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CNN NEWSROOM

Ransomware Attack Affects Global Businesses; Trump Administration's Warning To Syria; Senate Republicans Delay Health Care Vote; Massive Cyber Attacks Hits Europe, U.S.; Ukrainian Firms First To Report Cyber Attack; Jared Kushner Hires Prominent Lawyer Abbe Lowell; U.S. Ambassador Begins New Role In Beijing; Massive Cyber Attacks Hit Europe And U.S.; E.U. Slaps Google With Record $2.7 Billion Fine; U.S. Ambassador On Liu Xiaobao's Medical Parole; China Downgraded In Human Trafficking Report. Aired 1-2a ET

Aired June 28, 2017 - 01:00   ET

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


[01:00:00] PAULA NEWTON, CNN ANCHOR: You're watching CNN NEWSROOM live from Los Angeles.

JOHN VAUSE, CNN ANCHOR: Ahead this hour, hackers demanding ransom after a massive cyber are taking businesses around the world.

(BEGIN VIDEO CLIP)

NIKKI HALEY, UNITED STATES AMBASSADOR TO THE UNITED NATIONS: That if this happens again, we are putting you on notice.

(END VIDEO CLIP)

NEWTON: The Trump administration doubled down on a warning to Syria over using chemical weapons.

VAUSE: And after failing to get enough support, Senate Republicans delay a vote on their controversial health care bill.

NEWTON: Hello and thanks for joining us. I'm Paula Newton.

VAUSE: Great to have you with us. I'm John Vause. We're now into the second hour on NEWSROOM L.A.

NEWTON: A cyber-attack on a global scale has hit some of the largest companies in the world. A massive hack was felt in the United States, right across Europe and part of Asia; with firms in the U.K., Germany, Denmark, Ukraine, Russia, Australia and India. All reported that they've been targeted by the attack.

VAUSE: The hackers used ransomware, a virus which locks your computer and then demands payment for the return of your data and control of the computer.

NEWTON: CNN Contributor, Jill Dougherty, joins us now from Moscow; Internet and Security Analyst, Hemu Nigam, is here with us in L.A. Thanks for joining us. Jill, to you first, Jill, in terms of giving us an update, how extensive was it in terms of -- we'd heard first thing in the morning that Ukraine was being hardest hit, and then Russia. How long will it take now for these systems to get back to normal or are we already there?

JILL DOUGHERTY, CNN CONTRIBUTOR: You know, it's a little unclear. The latest I saw from one source was about maybe two days, but I think that that's, you know, very hard to predict how long it really would take to get out of it. And I think one of the problems here in this part of the world is that, initially, when looked as if Ukraine was being hit. Immediately, Ukraine pointed the finger of blame at Russia, because, you know, historically, after -- especially after Maidan uprising, there have been -- there's a lot of animosity between the two countries.

But then, it turned out that, of course, huge companies like Rosneft, the energy company, here in Russia was hit. And so, the reasons for it are very unclear. I mean, is it economic? Is it to shaking down companies? Is it political, in order to, you know, destabilize a country? Or is it just complete chaos? Nobody seems to know, but the extent really is very large.

One security -- cyber security company that we talked to Group-IB said that there were 80 companies in Russia and Ukraine affect. And another Russian media publication is saying that about 300,000 computers may have been affected. It's very wide, very widespread.

VAUSE: You know the nuclear reactor Chernobyl believed to be impacted by this, and now monitoring the radiation there as by part sort of manually. But XXX, we want to bring you in. Just pick up on, on this point here: why would the Ukraine be so badly affected by all of this? Keep in mind, Russia was probably was the second-worst here.

HEMU NIGAM, CEO, SSP BLUE: Well, I think that's what we're hearing because that's where it seems to have started. But if you actually look at where the impact has been, on a global scale, it is truly, that giant is being hit. It's the giant sectors of the world: the oil and gas, the steel, the pharmaceutical, even one of the international law firms in the U.S. have been hit.

So, when you put it into a category, this has gone from a different -- the WannaCry stage which was somewhat at a lower level, hitting individuals and companies at a smaller scale; freezing files, to hitting multi, multi, multi-national corporations, and businesses and government. And hitting them in a way that actually freezes the entire disk-the hard drive. Now, it the entire network can be frozen and then asks for a ransom to get it back.

So, I think, I don't if it's so much Ukraine as the worst. I think it may have started there, but I think by tomorrow morning or tonight in other parts of the world, you're going to see a different impact.

[01:05:05] VAUSE: Because the WannaCry happens back in May, which is, you know, a precursor as well.

NEWTON: Yes. And in researching that, a lot of cyber security experts have said that perhaps that was a probing attack and in fact, getting ready for something much worse to come. I mean, Jill, I'm really curious. As you pointed out a lot of times, the finger of blame goes immediately to Russia, even though this time, fairly large entities in Russia were hit. What, if anything, is the government in Russia saying about this? Or frankly, state media as well, which sometimes gives us an insight to know what's going on?

DOUGHERTY: I haven't seen any particular commentary other than reporting on it in a pretty straight-ahead manner. I mean, I think a lot of -- unless there's something behind the scenes. A lot of these companies are reacting because they are being affected, but as I said, nobody really knows precisely why it is being used.

Now, here are the program -- the virus is actually called "Petya." I am not an expert in that area, but this is one that has used as user encrypto-encrypto virus that has been hitting. I think one of the difficulties is that some of these programs, the viruses, actually get sold on the deep web, and then anybody can kind of pick them up. It's very desperate, it's very widespread, and so you don't ultimately know where this is going.

One thing that this is leading to at least among some experts is the feeling that the world, world governments, have to kind of come together and begin to grapple with how deals with this. This can sow real chaos, and it may just be the beginning of more serious attacks.

VAUSE: Well, CNN Investigative Reporter, Jose Pagliery, cited -- we're going to play the sound bite, he explains why this cyber-attack spreads so quickly. Here's one of the reasons why listen to this.

(BEGIN VIDEO CLIP)

JOSE PAGLIERY, CNN INVESTIGATIVE REPORTER: The reason it's spreading is because hackers are taking advantage of a powerful tool. They're taking advantage of a leaked NSA hacking tool; this something that got leaked to the public sometime in April. And the way it works is that it sneaks it's to a computer and locks it down, forces it to restart, locked it down completely and it forces the users to pay a $300 ransom.

(END VIDEO CLIP)

VAUSE: So, Hemu, is that essentially what's going on here? At least --

NIGAM: Well, what you're seeing is that the NSA leaked that tool that happened much, much time ago, is still impacting other in the world and is being used by new types of hackers. And I think you should actually look at this one a little bit even more carefully, because I actually, personally, think that organized crime has taken this on. And I say this specifically because hackers giving the ransomware away to anyone who wants. You can buy it from them, and they will take 15 percent or 20 percent and you'll keep 80 percent if you do a further exploit.

In other words, if you're a spammer, you're looking at this and saying, I already know how to spam people. Now, if I spam with ransomware, I just made a lot more money than spammers normally make. So, you're turning spammer into hackers and the money is going, I think, to organized crimes. So, this is becoming a large-scale business opportunity for organized crime, which often worries about the fact that if they do exploit thins for money; money gets chased back to the source. But if you're paying a Bitcoin, you can't chase it back to the source. So, it's giving them a freebie in the criminal enterprise.

VAUSE: Well, I have to leave it. But just very quickly, I want to show you a GIF that the Ukrainian government tweeted out; it was a dog sitting at burning room saying: "This is fine. Don't panic. Everything is good." Seems like a unique way to calm public fears.

Jill Dougherty in Moscow and Hemu Nigam here in Los Angeles, we appreciate you both. Thank you.

NIGAM: Thanks, John. Thanks, Paula.

NEWTON: Syria's President is brushing aside Washington's warning that they will act if the regime carries out another chemical attack.

VAUSE: Basha al-Assad called the allegation 100 percent fabrication. Barbara Starr reports, the White House is not backing down on message meant to Syria, as well as its allies.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): Syrian President, Bashar al-Assad, coned into the cockpit of a Russia aircraft; the Kremlin's Military Chief of Staff watching nearby, just as Moscow and Damascus give an ominous warning from President Trump about Assad getting ready for another chemical weapons attack. A sudden overnight statement from the White House saying, "The United States has identified potential preparations for another chemical weapons attack by the Assad regime that would likely result in the mass murder of civilians, including innocent children," warning that Assad will pay a heavy price.

HALEY: The goal is at this point, not just to send Assad a message, but to send Russia and Iran a message that if this happens again, we are putting you on notice.

[01:10:08] STARR: The U.S. had watched this Syrian air base at Shayrat for days. The same base the Syrian Jews in April when they attack civilians with Sarin nerve agent. The U.S. responded then, firing 59 Tomahawk missiles, but fresh intelligence has the U.S. worried.

CAPT. JEFF DAVIS, SPOKESMAN, PENTAGON (voice-over): The information that we have, that we saw, became more compelling in the last day.

STARR: U.S. symmetry shows a Syrian aircraft in a shelter with chemical weapons nearby. It's not clear if Assad and his backers got the message.

HALEY: My hope is that the President's warning will certainly get Russia and Iran to take a second look, and I hope that will caution Assad. STARR: Trump's warning was closely held until the last minute. The White House and the defense officials say, Secretary of State Rex Tillerson and Defense Secretary James Mattis, knew about the intelligence, but many other officials unaware. The U.S. Military has options for President Trump if he decides to act.

The President has drawn a red line, suggesting conditions for action; something he said he would not do.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I don't want them to know what I'm thinking.

STARR: But if Trump doesn't act, he's in the position of potentially knowing about a future attack against civilians and not stopping it.

MARK HERTLING, COMMANDING GENERAL, U.S. ARMY (RET.): If we were to wait for an attack to happen, knowing that it was about to happen; then, yes, we have abrogated responsibility under the U.N. charter.

STARR: But if Assad were to proceed, military officials are letting it be known they have everything in place to strike again. Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

NEWTON: And to be clear, Russia said, it's unaware of any intelligence about a coming chemical weapon attack.

VAUSE: A Colonel Spokesman says, Washington's threat to the -- legitimately in the shape of Syria is "unacceptable."

NEWTON: Now the defining promise of President Donald Trump to repeal and replace, key replace Obamacare is apparently now delayed. The key Senate vote on health care postponed and Republicans on damage control.

VAUSE: Also the E.U. hit Google with a record fine and sent a message about their competition; details in a moment.

(COMMERCIAL BREAK)

VAUSE: For seven long years, it was a Republican promise to repeal and replace Obamacare. But now, that promise is delayed, yet again. U.S. Senate leaders have postponed a vote on the health care bill until after the July Fourth recess.

NEWTON: And why not enough Republican Senators supported the plan, which as the President keeps reminding us, has zero backing from Democrats. Now, Republicans and President Donald Trump are trying to recover from this fairly dramatic setback. Our Phil Mattingly has more from Washington.

(BEGIN VIDEOTAPE)

PHIL MATTINGLY, CNN CORRESPONDENT (voice-over): Tonight, Republican leaders coming up short on health care. [01:15:03] SEN. MITCH MCCONNELL (R-KY), SENATE MAJORITY LEADER:

Legislation of this complexity almost always takes longer than anybody else would hope. But we're going to press on.

MATTINGLY: At least for now. Majority Leader, Mitch McConnell pulling off his pledge to vote this week the reality sinking in the vote simply was not there. GOP sources telling CNN that gold will be the finalize the long out of reach compromise this week hit a new CBO score and then vote after the July forth Congressional resets.

[01:15:3] MCCONNEL: I had hope as you know that we could have gotten to the floor this week but we're not quite there but I think we got a really got chance of getting there and it will just take us a little bit longer.

MATTINGLY: But the decision coming late even after Senate's number two John Cornyn told CNN earlier today, he wanted a vote this week.

SEN. JOHN CORNYN (R-TX) SENATE MAJORITY WHIP: I think that we should vote this week, we've been debating this issues for seven years and I think it's time to first to vote.

MATTINGLY: Leaders under pressure after five GOP Senators came out an opposition of even taking up the healthcare proposal and others clearly uncomfortable with the bill's direction. This a day after the blow of a none partisan CBO scored it showed 22 million fewer Americans would have insurance by 2026 under their proposal, one that also showed that while average premiums would drop by an estimate of 30 percent by 2020, older less wealthy Americans would take a severe hit.

SEN. SUSAN COLLINS (R), MAINE: It's difficult for me to see how any tinkering is going to satisfy my fundamental and deep concerns about the impact of the bill

MATTINGLY: Republicans Senator including Susan Collins taking a bus to the White House to meet with the President and discuss a path forward.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're getting very close but for the country we have to have healthcare and it can't be Obamacare which is melting down.

MATTINGLY: That path according to Senior Senate aids not going to be easy and the effort will be the complete things as quickly as possible.

SEN. TED CRUZ (R), TEXAS: I believe we can get to yes, I believe we will get to yes. It's going to take more discussions and the most critical question is how do we lower premiums?

MATTINGLY: Democrats saying today's delay is progress that Americans are listening to their arguments against the bill.

SEN. CHUCK SCHUMER (D), NEW YORK: No matter what tweaks they may add I the next weekend ahead, no matter how the bill changes around the edges it is fundamentally flawed at the center. The ultimate reason this bill failed is because the American people just didn't like it.

(END VIDEOTAPE)

NEWTON: Joining us to discuss all this Los Angeles Democratic Mayoral Candidate Mitchell Schwartz and CNN Political Commentator and Talk Show Radio Host, John Phillips.

VAUSE: Also with us the Assistant Managing Editor of Politics at the Los Angeles Times Christina Bellantoni, good to have you all with us. OK, here we go again only this time John, I guess can Mitch McConnell the Senate Leader, what can he actually do to get those nine Senators it's up to nine now who are actually oppose this plan and just going a few hundred million dollars here or there that one actually changed the plan in any substance.

JOHN PHILLIPS, CNN POLITICAL COMMENTATOR: You know, I had a conversation with former Governor of California Pete Wilson one time and he had a lot of tough budgets in the state, where he had to get a budget votes in the state assembly and I said Governor did you have to twist a bunch of arms to get those votes and said no I had to break them could fill it on right now in Washington, but this is the way the system they set up, this is James Madison's worrying factions where everyone has a seat of the table and you have a great big food fight and then eventually end up with something that everyone can live with. I think at some point maybe it's going to take longer than the fourth of July, at some point we're going to get a bill it's going to pass both Houses in Congress.

NEWTON: You know, President Trump tweeting up the storm again making it very clear that look he said also, he bust some Senators to the White House he said "I just finished a great meeting with the Republican Senators concerning HealthCare. They really want to get it right, unlike OCare!" Now Mitchell going back to what John was saying, you know, OK he's not twisting he's not breaking arms they said he said he sat there and listened. What is the value out of this? What can he possibly do especially when the Republicans themselves seem to be quite far apart never mind Democrats.

MITCHELL SCHWARTZ, LOS ANGELES DEMOCRATIC MAYORAL CANDIDATE: Right, you know, this is comes down to the fact that unfortunately our President doesn't get involved in the issues at all and has no knowledge to speak about it. Because this happened again and again -

NEWTON: OK, but Mitchell let me play a devil dobby on that one for a minute. OK, you've got all those been a repose in the room doing the healthcare, I'll leave that aside for a moment they come out with this document. Is it not better for someone at some point to just sit them down and say because once you start getting into the weave, right? You know how, you know, you'll get lost in there, right? Is it not better for the President to be the arbiter just step there and say come on cant we just all come together on this for the sake of your political reputation.

SCHWARTZ: What I think the President at the minimum should do is set out some conditions for what he wants in the bill then he can leave the details to the Senators and then the Senators should not take a week or 10 days behind closed doors deciding what that bill should be. It should be a public, it should be done in public it should take months if not years, we're talking about changing one-seventh of the national economy and they want to do it based on back room meetings for one week.

This needs to be out in the open and the President should leave by saying what does he want in that bill what are the principles that he is willing to fight for. I think he just wants to say that a bill is passed he claims victory and that's it, but that's not enough on such an important issue and won't pass the way it is and a week or two weeks or three weeks won't make a difference unless they really address some of the big issues about what's going to happen with their insurance for 22 million people that the CBO, the CBO - sorry the Congressional Budget Office says will lose their insurance if this bill passes as is.

[01:20:54] VAUSE: OK, well there was some heavy headed tactics carried out by approach from group calligrapher's policies this hasn't helped any targeted. Senator Dean Heller, the Republican form Nevada who opposed the Health Care Bill, it started on social media and end up being a attack at, listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Senator Heller has made his opposition clear, that is unacceptable to us and millions Americans suffering under Obamacare. Heller is now standing with Pelosi, unacceptable if you're opposed to this bill we are opposed to you.

(END VIDEO CLIP)

VAUSE: A few hours ago, the New York Times reported "The move against Mr. Heller had the blessing of the White House. According to an official with the America First, because Mr. Trump's allies were furious that the Senator would side with Governor Brian Sandoval a Republican who accepted the Medicaid expansion under the health law and opposes the Republican overhaul, in criticizing the bill". OK, Christina how badly did that attack on Heller back fired?

CHRISTINA BELLANTONI, LOS ANGELES TIMES ASSISTANT MANAGING EDITOR OF POLITCS: Well, I mean we don't know until voters go to the polls until 2018 and we don't know with Heller's.

VAUSE: I meant on some of the Senators who seem to pardon their positions after this attack on Heller, it was sort of seem this, you know, Republican on Republican violence.

BELLANTONI: Right, and you know Heller represents a state that Hilary Clinton won in 2016, he's the only Republican who's up next year who does represent a ceiling that but in 2020 there's a bunch of Republicans Senators Cory Gardner in Colorado is one of them, you know, you look at their more vulnerable, their taking a look at this and it's really going to be a difficult position for Republicans leaders to get them all to accept it when Paul - their showing it continue to be unpopular but back to your question a few minutes ago. What can President Trump do or what can he offer, I mean he does have

a group of people behind him that are paying attention whether that's, you know, influential voters or, you know, money political actions committees that are willing to put money forward in House races or Senate race or even just the force of his Twitter feed. You know 32.8 million followers if he's going to get a Senators name in the headline that's probably not going to be good for the Senator no matter which persuasion in there are of it.

NEWTON: Makes me wonder where Ryan Priebus was through of this, do you think that Christina, where is Ryan Priebus role is, I mean, you know, he's pass of had the RNC have to count for something.

VAUSE: Well Mitch McConnell has the most of Ryan Priebus, right? We're seeing that about this.

BELLANTONI: He's very close to a lot of members of Congress, you know, he has a lot ties obviously with Wisconsin members of Congress including Speaker Paul Ryan but also several Senators that he has work with over the years. So I think that he is having pretty regular conversation with these Senators and the end there going to have figure out like if they vote for this will they lose back home? That's going to be a big question, so they can say their bringing something big home that's going to help them a lot in that's where Mitch McConnell has this negotiating room with some money he left in the builds of basically make some deals.

NEWTON: And sorry, you said just follow up for John here, I have to say Senator Michael Brown the few hours ago to CNN saying that they heard from the President that everything was negotiable, I mean before we move the top of the healthcare, I mean really John? He's saying every - what does that say?

PHILLIPS: Well, what are the old saying bad things happen fast good things take forever. Well there is still more changes that are going to be made. It feels going to be great.

VAUSE: OK.

NEWTON: Infinity and beyond.

VAUSE: Very quickly at the Pew survey we have last hour looking at the President, look at the confidence the world has to the United States right now. It was since Donald Trump became President our numbers are pleasing with what George W. Bush had but George W. Bush that was at the time of the war in Iraq and a financial collapse. So Mitchell is there any tangible impact, you know, when see a survey like this by the world's opinion to the United States is there any real world impact?

SCHWARTZ: Well, there will be if the world doesn't feel that America is leading the way then you see destabilization all over and I think you've seen it in the Mid-East and I think you might see it spread. America needs to take a leading role it's tough but somebody I'm not sure if the role is as a policemen but we have to at least be the leader of the free world and the fact that we're in a arguments with our leading allies be the NATO or other countries doesn't allows is to do that but what's worse is that Donald Trump, I know he wants to make America great again but he does need to lead the world to be the leader of the free world and I think it's if we're not then who is.

And that's abduction of the whole world and that stuff will blow back as you see in Europe, suffering terrorist attacks because of the of all the immigration problems happening with the break down in the Middle East so we need to have somebody as a leader helping us manage these serious problem as if it's not us who is it going to be?

[01:25:35] NEWTON: But Christina isn't it true that many Americans will say to Mitchell who cares? We just don't want it to be us, it is America first here and we want to try that for a little while and that's Pew survey really doesn't mean much.

BELLANTONI: Well, you know, it also events on the ground can change things quite a bit whether that's more attacks, you know, as we just mentioned terrorist attacks throughout Europe or whether that's more troops in Afghanistan which we know it's going to be happening, you know, or it's a matter of pulling out the Paris climate accords, I mean people judge President based on their actions not necessarily be start of who they are right now. A lot of people abroad are looking at Donald Trump in th headlines he's generated, you know, of his Twitter feed and other things and that's what their judging him on. The actions of what he does with NATO, what he does, you know, when it comes to climate change does are the types of things that the world is going to judge him on and, you know, people feel very differently when we're engage in conflict abroad and so that can also change the standing her in America.

VAUSE: Very quickly, the Presidential Adviser son in law and crown prince Jared Kushner has hired a Abbe Lowell a power house lawyer who represented former Democrat V.P. nominee John Edwards, he was on trial from the campaign funds. He also defended lobbyist Jack Abramoff who are in tax evasion conspiracy to bribe public officials, he currently represented Senator Bob Menendez who's facing bribery and corruption charges. John, is there sort of a patent you're seeing here or about, you know, possibly the kind of legal travel that Jared Kushner may think that he's facing right now?

PHILLIPS: Well if you're going to hire an attorney, hire a good one. Don't hire vehicles sold.

VAUSE: The corruption, you know, the public officials the financial side of things here, I'm just asking.

PHILLIPS: What crime is he accused to committing, the answer is zip. No crime, so if you're going to get an attorney get a good one but I don't expect him to be in hot water any time soon.

NEWTON: We're going to leave it there, I think one thing go to mention the Kushner family in terms of having dealt with this before in terms of it investigations criminal has financial and otherwise they've been here before and lawyer up right?

PHILLIPS: Just the father is been something it doesn't that he did, I mean -

NEWTON: No, but as a family they've learn their lesson, right? Lawyer up get good lawyers on your side.

PHILLIPS: Early.

VAUSE: John, Mitchell and Christina, thanks so much for being with us.

NEWTON: Tech giant Google gets slap with a hefty fine while the European Union's says some of the company's search results are illegal.

VAUSE: Also the new U.S. Ambassador in Beijing takes it's postpone speaks out about the controversial case of a high profile citizen.

(COMMERCIAL BREAK)

[01:30:43] JOHN VAUSE, CNN ANCHOR: Thanks for staying with us everybody. You're watching CNN NEWROOM live from Los Angeles. I'm John Vause.

PAULA NEWTON, CNN ANCHOR: And I'm Paula Newton. The headline this hour, some of the world's largest companies say they've been target in wide scale cyber attack. Now hackers used Ransomware, a type of computer virus that essentially hold the computer hostage until it's owners pays the fee.

The attack have pick computers right around the globe. Europe and Asia as well as the United States.

VAUSE: U.S. Senate Republicans had delay the vote on the health care bill until after the 4th of July recess. Glad to set back for President Donald Trump who promises on the campaign to repeal Obamacare. Not enough Republicans supported the bill. Senate leaders are still trying to negotiate a deal.

NEWTON: A Venezuelan police pilot had seizes a helicopter and join the countries opposition. President Nocolas Maduro says an armed group used the chopper for a terrorist attack on the Supreme Court in Caracas. Though no one was hurt, the pilot demand President Maduro's resignation saying he speaks for a coalition of military police instantly (ph) official.

VAUSE: Google has been slap with the record breaking sign for the European Union for allegedly violating anti-trust laws.

NEWTON: At issues Google search result and whether the tech giant unfairly favors it's own services over it's competitors.

CNN's Isa Soares has the latest.

(BEGIN VIDEOTAPE)

MARGRETHE VESTAGER, EUROPEAN COMMISSIONER FOR COMPETITION: What Google has done is illegal on the E.U. anti-trust rules. ISA SOARES, CNN CORRESPONDENT (voice-over): This little box is giving Google a huge headache. It's the root of a $2.7 billion fine from the European Union by far the largest ever of its kind.

Search for almost anything you could buy online and right at the top Google will first offer you a box with a selection on that product, say jeans. And if you go further and click on it, Google directs you to its own Google shopping page.

(on- camera): The European commission argue that promoting it's own business and banishing other search website around the forth page of search result. What Google is doing is redenying anyone else a chance to compete and denying consumers with what it's calls a genuine choice.

(voice-over): Well, in a statement to CNN, Google is general counsel said the company respectfully disagrees when you use Google to search for products, we're trying to give you what you're looking for it says. "Our ability to do that, well, isn't favoring ourselves or any particular site or seller. It's the result of hard work and constant innovation based on user feedback."

Fandom (ph) is a shopping site base in the U.K. and the least complainant again Google. CEO Shivaun Raff says her business has been devastated by Google and a just tip of global iceberg.

SHIVAUN RAFF, LEAD COMPLAINANT, EC'S GOOGLE SEARCH COMPETITION CASE: The fact is that Google is the gateway to the international steers traffic and revenues through the global digital economy. And went it starts taking it's incredibly dominant position in search and leveraging it into adjacent market such as comparison shopping, travel and local search.

It can steer an enormous amount of the traffic and revenue of those sector into its own service and away from competitors.

SOARES (voice-over): The Woman at the center of this is Margrethe Vestager, the E.U.s Competition Commissioner. And this is just one of three cases she's open into Google. And after demanding Apple pay $14.5 billion in back taxes last year. She's getting a reputation for going after America's tech giants.

VESTAGER: Our court were hear nothing about buyers. They want the fact of the case, evidence the case law. Our work has to standup on court.

SOARES (voice-over): The Google and it's nearly $100 billion in cash. The fine is likely to drop in the bucket. The trouble is that this ruling requires Google to change its behavior and stop prioritizing results within 90 days.

It's the president that could have far ranging and long lasting implications. After all this is their bread and butter. This is their business model and Google will now have to do a lot of it's own searching.

Isa Soares, CNN, London.

(END VIDEOTAPE)

[01:35:00] NEWTON: The worlds top two economies need to work together on everything from trade to tackling global threats. That's a message Americas new ambassador to China's delivering as he begin worked in Beijing.

VAUSE: Already though, the issue of ties record on human rights is in focus. And this is stepping on the case of Liu Xiaobo a greatly ill Chinese decedent who's I mean recently being granted medical parole.

(BEGIN VIDEO CLIP)

TERRY BRANDSTAD, U.S. AMBASSADOR TO CHINA: We're interest in doing what can be done to see if it's possible. We, Americans would like to see him had the opportunity for treatment elsewhere if that could be of health. But it's important we work together between our two countries to address these important human right issues.

(END VIDEO CLIP)

NEWTON: From more on this we're joined by Sophie Richardson, Sophie the China director of human rights watch. And thank so much for joining us to discuss this issue, which is really getting a lot of people talking about who ultimately, holds a responsibility for his health.

You know, I was interested in the statement that the Nobel committee in Norway put out saying "Chinese authorities carry a heavy responsibility because of his imprisonment. He has been denied necessary medical treatment."

I mean at this point how does human right watch see it in terms of what the authorities did? Because there is a claim that he was only diagnosed a few weeks ago.

SOPHIE RICHARDSON, CHINA DIRECTOR, HUMAN RIGHTS WATCH: Well, we now know that he's been showing kind of sickness for at least a month. And it's not clear how quickly he was treated, what kind of care he was given.

And, you know, I think it's fairly clear that the health conditions in Chinese prisons are a problematic. And on top of that there have been three or four other cases in the last few years fairly high profile peaceful government critics who either got seriously sick and didn't get a medical treatment and died in detention or were released just before they then died in non detention facilities.

And so, I think there is group to be quite concerned about whether the prison official did all they could to treat him at earlier stages of his sickness.

NEWTON: And in 2009 he was sentence to 11 years. Do you think this was actually though a death sentence for him in the end? RICHARDSON: Well, it's hard to know, you know, not having known when the disease first stated to manifest. But I think the outrageously harsh sentence that he was given. You know and the fact that he was, you know, in his 50s and at least reasonably healthy when he went in.

You know, raise a lot of question about whether and really about the governments complete in different, there not even in differences. That the calculated cruelty that's been shown to him and to his wife while he's been in prison.

NEWTON: You know, you think calculated cruelty and yet when we look at certain countries posture towards human rights and I'm not just talking about the United States. The consensus and other countries whether it's European countries or Canada or Japan.

In terms of being able to bring those human rights issues spared. Who can you pressure at this point? You know one thing human rights watches calling and they calling for in a lot of others are calling for him to able to receive treatment and which ever country he wants now and to be reunited with his family.

I mean, where do you go? Who can bring pressure upon China now?

RICHARDSON: Well, anybody from, you know, the U.S. to the European Union. You know, two points, one is that, you know, I think an extraordinary act of bravery several hundred activist and lawyers across China has signed a public letter including people who themselves, you know, have been prosecuted on politicize charges since were out on probation.

So, face real risk and doing something like this has signed a letter calling out on authorities to let. We know Xiaobo his wife choice where there treated. You know but other governments can weigh in and say that they will provide him and her medical assistance and support outside the country if that's what they want.

You know, in some ways the Chinese government is still susceptible to being embarrassed publically. But at the same time just before we started this conversation I was looking at Chinese state media that saying very clearly Liu Xiaobo knew what he was doing and being critical of the government and he had this coming.

You know they're threatening a man who is terminally ill. And I think that again raises a lot of questions about capability and who needs to be held accountable if in fact he dies.

NEWTON: Yes, incredible. You know in the point of what's being put out there as you point out in state media because it has chilling effect on everyone across the country. And as you said anyone stepped up for human rights there is taking a risk and incredibly courageous.

And yet, Sophie again you go back to the same thing, after decades especially after, you know, that turning point of gentleman (ph) in 1989. What will do it? Do you see progress and on any level with -- a human rights in China? [01:40:04] RICHARDSON: I think there is certainly been progress inside the country in the sense that there is, you know, there is deeply committed activism. Depend on the price of those people are paying is obviously incredibly high as we see on those case.

You know but there are plenty of people both at sort of the activist and sort of organized groups level who are pushing for change, you know, as well as I think popular discontent about things like inequality and the inability to hold local officials to account.

I think that's in a ways the growth of civil society in China has been one of the enormous success stories. And now it's up to all of us around the world who care about that to ensure that that community doesn't get crashed under Xi Jinping.

NEWTON: Yes. And quite adjust the position when look at the picture of protests and then you see Chinese leaders being vetted around the world, trade deal being signs. Richardson, we'll continue to check in with human rights watch regarding the story. I appreciate it.

RICHARDSON: OK. Thanks.

VAUSE: And we'll take a short break. When we come back here on NEWSROOM L.A. the U.S. list China as worse defenders to human trafficking., we'll have the very latest from Beijing in just a moment.

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NEWTON: And as we have been telling you about. This is of course a subject we care deeply about CNN. The battle to end modern day slavery and pressure is building on a number of countries to do more after the U.S. release it's latest assessment on human trafficking.

Now the report downgraded China to among the worst of the worst along with Congo, the Democratic Republic of Congo, Guinea and Mali.

VAUSE: In statement which was release before the report was actually put there. Beijing said it was determined to fight human trafficking but of course what it call irresponsible remarks from Unites States. Secretary States Rex Tillerson explained why China are being downgraded.

(BEGIN VIDEO CLIP)

REX TILLERSON, U.S. SECRETARY OF STATE: And China was downgraded to tier three status in this year report impart because it has not taking serious steps to end it's own complicity and trafficking including force labors from North Korea that are located in China.

(END VIDEO CLIP)

VAUSE: CNN's Anna Coren live in Hong Kong with more on this. Anna, good to see. Much a blame it seems to China's downgrade. It's being blame on the close relationship with North Korea. Is there a sense in Beijing that perhaps her supporters being drawn by politics, that's lot more to do with putting pressure on China to reign in Pyongyang?

ANNA COREN, CNN CORRESPONDENT: Yes, an interesting point there John because obviously we just heard from the U.S. Secretary of State Rex Tiller saying it is on that force labor. Remember the tens of thousands of North Koreans are working in China.

[01:45:02] And much they put wages, their remittances goes back to North Korea use by the government to help fund that elicits nuclear and missiles weapons programed.

But the sonics (ph) will certainly say that China is being punished. It has been on watch list for several years that's tier two is now dropped to tier three. You have to remember too that there has been a love fixed taking place between President Trump and the Chinese President Xi Jinping.

He visited the White House back in April, attended the Mar-a-Lago out with Donald Trump. And Trump described him as terrific guy and said that they were really trying to make an effort to reign in at North Korea. There seem have been a change of tune and we heard as much last week when Donald Trump acknowledge that China was not doing enough to reign in North Korea.

Let's have a listen to what the Chinese foreign affairs ministry had to say before that report was release.

(BEGIN VIDEO CLIP)

LU KANG, CHINESE FOREIGN MINISTRY SPOKEMAN (through translator): China firmly opposes that the United States based on it's own domestic laws makes irresponsible remarks towards other countries work on combating human trafficking.

We have always believed that human trafficking is a common crime face by all countries. No country in the world has able to avoid the problem. We are willing to strengthen cooperation with other countries on the basis mutual respect and worked together to fight against human trafficking.

(BEGIN VIDEO CLIP)

COREN: Now John, as we will now China does not like to be criticized. It certainly doesn't like to be a publicly embarrassed this way. So it will be interesting to see how things progress from here on end. Considering that many thought that relations were warming between China and the United States.

VAUSE: Yes, the perhaps the honeymoon could be over. Anna, good to see you. Anna Coren live in Hong Kong.

NEWTON: Now woman in California is using her experience to expose the deprave tactics human traffickers used to try and control their victims.

CNN's Linda Kincaid has more on her mission to end the game.

(BEGIN VIDEOTAPE)

LINDA KINCAID, CNN CORRESPONDENT (voice-over): It's a Wednesday morning but Elle Snow is already sitting down to watch the game.

ELLE SNOW, FOUNDER, GAME OVER: I'm trying to figure out how many potential trafficking victims do we have. Right here SexyPartyBabyGirl (ph) fetish, says he's 21. There is no way that girl is 21 years old. No way.

KINCAID: Snow is monitoring an online classified ads service where she says human trafficking frequently takes place.

SNOW: So I was look for that when I'm looking on these ads, do I see identifying tattoos. And you see it a lot these days. And branding (INAUDIBLE) is now a day of names. Specially names with a crown, huge red flag especially if the name and the crown is on the chest or the neck. Also anything that do with currency diamonds, money bags.

KINCAID: Snow is founded the anti-slavery organization "Game Over" in 2016.

SNOW: Well, what happen to me was called the game this monstrous beast that is this world of sex trafficking.

KINCAID: And survivor of force prostitution. Snow says the trafficker was a drug dealer would first, (INAUDIBLE) thinking they starting a relationship. But she says when she agreed to travel from her home in Eureka, California to his apartment in Sacramento everything changed.

SNOW: He would come in and eventually start saying that she's not who he said he was that he's actually a pimp and that this is how prostitutes are made. He had this six inch heels, which I never want heels in my life, being six foot tall.

And this little pink skirt, never worn pink in life. And he wanted me to put these on and he said I had to get to work.

KINCAID: Snow says she fought back for months. But every time she did the violence got worse.

SNOW: I use to be bloody of strangled. He's dragging my body to a car when I woke up. My throat was so swollen in black and blue. I still busted capillaries and in from all that.

KINCAID: The trafficker David Anderson went by the Monica (ph) K.D., short the King David. He was given nine years for the trafficking of a 16 year old girl. It was the first human trafficking conviction ever in California's rural Humboldt County.

Kyla Baxley was the leading investigator in the case. She says Snow's testimony was instrumental in convincing the jury slavery can happen in any community.

KYLA BAXLEY, HUMBOLDT COUNTRY, DISTRICT ATTORNEY'S OFFICE: Victim of sexual assault and exploitation didn't choose this realizing that it was happening here in Humboldt and having an interaction with Elle Snow being one of the victim in this case.

She's gone on to do phenomenal things as racing awareness here in Humboldt. So, I think was a good think on many levels.

KINCAID: [01:50:06] Since Anderson conviction, Snow has been on a mission. In addition to investigating ongoing traffic in cases on her own, Snow also trains law enforcement and speaks to local students.

Recently snow co-wrote and would use to play based on her own experiences Jane Doe in Wonderland.

SNOW: The community rallied around and supported the survivor voices here, specially a rural community. If your putting posters everywhere and everybody is talking about and all the teams they try and recruit say "Hey, I know what a pimp is. I know those books." All of sudden the traffickers don't feel comfortable anymore.

And so, having the community rally around is really -- it's really change in everything. It's pretty phenomenal.

KINCAID: Proof every contribution has it role to play in helping end a brutal game.

Linda Kincaid, CNN.

(END VIDEOTAPE)

NEWTON: Now Thursday the CNN Freedom Project takes a look at the Cannabis Industry in North California and the human trafficking that occurs on many of those vary secluded farms.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: OK, the Emerald Triangle a futures (ph) three county area field with redwood, wide life and jaw dropping coast line, has been on of the most lucrative sentence the Cannabis cultivation anywhere in the world.

And according to Deputy Orvok (ph) that's meant an influx of other criminal activities into the area including human trafficking.

UNIDENTIFIED MALE: Well, a lot of the trafficking that occurs in the Marijuana camps are the young women that get pick up and brought up to these rural camps and they're being forced into different sex act. It's now coming to our attention as law enforcement that this is what's been occurring.

(END VIDEO CLIP)

NEWTON: Now more on the challenges. Law enforcement faces in reaching these victims at Thursday here on CNN.

VAUSE: And we will take a short break. When we come back as cyber attack sweep across Europe and United States, a little lesson, time the brush up on how to protect royal (ph) crucial online information.

(COMMERCIAL BREAK)

VAUSE: and what is very major companies around the globe have been targeted in cyber attack from a Danish (ph) shipping giant to U.S. drug makers.

NEWTON: Yes, very widespread. But there are some simply step. Yes, they say their simple. You can take safeguard your information from hackers. Daniel Burke is going to kill me though if you don't listen.

Here's CNN Tech correspondent.

(BEGIN VIDEOTAPE)

DANIEL BURKE, CNN CORRESPONDENT: Most of us are walking a tight rope when it comes to protecting ourselves from the hackers. Living on the edge thinking "oh, I will fall." That's why it's so important to protect yourself.

Just like you do with safety check before you perform a big stunt. You need to do a security check on computer to make sure you're running the latest version of your operating system. And you always have to do a backup of your most important files just in case.

[01:55:00] But it falls back security let you down, encrypt you file with file bolt (ph) that bit locker, and to be on solid ground always run anti-virus software.

I'm going from log to log. But you probably feel like you're going from logging to log in password to password. There are so many opportunities for the hackers to get their hands on those. So you should use through step sign in. That way, every time you have to enter your password, you also get a code send to your phone.

So even if the hackers still your passwords, yes it won't get their hands on your smart phone. And while we're on the logs, popular messaging apps like WhatsApp, iMessage. They keep logs of your text messages up in the Cloud and you know that hack every so often.

But apps like signal they don't say anything in the Cloud making them a much safer place for your text messages to land.

So make sure that surfing the web is all smooth sailing. Check if the website you visit have https. That S means if that have higher level security. But if you feeling shaky about logging on to pubic Wi-Fi. VPN apps like Onoavo will make your connection private.

And for the safest surfing the web browser TOR will make it so that somebody can't know who you are, where you are or what sites you're surfing. Living on the edge doesn't have to be so dangerous if you use the right protection.

(END VIDEOTAPE)

VAUSE: He's wearing any socks.

NEWTON: From all that, that's what you came (INAUDIBLE). He really took one for the company.

VAUSE: It could be.

NEWTON: And finally a terrified. Do I really want to see this John? It's a terrifying moment on the Street Reading England. A man -- I purposely did not see this. I didn't watch it. A man apparently though was hit by a bus and the video is disturbing.

VAUSE: But he's OK.

NEWTON: OK. So you tell me.

VAUSE: So that's end the show.

NEWTON: So what happen in Saturday while the man was crossing the street but, oh, I can't really but he got right back up and he walk away. Police are investigating the incident.

VAUSE: OK. The bus company released this statement. "We are obviously shocked by the incident as well as the very graphic footage that has been shard a number of times. No kidding. Thankfully, the pedestrian does not have any major injuries and there were no major injuries to passengers on the bus.

Excuse me, the incident is the subject of an ongoing internal investigation as well as investigation by the police with whom. We are working and sharing footage from our on-board CCTV. So it would be inappropriate for us to comment or speculate on this until it has run its course."

Wow, that was very long statement.

NEWTON: It doesn't stop us from speculating.

VAUSE: There we go.

NEWTON: I mean that's really.

VAUSE: Yes. He's OK.

NEWTON: I know. Got to keep that in mind.

All right. You're watching CNN NEWSROOM live from Los Angeles. I'm Paula Newton.

VAUSE: I'm John Vause. Stay with us a lot more, after a short break.

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