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Death Toll Rises to 44 in California Wildfires; Israel Launches Dozens of Airstrikes on Gaza Targets; Wall Street Losses Extend to Tokyo's Nikkei; U.S. President Tweets Up Controversy at Home and Abroad; Brexit: Time Running Out As Theresa May Claims Talks in 'The Endgame'; Saudi Energy Minister On Oil: We Need To Do "Whatever It Takes" To Balance The Market; Suu Kyi Stripped Of Amnesty Intl's Highest Honor; Comic Legend Stan Lee Dies At 95. Aired 2-3a ET
Aired November 13, 2018 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREW STEVENS, CNN ANCHOR: You're watching CNN. I'm Andrew Stevens live in Hong Kong. Ahead this hour, the wildfire burning in Northern California is now the deadliest in that state's history and crews are still a long way to get it under control.
New fears that Israel and Hamas may be on the brink of another war, as the two sides trade rocket fire along the Israel-Gaza border.
Another rocky ride on Wall Street Monday as tech stocks and oil prices helped spook investors.
STEVENS: In California, search crews are finding more bodies as they are combing through cars and homes burnt to the ground in the state's devastating wildfires. The death toll now stands at 44. All but two victims were killed in the so-called Camp Fire in Northern California. To the south there's also devastation. More now from CNN's Nick Watt in Malibu.
NICK WATT, CNN CORRESPONDENT (voice-over): Ferocious flames burning in the north and south of the Golden State, scorching an area larger than all five boroughs of New York City since Thursday. Forcing 300,000 people from their homes.
Some through the flames.
UNIDENTIFIED MALE: God, it's so hot.
WATT: In the north, the Camp Fire now the most destructive in California history. Around 6.5 thousand homes destroyed. Scores of firefighters working to contain the inferno as many learn they lost their own homes. The town of Paradise, home to 26,000, is now no more.
COLE WYATT, PARADISE RESIDENT: A whole town was wiped off the face of the Earth in a matter of eight hours.
WATT: The dead found in their homes or in their cars, trying to escape but too late. Coroners' search and rescue teams trying to identify charred remains. Roughly 100 people still missing.
JAKE HANCOCK, BUTTE COUNTY D.A. INVESTIGATOR: We're going door-to- door and house-to-house, looking for families' loved ones that are missing.
WATT: Here in Southern California, the Woolsey Fire tearing through Malibu, two lives lost and around 370 structures destroyed.
DAVID FRANZONI, MALIBU SCREENWRITER: Everything was coming over the fence onto our property.
WATT: Malibu screenwriter David Franzoni ignored executive orders and was able that save his own home with a hose, a pump and the water from his pool.
We had a choice.
FRANZONI: Do we stay and save our house or do we leave?
So we stayed.
WATT: In Malibu Park, Craig and Stacy (ph) Clunisross owned two properties now that are little more than ash.
CRAIG CLUNISROSS, MALIBU PARK HOMEOWNER: It was a 100-foot wall of flames. It was roaring. It was like a --
STACY (PH) CLUNISROSS, MALIBU PARK HOMEOWNER: Tornado.
C. CLUNISROSS: -- tornado. And it was just not defendable, not without putting my life in serious jeopardy.
WATT: What sparked these flames still under investigation but more than half of California's most destructive wildfires in the past century have burned since just 2015. Many pointing to climate change as fanning these flames.
JERRY BROWN (D), GOVERNOR OF CALIFORNIA: This is not the new normal; this is the new abnormal.
WATT: And what does that new abnormal look like?
Well, so far this year in California, 800,000 acres have burned in wildfires. Normally by this time of year, that figure is about 200,000. So we're talking four times the average. And here in Southern California, the Woolsey Fire, the Santa Ana winds that are whipping those flames expected to continue through Tuesday.
In some places red flag warnings have been extended to Wednesday. And there's also no rain in the forecast -- Nick Watt, CNN, Malibu.
STEVENS: Brynn Chatfield had to evacuate from her decimated town of Paradise in Northern California. She and her family drove through the flames to get to safety. She now joins us online from California.
Brynn, welcome to the show. Thanks for joining us here. I know we got some video that was shot from your car while you were making your escape.
Can you talk us through the experience you had in getting to safety?
BRYNN CHATFIELD, PARADISE, CALIFORNIA, RESIDENT: As we were driving, I had no idea that that part of Paradise had already caught on fire. I thought the fire was several miles behind us. So as I started to video, I was videoing because I was in shock that homes and neighborhoods were already being destroyed.
Businesses were already up in flames. And we were completely shocked that the fire had already reached that part.
STEVENS: I'm just looking at the video here that you shot.
STEVENS: It -- it looks like you're almost in a hopeless position, driving through flames on both sides of the road, thick smoke. Just describe what it is like being in the car and how you felt at the time.
CHATFIELD: It was -- it was a helpless feeling. I felt like the only two options we had were to pray and for my husband to just keep driving. We hoped the wheels wouldn't melt and we hoped the fire wouldn't overtake us. As you can see in the video, the -- it gets really dark and we can't even see in front of us as we're going.
And so we just prayed and kept going. And we were so thankful to see the blue skies at end.
STEVENS: It is quite remarkable, seeing you emerge from this -- this hellscape into what looks a relatively calm area outside the fire. I understand your -- two of your children and your mother were in the car behind you.
How have your children dealt with this?
And what did they tell you about their experience?
CHATFIELD: That's actually a little bit different. We had loaned our car to our friend, Sarah, and her two kids. They were the ones in the car behind us. That was really devastating for us to know that those children were experiencing that. But thousands and thousands of children and families experienced a drive very similar to that and even worse.
STEVENS: Yes, I -- I can only imagine. The question on many people's minds is, why didn't or couldn't you leave earlier?
Or was it a case of the fire came up so fast that you had no time to prepare to leave in good order?
CHATFIELD: The fire came up really fast. There were reports the fire at 6:30 am; we saw evacuation zones starting to be evacuated at about 8:00 to 8:15. And so most people in Paradise were just kind of watching the mandatory evacuation zones.
And the fire caught fast and it wiped out Paradise fast. So I think people were trying to get out. But there was 30,000 people trying to get out on just a few roads. The roads were heavily trafficked. But drivers were so considerate and people, so many heroes leading traffic and trying to get people out of Paradise, it was amazing.
STEVENS: Brynn, you were born and raised in Paradise. I can't imagine how it must feel to know that the town has been so decimated and there has been significant loss of life.
How are you coping with that?
CHATFIELD: We're doing really well. But the city that I loved, that I chose to bring my family back to and raise my children, it is really hard to see this devastation in such a beautiful area with so many incredible people.
And we have definitely felt the love from around the world and the concern from those all over the world but Paradise will need a lot of help and prayers and -- if people can donate to venmose (ph) or to GoFundMe, Paradise is going to need it. And the citizens are incredible people. And they're strong but they need help.
STEVENS: All right, Brynn. I understand this is an incredibly emotional time, a very difficult time for not just you but the survivors from Paradise. Our hearts are with you and hopefully they will rebuild and life will get back to normal in Paradise. Brynn Chatfield, thank you so much for joining us.
CHATFIELD: You're welcome.
STEVENS: OK. Let's turn now to -- to what the outlook is like for the people, for the victims in California.
STEVENS: We're following a surge in violence across the Israel-Gaza border, Israel carried out of wave of airstrikes on Monday after militants fired more than 300 rockets into Israeli territory. Palestinian health officials say the airstrikes killed at least three people.
While the Israeli authorities say the Hamas rockets have left many injured. CNN's Oren Liebermann has the report.
OREN LIEBERMANN, CNN CORRESPONDENT: It has been a very volatile night on both sides of the Israel-Gaza border, throughout Monday night, as we see a sharp escalation in hostilities between Israeli security forces and Palestinian militant groups inside Gaza.
Israel said the militant groups fired more than 300 rockets from Gaza into Israel, marking one of the most volatile days, the highest number of rockets we've seen fired in 24 hours, since we have seen the end of the 2014 Gaza War.
Israel has carried out dozens of airstrikes across Gaza, at first they targeted Hamas military targets, Islamic Jihad military targets and then expanding the scope to include al-Aqsa TV, Hamas' news channel, as well as residential buildings and a hotel.
This starts on Sunday evening when Israeli special forces raid inside Gaza is discovered by Hamas militants, according to a statement from the al-Qassam brigade, Hamas's military wing. In the exchange of the hostilities that followed, one Israeli officer was killed, a high ranking lt. colonel and a Hamas military commander and six other Palestinians.
That led to what we're seeing now. The rockets, the al-Qassam brigade and other Palestinian military groups have said that's a response to the special forces operation that happened in Gaza. The Israeli military saying little about that operation.
To restore calm, Egypt and the United Nations have stepped in, trying to get both sides back from the brink. We have seen these efforts before with both Egypt and the U.N. stepping in to cut off these sharp escalations.
Will it happen again?
That's very difficult at this point. We see continued rocket fire and Israeli airstrikes in Gaza. It could be a long night and early morning in and around Gaza -- Oren Liebermann, CNN, Israel.
STEVENS: A sell-off on Wall Street is extending into some financial markets in the Asia-Pacific region. A quick look at the numbers, check out the Nikkei trending down by a little more than 2 percent. The Hang Seng index has been bouncing around the break even mark. Following Shanghai rather than New York, Shanghai up almost 1 percent, the KOSPI in Seoul down by about 0.5 percent.
New York was down, the Dow plunging more than 600 points, that's 2.3 percent on Monday. The concerns there particularly at the moment, tech stock earnings and the stronger U.S. dollar, corporate profits under scrutiny in the U.S. as is the strength of the U.S. economy.
Has it peaked?
That's one of the questions driving fears in the U.S. Let's turn to Tim Harcourt. He's professor of economics at the
University of South Wales. He's also known as the airport economist.
Good to see you again, Tim. Thanks for joining us.
Tim, you're in Sydney. Let's start with this wall of worriers. If you look at --
STEVENS: -- we have now got tech earnings and the strength of the economy. It is the trade war, of course. It is high-ish oil prices at the moment. The list goes on and on.
My question is, what is your outlook for all this for the Asian markets in the near term?
Tim, can you hear me?
OK. All right. I do apologize about that. Having a few communication problems as you can see. We will try to get Tim back a little later in the show.
Let's move on now, experts say that North Korea is being deceptive about its nuclear program. Coming up, the new report explaining what is shown in new satellite images.
Plus the heir to the British throne has no intention of slowing down. Prince Charles is turning 70. CNN will bring you exclusive access to his royal tour of West Africa -- that's coming up a little later.
STEVENS: Let's get back to our interview with Tim Harcourt, professor of economics at the University of New South Wales. Tim is also known as the airport economist. He joins us live from Sydney.
Apologies, Tim, for not getting the coms quite right. Welcome to the show.
TIM HARCOURT, UNIVERSITY OF NEW SOUTH WALES: Thanks, Tim. Good to be on with you.
STEVENS: All right. As I was saying, which you probably didn't hear me. Let's just talk about the wall of worry involving the markets. You've got earnings in the U.S. and the general state of U.S. economy. Looming high interest rates, oil prices high, a trade war, et cetera.
What is your outlook, given all of these worries for the Asia markets in the near term? HARCOURT: Well, the Asian markets have performed relatively well over the past three days, given expectations. I expected with the trade war there be would be a lot more retaliation.
But I think when Xi Jinping had his import expo in Shanghai, I think he signaled to the rest of the world, if not in the United States, that China was an open economy and it is open for business. And in some ways, I think China is seeing the saber rattling from Trump in the United States as a possibility to fill --
HARCOURT: -- a vacuum in international leadership in terms of institutions. That wasn't expected. And that's why the markets didn't tank in the wider market forecast as expected.
STEVENS: So there's perhaps a bit of optimism that China can emerge from this trade war in a relatively fair position.
How much as far as the sheer economic impact of the trade war between the world's two biggest economies, how much has been baked into the Asian markets?
There will be collateral damage to the Asian markets, not to mention China itself.
How much have investors priced into that?
HARCOURT: Well, I think you're right. China once has been a nation of shippers, exporting and a nation of shoppers in terms of consumption and investment. There's been some evidence that Japan has been already -- already hit in terms of global supply chains because so many Japanese companies themselves provide the trade routes and the basis around the Asia Pacific. So they're probably the ones harmed first.
But Japanese markets did factor that in, as did Hong Kong markets. I think to some extent people see protectionism as putting rocks in your own harbor. So most of the damage will be done to the United States economy itself.
Even in the midterms, you saw some of those states like Wisconsin and Michigan, some of the Midwest states already seeing some adverse impact of protectionism, backfiring on the U.S. itself. And I think that's been factored in, in terms of the Asian markets as well.
STEVENS: Are you relatively serene about the outlook for the Chinese economy regarding continued trade war and also what we are seeing as a separate slowdown in the Chinese economy?
Are you confident that it could weather both these storms without a hard landing?
HARCOURT: I think 20 years ago as a union official, I went to China. I went to a factory.
I said, do you have workers' compensation in China?
It got translated and it came back to me, they said, no, if the workers break anything, they don't have to compensate us. When I go to the same factories today in Shenzhen, they say that they're losing workers to white collar, air conditioned office jobs, so that's why they're playing a very careful game with wage and price inflation and the currency.
So I think China knows they have to manage that transition because they don't want to be caught with wage and price inflation and a real effective exchange rate harming their own economy. So for that reason, I think the effect of this for some time now so they won't get that hard landing that could really frighten them.
STEVENS: OK, Tim, we'll have to leave it there. As always, good to talk to you. Thanks for joining us, Tim Harcourt is at the University of New South Wales --
HARCOURT: -- Thanks for having me, Andrew.
STEVENS: -- airport economist. Cheers.
OK. U.S. President Trump participated in marking a century since the end of World War I this weekend in Paris. His trip to France was meant to be solemn. But it also exposed strained ties between the U.S. and its allies.
As CNN's Jeff Zeleny reports, President Trump is back in the U.S. and he's back on Twitter.
JEFF ZELENY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): President Trump out of sight at the White House on the federal holiday observing Veterans Day. But airing one grievance after another on Twitter.
He's injecting himself squarely into the Florida recount, trying to tip the scales to Republican candidates for Senate and governor, who were locked in razor-thin races.
"The Florida election should be called in favor of Rick Scott and Ron DeSantis. Large numbers of new ballots showed up out of nowhere and many ballots are missing or forged," he tweeted.
"An honest vote count is no longer possible. Ballots massively infected. Must go with election night."
But there's no evidence to back up those claims. Florida law requires a recount in such close elections. And it's an odd message for veterans, considering votes from troops serving overseas have not yet all been counted. Their ballots are allowed to arrive after election day.
After a rocky weekend visit to Paris marking the centennial of the end of World War I ...
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: We are gathered together at this hallowed resting place to pay tribute to the brave Americans who gave their last breath in that mighty struggle.
ZELENY: -- the president taking aim tonight at U.S. allies in a series of tweets.
"Never easy bringing up the fact that the U.S. must be treated fairly, which it hasn't on both military and trade. It is and always has been ridiculously unfair to the United States. It is time that these very rich countries either pay the United States for its great military protection or protect themselves."
It was likely a response to French President Emmanuel Macron, who confronted Trump for calling himself a nationalist, not --
ZELENY (voice-over): -- a globalist.
EMMANUEL MACRON, FRENCH PRESIDENT (through translator): Patriotism is the exact opposite of nationalism. Nationalism is a betrayal of patriotism. By saying, "Our interests first, who cares about the others," we erase what a nation holds dearest, what gives it life, what makes it great and what is essential: its moral values.
ZELENY: Trump's whirlwind visit to Paris doing less to bolster the transatlantic partnership than to expose its cracks. A far different reception than his visit for the 2017 Bastille Day parade, when he and Macron radiated in the glow of their newfound friendship.
On this trip, the fallout from Trump's "America first" world view on full display, with the president arriving alone Sunday at the Arc de Triomphe. He was widely criticized for missing a ceremony at an American military cemetery during a rain storm.
The White House insisted the visit was scrapped for safety reasons, because the weather was too bad to fly.
The next day, the president hinted at his displeasure with the rain, while addressing a handful of living World War I veterans.
TRUMP: You look so comfortable up there under shelter as we're getting drenched. You're very smart people.
ZELENY: Meanwhile, the president also slamming California officials for the deadly wildfires devastating the state.
Before ultimately mentioning the victims hours later, he first tweeted this threat: "There is no reason for these massive, deadly and costly forest fires in California, except that forest management is so poor. Remedy now or no more federal payments."
So even as President Trump pays close attention to that Florida recount, even sending out a fundraising appeal under the subject line "Stolen," there's another investigation the White House is carefully following as well.
Special counsel Robert Mueller's team worked throughout this federal holiday, clearly entering a new phase of the Russia investigation. That's one the White House and this president following so closely -- Jeff Zeleny, CNN the White House.
STEVENS: Still ahead on CNN NEWSROOM, Britain's prime ministers eyes what she calls an end game for Brexit. But not one at any cost. The next step in the U.K.'s messy divorce from the E.U. is ahead.
STEVENS: Well, Theresa May is trying to reassure the U.K. that talks to leave the European Union are nearing an end. The British prime minister addressed the annual Lord Mayor's Banquet on Monday right in London ahead of a major cabinet meeting on Tuesday and it was all about Brexit.
(BEGIN VIDEO CLIP)
THERESA MAY, PRIME MINISTER OF THE UNITED KINGDOM: Negotiations for our departure are now in the end game and we are working extremely hard through the night to make progress on the remaining issues in the withdrawal agreement which are significant. Both sides want to reach an agreement. But what we are negotiating is immense difficult and I do not shy away from that.
(END VIDEO CLIP)
STEVENS: Well, Mrs. May also said that there will not be an agreement, "Any cost". Steven Erlanger is chief diplomatic correspondent for the New York Times. He joins us by Skype from Brussels. Steven, thanks so much for joining us on the show. Let's start with Mrs. -- Ms. May's definition of end game, what do you read by that phrase?
STEVEN ERLANGER, CHIEF DIPLOMATIC CORRESPONDENT, THE NEW YORK TIMES: Well, they're hoping to have a summit sometime in November and not extended into December. They negotiated last night until quarter to 3:00 in the morning. They didn't come up with a solution. The end game is it's 95 percent done but the five percent left is really important because it's really the Irish border problem. It's been a problem from the beginning. It was underestimated by Brussels.
It was probably underestimated by London also. And in the end, they're trying to do almost impossibly contradictory things which is to create some sort of customs border between the E.U. which is Ireland and the -- and the U.K. which is Ulster on the same island. And at the same time have no border between Ulster and Ireland and it's been a (INAUDIBLE) difficult problem. So they're trying to fudge it by having a temporary customs union for a while until they could figure out something better trying to fudge the issue as best as they can and push it down the road. But it's very, very difficult.
STEVENS: But we've heard also from Mrs. May saying as you point out, so she described the issues as immensely difficult not directly referring to the border question, but that obviously is the one which is causing the problems. My question to you though is given these difficulties, is there any appetite in Brussels for any compromise at all on the -- on Britain over Brexit given what's gone before?
ERLANGER: Well, I think Brussels feel it has compromise quite considerably to be honest. It's all, you know, it's a -- it's a negotiation. The problem is, you know, for Britain, it's a religion about having no separation or is a little separation as possible between parts of the United Kingdom, one of the four parts of the United Kingdom. But for Brussels, it's a -- it's a formal border. I mean it's a border between a single market and the rest of the world.
It's a border for regulation. It's a border for animal control, for pharmaceutical control, for smuggling. So it's -- it is a serious question and they're trying to kind of fudge it. The problem for Mrs. May is that the fudge is incredibly unpopular in her own party because it looks like it ties the U.K. to the European Union for many years to come and this is the problem with Brexit. Is it a real exit? Is it a halfway exit? Will her own party support what she comes up with or related in the end fail in parliament causing quite along --
STEVENS: I want to ask you about that. I mean that's what -- we're obviously seeing the people who want to leave the E.U., the Brexiters are saying called vocally against this Theresa May plan. We're also seeing the remainders people like (INAUDIBLE) also against the plan. On both sides of the divide within the (INAUDIBLE) is strong opposition. So if you were a betting man, what are the chances that Theresa May can actually pull off some sort of -- pull off the agreement that she wants?
ERLANGER: Well, I still think there are more like 70-30 because in the end the prospect of no deal is so horrifying for everybody. It would be a real mess. I mean I think the real negotiation once they get pass this and I think they will get -- I think parliament will OK frankly.
[02:35:01] But once they get pass this then there's going to be another two years of negotiation on the future relationship which is going to be very, very difficult and what worries me is the so-called cliff edge at the end of that period when there isn't a free trade deal agreed and Britain still is stuck in this semi customs union. That's the problem.
STEVENS: Just on that point about the unpalatable alternative Britain crashing out of the -- of the E.U., Britain obviously if we can believe the scare stories of no drugs and (INAUDIBLE) and food shortages, is there the same sort of imperative on the European side to reach a deal or do they -- are they in more position to say, well, if you don't come to the party, we are prepared to exit a hard -- a hard Brexit? ERLANGER: I don't think anyone wants a hard Brexit. I mean really
because it's a terrible cost to both sides. I think people find to understand Brexit is a cause. It's not a benefit. It will be a benefit in 10 years' time, but it's a cause for everybody. So I think both sides want to minimize the cause. I think the cause is bigger for Britain of a total failure that is for the E.U. But it's significant and it would be a diplomatic failure on the part of the E.U. also, so people would like to avoid it.
I mean in Britain, you have the sense that people think, oh, there's this monster called Brussels which is very difficult and but the E.U. is a (INAUDIBLE) legal system. British politics works differently. I mean the politicians like to talk and like to debate. They don't really grapple with details very well. Now, Theresa May has been doing that. The details are devilish. And frankly, people who have all kinds of ideological notions about what Britain opt to be haven't really come to terms with how difficult it is to unwind more than 40 years of completely intimate relations. It's really hard.
STEVENS: And the clock certainly is ticking. Steven, thanks so much for joining us. Steven Erlanger with the New York Times in Brussels.
ERLANGER: Thank you.
STEVENS: News satellite images suggest that North Korea is moving ahead with its ballistic missile program. That's despite U.S. President Donald Trump's assurances that Pyongyang is no longer a nuclear threat. Researchers at the Center for Strategic and International Studies identified 13 of an estimated 20 hidden missile operating bases the North has not reported. Well, the reports says the bases could be used for all classes of ballistic missiles including intercontinental ballistic missiles, ICBM.
Let's go now to Will Ripley who's following the story very closely as always. Will, just tell us what you know about these sites.
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: So the images that I'm about to show you, Andrew, let's be very clear. U.S. intelligence knows about this. They probably know a lot more than this commercial satellite imagery that we're just now hearing about that has been called by some news organizations a great deception on the part of the North Koreans. But now, a number of Korea watchers, even the South Korean government are challenging that notion that North Korea is deceiving anybody because if the United States knew about the existence of all these missile sites.
And yet, President Trump keeps talking about the nuclear threat from North Korea being neutralized, who's the one who's actually doing the deceiving? All right. So as you ponder that question, let me show you what the Center for Strategic and International Studies has uncovered. They've analyze a number of different missile sites. More than a dozen around North Korea. This one here you can see kind of nestled in the mountains. This is the Sakkanmol Missile Operating Base.
This satellite image taken in March of this year. We can zoom a little closer. You can actually see what they did as they kind of broke down these facilities where they say that work is actually been done. You can see entrances like this one here entrance number three, entrance number four to these underground tunnels. These are tunnels where North Korea is believed to be housing mobile missile launchers that in the event of a nuclear confrontation, they could roll out onto the road and then drive to a site away from this launch area a site where they would presumably launch missiles by surprise.
That's the type of technology that North Korea has developed, this mobile missile technology that allows them to roll out a mobile missile launcher and within about an hour avoid the proving eyes of spy satellites and launch a nuclear strike if necessary. You can see they've added infrastructures some of these sites as well. Let's go to the next image. You can see as well buildings on the site if we can change the image.
Yes, you can see they've built up various support administrative buildings, barracks, headquarters for the people who are believed to be working here, so the existence of this not a surprise to U.S. intelligence. Even though President Trump has been saying since his summit in Singapore in June 12th with North Korean leader Kim Jong-un that, you know, because of his diplomacy, North Korea is no longer a nuclear threat.
Clearly, the images behind this show that North Korea does continue to have a significant number of missile bases after ready in the event of a military confrontation. But that's not North Korea being deceptive according to the South Korean government and many analysts who say why wouldn't they maintain and continue to operate and develop these facilities especially given the fact the denuclearization talks with the U.S. have ground to a halt over this issue of economic sanctions.
[02:40:15] The U.S. says that because North Korea has things like this, they don't deserve the kind of economic relief that North Korea says needs to happen on a step by step incremental basis before they're even willing to consider giving up the nuclear weapons. Obviously, the United States has a much hardliner due here. But again, it really goes back to the question here. Is North Korea being deceptive or are they simply maintaining a program that they have no incentive at the moment to give up, Andrew.
STEVENS: A program that they've never written on the dotted lines that they would give up. Will, thank you so much for that. Will Ripley joining us with analysis on those new sites which have been spotted in North Korea. Now, Saudi Arabia makes a major announcement on oil production. What it could mean to feel prices around the globe? That's next right here on CNN NEWSROOM.
STEVENS: -- Defterios. Welcome back. Now, a major selloff on Wall Street helped drive down stocks in Tokyo today. Check on the latest number shows the Nikkei closing down more than two percent. Hong Kong's Hang Seng Index as you see they're up impulsive territory towards the end of the trading day. The Shanghai Composite is the lone winner that's up about one percent as (INAUDIBLE) the Chinese market tend to go their own way.
And as you see there the Seoul market is down just about a half of one percent. Meanwhile, in New York, the Dow is down more than 600 points with 2.3 percent on Monday. Investors are concerned about tech stocks and the strong U.S. dollar. Meanwhile, Saudi Arabia's announcement that it will cut oil productions also have an impact on financial markets. Let's go to CNN's John Defterios. He joins us live from Abu Dhabi where industry leaders are gathering.
John, good to have you on the show. Donald Trump is also being tweeting about the fact that oil prices going down is a good thing. So all in all, it's moving in the right direction. It is like at home, John?
[02:44:46] JOHN DEFTERIOS, CNN INTERNATIONAL CORRESPONDENT: Well, in fact, Andrew, we have a deep (INAUDIBLE) between two of the largest oil producers in the world, that being the United States and Saudi Arabia. Donald Trump is pushing for lower oil prices right now and Saudi Arabia saying that this is actually now good for investment over the longer term. They like to see civility around $70.00 a barrel. They had a bear market in October. They had a 20 percent correction in oil prices. So, the Saudi thinking was, with midterm elections out of the way, perhaps, Donald Trump would stop criticizing them on Twitter, and we see it reappearing again.
So, Saudi Arabia and Russia added about 1-1/2 million barrels a day between June and October because of the threat of Iranian sanctions here to keep prices stable.
Now with the Iranian sanctions out of the way and the midterm elections, we see oil prices dropping. So, Saudi Arabia suggests that they're going to take a half million barrels a day off the market themselves.
Overall, OPEC and non-OPEC players are probably take a million barrels after the market in December. This is what the Khalid Al-FALIH, the energy minister told me on a panel yesterday declaring that news.
(BEGIN VIDEO CLIP)
KHALID AL-FALIH, MINISTER OF ENERGY, INDUSTRY AND MINERAL RESOURCES, SAUDI ARABIA: The consensus amongst all members, is that we got to do what it takes to balance the markets. And if that means -- if that means trimming supply by a million, we will trim it. When we needed to increase a million, we increase over a million between June and now. And that has achieved the purpose.
Because otherwise, prices would have been way into three-digit territory. And that would be very, very uncomfortable for us.
(END VIDEO CLIP)
DEFTERIOS: He was suggesting $100 a barrel by the end of the year. If OPEC did not put them oil on the market, now, they want to take that off, Andrew. A senior source with an OPEC said, they'll probably target to take out of the market 1.2 barrels a day at the meeting in December, depending how Donald Trump responds.
This is about the sixth attack since April on Twitter, and on the phone leaning on its allies, Saudi Arabia in the Middle East.
ANDREW STEVENS, CNN INTERNATIONAL ANCHOR: Well, given this divergence of opinion on what production should be, what is it likely to mean for prices, John?
DEFTERIOS: You know, this boils down to, Andrew, that could be blunt here. Mismanagement of the Iranian portfolio. You know, Donald Trump, over the last six months has suggested by the end of 2018, he would take exports for Iran down to zero.
Well, that didn't happen. They gave eight exemptions. Eight country exemptions to Iran, which means their exports are hovering about 1.4, 1.5 million barrels a day. So, it's created a glut in a hurry. And this is why the Saudis have this position.
Now, Bob Dudley, the CEO of BP was suggesting, when we saw oil prices go above $85 a barrel in October, they were overheated. And he said, they were ripe for a correction. Let's listen to what he had to say.
(BEGIN VIDEO CLIP)
BOB DUDLEY, CHIEF EXECUTIVE OFFICER, BP: Well, it went -- it went up so fast. It seemed to be in response to the sanctions. I mean, my view was, I think President Trump could see $100 oil. So he's granted the exemptions. And that's what I didn't know, of course. But I thought, maybe there'd be some, some exemptions. And maybe bit more than I expected coming out of it.
But I just felt very uncomfortable, very fast when I got up to $85.00 a barrel.
(END VIDEO CLIP)
DEFTERIOS: So, Andrew what we have right now is a tug of war with the U.S. pressuring for prices below $70 on the international benchmark. And Saudi Arabia and Russia suggested they'd like some stability.
So, in this band of 60 or 70 is something that's predictable depending on how the geopolitics weigh in on both sides.
STEVENS: So, 60 or 70, it is a desirable outcome. Just sort of bigger picture about OPEC itself, John. I mean, how is the cartel surviving through this?
Is it -- I mean, there has been talk that can it survive -- is it -- is this -- is it's time passed now with so many alternative sources of oil and particularly fracking obviously U.S. production going through the roof. Is the future of OPEC still ashore?
DEFTERIOS: Well, it -- there's some different opinions and this came to a boil last Friday. With the Wall Street Journal report suggesting that a think tank in Saudi Arabia called (INAUDIBLE) was running different methodology here. What would happen to the market of OPEC was out of the picture. Some are suggesting that this gigantic exhibition that maybe Saudi Arabia did that intentionally. Because they've been the buffer, Andrew. Adding to oil when they needed it to stabilize the market. And then, taking it off. Trying to keep this band of $60 to $70 a barrel.
Obviously, this is not something Donald Trump wants, but Minister Al- Falih on that panel when I directly said, "Will you stand up and say you're not trying to break up OPEC?" He said, "Categorically, we're not." The think tank was just looking at many options for the future.
But perhaps, there was a political tense here saying you're always criticizing OPEC Donald Trump. Perhaps, it would be worse with OPEC out of the picture with the 14 members within OPEC. And this, not OPEC agreement which now includes 25.
STEVENS: I'm sure, Mr. Trump will be able to find a positive spin on that, nonetheless. John, as always. Good to talk to you, John Defterios.
DEFTERIOS: (INAUDIBLE) idiot editor.
[02:49:51] STEVENS: OK. I'm going to take a short break. When we come back, getting a few cycling tips. Britain's Prince Charles is picking up the pace as he turns 70 years old. He gave CNN exclusive access to his latest royal tour.
STEVENS: Welcome back. Amnesty International has stripped Aung San Suu Kyi of its highest honor. The rights group says it's revoking the ambassador of conscience award given to Myanmar's civilian leader in 2009 over her "apparent indifference".
The atrocities committed by Myanmar's political -- excuse me, Myanmar's military against Rohingya Muslims. Amnesty secretary- general, says Suu Kyi no longer represents a symbol of hope, courage, and the undying defense of human rights.
Britain's heir to the throne marks a milestone birthday on Wednesday. Prince Charles will be turning 70 years old. But at the time when most people are winding down their working life, the prince is picking up the pace of it. Our Max Foster gained exclusive access to his most recent royal tour.
MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: At 70, most Britons are settling into their retirement. But the Prince of Wales is taking on more than ever. He's come to West Africa to help boost U.K. ties to the region, and to find out more about local issues such as cocoa farming.
British forces are also helping train Nigerian forces in the battle against Boko Haram. So, the prince has come aboard this ship to try to emphasize those military ties. How's it going to you? There was source interesting in the heat.
PRINCE CHARLES, WALES: But (INAUDIBLE), you're not used to it. But to otherwise, they have an early sad thing to me is that not being able to go further into elephants of Nigeria, which is such a vast country, and obviously, there is so many other states.
And interesting areas of I know, many are facing different challenges, other option to serve into the pity not bring him to do that. But otherwise, it's always moms coming here because people are so friendly, and always some treat by the -- by the way. And, there are so many of this young, for instance, of developing really interesting ideas that they can turn into businesses and things like that.
Helping to tackle some of the real issues we face to cure now the environment. Ways to business, what else? They are genius character.
FOSTER: Well, thank you for having us, and happy birthday.
PRINCE CHARLES: Are you great?
FOSTER: Security concerns meant the Prince of Wales wasn't able to travel to all the parts of Nigeria that he was hoping to see. Traditional regional rulers had to come to Abuja to meet him, instead.
SANUSI LAMIDO SANUSI, EMIR OF KANO: He's been talking about climate change. His particular at demographic implosions. He's been talking about town planning. We do not make the connection between these three issues. For example, as all the coffee's that we see.
[02:55:01] FOSTER: Charles, does spend time thinking about what sort of King he's going to be. Particularly, what he will and he won't be able to say according to a senior royal source. But he's more focused now on his current role, where he has the freedom to express himself on issues that he cares about. Such as youth unemployment, which is right here.
PRINCE CHARLES: Over the years, I have had the great pleasure of meeting some of those people of Nigerian heritage. Who also call Britain home. Some I have met through my Prince's Trust which I started some 42 years ago to help young people in difficult and disadvantaged situations to turn their lives around.
FOSTER: Well, just as Charles is going to be a King, so, Camilla is going to be Queen and she's constantly having to think about her position going forward too.
How are you?
CAMILLA, DUCHESS OF CORNWALL: Hot. How are you?
FOSTER: Very good. It's nice to see you.
CAMILLA: Very hot there.
FOSTER: Are you enjoying your visit? CAMILLA: Yes, it's lovely. It's really nice. Everywhere we've had such a warm welcome.
CAMILLA: But it has been a bit on the hot side.
FOSTER: Enjoy your lunch.
It's not clear whether she'll use the title of queen. But for now, she is dedicating her time to supporting the monarchy, and on issues that she cares about most such as child literacy.
But Prince of Wales and Duchess of Cornwall are busier than ever despite the fact that they're beyond the normal U.K. retirement age. And their workload is only increasing. Max Foster, to CNN, on the Royal flight to Abuja.
STEVENS: Well, the biggest name in comic books has passed away. Stan Lee, the man who brought us some of the most iconic superheroes died Monday at the age of 95. He began his career in 1939.
Eventually creating such superheroes as Spider-Man, The Hulk, and the X-Men. While his comics eventually led to T.V. series and blockbuster movies. And the stars of some of those movies bid Stanley farewell. Iron Man star Robert Downey Jr. writes, "I owe it all to you. Rest in peace, Stan."
Hugh Jackman, who plays Wolverine from the X-Men, tweets, "We've lost a creative genius. Stan Lee was a pioneering force in the superhero universe. I'm proud to have been a small part of his legacy."
And Star-Lord from Guardians of the Galaxy, Chris Pratt, writes, "Thanks for everything, Stanley. What a life. So, well lived."
You're watching CNN NEWSROOM. I'm Andrew Stevens. I'll be back with more news right after this short break.