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Italian Prime Minister Matteo Renzi To Resign; Oakland Warehouse Fires Kills Dozens; Trump's Twitter Assault; Cuba's Final Goodbye to Fidel Castro. Aired 3-4a ET

Aired December 05, 2016 - 03:00   ET

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

(COMMERCIAL BREAK)

[03:00:00] CYRIL VANIER, CNN ANCHOR: A new test for Italy and the E.U. Prime Minister Matteo Renzi says he will resign after a lopsided defeat of the polls.

ROSEMARY CHURCH, CNN ANCHOR: A painful search. Investigators looks for answers after warehouse fires kills dozens of people in Oakland, California.

VANIER: And on the attack. Donald Trump launches the fresh Twitter assault on China just days after diplomatic breach on Taiwan.

Welcome to our viewers in the United States and around the world. I'm Cyril Vanier.

And I'm Rosemary Church. This is CNN NEWSROOM.

Populism has been on the rise in European politics and its supporters are declaring victory in Italy. Prime Minister Matteo Renzi was on the losing end and he's preparing to leave office now.

VANIER: But the populace movement suffered a setback in Austria. Voters rejected a far right candidate electing a pro-E.U. veteran instead.

We'll get to that part of the story in just a few minutes.

CHURCH: All right, So, let's start in Italy with the prime minister's position up for grabs. The country is at a political crossroad.

Metteo Renzi says he will formerly resign in the coming hours.

VANIER: He promised that he would step down if he lost this weekend's constitutional referendum which he did and by a wide margin. However, Renzi seemed gracious in defeat.

(BEGIN VIDEO CLIP)

MATTEO RENZI, ITALIAN PRIME MINISTER (TRANSLATED):I thank my colleagues for their extraordinary adventure. We are now together and the president of the public will have a meeting with me and I will give my resignation. I will hand in my resignation. (END VIDEO CLIP)

CHURCH: Well, there's fear of financial fallout from this vote and we may be seeing that very soon.

Let's turn in to Nina dos Santos in Milan. And Nina, markets are opening very soon, how are they likely to respond to this vote in Italy?

NINA DOS SANTOS, CNN CORRESPPONDENT: Yes, the stock market right behind me here in the financial capital of Italy, Milan, well, that is expected to open around 2.8 to 3 percent at the point. In fact, we're seeing the early trades, trading down in negative territory. I'll give you the numbers when we manage to get them.

But, Rosemary, it's not just markets here in Italy that are going to be affected the reverberations of what's happened overnight in Italy. It is a period of great uncertainty.

And what many people across financial markets around the world are trying to get to grips with, is where you put your money during these uncertain times when it's really difficult to get exactly how populism and politics that is currently dominated by populism in this part of this world it seems is playing out.

So, the real crisis here in Italy is not just a political one, it is an economic one as well. And in many ways, that is what people wanted to be heard on more than the constitutional reforms that Matteo Renzi proposed.

So, what you'll often hear from people in the streets from Milan, Rome, and Venice and other parts of Italy is that this was a protest vote. Matteo Renzi chose to make this personal and that is one of the reasons why he had to fall on a sword when he chose to say that he would resign if he were to lose this referendum. He lost by a wide margin.

And as you and Cyril quite rightfully pointed out, he had to go and he went very swiftly. So, from here a political uncertainty looms and that there may be various options for the president on the table. We'll have to see over the next few days how that pans out.

And that's something that people in their stock market behind me will keep a close eye on, as well as across board rooms and banks across this country.

CHURCH: And Nina, while we're chatting, let's just bring out those numbers again. Because we do have them. You can see there that Milan is down just over 2 percent. The FTSE 100 down just over .3 of a percent there.

But let's just go back to the reasoning there, why Italians would vote against reform and downsizing the Senate and it's powers for some that is hard to grasp.

DOS SANTOS: It's a good question, isn't it, Rosemary? Because in the face of things what Matteo Renzi was trying to propose here streamlining the bureaucratic system, streamlining the system of Senate and the upper and then the lower House of Parliament, the chamber of deputy so that we didn't have bills constantly going back and forth between one and another to empower the politicians in this country to actually take the economy into action.

[03:04:55] It seemed like a great idea on the face of things. But the problem is, is that people seem to be spoiling for a fight here, especially the populist five-star movement of Beppe Grillo spent a lot of money in his big media machine to try and campaign to get out there, to try and get this party supporters and other people across the country to vote.

It seems as though that message has gone down loud and clear. Sixty percent of the Italian who voted in this referendum decided to reject to Beppe's proposal. Then 40 percent of them voted yes. A lot of those 40 percent you can imagine are in rather richer more affluent parts of the country that are pro-business like hire in Milan.

In fact, the business community was very much in favor of what Renzi was proposing here. But the turnout was also significant and we shouldn't ignore that. The turnout of over 70 percent is larger than some of the general elections that I've covered here in Italy.

So, it does go to show that these were measures that were ejected soundly, not just when it comes to the Constitution, but also when it comes to Matteo Renzi having gambled on this personally and lost in spectacular fashion.

CHURCH: yes, indeed. Our Nina dos Santos joining us there with that live report in Milan just after 9 o'clock in the morning. We saw there in Milan the markets dropping 2 percent, just over 2 percent. We'll keep a very close eye on that. Many thanks to you, Nina.

VANIER: Let's look at the other key election that took place in Europe on Sunday, and that in Austria. Voters there have chosen a left wing candidate to lead their country for the next six years.

CHURCH: Yes, Alexander Van der Bellen won decisively. His opponent was looking to become the E.U.'s first far right of head of state.

VANIER: Senior international correspondent Atika Shubert joins us now live from Vienna with more on these results. Atika, the polls in the run-up to this election, made it look like the far right candidate had a good shot at the presidency. I mean, after all they came very, very close last time. But in the end this result wasn't particularly close.

ATIKA SHUBERT, CNN CHIEF INTERNATIONAL CORRESPONDENT: No, in fact. It was a decisive win with last time, you know, with won just by a few thousands votes, tens of thousands of vote. Now it was very clear that Van der Bellen he seems to have won over voters with his message of a stable and open Europe.

The first time far right candidate Norbert Hofer ran for Austria's presidency in May, he lost by just 31,000 votes. While 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 Hofer.

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.

(BEGIN VIDEO CLIP)

ALEXANDER VAN DER BELLEN, AUSTRIA'S PRESIDENT-ELECT: I think it's 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 change, the world around us has changed. We had the Brexit vote in Great Britain in United Kingdom. We had the election of Donald Trump in the United States and so on, in six months many things happened.

(END VIDEO CLIP)

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 populace and isolationist parties into power, seems to have pushed voters the other way.

(BEGIN VIDEO CLIP)

SHUBERT: "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."

UNIDENTIFIED MALE: Yes, finish.

SHUBERT: This man told us, "I am worried about Austria, I hope it doesn't go the way at 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.

(BEGIN VIDEO CLIP)

NORBERT HOFER, AUSTRIAN PRESIDENTIAL CANDIDATE: I don't want to divide the country. Now it's me and Mr. Van der Bellow to tell the people who supported us that it's important to see that we are one country. We're 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 always the same thing. I'm

not a populist; I don't want to be a populist. I'm a pretty normal guy a level-minded man. Yes.

[03:10:02] And I just want you to believe me. I'm really -- I'm right, but I'm seen right, I'm middle right. It's so important for me to show that I'm not an extreme man.

SHUBERT: Now, the Austrian presidency is a ceremonial but highly symbolic role. Hofer's loss has dealt Europe's popular surge a blow, and now the professorial Van der Bellen, a self-described child refugee is being held as a defender of an open liberal Europe. But Austria is just the first of a string of election challenges in the year ahead.

(END VIDEO CLIP)

SHUBERT: I think the key here was Van der Bellen said earlier that piece, is that a lot changed in the last six months. You had Brexit, you had Trump, and what voters are really voting for was stability. This is the one thing in exit polls, they said they expected Van der Bellen to basically stay the course, keep Austria in the E.U. and keep an open -- open Europe and open Austria.

VANIER: Our CNN senior international correspondent, Atika Shubert, thank you very much.

CHURCH: A fire at hotel in Karachi, Pakistan has killed at least 11 people. The blaze broke out at region plaza hotel. Karachi's mayor says there were no fire exits or fire alarms going off to alert people inside the hotel.

At least 75 people were injured. Firefighters rushed to the scene and officials say the fire has now been contained. They're investigating what could have caused it.

VANIER: At least 33 people are now confirmed dead in Oakland, California after fire tore through a dance spot in a warehouse. These images show the building before Friday night's place. It was known as the ghost ship and it housed artist studios.

Authorities say, however, it does not have permits for people to live inside. And the building's owners had been notified of hazardous trash and debris violations.

CHURCH: As officials comb through what's left of that building, Oakland's fire chief described the blaze as among the worst in the city's history. Here's what Oakland's mayor said is being done to recover victim's remains and comfort their loved ones.

(BEGIN VIDEO CLIP)

LIBBY SCHAAF, OAKLAND MAYOR: But it is with so much grief and so much compassion that we, as your city family share with you this horrific news. And as this tragedy continues to unfold, I want you to, again, reassure of what our priorities are as the city of Oakland. Our first priority is the humane and compassionate removal of the

victims of this tragedy. And I want to assure you that we are continuing to operate a 24/7 recovery operation to effectuate that removal.

Secondly, we are focusing on supporting the families and the loved ones, some who are coming from very far away.

(END VIDEO CLIP)

VANIER: The District Attorney's office in the Oakland area has activated a criminal investigation team to look into the deadly fire.

CHURCH: CNN's Stephanie Elam is in Oakland with more on this tragedy.

STEPHANIE ELAM, CNN CORRESPONDENT: The officials here are saying it's too early to determine what caused this fire, but what they have said is as 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 is no one place that the victims were found. They're also saying that some of the people that lost their lives were juvenile, 17 years old, some young adults in their early 20s, and some 30 plus, they're also saying that they're in touch with embassies who are people who were from other countries, that also lost their lives in the fire.

At this point, they've 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 I.D. on them, they can match it with fingerprints.

But for others where there is 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 on to it so that they can get to them.

But at this point, they're saying they would not be surprised that they actually do expect that the number of people who died here in this Oakland fire, will increase.

CHURCH: Stephanie Elam with that report.

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

VANIER: The line is finished, except for a segment that was originally planned to run under a lake, that sits near tribal land. The standing Rock Sioux tribe and supporters have protested the project for months.

Sara Sidner reports.

[03:15:00] SARA SIDNER, CNN CORRESPONDENT: Celebrations, tears of joy, chanting, and drumming, that's what the initial reaction when the folks here found out that the army corps engineers was going to stop this pipeline by asking the Dakota Access Pipeline to be rerouted, rerouted away from the thing that has caused 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 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 there 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.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Today's decision from the army corps of engineers to not allow the pipeline company to drill underneath 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 short-lived, one that we need to dissect, one that we need to analyze, we need to make sure that President-elect Trump can't over ride this decision here today when he takes office.

(END VIDEO CLIP)

SIDNER: We're hearing that from other members from 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 living.

CHURCH: Sara Sidner with that report.

And the company building the pipeline says it remains committed to seeing the project through to completion without rerouting.

VANIER: And coming up when we return, Syria is calling on civilians to return to east Aleppo. And our Fred Pleitgen goes to the war-torn city for a look at resident's grim homecoming.

Also ahead, Donald Trump turns up the rhetorical heat on China, alleging Beijing is manipulating its currency unfairly against the U.S.

We'll take a look at that. Back in a moment.

(COMMERCIAL BREAK)

KATE RILEY, CNN WORLD SPORT ANCHOR: I'm Kate Riley with CNN World Sports headlines.

With dust, with the action, and drama on what has been a superb super Sunday in the English Premier League. Jurgen Klopps Liverpool which happen to form as looking for a win that would have taken them second place behind the leader Chelsea. Now Liverpool were cruising at three one up with just 40 minutes left

for the cherries (Ph) fourth bag to level the match before Nathan Ake will get the game winner in injury time 4-3 and as Bournemouth mount.

Now elsewhere, the Manchester United manager Hose Mourinho was back for this one-match ban in mid-week for unsporting like behavior as United visited Goodison Park.

[03:20:02] And this one would also had some late drama too. Zlatan Ibrahimovic for the visitor is ahead early for his sixth goal in five games. It looks as though United going to get that much needed win but Everton's (Inaudible) to have level the match with a penalty for the top, 1-1 the final score there.

And fair to say that many overall positives Tiger Woods can take from his return at golf this week at the Hero World Challenge to the Bahamas. Consistency however, not one of them would finish at four under par for the final round at 76 rounds which included three double bogeys, three bogeys, and 4 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.

VANIER: Regime forces in Syria are gaining more ground and they bid to take back rebel-held areas in Aleppo. They've bombarded eastern Aleppo non-stop over the weekend as their troops pushed further into the area.

CHURCH: Syria's Civil Defense also known as the White Helmets says air strikes in Idlib province killed at least 67 people on Sunday.

Meanwhile, the U.N. Security Council is set to vote Monday on a resolution calling for a seven-day truce in Aleppo. Russia, which supports Syria's regime, has signaled it's ready to back the deal.

At the same time Syria's government is urging some civilians who fled eastern Aleppo to return. It says parts of the area are now safely under regime control.

VANIER: CNN's Fred Pleitgen spoke to some of the Syrians who have been urged to return.

CHURCH: He has this look at this grim devastation facing them in war ravaged Aleppo.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Driving through a destroyed waste land 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.

Thirteen-year-old Uday (Ph) shows me where a rock landed next to his house and describes the fear he felt as he was outraged. "We were very, very frightened," Uday 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." Uday's little brother Abdul Karim (Ph) is clearly traumatized by the

horrors he's witnessed and still weak from living under siege 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.

Khalid Chobelo (Ph) 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'm very sad because everything is either destroyed or ransacked," he says. "We found these pictures under the rubble. 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 of the rebels territory of 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 the shift in momentum in favor of the Syrian military and also 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.

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

(BEGIN VIDEO CLIP)

JOHN KEY, NEW ZEALAND PRIME MINISTER: I honestly don't think on a family basis and a lot of other reasons I could commit for much beyond the next election.

[03:24:59] So, I've got no option but to do it now. And now it's 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: Now Mr. Key has been in power for eight years, and he's led the ruling National Party for 10. His resignation will be final on December 12th when the party picks a new leader.

Now, a bit of cold front is sweeping across much of the United States and this is just the start.

CHURCH: It is. Now Pedram Javaheri joins us now in the studio to talk more about this. So, how bad will it be in parts of the United States?

PEDRAM JAVAHERI, CNN METEOROLOGIST: It will be the coldest all season. And it's almost hard to believe that winter is still about three weeks away. And this will be as cold as you typically get any time of winter for parts of the United States. So it's going to happen quickly.

(CROSSTALK)

VANIER: You've got Rosemary worried.

CHURCH: I know. I don't like the cold.

JAVAHERI: We'll show you exactly what we have in store, guys. Because we're talking about these temperatures in part across the upper Midwest work your way out towards portions of the plains. It could be 20 to 30 below zero When you factor in the wind chill.

At this hour, it's relatively speaking, it's cold ad minus one in Presque Isle, Maine and into the upper 60s across portions of Florida. But again, the pattern shift dramatically in the coming couple of days. And climatologically it's the latter portion of January into February where it's often called the dead of winter, so the pattern began dramatically happening here in the couple of days.

You see the source regions out of portions of Canada eventually dropping into the central portion of the United States and the northwest certainly gets in on the action as well. And that's why we have winter weather advisory.

Winter storm warnings in place for some of the cities including places like Portland and Seattle can pick up about 30 to 40 percent over their annual snow fall over the next three to five with several storms coming in, with plenty of cold air in place.

So, initially some snow showers in the early morning commute on Monday for Seattle and Portland can certainly impact travel already some 1,500 passengers there having their flights altered in Seattle area because of the cancellations that place across that region.

And speaking of wintery weather, look at this, those are winter storm warnings in place across the highest elevations of the Hawaiian Islands. Yes, there is snow coming down in Hawaii, this is not unheard of, you get above 9,000 feet, Mauna Loa, Mauna Kea there with 55 mile per hour wind gust in the forecast, up to 60 inches of fresh snow could fall. Always an interesting discussion there and of course, you come down

towards the beaches. It is a different story when it comes to be in the 80s and a mild set up there.

But I want to show you what's happening right now across portions of eastern China. I want to show you a video coming out of Chengdu which is across areas just west of Shanghai.

Look at this footage out of this region when we know thousands of people dealing with cancellations across this area of China where air pollution, the smog mere, the particulates literally making it an impossible going the road ways. And also at air force across this region the quality some four to six times dirtier than what is considered fit to breathe over the past 24 to 36 hours

And this is not unheard of when you factor in the largest population in the world with the largest manufacturing sector in the world. You put it together and this time of year, a lot of cold there taking place, it really sets the stage for a disaster to be in place.

And guys, in the last hour or a couple of hours ago, with Cyril and we talked about the recent Pew Review study, saying if you were to spend one hour out in conditions like that, it could reduce your life by 20 minutes.

VANIER: That's a crazy number.

JAVAHERI: And that's significant impacts on the high density of particulates that a lot of people frankly have never experience before in other parts of the world.

CHURCH: They really need to do something.

JAVAHERI: Absolutely. It can be done a lot quicker.

CHURCH: Yes, absolutely. Pedram, thanks so much. I appreciate it.

JAVAHERI: Yes.

CHURCH: Well, coming up, Chinese leaders are facing a new song from Donald Trump on Twitter. We will go live to Hong Kong and Beijing for the very latest.

VANIER: Also after a week of lively tributes, Cuba says its final good-bye to Fidel Castro.

[03:30:00] (COMMERCIAL BREAK)

CHURCH: A warm welcome come to our viewers all around the world including here in the United States. I'm Rosemary Church.

VANIER: And I'm Cyril Vanier.

Let's update you now on our top stories this hour.

Italy's Prime Minister Matteo Renzi says he will step down after a decisive loss on a constitutional referendum. Nearly 60 percent of people voted against the downsizing the Italian Senate and its powers.

And we're seeing the financial fallout from Renzi's decision. It turns out most European countries OK with that decision, You see the FTSE, the DAX in Frankfurt, and the Paris CAC all up between half of a percent. And just over a percent, even 1.6 for the DAX. Milan, however, a little more predictable perhaps might down almost just down minus 0.6 percent at this stage.

CHURCH: At least 33 people are now confirmed dead after fire at warehouse in Oakland, California late Friday night. The building was hosting a dance party and the death toll is expected to rise.

The district attorney's office of the Oakland area has activated a criminal investigation team to look into the blaze.

VANIER: Construction on a controversial oil pipeline is coming to a halt in the U.S. State of North Dakota at least for now. The army said on Sunday we'll not allow the pipeline to be built under a lake near Native American land. The standing Rock Sioux tribe and supporters have protested the project saying it would threaten their water supply.

CHURCH: Well, voters in Austria have rejected the populace movement sweeping across Europe, electing a left wing candidate into office.

Joining me now to discuss this is Franz Schellhorn, director of Agenda Austria, a research institute, and he joins me live now from Vienna. Many thanks for being with us.

So far-right leaders are hailing Italy's vote as a victory for the populace movement in Europe, so why did Austria apparently buck that trend, do you think, and what might this signal.

FRANZ SCHELLHORN, AGENDA AUSTRIA DIRECTOR: Yes, good morning here from Vienna. I think obviously a lot of Austrian voters were concerned about Austria's reputation abroad and secondly, most Van der Bellen voters wants Austria to be a reliable partner in Europe and that is why we have this clear decision in Austria.

CHURCH: And interesting, and Alexander Van der Bellen's opponent Norbert Hofer was hoping to become the E.U.'s first far right leader, but it wasn't to be and now he is backing away from the far right branding, saying he's not a populace, insisting he's a center right politician, is that the case, just how far right is Hofer?

SCHELLHORN: I think he tried to present himself as the candidate of the common man right in the middle. But decisive is the perception, and the perception especially broad is that he is a part of the far right movement.

[03:35:06] Perhaps not far than Miss -- Madam Le Pen in France and some others, but he did not really succeed in being the candidate of a common man. Because a lot of Austrians feared that there is going to be a polluted atmosphere Europe with him as the president.

So now, we have the first green president in the Western European part of Europe. And yesterday we have seem to it could be possible that we have the first right wing president. So there was a clear decision for Austria being not in the spotlight of Europe anymore.

CHURCH: Yes. I mean, the outcome is certainly extraordinary, really, isn't it. What do you think is behind Europe's shift to the populace right and do you expect to see that trend continue despite what happened in Austria.

SCHELLHORN: You know, we don't have just the populace right swing movement. There's also leftist populace in the south of Europe. Think about Greece, think about Portugal and in Italy, it is quite interesting what happens next after this referendum yesterday.

Beppe Grillo movement is left wing populace movement, we'll have right wing populace in the north. So, this is there's going to be a lot going on in Europe in the next month and Austria, of course, did not set the trend in this way.

CHURCH: And before you go, I did want to ask you that, I mean, what future do you think lies ahead for Austria under the leadership of Alexander Van der Bellen?

SCHELLHORN: I mean, you have to take into consideration that the Austrian president is much more of a representative figure. The government takes the important decisions and in opinion polls for their parliamentary elections, the freedom party ranks key on number one.

So, the government better get started now and set the reform processing motion, there are a lot of things to do. The refugee crisis, high taxation, rising unemployment, and people want answers because they are not happy. There's a big discontent with the government's performance.

So, in Austria, the president, we'll have a decision for the president, but the next parliamentary election are going to be very interesting. And as I said, government better get started.

CHURCH: Franz Schellhorn, thank you so much for joining us and bringing us your perspective on this. We do appreciate it there in Vienna, where it is 9.37 in the morning.

VANIER: U.S. President-elect Donald Trump may be preparing to shakeup U.S.-China relations when he takes office in January.

First, he set off a diplomatic earthquake Friday by speaking directly to the Taiwan leader. He was ignoring nearly 40 years of sensitive U.S. diplomacy when he did so. Now he's going after what he alleges are Beijing's trade and military policies.

CHURCH: On Sunday he tweeted this, "Did China ask us if it was OK to devalue their currency, making it hard for our companies to compete, heavily tax our product going into their 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." End of tweet there. VANIER: All right. Let's see how this is playing out in China. CNN's

Alexandra Field is in Beijing. We also have Andrew Stevens who is in Hong King standing by. Alexandra, let me begin with you, what is the latest reaction that you've been getting in China?

ALEXANDRA FIELD, CNN CORRESPONDENT: Well, there was the tough talk on Twitter from President-elect Donald Trump, but the response from China has come through the spokesperson for the ministry of foreign affairs, and it's a very measured, a pretty tempered response to those tweets.

He is reaffirming the importance of the bilateral relationship between China and the U.S., highlighting the importance of the trade and economic relationship between the two countries. And he went on to say, that China won't speculate on what has motivated the actions of President-elect Donald Trump or his team.

And he went on to say that China does not comment on the style or personality of foreign leaders, they only respond to the policies of foreign leaders, so that leaves the question, what is the policy of President-elect Donald Trump.

Are these tweets assigned at the long-standing relationship between the U.S. and China could be altered under the Trump administration that really isn't clear to anyone at this point.

We will all recall that when out on the campaign trail, President- elect Trump had very tough words for Beijing and that played well with his base. But is this just rhetoric, is this a shoot from the hip sort of style? Is this talk, bluster, as some of the Chinese state news media outlets have called it, or is it a sign of changes that could be to come under the Trump administration?

[03:40:07] Certainly, China is hopeful that that is not the case. They have the first indication that it could be a sign, however, when President-elect Donald Trump broke with protocol this weekend nearly 40 years of diplomatic protocol accepting that call from Taiwan's president.

That call was met with a stern rebuke from officials here in Beijing, who admonished the president of Taiwan for making the call to president elect. They sent a message directly to the President-elect Donald Trump.

They also sent a message directly to the Trump transition team and to Washington, and to the White House urging the importance of upholding the relationship between the U.S. and China, the one China policy through which Washington, D.C. and Beijing have always had the official diplomatic relationship and by which the U.S. has maintained an unofficial relationship with Taiwan and Taipei, specifically, Cyril.

VANIER: Alexandra Field with the reaction from Beijing. Thank you very much.

CHURCH: All right. Well, Donald Trump's tweets made some bold allegations. Andrew Stevens has been examining them for accuracy. So, Andrew, let's fact check what Donald Trump had to say about China. Starting with his suggestion that it was manipulating its currency, true or false?

ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Well, the manipulation Donald Trump's is referring to, is the devaluation of the Chinese Yuan. And there's no doubt that Yuan has been losing value since the election of Donald Trump, Rosie, but this is really a story about the strength of the U.S. dollar rather than China actively meddling in the currency markets to bring the value of their currency down, which makes it cheaper.

If you take a look at what's been happening in the currency markets, you'll see that the Yuan has actually being much, much more resilient to falling against the dollar and some of the other much bigger currency or much more widely trade currencies around the world.

Look at the euro, for example, that's down 4.5 percent against the dollar. The yen in Japan down nearly 10 percent. While China's currency is down just 2 percent. So, to say that China is manipulating the currency down at the moment does not stand up to scrutiny.

But you can say that over the course of the past two decades or so that China did use a weaker currency, and remember it's not a freely floating currency, Rosie, the Chinese government sets the value of the Chinese currency against the dollar and other currencies and they have been using a lower currency to boost their exports to help their economic growth story, this enormous economic growth story over the past 20 years.

However, in the last year or two, they've actually been trying to shore up their currency, they're trying to make it strengthen against the U.S. dollar because they're worried that with the yean going down as it is, you get capital try.

A lot of Chinese investors want to get their money out of China, so they're trying to put a stop under this falling Yuan to stop people trying to get their money out. So, as far as manipulation at the moment to weaken the Yuan, no, not true.

CHURCH: Interesting. And Donald Trump also accused Beijing of heavily taxing U.S. products going into China but said the U.S. doesn't tax Chinese products. Is this the case? And how likely is it that Trump could perhaps trigger a trade war with China?

STEVENS: Well, at the moment Donald Trump, the campaign -- the campaign trail Donald Trump and the President-elect Donald Trump have been fairly much on the same page when it comes to challenging China and calling China a currency manipulator and threatening to actually slap these punitive tariffs on Chinese exports going to the U.S.

Forty five percent tariffs on Chinese goods coming in. If that were the case, most people I speak to, Rosie, say China would probably respond in kind, so you would end up with a tit for tat raising taxes on each other's goods which could open until a full on trade war. That is a real concern. Now as far as these taxes are concerned, that's a little bit harder to work out what exactly he's talking about. He says that to the Chinese slap these heavy taxes on U.S. goods going into China when China doesn't put any taxes on Chinese goods going into the state. It's difficult to say what he's talking about because he doesn't give any details.

There are tariffs and these are specifically aimed at exports going into China, broadly of around 5 percent, but the U.S. also has tariffs on impulse coming to the U.S. around about 3 percent, he could be talking about.

So, we're really not quite sure what he's talking about there. But the real fear, underlying all of this rhetoric as it is at the moment is that it could end up in a trade war between the world's two biggest economies and that would be bad for virtually every other country on the planet.

CHURCH: Yes. Certainly, a real concern, and these days checking the facts more important than ever before, it seems. Andrew Stevens joining us there live from Hong Kong. It is 4.44 in the afternoon. Many thanks, as always.

[03:45:03] VANIER: Still to come on CNN NEWSROOM, Donald Trump refuses to cut down his Twitter activity even after his on U.S. television.

CHURCH: Plus, a final good-bye to one of the 20th century's most controversial figures. More on the funerals for Fidel Castro.

(COMMERCIAL BREAK)

VANIER: Welcome back, everyone. Fidel Castro was laid to rest in Santiago de Cuba on Sunday. The country said goodbye to the man many consider its father figure.

CHURCH: But the final ceremony was nothing like the celebrations we saw last week.

Our Patrick Oppman reports.

PATRICK OPPMAN, CNN CORRESPONDENT: In Santiago de Cuba, known as the cradle of the revolution, tens of thousands of the people give Fidel Castro his last public sends off. The crowd of Castro admirers pledged their devotion to fallen leader until La Victoria Siempre, the eternal victory.

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

(BEGIN VIDEO CLIP)

RAUL CASTRO, FIDEL CASTRO'S BROTHER (TRANSLATED): 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 other buildings his memory monuments, bus, statutes and other similar forms of tribute.

(END VIDEO CLIP)

OPPMAN: Castro was lay to rest on Sunday in Santiago. A private ceremony for a leader who for six decades lived the most public life. Only members of the secretive Castro family and small number of guests were in attendance.

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

(FOREIGN LANGUAGE)

OPPMAN: And why doesn't he love it?

[03:50:03] (FOREIGN LANGUAGE)

OPPMAN: For hundreds of thousands led highways and roads across Cuba as Castro's ashes were transported pass, to worship the leader who changed the lives and island forever.

Housewife (Inaudible) Santos Garcia waited alongside the road for hours to catch a final brief glimpse of the Cuban leader she said she loved like a gather.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (TRANSLATED): Thanks to him we have what we have. Our education, health care that all thanks to the commander.

(END VIDEO CLIP)

OPPMAN: 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 islands best and brightest. As the massive memorial of Castro die down, Cubans are left alone to face an uncertain future.

Patrick Oppman, CNN, Santiago de Cuba.

(COMMERCIAL BREAK)

JAVAHERI: Five days into December and finally starting to fill like December across portions of the United States.

I'm meteorologist Pedram Javaheri.

And here's the glance across the United States where there wet weather is in place. The cool temperature is beginning to build in across parts of the northwestern area of the United States into western Canada.

Yes, some polar air beginning to really shift in across that region. And of course, the gulf moisture all pumping in as well. So, this is tremendous relief for the drought that's been in place across the southern U.S. And of course, the wild fire concern as multiple days of rainfall in store. Over the several days you paint the picture here you bring in up to potentially 50 to 100 more millimeters of rainfall on top of a drought stricken area.

We know that the latest numbers will come in later this week as far as the drought monitor is concern. And we expect some of the exceptional extreme drought to shrink just a little bit with the additional rainfall we've seen in recent days across this region.

So we go to 15 degrees in Atlanta, Look at this, the snow showers flying around the Montreal, one below. It seems go at Winnipeg. Vancouver a mix of rain and snow attempts down about 3 degrees and still getting plenty of moisture and the cold air that's coming in around the northern portion of the United States.

Parts of Seattle out towards Portland could get five centimeters of fresh snow, and the average say about 15 to 20 centimeters per year, so certainly an unusual event for them. And notice, again, the only area of active weather is going to be southern United States there with thunderstorms expected around Managua. Belize City coming in around 31.

(COMMERCIAL BREAK)

CHURCH: Welcome back everyone. Well, Saturday Night Live is not letting up on Donald Trump.

[03:55:03] The comedy show skewered the president-elect once again on Saturday.

VANIER: And this time they were making fun of Trump's foreign policy experience or lack thereof.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Mr. Trump, please, let's get to work, OK? This is an extremely dangerous world. Pakistan is increasingly unstable?

ALEC BALDWIN, SNL CAST: Should I call them?

KATE MCKINNON, SATURDAY NIGHT LIVE SHOW CO-HOST: No.

UNIDENTIFIED MALE: North Korea is still doing nuclear test?

BALDWIN: Should I text them?

MCKINNON: No.

UNIDENTIFIED MALE: And Iran is incredibly volatile.

BALDWIN: Should I have Ivanka send them some shoes?

MCKINNON: Maybe.

UNIDENTIFIED MALE: Sir. UNIDENTIFIED MALE: OK, I hate to be rude, but this is insane. All

right. Your inauguration is just seven weeks away.

UNIDENTIFIED MALE: Sorry. I just hadn't heard that put in weeks before.

(END VIDEO CLIP)

CHURCH: Well, he wasn't happy. OK. So, Trump seeing senior stuff, also fair game for the SNL's writers and you saw actress Kate McKinnon there as Kellyanne Conway.

VANIER: But on the most recent strategist, Steve Bannon was singled out for special ridicule.

(BEGIN VIDEO CLIP)

BALDWIN: I'm ready to start this briefing.

MCKINNON: Oh, God.

BALDWIN: Where is my chief strategist Steve Bannon? I can't start without Steve Bannon.

MCKINNON: He's walking in right now.

UNIDENTIFIED MALE: Sorry, I'm late.

(END VIDEO CLIP)

CHURCH: There it is. Well, one viewer who was not laughing during the skit was Donald Trump.

VANIER: So, he responded on Twitter calling the show bias and unwatchable.

All right. That's it for the show. I'm Cyril Vanier.

CHURCH: And I'm Rosemary Church. Early Start is next for our viewers here in North America. And for the rest of our viewers do stay tuned for news with Max Foster in London. Have yourself a great day.

[04:00:00] (COMMERCIAL BREAK)