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China Ambassador Appointment Could Ease Concerns; Wresting Magnate Picked As Small Business Chief; Dow Up Over 1,200 Points Since Trump's Election; U.S. Stocks Surging To New Records; Italy's Prime Minister Resigns After Referendum Defeat; Isis Hostage John Cantlie In New Propaganda Video; Eastern Aleppo Apocalyptic As Syrian Troops Move In; Russia Ramping Up Security Against Hacking; Merkel's Open Border Policy Becoming Liability for Re-Election; The Rise of "Breitbart News". Aired 1-2a ET

Aired December 08, 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] JOHN VAUSE, CNN NEWSROOM ANCHOR: You're watching CNN NEWSROOM live from Los Angeles. Ahead this hour, first picks now carrots for China, as the U.S. President-elect picks a familiar face for the next U.S. Ambassador in Beijing.

A Syrian troop has closer to regaining total control of Aleppo. The Syrian President dismisses talk of a ceasefire.

And investigators working to determine what caused a plane crash in Pakistan, which killed all on board.

Hello, everybody, great to have you with us. I'm John Vause. We're now into the second hour of news from L.A.

After months of firing anti-China rhetoric, President-elect Donald Trump has chosen Iowa Governor Terry Branstad, as his ambassador to Beijing. Branstad is a familiar face to many of the capital, and he calls Chinese President Xi Jinping, an old friend.

Troubles are named, retired General John Kelly is head of Homeland Security, a climate change denier Scott Pruitt is head of the environmental protection agency, and Linda McMahon the former CEO of World Wrestling Entertainment as the small business administration chief.

Let's get to our panel now. Joining me here in Los Angeles, Talk Radio host, Ethan Bearman; CNN Political Commentator, Lanhee Chen joins us from Menifee, California; Malika Kapur is in Hongkong; Matt Rivers also standing by live in Beijing.

So, Lanhee, we had a diplomatic dust-up with China earlier in the week over that call from the Taiwanese Leader, which now look a big set up by the Trump Administration. Now, we have this appointment of Branstad, a man who know Xi Jinping and the Chinese know him as well. What's the message coming from Trump?

LANHEE CHEN, CNN POLITICAL COMMENTATOR: I think the message coming from Trump, John, is that the bilateral relationship between the United States and China is going to be very important. Terry Branstad and President Xi Jinping do go back a long way. They were friends actually when Xi was but a young public servant in China, they met in Iowa. And so, they've got a personal relationship that I think ultimately will in order the benefit of both the Americans and the Chinese, as they continue efforts to improve relations of the next couple of years. So, I think it's actually a very savvy pick, and one that will prove to be valuable in the bilateral relationship between the U.S. and China.

VAUSE: So -- but Ethan, you're like so many other people around the world, and in the United States, it seems the Chinese are also left guessing what Donald Trump's real intentions are.

ETHAN BEARMAN, TALK RADIO HOST: Yes, I mean, that ultimately is the whole problem here. I agree with everything that Lanhee Chen just said about Governor Branstad, you know, it is a good choice but what is the message, the tweets were very upsetting, you know, talking about the currency manipulation, talking about the military build-up. Well, I think they were actually factually accurate about China. Which way is Donald Trump going in this? And is this the new world of diplomacy under President-elect Trump is keep them guessing?

VAUSE: Lanhee, is that actually not a bad strategy when dealing with China, keep them guessing, so that off keel leverage out of it?

CHEN: Yes, I think the key thing to remember about how Donald Trump views this is, is he views this through the lens of leverage -- what's going to create the greatest amount of leverage in the relationship with the Chinese. If you look at Donald Trump's career in business -- his career in real estate, it's been all about finding those points of leverage, and I think, ultimately, his goal here is a little bit to keep the Chinese on their toes. But he wants them to recognize that; A, he's not a push-over, and B, he can be a little bit erratic and unpredictable and in the conduct of foreign policy, that isn't always a bad thing.

VAUSE: OK, let's find out what the officials in Beijing are saying. Matt Rivers live this hour. So, Matt, has there been any official reaction coming from the Chinese government to this announcement?

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Well, John, as you know, the Chinese government rarely makes specific comments about specific people within American government. They usually rely on state media here in China to direct more subtle messaging. And so over the last couple of days, given what you heard the President-elect say and then subsequently tweet about China. There's been a lot of anti-U.S. rhetoric in state-ran media, but about this new appointment of the Ambassador Branstad or soon to be Ambassdor Branstad, the Chinese government was very, very opaque -- translucent actually, transparent about how they feel about him. It was at a press- conference yesterday at the Ministry of Foreign Affairs that the spokesman said that they are looking forward to having the Governor of Iowa come here to Beijing.

(BEGIN VIDEOTAPE) LU KANG, CHINESE FOREIGN MINISTRY SPOKESMAN (through translator): Firstly, I want to say that Governor Branstad is an old friend of the Chinese people. We welcome him to play a greater role in advancing the development of China--U.S. relations.

(END VIDEOTAPE)

[01:04:53] RIVERS: And so, he used the words in Chinese, "lao peng you", which is actually a saying here that really holds a lot of weight. It's something that people don't always say especially government officials that means "old friend". That really does signify that they have a lot of respect for Governor Branstad, that are looking forward to working with him. But, John as we've talked about already there will be a lot on Governor Branstad's plate once he arrives in Beijing, from everything from currency manipulation to the South China Sea, there will be a lot to talk about between him and his colleagues as his fellow diplomats here in Beijing.

VAUSE: Good they're on friendly terms then. Matt, thank you --Matt Rivers live there for us in Beijing. Lanhee and Ethan, one of the appointments that has raised a lot of eyebrows the last 24 hours is to the small business administration. Linda McMahon, the World Wrestling Entertainment. A lot of people may not be familiar with who she is, so here's a reminder.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Ladies and gentlemen, the CEO of World Wrestling Entertainment, a class woman, Linda McMahon. And I forgot to say, thank you.

UNIDENTIFIED MALE: Hey! Oh, no! Oh, my god!

LINDA MCMAHON, CEO OF WORLD WRESTLING ENTERTAINMENT: You're fired.

UNIDENTIFIED MALE: Oh, my gosh.

(END VIDEOTAPE)

VAUSE: Colorful to say the least, so Lanhee we have a situation now, though, that McMahon here another billionaire in cabinet.

CHEN: Well, right, I think first of all, it's not unusual for Presidents to want to select people whose backgrounds are comfortable with. In Linda McMahon's case, she's a businesswoman that did lead a pretty effective turnaround of the World Wrestling Organization. And I think she also happens to be somebody who has dipped her toe in politics herself. She ran for Governor of Connecticut recently. And has been regarded by many in republican circles at least, as somebody who increasingly could be involved in politics. So, her appointment to the small business administration, I think, is consistent with her desire to be more involved in politics.

And at the end of the day, let's be honest, this is the small business administration, which not exactly an agency that's well reputed for having done a whole lot recent memory. VAUSE: Very true, but Ethan, she did gave $6 million to approach

Trump super pack. Ethan, did she buy this appointment?

BEARMAN: Yes, and on top of it all. The good news as Lahnee Chen just said, at least it's the small business administration, FEMA. So, unlike Michael Brown, she can't damage the lives of tens and thousands of people in a disaster. On the other hand, the WWE is a big business, not a small business. And small businesses are an absolute back-bone of employment in our country and we need somebody who's actually connected with the small business community if you're actually going to want to help them through the small business administration.

VAUSE: OK. In case you may have missed it, Time Magazine named Donald Trump "Person of the Year". And in the interview, he reportedly told his chief of staff, "I want to get a list of companies that have announced they're leaving. I can call them myself, five minutes apiece. They won't be leaving". Even if Donald Trump is going to call every company the plans to leave United States, he's going to be making a lot of phone calls.

BEARMAN: That is a lot of phone calls! And this gets right back to the idea, the actual definition of Crony Capitalism, is inserting yourself into individual companies whether it's good or bad, but that is not the role of the President. And what's interesting is, my friends on the right have said this about President Obama during his administration. President Clinton during his administration, but when it's one of their own it seems to be OK. I'm consistent in saying Crony Capitalism, is a bad thing across the board.

VAUSE: And Lanhee, it does sound like a -- kind of a mafia boss. Give me five minutes, I'll sort them out.

CHEN: Yes, I mean -- look. I think that the reality is, as Ethan eluded to both Republicans and Democrats have engaged in this practice, Governors have engaged in this practice when they talk about keeping jobs in a certain state with a competition with other Governors to keep jobs in that state. And it is the case in the past democratic and frankly, republican presidents have both engaged in this sort of activity. It doesn't necessarily mean that it's the right activity, but certainly it is the case that for Trump at least -- part of his brand is being able to keep these jobs in the U.S., it's something that he's going to do and I don't expect that to change given how common it is in politics.

VAUSE: Or Wallstreet. Y6

(CROSSTALK)

BEARMAN: Lanhee, can you -- can you admit, though -- this is the definition of Crony Capitalism. This is literally -- I mean, you're at Stanford at the Hoover Institution that is the definition when a political person is inserting themselves in specific company's outcomes, that is Crony Capitalism.

CHEN: Correct. Correct. Well, look, Crony Capitalism is when government makes a decision to direct funding to a particular company or particular situation. It's what President Obama did when threats with lots of other people have does this. I'm not opining about whether it's right or wrong -- I think personally, from my perspective, I prefer government not get involved in this way. My point is simply what's good for the goose is good for the gander. I think that's how Trump sees it.

[01:10:03] VAUSE: OK. Well, Wall Street suddenly sees it's good. If you look at what's happened to the Dow since the election, it has surged, it was up almost 300 points. On Wednesday, it's up more than 1200 points since November 8th. Let's go to Malika Kapur in Hong Kong to explain what is driving all of this. Is this simply Trump euphoria right now, Malika.

MALIKA KAPUR, CNN INTERNATIONAL CORRESPONDENT: It is pretty much the Trump factor, John, and it is driving up markets not just in the U.S. but around the world. It's very much the main reason markets are on fire everywhere including here in Asia. You know, markets in Asia usually do take their queue from what's happening on Wall Street, and the last four weeks, it's been the same story.

So, let's look at the numbers and let's look at the stock market in Japan. The Nikkei has been up around eight percent since November 8th. Here in Hong Kong, stock up about two and a half percent, and in China, we've seen a rally there as well, and the Shanghai Composite was up about five percent in the month of November.

Remember, China took a battering back in February, but it's recovered a lot of those losses and is in a positive territory right now as well. But you really have to look at the currency market to see the real impact that President-elect Donald Trump has had. Right after November 8th, we saw investors pouring their money into the Dollar. And if you'd look at currency charge, you'll get a good idea what's been happening. The Yen down about 10 percent versus the Dollar since November 8th, and the Yuan down about half a percent. So, you are seeing the Trump effect not just in stock markets but also very much so in currency markets with many investors. Now, pretty confident, that the U.S. Federal Reserve will raise interest rates later this month, and now they have a very good reason to park their money in the dollar. John?

VAUSE: OK. Malika, thank you for the update. Lanhee and Ethan, we're talking about the, you know, the jobs that Trump has promised to bring back to the country. Part of that was a very public Carrier deal for the air conditioning plant there in Indiana. The Union boss there, Chuck Jones, he was on CNN a few hours ago, and he criticized Trump, because Trump, he said did not deliver on the promise who was half-heart. Listen to this.

(BEGIN VIDEOCLIP)

CHUCK JONES, PRESIDENT OF UNITED STEELWORKERS LOCAL 1999: And you hear better than 1100, where jobs retained in Indianapolis, so those folks probably had to thin, "OK, I'm keeping my job. Only to find out last Friday, well, now, there's 550 being laid off." Now, that never was mentioned by anybody. Trump, Pence, or any of them never mentioned about 550 moving to Monterrey, Mexico.

(END VIDEOCLIP)

VAUSE: 20 minutes after that interview went, where Trump was out tweeting -- he actually had a nasty tweet about Jones, he said this, "Chuck Jones who is President of United Steelworkers 1999, has done a terrible job representing workers. No wonder companies flee country." Lanhee, we also had a similar situation that is a story on Fox News about flag burning, Trump tweeted about that, then we had people -- you know, had to be thrown in jail for flag burning, lose their citizenship. It just seems totally reactive right now in some respect with the President-elect.

CHEN: Yes, you know, I think Twitter is an interesting forum for our President-elect or for a sitting President. And one will wonder whether he will continue to engage in the same kind of activity on Twitter once he actually becomes President. But look, one can't deny that this is a medium of communication he has used to his advantage, and it's something that perceives as being part of his brand now. So, I wouldn't expect necessarily to see a change anytime soon. It makes for entertaining television to be sure, but you know, one wonders as I said whether this is something that can continue as he goes into office, whether he can really sustain this pace and this tone.

VAUSE: Well, the other extreme, we had the President-elect on the Today Show, and he head this about face on President Obama, talking about their great chemistry, their great friendship. Listen to this.

(BEGIN VIDEOCLIP)

DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: I really like him, we have, I think, I can say at least for myself, I can't speak for him, but we have a really good chemistry together. We talk, he loves the country. He wants to do right by the country, and for the country. And I will tell you, we obviously very much disagree on certain policies and certain things, but, you know, I really like him as a person.

I've asked him what he thinks are the biggest problems of the country, what are some of the greatest assets going forward, and we have a very good dialogue. And I must tell you, you know, I never met him before this, and I never spoke to him before this. I really -- I do like him. I love getting his ideas.

(END VIDEO CLIP)

VAUSE: Ethan, it's quite the turnaround.

BEARMAN: I mean, you know, in the world of philosophy, there's this idea of multiple ethical selves. We don't just have multiple ethical selves here with Donald Trump, we have multiple Donald Trumps. Which one shows up today? The guys that's going to attack Alec Baldwin because he's a comedian, he's an actor on a comedy show Saturday Night Live, is he going to attack the head of the steelworkers union, he's going to attack President Obama -- Oh, wait! No, no. President Obama's wonderful, we love him, he's a great guy. [01:15:00] This is what is so absolutely unsettling about Donald Trump

is you have no idea, which Donald Trump is going to show up today. And Twitter, is this unbelievable medium for him to show these different personalities. Which personality is going to negotiate with the Chinese in the first trade deal? This is what is frightening to me.

VAUSE: Lanhee?

CHEN: Yeah. Look, I think that part of this is what happens when you actually get elected president and figure out that you've got to work together with a lot of other people including President Obama. I do agree it's quite a stark turnaround for him, and they have very bitter and divisive campaign, but I think this is part of Donald Trump's effort to show that the governing side of Donald Trump decide that we're going to see once he takes office maybe different from the side that he showed during the campaign. I don't think that in particular is unusual (INAUDIBLE) the extent or the extremes are unusual, but certainly, the desire to govern differently from the way one campaigns is not extraordinary or different.

VAUSE: We'll just have whiplash trying to keep up right now. Lanhee, thanks you so much. Ethan, as well, also Matt Rivers in Beijing, Malika Kapur in Hongkong. Thanks to you all.

BEARMAN: Thanks John.

VAUSE: Well, Matteo Renzi says while he's stepping down as Prime Minister, his party should be proud of what they've achieved. Renzi resigned on Wednesday. Earlier this week, voters resoundingly said no to his proposed changes to the constitution. Despite the defeat, he says the country now has less taxes and more rights.

(BEGIN VIDEO CLIP)

MATTEO RENZI, ITALIAN PRIME MINISTER (through translator): With the broadest and most grateful smile, I'll go to the hill to formally resign. I know that among us, some celebrated enthusiastically, and not very elegantly. Style is like gone upon the earth's courage, but I don't judge or blame them, I push back. I also raise my glass to celebrate this moment, because when appointed by the Democratic Party, you're lucky enough to govern the most beautiful country in the world. You have no right to stop.

(END VIDEO CLIP)

VAUSE: Renzi will stay on in a care-taker role until a new government is put in place. South Korean Lawmakers are expected to hold a vote on Friday on a motion to impeach President Park Geun-hye. They've been in Seoul preparing for this vote. Ms. Park has been linked to a corruption scandal. There, the scene is right now in parliament. 3:17 in the afternoon in Seoul. Opponents have been pressuring Ms. Park to step down for weeks. She has denied any wrongdoing, but said she will resign if that's what the national assembly decides. A short break. When we come back, Syria's President says the war will

go on even after his goal to take Aleppo. Rebels are losing their grip on the old city.

Also ahead, Angela Merkel tougher turn on migrants, why some blame the German Chancellor and her open border policy (INAUDIBLE).

(COMMERCIAL BREAK)

[01:19:50] KATE RILEY, CNN WORLD SPORT ANCHOR: I'm Kate Riley with your CNN WORLD SPORTS Headlines. In the Champions League on Wednesday, 2-2 draw between Real Madrid and Borussia Dortmund with enough to see the German five finish top of the group. Two goals from Karim Benzema were canceled out by the efforts from Pierre-Emerick Aubameyang and Marco Reus. The Bundesliga Club had a record-breaking group stage scoring a total of 21 goals. The most any side have scored at this stage in the competition.

Elsewhere and in Group G, Porto hosting group winner Leicester City in a must win for the Portuguese side in order to advance to the knockout stage. It would only take six minutes for the host to break the deadlock. Andre Silva leading the charge with a brace on the afternoon, as it ends 5-0. This makes it the worst ever defeat by an English club in the Champions League.

So what started with 70-18 is being whistled down to just 60. The draw for (INAUDIBLE) will be made on Monday at the UEFA headquarters in Switzerland. There will be two seeding pots, one made up by the group winner and the other of runners up. Here's a look at those group table toppers. Remember, they will not face another first place team in the rounder 16. But they will face the team from this slot, the group runners up and some big names in there, too. Real Madrid, Bayern Munich, Manchester City, and PSG. And that's a look at all your sports headlines, I'm Kate Riley.

(COMMERCIAL BREAK)

JOHN VAUSE CNN NEWS HOST: ISIS hostage John Cantlie is shown in a new propaganda video. The first time he's been seen alive since July. The British journalist appears gaunt. Believed to have been -- this video is being recorded in the last few days. He talks about how coalition airstrikes have harmed residents in Mosul, Iraq. ISIS has used Cantlie in similar propaganda videos since he was taken hostage in Syria four years ago. From defiant just a few years ago, Syrian rebels are now asking for a ceasefire as they face total defeat in Aleppo. As Fred Pleitgen reports forces love the President Bashar al- Assad and now taken Aleppo's old city.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: This is what a rebel desperation looks like during the Aleppo nights. Firing at jets in the skies, unable to stop them from dropping their deadly load. And this is what the rebels defeat looks like when daylight comes. Thousands of civilians fleeing the old town of Aleppo, only hours after government forces took most of it back. Among them, Najua with her seven children one of them her baby, Belah. "When we left, there was a lot of shelling behind us, a lot of shooting in front of us and the airplanes above," she says. "We barely managed to get out." Most seem weak and malnourished, some resting finally in safety in this former school. The smallest a baby girl Ghazal is only seven days old, born right as the battles were at their worst. It's really remarkable some of the scenes that we're witnessing here, hundreds of people have already come across the border crossing between the eastern and western Aleppo and many of them are taking shelter in buildings like this one, carrying only the very few possessions they could take as they fled.

Soldiers take us to the places they recaptured from opposition forces only hours before. We see Syrian troops evacuating weak and elderly. And rebel barricades showing just how intense the fighting was.

Just look at all of the destruction here. We're actually in the old town of Aleppo right now. And this entire area until a few days ago was right on the front line.

While this may not be the end of the opposition's fight in Aleppo, many of those fleeing describe the rebels' morals sinking and the harrowing conditions in the besieged areas.

"We didn't have food and barely any bread," this man says. "We were eight people, they would only give us two loafs of bread every two days. That was it for all of us."

While much of Eastern Aleppo has been reduced to rubble, the one thing expanding was the cemeteries. This one ran out of space as the bodies kept coming. Now, that much of Eastern Aleppo has changed hands, Syrian soldiers plant their flag on the ruins of the place they've just conquered. Fred Pleitgen, CNN, Aleppo.

VAUSE: Talks are on again between the U.S. and Russia for a ceasefire in Aleppo. U.S. Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov met on Wednesday, and will again in the coming hours. They are working on a deal to end the fighting and to bring Humanitarian aid into the city. Joining us now from Moscow is CNN Contributor and former Moscow Bureau Chief, Jill Dougherty. Jill, thanks for being with us. The Syrian President Bashar al-Assad told the Al-Watan newspaper, he was asked about the possibility of a ceasefire, he said this, "It's practically non-existent, of course. The Americans, in particular, are insisting on demanding a truce, because their terrorist agents are now in a difficult situation." It seems the Syrians and the Russians right now holding all the cards and they know it. Do the -- do the United States -- does the United States have any options right now?

[01:25:13] JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: I don't see a lot of options, John. I mean, just look at the situation. The opposition is totally in disarray. The City of Aleppo is almost completely taken over by the forces of the government, and it would appear, you know, the talks continue between Secretary Kerry and Minister Lavrov, but the idea of having a truce has become a problem, because Russia continues to say the truce will only allow the opposition to try to reform.

But even at this point, it doesn't look as if the opposition really can reform and fight again. So, at this point, I do think you'd have to say that Russia and the Syrian government really do hold all the cards.

VAUSE: On Monday, there was a mortar attack on a Russian field hospital in Aleppo. Has that harden Moscow's position in any way?

DOUGHERTY: You know, I don't think it's really by itself has hardened. There's been a lot of real sadness and perhaps some anger, but that is not the driving force here. I mean, the driving force here is the bigger picture that Russia wanted to rescue Assad, which they apparently have done now. They want to clear the decks in Eastern Aleppo of all of the fighters and terrorists which they joined together in one group, and that is their objective. And I think if there's any message that's coming out of the deaths of those nurses, which are very sad, is really that Russia is now making the case that they have really saved the day for the rest of the world against the terrorist, and that the west doesn't pay any attention to that, doesn't value what they have done. I mean, that's really it. But right now, the fight or the objective is to simply take over Aleppo.

VAUSE: You know, in that newspaper interview with Assad, he also said "It's true that Aleppo will be a win for us, but let's be realistic. It won't mean the end of the war in Syria. But it will be a huge step towards this end." Is Russian support for Assad open-ended or will they start to roll it back once Aleppo has been retaken?

DOUGHERTY: No, I think they're in it to keep make sure that Assad totally wins. They would like to bring that obviously Aleppo to an end. But, you know, now, Russia has solidified its position. They had rescued Assad, they are very much -- Russia is very much perceived as a force in the Middle East, an important player -- certainly, one of the most important players right now. They have a -- as we say, "a seat at the table" in any discussion about peace at the end.

Assad himself says he wants an improved -- I should say increased relationship with Russia after the fighting is over. So, yeah, I think again, Russia has solidified and it would appear at least at this point, they have solidified their objectives in Syria

VAUSE: Jill, always good to speak with you. Thank you so much, Jill Dougherty, live in Moscow.

We'll take a short break. When we come back on NEWSROOM L.A., the Pakistani plane crash wish has no survivors. Ahead, we'll tell you what we're learning about the plane and the crew.

Also, Russia is investing big in Cybersecurity. President Putin says its protection against an attack but the country which has a history of hacking draws some concerns.

(COMMERCIAL BREAK)

[01:32:10] VAUSE: Welcome back, everybody. You're watching CNN NEWSROOM live from Los Angeles. I'm John Vause.

Let's check the headlines.

(HEADLINES)

VAUSE: International teams will help investigate the crash of a Pakistan International Airlines flight. All 47 people onboard were killed. It went down in a remote area near Abbottabad in northwest Pakistan. The pilot made a mayday call saying he lost control of one of the two engines. The flight took off from a town popular with tourists and headed to Islamabad when it went down.

Sophia Saifi is there now and joins us life.

Sophia, we're being told that a trainee was in the cockpit at the time of the crash. That raises the question, who was in control of the plane.

SOPHIA SAIFI, CNN PRODUCER: John, yes, there was a lot of speculation as why there was a third pilot in the plane and speculation wondering whether there was a pilot or wasn't a third pilot. I spoke with the spokesperson of Pakistan International Airlines, who confirmed that yes there was a third pilot in that cockpit in that plane but he did specifically say it should be known across the board that that pilot was not flying the plane. The captain was flying the plane. The pilot was a fully trained pilot. He was only there for routine training and that is not unusual. That is one conspiracy theory that has been put to rest by Pakistan International Airlines. However, there is an investigation that will be started and more information will inevitably come out accordingly.

VAUSE: Sophia Saifi there in Islamabad with the latest. Thank you, Sophia.

Rescue efforts continue in Indonesia after Wednesday's powerful earthquake. The 6.5 tremor struck in Aceh Province struck while many were preparing for morning prays. Officials say it killed 102 people including young children.

Russian President Vladimir Putin is flexing his cyber muscles and ramping up his country's security defenses against computer hacking.

But as Brian Todd reports, not everyone is convinced it's purely defensive.

(BEGIN VIDEOTAPE)

(MUSIC)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The man whose hacking teams are accused of cyberattacks on the Democratic Party in the midst of a U.S. election is bracing for a similar attack on him. Russian President Vladimir Putin has put out a new plan against what the Kremlin calls stepped-up cyberattacks and, quote, "information and psychological aggression." The plan calls for better forecasting, detection and evaluation of cyberthreats, quote, "including threats to the armed forces of the Russian Federation in the field of information."

[01:35:19] UNIDENTIFIED MALE: He's very worried. He sees conspiracies everywhere. He's an ex KGB officer. He sees that the United States and our allies and our news services are trying to poison the minds of the Russian people against him and trying to undermine Russian democracy.

TODD: But American leaders claim they are the victims of attacks from Putin. The Obama administration has named the Putin's government for the Democratic Party hacks and the theft of Clinton campaign e-mails posted on WikiLeaks. The White House has also accused Putin and his hackers of trying to destabilize the American political system. Putin has denied all of it. And in recent days, Putin has released a not- so-veiled warning.

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translation): Unlike our foreign colleagues, we are not seeking and have never sought enemies. We need friends. But we will not allow anyone to infringe upon or ignore our interests.

TODD: U.S. officials are looking at all ways to respond to the election hacks, retaliatory cyberattacks, they tell us, are among those options.

How specifically could America retaliate?

UNIDENTIFIED MALE: The U.S. Cyber Command at Fort Mead has a team that is looking at what the Russians are doing not to collect intelligence on it but to be ready to disrupt it.

TODD: Putin's new plan does not mention cyber strikes that could be already underway from the U.S. Now analysts have a warning for America's allies.

UNIDENTIFIED MALE: We have got elections coming up in France and in Germany, and Putin has preferred outcomes there just as in the United States and in the Brexit vote.

TODD (on camera): Experts say we can expect Putin to escalate cyberattacks on allies, especially against German Chancellor Angela Merkel, who is up for re-election next year.

Will the cyber Cold War between Putin and America escalate? One analyst says, given the bromance between Putin and President-elect Trump, Putin may diminish his cyberattacks on the U.S., at least until that relationship goes south.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

VAUSE: Pope Francis is using strong language from ancient Greek to take the media to task. During an interview with a Belgian magazine, he said, "The media should be very clear and transparent and not fall prey to the sick, as in of (SPEAKING FOREIGN LANUAGE), which is always wanting to communicate and ugly things, even though they may be true." He went on to say that, "People who consume the information are engaging in (SPEAKING FOREIGN LANGUAGE)," the consumption of feces.

It was an early and loud supporter of Donald Trump and now a U.S.- based conservative website is looking to expand. Next on NEWSROOM L.A., "Breitbart News" is looking to take on Europe.

(COMMERCIAL BREAK)

[01:41:55] VAUSE: Angela Merkel's open-border policy is looking to be a political liability for her re-election bid. The German chancellor is facing pressure from her party and the public over the refugee crisis, and two horrific rape and murder cases allegedly by newly arrived migrants.

Here's Atika Shubert.

BVGT

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT (voice-over): A grisly crime, a woman raped and murdered, and her body found in a nearby river. The attack happened in October. These pictures were blurred by local TV out of respect for the family.

Police, citing DNA evidence, have arrested and charged a 17-year-old Afghan refugee who arrived in Germany last year. The case has played into public fears of a refugee crime surge.

Merkel is facing pressure from voters and her own party for allowing more than 890,000 asylum seekers into the country last year.

Initially, Germans opened their doors, and there was a special word for it, (SPEAKING FOREIGN LANGUAGE).

But the numbers began to strain social services. And then came New Year's Eve in Cologne. Police reported mobs of, quote, "North African, Middle Eastern men," sexually assaulted hundreds of women in the fireworks chaos.

Suddenly, refugees no longer seemed welcome, often viewed with suspicion. Clashes broke out between residents and refugees in east Germany. Arson attacks on refugee housing skyrocketed. Support for anti-immigration far-right parties surged.

National statistics show some crimes, like burglaries and petty offenses have gone up since the beginning of the year, but less than 1percent of sex crimes and even fewer homicides are tied to immigrants of any kind.

Still, Merkel is defending her decision to open Germany's doors.

ANGELA MERKEL, GERMAN CHANCELLOR (through translation): I have also asked you for a lot. I know that very well and I cannot promise the demands in the future will be any less because we have to do what the times demand from us.

SHUBERT: Merkel needs to show she can win back public confidence, but with brutal crimes like this in the headlines, she faces an uphill battle.

Atika Shubert, CNN, Berlin.

(END VIDEOTAPE)

VAUSE: Right now, across Europe, political parties from the far right with their anti-immigrant, anti-globalization and nationalist policies are on the rise. And while many see that as a reason for concern, "Breitbart News" sees only opportunity. The conservative website was an early backer of Donald Trump and its popularity has surged over the past year. And now the company plans to launch sites in France and Germany. It's already up and running in Britain.

CNN senior media correspondent and host of "Reliable Sources," Brian Stelter, is in New York for more on the rise of "Breitbart News."

Brian, the "Breitbart" formula, the combination of clickbait and outrageous headlines, have worked in the U.S. Will it work in Europe?

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT & CNN HOST, RELIABLE SOURCES: There are reasons to believe it can work well in France and Germany where the company is planning to expand. There is a "Breitbart U.K.," London based. It was supportive of the Brexit vote and the end of the party used that content, used the stories during the campaigning there in Britain. I think we could see similar moves in France and Germany and potentially other countries as well.

[01:45:] VAUSE: In some ways, the move seems at odds with the ethos of the "Breitbart" brand.

STELTER: In the United States, the brand is specifically a nationalist brand, some have also tied it to the Alt-Right. Steve Bannon who was the head of "Breitbart News" now Donald Trump's chief strategist said the site is a platform for the Alt-Right.

But there are versions of this that can apply in other countries. "Breitbart" has a clear operational model to win audiences by appealing to an anti-globalist and anti-immigrant sentiment and aligning itself with an opposition party. I thought that comment hit the nail on the head. "Breitbart" can latch on to these movements in specific countries, appeal to the movements and the people who believe in them and try to persuade minds at the same time.

VAUSE: "Breitbart" has run into trouble on the revenue side. Kellogg's has pulled advertising after consumer complaints. In Germany, companies like BMW have black-banned the site as well. Is this a problem for "Breitbart" moving forward?

STELTER: You'll going to continue to see issues with advertisers attempts at boycotts. We have seen that in the U.S. In recent days on the heels of the Kellogg decision to persuade others to remove the ads. Whether big, global Fortune 500-type companies are willing to advertise or not, there will always be companies and sponsors willing to line up with the brand. You think about FOX News and talk radio in the U.S., still has some advertisers despite attempts at boycotts. Although is it a challenge, it is a headwind for "Breitbart" as it moves into new countries. It can find advertiser support. And there are other ways for them to make money. They have created online stores and tried to sell merchandise, and monetizing the site is clearly not the only intent or the only goal for its creators and leaders, people like Steve Bannon. I talked to Bannon a couple months ago. He was bragging, celebrating the success of "Breitbart" in the U.S., and tying it to nationalist movements in Europe. It was clear in his mind Trump, and what was happening in the U.S., was related to other countries.

VAUSE: I guess with that in mind the revenue from advertisers isn't as crucial because it's backed mostly by private backers. Is it fair to say the company is driven by an ideological motive as opposed by a profit motive?

STELTER: I think they are driven by both. As opposed to FOX News which makes billions of dollars in revenue in the United States, that's not what "Breitbart" does today and will not do tomorrow. It's a different kind of model. I think of it, once Trump is in the White House, the closest thing that Trump will have to state-run media. The site is pro-Trump in the United States. And that formula can clearly apply in other countries.

VAUSE: Brian, thank you for being with us.

STELTER: Thank you.

VAUSE: Much appreciated.

Next here on NEWSROOM L.A., the story of a 95-year-old veteran making his first trip to Pearl Harbor since that day which will live in infamy.

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[01:52:38] VAUSE: The U.S. is marking the 75th anniversary of Japan's attack on pearl harbor. Ceremonies in Hawaii honored the more than 2500 people who died in the attack. And later this month, Prime Minister Shinzo Abe will be the first Japanese leader to visit the site.

One former sailor who lived through that fateful day hasn't been back to Pearl Harbor, until now. He decided at age 95 to attend the memorial.

CNN's Kyung Lah talked to him about the painful memories.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): Ask B.C. Wilborn the secret to living to age 95 in good health, he'll say love of a vibrant hobby, like horse racing, and a lot of experience in surviving.

(on camera): Do you think, I'm a war hero?

B.C. WILBORN, WORLD WAR II VETERAN & FORMER NAVY FIRST CLASS PETTY OFFICER: Oh, no, no. Gosh. Just the opposite. You think what you could have done, and didn't do.

ANNOUNCER: The Japanese have attacked Pearl Harbor.

LAH (voice-over): 75 years ago, Wilborn stood aboard the "USS Maryland" as the Japanese launched an early morning attack on Pearl Harbor. Wilborn just a 20-year-old first class petty officer in the Navy.

(on camera): What did it feel like to be in the middle of that?

WILBORN: I didn't have no fear. I see everything happening, and it just seemed like -- unreal.

LAH: Daughter, Edie, and her husband, Ron.

EDIE STANTON, DAUGHTER OF B.C. WILSON: They pay a big price for us to be free.

LAH: How old are you here?

WILBORN: I was 24, 25.

LAH: They had pictures and saw their father's purple heart but he never talked about World War II, until, for reasons no one can explain, a few years ago --

(on camera): Just started talking?

RON STANTON, SON-IN-LAW OF B.C. WILBORN: Just started talking. Sad to say, I didn't have a tape recorder to get it.

LAH (voice-over): And he hasn't stopped talking, Wilborn sharing horrors, the men he couldn't save aboard the capsized "USS Oklahoma."

WILBORN: You hear them tapping on the wall and wonder, I guess thinking they're going to get rescued. After about two days, maybe, on the third day, stopped. No more.

LAH: More than 400 men died on "The Oklahoma."

(on camera): 75 years later, you can still recall that sound?

WILBORN: Oh, gosh, yes. And I thought it was about the sad evidence thing I saw in the Navy. I was -- I don't know. Seemed so helpless.

[01:55:03] LAH: Unlike many survivors, Wilborn never went back to Pearl Harbor. That's changing this year. 75 years later, he's returning for the first time since that day of infamy.

(on camera): What changed? Why did you start thinking about it?

WILBORN: It's a sad day, and -- I don't know. You try to get it out of your mind and then, it don't go.

LAH (voice-over): So this survivor faces one last battle of his own memories.

Kyung Lah, CNN, Collinsville, Illinois.

(END VIDEOTAPE)

VAUSE: You're watching CNN NEWSROOM live from Los Angeles. I'm John Vause. We'll be back with more news right after this.

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VAUSE: This is CNN NEWSROOM live from Los Angeles.

Ahead this hour ---

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[02:00:03] VAUSE: Hello, and welcome to our viewers all around the world. I'm John Vause. We're now in the third hour of NEWSROOM L.A.