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HALA GORANI TONIGHT

Saudi Arabia Launches Investigation into Airstrike That Kills Children; Russia Sounds Warning to United States Over New Sanctions; Turkish Lira Hits All-Time Low Against U.S. Dollar; Trump Promises to Double Tariffs on Turkey; CNN Rides in Navy Plane to Survey Chinese Militarization of South China Sea; Holy Fire in California Scorches More than 18,000 Acres; CNN to Premier New Documentary on Antarctica; Mueller Wants Information from Roger Stone Associates; Small Town Blames Trump for Giving Neo-Nazi A Voce; T.V. Host Laments Effects of Demographic Changes in America; NFL Players Take Knee Raise Fists In Preseason Games; Brexit Could Affect British Beer Prices. Aired 3-4p ET

Aired August 10, 2018 - 15:00   ET

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


[15:00:00] CLARISSA WARD, CNN INTERNATIONAL HOST: Hello, everyone, live from CNN in London, I'm Clarissa Ward in for Hala Gorani.

Tonight, Saudi Arabia has launched an investigation into a deadly airstrike that killed at least 50 people most of them children. Also, ahead, fires

destroyed entire neighborhoods in California. And forced thousands to evacuate. We are live on the ground.

And hate on public display in a U.S. town and it's not an isolated incident. We'll take a look at America's increasingly visible white

nationalist movement.

We begin with breaking news. Following pressure from the international community, Saudi Arabia says it is opening an investigation into an air

strike that hit a school bus in Yemen. This comes to us from Saudi state media. We must give you a warning now, we are going to be showing you

graphic images of the aftermath of that attack. They depict children maimed, burned and mutilated. And this is just what we're able to show

you. The rest is just too graphic to air.

CNN is unable to independently verify the videos which were released by a rebel back TV station. This child is reportedly one of the 77 people

wounded in the strike, 50 people died, many of them children under the age of 10.

Nima Elbagir is here with us again, tonight on this heart-breaking story, once again, you have been going through this hideous footage, tell us more

about what you have seen.

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: We have been sifting through the images coming out of Yemen today, and one of the images that we

were able to get hold of shows a father on the phone trying to get any kind of information about his missing son. Take a look at this.

You can just hear it in his voice, can't you, the desperation and kind of the final vestiges of hope. Another video shows a very different side to

what many parents were going through. This is the moment when one father found the body of his missing child. Here it is. [crying]

And that is as much as we could show because the father then went on to lift up his son's mutilated body and begin to kiss him. And you just can't

even imagine how in that moment anyone, any parent would feel, and this having happened to dozens of families, dozens of parents. Even as they

were attempting to grieve, as they were attempting to bury their dead, the air strikes continued in just one district in the capital of Yemen. We

were told there were 21 strikes overnight through into the early hours of this morning.

I don't think I'll be able to get the sound of that father wailing over his dead son out of my mind for a long time. But help us understand, what went

on here exactly? The Saudis have said they are launching an investigation? What does that mean? They have done this before, they have looked into

previous incidents where civilians have been killed. Will something come out of this?

Our reporting and the reporting of human rights watch has yet to unearth any instance in which the investigation that is investigated has actually

followed through with regard to reparations, with regard to sanctions. With any of these offices that were responsible with the mechanism sound to

be responsible. This is the coalition's own mechanism. There's no independence here.

WARD: An incredibly distressing story, thank you so much.

Donald Trump's head spinning foreign policy has at times delighted, dazed and confused friend and foe alike. But his latest news has left two

countries livid. In Russia, Prime Minister Dmitry Medvedev says recent sanctions could be compared to economic warfare.

[15:05:00] And there is similar language coming out of Turkey. The economy there was already on shaky ground. Then President Trump decided to weigh

in, doubling the tariffs on steel an aluminum. That sent the Turkish lira into a tailspin against the dollar and Pres. Erdogan was less than

pleased.

Let's get to Elise Labott, who joins me from Washington, Elise, you heard those words from the Russian prime minister. He's certainly not mincing

those words, what else did he say?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Basically Clarissa, that the U.S. is trying to make these economic penalties to make Russia less

important on the world stage. This has been an issue, obviously not President Trump and his rhetoric, but a lot of other U.S. officials have

been concerned about Russian dominance on the world stage, but then went on to threaten that President Putin has spoken with his own national security

council and they would be taking action against the U.S. to counter this.

So, despite the kind of warm feelings and rhetoric between President Trump and President Putin, certainly the governments of Washington and Moscow are

dueling this out, particularly after these U.S. sanctions for the Russian use, they say, they have now determined that Russia used that Novichok

nerve agent against Sergei Skripal and his daughter. Two other people were also affected by that. Very important sanctions to start.

Whether they are sensitive dual use goods, some kind of exports that could total about a billion dollars in future exports, but if Russia doesn't take

steps to correct this and allow on-site inspections, there could be more drastic measures against the Russian economy, which the ruble is already

following. This could be very dangerous. So clearly a move by the Russians to head that off.

WARD: Right, absolutely. And the other piece in all of this, of course, is Turkey. I know you've been talking to some people at the State

Department, how are they responding to this? Because traditionally, Turkey is a strong ally of the U.S., how are they responding?

LABOTT: Well, I mean the presumption, right, is this is over pastor Andrew Brunson and there was this deal between President Trump, President Erdogan

for the release of some Turkish citizens from the U.S. and Israel in exchange for Brunson to come home.

Brunson did not come home, the judiciary put him on house arrest and last week President Trump imposed sanctions against the justice minister, the

interior minister until Brunson comes home. Now they are upping the ante. This real bold move, you see the lira in free fall. And normally you don't

see, Clarissa, the U.S. government sacrifice the larger relationship with one important ally over one American citizen.

I think a couple of things are going on here, not only is Andrew Brunson a Christian pastor, evangelical is very important to President Trump's base.

But I think you don't have a lot of sympathy for Turkey right now, because of his various moves since the attempted coup on President Erdogan, you

have moves that seem more authoritarian in nature, you have three foreign service nationals from the embassy that are in jail. And right now, the

State Department, Turkey experts are saying listen, the Turks know what they need to do, send our people home.

WARD: Elise Labott in Washington, thank you.

Let's take a closer look at that economic turmoil in Turkey. John Defterios is back with us tonight on the set, thank you so much. What has

been the effect on Turkey's economy with this?

JOHN DEFTERIOS, CNNMONEY EMERGING MARKETS EDITOR: I think the lira is the best indication of a lack of economic confidence to be very candid about

policy that is taking place in Turkey. But the lira was already down to a record low starting the week on Monday and it just got worse on Friday, and

President Trump can be accused of kicking President Erdogan and the lira down when they were already suffering here.

This drop of 70 percent in a single day that was the low for the day. Takes it to an all-time low, entirely, as we've never seen such a dramatic

drop. It's down 40 percent since the start of the year. That is a currency crisis and this is leading to inflation of nearly 16 percent and

President Erdogan to add here is constantly complaining about an interest rate lobby that New York, London, Hong Kong, Japan, are all working against

Turkey.

So, he made this nationalist call to the Turkish people, saying, let's show them, sell dollars to support the currency. He did it at a rally at the

Black Sea, Clarissa, let's take a listen at what he had to say.

(BEGIN VIDEO CLIP)

[15:10:00] RECEP TAYYIP ERDOGAN, PRESIDENT OF TURKEY (through translator): Dollar and stuff will not stop us from building roads, do not worry. But I

am saying it again, if you have dollars, euros or gold under your pillow, exchange it for Turkish lira at our banks. This is a national struggle,

this will be answered by our people against those who wage economic war on us.

(END VIDEO CLIP)

DEFTERIOS: Isn't it interesting? He used the words economic war against us --

WARD: Same as the Russian prime minister.

DEFTERIOS: And he had a phone call with Vladimir Putin when he was at the Black Sea, they already have deep diplomatic ties, but they want to take a

deeper and try to figure out a strategy to go against what President Trump is doing.

WARD: All of this is about an American pastor who Erdogan believes was involved in this attempted coup. The Americans say he wasn't. This is,

you know, the relationship between the U.S. and Turkey has traditionally been very warm, very close, especially dealing with regional conflicts like

Syria. All of this is about a pastor?

DEFTERIOS: It's about a pastor, but it's much more than that. I think we have a real challenge on our hands. You have President Trump and President

Erdogan, pretty strong personalities. And President Erdogan also has some other challenges.

They thought as Elise was talking about they had a deal with the United States. They didn't release Brunson. There is another twist to this.

There is a Turkish bank and a Turkish banker who has been arrested in the United States for abetting the Iranians to try to work around U.S.

sanctions, they didn't like that. President Erdogan has been working on trying to get the cleric, Fethullah Gulen, extradited back to Turkey.

Trump's not hearing any of that because of his relationship with the State Department and the CIA. But something bigger is at play here. It's the

concentration of power by President Erdogan, he put his son-in-law in as the minister of treasury and the economy. He is not an economist and he

doesn't have an economic background. He has an MBA. But it is risky if the market don't like it right now. And the biggest indicator of that is

this record fall of the lira, he keeps on blaming everybody else except for himself. It's his monetary policy, his overspending has gotten him into

trouble.

WARD: All right, John Defterios, thank you so much for helping us break it down.

Let's get some more analysis now with Jeffrey Sachs, an economist and a director of the Center for Sustainable Development at Columbia University,

he joins me now from New York.

Thank you so much for being on the program. We heard the Iranian foreign minister make a sort of remark that President Trump is addicted to

sanctions and now it seems possibly tariffs as well. But give us a sense of, what do you think the president's strategy is here? And is it paying

off?

JEFFREY SACHS, DIRECTOR, CENTER FOR SUSTAINABLE DEVELOPMENT, COLUMBIA UNIVERSITY: I think the president is an impetuous, unstable person. Who

is making impetuous and fool hardy policies. He's at war with everybody. By the way, including Canada, including our allies, with China, Russia,

Iran, and more than a dozen other countries. He's sanctions happy. This is not how the world economy can conceivably work. It was interesting that

John said that Erdogan has given power to his son-in-law, well, how about in the United States also? About the president and his son-in-law and the

personalization of his economic policy is absolutely reckless, and unprecedented in modern times actually.

WARD: You'll hear President Trump and his supporters say come on, the economy is doing better than ever, jobs are up. Unemployment is down.

Things are going gangbusters. How do you respond to that? What long-term effects can these tariffs have on the U.S. economy?

SACHS: Well, they will have deleterious effects certainly and they will diminish the role of the United States. Because all over the world,

countries are taking actions to use other currencies to go around the U.S. banking system which is now the dominant system in the world. But there

are alternatives, of course, and you cannot run a sophisticated economy, the United States or any other through the kind of impetuous day to day

actions of this president. I'm a little unimpressed looking at the indicators of a month or two months or even a year, yes, we have business

cycles, but we're breaking the underlying structure that allows the world economy to function properly. And we have a one-man show right now, that

is unbelievable for the United States. This is not the rule of law, this is the morning mood of the one unstable person. It's very dangerous.

[15:15:00] WARD: And it's interesting to see the response of different leaders in the business community, our own Richard Quest yesterday spoke to

the CEO of Boeing, of course, the United States' biggest exporter. I want you to just take a listen to what he told Richard about his view on these

tariffs.

(BEGIN VIDEO CLIP)

DENNIS MUILENBURG, CEO, BOEING: We do have some challenges around tariffs and trade, we do have a concern there, but the fact is we have a voice at

the table. We see the administration leaning forward to support us as a business while we deal with the realities of the trade situation.

RICHARD QUEST, CNN HOST: Your response? I mean it's pretty diplomatic.

MUILENBURG: Look, our CEOS are terrified to speak publicly what they tell me privately. So, they don't want to get on the bad side of a Twitter

president. They know how impetuous this man is. But I speak to a lot of business leaders who are not cowards, but extremely worried. Of course,

they don't want to stick their necks out right now. But they have never seen anything like this. So, what they say on the record and what they say

off the record is quite different.

(END VIDEO CLIP)

WARD: All right, Jeffrey Sachs, a sobering analysis. Thank you for joining us.

Now to one of the most hotly contested regions on the planet, the South China Sea, CNN was able to get an exclusive look at the Chinese

government's rapidly expanding militarization of the islands from the skies above. Ivan Watson reports.

(BEGIN VIDEOTAPE)

IVAN WATSON: This is a U.S. Navy reconnaissance plane and CNN is getting very rare access to come on board as it conducts a mission flying into the

South China Sea to get a look at these very controversial man-made islands that China has constructed and is fortifying in contested waters, claimed

by many other countries. We're now flying full speed into the South China Sea. And the U.S. Navy has really provided us remarkable access aboard

this reconnaissance plane.

And if you want a sampling of some of its capabilities here, petty officer Nagawa has proved, he has maps here just the incredible amounts of ships on

the surface of the water in the surrounding area, and not long ago he was actually able to film with the plane's cameras, two Chinese warships that

were a distance of some 40 miles away.

LIEUT. LAUREN CALLAN, NAVY: Again, it's to continue presence in the south China sea, that we're monitoring international air space and maintaining

the economic exclusion zones that every country should be able to enjoy.

WATSON: You're also scrutinizing these man-made islands, what are you on the lookout for?

CALLAN: We're really just trying to observe the change that's occurred in the last few years, observing any new buildings that might come up, trying

to see if there's any militarization that could be occurring.

WATSON: Powerful camera on board this plane gives us a really good look at China's island building project. And just the extent of the infrastructure

on board what was once just a coral reef in the middle of the South China Sea. Now it's got airstrips, it's got airplane hangars, radar towers, four

and five story buildings, China making it clear it's not going anywhere any time soon and completely ignoring the repeated claims of other countries

like Vietnam and the Philippines.

Our plane has been warned several times by the Chinese military to stay away from these man-made islands. And the Navy crew has responded saying

that we have every right to be here. We are flying in international air space. Ivan Watson, CNN, aboard a U.S. Navy plane over the South China

Sea.

(END VIDEOTAPE)

[15:20:00] WARD: Still to come tonight, breathtaking new images from California give us an insight into the threat so many homes there are

facing. Stay with us for a live report.

(COMMERCIAL BREAK)

WARD: U.K.-based Ryanair, an Irish low-cost airline, is facing tens of thousands of stranded passengers. The pilots of Ryanair went on strike in

Germany on Friday were the airline union's headquarters is based in Frankfurt. They were joined by their colleagues in Ireland, Belgium and

Sweden. The union says they're on strike because of unacceptable working conditions. In total about 1,500 flights have been canceled.

We cannot get ahead of the fire, words from authorities in California where wildfires are now burning with abandon. Despite the best efforts of

emergency services, only 5 percent of the Holy Fire has been contained, more than 21,000 people have been displaced and horrifying new images are

showing us exactly why.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I don't want to let go of my house.

UNIDENTIFIED FEMALE: Oh, my god. Oh, my god.

(END VIDEO CLIP)

WARD: The Holy Fire is one of more than a dozen raging across California. And new information is emerging about the man accused of starting it. Nick

Watt is in Lake Elsinore with more. Nick Watt, what are we learning about this man?

NICK WATT, CNN CORRESPONDENT: Well, first of all, let's just get to the fire very, very briefly. You mentioned that authorities say they can't

really get ahead of the fire, and here's how. We have been watching this hillside all morning, there were multiple drops of retardant and then

another large plume began over there. So, this fire is very, very difficult. Many say that global warming is contributing to this, and yes,

there's a lot of dry brush that help keep these fires going.

But authorities say this fire was started deliberately. They have a man in custody and he just appeared in court, and when the judge was reading out

the various charms against him, he said, it's all a lie. He has the million dollars to post bail, it's unclear if he actually does enter a

plea, so he is due back in court August 17. This 51-year-old man accused of starting this fire.

WARD: You actually managed to speak to one of his neighbors, Nick?

WATT: We did, one of my CNN colleagues spoke to one of his neighbors who's a volunteer fire chief. He says he had a run in with this guy a couple of

weeks ago, he says he's been warning authorities about Forest Clark for years. Take a listen.

(BEGIN VIDEO CLIP)

MIKE MILLIGAN, CHIEF, HOLY JIM VOLUNTEER FIRE DEPARTMENT: I said that you have to take care of this, or he's either going to burn something or kill

somebody. And that was three years ago. He needs to be dealt with, he needs to be in jail for the rest of his life. He truly does.

(END VIDEO CLIP)

WATT: Now as for the fire itself, earlier this morning, it was very calm, no wind as it often is here, around now, around lunch time, the wind is

beginning to pick up, and that might be why we're starting to see this fire spread, the fear is it's going to spread further south as winds get

stronger and stronger. We saw that yesterday, we saw flames brought to within feet of the backs of homes in the afternoon. And these firefighters

are fighting tooth and nail to keep this fire from entering this town of about 65,000 people.

WARD: Nick Watt, thank you very much.

There's more extreme weather in Europe after weeks of unusually hot temperatures. Violent storms have hit the continent. You are looking at

city streets that were turned into rivers. A man in his 70s is missing, and 1600 people have been evacuated. Hundreds of firefighters and

paramilitary officers are involved in the rescue efforts.

Though it might feel like the south pole is about as far from anything or anyone as you can get, there are increasing signs of human interference and

the very future of our planet could depend on protecting it. Together with CNN photographer Brice Laine, our correspondent, Arwa Damon, embarked on an

epic month-long journey to the ends of the earth. Here's a preview of their documentary "Expedition Antarctic" which premiers here on CNN on

Saturday.

(BEGIN VIDEO CLIP)

ARWA DAMON, CNN CORRESPONDENT: It's so beautiful and quiet. You almost don't even want to speak above a whisper. There's two whales right there.

This is absolutely unbelievable. See them? There are mystical shades of gray, glistening whites, the surroundings appear pristine and the wildlife

is adorable. Here we are, it's our first time to be off the ship and out on the water. And there's penguins all around us.

The distance is five meters, minimum. If the animals show signs of being disturbed, go slowly back the way you came.

Whoa, whoa, whoa.

It's so weird to be on land again. We're in an area called Yankee Harbor. And obviously as you can tell, when the fog comes in here, it comes in

really hard. And fast. But this is an absolutely incredible spot to be in.

(END VIDEO CLIP)

WARD: Still to come tonight, what could investigators in the U.S.-Russia probe hope to learn from a woman known as the Manhattan Madam? We'll have

a live report on her appearance before a federal grand jury coming up.

(COMMERCIAL BREAK)

[15:30:23] WARD: Big developments in the Russia investigation often happen on Fridays and today is no exception. Special counsel Robert Mueller's

team is working on multiple fronts to get information from people close to Donald Trump's longtime advisor, Roger Stone.

The woman known as the Manhattan Madam is testifying today before a federal grand jury. Kristin Davis was interviewed by Mueller's team just last

week. Davis once ran a high-end prostitution ring. She has a close personal relationship with Stone and has worked for him in the past.

The Mueller team also issued a subpoena today to force another Roger Stone associate to testify. The attorney for radio show host, Randy Credico,

says he intends to comply and will appear before a grand jury September 7th. Roger Stone claimed Credico was his back channel to WikiLeaks

founder, Julian Assange during the 2016 campaign.

And yet another Stone associates skipped out of a grand jury appearance today, Andrew Miller defied a subpoena and plans to appeal his order to

testify.

A lot to get to here, so let's bring in CNN's Jessica Schneider. And Jessica, first start out, give us a sense, the Manhattan Madam, what

exactly might she know? What information might she be able to provide with regards to the Russia investigation?

JESSICA SCHNEIDER, CNN CORRESPONDENT: Of course, that's the big question here. SO like you said, a lot swirling around Roger Stone here. The

Manhattan Madam, Kristin Davis, she did run that high-end prostitution ring. That's actually part of the story that goes into the downfall of a

New York governor, Eliot Spitzer.

But that aside, she's been a longtime associate of Roger Stone, they're very close. Kristin Davis, yes, the Manhattan Madam, she also ran for

governor in New York State. Roger Stone was one of the advisors on her campaign, needless to say she did not go on to win that campaign. But,

yes, she is very intimately involved on a professional level with Roger Stone.

So all of this is swirling as it becomes quite clear that special counsel Robert Mueller's investigators are really keying in on Roger Stone. So it

seems like they're looking for anyone within the orbit of Roger Stone to get in front of a grand jury to testify, to perhaps say what they know

about any contact Roger Stone might have had with Julian Assange, founder of WikiLeaks as well as any contact he might have had with Guccifer 2.0.

So who knows what exactly Kristin Davis knows? But it seems like the special counsel is casting a very wide net here looking to get anybody in

that grand jury who might know anything of significance.

WARD: And you mentioned Julian Assange, this is happening as the Senate intelligence community is asking Assange himself for an interview. How

important is WikiLeaks to this investigation?

SCHNEIDER: Yes. So of course, WikiLeaks, we know, is the one that disseminated a lot of those e-mails that were hacked by Russians from the

Hillary Clinton campaign, as well as the DNC and released throughout the election itself.

So a lot of those actions, they've really been at the heart of several investigations both on Capitol Hill or Congress, as well as the special

counsel.

So the investigators, they really want to get to the bottom of it all. They want to know -- of course, we know that Russia hacked and we know that

they were involved in the social media campaign during the election.

But the big question, the outstanding question that we've been in for more than a year now of this investigation is what kind of interplay did

WikiLeaks have with the Trump campaign? How is Roger Stone involved in all this? So, yes, that request to WikiLeaks, it went out from the Senate

intelligence committee.

WikiLeaks did issue a tweet in response saying, perhaps we'll comply here. But that still remains to be seen, no definitive date yet and I'm sure

there'll be a lot of negotiations behind the scene, whether or not Julian Assange actually comes because obviously that brings with it a lot of

pitfalls potentially for him as well. Clarissa.

WARD: Absolutely. All right. Jessica Schneider, thank you for bringing us up to speed.

White supremacy in the U.S. is not limited to the confines of the Internet. It's a movement that is enjoying increased political visibility in various

areas across the nation.

Hundreds of followers are planning to gather in the nation's capital on Sunday, marking the anniversary of the violent protests in Charlottesville,

Virginia, where Heather Heyer, a counter protester was killed one year ago today. When a suspected Neo-Nazi sympathizer rammed his car into a crowd.

An act that the president of the United States did not initially condemn, choosing instead to blame both sides and while last year's rally sparked a

national conversation on racism.

[15:35:03] The mayor of Charlottesville, the town's first black woman to hold the position says there is much more work to be done.

(BEGIN VIDEO CLIP)

NIKUYAH WALKER, MAYOR OF CHARLOTTESVILLE: We're having a tough conversation but we're still debating about whether we should have them and

what way we should have them. There's a call from a lot of people. We have a very wealthy community here, our area median income is $89,600.

It's one of the wealthiest cities in the country. There is a lot of old wealth here and at the same time there are people who are trying to raise

families under -- less than $10,000.

So for some people the normal is OK, going back to the way things were, they had a very comfortable life and I think people are still tugging with

whether they want -- tugging with whether they want to return -- whether they want to return to that or have authentic conversations. And there are

some people who don't want to have the conversations. Or don't know how to have the conversations.

(END VIDEO CLIP)

WARD: And among those people struggling with these tough conversations, residents of a small town in the U.S. state of Pennsylvania were Neo-Nazis

are putting down roots and openly peddling their ideology of hatred. Our Sara Sidner reports.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT (voice-over): In the calm of this rural northern Pennsylvania town, a sign that hate lives here.

Are you a neo-Nazi?

DANIEL BURNSIDE, ULYSSES RESIDENT: Do I embrace it? I don't try to push it away.

SIDNER: Well, you're wearing a swastika on your shirt.

BURNSIDE: Exactly.

SIDNER: And you've got swastika flags.

Why the flags? Why the shirt? Why these hateful symbols in this town?

BURNSIDE: I don't think they're hateful. I think it's an ideology that has been completely misinterpreted since the Third Reich.

SIDNER: OK, now I've got to stop you.

BURNSIDE: Like I'm a Holocaust denier?

(LAUGHTER)

SIDNER: Misinterpreted? Misinterpreted? Six million Jews were killed.

BURNSIDE: No, no, you'll never sell me on that.

SIDNER: There's -- I'm not trying to sell you.

BURNSIDE: Yes.

SIDNER: It is reality. It's history. It cannot be denied.

SIDNER: Daniel Burnside is a lightning rod of discord in Ulysses, Pennsylvania, population, 690. With the help of the Internet, his message

has spread far and wide, giving his town attention it does not want.

BURNSIDE: Rural America spoke up when they elected Trump, rural America.

SIDNER: And by rural America, he means white America.

BURNSIDE: We're staring down the barrel of a gun here, white America. There are still 193 million white Americans. Yes, the vast majority of

them are in their 60s and 70s, will be in the ground in the next 20 years. And, therefore, we have the possibility of becoming a minority in our own

country, a possibility of becoming a minority in our own country.

SIDNER: It sounds to me like you're afraid of being me.

And being me --

BURNSIDE: This is my country.

SIDNER: -- is great. This is also my country.

BURNSIDE: You guys didn't win the culture war.

SIDNER: He invited us on his property to talk.

But when he doesn't like our conversation, he explodes.

BURNSIDE: Get the (BLEEP) out of here, now.

SIDNER: We do.

Just down the street, we're met by a dozen residents who say Burnside does not speak for this town.

SIDNER: There are families in this county that blame politics for people like him sort of being able to come out and be very loud.

Is that fair?

IVAN LEHMAN, ULYSSES RESIDENT: Our president we have got right now hasn't helped the situation a whole lot. He's got a lot of the same beliefs. At

least he won't speak against them, OK? This guy feeds off that stuff, so.

SIDNER: Among the crowd, many with grandfathers or fathers who fought the Nazis in World War II.

CARM BARKER, ULYSSES RESIDENT: We're good people. And he's stepping on us. He's stepping on all us. We are all one -- we're all one tribe. And

who does he think he his?

SIDNER: Teacher Debbie Hamilton says she just returned from touring concentration camps in Poland.

DEBBIE HAMILTON, ULYSSES RESIDENT: One of the things that we spent a lot of time talking about was passive resistance versus active resistance.

SIDNER: So far, they've chosen passive resistance with Burnside.

On the other side of Potter County, Joe and Seshena Leschner are convinced passive resistance is the wrong choice.

JOE LESCHNER, FORMER POTTER COUNTY RESIDENT: I'm not saying you should go to their houses with pitchforks and guns. I'm saying, hold a peaceful

protest against them.

UNIDENTIFIED MALE: Traditionalist American Knights of the Ku Klux Klan Neighborhood Watch.

SIDNER: After seeing KKK flyers appearing in their neighborhood and Burnside's decorations in their county, Joe did protest, only to receive a

threat by one of the supremacists he stood against.

J. LESCHNER: They would look at me and give me the finger and even make a little gestures like they were going to shoot me.

SIDNER: Joe says the racial hatred intensified when his Jamaican bride arrived.

SESHENA LESCHNER, FORMER POTTER COUNTY RESIDENT: In Walmart, I got a lot of that (BLEEP).

SIDNER: In their mind, if more people stood up against hate, the racists would be forced to leave and let love stand.

Sara Sidner, CNN, Ulysses, Pennsylvania.

(END VIDEOTAPE)

WARD: Critics are slamming Fox News host Laura Ingraham accusing her of stirring up white anxiety in America. But it's not the first time the

network has been accused of peddling fear. CNN's Brian Stelter reports.

(BEGIN VIDEOTAPE)

[15:40:01] LAURA INGRAHAM, FOX NEWS CHANNEL HOST: The America that we know and love doesn't exist anymore.

TUCKER CARLSON, FOX NEWS CHANNEL HOST: No nation, no society has ever changed this much, this fast.

BRIAN STELTER, CNN CORRESPONDENT (voice-over): What is Fox News peddling here?

Carlson: Demographic replacement.

INGRAHAM: Massive demographic changes.

STELTER: Fox is peddling fear. White Christian America's fear of change of losing power.

It's one of the same vain that President Trump taps.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Remember the attack on merry Christmas? They're not attacking it anymore. Everyone's happy to say

merry Christmas, right?

STELTER: Experts sometimes call it white anxiety as America becomes more multicultural.

INGRAHAM: The American that we know and love doesn't exist anymore.

STELTER: Laura Ingraham is now trending on Twitter because on Wednesday, she channeled her audiences' concern in that widely criticized clip.

INGRAHAM: Massive demographic changes have been foisted upon the American people. And they're changes that none of us ever voted for and most of us

don't like.

STELTER: She explicitly cites both illegal and legal immigration.

INGRAHAM: There is something slipping away in this country and it's not about race or ethnicity.

STELTER: Not about race? Critics scoffed at that claim.

Democratic senator, Tammy Duckworth said the racist comments shouldn't have been aired by Fox News.

ANGELO CARUSONE, PRESIDENT, MEDIA MATTER FOR AMERICA: What they are doing really consistently is promoting ideas that derived from white nationalist

places.

STELTER: Angelo Carusone runs Media Matters, a liberal group that campaigns against Fox. He points to that clip as the reason why.

CARUSONE: Now, I think it's well beyond a wink and a nod. Now, I think it's full throated promotion.

STELTER: He claims that Fox stars echoed the rhetoric of racists like David Duke, who gave kudos to Ingraham for her, "important, truthful

monologue."

Duke has also complemented Tucker Carlson in the past.

CARLSON: And Hazleton's population was two percent Hispanic. Just 16 years later, Hazleton is majority Hispanic. This is more change than human

beings are designed to digest. This pace of change makes societies volatile, really volatile, just as ours has become volatile.

STELTER: Segments on his show are frequently about the feeling of whiteness being under threat. Ingraham covers this too. Fox's fan base

almost 100 percent white is incredibly loyal. So the ultimate winners here are Rupert Murdoch and his sons who run Fox's parent company. Profiting

from this right-wing rhetoric.

(END VIDEOTAPE)

WARD: I'm not asking, I'm ordering, a federal judge lashed out at the Trump administration when he learned that two asylum seekers whose cases

were still pending in his court were being deported at that very moment by the U.S. government, even though it had promised to wait one more day. The

judge demanded the plane be turned back around and threatened to hit Jeff Sessions, the U.S. attorney general with contempt.

The government quickly complied and the plane with the two immigrants on board made its way back to Texas immediately after touching down in El

Salvador.

Meanwhile, the parents of U.S. First Lady Melania Trump are now American citizens. They were sworn in Thursday after spending years under permanent

resident status. A knowledgeable source tells CNN Melania Trump sponsored her Slovenian parents for their green cards which paved the way for their

citizenship. But her parent's naturalization is raising eyebrows since U.S. President Donald Trump has spoken out several times against chain

migration. That allows family members to immigrate after their relatives obtained legal status.

Still to come tonight, the politics of protesting. Donald Trump is once again slamming American football players who take a knee during the

national anthem saying most can't even define why they're doing it, that's next.

(COMMERCIAL BREAK)

[15:45:02] WARD: American football players are back on the field and so are some controversial protests. President Donald Trump is slamming NFL

players who choose to kneel or raise a fist during the national anthem at last night's preseason games. He's long criticized this form of protest as

disrespectful to the American flag and military, even once labeling players who do it sons of bitches.

Today, Mr. Trump tweeted that numerous players wanted to show their, quote, "outrage at something most of them are unable to define."

The players have said they are protesting racial injustice and police brutality.

Let's bring in now Sports Illustrated Writer, Robert Klemko. Thank you for joining us.

Let's start out by just giving me your response to President Trump's claim that these players don't really know or are not really able to define what

it is that they're protesting against.

ROBERT KLEMKO, WRITER, SPORTS ILLUSTRATED: Yes. Certainly, that's the most dubious claim that he's made around this topic in the time that he's

been talking about it over the last two years.

A number of players from Malcom Jenkins to Chris Long to Richard Sherman and many of the players who protested this week have enumerated all the

reasons they're protesting, mainly centered around police brutality, their quest for prison reform and really there are feeling that we have so many

institutions that are affected by generational racism. They've written about it, they've talked about it, and he knows that, and I think he's

playing to his base who share some of those opinions.

WARD: So this is a new NFL season, why are these protests reigniting? Or can we just expect to see this continuing indefinitely?

KLEMKO: Well, at the end of last season, players coalition which is the group leading this on the players side got together with the owners and

they came to an agreement for many of the owners to pledge money to causes that affected social justice.

In the past, it's always been nonpartisan charities. But the players got owners to commit large amounts of money to a lot of causes that they

believed in. And it was seen that this issue was dying. I mean only a dwindling number of players were protesting police brutality during the

national anthem last year.

Then the NFL passed a rule where they said that if players protested or otherwise demonstrated during the national anthem, they could be fined or

suspended. There was a lot of backlash to that rule.

And then when teams rescinded that rule and said they would reconsider that's when President Trump jumped back into the conversation and I think

angered a lot of players who feel he is emblematic of what they're protesting against.

WARD: Is there a sense that he's just doing this, though, to appeal to his base?

KLEMKO: Well, look, in the investigation in the Russian collusion, there has been more than 20 indictments and several arrests. So, you know,

obviously he's got bigger things to worry about. But he knows that this is an issue that he wins with the people who voted for him, that his base can

rally around the idea that these black millionaires are protesting for no reason, and should be happy with the money that they're being paid.

He tweeted, they should be happy that they're making a fortune. It goes to this idea that because these men are wealthy and have been successful in

America, that somehow they should have to be brothers.

WARD: And what's been the response of the fans? I mean how is this impacting the game? Is it impacting the game?

KLEMKO: Television broadcasts for the NFL, for all broadcast, whether it's Sunday, during the day, Monday nights, Sunday nights, have been down over

the last two years and I think a lot of people have pointed to the protests as a divisive issue that's turning fans away.

[15:50:59] But broadcast ratings and viewership for all sports across the north American landscape have gone down as a result of the popularity of

streaming services and other ways to watch games that aren't counted by Nielsen ratings.

So I don't think that it's really affected the NFL's business in a large way. But the owners are very concerned which is why they've passed a rule

that they then quickly rescinded.

WARD: And is there any chance that this is going to be somehow resolved or do the two sides appear to becoming more entrenched?

KLEMKO: When you listen to comments from people like Jerry Jones and the players on his team who agree with him like Dak Prescott, there's a very

clear disconnect between these protesting players and the NFL establishment who believe, in many cases, that the players disrespect the soldiers who

have fought and died during in American wars by protesting during the national anthem.

And I know several players who once protested, who stopped because they didn't feel like the audience could get over that disconnect and could

understand that they weren't protesting the sacrifices made by soldiers, that they were protesting police brutality.

So I don't think that the two sides will come to an agreement on this issue any time soon, especially with President Trump stoking the flames.

WARD: All right, Robert Klemko, thank you so much.

KLEMKO: Thank you.

WARD: More to come, including beer, it's a staple for life in Britain, but could Brexit change that?

(COMMERCIAL BREAK)

WARD: 400 brewers, more than 1,000 beers. They come together for an annual tradition that attracts nearly 50,000 people. Yes, we're talking

about this year's Great British Beer Festival, although it's taking place as Brexit looms with potential consequences for one of the country's top

exports. But are drinkers worried about the impact?

Well, CNN's Nina dos Santos took a sip to see if the Brexit glass was half- empty or half-full.

(BEGIN VIDEOTAPE)

NINA DOS SANTOS, CNN CORRESPONDENT: Ales, porters, bitters, some things for every taste. You've guessed it. It's a beer festival. The Great

British Beer Festival, to be precise, an annual tradition for a demanding crowd which organizers say will have drunk 250,000 pints, by the time this

five-day event finishes. That's 100,000 liters, all in layman's terms a lot of beer.

But with Brexit on the horizon, will Britain's drinking habit suffer as the country leaves the European Union?

UNIDENTIFIED MALE: So it will (INAUDIBLE) to drink free beer.

UNIDENTIFIED MALE: I think the U.K. market and the beer role is so good. The Brexit base is quite effective.

UNIDENTIFIED MALE: It might stop some of the largest (INAUDIBLE) but we don't care about that because that's stuff's rubbish.

DOS SANTOS: This festival is all about celebrating a great British institution, the humble pint. But Meghan would say, there's a lot riding

on Brexit for British brewers, not at least because beer was among the top three food and drink exports of this country last year, generating some

$700 billion worth of sales and 900,000 jobs.

[15:55:04] And the industry does have some concerns, one thing the cost of wheat, hops, and other ingredients use to make beer.

UNIDENTIFIED MALE: We just want to make sure because we remind consumers so they know that the prices are not going to skyrocket. We want to make

sure that brewers are going to have to maintain the supplies they have for making the beer and making the cider.

DOS SANTOS: A weaker path could make that harder. But are drinkers worried?

UNIDENTIFIED MALE: It may get a bit more expensive because some of the contents of beer probably may get more expensive. Probably stop with

drinking.

UNIDENTIFIED MALE: If it goes up by a pound, we'll still have a beer. It's not (INAUDIBLE)

UNIDENTIFIED MALE: From the Brexit perspective, this will survive.

DOS SANTOS: Maybe some things just never change.

UNIDENTIFIED MALE: A cold day in the middle of winter, you want a nice, dark, British strong beer that's going to warm you up.

UNIDENTIFIED MALE: It's very intensive in British. Beer is our national drink in the U.K.

DOS SANTOS: For consumers and for the industry, at least for now, the Brexit glass is half-full.

Nina dos Santos, CNN, London.

(END VIDEOTAPE)

WARD: And finally, tonight, we want to say a special good luck to one of our own. This is Florence Davey-Attlee, she is one of our producers here

on HALA GORANI TONIGHT, and she has qualified to represent team GB in the triathlon at the European championships in Glasgow this weekend.

She'll be racing in the age group category, not only she's been training day in and day out. She also puts together some of the best content that

you regularly see in this show.

Oh, and did we mention? She's planning a wedding as well. I think we can all agree that qualifies as superwoman status. So from all of us at CNN,

good luck, Flo, and to everyone else taking part.

Well, that's all from us tonight. Thank you so much for watching. Stay with CNN, "QUEST MEANS BUSINESS" is up next.

(COMMERCIAL BREAK)

(CLOSING BELL RINGING)

[16:00:58] RICHARD QUEST, CNN INTERNATIONAL HOST: Closing bell ringing on Wall Street. End of the week, the Dow is down nearly three quarters of one

percent broader markets also having some difficulties.

END