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World Headlines; Kushner Meets Abbas, Netanyahu To Restart Talks; Thousands of Children at Risk in Yemen; Affordable Housing. Aired 8-9a ET

Aired August 24, 2017 - 08:00   ET

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


(COMMERCIAL BREAK)

[08:00:00] KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

(BEGIN VIDEO CLIP)

LU STOUT: News coordinates in the Russia probe why an email from the former Trump campaign aide is getting attention.

Now Typhoon Hato blast Hong Kong at Southern China claiming the lives of at least 12 people.

And an air strike kills dozens in Yemen ever more Civil War is putting thousands on the barge of death from starvation.

(END VIDEO CLIP)

LU STOUT: Now sources tell CNN that U.S. Congressional investigators have endorsed an email from a former Trump campaign aide and it's rising new

questions in the probe of Russian meddling in the U.S. election.

They say Rick Dearborn who is now Mister Trump's deputy chief of staff sent an email last year to campaign staffers informing them that someone was

offering to arrange a meeting between Trump officials and the Russian President Vladimir Putin.

Now one source said this, in that email, Dearborn appeared skeptical of the requested meeting. Now joining us now with more on how this all came to

life, CNN Justice Correspondent Jessica Schneider. Jessica, what details are you learning about this email?

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Well, Kristie, we know it was sent out in June 2016. Just more than a year ago and in it, Rick

Dearborn, who at the time was a Trump campaign aide, he explained in that email that an individual was seeking to set up a meeting between top

campaign officials and Russian President Vladimir Putin.

Now the individual that was trying to set up that meeting is identified in the email as being from WV and one source says that is a reference to the

state of West Virginia, but still no clue as to who exactly this is.

Now, Rick Dearborn in the email appeared skeptical of the request to set up a meeting with Putin and it's still unclear if he ever acted on the

request.

But of course now, Kristie, Congressional investigators are coming through this email as well as the more than 20,000 documents that they now have in

your possession from Trump campaign. Kristie.

LU STOUT: And so the attention is back in the Trump White House in this ongoing Russia investigation as having any comment from Rick Dearborn or

anyone else in the Trump White House?

SCHNEIDER: So far Rick Dearborn has not responded to our request for comment and the White House at this point is only saying -- they are

putting it this way, saying they won't comment on potentially leaked documents which they think this is from Congressional investigators.

Kristie.

LU STOUT: Now, this email is from as you reported, June 2016. That's around the same time as that Trump Tower meeting involving Donald Trump

Jr., Jared Kushner, Manafort and Russians with ties to the Kremlin.

SCHNEIDER: Right.

LU STOUT: Is there any connection here?

SCHNEIDER: Well, so that's the big question for investigators. It does seem like June 2016 may have been a time when Russians were ramping up

their efforts to get information from the Trump campaign and maybe, even see if the campaign might take the bait on these proposed meetings.

And intelligence experts are saying that this all does fit a pattern of Russians trying to gather human intelligence from the campaign, and this

latest email proposing this meeting between Putin and Trump, it really does appear to be another potential attempt to gain an entry point into the

campaign.

So whether or not this is potentially connected to that email or that meeting at Trump Tower that has gained a lot of attention, which Donald

Trump Jr. and Paul Manafort, and Jared Kushner, that's going to be something we might see come to a resolution potentially somewhere down the

road. Kristie.

LU STOUT: All right, Jessica Schneider, reporting live for us from Washington, thank you. Now one name that's coped up a lot during

investigation into Russian meddling is Sergey Kislyak.

Now until recently, he was Russia's ambassador to Washington before he was brought back Moscow. He met with President Trump at the Oval Office

alongside the Russian Foreign Minister Sergey Lavrov.

Now, Matthew Chance caught up with Kislyak in another CNN exclusive.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT: Mister Ambassador quick question, did you discuss distinct sanctions with any members of the Trump team when you

are in the United States?

SERGEY KISLYAK, RUSSIA'S AMBASSADOR TO THE UNITED STATES: With due respect I'm here to talk to Russian people.

CHANCE: I understand that. You say you've got no secrets.

KISLYAK: I've said everything I wanted prior to this.

CHANCE: You're here to discuss opening secret channels with the Kremlin with Jared Kushner for instance?

KISLYAK: I've said many things that we do not discuss the substance so to hold -- discussion to American intellect out of respect to our partners.

CHANCE: Fair enough but when you met Donald Trump, the president, were you surprised when he disclosed secret information to you about Syria?

[08:05:00] KISLYAK: I'm not sure that I heard anything (Inaudible). But I'd lost a good meeting and we were discussing things that were important

to your country and to mine.

CHANCE: What about this allegation that you're a spy master, a spy...

KISLYAK: Nonsense.

CHANCE: Did you recruit any members of the Trump administration?

KISLYAK: You should be ashamed because CNN is the company that keeps up pointing to this allegation. It's nonsense.

CHANCE: U.S. security officials -- intelligence officials that made it, of course.

KISLYAK: I've heard dozens of statement by them and also by former (Inaudible) that was a diplomat. I have no reasons to go into that. He

knew what he said.

CHANCE: Just one last question.

KISLYAK: Yes.

CHANCE: What's your predictions to the future of U.S.-Russian relations?

KISLYAK: I'm afraid this is going to be difficult and it's not because of assets that goes on the U.S. political dynamics. The anti-Russian laws of

the Islam going to help Russian-Americans discussion...

(CROSSTALK)

KISLYAK: That's essential (Inaudible) -- essentials as an instrument, it's basic to the statement that began to Russia. That is the most important

thing and that's not going to be restored.

He is going to stay. He's going to spoil ability if both countries to resume a normal a scene in our relations and normal scene in our relations,

exactly what is missing.

CHANCE: Have you lost faith that Donald Trump is going to be out to do what he said during his campaign make things better with Moscow?

KISLYAK: I'm not sure that I operate with definition of faith -- absence of faith. We work with the United States based on the policies that evade.

We have seen so many different things about us. And we pretty come forward what we do for Russia and by the way, I'm here to do exactly what is

important to us.

CHANCE: Sergey Kislyak, thank you so much.

KISLYAK: Thank you, God bless.

(END VIDEOTAPE)

LU STOUT: Sergey Kislyak there, downplaying contacts with the Trump campaign. Now this week, we have seen two contrasting sides of the U.S.

president, first is fiery freewheeling speech at that rally on Tuesday, and then on Wednesday, a composed presidential address before military veterans

during.

Joining us now for more on this tale of two Trumps, Suzanne Malveaux, she joins us live. And Suzanne, in two days...

SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning.

LU STOUT: ... very, very different versions of President Trump.

MALVEAUX: That's absolutely right. People are watching here are they are wondering really which one should they take more seriously but it is clear

that he certainly is more spontaneous off script.

And he had demonstrated that he can present himself in a very different way on and off script. We saw this a call for national unity, this grand

speech he gave and then the morning after following that -- this was something where he had, and followed this fiery campaign rally where was

very, very divisive.

Kind of what some members of Congress are asking themselves, can they do business with this president as they get ready to go back to work.

(BEGIN VIDEOTAPE)

MALVEAUX: One after delivering an angry and divisive speech at a campaign rally.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They're bad people and I really think they don't like our country. They are trying to take away our

culture. They are trying to take away our history.

MALVEAUX: President Trump striking a dramatically different tone in reading the Teleprompter at the American Legion Convention.

TRUMP: It is time to heal the wounds that divide us and to seek a new unity based on the common values that unite us.

MALVEAUX: The president's wildly different speeches again prompting criticism from the nation's former intelligence chief.

JAMES CLAPPER, FORMER DIRECTOR, U.S. NATIONAL INTELLIGENCE: He'll make a scripted Teleprompter speech which is -- is goods and then turn around and

negated by sort of, you know, on bridal unleashed on chaperon Trump. And that to me is that pattern is very disturbing.

MALVEAUX: President Trump attempt to tamp down tensions comes as a new national poll says 62 percent of Americans feel the president is dividing

the country and 59 percent say his behavior encourages white supremacist groups.

The president's ripped with members of his own party growing in the aftermath of Tuesday's unhinged rally.

TRUMP: Believe me, we have to close down our government with building that wall.

MALVEAUX: House Speaker Paul Ryan responding to this threat on Wednesday.

PAUL RYAN, SPEAKER, UNITED STATES HOUSE OF REPRESENTATIVES: I don't think a government shutdown says here and I don't think most people want to see a

government shutdown, ourselves included.

MALVEAUX: President Trump reiterating his claim that Republicans are just wasting time if they don't get rid of the filibuster rule. An idea Senate

Majority Leader Mitch McConnell has already rejected.

[08:10:00] McConnell releasing a statement Wednesday insisting that he and Mister Trump are committed to advancing our shared agenda together, amid

reports that the relationship is rapidly deteriorating and that they haven't spoken in weeks.

This as CNN learns that the president has begun his effort to unseat one of his top Republican critics huddling with potential challengers to Senator

Jeff Flake before taking the stage in Phoenix Tuesday night.

TRUMP: And nobody wants me to talk about your other senator who's weak on voters, weak on crime.

MALVEAUX: Two other Republican leaders appear to be the president's crosshairs over Russia. Politico reporting that President Trump Senator

Thom Tillis earlier this month to discuss a bill that Tillis had designed to protect Special Counsel Robert Mueller from being fired.

And in a separate phone call in July, the president expressed his frustration with the Russia sanctions bill to Senator Bob Corker, the

Foreign Relations chairman voicing his concerns about the president's temperament weeks later.

SEN. BOB CORKER (R), TENNESSEE: The president has not yet -- has not yet been able to demonstrate the stability nor some of the components that he

needs to demonstrate in order to be successful.

(END VIDEOTAPE)

MALVEAUX: Kristie, I apologize for all the noise behind us. Of course, they're mowing the lawn here at the White House and they are doing

renovations but to let you know, that behind the scenes, President Trump is going to be meeting behind closed doors for the Director of Office and

Management and Budget Mick Mulvaney.

That in preparation of what's expected to be pretty though fight with Senate Republicans over raising the debt ceiling. The Wall Street Journal

is also reporting that the president is getting ready to roll out that military van against transgender individuals.

This was some of the things he is working on but clearly, there are still a lot of tension between the president, either members of his own party as

they are getting ready to go back to work in just a week. Kristie.

LU STOUT: Got it. Suzanne Malveaux reporting live from the White House, a lot of activity inside and out. Thank you, Suzanne.

Meanwhile, the U.S. defense secretary has promised Washington support for Ukraine against Russia. James Mattis spoke with President Petro Poroshenko

in Kiev. It has been more than three years since Russia annexed Crimea and here's what Mattis said about that.

(BEGIN VIDEO CLIP)

JAMES MATTIS, DEFENSE SECRETARY, UNITED STATES: We do not and we will not accept Russia's seizure of the Crimea and despite Russia's denials, we know

they are seeking to redraw international borders by force undermining the sovereign and free nations of Europe.

(END VIDEO CLIP)

LU STOUT: Our Nick Paton Walsh is of course supported extensively on the conflict and eastern Ukraine. He joins us now live from CNN London.

And Nick, we heard it there from the U.S. secretary of defense that U.S. is pledging to help Ukraine and its army but how?

NICK PATON WALSH, CNN CORRESPONDENT: We don't know exactly. We heard reports that the Pentagon are contemplating supplying lethal aide to

Ukraine which basically most we're seeing for weapons that could be used on the offensive as well as defensive.

And so far I've been given basically normally for which surveillance equipment, protective equipment that contemplating, providing antitank

missiles, maybe antiaircraft missiles as well.

None of that though discussed in public, Petro Poroshenko said that he was satisfied with the discussion they had about military aide but we would

keep the contents of them, silent was jarring about this, Kristie, there is not a change in U.S. policy.

This has been the Obama administrations possession and it is the Trump administrations position as well but this is the first secretary of defense

of the United States to visit Ukraine since the early days of the Obama ministration system began really since Crimea was annexed.

And he's very forcefully restating a position of a White House that many consider to be frankly too close to Moscow that have been investigated for

collusion with the Kremlin for some degree. So the broader issue here is the symbolism of Jim Mattis of strident military figure, standing in

central Kiev, joining Independence Day military parade saying Ukraine will review.

And quite what that would do in terms of the perception of Moscow about how much quieter this will get and whether or not these Ukrainian ministry

under equipped compared to the separatist there fighting that Russian military systems. But (Inaudible) again their advantage on the battle

field, Kristie.

LU STOUT: Yea, as you put it, this is a very symbolic moment. How do you think Russia is going to respond to seeing Mattis there in Ukraine and

expressing America's support of Ukraine?

WALSH: Moscow often hard to read when it comes to separatists because they unofficially back the military, the often times speak when you didn't

expect them to. They may have a reaction to Mattis' words that they don't actually mark a change in policy.

I think what will -- the Kremlin definitely is the idea that lethal weapons can be supplied to the Ukrainian military, they will proceed those

potential things that can be used in the offense rather than the defense, that's what Petro Poroshenko, the Ukrainian President say what's the point

of any weapon deliveries moving forward if anyone chose to attack Ukraine.

They can defend themselves better but of course Moscow quite gave more of supplying the separatist themselves. We've seen large amounts of hardware

pulled into a small area base in Ukraine held by the separatists.

[08:15:00] That hasn't stopped about it may (Inaudible) and if we see this sort arms race get on the way through the U.S. supplying in its resistance

to Ukraine. A marked moment though for Ukraine's sense of international coalition.

It now has the new White House for all the criticism they got about being too close to Russia, standing side by side and what a momentous day for

them of Ukraine independence. Kristie.

LU STOUT: And while in Kiev, Secretary Mattis also said the U.S. is committed to diplomacy and diplomatic efforts to resolve the conflict in

eastern Ukraine. I mean we know that there are sanctions in place. What's the latest on a diplomatic Push?

WALSH: Well, just today, in fact I had the sort of return to school term, strains to how they become the works in war. The separatists have said

they wish to get back to obsession of ceasefire but only recent as Sunday, we've replied heavy artillery exchanges around the city of (Inaudible).

This ceasefire been in place since 2015 but we still talking about the war has been I think a nice piece of paper but is at times used to be referred

back to -- to calm ministry endeavors by both sides frankly but there's an agenda both sides have.

Ukraine has to deal with this nationalist contingent. They want to see those territories retaken from Russian separatist and Russia wants to see

Ukraine constantly weakened by having policies and flank out its on control. Ready to be sure that Kiev doesn't get ambitions about joining

NATO or EU that could actually be realized.

So a lot at stake here but diplomacy frankly, not much of it, they keep talking about going back to the moment before a full month of talks

reviving the ceasefire.

Yes at times it seems to slow the violence becomes a flare up into a stalemate but at this point certainly, too. We are not talking about a

convincing ceasefire, people die every week.

LU STOUT: Nick Paton Walsh as always. Thank you. You're watching News Stream. Still ahead in the program, storm surges, flooding, massive power

outages, Typhoon Hato has left Southern China but authorities in major cities are still dealing with the construction it left behind.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong. Welcome back. This is News Stream. Now in the Philippines, the recent killing of a teenager by police

is sparking protests and renewing the debate over the country's heavy- handed war on drugs.

(BEGIN VIDEO CLIP)

LU STOUT: This 17-year-old student was gunned down by police in Manila. The officers involved say that the open fire after the teen pulled out a

gun but security footage seems to show the officer is dragging away the teen right before he was shot.

A Senate inquiry is looking into killing. The teen was among some 80 people killed by police on that day and a new anti-drug initiative called

One Time Big Time.

(END VIDEO CLIP)

[08:20:00] LU STOUT: Now at least 12 people were killed when Typhoon Hato barreled through Southern China. There is a lot of damage in Macau.

(BEGIN VIDEO CLIP)

LU STOUT: Macau is trying to restore water and power after the storm. Authorities there say it was the worst typhoon to hit in 53 years.

Now Hato sparks storm surges and flooding, and here in Hong Kong, trees were ripped up across the city. You could see here just a shocking moment.

Hato threw a suspended platform an apartment window, so dangerous. Hato started off as his mid-level tropical storm but as you saw, it rapidly

strengthened into a destructive typhoon.

(END VIDEO CLIP)

Let's bring up our meteorologist Chad Myers from more. And Chad, you warned us before the storm hit, after the storm walking and drive around

the city today, you can see fallen trees and debris everywhere. We know that the cleanup is underway here but describe the power of the storm.

CHAD MYERS, CNN METEOROLOGIST: We talked about it. I think it was on Tuesday because I know it was before the storm hit and the forecast was for

130 kilometers per hour and we were looking at models here in the weather office, Kristie.

And we saw some models saying 170 kilometers per hour and that is a large difference. That is huge. I know we only seen like a 40 or 50 number but

the wind speed power that can happen in the difference there, 170, 180 is huge.

It pushed a lot of water into Hong Kong. It pushed a lot of water into Victoria and we talked about how much damage happened in Macau. Think

about what has happened to that city over the past 20 years.

The buildup, the massive infrastructure, the massive building that has gone on almost explosive type of building going on there and all of the sudden

you push 180 kilometers per hour storm, and even some spots had wind speeds at 200 kilometers per hour when it comes to wind gusts, and that is enough

to knock almost anything down.

Rapid intensification, it went from a signal six to a seven, to an eight, nine and 10. Signal 10 right through Hong Kong as the storm rapidly

develop right offshore and even 101 -- I'm not even sure how high in the sky this could've been.

It could have been a top of the building and that makes a big difference, 223 kilometers per hour in one of the locations in Hong Kong. Let's roll

some video because I can talk here all day long.

(BEGIN VIDEO CLIP)

MYERS: But let's show you exactly what this storm looked like as it moved on shore, as it pushed water into the streets, into the town, in to the

harbor and then over the barriers that typically are three or four, or five feet. Almost a couple meters above sea level.

Well this was no match for this water, coming over -- completely over the top, blowing itself into the city itself. The streets were completely

clogged, sewer systems completely clogged and homes, and businesses, cars, motorcycles, just completely underwater, and the wind was howling to

knocking buildings of hearts, some higher elevation buildings.

The windows were coming out and blowing around the street. That's why you need to be inside when this type of wind blows through and were still

seeing the potential for more in the way of flooding with Hato because I don't believe it's just over yet.

(END VIDEO CLIP)

MYERS: We'll go back the maps and I'll show where it is now, where it is gone, where does it come from and where this is going out, still going east

toward Hanoi.

That's where their heavy rainfall may be, still 250 millimeters of rainfall, possible with the storm and that will cause more flash flooding.

And I don't even want to go here but I have to because here's the next storm. Here's the Philippines, there is a high risk of significant

development of the very next storm that could track very, very close to where the last one just went. Kristie.

LU STOUT: Thanks for your warning. Another storm on its way, Chad Myers, thank you. Take care. Now to a conciliatory message from the Chinese

president to his counterpart in South Korea, and I'm trying to -- as Global Times report that Xi Jinping says he is ready to work with Moon Jae-in to

address differences between the two countries.

Relations have cooled ever since he was agreed to set a big missile defense system in South Korea. Beijing is concerned about having such an advanced

military asset at its door step. Chinese authorities have shut down tours to South Korea and latte a being South Korean conglomerate, so most of its

retail stores in China closed.

Meanwhile, parts South Korea took a break from everyday life for civilian drills. So these exercises are carried out in case of a variety of

emergencies, including a possible military strike from the North. Paula Hancocks has that.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: Preparing for the worst. South Korea's emergency services have put through their paces at the time when tensions

with North Korea are high. This simulated attack with Seoul but it's a scene replicated around the country.

But depending on which official you speak to and we've told that the scenario they're looking at here is when attack criminals Korea -- from

North Korean aides or just because of the lightly heard of a terror attack around the world at this point.

[08:20:00] A bomb attack on the subway in the city of 10 million people, a chemical released on the ground, fire and explosions in a train station,

military, police, fire fighters, worked together to minimize casualties and treat the wounded.

Civil defense drills that go inside this year with the Joint U.S.-South Korean military exercise leading to furious verbal threats from the north.

Seoul's deputy tells me every year we trained for any attack from the north. We train with the U.S. military here today, we're training with the

military firefighters and civilians.

An (Inaudible) siren sang across the country, an annual drill to remind citizens what to do in case of attack, a drill that's been held for decades

and these days completely ignored by most people until the police step in.

As soon as drivers hear the siren, they supposed to pull for side of the road and everybody is suppose to get out and run to the nearest shelter, in

a subway station for example.

But the very fact that people had stopped the traffic is a perfect example of how South Koreans deal with the North Korean threat. Life goes on.

A population whose been technically at war with this Northern neighbor since the 1950's, a city that takes North Korea's threat in its stride.

Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: One year after that massive recalls, Samsung has released the Galaxy Note 8 smart phone. Now this is the first new phone that aligned

since the Note 7 fiasco. It gets rid of the home and has an infinity screen.

They also highlights an improved camera, as well as photo editing tools, but it's clear that the focus is on winning back consumer trust.

Now Samsung says the battery in the new phone had an eight step safety check and got the thumbs-up from the third-party company. Now last year's

Note 7 debacle really hit the company hard.

It was one of Samson's flagship smartphones that have glowing reviews until several customers reported that their phones caught fire while charging.

The problem as you a recall, it was a severe airline started banning Note 7.

Samsung said there was a problem with the batteries and we called two and half million phones. The company then built that replacements with new

batteries, but then those phones as you remember also caught fire, forcing Samsung to kill off the Note 7 entirely.

It was estimated that cost them more than $5 billion in profit. And just ahead right here on News Stream, one meeting completed, another meeting to

go. We'll have a live report on Jared Kushner's latest effort to revive peace talks. Also ahead, we'll meet some of the youngest victims of the

Civil War in Yemen.

(COMMERCIAL BREAK)

KRISTIE LU STOUT, CNN NEWS STREAM SHOW HOST: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream." These are your wold headlines.

Our sources tell CNN an email received last year by a campaign agent of Donald Trump suggests there was an effort to arrange a meeting between

Trump campaign officials and Russian President Vladimir Putin. The email came from Rick Dearborn, who is now Donald Trump's deputy chief of staff.

Police in Netherlands say it is (INAUDIBLE) to tell whether a van found near Rotterdam concert venue is related to Wednesday's terror threat. The

concert was canceled before it started. The van had Spanish plates. It was carrying gas cylinders.

Qatar is sending its ambassador back to Iran to restore full diplomatic relations. It comes in direct defiance of four nations that have a boycott

on Qatar. Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt have been pressuring Qatar to end ties with Iran altogether. It could be a start

towards a new Iran peace talks.

U.S. President Donald Trump's son-in-law and special advisor Jared Kushner met with Israel Prime Minister Benjamin Netanyahu, and he is scheduled to

meet with Palestinian Authority President Mahmoud Abbas. Kushner says the U.S. is committed to finding a solution that will bring prosperity and

peace to the region.

Correspondent Oren Liebermann joins me now live from Jerusalem. Oren, how will Kushner's meeting today lead the progress for peace in the Middle

East?

OREN LIEBERMANN, CNN CORRESPONDENT: One of the things that sorely lacking at news from the first read out of the meeting with Prime Minister Benjamin

Netanyahu is any sort of concrete steps or any vision for where these negotiations or at least the attempts at restarting the negotiations are

leading, and that's the big issue here.

The Trump administration has never openly and fully committed to a two- state solution, which is the international consensus on where this has to go for the state of Israel and state of Palestine, but that has not been

something that Trump administration has committed itself to.

And from the Palestinian perspective, that is a big problem. We got the first read out of the meeting between Kushner and Netanyahu. It was short.

It was generic. There were no concrete goals or steps or timeline. And I would expect we will get a very similar read out from the meeting between

Kushner and Palestinian President Mahmoud Abbas.

There isn't yet a clear definition of where this is all heading. That is very frustrating for the Palestinians. Meanwhile, Kushner has to deal with

a different issue. Netanyahu, who is under criminal investigation has shifted sharply to the right to show his support within his own party,

within his own voter base, that gives very little flexibility in terms of a peace process. That makes this all difficult.

But there are two things that are worth pointing out. First, Kushner visit other gulf states. That is an incredibly smart move if you're going to try

to make a sort of regional peace initiative that have all the important players in the region on board. So Kushner visited Egypt, visited Saudi

Arabia, as well as Jordan.

Second, the fact that Kushner is here again, this is his third trip as part of the administration, indicates how serious Trump is about this. And if

Trump remains serious and decides to make a few steps here, you have to believe that the Israel and Palestinian leaders will go along with it.

Kristie?

LU STOUT: Yes. As you point out, you know, this is Kushner's third trip there. He has met with multiple players in the region including Egypt. He

was just in Cairo. Egypt, of course, being one of the key actors in Middle East peace process. But how will the U.S. decision to hold back aid to

Egypt affect that process?

LIEBERMANN: We'll have to see how that plays out. That certainly would have made for some awkward moments in the meeting, Kushner trying to get Egypt

on board and President Sisi on board while the White House just got a hundred million dollars in aid.

They tried to keep it away from that in the read out of the meeting, trying to focus on a peace process here. But, Egypt would still, I would imagine,

be very involved if there was some sort of regional peace initiative since Egypt has been on board with the idea and supported a two-state solution

now for decades.

LU STOUT: Oren Liebermann reporting live for us. Thank you, Oren.

Reports out of Yemen say an airstrike that hit a hotel in the outskirts of the capital killed at least 48 people. Under civil war, Yemen has thrived

on for years, and the U.N. says more than 10,000 people have been killed.

Lynda Kinkade now reports and warns that hundreds of thousands of children will die in the coming months if something isn't done. And a warning, some

of these images in this report are truly disturbing.

(BEGIN VIDEOTAPE)

LYNDA KINDADE, CNN ANCHOR (voice-over): It's been dubbed the forgotten war. While the world is focused on Syria, the people of Yemen have enjoyed two

and a half years of full-blown conflict. A war actually under reported, partly because of a ban on journalists and aid groups. The children of this

war are suffering the most.

DAVID BEASLEY, EXECUTIVE DIRECTOR, U.N. WORLD FOOD PROGRAMME: We're trying to serve nine million people in Yemen. If we don't receive the funds that

we need, we're literally talking about hundreds of thousands of children alone die in the next few months and millions of people on the brink of

starvation.

[08:35:00] KINDADE (voice-over): The United Nations is at a loss, unable to make a real impact.

STEPHEN O'BRIEN, U.N. UNDER-SECRETARY-GENERAL, HUMANITARIAN AFFAIRS AND EMERGENCY RELIEF COORDINATOR: It grieves me that in these last two years

and despite my and my team's best efforts, I have been unable to report any significant improvement in the deplorable, avoidable, completely man-made

catastrophe that is ravaging the country.

KINKADE (voice-over): Houthi rebels in the north, allied with the former president and Iran, are fighting those in the south, allied with the

current president and the Saudi-led coalition.

The United Nations blames the government and the Saudi coalition for failing to let them deliver help to those who need it most in the areas

held by rebels in the north.

While the Saudi coalition blames the rebels, saying they are using the same port to smuggle in weapons. That port has been the target of Saudi

airstrikes.

O'BRIEN: Let us be clear. Most of the need is in the north of Yemen, not the south.

KINKADE (voice-over): Amnesty International claims all sides have committed human rights violations, including war crimes. They add that other

countries have potentially contributed. The U.S., U.K., France, Spain, Canada, and Turkey have transferred nearly $6 billion worth of arms to

Saudi Arabia between 2015 and 2016, including bombs and rockets, which risk being used in Yemen.

Some of those weapons are banned under international law. And with vital infrastructure destroyed, a cholera outbreak is playing havoc. More than

half a million people have caught the disease and without treatment, many won't survive it. Lynda Kinkade, CNN.

(END VIDEOTAPE)

LU STOUT: You saw right there in a report from Lynda. Thousands of children are at extreme risk in Yemen. Learn how you can help. You can check out our

website, cnn.com/impact, and there you can find more information on disaster relief. You're watching "News Stream." We will be back after the

short break.

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LU STOUT: Welcome back. Detroit's economy is going through a revival years after the city filed for bankruptcy, but with an improving economy comes

other problems like the issue of affordable housing. Matt Rivers looks at how Detroit is looking for innovative ways to solve that problem.

(BEGIN VIDEOTAPE)

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT (voice-over): Detroit is the city where Henry Ford has drove his first car. Remote town made a signature

sound. But in the past decade, its identity has been tied to economic decline. In 2013, it became the largest city in U.S. history to file for

bankruptcy.

Now in a period of recovery, Detroit, like many American cities, is feeling the pressure to offer affordable housing to its citizens.

UNIDENTIFIED MALE: The real estate market both here in Detroit and around that the issue is one where purchase prices and rent are increasing faster

than people's incomes are. That is a manifestation of an improved economy, but still a problem for us here in Detroit and in Michigan.

[08:40:00] RIVERS (voice-over): But there may just be one tiny solution. With home raging from about 23 to 37 square meters, the Cass Community

Social Services' tiny homes project aims to be the missing link in low- income housing.

UNIDENTIFIED FEMALE: We've worked with homeless people now since 2002 residentially, providing them housing, emergency shelter, transitional

shelter, permits for housing. But when they're done, when they're ready to move out and move up, it is where there is no place for them to go in terms

of clean, safe, affordable housing. And so began thinking of how we could do that and make affordable housing with home ownership.

RIVERS (voice-over): So, how affordable are they? At a dollar per square foot per month, none of these current homes will cost more than $400 a

month to rent. And after seven years of on-time rent payments, each resident can legally become the owner of the property. Keith (ph) is going

to be one of the first residents here.

UNIDENTIFIED MALE: I chose this house because this house (INAUDIBLE) than the others. Beautiful setup.

RIVERS (voice-over): As someone who isn't eligible for a traditional mortgage but does have a steady income, this is an opportunity for him to

be a step closer to home ownership.

UNIDENTIFIED MALE: I went to prison, so it's kind of hard when you come out. For someone to give you a second chance of getting apartment of your

own or a house of your own (INAUDIBLE).

RIVERS (voice-over): Soon, there will be 25 of these tiny homes and there are plans to build 10 additional larger ones for families, giving all of

these residents a chance to have keys to their future.

(END VIDEOTAPE)

LU STOUT: Great idea. Beautiful design there. Now, finally, one very lucky lottery winner in the U.S. is now very, very rich. The winning ticket was

sold at a store in the east of Massachusetts worth $759 million. It is the largest jackpot ever won with a single ticket in North America.

The odds have always been slim for this draw. In fact, you are, yes, far more likely to be killed by an asteroid than to get all winning numbers.

The earnings will be taxed like income. About half of it goes to the government, but still, not a bad day's pay. Congrats to the winner.

That is "News Stream." I'm Kristie Lu Stout. But don't go anywhere. "World Sport" with Amanda Davies is next.

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[08:45:00] (WORLD SPORT)

END