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Moon hails dialogue but holds steady on nuclear deal; Renewed dialogue could signal new era; Judge blocks Trump`s efforts to end DREAMers program; Senator releases transcript of Fusion GPS interview; Pres. Moon: dialogue has been restored; U.S. based firm to resume hunt for MH370. Aired at 8-9a ET

Aired January 10, 2018 - 08:00   ET

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


[08:00:00] (COMMERCIAL BREAK)

KRISTIE LU STOUT, CNN ANCHOR: I`m Kristie Lu Stout in Seoul, South Korea, and welcome to News Stream.

(BEGIN VIDEO CLIP)

LU STOUT: The future on the Korean Peninsula could be looking more positive, at least from the South Korean perspective. President Moon Jae-in

says he wants to solidify peace.

And helping the DREAMers -- a temporary block on the Trump administrations attempts to stop a program helping young undocumented immigrants, and the

search begins again, U.S. look for MH370 flight three years the airplane and all those on banished.

(END VIDEO CLIP)

LU STOUT: You are watching News Stream. A special edition coming to you live from Seoul and begin with what could be a change in landscape

following this week`s talks between North and South Korea.

Now the South Korean President Moon Jae-in gave a televised speech earlier today. He praised the, what he called, restoration of dialogue.

But at the same time, stressed that little has changed in terms of sanctions, saying that Seoul has no plans to ease them any time soon.

And after months of U.S. President Donald Trump firing back at Kim Jong-un with those aggressive tweets, President Moon credited him for making a huge

contribution to bringing these two sides together.

Ivan Watson has been closely following developments here on the Korean Peninsula. He joins me now. And, Ivan, you were there at the pressroom this

morning. What was your sense about president`s -- about Mr. Moon`s reaction to the talks, and also what`s next in terms of North-South relations?

IVAN WATSON, CNN CORRESPONDENT: Well, he was all smiles. He said he was trying to light a candle for peace here on the Korean Peninsula. And of

course, he has called the upcoming Winter Olympics to be held in South Korea, the peace games.

He says that he wants to ensure the safety and reduce the anxiety for all of the citizens here in South Korea. Take a listen to an excerpt of what he

had to say during this long televised appearance.

(BEGIN VIDEO CLIP)

MOON JAE-IN, SOUTH KOREAN PRESIDENT (through a translator): Although dialogue with North Korea has started, the North Korean nuclear issue

hasn`t been resolved. Therefore, we plan on keeping peace with the international community on imposing sanctions.

South Korea is not currently planning on unilaterally easing sanctions on North Korea -- independent of international sanctions.

(END VIDEO CLIP)

WATSON: Now, that`s something that President Moon kept hammering home, the nuclear issue saying that if in the future there could be steps made to

further improve relations that the nuclear issue really need does need to be address and as you pointed out, yes, he took time to also thank the

Trump administration for helping bring North Korea to the negotiating table.

As you heard from his own advisor yesterday who made the case that because of U.S. pressure, it closed the doors for North Korea to talk to

Washington. So instead, it has reached out to try to talk to Seoul. Kristie.

LU STOUT: All right, and your thoughts on where we are right now. We`ve got North and South Korea. They reached a number of breakthroughs through these

talks.

They are offering, or at least the South Koreans are offering credit to Donald Trump to make sure that that relationship is OK. And this comes

after a very troubling and challenging 2017, of those relentless missile tests, the most powerful nuclear tests in North Korean history. Is where we

are at right now is just a pause or is it the start of a de-escalation and easing of tension?

WATSON: Well, certainly, it`s the most de-escalation we`ve seen in years right now, a resumption of, you know, hotlines and military -- military

communication.

And it seems to have been if not, welcome, then at the very least, a source of relief. I`d like you to take a listen to what some South Korean have had

to say to us about these ground breaking negotiations.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through a translator): The Korean Peninsula, and neighboring countries including China, Japan and Russia. When the neighbors

are peaceful, Korea will become peaceful, too. So I like the idea of the talks.

UNIDENTIFIED FEMALE: I think it`s nice like symbolic move, even if it doesn`t necessarily achieve that much.

UNIDENTIFIED MALE: I think it also showed, you know, the world that North Korea can put the politics aside, but played, you know, sports, and arts

before politics.

(END VIDEO CLIP)

WATSON: So again it`s been greeted with relief. I do have to point out, though, Kristie, that even during these, you know, talks that took place,

there were a lot of smiles.

[08:05:03] There were a lot of kind words exchanges between the North and South Korean negotiators on Tuesday. The talks ended with some acrimony.

You had both chief negotiators kind of sniping at each other about kind of specifics that are quite big. You know, you had the South Korean negotiator

defending South Korean journalists against accusations coming from the North Korean negotiator.

And they kind of went off -- on against each other. Pretty remarkable exchange there and it does underscore that though there has been this brake

through, the gulf between these two neighbors is still enormous.

And it will be very interesting to see how the logistics are worked out for what it potentially quite a large North Korean delegation to try to get

here to the Olympics in just one month`s time. Kristie.

LU STOUT: Yes, absolutely. And very key to point that out despite the significance, all the break through, et cetera. That acrimony is still

there between North and South. Ivan Watson reporting, thank you.

The talks this week, they were the first time North and South Korea sat down face-to-face high level meeting in over two years. Many observers are

hopeful at the meeting marks a new era in their relations. CNN`s Paula Hancocks takes this closer look.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: This is where it all happened the truce village of Panmunjom in the DMZ, the demilitarized zone, the site of a vast

improvement of relations between North and South Korea.

And behind me, there is a small and raised slab of concrete, which is the border between North and South. A world of difference between the two

sides, politically, economically.

And yet, it was a simple step for a North Korean delegation to move towards of their own different time, an inter-Korean relations, at least for now.

North Korea will attend the Pyeongchang Winter Olympics, the South is making all the arrangements, an amicable meeting for the most part.

Chief negotiator Ri Son-Gwon said probably in the history of North-South Korean talks, never have so much been accomplished in such a short time.

Also, a rebuke to South Korea saying reports, they were holding meetings of the de-nuclearization was total nonsense and a message for the United

States, saying the bombs and missiles are aimed at America not at Korea, China or Russia.

But the South Korean president said that improving relations with the North and resolving the North`s nuclear issue cannot be separated. Paula

Hancocks, CNN, at Panmunjom, in the DMZ.

(END VIDEOTAPE)

LU STOUT: So, is this new era and how much credit can be given to U.S. President Donald Trump? Well, let`s bring up our guest, Duyeon Kim, who is

Seoul based a non-proliferation expert.

Oh, unfortunately, I`m sorry, we don`t have that contact with Duyeon Kim. We hope to re-establish that a little bit later this hour. Now, let`s go to

the U.S., where a federal judge has temporarily blocked the effort for to end DACA.

It`s a program protecting hundreds of thousands of DREAMers illegally brought to the U.S. as children. The program was set to expire in March.

The ruling comes as the White House tries to shore up bipartisan support for the future of these young immigrants, but President Trump is assisting

that a border wall must be a part of any deal.

CNN`s Joe Johns joins me now live from Washington. Joe, thanks to this federal judge`s temporary block, DACA is alive for now. How is this

affecting talks in Washington about DACA and immigration?

JOE JOHNS, CNN CORRESPONDENT: Everybody`s guess, quite frankly. But I can tell you, obviously, the Democrats have been pushing hard to extend DACA.

The court ruling seemed to agree with that position, so it does appear at least in the short term that it`s advantaged Democrats.

Though the Justice Department has made it clear that in their view, this thing was put in place by President Obama in contravention of the will of

Congress. So we expect more court back and forth on the issue in the days to come.

(BEGIN VIDEOTAPE)

JOHNS: A federal judge blocking the Trump administration`s decision to end the DREAMers program on March 5th, ruling that protections must remain in

place while pending legal challenges proceed and ordering the government to resume taking renewal applications.

The Justice Department responding that the ruling does not change its position that the Obama-era program is unlawful, asserting that it will

continue to defend its position in further litigation.

The late-night court surprise coming hours after the remarkable televised meeting between President Trump and bipartisan lawmakers over a potential

deal for the DREAMers.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This should be a bipartisan bill. This should be a bill of love. Truly should be a bill of love.

[08:10:00] JOHNS: President Trump suggesting a compassionate solution, suggesting flexibility.

TRUMP: I think my positions are going to be what the people in this room come up with.

JOHNS: Mr. Trump also signaling an openness to pursuing a larger immigration deal.

TRUMP: If we do this properly, DACA, you`re not so far away from comprehensive immigration reform. And if you want to take it that further

step, I`ll take the heat. I don`t care. I don`t care. I`ll take all the heat you want to give me. And I`ll take the heat off both the Democrats and

the Republicans.

JOHNS: At times, the president appearing to contradict himself, insisting that border security must be part of any agreement but also suggesting he

is open to a clean DACA bill.

TRUMP: I have no problem. I think that`s basically what Dick (ph) is saying. We`re going to come up with DACA. We`re going to do DACA, and then

we can start immediately on the phase two, which would be comprehensive.

JOHNS: House Majority Leader Kevin McCarthy interjecting this.

REP. KEVIN MCCARTHY (R), MAJORITY LEADER: Mr. President, you need to be clear, though. I think what Senator Feinstein`s asking here, when we talk

about just DACA, we don`t want to be back here two years later. You have to have security.

JOHNS: It was unclear if border security meant a wall. The White House offering little clarity.

JIM ACOSTA, CNN CORRESPONDENT: What has to be part of a deal in order for these DREAMers to have protection?

SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: Border security does have to be part of this process. Andrew...

ACOSTA: But you understand how the wall could be different than border security, Sarah. Border security can be...

(CROSSTALK)

SANDERS: No. Actually, I don`t. No.

ACOSTA: Border security could mean agents. It could mean more fencing. It doesn`t necessarily mean a physical wall that the president...

SANDERS: That is part of the negotiation we expect Congress to have.

JOHNS: Mr. Trump later tweeting that a wall must be part of any DACA approval.

(END VIDEOTAPE)

JOHNS: Now, just to be clear, first and foremost, the president`s performance yesterday with the members of Congress here at the White House

was in part to allay any concerns that have been circulating over the last several days about his fitness to serve.

Today, we do expect to see the president in a news conference with the prime minister of Norway. It will be the first time the president holds a

formal news conference with members of the press here since November. Back to you, Kristie.

LU STOUT: All right. Joe Johns, live for us from the White House. Thank you. Down to the latest on the Russian investigation, the top Democrat on

the Senate Judiciary Committee has released a transcript of testimony given by the co-founder of the firm behind the infamous Russia dossier on Donald

Trump. That transcript reveals fears that Trump was being blackmailed. Jim Scuitto has more.

(BEGIN VIDEOTAPE)

JIM SCUITTO, CNN CORRESPONDENT: Former British spy Christopher Steele was so concerned then-candidate Donald Trump was being blackmailed by Russia

that he went personally to the FBI.

This, according to newly released transcripts of testimony by Fusion GPS founder Glenn Simpson, whose firm paid for the so-called Steele dossier.

He was very concerned about whether this represented a national security threat and said he thought we were obligated to tell someone in government

-- in our government about this information. Simpson told the Senate Judiciary Committee in closed-door testimony.

He thought from his perspective there was a security issue about whether a presidential candidate was being blackmailed. Simpson testified that Steele

contacted the FBI in July 2016 and then met with the FBI attache in Rome in September.

According to Simpson, Steele told him the FBI, quote, believed Chris` information might be credible because they had other intelligence that

indicated the same thing. And one of those pieces of intelligence was a human source from inside the Trump organization.

A person close to Simpson`s testimony clarified that Simpson`s mention of an internal Trump campaign source actually refers to the Australian

ambassador who also contacted the FBI to pass on information he received from then-Trump foreign policy adviser George Papadopoulos.

In his sworn testimony, Simpson also pushed back against GOP arguments that the research and release of the dossier was directed by Democrats in the

DNC, saying that the dossier was Steele`s work.

Did you have any input or involvement in the drafting of these or input for the research, he was asked. No, he answered. And did you edit them in any

way? Again, Simpson answered, no.

Feinstein`s Senate Office released the transcript of the ten-hour interview, at the same time she was sitting across from the president in a

meeting today.

She issued the release without the support of the committee`s Republican Chairman, Senator Chuck Grassley of Iowa, who had argued the committee

needed to temporarily protect certain information while an investigation was ongoing.

SEN. CHRIS COONS (D), DELAWARE: I think it`s really unfortunate that the majority and minority on the Judiciary Committee have really come to an

impasse in terms of being able to make progress. I think in some ways this is the signal of the end of bipartisan cooperation on the Senate Judiciary

Committee.

SCIUTTO: In a statement, California`s senior senator said she released the transcript because, quote, the American people deserve the opportunity to

see what he said and judge for themselves.

[08:15:00] Adding, quote, the innuendo and misinformation circulating about the transcript are part of a deeply troubling effort to undermine the

investigation into potential collusion and obstruction of justice.

Now the spokesman for the Republican chairman of the Senate Judiciary Committee very critical of Feinstein`s move. The spokesman saying that the

move undermines the integrity of the committee`s work there, making the point it will be difficult to get other witnesses to testify because they

might fear that their testimony will be then made public.

And as an example says that they`re pursuing Jared Kushner, for instance. You have this split here in the Senate Judiciary Committee, already very

partisan splits in the House Intelligence Committee.

So far the Senate Intelligence Committee working a fairly bipartisan way, but writ large here, concerns that this Russian investigation is going in

separate ways, a Republican way and a Democratic way. Jim Sciutto, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: And that was CNN`s, Jim Sciutto, reporting there. OK. You are watching CNN News Stream coming to you live from Seoul. Later in the

program, solving the mystery of Malaysia Airlines Flight 370.

A new deal is struck to resume the search for a plane that went missing almost four years ago. Also ahead, a legendary French actress is

criticizing the #MeToo movement. Why Catherine Deneuve now says the social media campaign has crossed the line. Stay with us.

(COMMERCIAL BREAK)

LU STOUT: All right. Welcome back. Coming to you live from Seoul. This is News Stream. A significant found relations between North and South Korea

after yesterday`s inter-Korean talks.

And this morning, South Korean President Moon Jae-in gave a televised speech following those breakthrough talks with Pyongyang. He say that he

welcomes restored dialogue with North Korea.

He also added that war must not breakout on the Korean peninsula again. President Moon also thanked U.S. President Donald Trump with making a huge

contribution for bringing the North and South together for these talks.

And joining me now is, Duyeon Kim, visiting senior fellow at the Korean Peninsula Future Forum. And, Duyeon, thank you for joining us, and glad we

can be connected here.

First I want to ask you about Donald Trump. You know, Moon Jae-in credits Trump with his huge contribution to these talks. Why does he praise him in

such a way?

DUYEON KIM, VISITING SENIOR FELLOW, KOREAN PENINSULA FUTURE FORUM: Thanks for having me back, Kristie. So, I think any good statesman, of coursed

would pay lip service to his or her closest allies.

I think what we are seeing there. Now, I don`t think President Trump`s threats and blusters have any impact in bringing the two Koreas together,

if Washington did have influence.

It may have been in the form of Washington`s willingness to postpone its joint military exercises with South Korea until after the Olympics. And

also, we have been hearing reports that sanctions have been having some effect.

[08:20:00] So, it could be a combination of those two.

LU STOUT: Got it. It`s not vindication for locked and loaded, and rocket man, all that. This is just South Korea expressing thanks for a key U.S.

ally?

KIM: Yes, I would say so. And also, you know, these talks -- I would agree with the president that these talks were a good first step. However, it`s a

small first step to a very, very long complex, complicated and very delicate road ahead.

There is no guarantee that the Olympics would actually lead to some major break through on the nuclear issue and bring the U.S. and North Korea

together for direct talks on the nuclear issue.

There is even no guarantee until the North shows up at the Olympic that they`ll even come to the Olympics, because it`s still the process of

prefatory process. There is still a lot to iron out, you know, at the Olympics.

The reason -- part of the reason why President Moon and the South is calling this the peace Olympics, I think we can imagine a scenario in which

the South might want to try to meet with the North Korean delegation.

So the high level officials were representing both delegates -- the senior officials that would be coming. But it`s also imaginable that the South may

want to broker a meeting between the U.S. and North Korean high level officials at the Olympics.

And so that might be one of the reason why, all eyes are on who President Trump sends. He mentioned his family members. And so it`s measurable the

North is also zeroing in on who the U.S. sends to the Olympics.

LU STOUT: Yes, and there are reports that Mike Pence might go to the games, reports that Ivanka Trump might go there as well. So these talks that

happened yesterday will lead to inter-Korean military talks, and perhaps, talks between, as you mentioned the United States and North Korea.

But you know ahead of more talks at the end of the day, as you said, North Korea still has its weapons program. Now, earlier today, Moon Jae-in, the

South Korean president -- he warned that Pyongyang would face steeper sanctions if it resume its weapons test. That sweat of sanctions, is that

strong enough to reign in to deter North Korea?

KIM: You know, that remains to be seen. I don`t know if that big enough threat. I will have to see. I think it`s a prudence that President Moon did

mention that.

He is continuing his pragmatic approach toward North Korea even though he fundamentally wants to engage, even more that he has been able to so far.

Now, these inter-Korean talks, as you mentioned, these really are -- it`s more of a round-about way of getting to nuclear issue, the fundamental

issue, and the elephants in the room basically.

Even during the inter-Korean talks, the nuclear issue came up and that was a point of tension between the two -- the two sides. And this round-about

way, you know it`s not uncommon. We have seen this before or during the in early to mid-2000s.

And it`s also very Korean to try to go about this in a different round if he can`t go about to head on to the fundamental core issue.

But again, you know, it really depends on the North first, what happens after the Olympics, how does North Korea act especially when U.S.-South

Korean joint military exercises resume.

And then also, President Trump, how will he react? How will he act? What will he tweet about next? And so that`s why it`s still very delicate.

And you know, you have heard voice skepticism before about the prospects of these inter-Korean talks leading to some major breakthrough and I`m hoping

for the best, of course.

But in spite of skepticism, it`s a choice between a situation in which we were in last year, dangerous situation that could have led to an

inadvertent war.

LU STOUT: Yes.

KIM: Or this round about diplomatic way of trying to get to the nuclear issue. And of course, the current path is most preferred.

And, you know, there is also part of diplomacy as trying, coping and testing, trying different options, trying old options because the same

options don`t always pan out the same way. They`re all those contention upon the circumstances and also geopolitics.

LU STOUT: Yes, getting to that next rung. More talks between key players, including talks between the U.S. and Pyongyang. Duyeon Kim, we will leave

it at that, but thank you so much for joining us once again, and take care.

The Libyan Navy says up to 100 people are missing and feared dead after several rubber boats carrying migrants went down the coast. Authorities

were able rescue 300 people clinging on to wreckage.

As you can see here, many are women and children. Officials say that they were taking to a naval base in Tripoli and then transferred into an anti-

illegal immigration authority. A U.S.-based company is aiming to do what is eluded so many to find the wreckage of Malaysia Airlines flight 370.

[08:20:00] The plane was headed from Kuala Lumpur to Beijing but it vanished in March of 2014, with 239 people on board.

Possible debris has been found across the Indian Ocean. Australia, China, and Malaysia had intensely look for the plane. Matt Rivers, tells us why

the new searchers think they can succeed.

MATT RIVERS, CNN CORRESPONDENT: Well, Kristie, the government-led search of three-plus years for this missing airplane ended about a year ago.

But now this private U.S.-based company that specializes in high resolution geophysical sea bed data, as they say, Ocean Infinity, will be picking up

where the government-led search left off.

The government search the 120,000 square kilometer area, identified at the time by investigators at the most likely area where the plane would end up.

But when that search was officially concluded, investigators said that the next most likely place would be a smaller patch nearby some 25,000 square

kilometers in area.

That according to Ocean Infinity is the area that they`re going to focus on in this lest search. They say that they can do things that the government

couldn`t, by using AUVs or Autonomous Underwater Vehicles that aren`t teetered to ships above.

And the company says that because of that, they have the ability to operate these missions that go deeper, collect higher quality data. And they say it

makes their technology ideal for this type of search.

The search is expected to last for 90 days. It`s going to start almost immediately because the ship that`s conducting the search is in the area

already.

They are going to take advantage of favorable weather conditions as they put it and they are going to try and find this plane. This is a no find, no

fee deal, meaning that if this company doesn`t find the plane, they`re not going to get paid.

That`s the deal they struck with the Malaysian government. But of course, while everyone wants to know what happened to this place, the most

interested parties would be the family members of those 230 plus people who are onboard that plane when it disappear.

We reached out to several of those family member who live here in Beijing earlier and general theme from those people was that, they are happy that

the search is continuing but they are not really expecting that much.

They say there has been a lack of transparency and the part of governments since the beginning and despite this latest development, they are not

expecting anything really different to emerge. Kristie.

LU STOUT: Matt Rivers, there. Thank you. Now Chinese authorities confirm that there has been an explosion on an oil tanker that has been burning up

the coast of Shanghai for days now.

Rescue boars searching for 31 missing sailors have been forced to pull back. The tanker collided with a firefighter freighter on Saturday and has

been on fire ever since.

Most of the sailors are Iranian and they were on board the tanker which is carrying around 1 million barrels of oil from Iran to South Korea. So far

no survivors have been found, one body has been recovered.

And now to France where legendary actress, Catherine Deneuve is denouncing the Me Too campaign that is taking on sexual harassment, Hollywood and

beyond. She is one of 100 French women who singed an open letter criticizing the social media movement.

The letter says rape is a crime but ads that insistent or clumsy flirting is nota offense. Now the letter says the Me Too campaign has gone too far.

Now coming up right here on the program, the U.S. is reportedly considering launching a limited strike against North Korea. But a move like risks

starting an all out war. Let`s go straight at the CNN military analyst, next.

Plus, a new gadget that detects a heart attack before it happenings and one that could help babies sleep better. We`re all on show at the computer and

electronic show. A live report from Vegas is next.

(COMMERCIAL BREAK)

[08:31:12] KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout live in Seoul, South Korea, welcome back. You're watching NEWS STREAM and these

are your world headlines. The South Korean President Moon Jae-in says he's open to a summit with the North under the right conditions. Held a (ph)

news conference earlier Wednesday in Seoul. Mr. Moon says the ultimate goal must be to reach the Korean Peninsula of all nuclear weapons.

Another legal setback for U.S. President Donald Trump, a federal judge has really (ph) blocked his administration's efforts to end DACA as the program

that gives legal protection to undocumented immigrants who were taken to the U.S. as children. The White House planned to wind down the Dreamer

program in March.

Myanmar prosecutors are seeking charges against two Reuters reporters under its Official Secrets Act. The journalists were arrested in December while

covering the Rohingya crisis in Rakhine state. According to Reuters, Myanmar's government says the two men were detained after illegally

acquiring information with the intent to share with porn media, the charges carrying a maximum sentence of 14 years.

Once again, this is a special edition of NEWS STREAM live in Seoul. Let's revisit our top story.

The tension between North and South maybe starting, but the Wall Street Journal is reporting the U.S. is considering whether it is possible to

launch a limited military strike against North Korea in response to a missile or nuclear test. Earlier, I spoke to CNN military analyst

Lieutenant Colonel Rick Francona about that possibility.

(BEGIN VIDEO CLIP)

LT. COL. RICK FRANCONA (RET.), CNN MILITARY ANALYST: This is walking a very fine line. You're trying to inflict enough damage to send a message

but not enough damage that would cause a nuclear reaction. Of course, I don't think any reaction from North Korea will be nuclear in any case

because that just leaves to certain annihilation.

But if we throw some sort of weaponry at North Korea, Kim Jong-un has to respond, politically and personally, he's going to respond. I think it

would be some sort of conventional action and he's got tremendous conventional capabilities that conflict a lot of damage, kill a lot of

people. So do we really want to get into this exchange of fire with North Korea when we don't know where it's going to end?

Our intelligence on North Korea is not that good. We -- you know, intelligence is two things, intentions and capabilities. We have pretty

good handle on capabilities but we sure don't know what his intentions might be.

STOUT: Coming out of these thoughts, we also heard North Korea and South Korea will engage in military talks. Do you see that from the U.S.

perspective as an opening for the U.S. an opportunity to deescalate tension?

FRANCONA: Yes, there's two sides, or two schools of thought on that. I'm on the side that, you know, any talking is good. And I think expanding the

talks into the military arena is a good thing. Now, we know what the North Koreans are going to want, they're going to want, you know, the cessation

of joint training and the military drills that happen in South Korea between the United States and also the United Nations.

And United States has always said in the past, we're not willing to give that up. You know, we have made a concession here by not holding them

until after the Olympics. And in the past, we even cancelled a series of exercises to get talks going on with the North Koreans. So, I think any

talking is good and if they want to talk military to military, that's fine. We have to exhaust every diplomatic approach possible because the last

thing we need is anybody on either side contemplating the use of a nuclear weapon.

(END VIDEO CLIP)

STOUT: So, any talking is good, even talking between two antagonists. That was Lieutenant Colonel Rick Francona speaking to me earlier.

Now, the massive Computer and Electronic Show or CES is in full swing in Las Vegas. It's a global gathering for consumer technology filled with

swirling and perhaps eyebrow-raising new gadgets. Now, CNN's Samuel Burke is there. He joins us now live.

Samuel, you got a chance to have a sit down with Jim Hackett, the new CEO of Ford, what did he tell you about the company and the future of driving?

[08:35:04] SAMUEL BURKE, CNN CORRESPONDENT: Kristie, if there's one thing that I've realized being at CES this year is that so many companies have a

smart car, a self-driving car and they're very promiscuous, I might call them, all these companies are creating partnerships so that they have

platforms, so that people will actually be using their cars in the future. I asked Jim Hackett about this in his very first television interview since

becoming CEO of Ford.

(BEGIN VIDEO CLIP)

BURKE: So you're talking about a business model. I see this car right behind you which is in a partnership with Domino's pizza. Are you

partnering with them because you're worried that people won't be buying cars, individuals and so it will be a Domino's Pizza Ford Car that goes

around 24 hours a day, so those are the type of partnerships you need to build to replace an average joe like me buying a car?

JIM HACKETT, CEO, FORD MOTOR COMPANY: Well, when we went to Domino's, Patrick Doyle has really done a tremendous job with that company. It's

really a tech company unto itself, not a pizza company. And we found this interesting fact. In the analog world, the pizza is in a vehicle being

driven by people. And we know how big that number is. They're able to monitor that. And we said, what if we use robotic capability? What could

we now bring to customers that we couldn't have before?

The opportunities are really extraordinary. So, Ford and Domino's have gone to the next stage of this, and they'll be making announcements in

other markets of big ideas that we have together. We have some cool insights. You know, we found out that people really would rather get their

pizza from the car rather than somebody hand it to them.

BURKE: Even people who live in high-rise buildings? They were building stairs (ph)?

HACKETT: Yes. They found they would rather come down and not have to put their shoes on, because they don't feel like, you know, that they're on, so

to speak, with somebody they don't know. The vehicle, they don't care about. They don't have to interact with it other than to say, give me my

pizza.

(END VIDEO CLIP)

BURKE: Kristie, so let's just make crystal clear what's happening here, these car companies believe that there are going to be less and less human

beings buying cars and instead, you might have a Domino's pizza car running 24 hours a day around the city, so that's why it's so important that these

companies become so promiscuous, as I say, of creating these partnerships with Lyft, with Uber, with Domino's, because those will be the platforms

that will be using the cars. More like, suites instead of individual car ownership and that's where they think they are going to get their clients,

their consumers in the future.

STOUT: Interesting, connected cars happening faster than we think and the future is not an individual self-driving cars but fleets of jarvalous (ph)

cars because of these, you know, company linkups that are happening like the one that you detailed there.

Samuel Burke reporting live from Vegas, thank you so much. We'll talk again soon. We have some more news stream coming up right after this.

(COMMERCIAL BREAK)

STOUT: Welcome back, you're watching NEWS STREAM. Now, heavy rain have triggered deadly mud slides in Southern California, killing at least 13

people, forcing thousands to flee. Our CNN's Chad Myers is at our world weather center, he's more in the story. And Chad, I mean, in California,

first overheat by the fires then the floods, now we have these mud slides, just how bad our conditions especially this one neighborhood of Santa

Barbara?

CHAD MYERS, CNN WEATHER CORRESPONDENT: They're pretty bad, I mean, still hundreds of people need to be rescued and that the people can't drive there

because the roads are completely covered with this debris flow, with this mud flow, you can it a mud slide, but really, what happened is the fire

created this.

[08:40:10] The fire burned out all the trees, the fire also made this layer under the trees that can't absorb water. It's like searing a stake. You

don't want the juice to come out of the stake. Well, if you sear the ground, the water, the rain can't absorb into it. I'll get to that in a

second.

But they had a lot of rain. Almost five inches of rain, somewhere around 150 millimeters of rainfall on top of this ground that doesn't have any

live vegetation because it burned about two months ago, so the numbers here from Ortega Hill, 150 millimeters of rain. To give you some perspective,

that's more rainfall than Los Angeles itself had in over 11 months last year. So, it really doesn't rain very much in Southern California. And

there are songs about that.

Here's the problem, the area right here. Here's Los Angeles proper, that didn't burned out. There's still buildings that are all good. But the

mountains here to the north and to the northwest of Los Angeles, the Malibu Hills here up in the Ventura County, this is what burned. And it burned

furiously, very hot and significantly in the mountain areas, people living here along the coast because it's the flatter area. You can clearly see

how the mountains go up from there. And that's what we have to deal with, the mountains.

So let's get to the mountains over here. This is what happened two months ago. Forest fires throughout this region burned the vegetation. It was

already dry because it had stopped raining. It rained over the winter from El Nino. Then all of a sudden, it stopped in the summer. And everything

dried out. Well, that intense heat just again, just like searing stake to keep the heat in, just like cauterizing a wound actually cauterizes the

ground.

It stops that organic material from absorbing anything. It turns it to ash. And then all of a sudden, here you go. You see this ash get wet.

And the ash rolls down hill. And that's the issue where we're going right now with this, is that this can happen now. This -- we'd call it a

hydrophobic layer, a water repellant waxy-like layer that can lasts for a long time, even up to a year. So every time we get rains this heavy,

Kristie, we could see more in this way of flash flooding in other parts of the area.

I mean, there were hundreds of thousands of hectares that got burned. So, we're not just talking about the one town that got hit this time. There

are many towns that are still with bullseyes on their back. Kristie.

STOUT: Oh, wow. Very sad to hear, there was cause effect from those wildfires to these deadly mud slides. And it could happen in other places

that only want to see those (ph). Terrible to hear that tragedy could be repeated. Chad Myers, thank you so much for your reporting there.

MYERS: You're welcome.

STOUT: That is NEWS STREAM. I'm Kristie Lu Stout. But please don't go anywhere. We got World Sport with Amanda Davies, up next.

(COMMERCIAL BREAK)

[08:45:01] AMANDA DAVIES, CNN SPORTS ANCHOR: Hi. Thanks for joining us. Welcome along the World Sport live from London with me, Amanda Davies.

Olympics sport is informed (ph) at the right time once every four years.

And the USA's Mikaela Shiffrin certainly seems to be doing that ahead of next month's Winter Olympics in Pyeongchang in South Korea. So much so,

the one I read an article about her latest ski racing success, I presume it was talking about the previous one because she is winning just so, so often

at the moment.

She is rocking up the victories and the records quicker than Asme Immortals (ph) can keep up. And on Tuesday, the 22-year-old storms were incredible,

eight win in nine World Cup, right, just becoming the first alpine skier to win five straight World Cup races in 20 years. She has to come from behind

to do it in the slalom of the trailing after the first run, but left nothing in the tank for her second in Austria (ph), under the lights

topping a time (ph) of one minute 50.86 seconds to once, again, extend her lead at the top of the overall standing after her first 40 first World Cup

triumph.

Well, not surprisingly the winning Olympic and three-time world slalom champion is the big gold medal favorite heading into Pyeongchang. And as

host of our skiing show world, (INAUDIBLE) Christina Macfarlane has been lucky enough to follow Shiffrin very closely over the last few years and to

get to know her pretty well.

Great to see you, Chrissy (ph). How good is she?

CHRISTINA MACFARLANE, CNN CORRESPONDENT: In a word -- a couple of words, scarily good, Amanda. You know, we said just then, she's one five straight

in a row but she has been winning these races by enormous margins, by over a second in some circumstances, which is just unheard of in alpine skiing.

But, you know, she has been on the rise for sometime now and has been promising greatness and has a limit greatness.

Let's just have a look at some -- her career highlights to date. She's, of course, 22 years of age. She burst storm (ph) to the skiing scene of the

World Cup at 16 years of age. And at 18, she then went on to become the youngest slalom champion in Olympic history, winning gold in Sochi. And

after dominating the tech events, she's now raising speed as well. Remember, she crooks up almost a win a week. Sometimes, two wins a week to

win 41 World Cup races.

And this means, of course, at 23 years of age, she is sick on the list of all-time medal -- World Cup race one to say (ph). You can see at 22 years

of age, Lindsey Vonn at the top, of course, having won her latest in December in Val d'Isere. Now, as the same age, as Mikaela Shiffrin, 22

years of age, Lindsey Vonn just had seven World Cup wins. So, it shows you the trajectory that she's on and just how exceptional she is. But don't

just take my word from it, let's hear from one of the all-time greats of U.S. skiing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And Mikaela is a favorite of mine all the time. I think she's maybe the best skier (ph) I've ever seen, male or female.

She's, you know, so balance, dynamic, intense and focus. So, for me, I think she's got a chance in any events she sees in. I would say, it's

likely she wins two golds. I would say, outside shot of five medals and I think probably, at her best, maybe three or four of them are gold.

(END VIDEO CLIP)

MACFARLANE: Six Olympic medals in five different disciplines when Bode Miller speaks, he definitely listens to what you have to say.

DAVIES: Yes, he knows what he's talking about. And what these guys do is not easy. They do it week in week out. I know you actually how to go and

you go tape (ph) just how to get in. What is it that Mikaela Shiffrin does that her rivals don't do? How does she make us out (ph) so good?

MACFARLANE: Well, from watching over the last six years since she was a teenager, I think there are two things that stand out. First of all, it's

her style of skiing. I want to show you some video here of her racing in the slalom, and what she does that no one else does is stay so close to the

gates coming down the hill here. No else is able to actually maintain that especially on that full line which is the fastest slide coming down the

hill. She's cultivated that over years and years, endless hours of practice.

The second thing she has, which is exceptional, is her team. Like Bode Miller and Lindsey Vonn who've gone before her, the two U.S. greats, she

has also gotten along with her team, set proof (ph) from the rest of the U.S. ski team that's been -- has meant (ph) she's been able to keep her

focus, her momentum, not get distracted from anything else going on around her. Her mother travels with her to every single race. And this has

really meant that she's been able to stay in the mindset that she had coming into this four or five years ago, which has kept her skiing really

like a junior racer as she's hoping when I speak to her in December.

(BEGIN VIDEO CLIP)

MIKAELA SHIFFRIN, REIGNING OLYMPIC AND WORLD SLALOM CHAMPION: I'm going into these games with a similar mindset that I had in Sochi, which was, I

have the capability of wining a medal, if not, multiple medals and my best shot at doing that is just stick to -- kind of stick to my guns and stay on

track, keep my head down and act like I'm casing. And that's when I ski my best is when I sort of acts like I'm chasingthe world instead of the one

who's being chased.

(END VIDEO CLIP)

DAVIES: Gladly (ph), Chrissy, is the rest of the world chasing her (INAUDIBLE). So it is worth the others turning up, was anyone else

(INAUDIBLE)?

[08:50:03] MACFARLANE: Well, they would probably say not. You remember, she won one gold in Sochi when you were there, Armanda. Well, she said at

the time that she hopes to win five in Pyeongchang. And we all kind of laughed at her but now, that it's here around the corner, that is looking

like a very likely possibility four or five golds with her skiing now five disciplines in alpine racing. We'll have to wait and see what happens.

DAVIES: It's not often as you said, we lead our world sport shows on skiing but you suspect we might be leading a few more --

MACFARLANE: Absolutely.

DAVIES: -- on Shiffrin over the next few weeks. Chrissy, thanks very much indeed.

Tuesday is a big development, of course, ahead of Pyeongchang 2018, was the news that North Korea have agreed to fend the team on delegation to take

part in the games. It's a significant step given the relationship between the neighboring countries which is still technically at war.

The International Olympic Committee welcomed the development. They've said they'll continue to discuss the proposals and details this week, there's

actually a meeting taking place in Los An (ph) today. But, how was the news been received in South Korea? We went to the streets to find out.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think (INAUDIBLE) this is really a time to unite everyone. I think it should really be free of all of these politics. And

I just hope that at least during the Olympic period, it will be more of a celebration, and things like that will come down of it.

UNIDENTIFIED MALE: Just simply having them, their presence within the Olympics would show the world that this Olympic itself will be very

meaningful. I think it also showed, you know, the world that North Korea can put the politics aside, to put, you know, sports and arts before

politics.

(END VIDEO CLIP)

DAVIES: Well, cautious optimism was the buzz phrase that was used to over that agreement between North and South Korea on Tuesday. And you think

that might be the view of the Australian Open organizers too after a space of injury withdrawals. Is there finally some good news for them with a big

name comeback. Find out after the break.

(COMMERCIAL BREAK)

DAVIES: Well, we return with some football news in the unbeaten Premier League leaders, Manchester City, were given a bit of a scare in the

semifinal of the league cup on Tuesday night that went gold down to Bristol City besides (ph) who knocked Manchester and eyed (ph) out in the course of

finals. Bristol City play in the championship, the second-tier of English football, and Wanton (ph) is the lead from the penalty spot a minute before

half time. Pep Guardiola aside have shown time and time again this season how hard they are to beat, and Kevin De Bruyne equalized midway through the

second half, another great display from him, it was.

As so often this season, Manchester City found the last-minute gold when they needed it, Sergio Aguero doing a damage to steal his side, 33rd game

(ph) unbeaten in domestic football. And it gives them a two on lead heading into this second leg. Ultimately (ph), Chelsea, the other

semifinal would take place later on Wednesday.

Now, it's been a long wait for former world number one Novak Djokovic, but he has made a winning return to tennis and says, he does intend to take

part in the Australian Open for now, at least.

[08:55:10] The 12-time Grand Slam champion produced a straight sets win in his first match for six months after an elbow injury. Afterwards, he said

he was pleased with how he went and that he is planning for the Grand Slam of the year which gets underway in Melbourne next week.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There was a doubt, especially after I pulled out from the first week of the year. We didn't know, I mean, I personally didn't

know what's going to happen. We did some treatments and obviously gave -- you know, gave it a lot of thoughts and, you know, luckily for me, I'm

here. And so I'm hoping that in the next four, five days, everything will go well and I'll be ready for the Open.

(END VIDEO CLIP)

DAVIES: He hopes to be ready for it. We will definitely be ready for it here on World Sport, but that's it for me and the team for this edition of

the program. Thanks for watching. I'm Amanda Davies in London. "CNNMONEY" with Maggie Lake from New York is next. Goodbye.

(COMMERCIAL BREAK)

END