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Death Toll in California Fires Rise to 44; Tech Stocks Pull Down Dow; Theresa May Optimistic of Brexit Talks. Aired 3-4a ET

Aired November 13, 2018 - 03:00   ET



[03:00:00] ANDREW STEVENS, CNN HOST: You're watching CNN Newsroom. I'm Andrew Stevens live in Hong Kong.

Ahead this hour, Israel and Hamas trade more rocket fire along the Gaza border, stoking fears that the two sides may be on the brink of another war.

Plus, the wildfire in Northern California is now the deadliest in the state's history. And there's little outright relief in sight.

Also ahead, another rough day on Wall Street, falling tech stocks and oil prices sending markets tumbling.

We start with a new wave of violence across the Israel-Gaza border. Palestinian health officials say five people have been killed by Israeli air strikes. Israel says it hit targets in Gaza after militants fired around 400 rockets and mortars at Israel. Authorities say the rockets killed one person in Israel.

Let's get the latest now with CNN's Oren Liebermann is near the border at Sderot in Israel. And Oren, just tell us what's going on there at the moment.

OREN LIEBERMANN, CNN CORRESPONDENT: Andrew, although it looks quiet behind us, that look is very much deceptive. We hear drones overhead. We hear what sounds like an Israeli fighter jet overhead. And since the overnight hours, we spent the night in the city of Ashkelon. We heard a number of red alerts going off in the city, as well as Iron Dome aerial defense interceptions of rockets fired from Gaza.

So, what started here yesterday afternoon, perhaps a little but before that has very much continued. Israeli military saying some 400 rockets have been fired from Gaza towards Israel. Some hundreds of those or so according to the Israeli military have been intercepted by Israel's Iron Dome aerial defense system but not all. Even if many of those which weren't intercepted have landed in open areas and some have landed in the city of Ashkelon and other residential areas.

We've heard from the Israeli military and emergency response services that one person was killed in Israel by rocket fire.

To give you a perspective on that context, that's the first time that someone has been killed in Israel by rocket fire since the end of the 2014 war.

Meanwhile, Israel has carried out a series of air strikes across Gaza, largely against military targets of Hamas and Palestinian Islamic jihad. According to the Israeli ministry according to the Palestinian ministry of health five Palestinians have been killed in those air strikes.

Israel has also targeted larger targets, what they say as strategic assets of Hamas including Al-Aqsa TV, a news channel owned by Hamas that Israel has longed accused of incitement. Israel has also targeted a number of other buildings, Hamas says these are residential buildings and a hotel, Israel says these are strategic assets of Hamas.

So, Andrew, what began here a few hours ago or less than 24 hours ago very much continues at this point. Red alerts continue to sound that indicates or mortar fire and Israeli air strikes continue at this time and during these hours. Andrew?

STEVENS: There has been a comment that this escalation of violence between the two sides is taking Hamas and Israel back to the brink of yet another war. Oren, in your opinion, do you sense that that is now a possibility?

LIEBERMANN: It is very much a possibility. But let's also point out that Egypt and the United Nations who have worked over the past few months during escalation to restore or bring about a cessation of hostilities are once again working between Israel, working between Gaza and Hamas to try to bring about an end to the rocket fire and end to the air strikes even those efforts haven't been successful they very much at this point continue.

And Andrew, let me point a difference perspective here. Certainly, you can look at this say and say 400 rockets fired, more than 100 strikes inside Gaza. It feels like we're on the brink of a war. And yet the progression here even it has been methodical.

The rockets that have been fired have stayed within the Gaza periphery. So, they have stayed within a short range of Gaza. Israeli targets have mostly been Hamas and Palestinian Islamic jihad military targets.

And despite more than 500 rockets fired in air strikes the casualty numbers at this point remain low. Five killed in Gaza, one killed in Israel. So, it does seem like there is an effort on restraint here.

Both sides have said in the past, Andrew that they don't want a war. That both sides do feel an obligation to respond the question when do those responses stop, and can Egypt and the U.N. step in before this really does get to the point of 2014 in a wider campaign a war?

STEVENS: Oren Liebermann in Sderot, Israel, thank you very much for that.

California's largest wildfire is now also its deadliest. Forty-four people are now confirmed dead in catastrophic fires burning it both ends of the state. All but two of the victims were killed in the so- called Camp Fire in Northern California.

[03:04:53] The blaze obliterated the town of Paradise forcing panicked residents to flee as flames engulfed their homes and their cars.

CNN's Nick Valencia reports from what's left of the town.


UNIDENTIFIED FEMALE: It's OK, mama. It's OK. Please, please drive. Just please, drive.

NICK VALENCIA, CNN CORRESPONDENT: Tonight, the most destructive fire in California raging on.

Most people in Paradise already in trouble before they realize what was happening.

UNIDENTIFIED MALE: Baby, it will be all right.

VALENCIA: This father finding the resolve to calmly sing to his daughter while the walls of flames close in.


UNIDENTIFIED FEMALE: What's going to happen when we get fire.

UNIDENTIFIED MALE: We're not going to catch on fire, OK. We're going to stay away from it.

VALENCIA: At its peak, the Camp Fire burned a football field every three seconds, even with emergency alerts sent to registered residents cell phones and land lines, Paradise had only a short time to evacuate from the inferno.

MAYOR JODY JONES, PARADISE, CALIFORNIA: We did have an evacuation plan in place. We did implement it. It worked the way it was supposed to work. We just -- we just never anticipated having to evacuate all zones all at the same time.

VALENCIA: And it's likely many could not get out in time.

KORY HONEA, SHERIFF, BUTTE COUNTY, CALIFORNIA: Currently, 228 individuals who have been determined to be unaccounted for.

VALENCIA: About 500 miles to the south, firefighters worked to contain a blaze on the bluffs of multimillion communities. The flames destroying homes belonging to celebrities like Miley Cyrus, Neil Young, and Gerard Butler.

GERARD BUTLER, ACTOR: Welcome to my home in Malibu.

VALENCIA: The Woolsey Fire has already destroyed nearly 200 homes. The flames threatening to destroy another 50,000.

GOV. JERRY BROWN, (D) SOUTH CAROLINA: This is not the new normal. This is new abnormal. VALENCIA: California's Governor Jerry Brown blaming climate change.

BOWN: The chickens are coming home to roost, this is real here.

VALENCIA: Together, the fires have claimed the lives of more than 30 people.


VALENCIA: In the last 48 hours, more than 10,000 acres have burned. As for those 200 that remain unaccounted for, the sheriff here in Butte County says it's going to take weeks for them to sift through all of this debris and identify any remains they may find of those who weren't able to make it out live.

Nick Valencia, CNN, paradise, California.

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. And she now joins us on the line from Truckee in California.

Brynn, welcome to the show. And thanks so much for joining us here. I know we've got some video that was shot from your car while you were making your escape. Can you just talk us through the experience you had in getting to safety?

BRYNN CHATFIELD, RESIDENT, PARADISE, CALIFORNIA: 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. And 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. We were completely -- completely shocked that the fires are--


STEVENS: I'm just looking at the video here that you shot. I mean, it looks like you're almost in a hopeless position driving through flames on both sides of the roads, thick smoke. Just describe what it's like being in the car and how you were feeling 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 that our wheels wouldn't melt. We hope that fire wouldn't overtake us as you see it on the video it gets really dark and we can't even see in front of us as we're going. And so, you pray and kept going. And we're so thankful to see that the blue skies at the end.

STEVENS: It's quite remarkable seeing you sort of emotion this sort of -- this hell place into what looks a relatively sort of calm area outside the fire. Now I understand your -- two of your children and your mother were in the car behind you. How have your children dealt with this? What did they tell you about their experience? CHATFIELD: That actually is a little different. We had loaned our car

to our friend Sarah and her two kids, and they were in the car behind us. And that was really devastating for us to know that those children were experiencing that. Thousands and thousands of children and families experienced a drive very similar to that and even worse.

[03:10:03] STEVENS: Yes. I can only imagine. The question on many people's minds I'm sure is why didn't you or couldn't you leave earlier or was the 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 a.m. We saw evacuation zones starting to be evacuated about 8, 8.15 and so, most people in Paradise were just kind of watching the mandatory evacuation zone and the fire caught fast and it wiped out Paradise fast.

So, I think people were trying to get out but there's 30,000 people trying to get out on just a few roads. The roads were heavily trafficked but the drivers were 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 there as well. I mean, how are you coping with that?

CHATFIELD: Well, we're doing really well. But yes, the city that I love that I chose to bring my family back to and raise my children, it's 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 a concern from those from all over the world. But Paradise is going to need a lot of help. And prayers and -- if people can donate to (Inaudible) or Good Fund Me. 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 incredibly emotional time and a very difficult time for not just you but as you say the survivors from Paradise. Our hearts are with you and hopefully there will be a rebuilding and life will get back to normal in Paradise. Brynn Chatfield, thanks so much for joining us.

Now meteorologist Pedram Javaheri is following the conditions in California. Pedram, how is it looking for the -- the fire is still raging, not much of those fires is contained. What's the immediate outlook?

PEDRAM JAVAHERI, CNN METEOROLOGIST: The immediate outlook for Northern California, Andrew, is actually better news here. We're going to begin to see the winds die down come Tuesday afternoon, that's finally a change for the better. We expect to see the containment numbers go up as a result as well. But down here in Southern California, unfortunately, it's an entirely

different story. And the winds there on this side is going to peak come Tuesday afternoon. And more on that momentarily.

But just so we get here. We had the hottest July on record. The hottest month observed on record for any month across the state of California. This was earlier in the year. And of course, you take a look at cities like Paradise communities like Paradise where the last time they saw even more than 12 millimeters of rainfall we had to go back to the 16th of April. In fact, the second longest stretch of dry weather over 120 days there without a single drop of rain.

And in fact, June, July, August, and September nothing fell from the skies across this region. So, it really speaks to how dry the area had been. But you take a look Tuesday there is some improving conditions across that region. Now just dropped to an elevated risk as opposed to critical or extreme which is what had been in place for Northern California.

The humidity is still pretty low, but the winds have died down and that's a significant player in the line of firefighters to get the upper hand on these flames.

Southern California it's not going to happen on Tuesday. And if you take a look, we do have critical to extreme risk in place here for not only powerful winds but humidity still are around 3 to 4 percent across this region, observe wind gust at the past 24 hours of upwards of almost 140 kilometers per hour.

So, we're talking about hurricane force gust here amid these flames. And in fact, spot fires have been a major concern across this region as these gusty winds are picking up embers, they're depositing them downstream and initially beginning additional fires across this area which also takes the firefighters off their main duties, and of course creates additional work for them.

That's a concern, especially when the winds are expected to once again remain in this category of 80 to over 100 kilometers per hour.

Now notice the forecast does want to stay dry, does want to stay pretty warm across portions of Southern California. To the north we do have 30 percent containment. To the south, same story. I expect this number to the north to begin to rise rather quickly the next couple of days. But I think it will take at least another few days across Southern California to see improving conditions.

[03:14:59] And Andrew, as the high pressure responsible begins to move away a potential storm in the works there for early next week. So we'll watch that careful here and see what comes of it because anything will help and as you saw they haven't seen rainfall in months across some of these areas.

STEVENS: Well, moths. OK, Pedram, thanks so much for that. Pedram Javaheri.

Now trading is just underway in the financial capitals of Europe. And we'll take a quick peek at the early trading so far. And it had been up and it remains up. Look at that. So pretty healthy numbers coming from FTSE in London, the Xetra DAX in Germany, Paris and Zurich all up between a half and 1 percent.

Here in the Asia-Pacific region, the Nikkei is closing down by more than 2 percent. The Hang Seng in Hong Kong has been bouncing around, finishing fairly strong though, up by about two-thirds of 1 percent. The trading still were ongoing in Hong Kong. Shanghai up by about 1 percent. And the Seoul Kospi down by about half of 1 percent.

The reaction in Tokyo are very much tune to what happened to New York on Monday. The Dow plunging there more than 600 points. That was 2.3 percent down on it. That's a big fall in anyone's books. Investors are concerned about tech stocks, particularly yes, it looks for earnings for U.S. corporates and the strengthening U.S. dollar as well.

Well, let's go to Tim Harcourt now. He's the professor of economics at the University of New South Wales. He is also known as the airport economist. He joins us now from Sydney. And Tim, thanks for coming back to talk to us again. OK. We see what's going on in the U.S.



STEVENS: There's concerns about earnings there, but the concerns about the strength of the U.S. economy. But I want to focus on Asia- pacific, and particularly the outlook regarding trade, for example, the trade war between the U.S. and China.

What is your outlook for Asia market specifically as we go forward in the near term knowing that this trade war has not yet run its course, knowing that the U.S. economy is still a big factor for investors in this part of the world.

HARCOURT: I think to surmise, Andrew, there's a bit of relief that people thought it would be a full-scale its guided trade war by now when it's really been some saber rattling and China has been quite restrained in reacting to some of the moves by President Trump.

What's interesting is how different markets have often operated differently. You mentioned the Hang Seng index which had three days of winning streak. Whereas Japan has actually affected in some fear for a trade war.

I think there probably that needs to raise it that Japan owns a lot of the global supply chains by which Chinese goods go to a (Inaudible) and if they're assembled in China and vice versa. So probably Japan is a little bit more worried for a U.S.-China trade war than other markets to Asia that sell directly to into China.

STEVENS: Id that fairly sanguine view you have in a moment change though if Trump goes ahead with these plans to raise the tariffs from 10 percent, to 25 percent on what, $250 billion worth of Chinese exports or even Trump and the administration decides to put duties on all Chinese imports. Would that change the picture dramatically for Asian markets?

HARCOURT: Well, the great Cambridge economist John Robertson used to say putting up tariffs is like putting rocks in your own harbor. And I think we saw in the midterms some of those key battleground states like Wisconsin, like Michigan and Ohio, they saw some adverse effects for the like of which exporters some of those Trump tariffs. That could be that Republicans in Congress would want the president, the administration to slow down a bit those tariff hikes.

And on the other hand, you see Xi Jinping having that import expo in Shanghai to sort of show that despite the threat of U.S. trade war that China is open for business. So, I think China is going through this great transition from a nation of shoppers for export dependent to a nation of -- a nation of shippers to nations of shoppers in terms of export dependency to domestic consumption and investment.

So, country's that Australia that sell raw materials to China are still going to benefit while countries like Japan very much involved in the global supply chains may be a little bit more worried about the trade were having more to come.

STEVENS: Yes. That transition you talked about in China from shippers to shoppers that has been going on now for several years, at least that the Chinese have been talking about this change for several years. How far through is that change? You know, China kept on want in to be sort of a developing economy rather than a developed economy. How close is it to being a developed economy?

[03:19:53] HARCOURT: Well, I've notice in my travels, Andrew, I mean, 20 years ago when I was in Shenzhen, I went to factory and I said do you have worker's compensation in China as a union official that's the thing I would ask. Got translated, and they said no, the workers frankly think they don't have to compensate us.

And also when I went to that same factory in Shenzhen last year, they were worried about workers earning to work in air conditioned offices and white collar jobs that pay better so they are providing pay raise to their blue-collar factory workers.

So, I think that transition is happening. But they're very concerned about leverage shortages tightness in the lighter market in those moving areas line Shenzhen. And that could put on pressures that basically explains to you why they've been very careful with their currency not to adversely affect their competitiveness.

STEVENS: And they also have, if ever, the firepower should they choose to use it to bump up the economic growth numbers. For most amongst that many people would say is their ability to spend vast amounts on infrastructure which they have been cutting back on.

Would you expect the Chinese government of Beijing to actually open up and spending tax and take the foot off the credit crack down, et cetera, et cetera, as a way of boosting the Chinese economy or do you think at this stage they're not too concerned that the economy is slowing to what, 6.5 percent or so? HARCOURT: You know, Andrew, I think you're right, I think those

second and third tier cities, that infrastructure growth building the great mall of China as we've seen in Chengdu in Zhongshan, in Qingdao I think there's always that chance to have those quick fiscal stimulus when you need it.

We saw in the global financial crisis, the great Chinese fiscal stimulus. They saw what happened in '97 when Thailand and Korea and others have their currencies attacked. So, they're very, very careful to build up foreign reserves and also to be able to put the foot on the accelerator fiscally where they need to in those second and third tier cities which they want to be alternative engines of growth to the (Inaudible) to Shenzhen and Beijing and Shanghai.

So, I think that is in their armory. I don't think they're going to hit the accelerants just yet.

STEVENS: OK. Tim, thank you so much. We'll have to leave it there. Thanks for joining us.

Coming up next on CNN Newsroom, Britain's prime minister eyes what she calls an end game for Brexit. But not one quote, "at any cost." The next step in the U.K.'s messy divorce from the E.U. just ahead.

Plus, CNN's exclusive report on the fight against ISIS in eastern Syria where U.S.-backed forces are trying to eliminate the terror group once and for all.


STEVENS: 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 in London Monday night ahead of a major cabinet meeting on Tuesday and it's all about Brexit.


THERESA MAY, BRITISH PRIME MINISTER: The 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're negotiating is immensely difficult and I do not shy away from that.


STEVENS: Well, Mrs. May also said that there will not be an agreement, quote, "at any cost."

Our Bianca Nobilo is outside number 10 Downing Street where the prime minister will address her cabinet soon. Bianca, what is Mrs. May going to be telling her cabinet?

BIANCA NOBILO, CNN CORRESPONDENT: She's going to tell them less than they were hoping for. Today was going to be the day that the cabinet were going to see the deal with the E.U. in its entirety.

Now, last week, Andrew, 95 percent of the Brexit deal was presented to the cabinet that missing that crucial 5 percent which relates to the backstop in Northern Ireland. That's the aspect that most people disagree on in the cabinet.

Because Theresa May's cabinet is composed of Brexiteers, of remainers. She's got a few loyalists that will back her to the hill and some pragmatist but she is going to be keeping an eye on both sides because she needs their support if this deal is going to get any further.

But there's reports that talks so far haven't resulted in a deal in Brussels between the U.K. and the E.U. negotiating teams. So even though we expected the entirety of the deal today, they're actually just going to be having one of their regular Brexit discussions where the Brexit secretary will be addressing cabinet.

They'll also be talking about how to ramp up no deal preparations. And that, Andrew, is crucial. And why there is so much pressure on the prime minister right now, because if she isn't able to secure a deal with the E.U. imminently, then Britain is going to have to start spending money to prepare for the event of a no deal even if they manage to get a deal with the E.U. ultimately.

STEVENS: She, I mean, the thing is she doesn't have a plan b here, does she, it's either this way or the highway, meaning a hard Brexit. Is that the correct interpretation of this?

NOBILO: In terms of the prime minister's options it seems so. There have been reports that the Brexiteers within the cabinet have been pushing the prime minister to say that if you can't get the type of how we want, there we would prefer a no deal.

And the most contentious issue in Theresa May's plan is the fact that she intends to solve the issue of avoiding a hard border in Northern Ireland by making sure the backstop to avoid that hard border will be the entirety of the U.K. remaining in a customs union with the E.U.

Now the issue that people in the U.K. particularly Brexiteers have with this idea is the fact that the U.K. wouldn't be able to withdraw itself from this customs union unilaterally, so the E.U. would essentially have a veto in future, let's say it's 2025 on whether or not the U.K. stays in the customs union even if it wanted to withdraw.

So, the U.K. want that backstop to be time limited. Both things at the E.U. won't stop. They want the back stop to apply in any situation. So, they want Theresa May if she can't ensure that the U.K. will be able to withdraw itself to opt for a no deal.

Now in terms of what other eventualities could result from this process Theresa May could get a deal with the E.U. bring it back to the U.K. and then parliament could reject that deal, Andrew and instruct the government to go back to Brussels and renegotiate a different type of deal, most likely a softer deal because the majority in parliament is to remain.

But whether or not the U.K will accept that and be willing to renegotiate is an open question.

STEVENS: Absolutely. You say 95 of that. It said that 95 percent is done on this deal, but certainly that 5 percent remaining is a very significant portion.

Bianca, thanks so much for that. Bianca Nobilo joining us from outside number 10 in London.

Now expert say the pictures will tell the story. Coming up, what new satellite images suggest about North Korea's nuclear program.


ANDREW STEVENS, CNN NEWSROOM HOST: You are watching CNN Newsroom. I'm Andrew Stevens and this are the headlines this hour. Palestinian health official say, Israeli airstrikes have killed at least five people in Gaza. Israel, says it launch more strikes after militants fired around 400 rockets and mortars on Monday. Israeli officials say the rocket fire killed at least one person in Israel.

The death toll has risen now to 44 in California catastrophic wildfires. All but to the best are in the northern part of the state from the so called camp fire. It is now the deadliest and most destructive in California's history. President Trump is promising expedited emergency relief after initially blaming poor forest management and threatening to cut aid.

British Prime Minister Theresa May is going to address her cabinet shortly about Brexit. She told a banquet audience on Monday night, that negotiations are quote now in the end game. And while that is the talks all had been immensely difficult. There won't Brexit agreement at any cause.

The new satellite images suggest North Korea is moving ahead with this ballistic missile program. And that is despite U.S. President Donald Trump assurances that Pyongyang is no longer a nuclear threats. Researchers of the Center for Strategic and International Studies identified 13 of an estimated 20 hidden missile operating by since the North has not reported. The reports says the basis could be used for all classes of ballistic missiles including Intercontinental Ballistic Missiles, ICBM's. Will Ripley joins us now with more on this. What are you learning, Will?

WILL RIPLEY, INTERNATIONAL CORRESPONDENT, CNN: Let us take a look at the images first Andrew to get you a sense of what this commercial analysis has uncovered, a granted U.S. intelligence like we not only knows about all these sites but perhaps even more by the images that were now seeing here for the first time. This is one example. The (inaudible) missile operating base is image taken in March 2018 and you can see kind of the overall view of one of more than a dozen missile facilities that are believe to locate throughout North Korea.

Let us take a closer look and you can actually see what these are uncovering here. Let us switch the image if we can so you can see a close up of the tunnels that are believed to be housing these missiles. OK. So you can see the underground entrances here and here. This is where experts say North Korea could potentially hide their mobile missile launchers roll them out onto roads and launch them from different locations across the country and it's not just the tunnels themselves that are located on the site, but the analysts have said that they also had seen upgrades being made to the facilities in terms of the structures. The buildings such as the barracks, the headquarters of the administrative support all the things a cultural hall, likely with pictures of the North Korean leaders, you find it at every significant side of the country.

These are sites like this more than a dozen of them all over North Korea and what these experts are saying is that it shows the North Korea maybes claiming to dismantle one of their missile launch sites, but clearly there are many others that exist across the country, but there are some who are really questioning the analysis, the framing of the story of first by the New York Times, but also other media outlets that this is some sort of deception on the part of North Korea, Andrew, because frankly North Korea is not really deceiving anyone.

[03:35:11] Yes they may have undeclared missile launch sites, but they have never agreed to unilaterally disarm and why would they stop the ongoing maintenance and renovations and what out of their of their missile facilities. Given that there is no written agreement or any sort of promise to United States or anyone else they're going to start dismantling these.

STEVENS: So what sort of steps in has North Korea actually tighten concrete steps to abide by the spirit and that is what we can call on the moment of the talks to Donald Trump and Singapore. What have they done?

RIPLEY: if you listen to members of the Trump administration. They believe in North Korea hasn't taken any steps certainly not enough steps toward the lifting of economic sanctions. However President Trump himself has pointed to the steps in North Korea has taken which a lot of analysts say are cosmetic and easily reversible. That would be of the destruction of the tunnels, the entrances to the tunnels at their only no nuclear test site at (inaudible) and what they claim is the dismantlement of one of their key missile launch of facilities, the Sohae launch site. Clearly there are other sites that are located across the country that are not affected by these measures, but again those early steps could almost be viewed as efforts by North Korea to build trust and confidence with President Trump in the United States.

There certainly not the kind of tangible steps for denuclearization of the United States and seems to expect it will happen all at once a front for anything in terms of economic concessions or formal end of the Korean War. North Korean media has made very clear of that, they're simply not going to dismantle all of this infrastructure overnight without any sort of guarantees from United States. Other than that at the end of the process will get economic incentives, because that will leave the country vulnerable in their view to attack without any guarantees for their safety and security.

STEVENS: Just very quickly, Will, economic sanctions remain enforce but there are suggestions that China, which was so instrumental in the sanctions to get Kim to the table. China perhaps made ease off on its policing of sanctions, is that what you are hearing?

RIPLEY: There are indications of increased cross-border activity from China to North Korea in terms of trade and also a similar situation with the Russians. So, two key North Korea allies trying to -- and Russia perhaps easing up on sanctions. In fact Russia went to the U.N. trying to get some of the sanctions lifted in exchange for North Korea's incremental, all be it small confidence building measures they claim towards denuclearization. But Russian try on board they don't enforce the sanctions in the U.S. maximum pressure campaign loses a lot of its bite, Andrew.

STEVENS: Will, thanks very much for that, Will Ripley. U.S. President Donald Trump participated in mocking a century since the end of World War I this weekend in Paris. He's trip to France was meant to be solemn, but it also exposed the strained ties between U.S. and its allies. CNN's Jeff Zeleny reports. Mr. Trump is now back in the U.S. and he is also back on twitter.


JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: President Trump out of sight at the White House on the federal holiday observing Veterans Day during one grievance after another on twitter. He is injecting himself squarely in the Florida recount trying to tip the scales to Republican candidates for Senate and Governor who are locked in razor thin races. The Florida elections should be called in favor of Rick Scott and Ron DeSantis. Large numbers of new ballot 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 is an odd message for veterans considering votes from troops serving overseas have not yet all been counted. Their ballots and allowed to ride after Election Day. After rocky weekend visit to Paris, marking the centennial of the end of World War I.

DONALD TRUMP, 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 response to French president Emmanuel Macron, who confronted Trump for calling himself a nationalist not a globalist.

PRES EMMANUEL MACRON, PRESIDENT OF FRANCE (TRANSLATOR): Patriotism is exact opposite of nationalism. Nationalism is a betrayal of patriotism by saying our interest first, who cares about the others, we erase what a nation hold 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

trans-lending partnership than to expose it cracks.

[03:40:00] A far different reception than on his visit for the 2017 Bastille Day paraded when he and Macron radiated in the glow of their newfound friendship.

On these trip, to follow up on Trump's America first world view on full display. With the president arriving alone, Sunday at the Arc day triumph. He was widely criticized for missing the ceremony of American military cemetery during a rainstorm. The White House insisted that as it was scrapped for safety reasons, because the weather was too bad to fly.

The next day he hinted at his displeasure with the rain while addressing a handful of living American veterans.

TRUMP: You look so comfortable up there, under shelter. As we are getting drenched. You are very smart people.

ZELENY: Meanwhile, the president also slamming California officials for the deadly wildfires devastating the state. Before ultimately (inaudible) the victim's 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 is another investigation. The White House is carefully following as well. Special Counsel Robert Mueller team's 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: European financial markets are now up and running for the day. Take a quick look at the early numbers for you and it was a pretty positive start and the gains are being extended to as ahead with good morning trade. London up by two third, frank up now up by over 1 percent. Paris and Zurich up by between the half of 1 percent. So a pretty strong day in Europe. In Asia Pacific, this part of the world, Tokyo was down more than 2 percent. The Hang Seng index closing up a little more than a half of 1 percent. The composite inaudible) in Shanghai up by about 1 percent in Seoul, finishing about half percent in the red. The Tokyo market reacting particularly to what happen in New York overnight. The DOW was down more done 600 points that is a big fall 2.3 percent on Monday. Investors there concern about tech stocks and the strong U.S. dollar.

Now, Saudi Arabia's announcement, that it will cut oil production is also having an impact on global financial markets. Let us go to CNN's John Defterios, he is Abu Dhabi where industry leaders have been gathering and John, it is interesting to see that Donald Trump is already tweeting in response to that move by the Saudis, he said quote, hopefully Saudi Arabia and OPEC will not be cutting oil production or process should be much lower based on supply. So, these were hit quite clear what do the Saudi's been telling you?

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, we have Andrew, a tug of war here between two of the largest oil producers in the world, Saudi Arabia and the United States. Donald Trump wants to lower oil prices to be an elixir to growth. Saudi Arabia says they need stability, it is always good to come to the pulse of the market if you will.

This is the largest oil and gas exhibition anywhere in the world. Not surprisingly, because this is a low cost production region in the world. We are looking at $4 to 6 a barrel. Maybe a lot the last three years as you know, it went to $80 a barrel in 2015 down to $30 a barrel early 2016 and then the staircase higher as Saudi Arabia took oil off the market with its OPAC and not OPEC partners.

So when Saudi Arabia suggesting yesterday you want to take 2 million barrels a day after mark in December. It is to put floor it around $70 a barrel on the international benchmark in this class with the U.S. position by Donald Trump was been bashing OPEC for the last six months leading into the midterm elections and the sanctions with Iran.

So this is what made the news here Khalil Al Falih on the panel we chaired yesterday suggesting the target is very clear coming up in December. Let us take a listen.


KHALID AL FALIH, SAUDI ENERGY MINISTER: The consensus among full members is that we need to do whatever it takes to balance the markets and that means we need to supply by a million, we will turn it when we needed to increase a million, we increased over a million, between June and now and to achieve the purpose, because otherwise prices would have been way through the three digit territory and that would've been very, very uncomfortable for us.


DEFTERIOS: Three digit territory that means $100 a barrel, that is where the expectations were in fact towards the end 2018, because of all the drama around the Iranian sanctions. Senior OPEC sources tell me, they may try to stick up to 1.2 million barrels a day, when you have this confrontation at December 6 -- (inaudible) because of outside influence of Donald Trump.

[03:45:00] STEVENS: Absolutely. We can't I think we have to wrap it up there. John we got a few audio issues on that feed of yours. So, apologies for that. We are going to take a short break. When we come back, U.S. forces tried to root out the last of the ISIS fighters in Syria, where the terror group is hanging on. An exclusive report is next.


STEWART: MSC International has stripped San Suu Kyi of his highest honor. The right groups says it revoking the ambassador of conscience award into Myanmar civilian leader in 2009, quote apparent indifference to the atrocities committed by Myanmar's military against Rohingya Muslims. Amnesty secretary general says that Suu Kyi no longer represents the symbol of hope, courage in the undying defense of human rights.

You know much about the fight against ISIS these days, mostly because the terror group has been driven out with strongholds in Iraq and Syria, but ISIS still controls territory in eastern Syria. The fight to get rid of them extends well beyond the battlefield. CNN's Nick Paton Walsh has this exclusive report.


NICK PATON WALSH, CNN CORRESPONDENT: ISIS are more than just ghost sound here in the dust of eastern Syria for top leaders. The last symbolic territory are in a distance, haunted of cover of darkness. Syrian Kurdish fighters pummeled by air power (inaudible) towards the Iraqi border. Dark means chaos here after the lethal advantage for American technology. That were an apache attack helicopter finding its target. These are rare pictures of the daring night time operation that had taken back suedes of land from ISIS.

It is startling to see how rudimentary the tools are in a fight so essential to a world. How young the fighters are, this one apparently deafened by shelling. Can you talked, I ask him. The dead hose who survive (inaudible) and those of need of urgent surgery again along journey to better care.

[03:50:06] Through a night sky the stilettos of the sound of deaths. Lurking below in this remaining villages could be ISIS leader Abu Bhakra Baghdadi defended by die hard loyalist and foreigners and car bombs. The street to street battle was ferocious as before but unseen by a world who have believed President Donald Trump, when he says ISIS is being defeated. They are hold out around the village of Susa, still grip on to what they have, because daytime brings them new set of challenges. ISIS mortars close in. Up in the roof, ISIS snipers pinned them down. It is startling how this chaotic and young force loosely in control of their weapons that got so far.

Then the (inaudible) on this war, American air power behind both its advances and mush of its destruction it leads. Trump never disappoint he says, yet the sheer force can't answer the key question on how to handle the civilians who gave ISIS shelter and members in the long term.

The biggest battle he says, it is going to be frame to people from ISIS's way of thinking. They still think ISIS will come back one day and give them a caliphate again. This family, say they risk arrest by ISIS, they only fled this afternoon. I was in the refugee camp he says, but ISIS surround him and prison. Yet it is impossible to balance their immediate human needs with what their real sympathies maybe.

They asked this old man why didn't he died in the airstrikes. It is in the hands of god whether I live or die, he says. And so they returned by thousands and others to camp behind the frontline, where ISIS's victims impossible future flag bearers formed a well of suffering and hatred. They were smoldered across this planes for years to come. Nick Paton Walsh, CNN.


STEVENS: Next on CNN Newsroom, we lookback at the man who brought many of them modern myths to life. Stan Lee's legacy just ahead.


STEVENS: He was a genius behind Spiderman, Captain America, the Incredible Hulk, and many, many other superheroes. Comic book legend Stan Lee has died at the age of 95. His characters have superpowers but there are also (inaudible) and the readers love them. Here is Jeanne Moos.


[03:55:00] JEANNE MOOS, CNN CORRESPONDENT: In the world of comic's superheroes.


MOOS: Other people drew the characters. He invented their stories.

UNIDENTIFIED MALE: There are responsible for the greats, a civil list, Spiderman, guilty.

The Incredible Hulk.

MOOS: There was a collective cry of grief from cartoonists Stan Lee's face projected as a web in the sky. How did (inaudible) Spiderman anyway.

UNIDENTIFIED MALE: I saw fly crawling on the wall. And I said wow. Suppose a person have the power to stick to a wall like an insect.

MOOS: Jimmy Kimmel posted what he called a weird portrait of Stan, that Jimmy Drew when he was seven. Three decades later he got to give it to the great one in person. The marvel of Marvel comics explained his objective this way.

UNIDENTIFIED MALE: We want to be a little cinder in the eye of the establishment. I just thought about it. I think it's great.

MOOS: He was modest when he got a star in Hollywood's walk of fame.

UNIDENTIFIED MALE: In a million years. I never thought you know, that I get something like this.

MOOS: He and his wife Joan were married for 69 years until her death, he appeared in movie cameo.

UNIDENTIFIED MALE: That is hilarious.

MOOS: After movie cameo. At the age of 77 he told Larry King --

UNIDENTIFIED MALE: Life is so exciting. I'd love to have another hundred years. He had to settle for a mere 95 year's total, creating superheroes with human hang-ups and he never hung up his signature line.

UNIDENTIFIED MALE: Excelsior. Excelsior.

MOOS: Jeanne Moos, CNN.


MOOS: New York.


STEVENS: As Chris Pat said, a life will live. You are watching CNN Newsroom, I'm Andrew Stevens, the news continues on CNN, right after this.