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Indonesia devastated by earthquake and tsunami, search for survivors; U.S and Canada ink trade deal to change NAFTA; FBI investigations on Brett Kavanaugh being controlled by the White House; Conservative Party conference in the U.K. for Brexit plan. Aired at 8-9a ET

Aired October 01, 2018 - 08:00   ET

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

(COMMERCIAL BREAK)

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

Clearing the rubble, people in Indonesia sift through heaps of debris from a devastating earthquake and tsunami looking for survivors.

A new deal ahead of the (inaudible) board on a renegotiated trade deal with the U.S. and Mexico.

And controlling the scope, questions emerge over how much leeway the FBI really has in the investigation of Brett Kavanaugh.

Indonesia is reeling from a catastrophic earthquake and tsunami that struck the island of Sulawesi three days ago. The full scale destruction is still

unclear, but the city of Palu is now in ruins. Eight-hundred and 44 people are confirmed dead. That number is likely to rise. Authorities are now

beginning the grim task of burying the hundreds of bodies in mass graves, a precautionary measure to prevent the spread of disease.

This video, it shows the terrifying moment the earthquake struck on Friday. You can see the buildings in the background just crumbling to the ground.

Our Matt Rivers arrived a few hours ago in one of the hardest hit areas in Indonesia's Sulawesi region. He joins us now, and Matt, you are there. You

are in the devastated city of Palu. Can you describe the conditions around you.

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Yes, absolutely. I mean, let's start -- let's start here before talking about the big picture that

we saw today. Let's start where we are right now, Kristie. We are next to a hospital that officially is open here in Palu and yet the people that are

being treated by this hospital are being treated outside because inside there is a fear that if we get hit with an aftershock the building could

crumble.

So right there behind me, that's an outdoor clinic. So earlier today, I saw someone getting a shot, I saw someone being prescribed medicine, I saw a

guy getting around a dozen stitches right there behind. And the patients -- if we can walk over here and show you -- the patients that should be inside

the hospital are forced to be outside.

So this is a tent that they put up pretty hastily. Probably about three dozen people in their, Kristie, most of them are on mattress pads on the

ground. The lucky ones have beds if you can call being outside in this heat and humidity lucky. And they're dealing with severe injuries. So what this

shows you is not only due to their injuries, how devastating both the earthquake and the tsunami were especially when you combine the two, but

also, the lack of infrastructure here.

This was a region that was not prepared for this. This is a poor region and they simply do not have the infrastructure either in the building or in the

healthcare system to deal with this and one (inaudible) Kristie, about 100 meters to my right there are 130 bodies that are outside in the parking lot

next to the emergency room because the morgue here just got overwhelmed. There is nowhere else to put those people.

LU STOUT: A 130 bodies of the dead right next to it is desperate patient who do not want to go inside the hospital. It's a compromised building.

Aftershock had been ongoing and they have some serious injuries. They're all outside and probably (inaudible) not to far from you Matt.

We know that there are multiple search efforts underway. And because of the rubble of collapsed buildings that is littering the city. There is hope

that there could still be survivors found. What have you heard about that with the latest on the search and rescue?

RIVERS: Yes, there is always miracles possible, Kristie. I mean, we've certainly seen people found in situations longer than this. The earthquake

happened Friday night. It's now Monday here. So, conceivably there could still be people alive. But as the hours go by as you and I both know, the

odds of finding people alive grow dimmer. And yet the operations are ongoing kind of sporadically though.

You are not talking about giant buildings, giant apartment blocks that collapsed. It's really structure by structure by structure. And the search

and rescue operations, if you can call, are being done by ordinary people. We followed three guys earlier today.

They said follow, take the camera, follow us we followed them down to what essentially was just a wooden shack and we don't know who they belong, if

they were government organization, if they were just volunteers, and they were going through. They put a tarp on the ground and they were going

through the rubble of this wooden shack and they didn't know whether they would find a body or not.

So that's what search and rescue efforts look like in Sulawesi right now. And certainly it does show you that people are trying the best in the face

of tough, tough situation.

[08:05:03] LU STOUT: Yes, a very tough situation. The destruction there is devastating. Many, many people still waiting for help. Mat Rivers reporting

live from the scene there in Palu. Matt, thank you.

Margie Siregar is the Emergency Response director for World Vision. And she joins me now via Skype from Jakarta. Margie, thank you for joining us. I

understand you have teams on the ground in the quake zone. What kind of devastation have they seen?

MARGIE SIREGAR, DIRECTOR, WORLD VISION EMERGENCY RESPONSE: So now, we just found out that we still missed one person and we just called in another one

so, the staffs are now quite in grief and also we already start to assess the area. Seventeen percent of the city of Palu are damaged while we can

only access 20 percent of the city area where the (inaudible) happened.

And still difficult to access (inaudible), the (inaudible) area in (inaudible) in the coastal area. We still yet to get communications to the

other area of (inaudible). We are still waiting how much the damage is there in (inaudible).

LU STOUT: While the challenge is immense for you (inaudible) up against blocked roads, up against down power lines, so many people there in the

quake zone waiting for more help. Margie, thank you for joining us and best of luck to you and your teams there in the quake zone. And if you would

like to help the victims affected by this earthquake and tsunami in Indonesia you can go to CNN.com/impact. You will find links of multiple

organizations working to bring relief. Again, you can find it at CNN.com/impact.

Now, at least two people are dead and more than 150 are injured after a powerful typhoon battered Japan over the weekend. Typhoon Trami cleared

Japan by Monday morning but before causing major travel havoc. More than a thousand flights were cancelled along with some bullet train services in

major cities like Tokyo.

Chad Myers joins me live from the CNN Weather Center, and Chad, yet another typhoon. This is just a few weeks after Jebi. You know, this typhoon worked

(ph) through Japan. Walk us through the aftermath of typhoon Trami and what could come next.

CHAD MYERS, CNN METEOROLOGIST: There is another one out there. Kong-rey is out there probably down through the Ryukyu Islands, but we'll see where

that thing goes. For right now, here is Trami. It did move away in the weekend hours where it kind of made landfall in the south part of Japan on

Friday.

And then right over mainland Japan somewhere on Saturday afternoon, but the wind gust were impressive. Almost 200 miles or kilometers per hour is it

did go over it. And this is why the rail service is basically shut down for some spots of the rail lines.

There are trees, power lines, transformers down all over the place with those gusty winds. Even almost 500 millimeters of rainfall., it goes 434

millimeters of rainfall in the higher elevations that is now washing down making some landslides, mudslides possible with the storm here.

Here is Kong-rey. This thing exploded overnight it was just a 200 kilometer per hour storm. Now, we think its significantly stronger than that. I'd

give you some bearing here as Manila then you go up towards Luzon and then even from Hong Kong there, this storm is going to turn to the right.

All the matter (ph) say some kind of turn to the right, but there is a couple of different models we're looking at, one getting up towards Okinawa

and getting into south Japan. Another one, the European model, getting right very close to Shanghai stopping and then turning the left and moving

away.

Let me show you the European versus the American model. This will be always look for, the European model taking it right to the left and the American

model taking it to the right obviously still five days away, but this could very well be another super typhoon before we get done. There have been

enough. There have been five super typhoons this year. There should've been three. This could make six, double the number of super typhoons in the

water in the Westpac this year, Kristie.

LU STOUT: Well, Japan has been hit by a number of major storms and extreme weather conditions. Now, we have Kong-rey on the way. Chad, we thank you

for your reporting. Take care. All right, you are watching "News Stream." And still to come right here on the program, deal making goes down to the

wire for the U.S.-Canada-Mexico, and when the dust settles, a new trade deal was made.

Plus, the FBI probe into Donald Trump's Supreme Court pick, that is underway, but just who investigators talk to and about what? Why Democrats

are raising concerns.

[08:10:00] (COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong on a Monday night Welcome back, this is "News Stream."

Now, U.S President Donald Trump once called NAFTA, in his words, the worse deal maybe ever signed. And today you can say he delivered on the campaign

pledge to revise it after Canada reached a last-minute deal with the U.S.

On twitter, President Trump called the new pact, which will be known as the US-Mexico-Canada agreement, wonderful and historic adding that it will be

great for all three countries. Let's go now to New York. That's where we are going top find CNN correspondent Paula Newton as well as CNN's chief

business correspondent Christine Romans. A big thank you to you both and Christine, we'll start with you

Donald Trump, we know he has long criticized NAFTA. Is this new trade agreement that much different from the original? What's in it?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you know, they're ditching the name. It's not going to be NAFTA. It is US-Mexico-Canada

agreement USMCA. Peter Navarro, one of the president's top trade architects saying, you know, consider NAFTA dead. This is the new architecture.

The Americans and the Canadians saying this is going to strengthen the middle class and create good well-paying jobs for the nearly half a billion

who call North America home. What's in it? Well, they gave way on that access. More access now to Canada's dairy market. This was really important

politically for President Trump -- a big win for President Trump.

He had been in upstate New York. He had been in Wisconsin. He had heard the complaints of American farmers and he really, really pressed Canada on

this. It does preserve a way to settle dispute. That is something that is important to the Canadians, but it is still scaled-back.

Now here is something interesting, the higher wages and labor standards for autoworkers, cars imported from the three North American countries must

have 75 percent North-American content rather for duty free trade and two- fifths of every car to be duty-free have to have wages at $16 an hour or higher.

So that was something that was a really important thing for the Americans. They're really trying to, you know, make things better for American factory

workers. That was really a goal here for the American team.

LU STOUT: Got it. And Paula, there was this time where it was kind of touch and go for Canada. You know, it looked like Canada would be excluded

from any final deal, but they are in it. So, how is Canda viewing this? Are they getting what they want?

PAULA NEWTON, CNN CORRESPONDENT: They definitely did get a lot of what they wanted. One thing that they didn't get though and despite everything

that Christine just mentioned in terms of you're going to have a lot of politicians today saying this is a win-win situation.

Canada did not get the tariffs on steel and aluminum lifted. That is 25 percent on steel, 10 percent on aluminum. It's causing the Canadian

economy, and I don't say other economies around the world, a lot of money right now, Donald Trump and his administration hung close to that largely

for political reasons.

The Canadian say they are still waiting for those to be lifted, but Christine, what this does -- Kristie, what this does is shed really a light

on what the negotiating strategy will be going forward. Whether it's Japan or whether it's Europe or whether it's China, which will the tough

negotiation ahead, Kristie, which we all know these are the kind of issues, political issues that no matter how much the negotiations went down to the

wire the Trump administration just wouldn't budge.

LU STOUT: Yes. And let's get Christine's thoughts on that. Christine, how should other nations seeking a trade deal with the U.S. view this?

[08:15:02] Should they be more optimistic, more hopeful that, yes, they too can struck a deal with Donald Trump?

ROMANS: I think that they have seen how Donald Trump negotiates. Like you're right, he did not budge at all, Paula. And you know, there was

criticism of this president last week because he was taking such a tough line on America's allies at the same time he is being so -- Canada -- while

he is being so gentlemanly to North Korea, right.

And I think the Chinese negotiators, what they see in this deal right here is a president who did not back down. They see a Chinese manufacturing

sector that is starting -- it's growth is slowing there, right, under a bit of pressure. And this is a president who really, really wants to make

another campaign promise in terms of China, keeping a campaign promise in terms of China.

Also in this deal, there's this interesting thing. I don't know if you notice it Paula, but in sort of the -- what we're learning and what's

emerging about this deal, something about currency manipulation. Countries could not be able to, you know, artificially weaken their currency to help

their exports.

That's part of that problem, between the United States, Canada and Mexico. There are a lot of people who were thinking that some of that language and

some of those ideas might be a precursor for other trade ght be a precursor for other trade deals going forward.

(CROSSTALK)

LU STOUT: Paula go ahead.

NEWTON: I'm sorry Kristie, no, and Christine is right. Christine Romans is right in terms of the architecture of this deal. When you look at the

architecture of this deal in terms of currency manipulation or even key here, Kristie, is the intellectual property piece. They are definitely

looking at it as a template to go forward.

LU STOUT: All right, Paula Newton, Christine Romans, a big thank you for you both. Thank a lot. Take care. We're going to have much on the deal

along with how the market is going to react at the opening bell. That's coming up on "First Move with Julie Chatterley" that starts in about 40

minutes from now.

And news that Elon Musk will step down as the chairman of Tesla, that seems to be giving a big boost to the stock. I mean, Tesla shares has soared as

much as 18 percent in pre-marketing trading after Elon Musk agreed over the weekend to pay a $20,000,000 fine to (inaudible) a lawsuit filed by the

U.S. Securities and Exchange Commission.

Regulators, they claim that he misled investors by claiming he has secured funding to take the company private. Musk did not admit or deny wrongdoing

with the settlement. He will remain as CEO.

Now, the FBI investigation into Donald Supreme Court nominee seems to be raising more questions and answers at this point. President Trump has said

the FBI will have free rein in their probe of Brett Cavanaugh. But Democrats, they are concerned with White House maybe trying to limit the

scope of the investigation.

Kavanaugh has denied allegations of sexual misconduct dating back to his time in high school and college. His drinking habits back then have also

come under scrutiny and that one of his former Yale classmates says that Kavanaugh has not told the truth about that. Abby Phillip is at the White

House. She joins us now and Abby, the questions out there, concerns are growing about the scope of the investigation and exactly who's calling the

shots here.

ABBY PHILLIP, CNN WHITE HOUS CORRESPONDENT: Exactly right, Kristie. This investigation was supposed to add some more clarity to this national debate

about the MeToo Movement that has been sparked by Brett Kavanaugh's nomination, but instead what we're talking about is whether or not the

White House is playing a role along with Senate Democrats in trying to limit the scope of this investigation.

(BEGIN VIDEOTAPE)

PHILLIP (voice-over): The FBI investigation into Judge Brett Cavanaugh under scrutiny with sources telling CNN that the White House is controlling

the scope of the probe despite President Trump insisting otherwise.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They have free rein. They're going to do whatever they have to do, whatever it is they do.

PHILLIP: Two sources tell CNN that the administration's lead advocate for Kavanaugh, White House counsel Don McGahn is working with Senate

Republicans to make the review as narrow as possible.

KELLYANNE CONWAY, COUNSELOR TO THE PRESIDENT: It will be limited in scope. It's meant to last one week. It's not meant to be a fishing expedition.

PHILLIP: The top Democrat on the judiciary committee, Sen. Dianne Feinstein, requesting a copy of the White House's directive laying out the

parameters of the investigation in a letter to McGahn and FBI Director Christopher Ray last night.

SEN. MAZIE HIRONO (D), HAWAII: To limit the FBI as to the scope and who they were going to question. That really -- I wanted to use the word farce

but that's not the kind of investigation that all of us are expecting the FBI to conduct.

PHILLIP: President Trump pushing back, charging that nothing will ever be enough for Democrats.

SARA HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: The White House counsel has allowed the Senate to dictate what these terms look like and

what the scope of the investigation is

SEN. AMY KLOBUCHAR (D), MINNESOTA: You can't interview this person, you can't look at this time period. You can only look at these people from one

side of the street from when they were growing up. I mean, come on.

PHILLIP: A source tell CNN that Cavanaugh's drinking history, a key point of contention at last week's hearing is not part of the probe.

BRETT KAVANAUGH, U.S. SUPREME COURT NOMINEE: If you're asking about blackout, I don't know, have you?

PHILLIP: On of Kavanaugh's Yale classmates accusing Kavanaugh of being a frequent and heavy drinker in a statement Sunday, feeding and downplaying

the degree in frequency of his drinking, Brett has not told the truth.

[08:20:04] UNIDENTIFIED MALE: If Judge Kavanaugh is shown to have lied to the committee, the nomination is over.

SEN. JEFF FLAKE (R), ARIZONA: Yes, I would think so.

PHILLIP: CNN has learned the FBI has spoken to Deborah Ramirez Sunday, who accused Kavanaugh of exposing himself to her at a party while they were

students at Yale, a claim Kavanaugh has denied. There is no indication that the FBI intends to speak with the third accuser, Julie Swetnick, who has

also accused Kavanaugh of sexual misconduct.

And Senate Majority Leader Mitch McConnell releasing a statement on Sunday, attacking Swetnick's credibility.

KAANAUGH: The Swetnick thing is a joke. That is a farce.

PHILLIP: Two sources tell CNN that Kavanaugh and Christine Blasey Ford were not on the initial witness list given by Senate Republicans to the

White House, but that agents were expected to interview several people who Ford says were present at the party where she says she was assaulted.

(END VIDEOTAPE)

PHILLIP (on-camera): And the question about the scope of this investigation is really one that could be answered pretty quickly either by

the White House or by the FBI. It's pretty telling that despite all of this back-and-forth over the weekend there hasn't been anything concrete that's

come out of either place about how and to what extent they are investigating this.

I should also note that last night, former FBI director James Comey wrote an op-ed indicating that he believes the FBI can play a constructive role

in this process. He indicated that he believed that if there were any lies that were told either in the confirmation hearing, the FBI can clear this

up because of the power that speaking to interviewers has people tend to not lie to the FBI and investigators tend to get the truth, so that's

Comey's perspective on all of this, Kristie.

LU STOUT: And meanwhile, President Trump, he says he has no plan B, he has no back up plan. In the event that Kavanaugh's nomination fails, why is

that?

PHILLIP: So that's right, I mean the president here projecting some confidence in this process and indicating that he's not looking elsewhere

just in case this failed. And I would also add that the White House agreed to do this seemingly in part because they believe that nothing could emerge

that would tank his nomination, but the president told reporters that this is it's Kavanaugh or bust.

But what we had heard from reporters -- from sources last week, is that there were people in the White House and around the White House who have

been suggesting that maybe they should start preparing some of the other individuals who had been on President Trump's shortlist just in case

Kavanaugh doesn't make it through.

I think there is still a possibility here, just given how narrow these margins are in the Senate, that this could go either way. So I think the

president projecting confidence shouldn't be taken as a fait accompli for this particular nomination, Kristie.

LU STOUT: Got it. Abby Phillip, reporting live from the White House. Thank you.

Now, the U.K due to leave the European Union in just six months time, but the debate on how to do it, that is raging on. British Prime Minister

Theresa May is facing increasing pressure from members of her own conservative party over her plans for Brexit. The issue is set to dominate

her party's annual conference in Birmingham, England, which is now in day two.

CNN's Bianca Nabilo is (inaudible) the story from there. She joins us live, and Bianca, at this conference, Theresa May really needs to reassert her

authority. We know that political rivals are circling around her. Tell us about what's at stake for the British prime minister.

BIANCA NABILO, CNN CORRESPONDENT: Kristie, I mean, politically everything is at stake with the prime minister this week. She has almost become and

her leadership synonymous with her Brexit proposal even though obviously the policy and the person are distinct what she stands for in these Brexit

negotiations is having a huge impact on her credibility as leader.

Now, it's been said for some time that she won't be leader too long after Britain actually exits the E.U next month from the 29th, but everything is

still uncertain at the moment and what's happened today is we've seen her in a call, really rally around her. We've had a speech from her chancellor,

Phillip Hammond, and also the Brexit secretary, Dominic Raab, who had some very strong words for the E.U. Let's take a listen.

(BEGIN VIDEO CLIP)

DOMINIC RAAB, U.K. BREXIT SECRETARY: If the EU wants a deal they need to get serious and they need to do it now. Some people say that no deal is

unthinkable. Wrong. What is unthinkable is that this document or any other British document could be bullied by the threat of some kind of economic

embargo into signing a one-sided deal against our country's interests.

(END VIDEO CLIP)

NABILO: Fighting talk there from the Brexit secretary who certainly does have a black belt in karate but he and the chancellor have rallied around

the prime minister today, just digging their heels in and making sure that the party know and bear in mind, this party is not -- will check in no

particular popular plan within this party.

[08:25:00] So they are really trying to call on some more support in these crucial stages and convince the members because they are actually aren't

other options on the table. People might talk about a comprehensive free trade deal that is more ambitious, but they argue that is simply not

possible as far as the E.U is concerned.

LU STOUT: OK, so, all eyes on Theresa May and also on, yes, Boris Johnson who resigned as foreign secretary in protest of May's chequer's plan

earlier this year. What Brexit plan is he calling for and how much party support does it have?

NABILO: That's an interesting question because when I was at the this conference last year, there was a lot more drama and excitement around

Boris as a figure in the party and he commanded more approval than he currently does. So that remains to be seen. He's going to hold a big rally

tomorrow so it will be interesting to see how the membership responds to that.

Now he, in his proponent of what he calls a super Canada deal. This is an idea that Canada style over the E.U., so a free trade agreement rather than

something closer to the Norway option which keeps the U.K. far more closely aligned with the European Union in the future.

Now, that has a lot of support among the membership of the conservative party, but that is exactly why the messaging from the prime minister, the

Brexit secretary and the chancellor today have been strong and they've all been arguing that whatever Boris is suggesting is simply not feasible in

these negotiations.

However, he did dominate the first day of conference yesterday with making a huge splash across all of the headlines. He has called the prime minister

chequers proposal to rage in his (inaudible) attacks on the proposal.

The former Brexit secretary, David Davis and some other members of the conservative party who are highly ranked and listened to those membership

have come out though and be more critical of Boris than they have in years past. So, watch the space. It seems like his star maybe fading somewhat.

LU SOUT: Interesting. Bianca Nabilo, reporting live from Birmingham, thank you. We'll talk again soon. You're watching "News Stream."

And still ahead, scenes of devastation just there in Indonesia as the death toll rises following that massive earthquake and tsunami. We go live to the

region, next.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream" and these are your world's headlines.

Negotiators bit of midnight deadline agreeing to replace the North American Free Trade Agreement or NAFTA. Canada signed on to the re-written agreement

with the U.S. and Mexico. U.S. officials say the deal will address trade imbalances and rules for auto exports as well as open up Canada's dairy

sector.

[08:29:59] Sources tell CNN that the White House is trying to limit the scope in the investigation to Supreme Court nominee Brett Kavanaugh. That

despite President Trump insisting the FBI would have free rein. Kavanaugh has vehemently denied accusations of sexual misconduct, dating back to a

time in high school and university.

The U.S.-led coalition in Syria says Iran gave no notice before firing several missiles into Eastern Syria. Iranian state media says the missiles

targeted militants involved in last month's deadly attack on a military parade in Western Iran. It says the airstrikes killed or wounded several

militants.

In Indonesia, mass burials have began for victims of Friday's devastating earthquake and tsunami. Eight hundred and forty-four people are now

confirmed dead due to the disaster and that number will likely rise. Rescue workers are scrambling to dig out any survivors from the rubble.

Let's bring in CNN's Matt Rivers live from the island of Sulawesi. Matt, you're there in the remote hard hit city of Palu. What are you seeing?

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: I mean, the devastation is immense. It depends on, you know, what you're looking at in terms of the

problem that you want to focus on. I mean, are the roads in great shape? No. Are a lot of houses collapsed? Yes. Is there water damage all over the

place? Yes.

Do people have adequate health care? No. Do the people behind me have to be treated for their severe injuries in an outdoor tent because they can't get

in to the hospital because of aftershock fears? Yes.

So, the challenges are massive, Kristie. And if we can talk a little bit about the infrastructure here, the only way you really meet those

challenges is by getting help in here. You need outside aid. They don't have enough source -- resources here locally.

How do you get that in? Well, you start with the airport. I'll tell a you a story at the airport. We were lucky enough to get on a flight that landed

here, a couple of hours delayed, but it landed in the mid-afternoon.

There is another journalist who is a friend of mine who was supposed to be on a flight that left or was supposedly five minutes after ours, he is

still in the city where we were about 500 miles south. His flight never took off.

And that's just look at the drawing that shows you that -- that not all of the planes that are would normally be landing here are landing here. So, is

the amount of aid that is coming in enough? No, at this point, because the runway sustained damage, the roads are in rough shape.

So, that's got to be the number one priority for -- for rescuers here, for authorities, is making sure that the infrastructure is good enough, that it

is repaired enough so you can get the aid in here that people like the ones behind me really need.

LU STOUT: Aid has been slow to come in. We know that there is rescue operation search and rescue happening right now to find any survivors in

the rubble. Earlier in the day, we saw the death toll is quite significant. When you talk to rescue workers there, when you talk to medical

professionals, are they fearful that the death toll will be even higher?

RIVERS: I mean, they're not -- I mean, yes, they're fearful, but they're also sure of it, Kristie. I mean, we know for a fact that the death toll is

going to go up. We saw that for ourselves. We were driving down the road when we saw people next to a body on the side of the road that they had

just put into a body bag, and they were trying frantically to wave down ambulances.

We saw four different ambulances drive past because they were already on another call. And we know for a fact that that particular person, whoever

that person was that lost his or her life, hasn't been added into the body count yet because they were just found and no authorities have heard of

them.

So that can happen in literally the first 20 minutes of us coming out of the airport. How many other times that being repeated across this very wide

area that was affected? I think the answer is quite a bit. Will the death toll go up? Yes. By how much? It's anybody's guess, but I think that the

threat is there for the death toll to go up quite a bit.

LU STOUT: You know, there is the evidence of the disaster caused by the earthquake, there is also the disaster caused by the tsunami, the waves

that were generated as a result of tremors. Have you seen evidence of that there in Palu?

RIVERS: It's interesting because the evidence is almost more about what's not there anymore -- excuse me, than what is. So when you go down towards

the coast, most of the houses that were there along -- nothing more than wooden shacks.

And what you saw when I first walked up to the coast, I said, wow, that's a very large expanse between the concrete structures where we were and kind

of the mud flat that was there and then the coast. And then you quickly realized, wait, that's where all those wooden shacks were and they're gone.

I mean, completely stripped down to the foundation.

There is not even any wood left in a lot of places because it was all pushed inland. So, the evidence of the tsunami is that nothing is left of

those wooden structures along the coast. And again, that is just what we saw today. We only had about four hours of daylight after we landed.

So what we're going to see tomorrow when we venture out of Palu when we go to some of the more remote areas that were hit, I think we're going to see

that repeated time and time again, Kristie, that the tsunami is likely far worse in terms of its devastation than the earthquake was.

[08:35:07] LU STOUT: This is catastrophic devastation. Our hearts go out to everyone in the disaster zone. Matt Rivers, we thank you for your

reporting. Take care. You're watching "News Stream." We'll be right back after this.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, welcome back. This is "News Stream." Now, the U.S. Justice Department is suing the state of California

over it's new net neutrality protections. Governor Jerry Brown signed the bill into the law on Sunday.

This will be the strictest protections in the country, banning internet service providers from blocking or slowing down content or applications as

they see fit. The U.S. government says the law is illegal and an attempt to undermine their deregulatory approach to the internet.

Now, U.S. President Donald Trump seems to be taking his new-found bromance with North Korean Leader Kim Jong-un to the next level. At a weekend rally

in West Virginia, Mr. Trump used the L-word to describe their relationship.

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I was really being tough and so was he. And we would go back back, and forth. OK?

(LAUGHTER)

TRUMP: No really. He wrote me beautiful letters. And they're great letters. We fell in love.

(END VIDEO CLIP)

LU STOUT: Now, both leaders have said that they want to work toward denuclearizing the Korean Peninsula. As we know, they met in Singapore

earlier this year to discuss the idea. And those very warm comments from Mr. Trump, they come roughly one year after he famously called the North

Korean leader "rocket man."

While President Trump is once saying that he is in love with Kim Jong-un, he is not the one receiving gifts. North Korea's leader is sending a pair

of four-legged presents to South Korean President Moon Jae-in in another sign of their blossoming relationship.

Two Pungsan dogs known for their loyalty as well as their hunting skill, they crossed the DMZ. Mr. Moon is known to be an animal lover, who adopted

earlier a shelter dog named Tory. North Korea calls the Pungsan dog its national monument animal.

The queen is Britain's longest reigning monarch and to celebrate her 66 years on the throne, the artist, David Hockney, created his first work of

stained-glass and is displayed at none other than Westminster Abbey. CNN's Nick Glass takes us to London to see the queen's window.

(BEGIN VIDEOTAPE)

NICK GLASS, CNN CORRESPONDENT: On the pavement outside Westminster Abbey, a familiar figure with a cane and a smoker's cough. At 81, just time for a

last few puffs, David Hockney's assistant, a pocket ashtray is evidently a key accessory. Then just a few moments checking the mobile on the way in

and on reaching the great abbey door, politely waving us away.

DAVID HOCKNEY, ARTIST: You can't come in now. You can't come in now.

GLASS: We've arrived too early; not unreasonably the artist wanted some time alone before the press corps. Of course, the abbey already has a lot

of stained glass, much of it 19th century and solidly figurative. Hockney's window is of a different palette, wonderfully vibrant and almost abstract.

[08:40:00] It was commissioned by the abbey to mark the queen's long rein. Hockney was given a free hand and chose an image of spring hawthorn

blossom. He'd already painted hawthorn blossom many times in England. Just look at some of his landscapes from 2008.

You had been enraptured by the hawthorn blossom during that period in Yorkshire, had you not?

HOCKNEY: Yes, I have, yes, yes.

GLASS: It is not there for very long.

HOCKNEY: No, I mean, it only lasts for four days or something. I mean, it is a marvelous moment. Well, I drew it on an iPad because iPads are

backlit. I mean, you could -- it is a marvelous thing for drawing stained glass on an iPad.

GLASS: So designed by Hockney, specialist glass supplied from Germany and then all pieced together and assembled in situ by a company from Yorkshire.

So are these the colors you hoped for?

HOCKNEY: Yes, yes, yes, they are. Yes, because I wanted stained glass colors. I mean, I did want that blue you get, with the green, the red, the

yellow. The yellow is --

GLASS: I really love the yellow.

HOCKNEY: Yes, yes, yes.

GLASS: Hockney's window hangs in so called Statesman's Alley with its political statues, famous prime ministers like Benjamin Disraeli and

William Gladstone. For the first time in over a century, Gladstone's tomb is now bathed each day by a shaft of colored light.

The schoolchildren are just here to see it for the first time behind you.

HOCKNEY: Oh.

GLASS: That's rather nice. They're being shown for the first time. Have a look. It is your first audience, besides us media.

HOCKNEY: Oh, yes. Oh, very good.

(LAUGHTER)

HOCKNEY: Children like my work, I know.

GLASS: So he confirmed it in person. Yes, they did like it.

I have to say it is kind of joyous.

HOCKNEY: Yes, yes. Well, it is meant to be joyous, yes.

GLASS: What you think the queen will make of it?

HOCKNEY: I think she'll like it.

GLASS: Nick Glass, CNN, with David Hockney at Westminster Abbey.

(END VIDEOTAPE)

LU STOUT: Another masterpiece by David Hockney. And that is "News Stream." I'm Kristie Lu Stout. But don't go anywhere. "World Sport" with Rhiannon

Jones is next.

[08:45:00] (COMMERCIAL BREAK)

END