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Grief and Fury in Baghdad After Deadly Bombing; Authorities: Bangladesh Attackers Were Homegrown Terrorists; Japan Sends Terror Experts to Dhaka in Response to Attack; Arrests Made in Istanbul Terror Attack; What Reconciliation Means for Turkey, Israel; Deadly Flooding in China; Federal Elections Fail in Australia; Rio's Mayor Says City Ready for Olympics; Fairytale over for Iceland in Euro 2016. Aired 1-2a ET

Aired July 04, 2016 - 01:00   ET

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

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[01:00:10] NATALIE ALLEN, CNN ANCHOR: Grief and fury in Baghdad after ISIS claims responsibility for one of the city's deadliest bombings in years.

Authorities in Bangladesh say homegrown terrorists were behind a cafe attack that killed many people visiting the country.

And Australia's federal election is going right down to the wire with a hung parliament looking like a real possibility.

Hello. Welcome to our viewers around the world. This is "CNN NEWSROOM". We're live in Atlanta. Thank you for joining us. I'm Natalie Allen.

A bold attack in a busy shopping district in Baghdad is one of the deadliest there in years, and ISIS is claiming responsibility. At least 125 people were killed when a suicide truck bomb blew up in the Karrada neighborhood Saturday night. 25 of the victims were children. Families had gathered there as they broke the fast for Ramadan. One witness barely escaped the bombing and described the scene for us.

(BEGIN AUDIO CLIP)

MOHAMMED JOSIM, BOMBING SURVIVOR: Currently, actually right now I'm standing in the rubble of the building of the (Inaudible), the mall that was bombed. I was about five to 10 minutes away. I was just actually -- inside the mall, there is this coffee shop that I was sitting in. And we were sitting with a group of friends. And one of them decided that we need to change our location because he was craving a different kind of coffee or food. And he kept nagging.

Fortunately for us, his nagging actually saved us. Because as soon as we left the building, as soon as we got into the car and were about to pull away, the bomb went off. And it was -- it's weird because it wasn't as loud as you would expect it. However, the fire, what was very devastating. As soon as we heard it and saw the light, we came out of the car and ran back because we actually have relatives and friends inside.

I actually lost a family friend with his two kids unfortunately, a son and a daughter who whose bodies are still not yet found. There is a candlelight vigil right now going on near the building. And bodies are still being taken out. Piles of ashes are being escorted out of the building in hopes of trying to figure out who the bodies belong to, or who these ashes belong to.

(END AUDIO CLIP)

ALLEN: Mohammed Josim who just escaped that bombing. A second bomb Sunday killed one more person in another area of Baghdad. Jomana Karadsheh joins as now. And Jomana, this horror for the Iraqi people seems never to end, and this, one of the deadliest strikes in many years for them.

JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Natalie. We're talking about violence in that country that has become a daily reality for more than 12 years now. There are bombings that take place around Baghdad, in other cities. People have gotten used to this kind of violence on daily basis. But this kind of attack, this attack of this magnitude, we have not seen in Baghdad in years.

And I remember U.S. and Iraqi officials back in 2010 and 2011 in the lead-up to the U.S. withdrawal from Iraq where really saying that this was a success, that they could no longer see what they were calling these spectacular kind of bombings taking place in the Iraqi capital.

About 18 months ago, I had a tour with an Iraqi general around checkpoints in Baghdad. And he also was saying that they no longer see these large scale attacks taking place inside Baghdad. They say that because of the security measures they had in place, that the terrorists were not able to bring in a large amount of explosives without detection inside the city.

So really lots of questions about how this happened. And of course, the human tragedy here. It is just unbelievable, Natalie, just in the last hour. I was taking a look at my social media accounts on Twitter. And the feed was just full of pictures of women, children, families that have been lost in this attack. We've seen massive attacks taking place in Baghdad recently but this really has really shook this nation.

125 people killed in a single attack. And more than 140 others wounded. We're talking about people who've lost limbs in this attack. Truly devastating in a country where not a single Iraqi I know hasn't lost someone to the violence that has become this daily reality, Natalie.

ALLEN: It's just surreal for those of us watching it from afar. And one of the analysts I talked with last hour said they were hoping that this couldn't happen now because ISIS has been pushed back more there in Iraq but it has.

[01:05:09] So there has to be a lot of questions from the people to their government what they can do to stop this. KARADSHEH: Well, it's a couple things here, Natalie. One, of course, this was the fear. As ISIS starts losing territory, that it will revert back to the kind of tactics that we saw its predecessor, al Qaeda in Iraq do, the kind of high profile bombings, these sort of attacks that we haven't seen taking place in Baghdad in years. That the attention would be focused again on Baghdad to try and distract the Iraqi security forces from the battlefields in western and northern Iraq.

So this has always been a concern. And now of course the fear is what comes next. Are we going to be seeing more of these attacks? This is definitely on the minds of so many Iraqis right now. Now the anger at the government here, Natalie, we saw this yesterday with people on the scene really hurting rocks at the convoy of the Iraqi prime minister as he showed up to inspect the scene. The anger, this frustration against the Iraqi government is because of the explosive detector, Natalie, that is still being used in Iraq up until yesterday -- up until the bombing. They used what they describe as this wand, basically.

When cars go through checkpoint, if a car is flagged because of this explosives detector, it is taken to the side and it's inspected. The problem with this explosives detector is that back in 2010, its -- in 2013, its manufacturer in the United Kingdom was sentenced to 10 years in prison for fraud. And most countries that he sold this fake bomb detector to have withdrawn it off the streets.

But in Iraq they were still using it. And people blame the government for attacks like this saying it's because they're still using this fake bomb detector, which they also blame on government corruption. They say that this is how these bomb detectors ended up on the Iraqi streets and are still being used. That is why late last night we heard a statement from the Iraqi prime minister ordering the removal of all of these devices off the streets and relaunching the investigation into corruption and the deals that led the Iraqis to use these detectors.

Again, end of the day, it is this kind of chaos, this kind of anger that we're seeing is perhaps what ISIS is trying to achieve with attacks like this. It does thrive in this kind of environment, unfortunately.

ALLEN: Very, very sad. Jomana Karadsheh for us there. Thank you, Jomana.

Saudi authorities are investigating a suicide blast near the U.S. consulate in Jeddah. State news sites officials who say early Monday morning police approached a man wandering in a hospital parking lot. He was suspicious to them. He then detonated himself with an explosive belt. The bomber died in the blast. Two police officers were taken to the hospital, but with just minor injuries. The parking lot of the hospital is about 10 meters from the U.S. consulate wall.

Turkish authorities have arrested two suspected ISIS militants at Istanbul's Ataturk Airport. State media reporting the men flew in from Ukraine on Sunday. They apparently had multiple passports, military items, and I.D. cards belonging to other people. Their arrests come just five days after the deadly terror attack at this airport. 44 people being killed in that massacre.

In Bangladesh, mourning continues for the victims of Friday's terror attack in Dhaka. Gunmen killed 28 hostages and two police officers at a restaurant in the diplomatic zone. ISIS has claimed responsibility for the attack. But Bangladeshi officials say it was carried out by homegrown militants.

For more on the situation, let's join Sumnima Udas. She is in New Delhi. Sumnima, people in the capital are now paying their respects to the victims. What's going on specifically?

SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT: That's right. As we speak there is a tribute ceremony being held in the stadium, an army stadium outside of Dhaka. The prime minister of Bangladesh Sheikh Hasina is there. Several envoys, ambassadors from all the embassies in Bangladesh, they are there as well.

And there's also thousands of people. We saw images earlier, thousands of Bangladeshis trying to sort of walk in through that main gate also trying to pay tribute to the victims of this tragedy. We're getting to know a little bit more about the victims now. And in some of those pictures you see, the army personnel carrying coffins, coffins wrapped up in the American flag, Bangladeshi flag, Indian flag as well, Japanese flags as well. Really heartbreaking scenes.

[01:10:01] And the stories that are coming out in the local media, Natalie, there was a young boy, a student from Emory University with his two other friends, another student from Emory and a student from University of California and at Berkeley. They were having dinner. At some point the terrorists told the boy, that the man that he can leave. He is free to leave. But he decided to stay on to be with his friends. He died shortly after that happened.

There is also an Italian lady. She was seven months pregnant, due to return back to her country to deliver her baby. She died.

There is a Japanese lady who just been engaged. She was going to get married soon. She died as well.

So heartbreaking stories coming out now, you know, in the local media. But also Bangladesh is a -- or Dhaka at least is a small city in terms of -- not in terms of the population, but everyone knows everyone, really. And a lot of people have been talking about these -- the victims and also those who -- the attackers as well, Natalie.

ALLEN: What are we learning about these attackers, Sumnima?

UDAS: Well, the main -- the one surviving gunman, he has been injured. And he is no condition to talk to the authorities, explain where they're coming from and why they did this. But, again, because Dhaka is such a -- is a small society there where everyone knows everyone, as soon as the local newspapers came out with a pictures of those attackers, there was several people who recognized some of them. They were a friend's cousin or a cousin's friend. But what really stands out, and what Bangladeshis are now talking about is the fact that these were such ordinary guys. They were wearing their jeans and their t-shirts, many of them were educated. They had gone abroad even to university, some of them in Malaysia. This is according to local media. They spoke English, according to an analyst, they had Facebook pages. They had -- they played sports.

So, such ordinary guys from Dhaka. And that's something authorities have confirmed that they are indeed from Dhaka. That's really what shocked most Bangladeshis. How can these guys who came from such backgrounds be radicalized in this way.

Again remember, Bangladesh is a country, fourth largest Muslim population in the world. But the Islam that they follow, the version of Islam is more moderate. It's the Sufi version. So this kind of radicalization is not something that people are really aware of in the country or talk about. So that's really what has stunned most people in Dhaka today, Natalie.

ALLEN: And understandably so because such vicious killings of these people just out at the restaurant. It's such a heartbreaking detail about that young man who wouldn't leave his friends. Thank you. Sumnima Udas for us in New Delhi.

The next political battle in the U.K. is heating up. Ahead here, we'll have a live report who is leading the race to replace the prime minister.

Also, the fallout over Brexit is trickling down to small businesses in Scotland. But a distillery owner says he is not going anywhere, nor is his scotch.

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ALLEN: There is disagreement, to say the least, among the UK's leading conservative candidates about how to exit the European Union. Five people are running to replace Prime Minister David Cameron. Front-runner Theresa May, seen here in the center, campaigned to remain in the E.U. She says Britain should not be rushed into negotiations, but rival Andrea Ledsome seen on the left favored leaving and says Britain should get a grip and make progress.

CNN's Isa Soares joins us live from Downing Street with the twists and turns and duking it out in this election process which I guess is officially just getting under way.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: It is indeed. Good morning to you, Natalie. It now begins this week in full, in full earnest, really. And we're expecting votes to start on Tuesday. That's the first tally that MPs will then vote. And it will be every Tuesday and Thursday until it is whittled down to two candidates. And then it goes to a vote of the conservative party that will choose who then takes that job.

And whoever takes it, some will say is a poise and chalice, Natalie, because the amount of work they have to go through is quite something. Not only do they have to go through the whole Brexit. They said Brexit, what we had from Theresa May, but they also have to try and give a voice to investors to allay fear others the economy, try and unite not just the Conservative Party, which we know has been in turmoil for two weeks or so but also the countries, Scotland, Wales and the rest of the country pretty much divided on this Brexit referendum.

We have been hearing this last couple of days from the five candidates, all setting up their stalls, their pictures for why they should be the main candidate. We heard from Theresa May. She is the one that has come out the strongest, according to media reports. She's got the most support from many MPs. They say that she is going to be the front-runner, the one to beat. That's mostly because we've seen the divisions between Michael Gove and Boris Johnson, Natalie. They're what many people are calling a "game of thrones" scene with between Michael Gove going behind the back of Boris Johnson, and many say betraying him.

But let me just give you a bit of context, Natalie, in terms of what Theresa May said. She was speaking to a weekend program here in the U.K., a politics show. And she basically said, we heard her before saying Brexit is Brexit. But she also said she wants to be more than just a Brexit prime minister.

The reason she is saying that, as you know, as our viewers will know she has always said she was a "remain" -- she was from the "remain" camp.

[01:20:05] And now Michael Gove wasn't reelection, they're basically saying if we're going to is a prime minister, it needs to be a prime minister that voted for Brexit. But she said, "I can unite the country. I'm the person to do it." And that's one of the main candidates that is hoping to get the Conservative Party leadership. Natalie?

ALLEN: It's going to be a long summer there as this plays out, to say the least. Isa Soares for us there outside 10 Downing Street. Thank you Isa.

But in the related story the market for Scottish food and drink is worth 733 million British pounds a year. Now many small business owners are worried about the future after the UK's vote to leave the E.U., a vote Scotland did not support. David McKenzie shows us how Brexit could impact one of Scotland's most treasured exports.

(BEGIN VIDEO CLIP)

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Even in mid summer, it's chilly in the hills of Pitlochry. So for centuries, farmers have been tapping these springs, crafting heartwarming scotch.

ANDREW SYMINGTON, EDRADOR OWNER: This is a huge, things starting here. You know.

MCKENZIE: Andrew Symington owns and runs Edrador, the smallest distillery in Scotland. The majority of his fine single malt is exported to Europe. In the common market, shipping his bottles to Berlin is as easy as sending them down the street.

SYMINGTON: We understand it's better to be in, being a small country in a big pond is much better than being outside. You know.

The stills are running, right?

It's looking good. It's looking good.

MCKENZIE: The Scots voted overwhelmingly to remain in the E.U. But they could be forced out. Symington says it's bad for business.

SYMINGTON: The big multinationals are in a far better position to handle it. In fact some could move completely and keep their headquarters still in the E.U.

MCKENZIE: Of course, you only make Scotch in Scotland. So Edrador isn't going anywhere. And hassle-free access to 27 European countries is critical to their future.

SYMINGTON: And here's distillery building on this front there.

MCKENZIE: Symington was banking on stability, investing nearly $7 million in expansion plans.

SYMINGTON: I'm making a ton of small but run stability and I saw the change, but and anything major might put a dent in that, you know.

MCKENZIE: But he has to play the long game. Single malt mattering and bourbon, cherry and burgundy casks for at least a decade before going to market.

SYMINGTON: So there we have it.

MCKENZIE: He is simply Edrador's custodian for the next generation. David Mckenzie, CNN, Pitlochry Scotland.

(END VIDEO CLIP)

ALLEN: And the European Union has been helping to prop up one small Welsh town for 15 years. And yet it voted to leave. Our Phil Black traveled to Wales to find out why.

(BEGIN VIDEO CLIP)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Ebbw Vale in Southern Wales, a small town in a region known as the valleys. Here communities were once built around coal mines. They closed decades ago. So did everybody steel plant. And tough times followed poverty, unemployment.

For many, the loss of hope. That's why the European Union took an interest. Peering through the gray mist and sideways rain of a Welsh summer day and you see the E.U. flag everywhere. It's often close to new buildings and infrastructure the E.U. has helped pay for, like this huge sport and education center. A new train line, or major new road.

The E.U. money also helps people with job training and apprenticeships. All at the E.U. has contributed around 145 million pounds to this local area over the last 15 years.

Do you think people here know the E.U. pumped a lot of money into the town?

UNIDENTIFIED MALE: Yes, oh, yes, they know that.

BLACK: They voted out anyway?

UNIDENTIFIED MALE: Yes, yeah.

BLACK: It's a contradiction not easily explained. This area voted for Britain to exit the E.U. by a whopping 62 percent, despite being a net beneficiary. It gets back a lot more money than it contributes.

UNIDENTIFIED MALE: There is a lot of money that comes here from Europe.

BLACK: A lot of money?

UNIDENTIFIED MALE: Yeah.

BLACK: Where is that going to come from?

UNIDENTIFIED MALE: That's the question.

BLACK: But? Do you think the people have shot themselves in the foot?

UNIDENTIFIED MALE: Well, I voted out. And I've got me doubts now.

BLACK: In the crossing cafe, Deborah, Jane and Avril have been listening to customers talk all things Brexit for months. They know the E.U. spends big money here, but they still want out. You know they made a difference here.

UNIDENTIFIED FEMALE: Yeah, yeah.

BLACK: Do you think they have the-- would you tell me. What do you think it's helped?

UNIDENTIFIED FEMALE: Well, they have. But I think a lot of it has been spent on things that we could have done without, could have been spent in different ways.

[01:25:06] BLACK: Deb Phillips, a customer and Brexiter agrees. It's about control.

DEB PHILLIPS, BREXITER: Sick of being told where the money is going to be spent.

BLACK: Over coffee, Allen Jones, who voted to stay predicts a new obvious problem. He says the E.U. investment won't be replaced equally by the British government.

ALLEN JONES: A stupid thing to do because if you are -- once you go, this money is gone.

BLACK: But here in Wales, as with many places across the U.K., money and the economy were not deciding factors in how many people chose to vote.

UNIDENTIFIED FEMALE: Out.

BLACK: What was the thinking there?

UNIDENTIFIED FEMALE: About them ruling us instead of ruling ourselves.

UNIDENTIFIED FEMALE: Out.

BLACK: Tell me why.

UNIDENTIFIED FEMALE: Well, immigration, I suppose.

BLACK: Change, sovereignty, border control. The referendum showed these things mattered more to people in this struggling town than the EU's effort to improve the quality of their lives. Phil Black, CNN, Ebbw Vale Southern Wales.

(END VIDEO CLIP)

ALLEN: Seven Japanese citizens are among those killed in the Bangladesh terror attack. Up next, hear how Tokyo is responding to the tragedy. We'll have a live report. Plus, there has been a spike in crime in Rio de Janeiro just one month before the Olympics. But hear why the city's mayor says there is no need to worry.

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ALLEN: And welcome back to our viewers. This is CNN NEWSROOM live from Atlanta. I'm Natalie Allen.

[01:30:00] Let's check our top stories for you.

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ALLEN: In Bangladesh, the prime minister has paid tribute to the victims of Friday's terror attack. She was among a crowd of thousands at a memorial ceremony with the 20 hostages and two police officers killed at the cafe there in Dhaka. The victims came from Italy, Japan, India, Bangladesh and the U.S. Seven of the people killed in Bangladesh were Japanese, and Japan is

sending terrorism experts to Dhaka in response to the attack.

Our Matt Rivers joins us now from Tokyo with more on the reaction there.

Matt, hello.

MATT RIVERS, CNN ASIA-PACIFIC EDITOR: Hello, Natalie. Yeah, the Japanese had sent a team of terrorism experts to help in that investigation in Dhaka, along with the vice foreign minister of the country. That team had arrived in Bangladesh ahead of the families of those people who had died. The families of the people who had died and were injured took a flight here yesterday evening local time in Tokyo, and arrived this morning in Bangladesh. And we're told that some of those families have already made their way to some of the hospitals where their loved ones' remains are being kept. Now some of the families have made that very difficult trip this morning already. Others are expected to do that by the end of the day today. There is also reports that those families might actually have the opportunity to visit the cafe, the bakery where this happened, if they so choose. We can't firm that information. But there is local reporting suggesting that that might happen.

But we are learning more about the victims of this attack. The eight people that were involved, seven who were killed and one who was injured that were Japanese were there as a part of a mission for the Japanese International Cooperation Agency. That is a governmental agency here in Japan that assists developing countries in development projects. So this team was there actually to help improve the traffic flow in Dhaka. That's a city that is experiencing the boom in population. So they're there to try and make the lives of ordinary people in that city better, and yet this is what they had to go through. Just incredibly tragic.

One victim, 32-year-old Makoto Okamoto, was there as part of the team. His father and grandmother spoke to local media here in Japan yesterday before they went to Bangladesh. Here is what they had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translation): He was very proud of his work as he could work hard for the country and development. Everybody loved him. He is a good man.

UNIDENTIFIED MALE (through translation): He was a very, very good boy. I really hoped the news was wrong. But now I cannot do anything.

(END VIDEO CLIP)

RIVERS: And that man these families are going through what I imagine a lot of families around the world are going through after what we saw in Baghdad and Istanbul and now add Dhaka to the mix. It has been a very difficult week for so many families across the world.

ALLEN: Absolutely has been. And yes, that flight that they're taking to Bangladesh, how very, very difficult for those families. I cannot imagine.

Matt Rivers for us live in Tokyo. Thank you, Matt.

Turkish authorities are investigating more than two dozen people in connection with last week's terror attack at the Istanbul airport. State media report 27 people have been detained now. About half of them faced a judge on Sunday.

Here's Nima Elbagir.

(BEGIN VIDEOTAPE)

[01:34:51]NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: Quite early on in the investigation, Turkish officials told CNN that they believed that this attack was planned, overseen and commissioned inside the sources, and it appears that they are targeting both foreigners and Turkish citizens in this latest round of arrests, trying to ascertain the extent of the support network that was involved in bolstering the actions of the three suspected foreign attackers. This comes as, in spite of the nation's continuing state of high security alert, the Turkish president had some good news for the 2.6 million Syrian refugees seeking refugee in the country.

RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT (through translation): Tonight, I want to give some good news to my brothers and sisters here. Among our brothers and sister, I believe there are those who would like to obtain citizenship in the Turkish republic. Our interior ministry is taking steps in that regard.

ELBAGIR: This, of course, is in direct contradiction to the concerns espoused by many of Turkey's European neighbors that within the flow of Syrian refugees could potentially be hiding Syrian terrorists, or those masquerading as Syrian terrorists.

For now, though, even as his country continues to reel, not just from Tuesday's attack, but months of terror outrages, Turkish president is bargaining on reality that this will not make his country even more insecure.

Nima Elbagir, CNN, Istanbul.

(END VIDEOTAPE)

ALLEN: After several years of uneasy relations, a Turkish aid ship is now docked at a port in Israel. Its target is bound for Gaza. Turkey and Israel last week put aside their differences over a deadly raid on a Turkish aid ship back in 2010.

CNN's Oren Liebermann explains what the reconciliation means for these two countries.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN CORRESPONDENT: A Turkish ship called the "Lady Leyla" carrying aid for Palestinians has docked in Israel on Sunday afternoon bound for Gaza. It's a sign of warming ties between Israel and Turkey after the two countries signed a reconciliation agreement last week, normalizing relations between the countries. The supplies on board the "Lady Leyla" filling more than 42 containers include humanitarian and medical supplies, as well as toys, according to Israel's foreign ministry. The ship left Turkey on Friday. And the first of the supplies will cross into Gaza tomorrow, the ministry said.

Israel and Turkey have had strained ties for six years now following the Israeli raid on the Turkish Gaza bound ship. Nine Turks were killed in the raid. Israel said the ship vial late Israel's blockade of Gaza, and the Israeli commandos were attacked with knives and other weapons when they boarded the ship.

Prime Minister Benjamin Netanyahu apologized for raid in March of 2013. But the apology didn't really thaw relations. Last year, Israeli and Turkish negotiators began meeting in secret on a reconciliation deal. The final deal signed last week included a $20 million compensation fund for the families of those killed in the raid. The two countries also agreed to return ambassadors to Ankara and Tel Aviv and begin discussions about the sale of possible natural gas from Israel to Turkey.

Oren Liebermann, CNN, Jerusalem.

(END VIDEOTAPE)

ALLEN: Parts of southern and eastern China are suffering flooding that has caused 50 deaths and destroyed all kinds of housing for people.

And Pedram Javaheri is following that story for us.

PEDRAM JAVAHERI: This is a story that has progressed the last couple of months. We know it's the rainy season. And typically, Natalie, the beginning of July, you begin to see some of these major populated areas across northern and eastern China. It's just culminating right now, what's happened here. The picture is really astonishing when you take a look at what looks lying right here on the image. The left- hand side might as well be the river. You see how much river as inundated portions of eastern China. This is out of Wuhan, to give you a perspective of the scale. We always say 100, 200. West of Shanghai in this case, in two days, they picked up about 200 millimeters of rainfall. Now on the left side of your screen, that is the observation for London, how much rain they see in five months. About 200 millimeters in rainfall. In two days they picked up what London sees in a five-month span. It's a remarkable amount of rainfall we're talking about that has caused all this mess and notice climatologically speaking right there, the first week or so of July, you get from Shanghai towards Beijing. That's when the heaviest rainfall, the seasonal rains will migrate toward this region. The models do a fantastic job of laying the land with rainfall from the Korean peninsula, west towards Shanghai, around the areas of Wuhan where we saw this heavy rainfall in recent days. This is going to continue for at least several more weeks across the region. And the images continue coming in of what has transpired. This is the front we've touched on in the past when it comes to the plum rains. The ancient Chinese many, many hundreds of years ago would tell you any time you began seeing consistent rainfall beginning in the month of may, actually that would last around 40 days. That means it would be time to harvest the plums.

You might recall, if you watch CNN International frequently, that we haven't talked about a tropical storm, a named tropical storm in the Western Pacific Ocean. This is in fact the historic drought that is in place. The last time we had one, up until Sunday, was 200 days ago, if you're counting. That's December 9th of 2015. The last time we had a named tropical storm. Here comes Nepartak (ph). Over the next two to three days, it begins to work towards places potentially outside towards Okinawa, maybe Taipei, Shanghai, major metropolitan areas. Now we're talking about a potential category 3 equivalent storm by later this week and first of the year as well.

[01:41:05] ALLEN: It's getting going. And it's getting going with a vengeance.

Pedram, thank you.

JAVAHERI: Thank you.

ALLEN: Coming up here, France has booked a spot in the Euro 2016 semifinals. We'll have details on their crushing win over little Iceland, ahead here.

Plus, Australia's federal election remains a nail-biter with no clear winner. We'll go live to Sydney for the latest on the results.

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ALLEN: Canadian Prime Minister Justin Trudeau marked a first on Sunday. He marched in Toronto's Pride parade. That's a first for a sitting prime minister in Canada. Mr. Trudeau said he has been coming to the event for years. And having a prime minister march should not be a big deal. He posted photos on Twitter, #prideto.

Australia could face a hung parliament after the federal election failed to produce a clear winner. A handful of crucial seats remain in doubt.

For the latest now, let's bring in Sky News Australia reporter, Laura Jayes.

It's certainly a cliff-hanger, Laura.

[01:45:17] LAURA JAYES, REPORTER, SKY NEWS AUSTRALIA: It certainly is. It is looking like it could be a hung parliament. You're tacking about a country that has had five prime ministers in five years. Two years we had a hung parliament with a minority government. So this is what some on the Liberal side are saying is the worst possible outcome. But these were severely underestimated as well, many on the Liberal side. On the Conservative side of politics thought that they would be a comfortable win here. They held a 19-seat majority. So they've squandered that majority in this the last coupe of weeks you. To say with the two leaders and the way they campaigned, well, there was a small target strategy run by the prime minister. On the Labour side more risks, he was out campaigning to the bitter end. And he certainly out-campaigned Malcolm Turnbull that is the analysis coming through.

One of the things to note is what we call here scare campaigns. It's centered around from the Labour side the talk about universal health care. And what is known as Medicare health system. Well, there is a scare campaign being run with the Labour Party was saying that the government was going to privatize Medicare. And that is absolutely not on the cards. It was ruled out many times. And it was only every talked about privatizing the back room office. It just shows you it can be a very effective campaigns. Negative advertising on both sides. There is also should be noted this election campaign that 25 percent of Australians were looking to the minor parties alternative parties than just the two big ones. And that vote, that share of the vote seems to be increasing.

ALLEN: I'm also curious, Laura. Has the Brexit vote in any way had an impact on voter there's in Australia this election?

JAYES: Well, it's funny you mention that. The opposition leader, Bill Shorten, today was calling Malcolm Turnbull the David Cameron of the southern hemisphere, saying quote/unquote, "that Malcolm Turnbull had Brexited himself during this campaign." He is good with the one- liners, but more seriously, the Brexit vote, which us in London just three days ago. I traveled back to Sydney just to be here in time for the election. And I was covering a Brexit vote the last week there is certainly a mood for change. There seems that there is a protest vote. And this is what we saw in Brexit, against the status quo, against the political elite. And I do think there ask some element of that here in Australia. But more broadly, the Brexit vote and how that played into the instability we've seen on the markets and the political class in the united kingdom, well, conventional wisdom would tell you that that kind of trigger of instability should actually benefit a coalition Conservative incumbent government in Australia because that conventional wisdom tells us when there is a bit of uncertainty, people tend to stick with the devil you do know rather than the devil you don't. But it doesn't seem like Malcolm Turnbull capitalized on that. It doesn't seem like it's gone that way. The few strategists scratching their heads with what went wrong with the internal polling and their strategy it would seem.

ALLEN: Laura Jayes, from Sky News Australia, we'll have to wait until Tuesday or the week after that to find the outcome.

JAYES: Maybe beyond.

ALLEN: Thank you so much. Thank you.

Iceland's adventures at Euro 2016 have come to an end. We'll tell you how the host nation ended their dreams of sporting glory, just ahead here on CNN NEWSROOM.

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(WEATHER REPORT)

(COMMERCIAL BREAK) [01:52:45] ALLEN: The 2016 Olympic Games are just one month away. And Rio de Janeiro's mayor says his city will be ready, despite what he calls the terrible security situation. He blames the state governor for that.

But he tells CNN's Shasta Darlington he is confident Rio will be safe for the games.

(BEGIN VIDEOTAPE)

EDUARDO PAES, MAYOR OF RIO DE JANEIRO, BRAZIL: It's going to be the national force, the army, the navy. Everyone is going to be here. So as you know, this is not a city responsibility for Brazil. It's a state responsibility. I think they do a terrible job on security. They do a terrible job before the games and after the game. Fortunately, they're not going to be the ones responsible for security during the games.

SHASTA DARLINGTON, CNN CORRESPONDENT: I think you raise a valid point there is also the question of residents. Police aren't getting paid. Crime is rising. Do you worry your citizens, especially the most vulnerable, could be abandoned during the Olympic Games when everybody is taking care of the tourists?

PAES: I'm not worried about them being abandoned on the games time. I'm worried about them being abandoned every day, on the everyday life. This is the most serious issue in Rio. And the state is doing a terrible job there. That's completely been failing, and its work of police taking care of security and the states.

DARLINGTON: One of the big problems has been Zika. Athletes have been cancelling. Do you think you might be underestimating the impact that the fear over to the Zika Virus is going to have on the games?

PAES: I don't think so. Actually, what is happening, exactly on the contrary. People are overestimating what could happen. At this time in Rio, if you are American, please don't go to Florida. You've got more cases of Zika in Florida than what we have now in Rio. I'm not saying there is not a problem. It is a problem that we have to face. But as we always said, especially during this time of the year, it's wintertime in Brazil in Rio. So the weather gets better. So the spread of the mosquito, it gets better. So we don't have much case of Zika now.

DARLINGTON: I live here in Brazil. I live in Rio. I'm rooting for these Olympics to work. It seems like every time something can go wrong, it does. And even more, how are you going to get people excited about these games?

PAES: These are the kind of problems you face in the U.S. There was a kid in the lake in Disneyland and Disney World, and then the crocodile comes up, eats the kid, you know. There is a crazy guy, American guy that goes into a gay disco and shoots, I don't know, 40 people. Problems happen everywhere. Obviously, when you become Olympic city, these problems, you know, they rise.

(END VIDEOTAPE)

[01:55:20] ALLEN: Shasta Darlington with the mayor of Rio there.

The fairytale is over for Iceland's football team after France knocked them out of Euro 2016. The host country crushed Iceland, 5-2 to advance to the semifinals.

Here is CNN World Sport's Amanda Davis with the details.

(BEGIN VIDEOTAPE)

AMANDA DAVIS, CNN WORLD SPORT CORRESPONDENT: The party has started here in Paris. Host Transhas (ph) booked their slot into the 2016 semifinal. And obviously it proved a step too far for everybody's new favorite team Iceland. Comprehensively beaten.

CNN's analyst, two-times champion winner, Owen Hargreaves, with me.

Owen, it's fairly hard to argue with that.

OWEN HARGREAVES, CNN ANALYST: I believe it's an incredible journey. They deserve a ton of credit playing to the level that they have. But I think France has the better players and they showed us today what an incredible performance, performance from France. I think they gave all these fans something to cheer. I think Iceland can leave this tournament with their heads held high after a terrific tournament made their country incredibly proud.

DAVIS: Yeah, absolutely. It's France who will take on Germany, a match that would actually be worthy of the title decider itself. It's Iceland heading home, having written themselves into the history books and the hearts of football fans everywhere.

But from Owen Hargreaves and myself, Amanda Davis, here in Paris, it's back to you.

(END VIDEOTAPE)

ALLEN: I'm Natalie Allen. Thanks for watching.

Another hour of CNN NEWSROOM is next with Rosemary Church.

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