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NEWS STREAM

U.S. Health Care Reform; Russia Investigation; U.S.-Russia Relations; Crisis in Venezuela; North Korea Yet to Accept Talks with the South; U.S. Navy's Drone-Killing Laser; Duterte Seeks to Extend Martial Law in Mindanao; Minneapolis Shooting; President Trump Launches "Made in America" Week; China's Solar Farm; Brexit Talks Resume; Qatar Gulf Crisis. Aired 8-9a ET

Aired July 18, 2017 - 08:00   ET

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

[08:00:00] ANDREW STEVENS, CNN NEWS STREAM SHOW HOST: I'm Andrew Stevens in Hong Kong. Welcome to "News Stream." Another setback to U.S. President

Donald Trump's promise to repeal and replace Obamacare. We've got the latest on what's stopping the president from keeping to his word. He's also

weighing in on the crisis in Venezuela and as its financial reserves dwindle, opposition towards President Maduro grows and the U.S. president

promises support for those calling the change. And in North Korea, silence from King Jong-un of the south extends an offer to talk.

We start in Washington where senate Republicans have lost the support they need to pass their bill to repeal and replace Obamacare. Already facing a

record low approval rating, this is another blow to President Trump's number one priority. Trying to breathe new life into the bill, the

president has been urging senators to repeal now, replace later, but Suzanne Malveaux reports that's an unlikely solution.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN NATIONAL CORRESPONDENT: Senate Majority Leader Mitch McConnell giving up on Republican's seven-year effort, now pushing to

repeal Obamacare without a replacement plan in place. The latest effort collapsing after two more Republican senators announced their opposition to

the bill simultaneously on Monday night, ensuring that the plan would fail.

McConnell still planning to hold a vote in the coming days on a 2015 measure that would repeal Obamacare, but delay it taking effect for two

years, while a replacement bill is crafted. President Trump responding to the setback on Twitter tweeting, Republicans should just repeal failing

Obamacare now and work on a new health care plan that will start from a clean slate.

Dems will join in. This despite the fact that a straight repeal has little to no chance of passing and could leave millions uninsured and the

insurance market in turmoil. The president's proposal startling different from the promise he made on the campaign trail.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Obamacare is a disaster.

Repeal it and replace it.

Repeal and replace.

Repeal and replace Obamacare.

We are going to repeal it. We are going to replace it. We are going to get something done.

(APPLAUSE)

(END VIDEO CLIP)

MALVEAUX: President Trump was trying to drum up support for health care, hosting a handful of senators at a White House dinner Monday night, as

senators Lee and Moran announced their opposition. The president expressing optimism earlier in the day.

(BEGIN VIDEO CLIP)

TRUMP: The Republican senators are great people, but they have a lot of different states. Some states need this, some states need that. But we're

getting it together and it's going to happen. Right, Mike?

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: I think.

(END VIDEO CLIP)

MALVEAUX: Democratic Minority Leader Chuck Schumer immediately celebrating the defeat, tweeting this second failure of Trumpcare is proof positive

that the core of this bill is unworkable. As Republicans continue to be split about the path forward, with conservatives pushing the clean repeal

effort and moderates like Senator John McCain calling for bipartisanship, McCain stressing that Republicans should receive input from members of both

parties as they work to produce future legislation.

(END VIDEOTAPE)

STEVENS: Suzanne Malveaux reporting there. Mr. Trump also is showing a little bit of frustration together with a little bit of optimism. Just a

few minutes ago, he tweeted this. We were let down by all the Democrats and a few Republicans. Most Republicans were loyal, terrific, and worked really

hard. We will return.

And we're also learning more about who attended the meeting last year with Donald Trump Jr. and the Russian lawyer. We now know that there were at

least eight people, twice as many as those disclosed. Trump Jr.'s attorney tells CNN that he has spoken by phone to the eight person who was in the

room at Trump Tower, but he declines to name the man.

He is believed to be a representative of the Russian father and son who helped set that meeting up. Trump Jr.'s attorney says the man is a U.S.

citizen and was not employed by the Russian government.

Another story on the U.S.-Russia relation, the diplomatic compounds the U.S. seized last year that Russian wants back. On Monday, two high-level

officials discussed the matter in Washington. The U.S. closed those compounds late last year as part of President Obama's sanctions against

Russia for meddling in the U.S. election.

Past U.S. administration had accused Russia of using those compounds to spying activities. Russia says they will weaken retreats to diplomats.

Let's go to Matthew Chance. He joins us live from Moscow. There have been some reports that the U.S. and Russia may be getting close to a deal on

those compounds. Matthew, what are you hearing?

[08:05:00] MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they certainly staged this important meeting that you mentioned in

Washington yesterday between Under Secretary of State Tom Shannon of United States and Russian deputy foreign minister. There have been remarks from

Deputy Foreign Minister Sergei Lavrov. He said this. To say that we are on the verge of resolving this would be an exaggeration. He said that we

warned the Americans that we need an unconditional return of the property, otherwise retaliatory measures will follow.

That's what he told the state news agency in Russia. So, yes, they are discussing the return of these diplomatic compounds, but they're nowhere

near, it seems, reaching a resolution to that. And of course, the Russian foreign ministry and the Kremlin have said time and again that their

patience in all of this is running out. The foreign ministry has floated ideas about expelling 30 or more U.D. diplomats from their various posts in

the Russian federation.

They also talked about the possibility of seizing U.S. diplomatic property in Russia as well as a sort of retaliation for what happened to them. And I

think this whole issue, remember, reflects the disillusionment that is at work here in Russia right now with the ability of the Trump administration

to deliver what it said it was going to do, which was to build a better relationship with Russia. That isn't happening and the Russians are losing

patience, Andrew.

STEVENS: Just at that point, how would you describe the mood in Moscow towards the Trump administration? So much was expected, so little has been

delivered.

CHANCE: Yes. I think that does characterize the mood. And it's been something of a roller coaster because when Trump first came to power, came

to office, he was seen very much as the Kremlin candidate. I mean, the state television here painted a very rosy picture of him, expectations were

sky high that he would be able to turn around that sticky relationship with Russia, cooperate over international terrorism in Syria which is certainly

not happening, but also kind of see the world from a more Russian point of view, I suppose, from a similar perspective.

Because of the domestic critical situation in the United States, Trump has just not been able to do that and that's led to an enormous amount of

disappointment in Russia. It briefly kind of (INAUDIBLE) upward, I supposed, the sense of optimism in Russia when the two presidents met for

the first time at the G-20 Summit earlier this month. And there was much higher expectation peaking, that maybe something could be done, there

seemed to have a personal chemistry between the two of them.

But obviously, a first step from the Russian point of view, would be the return of these diplomatic compounds confiscated by the previous Obama

administration as punishment to Russia for allegedly meddling in the U.S. election. They want to see that change, but again, President Trump is

hamstrung when it comes to taking action against the Russians or giving back these compounds.

STEVENS: OK. Matthew, thanks very much for that. Matthew Chance joining us live from Moscow. Now, the Trump administration is sending mixed messages

meanwhile on Iran's nuclear compliance. It is certified that Iran is still making good on the terms of the nuclear deal but the administration says

that Tehran's non-nuclear activity shows it's quote, unquestionably in default of the spirit of the agreements.

President Trump and Secretary of State Rex Tillerson have been (INAUDIBLE) the deal. The senior administration official says they are considering more

sanctions targeting Iran's ballistic missile program and other activity.

STEVENS: And President Trump is also putting pressure on Venezuelan President Nicolas Maduro. Mr. Trump says the U.S. is ready to take strong

economic actions if Mr. Maduro carries on with his plans to rewrite the constitution. He also praised Sunday's (ph) symbolic referendum in which

millions of Venezuelans rejected President Maduro's plans. Rafael Romo has the latest.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: The Venezuelan opposition is now going for a 24-hour strike on Thursday to increase pressure on President Nicolas

Maduro. They are also calling for the formation of an alternative national unity government, although it's not clear if they intend for this

government to run the country parallel to the current administration.

These actions were announced after more than 98 percent of people voted Sunday to reject Maduro's plan to rewrite the constitution in a non-binding

referendum. More than seven million people participated according to the opposition. The White House weighed in on the landslide victory Monday

urging free and fair elections. Spokesman Sean Spicer condemned the increasing volatile situation in the south American country.

(BEGIN VIDEO CLIP)

SEAN SPICER, WHITE HOUSE PRESS SECRETARY: We congratulate the Venezuelan people for the huge turnout in the referendum yesterday and the

unmistakable statement that they made -- and that they delivered to their government. We condemn the violence

[08:10:00] inflicted by government thugs against innocent voters and efforts by the government to erode democracy in Venezuela.

(END VIDEO CLIP)

ROMO: Meanwhile, President Marudo called the referendum illegal. He says he will still go ahead with the July 30 votes to pick a special assembly to

rewrite the current constitution. Nearly 100 Venezuelans have died in more than three months of violent, anti-government protests. Rafael Romo, CNN.

(END VIDEOTAPE)

STEVENS: South Korea wants to talk but there's no answer yet from the north. A new government of the South Korean government, Moon Jae-in, has

extended an invitation to Pyongyang. Officials offering to hold talks with the aim of diffusing military tensions. David McKenzie has more from the

South Korean capital, Seoul.

(BEGIN VIDEO CLIP)

DAVID MCKENZIE, CNN CORRESPONDENT: Still no word from North Korea whether they will accept the proposal of talks from the South Koreaan government as

South Korea wants to have dual track talks both military to military talks at the (INAUDIBLE) as soon as this Friday, as well as humanitarian

discussions on the issue of family reunions for those split up by the Korean war.

The unification ministry here in South Korea has said that their aim to talk to the north doesn't show any shift or rift from the U.S. policy which

is to potentially bring more sanctions and pressure to North Korea to end the nuclear and missile program out of Pyongyang. Now, there is a sense

these are just low level and three-level talks and the South Koreans say this is no move towards high-level negotiations. They just want to try and

ease the tension on the Korean peninsula. David McKenzie, CNN, Seoul.

(END VIDEO CLIP)

STEVENS: It's been described as more precise than a bullet and costs only $1 a shot. The U.S. navy's active laser weapon is a silent killer, but it

sounds like the stuff of science fiction. CNN's Jim Sciutto has granted exclusive access to a live fire test.

(BEGIN VIDEOTAPE)

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: In the sometimes hostile waters of the the Persian Gulf looms the U.S. navy's first, in fact

the world's first active laser weapon. The LaWS, an acronym for laser weapon system is not science fiction. It is not experimental. It is

deployed onboard the USS Ponce amphibious transport ship, ready to be fired at targets today and every day by Captain Christopher Wells and his crew.

CNN was granted exclusive access to a live fire test of the laser.

(BEGIN VIDEO CLIP)

CAPT. CHRISTOPHER WELLS, COMMANDING OFFICER, USS PONCE: It's more precise than a bullet. It's not a niche weapon system like some other weapons that

we have throughout the military where it's only good against air contacts or it's only good against surface targets or it's only good against ground-

based targets. In this case, it is a very versatile weapon. It can be used against a variety of targets.

(END VIDEO CLIP)

SCIUTTO: LaWS begins with an advantage no other weapon ever invented, comes even close to magic. It moves by definition at the speed of light. For

comparison, that is 50,000 times the speed of an incoming ICBM.

(BEGIN VIDEO CLIP)

LT. CALE HUGHES, LASER WEAPONS SYSTEM OFFICER: It's throwing massive amounts of protons at an incoming object. We don't worry about wind. We

don't worry about rains. We don't worry about anything else.

(END VIDEO CLIP)

SCIUTTO: CNN witnessed that speed and power firsthand. First, the Ponce crew launches a target, an incoming drone aircraft, the weapon used by

Iran, North Korea, China, Russia and other adversaries. Immediately the weapons team zeroes in on its target.

(BEGIN VIDEO CLIP)

HUGHES: We don't have to lead a target. We're doing that engagement at the speed of light. So, it really is a point and shoot. We see it, we focus on

it, and we can negate that target.

(END VIDEO CLIP)

SCIUTTO: Then, in an instant, the drone's wing lights up, heated to a temperature of thousands of degrees, lethally damaging the aircraft and

sending it hurtling down to the sea. All of this from a silent and invisible killer.

(BEGIN VIDEO CLIP)

HUGHES: It operates in an invisible part of the electromagnetic spectrum. You don't see the beam. It doesn't make any sound. It is completely silent

and it's incredibly effective at what it does.

(END VIDEO CLIP)

SCIUTTO: It is remarkably precise, minimizing collateral damage. And all the $40 million system needs to operate is the supply of electricity and a

crew of three, no multi-million dollar missile, no ammunition at all. The cost per use --

(BEGIN VIDEO CLIP)

HUGHES: It is about $1 a shot.

(END VIDEO CLIP)

SCIUTTO: Today, the laser is intended primarily to disable or destroy aircraft and small boats.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It designed with the intent of being to encounter airborne and surface-based threats and has been able to prove itself over

the last three years of being incredible at that.

(END VIDEO CLIP)

SCIUTTO: However, the navy is already developing more powerful second generation systems, which would bring more significant targets into its

crosshairs -- missiles. Those missions remain classified. However, commander and crew are already very much aware of the potential

capabilities.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Can it shoot down a missile?

[08:15:00] WELLS: Well, I don't know. Maybe.

(END VIDEO CLIP)

SCIUTTO: The U.S. is certainly not the only country working with lase weapons. Russia, China, North Korea, Iran and and others are doing the

same. To be clear, not just with the intention of striking targets down here on earth, ships and aircraft, possibility of missiles, but also

targets even as far away as in space. Jim Sciutto, CNN, Washington.

(END VIDEOTAPE)

STEVENS: Still ahead, martial law is a sensitive topic in the Philippines, but now the president is asking to extend military rule in an area rocked

by ISIL violence. Plus, why did a woman who called the police for help end up dead? There are many questions and no answers yet. And China is betting

big on clean energy. We'll take you to the world's largest solar farm on water.

(COMMERCIAL BREAK)

STEVENS: Welcome back. You're watching "News Stream" live from Hong Kong. The Philippine president is asking congress to extend martial law in the

island of Mindanao until the end of the year. Rodrigo Duterte put the area under military rule in May after ISIL-linked fire a storm to city of

Marawi. He now says the army needs more time to root out the militants. A critic in the senate calls the request for extension a misuse of power.

What prompted a U.S. police officer to fatally shoot an Australian woman who called 911? The family of Justine Ruszczyk is devastated and desperate

for answers.

(BEGIN VIDEO CLIP)

JULIA REED, FRIEND OF RUSZCZYK FAMILY: She undoubtedly will be very missed by the family. She was treasured and loved. And we will really miss her

dreadfully.

(END VIDEO CLIP)

STEVENS: Ruszczyk's fiance said that she called Minneapolis police on Saturday fearing criminal activity near her home. When officers arrived,

one of them shot her. Ryan Young takes a closer look.

(BEGIN VIDEOTAPE)

RYAN YOUNG, CNN NATIONAL CORRESPONDENT: Shortly before 11:30 on Saturday night, Minneapolis Police received report of a possible sexual assault.

Forty-year-old Justine Ruszczyk made the call to 911 telling the dispatcher it was happening in an alley close to her home on the southwest side of the

city, a low-crime residential area. Two officers respond and at some point during the night, one of the officers fired his weapon, hitting Ruszczyk

and killing her.

How Ruszczyk was shot dead by a responding officer is a mystery. Police have said little about the incident, calling it, quote, a tragic death, and

say they are investigating the matter. The two officers were wearing body cameras but they were not turned on during the shooting. There was no

explanation from police as to why the cameras were turned off and no explanation on what happened with the possible assault that was called in.

Justine Ruszczyk was set to be married in August.

[08:20:00] She is an Australian native who moved to Minneapolis to be with her fiance.

(BEGIN VIDEO CLIP)

DON DAMOND, JUSTINE RUSZCZYK'S FIANCE: The death of Justine is a loss to everyone who knew her. She touched so many people with her loving and

cherish heart.

(END VIDEO CLIP)

YOUNG: As her family mourn the loss of her life, they also pressed the Minneapolis Police for more information.

(BEGIN VIDEO CLIP)

DAMOND: Sadly her family and I have been provided with almost no additional information from law enforcement regarding what happened after police

arrived. We've lost the dearest of people, and we are desperate for information. Piecing together Justine's last moments before the homicide

would be a small comfort as we grieve this tragedy.

(END VIDEO CLIP)

YOUNG: Minneapolis' mayor also called on police to provide information on the shooting as quickly as possible.

(BEGIN VIDEO CLIP)

MAYOR BETSY HODGES, MINNEAPOLIS, MINNESOTA: I am heartsick and deeply disturbed by the fatal officer-involved shooting. I have a lot of questions

about why the body cameras weren't on, questions that I hope and anticipate will be answered in the next few days.

(END VIDEO CLIP)

YOUNG: In a tweet, the Minneapolis Police, she said, she asked for an expedited investigation into Justine Ruszczyk's death in order to provide

these answers as quickly as possible.

So right now, we don't know why the body cameras weren't activated. Police are really talking about that. What we do know, the lawyer has released the

statement for the officer involved in the shooting. His name is Mohamed Noor. He extends his condolences to the family and anyone else who has been

touched by this event.

He takes her loss seriously and keeps her in his daily thoughts and prayers. Of course, we are hoping to get more information, but we have

learned just like this evening that there was a shot to the abdomen that fatally killed the young woman right here in this alleyway. Ryan Young,

CNN, Minneapolis.

(END VIDEOTAPE)

STEVENS: Turning back to the U.S. politics now and the Trump administration has kicked off its "Made in America" week. That's an opportunity for

critics who point to good stent (ph) with the Trump made but not made in America. We'll hear now from Jake Tapper.

(START VIDEOTAPE)

TRUMP: We believe in two simple rules. Buy American and hire American.

JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: It's a popular presidential promise that Donald Trump has given time and again to an Asian

eager for more American jobs, especially for those (INAUDIBLE) decimated by trade deals and other forces.

(BEGIN VIDEO CLIP)

TRUMP: We are going to do everything in our power to make sure that more products are stamped with those wonderful words "Made in the USA."

(END VIDEO CLIP)

TAPPER: But those wonderful words rarely seem to be printed on Trump products. And as the president launches "Made in America" week at the White

House, the big question looms. Will President Trump and his family lead by example? Here's how the White House responded to that question earlier

today.

(BEGIN VIDEO CLIP)

SPICER (voice-over): There are certain supply chains or scalability that may not be available in this country. I'm not going to comment on specific

products, but I will tell you that the overall aching goal of course though is to grow manufacturing, to grow investment here in the United States.

(END VIDEO CLIP)

TAPPER: Shirts, shoes, handbags, neck ties with the Trump family name have often been manufactured in countries such as Bangladesh, Indonesia, China

where labor costs are much cheaper, something the businessman tried to explain to me in 2015 when I confronted him on where my Trump tie had been

made.

(BEGIN VIDEO CLIP)

TRUMP: My ties, many times are made in China, not all of them by the way, but a lot of them are made in China because they've manipulated their

currency to such a point that it's impossible for our companies to compete.

TAPPER: When it comes to outsourcing jobs which is what this tie will be representative of, one of the issues is that the people in China, the

laborers, are paid a lot less and the standards are worse when it comes to environments and health care and worker safety.

TRUMP: Many problem. I agree with that.

TAPPER: Isn't that -- what do you say when somebody says --

TRUMP: (INAUDIBLE).

TAPPER: -- why don't you be a leader and make these in Philadelphia? I'd be willing to pay more for this tie.

TRUMP: You would and unfortunately you would see that it's very, very hard to have anything in apparel made in this country.

(END VIDEO CLIP)

TAPPER: Good news, Mr. President. Here is your press secretary in April of this year talking about China.

(BEGIN VIDEO CLIP)

SPICER: They haven't since he's been in office manipulating their currency.

(END VIDEO CLIP)

TAPPER: So now, it could be a good time to lead on this issue. The truth is that Trumps are far from alone, 97 percent of apparel sold in the United

States is made in other countries. Some businesses do manage to make their products in America. Fifty such companies showed off their goods to the

president today.

(BEGIN VIDEO CLIP)

SCOTT PAUL, PRESIDENT, ALLIANCE FOR AMERICAN MANUFACTURING: Hopefully, he will also learn from those 50 makers and see how they are making it in

America and perhaps he can ask them how they're doing it so that he can give it a try.

(END VIDEO CLIP)

TAPPER: Ivanka Trump's fashion line has long worked with manufacturers in China. President Trump's daughter took a leave of absence from her company

in January but still retains an ownership stake. The company declined to comment for this story.

[08:25:00] The contrast in messaging is not lost on critics who are tagging the president and his family on social media, posting photos of Donald and

Ivanka Trump brand merchandise reported to be made elsewhere. Jake Tapper, CNN, Washington.

(END VIDEOTAPE)

STEVENS: While the U.S. is trying to boost (ph) the manufacturing jobs, China is looking to employ millions of people in clean energy supplies. The

country supplies two-third of the world's solar panel and is building a huge solar farm on water. Matt Rivers went to investigate.

(START VIDEOTAPE)

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Forty years ago, an old coal field flooded out. Brown water helped turn it into a lake. And it's not

empty until 2016 when someone had an idea, why not take a whole bunch of solar panels and put them right on top. Welcome to Huainan City, China,

home to the largest floating solar farm in the world. Tens of thousands of panels soak up the sunshine enough to fill more than 160 American football

fields.

Eventually, they'll generate enough electricity to power about 15,000 homes for a year. We've invested about $45 million so far, says Yao Shaohua,

deputy director of the project. Initially, it is more expensive to build this way. Consider the fact that you have to take a boat to do just about

anything. But in the end, floating solar panels can run more efficiently because they're cooled by the water underneath, plus they're taking up

unused space.

The government won't allow us to just install panels wherever we want, says Yao. These old coal fields wouldn't be used, otherwise, so it makes sense.

The farm is about 90 percent done. The repetitive daily linking of panels broken only by floating a finished product into the lake. It's all part of

a broad strategy by China, the largest greenhouse gas emitter in the world, to move away from the one cheap energy that's powered it for so long, coal.

Sure it was cheap and efficient, but it was also dirty and that produced skies like this across the country, choked with smog. Coal still generates

more than half of the country's electric supply. But the government has pledged hundreds of billions of dollars and things like wind and geothermal

projects to fight that. In solar projects alone, the plan is for $150 billion to be fully invested by 2020.

The omnipresent pollution though was on full display during our trip to the floating farm. Air quality levels that day were about 17 times worse than

the World Health Organization said they should be, and yet it made for an interesting dynamic, the toxic reality of China's current environment

hanging above what they're trying to do to fix that. Matt Rivers, CNN, Anhui Province, China.

(END VIDEOTAPE)

STEVENS: Still ahead here on "News Stream," round two of Brexit negotiation. We will take a look at the biggest sticking point just ahead.

And the United Arab Emirates rejects allegations of cyber terrorism made by one of its gulf neighbors.

[08:30:00] (COMMERCIAL BREAK)

STEVENS: I'm Andrew Stevens in Hong Kong. You're watching "News Stream." These are your world headlines. U.S. President Donald Trump has just made

his feelings known about the collapse of a bill to replace and repeal Obamacare. On Twitter, he says, he quote, was let down by all of the

Democrats and a few Republicans. Most Republicans were loyal, terrific, and worked really hard. We will return. And then a few minutes later, let

Obamacare fail and then come together and do a great health care plan. Stay tuned.

Russia is threatening retaliation against the U.S. for seizing two diplomatic compounds last year. The warning comes after high-level

officials from each nation meeting in Washington on Monday, then President Obama closed the buildings last year for alleged Russian meddling in the

election.

The Kremlin wants them return without any condition. President Trump warns the U.S. will take strong economic action if Venezuelan President Nicolas

Maduro rewrites his country's constitution. Separately, the U.S. president praised Venezuela's opposition for voting in a symbolic referendum in which

millions rejected Mr. Madura's plans.

It's day two now of Brexit negotiations in Brussels. Negotiators are working out the terms of the U.K. divorce from the European Union, but

things aren't going so smoothly, at least on Britain's side. There's been reports of infighting in Minister Theresa May's cabinets. And just a short

while ago, she told cabinet members to stop revealing details of their meetings.

For more, let's go to CNN's Nina dos Santos. She is in London. Nina, you've been following this one very closely. Some reports coming out are sort of

close to open civil war in the cabinet, the cabinet tearing itself apart. How bad is it?

NINA DOS SANTOS, CNN CORRESPONDENT: Remember that Theresa May is a very weakened prime minister (INAUDIBLE) majority, Andrew, in the election that

she herself called. Just a week or so ago, she was still publicly reflecting upon that embarrassment in the election, saying that she shed a

tear over it, but as she's been reflecting and looking backwards, consistently saying I'm not going to step down here, there's a lot of

jockeying for position around the cabinet table.

Also, she's got Jeremy Corbyn, who has wasted no time in undermining the government's response to all sorts of things from the Grenfell fire tower

disaster. The terror attacks in this country have been gripped by over the last months or so. And then of course, the big thing is Brexit. Jeremy

Corbyn in fact went to go and meet with the European Council just two to three days before the second round of the Brexit negotiation which was

(INAUDIBLE) by David Davis yesterday in Brussels.

David Davis actually didn't spend an awful lot of time in Brussels. He was only there for three hours. He didn't didn't seem to have an awful lot of

paperwork with him which I can believe we can show you on these pictures here. These are the shots of him sitting down with the European negotiator

and chief Michel Barnier. You can see the European side have lots and lots of homework that they want to present to the Britons.

But on the other side of the table, well, essentially there's a lot of smiling, but when it comes to paperwork, there is much of that there. So

David Davis has spent only few hours in Brussels before the talks really got going. Substantially, he left to come back to Britain to deal with this

cabinet spat (ph). What is the cabinet spat (ph)? Largely, Andrew, it's about Brexit, the very thing that David Davis was supposed to be in

Brussels sorting out this week.

It's like David Davis is going to go back on Thursday. He left his team there to deal with the day to day and it's getting nasty (ph). When it

comes to that cabinet spat (ph), it is getting nasty. There are members of the cabinet saying that other members are against him. And all the while,

Theresa May has said, well, look, you only have one choice, it's either me or Jeremy Corbyn. Andrew.

STEVENS: Yes, now I'm really in the (INAUDIBLE). It looks like they are in the front (INAUDIBLE) from Theresa May. But we're now in the second round

of these Brexit negotiations, the clock is ticking as the Europeans say. Is there a plan by Britain? Do they know what they want?

DOS SANTOS: Well, depends who you want. Some of the ardent Brexiteers know what they want and they want a clean break with the European Union on March

2019, which is two years exactly the day when the UK invoked Article 50 and decided that it was going to be leaving.

That's one part of the cabinet fraction (ph) that is splitting off led in particular by the international trade secretary Liam Fox, as I was saying,

very (INAUDIBLE) euro skeptics. But then on the other side of the equation back in Britain, we also got the Chancellor of the Exchequer, Philip

Hammond, who favors

[08:35:00] a very much more moderate stance here. He's been speaking to the business community for some time. He says that what we really need here is

a two-year transition period after 2019. So there's two different plans here brewing in Britain and over on the continent, as you can imagine,

there's a huge amount of frustration.

The Europeans looking at this situation back in Westminster and saying, you know, what is Britain's position? Once they get that figured out, then

we'll negotiate probably more substantially and more seriously, Andrew.

STEVENS: Yes, it's difficult to see how it can be much worse than it currently is. Nina, thanks so much for that. Nina dos Santos joining us

live from London. Now, the United Arab Emirates has denied that it was behind a cyber attack against Qatar. Several gulf states cut ties with

Qatar last month after its emir was quoted by Qataris state news praising Iran and Israel.

Qatar says hackers planted those quotes. Let's get more now from Jomana Karadsheh. She joins us now from Amman. The finger of blame was pointed by

Qatar at the United Arab Emirates who denies hacking the Qataris. Is there any clear indication of who is right in this case, Jomana?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, Andrew, I think we have to look at how this all unfolded. It all started in May, on the 24th of May, late

in the evening. These quotes appeared on the state news agency and they were attributed to the ruler of Qatar, quite unusual quotes really where he

was, as you mentioned, praising Iran and Israel, criticizing neighboring countries, saying that President Trump was not going to last in office and

many other quotes.

And then shortly after that, we heard from the Qataris saying that they had been hacked, that their state news agency had been compromised. But it was

a few days after that that we saw Qatar's neighbors, the Saudi-led blog making those moves to isolate Qatar cutting diplomatic ties with the

country. And that is when around that time, Andrew, that CNN reported according to several U.S. officials saying that the state news agency had

indeed been hacked and they said that they believe it was Russian hackers who were behind that.

It was unclear whether it was government-affiliated or if they were a criminal organization. And since then, we have this report coming out in

the past 24 hours or so from "The Washington Post" quoting several U.S. officials as saying that information that they had analyzed that surfaced

last week indicates, according to "The Washington Post," that UAW officials, senior officials in the emirates were involved in this. That

they had -- that they were discussing the plan and the implementation a day before this happened.

Of course, we had heard from several senior officials in the UAE completely denying this saying that this story is unfounded and that it is not true.

Now, the Qataris coming out and saying that this proves what they have said all along and they have accused the UAE of cyber terrorism and they say

that their investigation is continuing into this hack and they will bring those who were involved in it, the instigators and the perpetrators, as

they put it, to justice, whether in Qatar or international courts, Andrew.

STEVENS: OK. Jomana, thank you. Jomana Karadsheh joining us live from Amman in Jordan. Still ahead here on "News Stream," scientists in Germany are

working on new forms of clean energy. At the center of all that, an artificial sun. Stay with us.

[08:40:00] (COMMERCIAL BREAK)

STEVENS: The next generation of solar power is upon us. Scientists in Germany have build the world's largest artificial sun. Now, they are trying

to harness the intense heat to make solar fuel. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Synlight is by far largest artificial sun in the world. It's a research facility, an array of 149 lamps. Together they produce an

amount of light which corresponds to 100,000 household bulbs. That's 10,000 times more powerful than natural sunlight. The bulb inside our module is a

commercial cinema bulb. It consists of two massive electrodes. The power of our lights can be focused to a spot of a diameter of 15 centimeter and

relates to temperature of more than 3,000 degrees.

We use about 50 lamps and their concentrated life was able to (INAUDIBLE) a hole into this massive 20-millimeter thick aluminum plate. With the power

of 149 of these lamps, I guess we would be able to evaporate this plate in a few minutes. Our wish and our dream is to generate fuel from sunlight by

using temperature only. We want to split water into oxygen and hydrogen.

Hydrogen is called likely the golden egg of any fuel. It has highest entity of energy of all chemicals. We could use the hydrogen to create synthetic

fuels for airplanes. I'm extremely proud. It's my baby and I have the opportunity to build it. We hope it will be the next generation of solar

power. We hope to be ready in 10 years for industrial application.

(END VIDEO CLIP)

STEVENS: Obviously a very bright baby. That is "News Stream." Thanks for joining us. I'm Andrew Stevens. Don't go anywhere. "World Sport" with

Christina Macfarlane is just ahead.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

END