inspired by the Arab Spring erupted on the streets there. Al Nimr was a vocal leader as thousands of Saudi Shia demanded political reform and greater economic opportunity. He was arrested in 2012, seen here, wounded in the back of a police car.

The cleric's brother, Mohammed, speaking to CNN last year, warned that tension would escalate if his execution order was signed.

MOHAMMED AL NIMR, BROTHER OF NIMR AL NIMR: This decision would have consequences, consequences that could be dangerous on a regional level.

JENSEN (on camera): And we're seeing just that. A tense sectarian divide further inflamed and it could possibly get worse because Nimr al Nimr wasn't the only member of his family on Saudi Arabia's death row. His nephew, Ali, just 17 years old, when he was arrested, is still there, awaiting an execution that could come at any moment.

John Jensen, CNN, Abu Dhabi.

(END VIDEOTAPE)

BARNETT: All right, we have more for you after the break. Rescue efforts are under way in northeastern India after a powerful earthquake struck there early on Monday. We will bring you the latest on the death toll and damages, next.

[02:15:07] CHURCH: And U.S. President Barack Obama is taking on gun control in his final year in office. We will tell you how that's playing into the race for the next president.

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BARNETT: Welcome back. We want to get you new information on another big story we are following. At least five people killed in a powerful 6.7 magnitude earthquake that struck northeastern India. Now this quake took place early Monday near the country's border with Myanmar.

CHURCH: 33 people are injured and Indian officials say several homes and government buildings are damaged and rescue efforts are under way. A second less powerful tremor was recorded five hours later. And aftershocks could cause produce further damage.

Our Meteorologist Pedram Javaheri joins us now.

Let's talk about the aftershocks. But also, five people dead. But unfortunately, that death toll is likely it rise.

[02:19:57] PEDRAM JAVAHERI, AMS METEOROLOGIST: I think so. There is agreement with that. It could be in excess of a hundred people. Maybe even higher amounts. Much of this region, unreinforced brick masonry. They are very vulnerable to quakes and damage. Over the past 100 years, about every five years or so, there is at least a 6.0 or great magnitude. This is not unusual. It happened around 5:00 in the morning. We often say that earthquakes don't kill people. Buildings and objects kill people. 5:00 in the morning, people are usually underneath those structures. That's why this could be really devastating.

We will show what you transpired here. This epicenter, you go in for a closer perspective, very mountainous terrain. But just east we have the state here, 2.5 million people. The particular population in the town itself, 200,000. But keep in mind, the census was last measured in 2001. Significantly higher. You see very densely populated regions. The vast majority of the damage could be over this region and also the fatalities would be large-scale across the region as well.

Show you some of the numbers when it comes to the earthquake. At 55 kilometers, 6.7 magnitude, which is categorized as a strong quake when you look at how it increases from a 5 to 6 and beyond into a 7. But an orange alert is issued for the fatalities. Notice 33 percent. Based on historical data of previous quakes, many of them across the region are saying 100 to potentially 1,000 fatalities. That's where the highest probabilities for fatalities with this quake and damage could be in excess of $100 million. But significant damage likely they say. Disasters potentially widespread. Past events at this level have also required national or regional support. So a serious issue across the region. We know, with 6.7, typically at least one aftershock within the first couple of days of a 5.7. 10 aftershocks at 4.7. Hundreds in the 3s and potentially thousands in the 2s. It will be a very scary for people and that's why people are stepping outside their buildings to feel more comfortable.

CHURCH: And difficult too for rescuers.

JAVAHERI: Yes. Very difficult to reach. Very mountainous. Himalayas are across this area. The reason the Himalayas are the rooftop of our planet is these plates are moving at the rate your fingernails grow every year. They are constantly moving. Constantly seeing quakes.

BARNETT: All right, we'll get an update from you in the hours ahead.

JAVAHERI: Right.

BARNETT: Thanks a lot.

CHURCH: Thank you.

BARNETT: The town of Temixco, Mexico, is mourning the death of its newly elected mayor who was gunned down in the doorway of her own home.

CHURCH: Gunmen killed Gisela Mota just one day after being sworn in. She was shot in front of her family on Saturday. Police killed two of her attackers and arrested three others, including a minor.

(BEGIN VIDEO CLIP)

DEBORAH BONELLO, MEXICAN JOURNALIST: The gang accused of the killing has been involved in quite a territorial war in the neighboring state, which you may or may not know, is the most violent state in the country. So it could be some spill-over violence, something to do with the proximity of the two states. Who knows? But very little has come out in terms of why she was targeted in particular. She wouldn't have been the first mayor to swear to clean up the town from organized crime. And I doubt she will be the last. So killing her is a warning. Would seem like an old tactic in an old war.

(END VIDEO CLIP)

CHURCH: And the governor of the state has ordered a three-day period of mourning to honor her.

BARNETT: U.S. President Barack Obama is setting high hopes for his final year in office. He will begin by addressing an issue that's plagued his presidency, the ongoing issue of gun violence. He is tried to initiate change before but Congress hasn't worked with him on those efforts.

CHURCH: As a result, Mr. Obama is due to announce executive action on gun control in the coming days. The proposals are expected to include expanded background checks on gun sales.

(BEGIN VIDEOTAPE)

CHURCH: CNN political commentator, Peter Beinart, joins me now. He's also contributing editor for "The Atlanta Media."

Peter, thanks for talking with us.

What do you expect to come out of Monday's meeting between the U.S. president and his attorney general when they tackle the issue of tougher gun restrictions?

PETER BEINART, CNN POLITICAL COMMENTATOR: I think President Obama clearly wants to try to do something to move more aggressively on gun control. Ever since the shooting at Sandy Hook, he has made this one of his signature issues, something about which he is deeply passionate. And I think given that he is now entering his final year, he is less concerned about the conservative Republican backlash because he is not on the ballot any more, and he is focused more on his own legacy.

CHURCH: What is he likely to do? We understand he might go as far as executive actions being put in place. That means without congressional approval. How is that likely to be received and how far will he go?

[02:25:08] BEINART: Well, I don't know he what specific measures they will take but the pattern moving towards executive action because they can't get things through Congress has been something you see the administration do on immigration, on climate change. It's become a pattern ever since the midterm elections of 2014, after which it became clear the Republican Congress was not going to approve almost any significant legislative initiative by the Obama administration.

So the real hurdle now really is the courts. What do the courts allow the administration to do this? It is not -- it is kind of ironic but not surprising that our president who came into office concerned about George W. Bush's use of executive authority is using a lot of executive authority himself. That's typical for presidents.

The Republican backlash will be, especially on the campaign trail, but again not a whole lot they can do. Courts will decide whether this is constitutional or not. And the Republicans will be able to repeal it if they win the presidency this coming November. And if they don't, they won't.

CHURCH: That's the interesting point here, isn't it? If you're talking about executive actions here, and Donald Trump has said himself that no matter what President Obama does in terms of gun reform, he will wipe it out. So you're saying that that is perfectly possible. Executive actions even brought into power here in this instance, with President Obama, that the next president, if it is a Republican president, could wipe this out?

BEINART: I think it will be very likely, especially -- if we have a Republican president, it's very likely the Republicans will control probably both houses of Congress as well. There will be an overwhelming sentiment to repeal these efforts. So Barack Obama is doing this in the hopes that he can create some

facts on the ground. And he said publicly that he believes that Hillary Clinton being elected, some Democrat, but likely Hillary Clinton, being elected is key to cementing his legacy on a range of issues, and they will do things that they hope a Democratic president can build on. But if there is not a Democratic president, then a principle part of his legacy will, indeed, be wiped away.

CHURCH: We'll be watching closely.

Peter Beinart, always a pleasure to speak with you. Many thanks.

BEINART: Thank you.

(END VIDEOTAPE)

CHURCH: Join CNN for a special look at guns in America with U.S. President Barack Obama. Anderson Cooper hosts an exclusive live one- hour town hall event.

BARNETT: You can see it Friday at 9:00 a.m. for those of you watching in Hong Kong. That's 1:00 a.m. in London, only here on CNN.

Now the deepening anger across the Middle East. Coming up, a look at the regional implications of the execution of a Shiite cleric.

CHURCH: Plus, traps, bombs and tunnels. We will have an exclusive look at what ISIS left behind in the city of Ramadi.

We're back in a moment.

(COMMERCIAL BREAK)

[02:31:29] CHURCH: And welcome back to our viewers here in the United States and all around the world. I'm Rosemary Church.

BARNETT: And I'm Errol Barnett.

Let's update you on our top stories right now.

(HEADLINES)

CHURCH: Saudi Arabia is severing ties with Iran and ordering Iranian diplomats to leave the country within 48 hours. This comes after Iranian demonstrators stormed the Saudi embassy in Teheran over the weekend. They were protesting Saudi Arabia's execution of a dissident cleric.

Well, mainly Shiite Iran and Saudi Arabia's Sunni monarchy have been rivals for years.

BARNETT: But observers say this escalation is worrisome given the conflicts throughout the region.

Becky Anderson has more on that.

(BEGIN VIDEOTAPE)

(SHOUTING)

BECKY ANDERSON, CNN CORRESPONDENT (voice-over): A measure of the fury that erupted in parts of the Middle East after the execution of Sheikh el Nimr. The Saudi embassy ablaze in Iran. That violent reaction was criticized by the country's president, Hassan Rouhani, who blamed it on extremists. But he also condemning the killing of the Shiite cleric, saying it violated human rights and Islamic values, and labeled it another example of, quote, "sectarian policies" that he says are destabilizing the region, a view echoed by Shiite leaders in Iraq, Lebanon, and other parts of the Middle East.

UNIDENTIFIED MALE: I fear that execution of Sheikh al Nimr would pour gasoline on Syria, in Iraq, in Yemen, in Lebanon, in Bahrain, and in Saudi Arabia itself.

(SHOUTING)

ANDERSON: From Bahrain to Iraq to Lebanon, Shiites protested the killing of one of their most revered holy men. Even Saudi Arabia's own Shiite minority protested, a rare act.

(SHOUTING)

UNIDENTIFIED MALE: The decision to execute Sheikh al Nimr could have major repercussions on political and social stability in the kingdom itself. And it'll polarize relations between the dominant Sunni community and the Shiite community, a community that feels marginalized and it feels that basically it is not fully integrated into Saudi Arabia.

ANDERSON: Sunni-led Gulf States like UAE and Bahrain were quick to come out and support the Saudi monarchy already racked by rumors of a power struggle at the top. The wider region is starting the New Year with a collapsing cease-fire in an already devastated Yemen and the prospect after long and bitter road ahead to any perspective peace in Syria.

(GUNFIRE)

[02:35:14] ANDERSON (on camera): An escalation in Saudi/Iranian tensions has the potential to impact so many key issues in this region. So the execution that ended the life of one man could affect the lives of many others in the weeks to come.

Becky Anderson, CNN, Abu Dhabi.

(END VIDEOTAPE)

CHURCH: ISIS released a new propaganda video threatening the United Kingdom. It shows a masked English-speaking militant along with five men in orange jumpsuits. ISIS claims they are U.K. spies.

BARNETT: Now at one point, the militant points a gun at the camera and threatens Prime Minister David Cameron and the U.K. The accused men are later shown being shot to death.

In Iraq, there is much more work to do after the brutal and prolonged fight for Ramadi.

CHURCH: Iraqi groups are painstakingly combing through the newly liberated city, carefully avoiding booby traps and bombs ISIS left behind.

Nima Elbagir is there and filed this exclusive report.

(BEGIN VIDEOTAPE)

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Ramadi, after months of ISIS rule, this is what remains. ISIS's occupation of the city leaving its mark both above and below ground.

(on camera): These are the houses that the militants were hiding inside of. You can see what they were doing is they were digging up tunnels so that they were able to move from house to house without being seen by the coalition planes. And so that this wasn't spotted from the air, they were hiding the dirt that they were digging up and keeping it inside the houses themselves.

You come through here, we can show you one of the tunnels leading through. Some of these tunnels, we're told, went as far as a kilometer.

We're going to go have a look inside. They're not actually that wide, but it does give you a sense of them moving in the dark, under the ground, out of sight.

(voice-over): The city fell to ISIS in May last year. Since then, Iraqi forces have been battling to reclaim their territorial integrity and their ravaged morale.

The head of Iraq's counterterror force told us the liberation of Ramadi should be celebrated around the world.

UNIDENTIFIED HEAD OF IRAQ COUNTERTERROR FORCE (through translation): Defeating ISIS in this victory has impacted on ISIS plans and its very existence, including weakness and desperation. The road to Mosel is now open and clear.

ELBAGIR: Blindfolded and bound, captured ISIS fighters face the wall. They were, we're told, attempting to blend in to what remains of the local population. A reminder ISIS fighters could be hiding in plain sight.

Even as the road to Mosel is in the Iraqi armed force's sight, a week on from the announcement of the liberation here in Ramadi, counterterror forces battle to purge the city of the remaining militants' presence.

(GUNFIRE)

ELBAGIR (on camera): We're hearing some pops of gunfire there. They're a little further across the other side of the river. The fighting is ongoing. The clean up operation is still going on and that's why the helicopter is circling overhead.

(GUNFIRE)

ELBAGIR (voice-over): In spite of the threat of IEDs and roadside bombs, the troops continue their painstaking push. Under every inch of reclaimed territory, a possible death. Everyone here knows so much is at stake in this claimed liberation and not just for Iraq.

UNIDENTIFIED HEAD OF IRAQI COUNTERTERRORISM FORCE (through translation): This victory is a victory for humanity because ISIS is against Iraq and against all of humanity.

ELBAGIR: It is also, finally, some palpable momentum in the battle.

Nima Elbagir, CNN, Ramadi.

(END VIDEOTAPE)

CHURCH: On Tuesday, we'll have more on Nima's exclusive reporting from Ramadi. We'll hear from civilians who were caught up in the fighting, used as human shields and facing even more danger.

(BEGIN VIDEO CLIP)

ELBAGIR: This is what remains of Ramadi and people's lives and people's homes, absolute desolation. And even as the operation to push back those remaining ISIS militants within this city continues, they're also attempting to rescue the hundreds of families trapped, the other side of the river here in Ramadi, trapped within areas where ISIS militants still exert control.

(END VIDEO CLIP)

BARNETT: You saw a mother with her child there. For many of the families, it is a struggle for simple survival. And at present, there is no end in sight. We will bring you more on that tomorrow here on CNN.

[02:40:10] CHURCH: An exhaustive manhunt is still going on for this man -- if we bring out the picture -- after a deadly shooting rampage in Tel Aviv Friday. What the suspect's family is urging him to do, next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

BARNETT: All right, we located that picture. Israeli police are looking for this man who they say is armed and dangerous after a deadly shooting in Tel Aviv. CHURCH: He is accused of using an automatic weapon to kill two people

and wound eight others outside a bar on Friday. Now the suspect's family says he has a mental disorder and they want him to turn himself in.

Let's get the very latest on this and bring in Ian Lee in Jerusalem.

And, Ian, you had an opportunity to speak with the suspect's uncle. What all did he tell you about this man?

IAN LEE, CNN CORRESPONDENT: Rosemary, they told me about a man who is very disturbed. They say that he has been suffering from depression back in 2007 when he was arrested and served five years for trying to steal a gun from a soldier. He was then diagnosed with a psychological disorder. He was put on medication. The family is concerned that he is not on his medication and that he -- they are urging him to turn himself in. Their fear right now is that he would be killed either in a police operation or he might kill himself. But the police right now, their main goal, going into day number three of this manhunt, is to find him and neutralize him one way or another. The fear is that he could potentially be planning another attack or carry out another attack. School districts in Tel Aviv right now are reporting that a lot of the -- or we're hearing a lot of the families are keeping their children home from school. They've beefed up security there as well. But really he could be anywhere in Israel and this manhunt is continuing.

CHURCH: This is the big worry, isn't it? So, Ian, where do authorities and indeed this man's family think he might be hiding? Who do they think perhaps is helping him? Or do they really feel he is working alone here?

[02:45:29] LEE: It is quite an odd case, the fact that he can disappear like this for over three days. Israel is a country with heavy security. There are security cameras everywhere. When he fled the scene, they could follow him fairly closely. So it does appear that he may have had some help in this. Police aren't saying either way.

There is also an investigation that another person may have been killed less than a half an hour after this shooting. There was a person killed in the Tel Sheif (ph) area. A taxi driver was found near a hotel. They're investigating if that was related, maybe offers them some clues. They are going door to door, street by street, looking for this person, which makes it seem like he could be anywhere at this time.

CHURCH: All right. Keeping us up-to-date on this manhunt, Ian Lee, joining us live from Jerusalem. Many thanks to you.

BARNETT: A group of armed protesters have taken over a building, a federal wildlife refuge in the U.S. state of Oregon.

CHURCH: They say they are taking a stand against the way the federal government has used the land and abused their rights.

CNN's Polo Sandoval has the story.

(BEGIN VIDEOTAPE)

POLO SANDOVAL, CNN CORRESPONDENT: These armed members consider themselves, quote, "patriots and Constitutionalists," and they're looking out for the rights of land owners as rangers as well. But then you hear from law enforcement even some civilians who disagree, saying this group is simply seizing an opportunity to further what is a misguided cause.

(voice-over): They are armed and staying put. A group of protesters broke into an unoccupied building at an Oregon federal wildlife refuge Saturday. They claim to be taking a stand against the federal government's control and use of the land. The armed occupation broke off from a peaceful rally earlier in the day to support Dwight and Steven Hammond, a father/son ranching duo expected to report to prison Monday.

DWIGHT HAMMOND, SENTENCED TO PRISON: It isn't my decision. It is a sentence.

SANDOVAL: Hammond and his son were convicted of arson, setting at least 130 acres of federal land on fire. The Hammonds maintain it was a controlled blaze that accidentally got out of hand. Prosecutors however argue the flames were meant to cover up poaching.

UNIDENTIFIED MALE: It sort of frightening when there's people making threats and people touting guns.

UNIDENTIFIED FEMALE: People are afraid.

SANDOVAL: Among the armed protesters, the son of Nevada rancher, Cliven Bundy, who was at the center of a similar standoff with the federal government last year over grazing fees.

CLIVEN BUNDY, RANCHER: This is not a time to stand down. It is time to stand up.

SANDOVAL: The younger Bundy called on militia groups to descend on Harney County and demand the government restore, quote, "the people's constitutional rights," part of a vague and vocal anti-government message.

AMMON BUNDY, RANCHER: The people have been abused long enough. Their lands and their resources have been taken to the point where it is putting them, literally, in poverty.

SANDOVAL: The Hammonds however are distancing themselves from this latest faceoff. Their attorney communicating in a short but clear statement to the county sheriff's office says, "Neither Ammon Bundy nor anyone within this group or organization speak for the Hammond family."

The protesters say however their demonstration is peaceful but, if provoked, they will defend themselves. (on camera): Law enforcement watching this evolving situation very

closely. The FBI responsible for investigating it as that refuge facility is, in fact, a federal building.

Polo Sandoval, CNN, New York.

(END VIDEOTAPE)

BARNETT: All right. We'll change themes after the break. I'm not a parent yet. Rosemary, I would say, is a professional parent.

(LAUGHTER)

So we will talk about this, Prince William speaking about fatherhood and how he is now a different man because of it. That is coming up next when CNN NEWSROOM with Errol and Rosy returns.

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(WEATHER REPORT)

(COMMERCIAL BREAK)

[02:53:16] BARNETT: The popular British drama "Downton Abbey" kicked off its final season in the U.S. Sunday night. We have yet to see one episode of this program. But it gives viewers a look at the English aristocracy in the early decades of the 20th century.

CHURCH: The creator sat down with CNN to talk about the show's success and its finale.

(BEGIN VIDEO CLIP)

JULIAN FELLOWES, DOWNTON ABBEY SHOW CREATOR: We were originally planning to end on the fifth series. And then when we started to get near that, it just felt as if we had too much to do. We needed really a whole series about resolution. And so we decided to do six. So it is not as if we're cutting ourselves off short. We thought we would end a year earlier. Because you know, it is good to leave a party when the people are still sorry that you're going and not wait until everyone is incredibly relieved. And we just felt we had sort of completed the journey, really. Of course, people say, are you sad? Of course, I'm a bit sad. It has been an extraordinary adventure in my career. Very unlikely to be topped. And you know, I consider myself lucky to have had one of the world sensation things, you know. But nevertheless, everything must come to an end.

(END VIDEO CLIP)

CHURCH: Yes. It sure did. And the final season of "Downton Abbey" already aired in Britain.

A new documentary by Britain's ITV gives an intimate look at the life of Prince Charles. It's called "When Aunt and Deck Met the Prince, 40 Years of the Prince's Trust." It is about the life and charity he founded. BARNETT: Now the presenters also spoke with other members of the

family, including Prince William, who talked about how becoming a father has changed him.

(BEGIN VIDEO CLIP)

[02:55:09] UNIDENTIFIED MALE: Has fatherhood changed you now that you've got two children?

PRINCE WILLIAM, DUKE OF CAMBRIDGE: I'm a lot more -- I'm a lot more emotional than I used to be.

UNIDENTIFIED MALE: Are you?

PRINCE WILLIAM: Yeah, really. I never used to get wound up or worried about things. But now the smallest little things, you well up a little bit more.

UNIDENTIFIED MALE: Right.

PRINCE WILLIAMS: And you get affected by some things that happen around the world or whatever a lot more I think as a father just because you realize how precious life is --

UNIDENTIFIED MALE: Right, yeah.

PRINCE WILLIAMS: -- and it puts it all in perspective. And not being around it, watch your children grow up and stuff like that.

(END VIDEO CLIP)

BARNETT: You may know the Duke of Cambridge is father to 2-year-old Prince George and 8-month-old Princess Charlotte.

And what do you think about that?

CHURCH: Yeah.

BARNETT: Does being a parent make you that much more emotional?

CHURCH: Actually, I noticed it as soon as I had my first child. I found the news was much more difficult. And I think it is because you're invested in the future.

BARNETT: Right.

CHURCH: And you feel it more. You really do. So he is absolutely right. You do get more emotional.

BARNETT: Pressures of parenthood. He is roughly my age. So I look at Prince William as thinking, oh, my goodness, am I supposed to have kids now and the responsibility? Oh, wait, it's just --

(CROSSTALK)

CHURCH: Feel the pressure. (LAUGHTER)

Thanks for watching CNN NEWSROOM. I'm Rosemary Church.

BARNETT: I'm Errol Barnett.

Live reports from Iraq, South Korea and Jerusalem in our next hour. Stay with us.

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