Return to Transcripts main page

CNN Newsroom

Chinese Markets Tanking for Second Time This Week; Skepticism Over North Korea's Claims on H-Bomb; Major Gas Leak in L.A.; Allegations of Mass Assault in Germany on NYE; El Nino Slams California with Heavy Rain. Aired 12-1a ET

Aired January 07, 2016 - 00:00   ET

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

[00:00:00] ANDERSON COOPER, CNN ANCHOR: (ph) guns in America, our town hall discussion with President Barack Obama. I'll be asking the questions as well as people from all sides on the issue asking the president as well. CNN NEWSROOM is next.

JOHN VAUSE, CNN HOST: This is CNN NEWSROOM live from Los Angeles.

(HEADLINES)

VAUSE: Hello and welcome to our viewers in the United States and all around the world, great to have you with us. I'm John Vause "NEWSROOM L.A." starts right now.

We'll start this hour with the very latest on the Chinese financial markets which have plummeted for the second time this week and circuit breakers put in place had kicked in to stop trading for the day. The Shanghai Composite and the CSI 300 both fell more than 7 percent and the tech heavy Shenzhen market was off more than 8 percent. Let's got to Matt Rivers now, he is live for us this hour in Beijing with more details right now. So Matt, it was about three hours ago, now the trading was stopped. Walk us through how we got to this point.

MATT RIVERS, CNN CORRESPONDENT: This has been a very, very rough week for Chinese stock markets as you mentioned right off the top here John. This is the second time this week that trading has been halted and today trading was halted within half an hour of the markets opening -- a very, very steep decline in the opening minutes of trading. As you mentioned, once those -- once the markets drop by 5 percent, there's a 15-minute delay and a 15-minute halt in trading.

As soon as is that 15-minute window ended and trading resumed, it took just a very short time after that for stocks to go down even lower, hitting that 7 percent threshold, which then automatically halted trading for the rest of the day.

As for how we go to this point, the big culprit today according to most of the analysts that we've spoken to this morning appears to be the Chinese currency. The Chinese Central Bank lowered the midpoint of the Chinese Yuan about 0.5 percent -- that would be the biggest daily drop since August when it was lowered 2 percent. And so, that lowered the Chinese currency's value against the U.S. dollar to roughly 6.565. That would be the weakest that the Chinese currency has been since 2011. And so many of the people we have spoken to say that is really what's caused this big selloff today.

Now, Chinese regulators are trying to do what they can to alleviate investor concerns. They did announce an injection of liquidity into the market that would be roughly just under $11 billion as well as new regulations about major shareholders selling off their stakes in listed companies moving forward, but that would be too little too late for the day for today anyway as trading has already been suspended.

VAUSE: I guess one of the other questions too here, Matt, is the situation in North Korea with its nuclear test. Is that contributing to this market turmoil?

RIVERS: Well, uncertainty is obviously never good for stock markets no matter what's going on in the world, and so certainly investors here in China are paying attention to what's going on in North Korea and what will continue to happen over the next several days, but you could also look into what's going on with the diplomatic tensions between Saudi arabia and Iran.

You could look at the oil prices being the lowest they've been in 12 years and you could even look at what the World Bank has said recently -- it cut global growth forecasts for the third year in a row. So, all of this kind of uncertainty around the world coupled with what we're seeing with the Chinese currency devaluing has proved very rough for Chinese markets.

VAUSE: Matt Rivers in Beijing, thank you. We'll turn now to North Korea's claim of testing a hydrogen bomb, and right now, the focus is on what it may have detonated if it wasn't an h-bomb. The White House says initial analysis has not been consistent with North Korea's claims. Still some experts say it is possible Pyongyang detonated a boosted weapon, which could have had a hydrogen element.

Meanwhile, world leaders continue to condemn North Korea for violating United Nations Security Council resolutions. U.S. lawmakers are discussing broader sanctions on North Korea with a vote possibly going to the house floor as early as next week. U.S. President Barack Obama spoke with a number of Asian leaders on Wednesday including South Korea's president, reaffirming his support to their security.

Paula Hancocks live again in Seoul, South Korea with more on this story. Paula, I guess the doubts are really starting to grow now over North Korea's claim that this was in fact an H-bomb test.

[00:05:00] PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: That's right John, yes. When we spoke to each other yesterday the rumblings were starting, but now, really hard for us to find anybody that believes that this was a hydrogen bomb test. Now, we heard from the intelligence agencies here in South Korea -- they briefed lawmakers who in turn briefed reporters saying that was very difficult to give credibility to the North Korean claim that it was an H-bomb.

Just looking at the numbers, they say, there should be a destructive force of somewhere between 15 megatons if it is an H-bomb. Even if it's militarized or has failed, it would be about 50 to 60 kilotons, but in fact it was 6 kilotons that was measured, the initial reading.

So, they say that, that in itself would suggest that this couldn't possibly be a hydrogen bomb. But, of course, there are other analysts that say there may be an element of a hydrogen element in it. There may be hydrogen gas, there may be a smaller amount of hydrogen isotope which is called tritium which basically allows a bigger destructive force, a greater yield for the explosion, and maybe this is what allows Kim Jong-Un to claim that he has the H-bomb. But we've got to bear in mind, this is really for a domestic audience. Let's recap what happened on Wednesday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Kim Jong-Un signs the order for nuclear test number four -- a hand written note for North Korea's leader saying the country is, "Starting the year with exciting noise of the first hydrogen bomb." If this is true, it would signal a huge jump in the country's nuclear capability -- a hydrogen device far more powerful than previous atomic bombs. But South Korea's Defense Ministry said it would be difficult to believe it was hydrogen, according to Yonhap News Agency.

Officials say it could be days before they know for sure, but some say they may never be 100 percent certain. Condemnation from around the world has been swift. China, one of North Korea's few allies says it opposes the test, saying it did not have prior knowledge of it. South Korea's president Park Geun-Hye calls it a provocation which threatens people's lives.

PARK GEUN-HYE, PRESIDENT SOUTH KOREA (TRANSLATED): It is important to take stern measures with the U.N. Security Council and international community, with the United States and our allies.

UNIDENTIFIED FEMALE: The United States, Japan, the UK and others adding to the condemnation. South Korea's military are on alert. North and South Korea are still technically at war. A peace treaty was never signed after the Korean War. A United Nations Security Council meeting has been called Wednesday. Previous nuclear tests have been met with sanctions.

UNIDENTIFIED MALE: It can apply sanctions. It can condemn verbally. It can point fingers, but as we've seen before, North Korea doesn't really respond to that.

(END VIDEO CLIP)

HANCOCKS: So now, we know the neighboring countries are trying to gather up this potentially radioactive dust and analyze it. No word yet on when they could have results, John?

VAUSE: Paula Hancocks, thank you, live in Seoul this hour. Now, North Korea says its latest nuclear test was a hydrogen bomb and if it's true, that would mean a giant leap forward for the reclusive country's weapons program. CNN's Tom Foreman explains.

TOM FOREMAN, CNN CORRESPONDENT: If North Korea actually gets a hydrogen bomb, it will vault right into the top tier of nuclear weapons because when the United States, Russia, France, China or Great Britain talks about their nuclear arsenal, they're talking about hydrogen bombs -- not merely atomic bombs like we normally talk about them. What's the difference?

Well, an atomic bomb is basically 70-year-old technology in terms of where it started, it's a fission explosion. That means it blows atoms apart releasing a lot of energy. Hydrogen bombs crush atoms together, releasing energy and a lot of heat, too. That's why these are called thermonuclear bombs.

An atom bomb is basically a single explosion. A hydrogen bomb is a complicated two-stage explosion, much more technically involved, and an atom bomb, while physically it has to be bigger usually it produces a smaller blast in nuclear terms, whereas a hydrogen bomb can be smaller with a bigger blast. That matters because it's easier then to get it on to a missile and get it somewhere.

How big are we talking about in terms of the blast? Well, let's bring in a model here of the two blasts of the bombs that were dropped in World War II. If their yield, their explosions were roughly this big, add one more atomic blast here for comparison to show the improvements on atomic bomb.

But those last three there, those are tests of hydrogen bombs and you can see how huge they are by comparison. The reason authorities think North Korea doesn't actually have one of those because the seismic signature of the blast that was recorded was more like this, but you can also understand why there's so much concern that they're trying to get something like that.

[00:10:00]VAUSE: Well, thanks to Tom Foreman for that. Now, Bruce Bennett, (ph) defense analyst at the RAND Corporation is also an expert on (ph) security issues. Thank you for being with us.

BRUCE BENNETT, SENIOR DEFENSE ANALYST RAND CORPORATION: Thank you.

VAUSE: I guess -- so, looking at the available (ph) that we have right now, the seismic event that happened, the 5.1 and whatever else the other (ph) which is out there, what's your assessment? Was this a hydrogen bomb or was it something else?

BENNETT: No, if it was a hydrogen bomb, the whole purpose of going to hydrogen bomb is to get something a 100 to 1,000 times with a bigger bang. They didn't get that. They got something similar to the Hiroshima weapon.

VAUSE: So this is some kind of boosted tritium bomb or something?

BENNETT: But even then it wouldn't be boosted. I mean, you got maybe 10 kilotons this time. If it was boosted, it would be more like 50 or 100 so.

VAUSE: So, not even a boosted weapon, not in any way it was even supersized here.

BENNETT: Yeah, it's probably -- if they did have hydrogen elements in it, they fizzled.

VAUSE: It didn't work.

BENNETT: It didn't work.

VAUSE: Again, listen to the supersizing element here. Is that a big technological leap, if they could do that? Would that be a great leap forward, if you (ph)?

BENNETT: Yeah, it would be a grat leap forward. The question is, are they doing it on their own or getting help from scientists from Russia, from the United States. Both the U.S. and Russia had a serious difficulty going to a hydrogen bomb so, if they do it on their own hard and in particularly for them, they started in 2006 with a very small yield. Ten years later now, they're doing something that's only 70 years old technology for the U.S.

VAUSE: Now, you mentioned, you know, Russia and United States developing H-bomb. The United Kingdom, France, China, the original nuclear powers are able to develop an H-bomb, but others like India and Pakistan, they haven't, but they are building up their nuclear stockpile, especially the Pakistanis (ph) report that came out that said with the next five to ten year, Pakistan may in fact have the third biggest nuclear arsenal in the world and that would seem to go way beyond any issue of deterrence there and nobody seems to be talking about it.

BENNETT: Well, Pakistan may also be working on boosting weapons. The element that creates fusion, the tritium in the form of hydrogen -- that they seem to be trying to develop themselves and to create -- and they've been working on that for almost 20 years.

VAUSE: But do you see you know, what people are saying is a nuclear arms race in the Asia region.

BENNETT: Oh, certainly India and Pakistan is starting in that direction. India and China could become an arms race. Certainly if North Korea goes very far, both South Korea and Japan are going to consider going nuclear.

VAUSE: Doesn't Japan have a virtual nuclear bomb? The plans so that they could put it into practice if they wanted, they could build it.

BENNETT: Very quickly. Now, it might still be a couple of years to get that real weapon that they would -- in fact, they can do it very quickly and they have probably a 1,000 times the amount of plutonium that North Korea has.

VAUSE: So, the test that is being carried out by the North Koreans, apart from the direct threat from the North Koreans. So, for them having nuclear weapons, there's also this real risk, which is playing out about the other nations developing nuclear weapons as a deterrent?

BENNETT: Yeah, other nations doing that and in particular learning that you can disrespect China if you have nuclear weapons.

VAUSE: And you disrespect the United States and the Nuclear Non- proliferation Treaty and the U.N. and whoever you want.

BENNETT: Absolutely. So, countries like the Philippines, like Vietnam, are going to be look at this and say China is trying to put major pressure on us, but if we had these weapons they wouldn't be doing that.

VAUSE: It's a very good point. Now, your assessment, which country with nukes worries in the region worries you more right now? The North Koreans or the Pakistanis?

BENNETT: North Korea. In 1993 when we had the first nuclear crisis, Kim Il-sung, called together his military.

VAUSE: This is the grandfather of Kim Jong-un.

BENNETT: That's right, the grandfather called together his military and asked them so what do we do if we fight the Americans over our nuclear program and we lose? And Kim Jong-un's father said, "If we lose, I will destroy the earth. What good is the earth without North Korea?" So, this is a loose cannon. We're not just talking about deterrence. If they have a problem with the regime, they could do it and one has to wonder, why did they do the test now?

VAUSE: What's your theory?

BENNETT: They were trying to make up with China, I mean, and let Kim Jong-un go to Beijing -- that even going to happen now. The Chinese has got to be furious. So, I suspect they've got some internal problems, at least in Kim Jong-un's head if not in reality.

VAUSE: And we'll have more on that later this hour. It's a good point you raised, but thank you very much for coming in Bruce.

BENNETT: Thank you.

VAUSE: You raised a very good point and we appreciate it.

BENNETT: You bet.

VAUSE: Okay, well, whether it was an H-bomb or small or a less powerful plutonium device, the fallout diplomatically for the North Koreans is likely to be the same. Here's Elise Labott.

(BEGIN VIDEOTAPE)

ELISE LABOTT, CNN GLOBALL AFFAIRS CORRESPONDENT: North Korea's claim it tested a hydrogen bomb brought swift condemnation from around the world.

BAN KI-MOON, UNITED NATIONS SECRETARY GENERAL (TRANSLATED): This act is a profoundly destabilizing for regional security.

SHINZO ABE, JAPANESE PRIME MINISTER (TRANSLAED): North Korea's nuclear test is a serious threat to our nation's security and absolutely cannot be tolerated. [00:15:00]LABOTT: Even China, North Korea's neighbor and closest ally

quickly denounced the test after downplaying the nuclear threat for years, growing concern in Beijing over the program under North Korea's erratic and unpredictable leader. U.S. officials hope North Korea's largest benefactor will finally put the squeeze on Kim Jong-un and wants the U.N. Security Council to impose tough new sanctions.

JOHN KIRBY, U.S. STATE DEPARTMENT SPOKESMAN: What we do want to see is a strong international response to this latest provocation and unanimity in the international community about raising the stakes further on the regime.

LABOTT: But decades of sanctions have failed to curb the nuclear ambitions of three generations of North Korean leaders. President Clinton's 1994 agreed framework backfired and gave the North diplomatic cover to build a nuclear weapon. President Bush came close to a deal where Pyongyang would trade its nukes for aid and a peace treaty, but it didn't happen.

President Obama came to office promising not to overreact to North Korea's nuclear antics, continuing sanctions until Pyongyang agreed to negotiate an end to its program. Instead, the U.S. focused on a nuclear deal with Iran, a more willing partner. In April, Iran agreed to robust curves on its program. Meanwhile, three of North Korea's four nuclear tests have been launched since Obama took office. Critics label Obama's so-called strategic patience a recipe for diplomatic failure

BILL RICHARDSON, FORMER AMBASSADOR TO THE U.N.: Some no diplomatic policy options need to be put on the table. In my view is that, a deal like Iran, similar like we had before in the Bush administration in exchange for food, fuel, lifting of some sanctions, they curb their nuclear weapons.

LABOTT: But U.S. officials say the North Korean regime has shown no willingness it is ready to talk. And so it's unclear what it would take to bring them to the table. For the starters, the North has demanded to be officially recognized as a nuclear state, but the White House and State Department reaffirmed after this latest test they do not and will not accept North Korea as a nuclear power. Elise Labott, CNN, Washington.

(END VIDEOTAPE)

VAUSE: As gun control in the U.S. takes center stage once again, CNN rides along with some New York City police officers who work to get illegal guns off the street, that story is coming up. Also ahead on the day, the U.S. President made an emotional appeal to the country to tell people (ph) in Chicago.

(COMMERCIAL BREAK)

[00:20:00] VAUSE: The heated debate over gun control is being re- ignited this week after U.S. President Barack Obama announced the (ph) of executive actions on Tuesday. A New York City group of police officers are trying to get illegal guns off the streets. Here's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Shots fired near a supermarket in Brooklyn. More sounds of gun fire captured by another security camera on another New York City street. They are the sounds Sergeant Jeff Heilig and Officer Michael Romanello hear too often.

MICHAEL ROMANELLO, NYPD ANTI-CRIME TEAM: Our main goal, every single day, is to make a gun arrest.

SERGEANT JEFF HEILIG, NYPD ANTI-CRIME TEAM: Absolutely, that's our number one priority every day.

CARROLL: Both Heilig and Romanello, a part of an elite group of officers assigned to the New York City Police Department's Anti-Crime team. There are about 50 of them who work throughout the city in plain clothes and patrol in unmarked cars. Their main task, get illegal guns off the streets. Tall order though, right? I mean it's not ...

ROMANELLO: It's not easy, but you know, you have to be persistent and you have to be willing to work hard.

CARROLL: This is the fist time the Anti-Crime team has allowed news cameras along for a ride. We're in the South Bronx, an area police characterized as high crime, one that is also economically depressed.

HEILIG: That economic depression breeds crime. It brings drugs, drug brings guns, guns bring violence.

CARROLL: How does that make your job more challenging?

HEILIG: Every night, looking for a criminal who's carrying a gun, they know the consequences of carrying that firearm. So they'll do whatever is in their power to get away whether it's to flee on foot, to flee in a car, to shoot it out with the police.

ROMANELLO: We do encounter a lot of dangerous situations and at the start of your day, you don't know what you're going to encounter that night.

CARROLL: What are you seeing when you recover these illegal guns on the street.

ROMANELLO: Whatever they can get their hands on. We have recovered from two-shot Derringer to all different types of revolvers, semiautomatic firearms held together by duct tape.

CARROLL: Held together by duct tape?

ROMANELLO: Yes, and shotguns that have been cut down to about a foot -- anything that will fire a bullet. My first gun arrest, the gun looked like it was pulled off the Titanic. It was so old and rusted.

CARROLL: Whatever type of gun is confiscated, it ends up here at the Forensics Lab in Queens. CARROLL: Any idea how many guns sort of come through this, that since

lab on a, what, a daily, weekly basis?

EMMANUEL KATRANAKIS, NYPD FORENSIC INVESTIGATION DIVISION: Thousands come in each year for examination.

CARROLL: According to the NYPD, last year some 9,000 guns ended up in the lab, a little more than 3,200 of those from gun arrests. Hundreds stored in a room aptly called the library. Racks of weapons, all makes and models kept for reference, such as a World War II Japanese pistol.

KATRANAKIS: And you can see it kind of has that antique look to it.

CARROLL: Or the most current popular model on the streets.

KATRANAKIS: It is a high point .9 millimeter that is commonly seen.

CARROLL: This one? Any idea why?

KATRANAKIS: At this time. I couldn't say.

CARROLL: Each gun goes through a multi-step process to determine whether it was used in more than one crime.

KATRANAKIS: This would be step one with the examination.

CARROLL: Inspector Emmanuel Katranakis walked us through it, from the gun's basic examination to the tank room. Why do we call it the tank room?

KATRANAKIS: Because it's a large tank that's filled with water.

CARROLL: Oh, I see that here.

KATRANAKIS: And the purpose of this tank is so that we can discharge a weapon and acquire the bullet.

CARROLL: And where does the bullet end up?

KATRANAKIS: The bullet will travel through the water at a certain distance and eventually drop to the bottom of the tank. Detective Nassier (ph) is firing into the bullet recovery tank.

CARROLL: Once a bullet is recovered, it goes under the microscope, then tested for fingerprints.

UNIDENTIFIED FEMALE: If there were any fingerprints that were found fluoresce under this UV light.

CARROLL: In all, a lengthy process but one that starts here on the streets every night with a special team tasked with getting guns off the streets.

ROMANELLO: So, now with the economy, we want to go out there. We want to do a good job and make gun arrests, but we also want to go home safe and in one piece. It's not easy to balance those two things. CARROLL: Jason Carroll, CNN, New York.

(END VIDEOTAPE)

VAUSE: In Chicago on the same day Mr. Obama made his announcement, 12 people were shot and four of them died. Two people were shot before the President had even started speaking on Tuesday morning. Of the dead, two were teenagers on the city's south side. Authorities say that incident was gang related. Chicago Police say murders have jumped 8 percent in the last four years.

Anderson Cooper will host an exclusive one hour live town hall event with President Obama on Thursday. You can see "GUNS IN AMERICA" 8:00 p.m. in Washington, Friday 9:00 a.m. Hong Kong time and 1:00 a.m. Friday in London, right here, only on CNN. Well, experts are casting doubt on North Korea's claim that it tested a hydrogen bomb, and just ahead, we'll see what Kim Jong-un may be trying to prove. Also, more victims are coming forward with allegations of assault and robbery to New Year's celebration in Germany. We hear one woman's frightening story later this hour.

(COMMERCIAL BREAK)

[00:25:00] VAUSE: Welcome back everybody. You're watching CNN NEWSROOM live from Los Angeles where it just gone 9:30 on a Wednesday night. I'm John Vause, the headlines this hour.

(HEADLINES)

VAUSE: More now on our top story, North Korea's nuclear test -- many international experts are debating why Pyongyang chose to carry out the test now. CNN's Brian Todd has some possible answers.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT: With an explosion the size of a moderate earthquake and the unattainable glee of a state news anchor,(FOREIGN LANGUAGE). Kim Jong-un makes his rivals shutter and sends intelligence agencies scrambling. A senior U.S. official tells CNN North Korea's nuclear test, whether it's a hydrogen bomb or not, is very concerning. Analysts give a stark assessment of the danger.

MICHAEL GREEN, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: North Korea is moving ever closer to and deliverable nuclear warhead that is miniaturized that can hit Japan, Guam, American territory or perhaps Hawaii or the West Coast. That's where they're moving and they're doing it with impunity.

TODD: From Seoul to Washington, officials are assessing Kim's motives. One possibility, he's signaling his enemies who he sees everywhere.

BALBINA HWANG, GEORGETOWN UNIVERSITY: Kim Jong-un is facing threats from all fronts -- domestically, internally, from his elites and so, he has to be able to manage and control all of that internally. But, of course, there's always the threat that North Korea believes comes from its external environment. TODD: External rivals like South Korea and the U.S., Kim can't compete

with them with his conventional military and needs nuclear weapons to balance the field, but he's got another possible motive with his outside rivals.

GREEN: With nuclear weapons, they can blackmail, intimidate and threaten the United States, Japan, South Korea, and China, to get economic aid, sanctions relief, and other things to preserve their regime.

TODD: A U.S. official says this test could be an important ramp-up to the highly anticipated congress of the Korean Workers Party in May. North Korea hasn't held such an event for 36 years and at that gathering of the elites, Kim is expected to consolidate his rule, shift more power from the military to himself. Experts believe Kim is flexing his nuclear muscles now because the internal threats he faces are constant.

PATRICK CRONIN, CENTER FOR A NEW AMERICAN SECURITY: He has to be more fearful every morning he wakes up that he won't get a bullet in his head. There are general officers inside North Korea who can't mobilize against him, but if they have an opportunity to take him out in the future, I think he can't rest peacefully about that.

TODD: If Kim finally develops a deliverable nuclear weapon -- a key question, is he dangerous enough, unstable enough to actually use it? Most analysts believe Kim would not launch a nuclear weapon just to provoke, but could do it if he's desperate or if there's another standoff like the one he had with South Korea last summer -- he could miscalculate. Brian Todd, CNN, Washington.

(END VIDEOTAPE)

VAUSE: Joining me now from Denver, former U.S. ambassador to South Korea, Christopher Hill who is also the head of the U.S. delegation to nuclear talks with the North Koreans. Ambassador, thank you for being with us again. Do you worry that Kim Jong-un is unstable and dangerous enough to use a nuclear weapon if he had that capability?

CHRISTOPHER HILL, FORMER AMBASSADOR TO SOUTH KOREA: He's certainly inexperienced. He certainly has shown some ups and downs in his personality so, without having -- without being a psychiatrist and certainly not having examined him, I can't say for certain, but there's a lot of reason to be concerned in there.

[00:30:00]VAUSE: Wolf Blitzer interviewed Donald Trump earlier today. He asked him about the best way of dealing with the North Koreans and he basically said this should all be on China. This is probably what Mr. Trump had to say.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: China should solve that problem. If they don't solve that problem, we should be very tough on them with trade, meaning, start charging them tax or start cutting them off. You'll have China collapse in about two minutes. WOLF BLITZER, CNN HOST: I've heard ...

TRUMP: We have great power over China and we just don't know how to use it.

(END VIDEO CLIP)

VAUSE: I guess the question is should the United States be outsourcing its foreign policy to China and does Mr. Trump have a point? Does the United States have a lot of influence over China?

HILL: Well of course, the United States has a lot of influence over China as China does with the United States and certainly China has influence over North Korea so, I would say in any strategy with the U.S. and like (ph) countries have, it should involve Beijing. The issue of course is Beijing does not have any consensus position with respect to North Korea.

Certainly the business community in Shanghai, for example, would love to be rid of this albatross but there are other parts of China that are much more (ph) and they're thinking about North Korea, after all, their many associations of Chinese who, you know, lost their relatives in the Korean War. It was a whole issue within China about what if North Korea goes down.

Is it just refugees issues to be worried about? Is it U.S. troops moving to the outer river? A lot of issues and I think it argues for a kind of a deep dive between the U.S. and China to really talk about these issues and as we're saying over to you, China, I don't think that would really work.

VAUSE: Well, I think Chinese officials told us today in a briefing that it's actually the United States, which has all the leverage right now because Kim Jong-un wants to meet with President Obama. Do you agree with that?

HILL: Well, you know, I think the U.S. has made clear it is prepared to meet the North Koreans but it has to be in the context of their agreeing to things they've already agreed to namely demilitarization. I think to restart talks or to have some kind of high level meeting in the absence of any conceivable commitment on the North Koreans to fulfill their obligation would, I think, look weak and to some extent rather foolish.

VAUSE: Finally, these Chinese officials also made the point to us that right now there's no credible number two in North Korea. If Kim goes, the whole thing could collapse. They say that his uncle was someone they could do business with in the past, but he was purged.

HILL: Well, certainly China has some real concerns about the stability of the leadership there and as I said earlier, I think they worry that if North Korea goes down, it will be viewed in China as certainly within security services and various groups as a victory for the United States and a defeat for China. So for the Chinese, there's a lot at stake here. On the other hand, they must be increasingly angry about North Korea

after all, the Chinese had a kind of tacit agreement with them over many months to the effect that they would ameliorate relationships in return for which the North Koreans would not test. And now the North Koreans had simply thumb their nose of the Chinese and I think the Chinese area really going to have to respond in some way and I would like to see a much deeper dialogue between China and the United States and other participants or other frontline states.

VAUSE: Ambassador Hill, good to speak with you again. Thank you, sir.

HILL: Thank you.

VAUSE: Also to come here, women targeted on the streets of Germany. Now, more are talking about what they say happened during New Year's celebrations in Cologne. And a small victory for Bill Cosby, we'll tell you why prosecutors in Los Angeles say they will not charge the comedian in two sexual assault cases.

(COMMERCIAL BREAK)

[00:35:00]VAUSE: Welcome back, everybody. The mayor of a German city, Cologne is advising women to stay an arm's length away from male strangers and people are furious about that comment which came after dozens of women say they had been sexually assaulted or robbed by Arab or North African men at New Year's Eve celebrations. CNN's Fred Pleitgen has the latest.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: A day after the allegations of mass sexual assault were made public, Cologne continues to search for the perpetrators and for answers. How could things get so out of hand? More victims are coming forward and describing their harrowing experiences.

UNIDENTIFIED FEMALE (TRANSLATED): Suddenly we were surrounded by a group of between 20 and 30 men. They were full of anger and we had to make sure that no one of us was pulled away by them. They were grabbing us and we were trying to get away as quickly as possible.

PLEITGEN: Police and witnesses continue to speak of a group of up to 1,000 men, groping and often robbing women at Cologne's main railway station on New Year's Eve. More than a hundred criminal complaints have already been filed. Germany's Interior Minister criticized the police's slow response to the violence and said authorities must do better in the future.

THOMAS DE MAIZIERE, INTERIOR MINISTER OF GERMANY (TRANSLATED): We still do not have a clear picture as to who may be behind the crimes. All we have are some clues. The actions of the perpetrators are not acceptable.

PLEITGEN: With Germany now announcing the country took in about 1.1 million asylum seekers in 2015, the New Year's Eve incidents are causing many to criticize Angela Merkel's Open-Arms Policy. But authorities say there are no indication refugees were involved. Meanwhile, Cologne's mayor is under fire for suggesting women need to be more careful.

HENRIETTE REKER, COLOGNE MAYOR (TRANSLATED): Women would also be smart not to go and (ph) everyone that you need to end (ph) to be nice. Such advances could be misunderstood and that is something every woman and every girl should protect herself from.

PLEITGEN: As the search for the perpetrators continues, questions still remain as to how this night of celebration turned sour so quickly. Fred Pleitgen, CNN, London.

(END VIDEOTAPE)

VAUSE: Over 50 women have accused comedian Bill Cosby of sexual assault, but he will not be charged in two cases here in Los Angeles. The District Attorney's office now says the statute of limitations in those cases has expired and in one case his prosecutors say there just was not enough evidence.

Cosby is still facing charges in a separate case in the State of Pennsylvania but he's now out on bail and denies all of the allegations. Criminal defense attorney Darren Kavinoky joins us now with more on this. Okay, so two cases here, both thrown out because they're essentially old. They couldn't meet the statute of limitations but here is a second case, Chloe Goins, and there are evidentiary issues here.

[00:40:00] DARREN KAVINOKY, CRIMINAL DEFENSE ATTORNEY: Right. So, these cases both didn't survive the statute of limitations, which is an artificial time limit that says, look, you've got -- it's only fair for you to bring these claims within a certain amount of time...

VAUSE: In timely manner?

KAVINOKY: Exactly, and that had expired. But even more on that other case, on the Goins case, there was review that suggested that the District Attorney's office could not meet their burden and here's how this works -- that prosecutors who have this obligation to seek justice aren't supposed to file a case unless at the time of filing they believe they have evidence beyond a reasonable doubt that that crime has been committed, that they can prove and win that case.

And what they found when they did their investigation is that there were a lot of conflicts in the evidence such that they couldn't meet their filing burden, even if it was timely.

VAUSE: They (ph) went through the video at the party they were both meant to be at. They couldn't find them.

KAVINOKY: Right.

VAUSE: Cosby was saying was on the (ph) list, that kind of stuff.

KAVINOKY: Right, and then there was a time when she said that an incident happened when he was provably not even in the state. VAUSE: Right. So, does this decision in Los Angeles by the D.A. impact

in any way what's happening in Pennsylvania?

KAVINOKY: Well, it's very interesting. Frankly, I would not be surprised to know that authorities in both Pennsylvania and Los Angeles were in conversation about this. In a way, the Pennsylvania filing took the pressure off Los Angeles because there already is that filing out there now and I think that these victims or alleged victims out here in California can actually be more useful to the prosecution in Pennsylvania because prosecutors there are going to try to get evidence, testimony from many, many women to parade ...

VAUSE: (INAUDIBLE) admit bad behavior. It has bad behavior

KAVINOKY: This is going to be the source of much legal argument as trial draw nears because generally speaking, you're not. Prior acts of misconduct generally aren't admissible to show conduct in conformity there with. But -- but, if it is so unique as to be a signature, if there is something there that is unique that makes it more reliable, then it comes in. So, that's where the fight is going to be.

VAUSE: Flip that around. Can the defense say, "Listen, this case was thrown out. The evidence in the Chloe Goins, it just wasn't there. This is (ph) by these women who are making up these allegation against our client."

KAVINOKY: Well, I think we can expect to hear arguments just like that and obviously if Ms. Goins hits the witness stand in the Pennsylvania courtroom...

VAUSE: It will be critical.

KAVINOKY: ... you can expect her to be vigorously cross-examined.

VAUSE: Very quickly, Camille Cosby will not be deposed. This is a defamation case. A judge issued a state, does that makes you to never give evidence in that case?

KAVINOKY: No, no. This is a temporary relief for Ms. Cosby -- Mrs. Cosby -- Camille. I think ultimately it's highly likely that she will ultimately be deposed, but what this legal ruling is, is it's an opportunity for an Appeals Court to now weigh-in on whether or not setting her deposition was proper.

She was arguing that it was improper and because of the law there that shields spousal communications, that she shouldn't have to give the deposition. On the other side, the judge in the initial ruling saying that no, you do have to be deposed, said that didn't apply, that that was something for trial, but couldn't keep her off the deposition.

VAUSE: To say deposition, does her evidence hurt or help Cosby. She wasn't at by his side when he turned on to Pennsylvania.

KAVINOKY: You know it's interesting. I think at the end of the day, because she was also his business manager, she's likely going to be deposed and I don't think it's going to hurt Cosby that badly. I expect her to be expertly prepared and I think we're going to get a lot of I don't remembers on...

(CROSSTALK)

VAUSE: I do not recall.

KAVINOKY: You bet.

VAUSE: Darren, always good to speak to you.

KAVINOKY: Yes. Thank you.

VAUSE: Thanks for coming in, appreciate it. Also to come here, drivers in Los Angeles are logging through a very wet commute as bad weather sets in. We'll tell you what's caused (ph) after the break. Also someone out there may have a whole -- maybe a whole lot richer right now (ph) here. We'll look at the winning numbers from Wednesday's $500 million U.S. Powerball lottery when we return.

(COMMERCIAL BREAK)

[00:45:00]VAUSE: A major gas leak in a suburb just north of here in Los Angeles has prompted California's governor to declare a state of emergency. It was discovered back in October, but the Southern California gas company has not been able to stop it. The methane leak was forced more than 2,000 people from their homes. The gas company says it hopes to stop the leak by the end of March.

Storms pound by El Nino have slammed California with some heavy rain. These are images of flooding on Interstate 5 in Los Angeles. Forecasters expect rain and showers to continue into the weekend that could affect some areas already left vulnerable by recent wildfires. More on the dangers of the rain, especially in those areas that have been burned out. Let's go to Pedram Javaheri in the CNN Center in Atlanta. Hey, Pedram.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Thank you John. I see (ph) it's really important to note actually with this past summer, over 9,000 individual fires occurred across the State of California. It consumed almost one million acres of land. So, you think about it -- you think about the massive burn scars that are in place. You take a look at the perspective when it comes to what occurs in this region. We have forest splinter, we have bush, we have leaves, we have brush, and of course trees that are across this region. Once you have a major fire take place, but again well over 9,000 of them took place across California. All of that brush that has burned down, it is burned down and creates

this sand-like layer. You have this place in perspective and with heavy rain events that now we're getting across this region associated with El Nino, some of that water is absorbed into the sand lake layer. Unfortunately, the extreme elements there -- the extreme heat associated to fire creates what we call a hydrophobic soil, which essentially a lid that is blocking the water from being entirely absorbed into the soil. So, the heavy rain comes down, it is absorbed by the sand-like layer that essentially what is left of the foliage that was consumed, now we create a landslide threat. A really good rule of thumb is if you can look above your head -- look

upstream and see a burnt soil above your head in the hillside -- it is the worse place to be just downstream of that region because the water certainly not going to be absorbed and it's going to create a very dangerous scenario across this region. And if you take a look, rainfall is still in the forecast over the next couple of days -- storm track further south. This is beneficial rainfall of course. We'll take it but since severe weather over the past 24 hours across this region John, two tornadoes across parts of California, one of which across the San Diego County area -- first to be confirmed in this area since 2006. So again, very increment weather across parts of California, but again, beneficial for some as well.

VAUSE: Yes, certainly wet outside. Pedram, thank you. Have you played the lottery in the United States? You may want to check your ticket. The winning numbers for Wednesday's $500 million Powerball had been drawn. Here they are in numerical order, the winning combination, 2, 11, 47, 62, oh, my gosh, 63, 17. I didn't win. So, the biggest jackpot in U.S. history -- the single largest lottery jackpot in the world currently stands at $656 million. It was split among multiple winners back in 2012.

I'll see you back here tomorrow because I didn't win. Okay, lastly here. He is the third in line for the British throne, but first things first, Prince George started school on Wednesday. His mother, the Duchess of Cambridge, released two photos of the two and a half year old. I see (ph) the Montessori school near the family home. Reports say the prince will attend two to three days a week and he won't be home schooled. Thank you for watching CNN NEWSROOM, live from Los Angeles. I'm John Vause and I will be back with another hour of news all around the world after a short break. You're watching CNN.

[00:50:00] (COMMERCIAL BREAK)