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Votes Shake Up Political Landscape In Europe; Italian Prime Minister Matteo Renzi To Resign After Referendum Defeat; Van Der Bellen Wins Austrian Presidential Election; U.N. Security Council To Vote On Aleppo Truce; California Warehouse Fire Kills At Least 33 People; 11 Dead, 75 Injured in Pakistan Hotel Fire; Trump Preparing to Shake Up U.S./China Relations; Castro Laid to Rest in Cuba; Brazilian Families Lay Loved Ones to Rest Following Plane Crash. Aired 1-2a ET

Aired December 05, 2016 - 01:00   ET

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

[01:00:00] NATALIE ALLEN, CNN NEWSROOM ANCHOR: a gamble did not pay off, Italian Prime Minister Matteo Renzi announced of his resignation after his effort to reform the constitution fails with voters.

CYRIL VANIER, CNN NEWSROOM ANCHOR: No right turn for Austria as nationalist candidate Norbert Hofer is defeated in his bid for the presidency.

ALLEN: Also, searching for victims and for answer, dozens of party goers are dead after fire guts a warehouse in California.

VANIER: From CNN world headquarters in Atlanta, welcome to our viewers around the world, I'm Cyril Vanier.

ALLEN: And I'm Natalie Allen, CNN NEWSROOM starts right now.

VANIER: Political changes are coming in Europe after two major votes on Sunday and they give us a better idea of where the populist movement might be headed.

ALLEN: First, in Italy, Prime Minister Matteo Renzi said he will resign after losing a constitutional referendum he thank the supporters for standing by him.

(BEGIN VIDEO CLIP)

MATTEO RENZI, ITALIAN PRIME MINISTER, (through translator): I thank my colleagues for the extraordinary adventure. We know that together, and the president of the republic will have a meeting with me, and I will give my resignation. I will hand in my resignation.

(END VIDEO CLIP)

VANIER: Meanwhile in Austria, voters cited with the E.U candidate, Alexander Van der Bellen over far-right contender Nortbert Hofer. The new president elect says his message is one of hope.

(BEGIN VIDEO CLIP)

ALEXANDER VAN DER BELLEN, PRESIDENT-ELECT OF AUSTRIA: It is not an exaggeration if I say that today, we see a red, white, red, you know, the flag of Austria. A red, white, red signal of hope and change. A red, white, red signal today goes from Austria to all of the capitals of the European Union.

(END VIDEO CLIP)

VANIER: And despite that result in Austria, far-right leaders in Europe are touting Renzi's loss as a victory. Our CNN Money Europe Nina dos Santos joins us live from Milan. Nina, about the Italy referendum, my question is this, why would Italians reject a referendum that makes their country more stable as this was supposed to do in passing laws easier and less costly?

NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Well, understanding the (INAUDIBLE) complexities in the Italian political world that requires some time of explanation. I probably don't have enough time the exact minutia, but worldly speaking, this is a situation so that we've seen in Britain. One voted in favor of leaving the E.U. and its Brexit referendum. David Cameron fell on his orders as a result of that. And many people across Italy this morning will tell you that the big mistake Matteo Renzi made was making this personal. That was when he said he would resign if the country rejected his proposed changes to the constitution, which is (INAUDIBLE) points out, was supposed to try and kick start things across this economy. It has been stagnant for so many years.

And boy, did they come out in the numbers to reject those changes that he was proposing. Let me bring you up to date with the figures on turnout. This is a 70 percent turnout in this referendum. It's a larger turnout than some of the general elections that I've covered in this country. And only 40 percent of those who voted said they would back Matteo Renzi in these changes. 60 percent of them rejecting the proposed changes to the constitutions that he was advocating, so he had to go because those numbers were so great.

VANIER: With Renzi now stepping down, what happens firstly?

DOS SANTOS: Well, immediately, it's probably going to be a period of instability and inertia, political stasis, if you like. This is a country that is not set to go to the polls before 2018 at the earliest. So, what we're likely to see later on today, Cyril, is Matteo Renzi formally handing in his resignation to his cabinet colleagues, and then the president will have to take charge of the situation to find a caretaker prime minister who can come up with some kind of caretaker government to keep this country - keep this country going on with its natural course of constitutional reform, because it already has passed one constitutional law.

This was the second part of the constitutional package which is needed to then call fresh elections in 2018. So it's a very complicated situation. And the real concern here is though this is a country that's in the middle of a big economic and banking crisis. Between now and 2018, anything could happen. And they won't have a strong enough government investors are concerned, especially here in the Milan stock exchange. They won't have a strong enough government to try and deal with some of the waves that could buffet Italy's economy between now and the next year and a half.

[01:05:03] VANIER: Nina, can you tell me a little bit more about that, the risk to the economy for Italy? I know the banks are particularly vulnerable.

DOS SANTOS: Yeah. That's right. And a number of those banks are listed on the stock exchange, which is the big building behind me. In fact, all around us in this square, we had the headquarters of the biggest banks across the country. And a number of these banks, some of them, the oldest banks in the country are facing significant capital shortfalls. The problem Italy has is that with the second highest bit load across the Euro zone, it can't really bail out these banks, A, because it can't afford to, and B, because Brussels has changed the rules. So, Italy is unique in the sense that it has a lot of retail investors. Mom and pop save us here who have put all of their hard-earned cash into bank bonds and into shares of these very banks.

And according to the new rules that Brussels has brought in precisely to save the Euros and banking sector in the last few years, those investors may well have to take a huge hit. So, the big question is, what happens from now with these banks if Italy doesn't have a government that is stable enough to deal with these situation, and also some of these savers could face significant losses from here. Remember, these banks also need to lend to Italian companies to make the economy grow. And this is a country that economically speaking has been in a period of stasis, the best part of 20 years.

VANIER: Nina dos Santos, CNN Money Europe Editor, reporting live from Milan, thank you very much. We'll continue to check in with you throughout the morning there in Italy and Milan, see how stocks are reacting and find out more about what's in store for Italy. Thanks a lot.

ALLEN: So, Italy now faces an uncertain future. Elly Schlein is an Italian member of the European parliament and campaigned heavily for the no vote, and she joins us now from via Skype. Thank you for joining us Ms. Schlein. I want to ask you why were his reforms so soundly defeated and why did you vote no?

ELLY SCHLEIN, ITALIAN MEMBER OF EUROPEAN PARLIAMENT: Well, actually, we voted no because the reason was really bad reform. It was impacting heavily the checks and balances in our constitution, and it was risking to shift a lot of power in the hands of the government, particularly in the hands of a ruling party. It was also taking away the right of the citizens to vote for their representatives in the senate, and it was also in a way shifting powers from the regions to the center in a really unbalanced way. So, we - I have been fighting this for two years, because it was, according to us, a very dangerous reform for the roots of our democratic system, which is already weak. Remember?

ALLEN: Yeah.

SCHLEIN: So, this was the main reason, but as you said before, Renzi has made the huge mistake and completely unnecessary mistake to dramatize it, to personalize it and politicize the votes. So, it's - in a way was transformed in a vote on his - in himself and his government. So, what happened is that, as you said already, the turnout was quite impressive. And also, a lot of (INAUDIBLE) people went out to vote no.

So, part of the people who supported the no, did it probably more for a political reason than ours that was based solidly on the text of the reform and its consequences, so it became much more a political vote, and the fact is that, many people who did not vote before probably in the political region and local election came out this time to say no to defend our constitution on one hand and to say no to Renzi's arrogance and to a government which as best a number of reforms without having any mandate to do so.

ALLEN: Right. But it's interesting, though, that he wanted to try and make the government more efficient. So, that sounds anti- establishment. So, the anti-establishment forces weren't for it.

(CROSSTALK)

SCHLEIN: You got - you got the real point here, because he framed this as it was him against (INAUDIBLE) which is ridiculous, by the way, because in the no, you could find obviously extreme rights, you could (INAUDIBLE) movement but also us from the left, and also, the biggest trade union, and also, the association of parties as the one who freed the country from (INAUDIBLE) so it was absurd to picture all the opponents as populists. And the funny thing is that, he was the one to lead a very populistic, let's say, campaign by saying we have to reduce the number of politician, we have to reduce the cost of politics. So, he tried to be the anti-establishment, but how credible can he be? He's the guy that has never done anything but politics in his life.

ALLLEN: Right, right.

SCHLEIN: It didn't actually work, so -

ALLEN: We got one minute left. I want to try to get two questions in, if you don't mind. First of all, are you concerned that a caretaker government could do anything to help the economy?

[01:10:07] SCHLEIN: What - I didn't get the question. Sorry.

ALLEN: Oh, if there is a caretaker government that is brought in until the next election and a year and a half, if that's what happens, what could they possibly do for the economy?

SCHLEIN: Well, you know, the problem is that we didn't need to spend at least six months in a campaign on a constitutional reform that's failed to address the real problems of the country, because, you know, we have a lot of issues also of efficiency of power system, but what they tried to do is to use the constitutional architecture as a scapegoat for what are the sailors of the political system. It is not true that the problem is in the constitution, it's about the political system. So, we - they fail to address the real problems, the country including corruption, tax evasion and avoidance, inequalities that rising throughout the countries, and I think that on this, it is possible to pass better reforms. Who is going to do it? We'll see, because now, it's up to the president of the republic to either give again, the mandates to Renzi to seek for a majority that he will have.

Let me stress this out. His majority said throughout the campaign that he could stay. It was his fault to politicize it to a level that he had to resign yesterday. So, I think that we will not see very dramatic changes in terms of the majority who's going to form the next government to change the electoral law and then bring the country to election next year.

ALLEN: Well, we really appreciate you explaining your thoughts on this. It helps us understand. Thank you so much, Elly Schlein.

SCHLEIN: Thanks.

ALLEN: Thanks for joining us.

SCHLEIN: Thank you. Thank you.

VANIER: As we've mentioned, voters in Austria rejected the wave of populism, electing left-wing candidate Alexander Van der Bellen as their next president.

ALLEN: His opponent had a chance to become the E.U.'s first far-right head of state. CNN's Atika Shubert has more on the results.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: The first time far-right candidate Norbert Hofer ran for Austria's presidency in May, he lost by just 31,000 votes. Well, this time, it was a clear defeat that could not be contested. Alexander Van der Bellen, a 72-year-old economist backed by the Green Party beat him again by a decisive margin. Exit polls showed 53 percent for Van der Bellen, 47 percent for Hoffer.

Behind me now, you can see both candidates, Norbert Hofer and Alexander Van der Bellen giving interviews to state broadcaster ORF, explaining exactly why they believe voters chose the way they did.

VAN DER BELLEN: I think it is a historic day for Austria for several reasons. For the first time, a presidential election had to be repeated, and it was not just a repetition, in fact, it was a new election. Because, you know, conditions changed, the world around us has changed, we had the Brexit vote in Great Britain, United Kingdom, we had the election of Donald Trump in the United States and so on. In six months, many things happened.

SHUBERT: Voters were worried and anxious, but not just about immigration, which Hofer railed against, but also, Austria's place in the E.U., and fears that the so-called "Trump Bump" would bring populist and isolation as parties into power seemed to have pushed voters the other way.

"My gut tells me to be worried," this woman said, "And I'm scared. I really fear that my daughter won't have the same opportunities as I did."

This man told us, "I am worried about Austria and I hope it doesn't go the way of the U.S. or the U.K., and that it will be an E.U. for us all and continues to be that way, and not destroyed by some people."

Immediately after the polls, a resigned Hofer insisted to CNN that he was working to unify Austria after a divisive and prolonged campaign season.

NORBERT HOFER, AUSTRIAN PRESIDENTIAL CANDIDATE: I don't want to divide the country. Now, it's on me and Mr. Van der Bellen to tell the people who supported us that it's important to see that to be a one country, we all Austria, and we have to work together.

SHUBERT: Does this put an end to the sort of populist nationalist surge we've seen in Europe?

HOFER: I can't say - always - I have to say it all the time. I think I'm not a populist. I don't want to be a populist. I'm a pretty normal guy, a level-minded man. Yeah, and I just want you to believe me. I'm really a - I'm right, but I'm not extreme right. I'm middle right. It's so important for me to show that I'm not an extreme man.

[01:15:01] SHUBERT: Now, the Austrian Presidency is a ceremonial but highly symbolic role. Hofer's loss has dealt Europe's populist surge a blow. And now, the professorial Van der Bellen, as self-describe, "Child of Refugees" is being hailed as a defender of open liberal Europe. But Austria is just the first of a string of election challenges in the year ahead. Atika Shubert, CNN Vienna.

(END VIDEOTAPE)

ALLEN: New Zealand's Prime Minister says he will not run for a fourth term, and a surprise resignation, John Key says he owes it to his family to step aside and has given everything to his job.

(BEGIN VIDEO CLIP)

JOHN KEY, PRIME MINISTER OF NEW ZEALAND: I honestly don't think on a family basis and a lot of other reasons I could commit for much beyond the next election. So, I've got no option but to do it now. Now is the right time to do it rather than - I'm just - I've come too far to mislead the public. I'm not going to do that.

(END VIDEO CLIP)

VANIER: Mr. Key has been in power for 8 years and has lead the ruling national party for 10. His resignation will be final on December 12th when the party picks a new leader.

In Syria, regime forces are gaining more ground in their bid to take back rebel-held areas in Aleppo. They've bombarded Eastern Aleppo nonstop over the weekend as the troops pushed further into the area.

ALLEN: The government advance, comes as world leaders make yet another attempt to stop the violence. The U.N. Security Council will vote Monday, on a resolution that calls for a seven-day truce in Aleppo. Russia which support's Syria's government has signalled it is ready to back the deal. The U.N. Security Council vote comes as Syria's government gains confidence it can retake Aleppo.

VANIER: It has the city surrounded and its now telling some residents who fled that it's safe to go back. From Aleppo, CNN's Fred Pleitgen has this look at the devastation that people will see if they do return.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Driving through a destroyed wasteland, that until recently was one of the main battlegrounds in Syria. Aleppo's Hanano district was in rebel hands until last week when government forces moved in with crushing fire power.

13-year-old, Odei shows me where a rocket landed next to his house and describes the fear he felt during the rage.

"We were very, very frightened," Odei says. "Normally, we would hide in the basement, but luckily that night, we slept on the first floor, because that's when two rockets hit right over here. Odei's little brother Abdul Kareem is clearly traumatized by the horrors he's witnessed and still weak from living under sieged for weeks with almost no food and water available much of the time.

As the rebels lost their grip on this place, many residents fled, trying to escape with their lives and not much more. Now, they're coming back, some haven't seen their houses for years. (INAUDIBLE) left in 2012 when the rebels took this district. Now, he's trying to salvage any belongings in what's left of his apartment.

"I am very sad because everything is either destroyed or ransacked," he says. "We found these pictures under the rubble. Even the walls are destroyed, but we will come back here and rebuild. The battle for Aleppo is far from over. But Syrian government forces clearly have the upper hand. Taking about half the rebel's territory in the past week alone, and continuing to push their offensive with massive fire power.

Like in so many districts that have been taken back by the Syrian military, there is massive destruction in this part of Eastern Aleppo. But there's no denying in the shift in momentum in favor of the Syrian military and onto the boost in morale that many of their soldiers have gotten.

Troops loyal to Syrian President Bashar al-Assad tell us they believe they could capture all of Aleppo, Syria's most important battleground very soon. "The rebel headquarters was right here," he says, so the loss of this district was a big blow to them. You can see how our shelling is pounding them and that shows that their morale is collapsing.

Rebels left behind a makeshift cannon when they fled here last week. So far, the opposition hasn't found a way to shore up their defenses in the face of this massive and possibly decisive Syrian government offensive. Fred Pleitgen, CNN Aleppo.

(END VIDEOTAPE)

ALLEN: While Donald Trump is using Twitter, now to turn up the rhetorical heat on China. Coming up, we'll have live reports from Beijing and Hong Kong.

VANIER: What's the look inside the California warehouse before it was destroyed by the deadly blaze on Friday night. What we're learning about dozens of victims ahead.

(COMMERCIAL BREAK)

[01:20:00] KATE RILEY, CNN SPORTS ANCHOR: I'm Kate Riley with your CNN WORLDSPORT headlines. With (INAUDIBLE) action and drama on what has been a superb super Sunday in the English Premier League. Jurgen Klopp Liverpool traveling to Bournemouth, looking for a win that would have taken them second place behind the leaders, Chelsea. Now, Liverpool cruising at 3-1 up with just 40 minutes, but the Cherries fought back to level the match before Nathan Ake would get the game winner in injury time. 4-3 end to Bournemouth.

Now, elsewhere, Manchester United manager Jose Mourinho was back from his one-match ban in midweek for unsporting-like behavior, as United visited Goodison Park. And this one would also have some late drama, too. Zlatan Ibrahimovic put the visitors ahead early with his sixth goal in five games, it looks as though United was going to get that much-needed win, but Everton's Leighton Baines would level the match with a penalty for the (INAUDIBLE) 1-1 the final score there.

And sad to say, that many overall publicist Tiger Woods can take from his return to golf this week, as a hero while challenging the Bahamas. Consistency, however, not one of them. Woods would finish at four under par for the final round of 76, around in which included three double bogeys, three birdies, and four birdies. The 40-year-old did finish the tournament with an impressive 24 birdies in four rounds of golf. That's a look at all your sports headlines. I'm Kate Riley.

(COMMERCIAL BREAK)

VANIER: At least 33 people are now confirmed dead in Oakland California after a fire tore through a this is what it looked like inside. It was known as the "Ghost Ship". It housed artist studios. Authorities say however it did not have permits for people to live inside. And the building's owners have been notified of hazardous trash and debris violations.

ALLEN: Well, officials are now coming through what's left of the building. And that picture right there shows you it's not very much. They're looking for victims and clues as to what may have caused the fire. Our Stephanie Elam has more.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT: Officials here saying it's too early to determine what caused this fire. But what they have said is that they've gone through the building, they've broken it up into quadrants. And they're saying they have found victims in all four of the quadrants of this building, there's no one place that the victims were found. They're also saying that some of the people that lost their lives were juveniles, 17-year olds, some young adults in their early 20s, and some 30 plus.

[01:25:00] They're also saying that they're in touch with embassies for people who were from other countries that also lost their lives in the fire. At this point, they have reached out to some of the families, but they're still working to identify some of the people who died here. That's because they're saying, some people, it's evident who they are if they had their ID on them, they can match it with fingerprints, but for others, where there's nothing there to identify them, they're having to get some source of DNA. So, they're asking family members, if you think you lost someone here, to preserve a toothbrush or to preserve a hair brush, and put it into a paper bag, a clean paper bag, and hold onto it, so that they can get to them. But at this point, they're saying they would not be surprised if they actually do expect that the number of people who died here in this Oakland fire will increase.

(END VIDEOTAPE)

ALLEN: Stephanie Elam reporting on that horrendous tragedy there.

Well, construction is stopping at least for now on a controversial pipeline project in the U.S. State of North Dakota.

VANIER: Now, the line is finished except for a segment that was originally planned to run under a lake. You see it there on the map near the Standing Rock Reservation. And that lake sits near tribal land. The Standing Rock Sioux Tribe and supporters have protested the project for months. Sara Sidner reports.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: Celebrations, tears of joy, chanting and drumming. That's what was the initial reaction when the folks here found out that the Army corps of engineers was going to stop this pipeline by asking the Dakota Access Pipeline to be rerouted. Rerouted away from the thing that is called the flash point here. Rerouted and kept from going underneath the Missouri River.

It is a very big victory for the Standing Rock Sioux and all of the people who have been here for many months trying to stop this pipeline from potentially going under the water and one day leaking. However, what we have also heard from the tribe is that they are concerned that this may not be permanent depending on which administration is in place and worried about Donald Trump's role in all of this when he takes the presidency.

UNIDENTIFIED MALE, STANDING ROCK SIOUX TRIBE: Today's decision from the army corps of engineers to not allow the pipeline company to drill under the river and violate our treaty rights and to put our children's health at peril from cancerous waters is a victory. But it's a short-lived victory, one that we need to dissect, one that we need to analyse, we need to make sure that President-elect Trump can't override this decision here today when he takes office.

SIDNER: We're hearing that from other members of the tribe that even though this is truly a victory and people feel relief, there is also worry about what happens next. Right now, this camp is filling up. No one seems to be leaving.

(END VIDEOTAPE)

ALLEN: Well, the reason that there is concern about what happens next is, as they said Donald Trump will become president, what will he do? And the company, building the pipeline, says the corps of engineers' decision is just a political move, and that it remains committed to see this thing through without rerouting it.

VANIER: Coming up, Chinese leaders are facing a new assault on their policies from Donald Trump on Twitter. We'll go live to Hong Kong and Beijing for the latest.

ALLEN: Plus, a fiance says a final goodbye to the love of her life, and a man buries his son. We'll hear from loved ones of those onboard the plane that crashed last week in Columbia.

(COMMERCIAL BREAK)

[01:32:02] ALLEN: Welcome back to our viewers around the world. You're watching CNN NEWSROOM, live from Atlanta. I'm Natalie Allen.

VANIER: And I'm Cyril Vanier with your headlines this hour.

(HEADLINES)

ALLEN: At least 11 people are dead after a hotel fire in Karachi, Pakistan. It happened at the Regent Plaza Hotel and officials say the fire has now been contained. 75 people are injured.

VANIER: Let's try to get a little more on this. We are joined on the phone by CNN producer, Sophia Saifi in Islamabad, Pakistan.

Can you tell us a little more about the circumstances of this incident?

SOPHIA SAIFI, CNN PRODUCER (voice-over): Well, Cyril, what we know at the moment it's almost midday here in Islamabad in Pakistan. The fire started at around 3:45 in the morning at this hotel. We know that the mayor was speaking to the press overnight and he said there were absolutely no fire exits. There was no fire alarm to alert the people in the hotel that there was an actual fire going on. A lot of the people who died, all of them actually have died of suffocation. The 75 injured have also suffered from breathing issues. Even though the fire has been contained, it's still unknown as to what the cause of the fire itself was.

VANIER: I just want to make very clear something that you just said. According to the mayor, there were no fire exits in this hotel?

SAIFI: Yes. It sounds surprising but I have spoken -- VANIER: It is a big building. It boggles the mind.

SAIFI: Exactly. If you look at the images, you can see people throwing out blankets and making ropes out of towels to escape. That is something that the so incredible. I have spoken to a fire safety expert. He said it's actually not unusual for fire exits not to be maintained in these kinds of large buildings. This hotel is a prominent landmark in the city. It has been a major hotel of Karachi, the largest city in the country, since the 1970s. For an incident like this to take place in such a prominent building is surprising but it's not completely unusual. You do see a fire department that's completely overwhelmed. There's not a proper avocation of sources and such incidents are not unusual in a city like Karachi -- Cyril

[01:35:27] @ALLEN: Yeah, our Sophia Saifi reporting from Islamabad. Thank you for reporting there. And you're showing our attention to something, and you can see the sheets being tied and knotted together and used as a rope by people who are trying to get out of the building.

Thank you very much, Sophia, for the update.

The Trump transition team confirms U.S. the president-elect is casting a wider net for potential candidates for secretary of state. A source with the transition team says former Utah Governor Jon Huntsman is among the new names being considered.

ALLEN: Already in the mix are former 2012 presidential candidate, Mitt Romney, former New York City Mayor Rudy Giuliani former CIA Director David Petraeus and U.S. Republican Senator Bob Corker.

Trump may be preparing to shake up U.S./China relations when he takes office in January. He followed up the phone call with Taiwan. First, he set off that diplomatic earthquake speaking directly with the Taiwan leader in defiance of nearly 40 years of sensitive U.S. diplomacy. Now he is going after Beijing's trade and military policies.

VANIER: On Sunday he tweeted, "Did China ask us if it was OK to devalue their currency, making it hard for our companies to compete, heavily tax our products going into our country. The U.S. doesn't tax them. Or to build a massive military complex in the middle of the South China Sea? I don't think so."

ALLEN: Let's bring in CNN's Alexandra Field, in Beijing, and Andrew Stevens, in Hong Kong.

It is interesting when he first made this -- well, picked up the phone and people were saying maybe he didn't understand we don't talk to them. He is plowing forward now on social media.

Alexandra, let's start with you. Will these tweets create tension with Beijing?

ALEXANDRA FIELD, CNN CORRESPONDENT: They don't appear to be a mistake. He decided to send out the tweets after this phone call with Taiwan. The question is whether or not Beijing responds and how they decide to react. Frankly, this is uncharted territory. He promised his policy would be unpredictable. How seriously do you take the messages that a president-elect sends out on social media? This is not something governments usually have to deal with. Are these messages signs of what will be and what could be foreign policy? Or is this the kind of rhetoric that was so popular while Donald Trump was on the campaign trail, the tough talk against Beijing that was very popular with his base?

Well, state media has been carefully watching Trump from China and they have been reporting on him throughout the election. Their initial take in a lot of the op-eds we have seen published in places like "The Global Times" was to characterize him as someone who was brash and unpredictable, on the one hand, but on the other hand, they have expressed a belief that he is not a leader who is seeking to overturn international relationships. Two sides of the coin. That's the lens to which they have to take a look at this call, which was received from the president of Taiwan, and also the decision to issue the tweeting that go after China.

Look, the content of those tweets isn't terribly different from what he said on the campaign trail. These are issues he did, in fact, address. And state media had predicted that when President Trump takes office in January, he could take a harsh tone towards China, that it might be part of the plan to boost his authority within the states, show himself as a commander-in-chief. But Chinese state media has perceived him as an isolationist who faces a divided nation at home, who would put most of his focus into domestic policy, making America great again, as the campaign slogan went.

So right now, Beijing has not responded to the tweets alleging currency manipulation and also going after China's interests in the South China Sea. But there will be a briefing later this afternoon from the foreign ministry. We can expect the spokesperson will be asked about the tweets and we could see whether or not Beijing decides to have any response. They did respond over the weekend to that unprecedented call to Taiwan's president. A complaint was lodged with Washington. Beyond that, state media reported that Donald Trump is simply the president-elect, he is not yet the president, and that's why the Chinese it was more appropriate to rebuke Taiwan's president for making that call instead of Donald Trump for receiving that call -- Natalie?

[01:40:04] VANIER: All right, Alexandra, thank you.

Let's talk with Andrew about the tweets themselves.

The South China Sea situation is with the contentious issue with the current Obama administration. But let's talk about asking "Did China ask us if it's OK, making it hard for our countries to compete?" That's not exactly the current situation in China right now, is that right?

ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Yeah, that's right. This has been a long-running issue, Natalie, with Donald Trump that China has been raping American industries through it's devaluation policy. Now it is quite clear that over the past 20 years or so that China did use it as a way to boost export competitiveness because exports were a key part of the China growth story. Recently, if anything, it switched around the other way. China's currency manipulation tends to block the currency from falling too far. It's rather there to prop the currency up which would actually help U.S. goods because it would make China's goods less competitive.

Why do I say that? Take a look at what's been going on in the currency markets since Donald Trump won the election. The U.S. dollar has strengthened against the China yuan to the tune of 1.8 percent, or China is down 1.8 percent against the dollar. But look at what it's doing against the Euro, against Brazil, another emerging market, against Japan, it is down. The dollar is much stronger against those other currencies. So, what's actually happening is the Chinese are trying to stabilize their economy, not let it fall too far.

So, when Donald Trump talks about American companies and American businesses being raped by this policy, it doesn't really stand up in this day and age. The key here is that this is now President-elect Trump tweeting. When he was on the campaign trail it was a different story. Now that he's president-elect, it takes on a much more sinister tone, if you like. And the president, on the campaign trail, repeatedly said he would impose 45 percent taxes on Chinese goods going into the U.S. If that happens, if he follows through with that sort of threat, that is when things will get very, very ugly. That, most analysts will tell you, will spark retaliation. It could lead quickly to a war between the two --- well, in the economy, and in that scenario, everyone loses.

ALLEN: Well, we'll have to see if Donald Trump walks back the tweets. He did that several times during the campaign. It is certainly a new day with the president tweeting his thoughts on extremely important matters.

We thank you. Andrew Stevens and Alexandra Field for us. Many thanks.

VANIER: Still to come on CNN NEWSROOM, heartbreak in Brazil as families of plane crash victims who pictured bright futures with their loved ones now say good-bye.

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[01:46:09] ALLEN: Cuba has laid its long-time leader, Fidel Castro, to rest. His ashes were placed in a tomb in Santiago on Sunday where his revolution began in 1959.

VANIER: For the past week, massive crowds have celebrated Castro's life. But the final goodbye felt much different, as our Patrick Oppmann reports

(BEGIN VIDEOTAPE)

(SHOUTING)

PATRICK OPPMAN, CNN INTERNATIONAL CORRSEPONDENT (voice-over): In Santiago, Cuba, known as the cradle of the revolution, tens of thousands of the faithful give Fidel Castro his last public send-off. The crowd of Castro admirers pledged their devotion to the fallen leader until the eternal victory.

But Raul Castro said his brother would not be immortalized in the way so many before him.

RAUL CASTRO, CUBAN PRESIDENT & BORTHER OF FIDEL CASTRO (through translation): He was consistent with that attitude until the very last hours of his life insisting that, once dead, his name and his figure would never be utilized to name institutions, plazas, parks, avenues and other public spaces, and neither build in his memories, monuments, statues and other similar forms of tribute.

(MUSIC)

OPPMANN: Castro was laid to rest on Sunday in Santiago, a private ceremony for a leader who, for six decades, lives a most public life. Only members of the secretive Castro family and a small number of invited guests were in attendance.

Just weeks before his death, Fidel Castro's son and personal photographer predicted his father's final wish.

ALEX CASTRO, SON OF FIDEL CASTRO: (SPEAKING FOREIGN LANGUAGE)

OPPMANN (on camera): And why doesn't he love it?

ALEX CASTRO: (SPEAKING FOREIGN LANGUAGE)

(SINGING)

OPPMANN (voice-over): But hundreds of thousands lined highways and roads as Castro's ashes were transported past to worship the leader who changed the lives and island forever.

A housewife waited alongside the road for hours to catch a final glimpse of the Cuban leader that she said she loved like a father.

UNIDENTIFIED FEMALE: Thanks to him we have what we have, our health care, education. That's all thanks to the commander.

OPPMANN: But Castro also left behind a host of problems for Cubans to grapple with, an outdated Soviet-style economy, a heavy-handed police state, the exodus of some of the island's best and brightest.

As the massive memorials for Castro die down, Cubans are left alone to face an uncertain future.

Patrick Oppmann, CNN Santiago.

(END VIDEOTAPE)

ALLEN: Days after the plane crash in Colombia that killed nearly an entire football team, dozens of families are laying their loved ones to rest. VANIER: "World Sport's" Don Riddell shares some of their stories.

(BEGIN VIDEOTAPE)

DON RIDDELL, CNN WORLD SPORT CORRESPONDENT (voice-over): Amanda Machado (ph) was planning to be married last Friday. Instead, this is the funeral for the love of her life. Denara san Talbras (ph) was one of the 19 players killed in the Columbian plane crash.

AMANDA MACHADO (ph), LOST FINANCE IN PLANE CRASH (through translation): I wanted to die with him. I wanted to kill myself. I could not imagine my life without him.

RIDDELL: She now wears his wedding ring around her neck.

MACHADO (ph): (SPEAKING FOREIGN LANGUAGE)

(CHEERING)

RIDDELL: After the emotionally draining ceremony on Saturday when dozens of caskets were brought onto the field, individual funerals are being held all over Brazil, a country deep in mourning.

This is one of the last images of Felipe Machado (ph), young vibrant and full of hope.

(SHOUTING)

[01:50:11] RIDDELL: Osmon Machado (ph) was expecting a call from his son to wish him a happy birthday. Instead, he received a call to say Felipe was dead.

OSMON MACHADO (ph), FATHER OF PLANE CRASH VICTIM: Suddenly, I woke up, oh, my god, my son is dead.

RIDDELL: Like Filipe, Denara was also in the prime of his life.

(CHEERING)

MACHADO (ph) (through translation): He never wanted to be an idol. He didn't want to be famous. He wanted to be respected. He wanted people to look at him and say he is worth it. He was in a great phase of his career. His last was beautiful.

RIDDELL: Amidst the darkness, however, there is a ray of sunshine. Amanda's two-year-old son is her future.

MACHADO (ph) (through translation): He is the same. He is a little piece of his father that has remained. I will do everything to raise him knowing that his father was the most extraordinary man.

RIDDELL: Don Riddell, CNN, Brazil.

(END VIDEOTAPE)

(COMMERCIAL BREAK) (WEATHER REPORT)

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VANIER: Welcome back. The U.S. comedy television show "Saturday Night Live" has made Donald Trump a frequent target of satire, as you know.

VANIER: This weekend is no exception. On Saturday, Actor Alec Baldwin poked fun at President-elect Trump and Trump's fondness for Twitter.

(BEGIN VIDEO CLIP)

[01:55:12] ALEC BALDWIN, COMEDIAN & ACTOR: This week tweeted the best tweet. I mean, wow, what a great, smart tweet.

(LAUGHTER)

UNIDENTIFIED COMEDIAN: Mr. Trump, we are in a security briefing.

BALDWIN: I know but this could not wait. It was from a young man named Seth.

(LAUGHTER)

He is 16 and in high school. I really did retweet him, seriously. This is real

(LAUGHTER)

UNIDENTIFIED COMEDIAN: He really did do this.

(LAUGHTER)

UNIDENTIFIED COMEDIAN: Well, sir, you're the president-elect, so I guess you can do whatever you want, but we would like to fill you in on Syria.

BALDWIN: Seth seems so cool.

(LAUGHTER)

(END VIDEO CLIP)

ALLEN: Trump was watching. He does watch. He responded to a tweet, of course: "Just tried watching 'Saturday Night Live'," he wrote, "Unwatchable, totally biased, not funny. And the Baldwin impersonation just can't get any worse. Sad."

VANIER: And the story doesn't end there. Baldwin fired back with a tweet of his own. He promised to stop mocking Trump if Trump released his tax returns.

ALLEN: Parodies of the president are as old as the country itself. He'll have to get used to it. Thanks for watching. I'm Natalie Allen.

VANIER: I'm Cyril Vanier.

CNN NEWSROOM room continues after this. Stay with us.

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