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WORLD RIGHT NOW WITH HALA GORANI

China's Economic Troubles Hitting U.S. Stocks; Drug Test Leaves One Brain Dead, Five Others Ill; Police Name One Of Jakarta Attackers; Indonesia's Muslims Condemn Islamic Terrorism; Sean Penn: "Terrible Regret" Over "El Chapo" Story; Global Markets In Turmoil As Oil Prices Drop; Netflix Cracks Down On Content Grab; U.N. Chief: Starvation In Syria "A War Crime"; Candidates Trade Jabs In Republican Debate; Tim Peake Becomes Britain's First Spacewalking Astronaut. Aired 3-4p ET

Aired January 15, 2016 - 15:00   ET

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


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(HEADLINES)

HALA GORANI, CNN INTERNATIONAL ANCHOR: Hello, everyone. I'm Hala Gorani. We are live at CNN London. This is the WORLD RIGHT NOW.

It's winter in the northern hemisphere and markets have definitely entered big chill territory. Falling oil prices sending the Dow into a deep dive

in afternoon trading. Let's see where things stand.

Now here's a look at the Dow Jones Industrial average. We are about 51 minutes away from the end of the trading day and we are down 369 points at

16,009, but the Dow was off almost 500 points a little bit earlier.

CNN's Money's digital correspondent, Paul La Monica, says investors are running scare. He joins me now from New York, and also joining us, Neil

Sheering, chief emerging markets for Capital Economics. Thanks to you both for being with us.

All right, I'm going to start with Neil Sheering. First of all, why are we seeing panic now? Is this a fundamentals problem here?

NEIL SHEERING, CHIEF EMERGING MARKETS ECONOMIST, CAPITAL ECONOMICS: I think that at the essence of this latest sell-off is concerns about

emerging markets. They were supposed to be the economies that were rapidly growing and drive the global economy off to the financial crisis of 2008.

And for a while that happened, but more recently we have seen concerns emerged in the direction of China's economy in particular. Russia is in a

deep recession and Brazil is a deep recession.

And there are fears that this is going to affect other parts of the global economy, too. The dollar has gone up in value starting to hurt the U.S.

manufacturing sector. Europe has its problems as well.

All of those things have coalesced and come together at the start of this year and helped to explain why we have seen this latest slide in the

financial markets.

GORANI: And Paul La Monica, is it a justified slide?

PAUL R. LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: I think that there are definitely some legitimate reasons why portions of the stock market should

be falling. Clearly with oil doing what it has done. Energy companies are going to be down.

There are some stocks that had amazing runs last year like Amazon and Netflix and Facebook, and they probably deserve to pull back a little bit

too.

But this broad market sell-off does seem to be a bit of an overly emotional reaction to what's happening with oil and some of the fears about China.

This happened in August remember.

And then we had an amazing rally in October, and now we're back where we were last summer. So investors just can't seem to shake these worries

about China and oil.

GORANI: And Neil Sheering, is this a case of waiting for quarterly results to see if these fears that we're seeing a real pullback in economic growth

coming from abroad are justified?

SHEERING: It may well be. Obviously, we look at the quarterly earnings reports. As economists will look at economic data that are coming out over

the coming months for signs of a real slowdown in global activity.

But I have to say so far there doesn't seem to be very much in the way of evidence that supports this idea that things have suddenly fallen off the

cliff.

Certainly in China the indicators that we follow, we have our (inaudible) measure of growth there. That's been pretty flat in recent months.

Nothing to suggest the economy has tanked. And some of those markets too seems to be picking up.

And the U.S. economy weak at the end of last year, but we know the labor market is still in pretty good shape. So all told, I don't think there's

much to suggest that the world economy is entering a prolonged dying turn.

I suspect the big force in commodity prices are puts behind us and I think lower commodity prices and oil prices in particular should be a good thing

for the global economy and I suspect China's economy will start to probably pick up over the course of the coming months and quarters.

GORANI: Neil, I just wanted to get to Paul. Based on what Neil is saying, which is essentially that we might see China pick back up. That

essentially we might see potentially some better quarterly earnings that the Dow that has lost -- I think we have a year-to-date graph or maybe

year-on-year graphic that perhaps we're seeing some buying opportunities.

[15:05:08]LA MONICA: Definitely. People I spoke to today said that this is the time to be buying bargain stocks. Quality companies that should be

able to weather whatever financial or economic storms might be coming in the next months.

I think that's a great point from Neil about China as well. JPMorgan Chase CEO Jamie Dimon said yesterday when that bank reported earnings that what's

going on in China isn't necessarily that the sky is falling, it's a hard landing, it a recession or worse.

This is an economy that is transitioning, it's a difficult transition to a consumer led economy. Jamie Dimon says he is still very bullish and

optimistic about China for the long term.

We just all have to get used to the fact that China isn't going to grow at the level it used to anymore. That's not a huge problem.

GORANI: By the way, we're seeing a graph, but I really can't read the actual figure. This is year-on-year which means basically the last 12

months. The Dow down 7.5 percent. So yes, where we are now is pretty much where we are in the summer.

I think Paul or Neil, you were mentioning that. So 7.5 percent year on year, it's a bad performance compared to the last few years. But perhaps,

Neil, I'm going to give the last word to you, a necessary pullback, readjustment to more realistic levels?

SHEERING: I suspect part of it is necessary. There was some froth in particular in China and Latin America. We have been among the most bearish

commentators on emerging markets over the past three years.

I think a lot of the bad news there is now probably in the markets. I think the big drops in prices may well be behind us. It's a great person

that enters the market at this stage, but I think over the coming months that we probably start to see some signs of stabilization emerge.

GORANI: All right. Well, you're rewarded if you're brave sometimes and sometimes not at all. Anyway, we'll see how this markets goes. Thanks

very much. Neil Sheering and Paul La Monica, both of you in New York. Thanks for joining us on this Friday.

Now to a shocking story in France. A botched drug trial that has left one person brain-dead. Five other people who participated in this test carried

out by the company Bio-Trial are in a hospital.

The hospital's chief of neuroscience said some patients may have irreversible disabilities, but he added it is too soon to give a definite

prognosis.

Phil Black has been following this tragic story. So this is really the worst case scenario, isn't it? Because this was phase one where

participants, the drug is given to participants to see if there are any horrible side effects and there were?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Phase one trial is supposed to test if it's fit for human consumption follows animal trials. But even

that considered, this is not supposed to happen. We have seen this drug given to around 90 people but in different doses.

All of those have reacted negatively to it. They were part of the same group. They started taking it repeatedly from January 7th, but after only

a few days one of them started to fall ill, display these negative symptoms.

He is the person who is now clinically brain-dead. The others quickly followed as well. Also neurological symptoms there. Yes, it's pretty

serious indeed.

The health administer says this drug, its purpose was to treat anxiety and motor disorders, but he also had to deny some pretty strong reports out of

the French media that this was a cannabis-based drug. Take a listen.

(BEGIN VIDEO CLIP)

MARISOL TOURAINE, FRENCH HEALTH MINISTER (through translator): Contrary to what I heard, - this drug does not contain any cannabis. And it is not --

there is no drug derived from cannabis. It acts on natural systems that allow to fight against pain. It's what we call the endocannabaloid

(inaudible). I insist on that there is no cannabis in this drug.

(END VIDEO CLIP)

BLACK: So no cannabis there but it's easily misunderstood there. If you heard the name, it's actually named after cannabis. The bodily system of

this drug is designed to influence -- contains the same receptors that compounds in cannabis interact with.

The private drug lab that was guiding all of this says all regulations were followed. So does the Portuguese company that developed the drug. It's up

to the French authorities to investigate what they say is an unprecedented event.

GORANI: And 90 people participated. How many fell ill?

BLACK: So we're looking at the group of six. There was 128 in total, 90 received the drug. The rest were placebos. It appears to be the group

that received the highest dose. They were taking it repeatedly.

GORANI: And the others are in the clear or not?

BLACK: So far that's all we're aware of, but of course, obviously this is all being cancelled now as they try to determine what happened.

GORANI: All right, Phil Black, thanks very much for that report. A lot more to come on the WORLD RIGHT NOW on this Friday.

[15:10:02]Fears are increasing that ISIS may be gaining a foothold in Indonesia, but Indonesia's Muslims are standing up against terror in the

name of Islam. We'll show you how.

Sean Penn breaks his silence on El Chapo. Find out why he says his "Rolling Stone" article on the drug kingpin, quote, "failed." All that and

more after this.

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GORANI: A search is under way for 12 U.S. Marines missing off Hawaii. Officials say two Marine helicopters likely collided late Thursday while on

training flights. Witnesses say they heard a loud noise and then they saw a flash. Searchers have found an empty life raft in a debris field.

Indonesian police have released the name of one of the five terrorists in involved in Thursday's deadly attacks in Jakarta. They says his name is

Afif (ph), but he's known by an alias, "Sunakim."

He already had been convicted on terror related charges and died during Thursday's attack. You can see cleanup efforts under way at the Starbucks

where suicide explosion took place.

The attacks killed two people and wounded 24 others. ISIS claimed responsibility pretty quickly. Indonesian authorities say the alleged

mastermind had left the country for Syria some time ago to join the terrorist group.

There are fears now that ISIS is gaining ground in Indonesia. But as Saima Mohsin reports locals are fighting back against that narrative.

(BEGIN VIDEOTAPE)

SAIMA MOHSIN, CNN CORRESPONDENT (voice-over): At the capital's main mosque prayers for those killed and injured and thoughts on the threat of violence

extremists like ISIS recruiting Indonesians in the name of Islam.

(on camera): In a strongly worded sermon during Friday prayers here at the grand mosque in Jakarta, the imam has said that terrorism is a crime

against humanity and that Islam shouldn't be something to the be scared of or used to spread fear among people.

This, the first to attack on Indonesian soil claimed by ISIS has compelled people here to speak out against terrorism in the name of Islam.

UNIDENTIFIED MALE (through translator): What happened yesterday they are not Muslims, they are infidels. I condemn them. I demand the government

solve this problem. As a Muslim, I reject this terrorism in the name of Islam.

UNIDENTIFIED FEMALE (through translator): Islam has become a scapegoat. People believe Islam is identical to violence. Every time violence happens

people think it's related to Islam but it's not.

UNIDENTIFIED MALE: No. No. I'm not terrorist. But I want to say to the world Muslim Islam not terrorists. Terrorists not Muslim

MOHSIN (voice-over): Across the city, an association of Islamic scholars with 50 million Indonesian members worldwide held an interface dialogue

with representatives of the Catholic and Protestant churches, Jewish, Hindu, and Buddhist communities calling for unity and peace.

[15:15:15]In November 2015 recognizing the potential threat the association released a video campaign aimed at countering extremist ideology. There's

growing concern heightened by this attack about ISIS gaining a foothold in the world's largest Muslim country.

At least 500 fighters believed to have traveled from Iraq and Syria from here. That's 500 out of 200 million moderate Muslims in a secular state.

ISIS claimed responsibility for Thursday's gun and bomb attack saying the group was targeting the crusader alliance, which is fighting the Islamic

State (inaudible) Indonesian Muslims. Saima Mohsin, CNN, Jakarta, Indonesia.

(END VIDEOTAPE)

GORANI: Sean Penn is speaking out about his interview with drug kingpin, Joaquin El Chapo Guzman and he's not happy. Penn says his "Rolling Stone"

article was designed to start a public conversation about the policy of the war on drugs, but he told CBS News that everyone missed the point.

(BEGIN VIDEO CLIP)

SEAN PENN, MET WITH "EL CHAPO" IN MOROCCO: There is a complicity there and if you are in a moral right or on the far left, just as many of your

children are doing these drugs. Just as many. And how much time have they spent in the last week since this article come out talking about that, 1

percent? I would say that would be generous.

UNIDENTIFIED MALE: You are saying there is not much dialogue about --

PENN: My article failed. Let me be clear. My article has failed.

(END VIDEO CLIP)

GORANI: The "Rolling Stone" article sparked more dialogue on Sean Penn and how he got to El Chapo and legal liabilities and everything else. All the

spectacle surrounding the interview rather than the drug war of course. We all know that.

Senior Latin American affairs editor, Rafael Romo, has been following every twist in this story since the El Chapo recapture and joins me live.

So Rafael, let me ask you also Sean Penn was asked whether he believed that here we go again not talking about the drug war, right -- whether he

believed the fact he got to El Chapo is what led authorities to the drug lord. What did he say?

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: He says listen I'm not that smart. The DEA and the Mexican officials are smarter than we are

and that was not my purpose at all. He wanted to set the record straight, Hala, and he chose CBS to do so.

In this interview with Charlie Rose he says his goal was not to glorify Joaquin El Chapo Guzman or the Sinaloa cartel for that matter. What I

wanted to do he told Rose was to start a conversation about the policy of the war on drugs.

But as soon as know, Hala, the conversation about Sean Penn's 10,000-word article that appeared Saturday on "Rolling Stone" magazine has centered on

potential legal problems he may face because he's been involved in it and the process how he got access to El Chapo in the first place.

Now Penn also wanted to spell the notion that it was this interview that helped Mexican officials like I said before find El Chapo's whereabouts

which led to his capture. Let's take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have met with him many weeks earlier on October 2nd.

PENN: On October 2nd. In a place nowhere near where he was captured. We're not smarter than the DEA or the Mexican intelligence. We had a

contact upon which we were able to facilitate an invitation.

UNIDENTIFIED MALE: Do you believe that the Mexican government released this in part because they wanted to see you blamed and to put you at risk?

PENN: Yes.

UNIDENTIFIED MALE: They wanted to encourage the cartel to put you in their crosshairs?

PENN: Yes.

(END VIDEO CLIP)

ROMO: Now, both Mexican and U.S. officials have told us in the last few days that the meeting with El Chapo, Hala, was essential to the drug lord's

capture. Back to you.

GORANI: OK. Now, let's -- we're waiting to hear from El Chapo's lawyer right? What are we expecting the lawyer to say at this stage?

ROMO: Well, he wants to discuss what's going to happen with the extradition effort. His attorneys in Mexico are solely responsible for

trying to prevent El Chapo from being extradited to the United States.

There was a brief media availability last weekend and he said as much and so that's what we expect he'll talk about. There's a matter of legal

appeals that he can use in the meantime and Mexican attorney general has said it may take anywhere from one to five years before he can be

extradited to the U.S. -- Hala.

[15:20:03]GORANI: And very briefly, I'm seeing an urgent here that Mexican authorities are investigating possible El Chapo funding of the Mexican

actors he was exchanging text messages with, of Castillo's tequila venture. I don't know how to make heads or tails of that. What is this about?

ROMO: Kate Del Castillo has a tequila distribution company in the United States and what are authorities are trying to find out is whether her

company was funded provided by El Chapo as a means to launder money. If this is true, Hala, Kate Del Castillo, a very famous Mexican actress, would

be in serious legal trouble.

GORANI: OK, thanks very much, Rafael Romo, for the very latest on the El Chapo saga.

Now he's a world famous hiphop artist, an actor, a political activist and he is now in trouble with South African authorities. Moss Deff (ph) has

appeared in a Cape Town court after attempting to leave the country with what he described as a world passport.

A government spokesman says the 42-year-old entertainer, his wife, mother and four kids overstayed their tourist visas and all have been ordered to

leave the country within 14 days. The rapper now goes by the name of Yasin Bay and has lived in Cape Town since 2013, but could find himself banned

from the country for five years. That's your update on that.

Coming up, Netflix is cracking down on remote streaming from abroad, but its CEO insists the same shows are going to many countries very soon.

We're live from New York next.

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GORANI: Welcome back. This is what's going on with the Dow right now. We were down almost 500 points. Off session lows but still a bruising day.

Down 2.5 percent at 15,971. We are back to the levels of about last summer.

So is this an accurate reflection of the economic picture or is this a good opportunity to snap up stocks? You have both theories out there. Here's

the Nasdaq and S&P for you. In European markets across the board didn't do too well either. There you have it. Not as bad as the Dow but still down.

Slumping oil prices are one of the major factors causing the turmoil in financial markets. Prices for crude have fallen below $30 a barrel. CNN

asked Africa's wealthiest man if he thinks oil prices will continue to fall.

(BEGIN VIDEO CLIP)

ALIKO DANGOTE, PRESIDENT, DANGOTE GROUP: Easily 2025, you know. It could be 2025. But in a couple of countries it's not a death sentence. You

know, it is also an opportunity. I think in Nigeria this will be a lesson for us. I know there are good things that don't come without pay.

(END VIDEO CLIP)

GORANI: There you have it. Now the video streaming giant Netflix is cracking down on people who use computer tricks to access their content.

If you have a VPN because you know the content on Netflix U.S. is better than where you are in the world.

Well, possibly you're not going to be able to do that anymore. The California based media company says it intends to block people from using

VPN's to watch Netflix programs that are available in other countries but not theirs.

CNN's Samuel Burke has been tracking this Netflix action and he joins me now from New York. OK, so I'm asking for a friend here but when --

SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: It's legal, Hala. You don't have to worry. We both do it. Let's just admit it.

GORANI: OK, that's great. Listen, because the content of U.S. Netflix is better. You have more choice and more movies. When is this going to

change?

[15:25:07]BURKE: It's going to be starting immediately, but the reverse is sometimes true. In the U.K., for example, you guys have Modern Family, all

the episodes available there so sometimes here in the U.S. I use a VP and virtual private network which makes Netflix think that I'm in the U.K. so I

can watch the U.K. shows.

Listen, lots of places have been doing this. Outlets like HBO which is owned by our parent company, Time Warner. I always try to access HBO when

I'm in the U.K. and it's getting more and more difficult.

So a lot of companies are doing this. China, as well, a lot of businesses depend on accessing Google, which is blocked in China using their VPN has

become more difficult.

So all around the world we see them cracking down. My advice if you're watching the show on VPN on Netflix, finish it quickly because I think

you're only going to have a few weeks left.

GORANI: So why are they doing this now? They have clearly known about this for a long time.

BURKE: Well, I think they're also wanting to put pressure on the movie houses, on the TV companies that give them their content to say we want to

make things available globally. Stop doing these contracts with us that only make it available in the United States, not in the U.K., available in

this country and not there.

Netflix says clearly listen we want to be a global channel, we want everybody to be able to watch content at the same time, which is part of

the goal of the Netflix original series, but even there they have trouble.

"House Of Cards," most people think it's created by Netflix so it's available all around the world but it's not. Places like Singapore it's on

television stations so they have a separate contract. So it's not available there.

I think this is in part Netflix trying to push these companies to make them give them global rights. An interesting stat I wanted to share with you,

21.3 million people in China use Netflix and Netflix isn't even available there. This is all because of the VPN but not for long.

GORANI: Aren't they shooting themselves in the foot here? I mean, essentially if you're preventing people from using VPN to access content

from other countries, won't people say I don't want Netflix then, I can't access these shows that I was watching easily and in an unrestricted way?

BURKE: Interesting that you see that, Hala, because one analyst I spoke today said they might lose some customers in the short term because there

are people who are just paying so they can see the American version of Netflix, but think that long term they have proven that their strategies

have worked.

Hopefully they do get those contract so we can all watch at the same time. I hated when I lived in Mexico and had to wait sometimes a year to see

movies that were out in the United States.

GORANI: Last question, is there any way around this?

BURKE: Absolutely. For every wall there is always a ladder but it's getting more and more difficult. So you'll have to have your IT guy come

from work to do it. There will always be a way but more difficult unfortunately.

GORANI: It's a minor miracle that I'm able to do anything at all. Thank you very much, Samuel Burke. Have a great weekend and thanks for that

report. That I think is of interest to many, many people around the world.

We'll have a live check on the markets from New York in a moment. Stay with us.

Also ahead, a second wave of vital aid reaches three desperate Syrian cities. The U.N. secretary general says scenes of starvation. We'll speak

to the regional director from UNICEF coming up.

(COMMERCIAL BREAK)

GORANI: A look at our top stories. It's been a brutal day on Wall Street. The Dow has tumbled hundreds of points due in large part the plummeting oil

prices. Worries about China as well.

[15:30:07]Here's a look at the big board, we are down almost 400 points at 15,995 for the Dow.

A drug trial in France has gone terribly wrong leaving one person brain- dead and five others in the hospital. The company called Bio-Trial carried out the test on a drug developed by a Portuguese company. There were 128

volunteers, 90 took the drug. It's a painkiller meant to treat anxiety and motor disorders.

Indonesian police have released the names of one of the five terrorists involved in Thursday's attacks in Jakarta. They say his name is "Afif"

(ph) also known by an alias "Sunakeem" (ph. He already had been convicted on terror-related charges. He died during Thursday's attacks.

We expect words soon from the U.N.'s nuclear watchdog agency on whether Iran has held up its end of the deal signed with world powers last year.

Compliance will trigger an easing of crippling economic sanctions that was the incentive to curve Iran's nuclear program.

Let's get back to the market turmoil. Alison Kosik joins me now from the New York stock exchange. We are half hour from the close of trade and

really we haven't recovered much. Still down 400 points. What's the mood on the floor?

ALISON KOSIK, CNN CORRESPONDENT: This is actually, Hala, quite an improvement from the Dow falling 530 points. Nothing to write home about,

413 points lower, but you have to take what you could get.

What's the mood? I talked to several traders who say they are exhausted from this volatile week that we have had where you have seen several triple

digit moves.

There was a lot of surprise about today's action especially after the Dow finished up more than 200 points in the previous session.

Part of the reason you're seeing this is oil. Oil is slipping to levels that we haven't seen since 2003 below $30 a barrel. It's really spooking

the markets -- Hala.

GORANI: OK, so what are the expectations going forward? Are experts saying we have taken the necessary air out of the market here? We are

correctly value and we hope that from now on we won't see big drops? What are you hearing?

KOSIK: If only we had a crystal ball. No one really knows that's the thing. No one really knows if today is the day of capitulation. You know,

it's anyone's guess at this point. I did ask a couple traders what they thought could turn the market around and we are currently in the middle of

fourth quarter earnings season.

A couple of things, for one, if earnings come in good and even better than that, if these earnings show that forward guidance is positive for the

outlook for a lot of these companies, that could turn stocks around and that could settle the markets as well. It may not be as much volatility.

Also if the fed comes out in one way shape or form signaling to the market that they're not going to ahead and raise rates four times this year

because the thinking is that as the fed raises rates that could stifle growth.

You're seeing investors hoping that the fed goes ahead and says wait we're going to pause a bit and not maybe raise rates four times this year, but

maybe do it once or twice this year. That could also turn the market around -- Hala.

GORANI: This is a nonmarket related question. I'm hearing people scream in the background. It sounds very high-pitched. What's going on?

KOSIK: I know. They're going to scream in about two minutes. I'll talk really fast. They're all going to make noise and bang on things. Here it

goes as they have a long holiday weekend.

The U.S. markets are closed on Monday and this is just a fun thing that traders like to do to pass the time to celebrate a long holiday weekend.

Although a couple traders said they're not going to be relaxing on Monday when the markets are closed. They're going to be worrying about the next

trading day -- Hala.

GORANI: All right. I get it now. I finally get it. I was wondering what was going on. Thanks very much. Have a great weekend. I hope yours is

long weekend, too. Alison Kosik in New York.

All right. Let's turn our attention now to once again misery out of Syria. A second wave of aid has reached the Syrian cities of Madaya, Alfroa, and

Tufraya.

Madaya is controlled by rebels, but it's under siege by the forces loyal to the regime and its ally, Hezbollah. The 40,000 people are starving

literally.

Just after U.N. convoys reached the areas this week, the U.N. secretary general made it clear that the use of starvation as a weapon is a war

crime.

He said teams had witnessed scenes that honk the soul. He accused all sides including the government of using starvation as a weapon.

A UNICEF team found 22 children under the age of 5 suffering from malnutrition and six children suffering from severe, one them a teenager, a

16-year-old died right in front of the eyes of UNICEF workers.

[15:35:08]I would like to bring in Peter Salama from UNICEF. He is the group's regional director of the Middle East and North Africa. He

coordinates all of the missions into Syria. He joins me from Amman, Jordan.

Peter Salama, let's talk about this one teenager whose story really tells the story of many more. The 16-year-old died of starvation. What did the

UNICEF workers you spoke to tell you they witnessed?

PETER SALAMA, UNICEF REGIONAL DIRECTOR FOR THE MIDDLE EAST AND NORTH AFRICA: Basically they witnessed in this make-shift hospital, which is the

only functional health facility today in Madaya were two exhausted doctors.

They found in one bed two teenagers and saw one was looking particularly weak and took his pulse and realized he was in his last breaths.

They tried to resuscitate him, but unfortunately, it was too late stage in terms of his severe malnutrition, and he passed away in front of his mother

and the UNICEF staff members there.

GORANI: This make-shift hospital and it is a make-shift hospital only has two working doctors, correct?

SALAMA: That's right and those doctors are exhausted. They've lost a lot of weight themselves. They were really working with very few medicines,

very little medical equipment.

So we were able on these convoys that got in yesterday and a few days ago this week to resupply them to ensure they had the commodities, the

essential medicines to begin to treat these very complicated cases.

GORANI: And we have new video coming from UNICEF, in fact, Peter Salama, showing aid workers tending to a young boy being treated. I want to tell

our viewers it's a bit disturbing to see, but this is video we haven't seen before.

And clearly this is a young boy who is having health issues as well. Tell us more about what else the people you spoke to saw in Madaya.

SALAMA: The people I came into contact are exhausted, Hala. They're weary. They were waiting quietly and desperately in the rain for food.

The mothers were begging really that we would save their children's lives.

As you mentioned, the quick surveys were able to assess the levels of malnutrition and showed a very serious problem. The majority of kids we

were able to see were malnourished.

We were hoping that this will be just the beginning that we'll be able to have unconditional and sustained access not only to Madaya, Hala.

But to all of the besieged areas of Syria because there are many others where there are more than 400,000 people across Syria being besieged by

this.

GORANI: It's not just government forces sort of holding a city like Madaya hostage. You're witnessing rebels doing the same to areas loyal to the

regime? Is that correct?

SALAMA: All right, the major parties of the conflict really abusing flagrantly international humanitarian law including (inaudible) siege to

civilian populations.

GORANI: All right, do you -- lastly I want to ask you about, you said you hoped that you would be able to gain access to places like Madaya and other

cities and towns that are under siege. What is your hope this will happen? I mean, are you getting positive signals here on that front?

SALAMA: Well, we have got a lot of hope today, particularly, Hala, the U.N. Security Council is meeting as we speak. The political leadership of

the world is looking at Madaya and hoping this could represent a turning point for how humanitarian access to all of the children across Syria.

And we are really counting on that leadership, counting on the allies to put pressure on them once and for all to turn this unconscionable situation

around.

GORANI: We're talking about this on TV of course. The situation in Madaya made really front page news about a week or ten days ago. Do you think

that shining a light on these issues puts pressure on the parties to sort of loosen their siege or their hold on towns that need aid?

SALAMA: We very much are counting on that, Hala. That eventually people will realize that the civilians have suffered enough in Syria and enough is

enough and that we have to turn the situation around.

And we're really demanding unimpeded sustained access to this population because it's not just about the convoys supplying food or medicines, we

need to be able to get in there, do proper health and nutrition assessments.

Train local staff to be able to deal with these cases of malnutrition and monitor the goods and services going into these besieged areas.

Ultimately, the only thing that will solve this problem is a political solution to the crisis in Syria.

[15:40:11]GORANI: All right, Peter Salama joining us from Amman, Jordan, the UNICEF regional director for more on Madaya and many other places

across Syria also in similar situations. Thank you very much for joining us with more on this tragic story.

Difficult images to see. Starving kids in 2016 in a country that has plenty food, very difficult to watch. Don't forget you can check us out on

Facebook, facebook.com/halagoraniCNN.

You will find out interviews and content from the program as well as today a special treat I think. I answered some of our viewer questions and we

had fun doing that. Check us out online.

This is the WORLD RIGHT NOW. Coming up next, from what seemed like the best of friends to the worst of enemies. More on the sharp exchanges

between Donald Trump and Ted Cruz.

Plus, he's the first British astronaut to step out into space, but his spacewalk was cut short by another astronaut's sudden problem. We'll

explain.

(COMMERCIAL BREAK)

GORANI: U.S. Republican presidential hopefuls went after each other at Thursday's debate with the Iowa caucuses a few weeks away. The two

frontrunners in the polls, Donald Trump and Ted Cruz locked horns in South Carolina on the issue of Cruz's eligibility to become president. John

Berman has our story.

(BEGIN VIDEOTAPE)

JOHN BERMAN, CNN ANCHOR, "EARLY START" (voice-over): In the race between Donald Trump and Ted Cruz, the current Republican frontrunners, two things

now abundantly clear, it is truce off and game on.

SENATOR TED CRUZ (R), PRESIDENTIAL CANDIDATE: Back in September, my friend, Donald, said that he had had his lawyers look at this from every

which way and it was nothing to this birther issue.

BERMAN: Cruz mocked questions Trump is now raising about the fact he was born in Canada and whether he is even eligible to run for president.

CRUZ: Since September the constitution hasn't changed, but the poll numbers have.

BERMAN: Trump acknowledged, yes, that is part of it.

TRUMP: Because now he's doing a little bit better. No, I didn't care before.

BERMAN: But in their most pointed exchange in this race so far he said there is more.

TRUMP: Here's the problem. We're running. He does great. I win. I choose him as my vice presidential candidate and the Democrats sue because

we can't take him along for the ride, I don't like that, OK.

CRUZ: Well, listen, I've spent my entire life defending the constitution before the U.S. Supreme Court and I'll tell you I'm not going to be taking

legal advice from Donald Trump.

BERMAN: The battle moved from Canada to New York in the charge that Donald Trump represents what he calls New York values.

[15:45:04]CRUZ: Everyone understands that the values in New York City are socially liberal, pro-abortion, pro-gay marriage, focused around money and

the media. Not a lot of conservatives come out of Manhattan. I'm just saying.

BERMAN: Trump responded uncharacteristically somber by invoking September 11th.

TRUMP: We rebuilt Downtown Manhattan and everybody in the world watched and everybody in the world loved New York and loved New Yorkers and I have

to tell you that was a very insulting statement that Ted made.

BERMAN: For the most part the other candidates focused their fire on the president and Hillary Clinton.

JEB BUSH (R), PRESIDENTIAL CANDIDATE: She's under investigation with the FBI right now. If she gets elected her first 100 days instead of setting

an agenda, she might be going back and forth between the White House and the courthouse.

BERMAN: Though, Chris Christie unleashed on Marco Rubio for dodging a question on entitlements.

CHRIS CHRISTIE (R), PRESIDENTIAL CANDIDATE: You had your chance. Marco, you blew it.

BERMAN: And Marco Rubio with just a few minutes to spare in the debate did some unleashing himself on Ted Cruz.

MARCO RUBIO (R), PRESIDENTIAL CANDIDATE: Ted Cruz, you used to say you supported doubling the number of green cards. Now you say you're against

it. You used to support a 500 percent increase in the number of workers.

Now you say you're against it and legalizing people here illegally. And you used to say you were in favor of birth right citizenship and now you're

against it.

BERMAN: Cruz fought to respond.

CRUZ: At least half of the things Marco said are flat out false. They are absolutely false.

(END VIDEOTAPE)

GORANI: Let's get more on this birther issue and also how Ted Cruz may have sort of adopted a losing strategy, his statements over in New York,

the debate whether Ted Cruz is in fact eligible to run dominated much of the discussions.

I'm joined by Mark Preston, the executive editor of CNN Politics. Let's settle this. People outside the United States are asking, look, shouldn't

it be easy to settle the question of whether or not Ted Cruz is eligible to become president of the United States. He was born to American parents in

Canada. What is the answer to that question?

MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: Well, the answer is we don't know the answer to that question. If you talked to somebody reasonable

they'll say that Ted Cruz's mother was American. He was born in Canada and his father is from Cuba.

So in fact, he is an American citizen. If you were to flip this the other way, if you were an illegal immigrant to have a baby here in the United

States, that child would be eligible to be president, which is very much ironic given the fact that Ted Cruz is talking about very much in this

campaign about securing the borders.

But what Donald Trump has been warning Republican voters over and over again in an effort to try to chip away at Ted Cruz's appeal to

conservatives is that lawsuits will be filed.

And in fact today a lawsuit was filed down in Texas which is the home state of Ted Cruz asking the courts to decide whether or not Ted Cruz can really

run for president.

GORANI: But when will this be settled? We're just a few weeks away from Iowa here.

PRESTON: Right. It's certainly not going to be settled a few weeks away from Iowa. If Ted Cruz were to become the Republican nominee there's no

question in my mind that the Democratic Party would try to cause hey of it and they would file lawsuits to try to chip away as a political tool to try

to hurt him.

In the end, I think that Ted Cruz will be fine. But I will tell you it's an issue that has ignited on the campaign trail and Donald Trump is

hammering home because he is locked in a tough battle for first place for this Republican nomination -- Hala.

GORANI: Mark, the reason we don't know the answer is why? Because this is a first that someone board abroad to an American mother is running for

president?

PRESTON: Correct. John McCain who was the Republican nominee back in 2008 was born abroad, he is born down in the Panama Canal Zone but born on an

army installation, OK, a U.S. military installation. So that was considered sovereign U.S. territory.

The whole idea it comes down to is he a natural born citizen and does it mean on U.S. soil or to an American parent and that is the big question

right now. A lot of people are certainly casting doubt about that and it is frustrating Ted Cruz to no end.

GORANI: And here's Ted Cruz by the way we heard him talk about New York saying we know what New York values are saying they're not conservative

values. He angered New Yorkers. You do not want to anger New Yorkers because then you get a front page like this.

The "New York Daily News," drop dead Ted, and here we have the Statue of Liberty giving Ted Cruz the finger which we have blurred. I'm not sure

why. Hey, Cruz you don't like New York values, go back to Canada. Not mincing words there. Is he regretting having said that do you think?

PRESTON: I don't think so. What happened was Ted Cruz in New Hampshire, I was there following him, told a radio host that Donald Trump embodied New

York values and he was trying to cast doubt on Donald Trump as being a true conservative.

[15:50:15]Now last night he was called to the carpet on that by Donald Trump who embodies everything about New York. When you think about New

York, you can think about Donald Trump, no doubt about that.

A lot of people think that Donald Trump got the better of him though, Hala, because he invoked 9/11 and talked about New Yorkers resolve.

However, I think if you take a step back, what Ted Cruz was trying to do is sending a message to conservative voters in Iowa which are going to vote on

February 1st, in New Hampshire voting on February 8th and in South Carolina.

A dog whistle to them that New Yorkers are liberals and Ted Cruz says he's not and Donald Trump is.

GORANI: All right, before I leave you, let's put the "New York Daily News" front page up again. That is the worst blurring job I've ever seen. I

wonder what that's trying to hide.

PRESTON: Someone is in trouble.

GORANI: Mark Preston, thank you. Have a good weekend. We'll be right back.

PRESTON: You too.

(COMMERCIAL BREAK)

GORANI: Astronaut Tim Peake made history today. He is the first European space agency astronaut to walk in space wearing the British flag. He and

U.S. flight engineer, Tim Copra, ventured outside the International Space Station to make repairs.

Their mission had to be cut short, though, because of a water leak in Copra's helmet. Both astronauts reentered the ISS safely.

Let's get more on today's ground-breaking mission. I'm joined by retired NASA astronaut, Leroy Chiao, from Houston, Texas. He's conducted six walks

in space, so he knows a thing or two about what these two astronauts went through.

So it must have been disappointing that Copra got water in his helmet, et cetera. But what were they -- describe to us how you feel when you're

walking in space for the first time.

LEROY CHIAO, SPACE FOUNDATION SPECIAL ADVISOR: Especially your first time it's a fantastic experience. It's surreal every time. But especially the

first time. You don't know what to expect because you have done a lot of training in the water tank and familiar with the suit, systems, air lock.

When you're up in space and open that hatch for the first time and you actually venture outside and get a helmet full of the earth and space

behind it, it's surreal is the only word that comes to mind.

Disappointment of course for these guys to have to terminate today, but at least they got the primary task done, replacing the one unit to bring the

station back up to full power.

GORANI: How is it because I understand they needed to be on pure oxygen before going back in for several hours before going back in? Why is that?

CHIAO: Well, we have pure oxygen in order to get the nitrogen out of our blood so when we go down in pressure, that we don't suffer what's called

the bends which would be nitrogen bubbles forming in your bloodstream.

In order to come back inside it's not so much a matter of having to come back inside because you're already on oxygen, but when you come back inside

you have to make sure your sinuses are clear and everything is OK as you re-pressurize. It's not so much of an issue of coming back in. It's more

for going out.

GORANI: When you train for the spacewalk, how does it compare to the real thing? I'm just trying to imagine how exciting it would have been for

these two guys.

CHIAO: Sure. Actually the training is very good. The water tank prepares you very well because it really creates the memory in your brain how the

sequence of events that has to occur and so you're very well trained on the order in which to do the tasks.

What you're not prepared for is what it feels like. In space it's nothing at all like in the water tank. The water tends to hold you in place and

let you cheat.

[15:55:12]But in space every little touch you start reacting and your body rotates in the opposite direction and gets you little bit to get used to.

GORANI: When you go on a space walk and then you sleep that night, it may sound strange, but do you dream of yourself in space?

CHIAO: Well, when you're in space, you know, sometimes when I was in space sometimes I would dream about being in space or being on earth and same

with being on earth. Sometimes I'll dream about being in space.

Probably after a spacewalk you might have more of a tendency about doing that spacewalk especially if it was a challenging one because you have been

thinking about it a lot.

GORANI: Very briefly, I wonder, for me it would be the most terrifying thing in the world. Are there any times when you're -- when it's scary to

be out there weightless?

CHIAO: You know, I wouldn't use the word scary. I would say is that I had a very heightened sense of awareness. I was hyper aware of everything I

did just to make sure I did not come disconnected.

GORANI: All right, Leroy Chiao, thanks very much. Appreciate your take. It's great to speak to someone who has been out there six times as well.

Thank you so much from joining us from Houston, Texas.

This has been THE WORLD RIGHT NOW. I'm Hala Gorani. I'll see you Monday. Do stay with CNN. A lot more ahead. "QUEST MEANS BUSINESS" with my

colleague, Max Foster, is up next.

(COMMERCIAL BREAK)

END