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President Trump Will Not Punish Saudi for Khashoggi's Death; Stocks Takes a Nose Dive Today; U.S. Warship Now Welcomed by China. Aired 3-4a ET

Aired November 21, 2018 - 03:00   ET



[03:00:00] BIANCA NOBILO, CNN HOST: Hello and welcome to our viewers in the United States and around the world. I'm Bianca Nobilo, live in London. And this is CNN Newsroom.

Ahead this hour. Siding with Saudi Arabia. Donald Trump suggest the kingdom won't be punished for the killing of American journalist.

Plus, U.S. stocks take another tumble. All of the gains made on Wall Street this year have been erased.

And crews are finally getting control of wildfires burning in California. But a new threat may be just around the corner.

It's been more than two years since Donald Trump beat Hillary Clinton for the U.S. presidency. But apparently, he can't seem to accept his victory and move on.

The New York Times reports Mr. Trump wanted the Justice Department to prosecute Clinton and FBI director James Comey. But the White House counsel warned him against it, telling the president it could lead to his impeachment.

A source tells CNN that Mr. Trump has repeatedly asked for updates on investigations into Clinton.

And Mr. Trump appears satisfied with Saudi Arabia's explanation of the murder of Jamal Khashoggi. He issued a statement signaling he would not take strong action against Riyadh for Khashoggi's death.

The CIA believes Crown Prince Mohammed bin Salman ordered the journalist killing at the consulate in Istanbul. The president is defying intense pressure from U.S. lawmakers to impose stronger sanctions. He insists the CIA did not reach a definitive conclusion and the truth may never be known.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They didn't make a determination. And it's just like I said, I think it was very -- maybe he did it, and maybe he didn't. They did not make that assessment. The CIA has looked at it. They've studied it a lot. They have nothing definitive. And the fact is, maybe he did, maybe he didn't. (END VIDEO CLIP)

NOBILO: Let's go now to Jomana Karadsheh in Istanbul with the latest. Jomana, President Trump saying maybe he did, or maybe he didn't, referring to the crown prince's knowledge of the killing. How are those remarks likely to be received across the region?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, you know, Bianca, I don't think it's going to be much of a surprise the president's stance. I think he's made it very cheer from day one that his priority here as he mentioned is America.

First his relationship with Saudi Arabia, that he's described as a spectacular ally. But I think that statement, the way it was written, the way it was delivered, that has really had some people very surprised in this region.

We're talking about a very polarized and divided region. So, you are going to get different reactions. You've got some countries that are in the Saudi camp. And they will be pretty pleased with this reaction from the United States. This stance from the president.

There are other countries in the region, Bianca, other U.S. allies that will be probably be very concerned and very worried about this reaction, whether it is Turkey, a NATO ally, that saw this incident, the killing of Jamal Khashoggi on its soil, while it took place at the consulate they said this took place on their territory.

You know, they see this as a violation of Turkey sovereignty, a NATO ally that was hoping that other countries, especially the United States, would take a stronger stance and make sure that this doesn't happen again.

And then, you've got other countries, for example, Qatar. I'm pretty sure they will not be very pleased to see this kind of reaction from the United States. Some countries that were hoping that, perhaps, this would be a defining moment. This is the moment where the United States will draw a line.

They have been concerned about what some would see as this reckless leadership of the Crown Prince Mohammed bin Salman and his policies in the region.

So, you know, the feeling was maybe the United States, an international community, to an extent, was turning a blind eye to some of the actions of the Saudis in the region. And they had hope that maybe perhaps this would be the moment where it will all change but that this not happen clearly.

And you know what, Bianca, it's not just about these countries. It is also about individuals. It's about people. Over the past few weeks since the killing of Jamal Khashoggi I've spoken to activists and dissidents, opposition figures in this region who will tell you that it was never easy to be critical of governments in this part of the world. They've always felt that their life is in danger. [03:04:58] But with the killing of Jamal Khashoggi, they say they fear

for their lives even more right now. And they were saying that unless the international community, especially the United States, holds the Saudis accountable for that killing, they fear that there will be many more Jamals. Bianca?

NOBILO: Jomana, thank you for your reporting. Jomana Karadsheh for us in Istanbul, Turkey.

Well, for more now on the implications of this, Kate Andrews joins us. She's a political columnist for City A.M. Thank you for being here, Kate.


NOBILO: Now you know your economics. And the president has said quite explicitly here, that the tradeoff he is making in his mind is the fact that any strain on the relationship with Saudi Arabia would cost hundreds of thousands of American jobs. Do you think it's unusual for an American president to be explicit about that kind of transactional thinking?

ANDREWS: Yes, I actually do. Now a lot of Americans have always felt quite uncomfortable with our relationship with Saudi Arabia. It does feel very tactical. We want to have allies in the region, especially with countries like Iran which are becoming more aggressive over the years.

However, no U.S. president in my knowledge so far has come out and said, basically, we're going to turn a blind eye to what our own intelligence agencies are telling us about a murder because we value the investment because we value these American jobs.

I think as horrible as I found Donald Trump's comments, I think they're timely. I think it's important that Americans do recognize the trade-off that goes on with Saudi Arabia. I think it is one of our biggest hypocrisies actually.

And we are a country that claims to stand up for human rights within our own country and around the world. And yet, we do turn a blind eye on so many different occasions. Not simply to this horrific murder but to the treatment of women and minorities in places like Saudi Arabia.

Perhaps more people will look up and say actually the president is being honest about our relationship with Saudi Arabia and maybe we should take a stand.

NOBILO: And speaking of areas where the president certainly doesn't turn a blind eye, these are reports that the president was trying to prosecute Hillary Clinton and James Comey. What do you make of them?

ANDREWS: Well, to speak of human rights, I mean, in America, we don't bully our political foes. And to try to implicate somebody who you have been running against in a Democratic election after the fact is quite worrying. Now I think for Donald Trump, he knows that when Hillary Clinton is

being investigated, that plays to his base. He knows I think that certainly that did help him during the 2016 election when Comey re- open that case against her and her e-mail server. He got a bump in the polls.

So, I don't think there's any question that, you know, from his own tactical point of view, he would like to see further investigation. I think he's a bad winner. I think he's, as you said before when you were introducing us on CNN, he is still struggling to accept the fact that he won. that this isn't a campaign against her anymore.

NOBILO: And now, if you could explain to our international viewers as well why the U.S. Justice Department would regard those actions in particular of the president as a potential abuse of power.

ANDREWS: So, you know, when you are approaching the deputy attorney general suggesting that somebody who you just beat in a Democratic election should then possibly see prison time, you are going into very, very murky territory.

Now, you know, that nobody should be above the law. And there were legitimate questions around the 2016 campaign with both candidates if some of their actions should be investigated. And I'm not opposed to that in the slightest. But at the end of the say Donald Trump is president. It is his actions that need to be the most accountable.

And to be spending his political capital on potentially trying to put his political opponent behind bars is certainly not where you want the president be channeling his efforts.

NOBILO: And also, lots of news coming out of the White House, as we--


ANDREWS: Around the e-mails.

NOBILO: -- we expected.


NOBILO: So, what, again, what do you make of this story? So, Donald Trump's daughter, Ivanka, reportedly using her personal e-mail account for business. Explain why that's precarious for somebody in her position. And are the Democrats justified in their resistance to that and their intention to investigate?

ANDREWS: It's remarkable that a president who ran half of his campaign on the fact that Hillary Clinton had this private e-mail server, was sending work e-mails from a private account, could then be in a position where, not just his daughter, but someone who is a very senior member of his team, has e-mails on her private account.

There are differences. The reason that they were so able to easily find Ivanka's e-mails is because she didn't have them on a private server in her basement in her own private compound. There are differences.

But the big concern here is that legally, you're not supposed to have these kinds of documents on your personal e-mail or your personal computer. They are sensitive. They could potentially be classified information. So that can be a threat to American security.

But also, we have mid-level managers in government getting jail time or being fined for far less explicitly bad circumstances in which they have accidentally put a work e-mail on their private phone or taking something out of the office. And so, it feels like there's a two-tier system here for both the Hillary Clintons and the Ivankas of the world, and then everybody else.

NOBILO: Kate Andrews, it's always lovely to talk to you. Thank you for panning over with the politics with us.


[03:10:00] ANDREWS: Thanks for having me.

NOBILO: Now, the trading day is just getting started in the financial capitals of Europe. Stocks in London, Frankfurt, Paris and Zurich are all looking to rebound from losses on Tuesday. Still a bit early to get a sense of direction for today.

Markets in Tokyo and Seoul were lower but not by too much. Hong Kong's Hang Seng and the Shanghai composite managed modest gains.

On Wall Street, the Dow dropped more than 550 points Tuesday, wiping out all its gains for the year. Big tech companies like Apple, Amazon, Facebook and Netflix have been a drag on the NASDAQ, too. Retailers including Target and Kohl's pulled the S&P lower.

Let's head to Abu Dhabi now. And CNN's Emerging Markets editor, John Defterios. Now, John, it seems that the market all around the world having some fairly shaky days. What's driving that kind of nervous sentiment?

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, it's being led by Wall Street. There's no doubt about that, Bianca. We've seen this washout on Wall Street on the last two months of trading. And the big question is, how much do we need to see further selling before we correct after years of gains.

Looking at that Dow Industrial correction. We were down better than 600 points. But still with the loss of 550 points, it's pretty messy. The S&P 500, the broader index of the technology companies of the United States is now down 10 percent from the September highs.

Let's bring up the Asian screen. I thought this was interesting that we saw Hong Kong and Shanghai moving higher despite the U.S. trade pressure against China right now. Tokyo and South Korea are down slightly. And that was the wider trend, down slightly throughout Asia but not bad considering what we saw.

In the introduction there you talked about the technology sell off and this is a predominant theme, but it actually has a spillover effect for economies like China and stretch it down to Southeast Asia in Thailand, the so-called supply chain.

The retailers again are bad sign for the manufacturers of China and there are worries here going into 2019 that the growth is going to be slowing down even for a Christmas buying season of 2018 that the U.S. economy slowing down.

The final leg of this I think are the financials themselves. Once again, we have President Trump leaning on the U.S. Federal Reserve. The central banks saying this is a worry for us, with the Federal Reserve still moving interest rates higher. This puts a lot of pressure on the emerging market currencies around the world and pressure on the stock markets, as well.

So, it's constantly a moving game here. And the U.S. president, keeping the trade pressure on China and also on the Federal Reserve, which keeps investors very nervous with the valuation we've seen on Wall Street for the last 24 months.

NOBILO: And John, there is also some big political risks which are driving markets. Talk to us through those.

DEFTERIOS: You know, Bianca, I think we're downplaying a story that you're glued on. I'm saying downplaying the financial risks because of Brexit and what's happening on Downing Street. Or shall I say what's not happening on Downing Street because we don't have clarity.

This is not only bad for the U.K. economy and the U.K. markets but also for continental Europe as well. This could send a shock wave right through the heart of Europe. I'm thinking of France and Germany. The second what we should consider here and this is not playing out in the markets that we see in the early trading as they're starting to recovery is Italy.

I mean, again, we talk about the political challenges of Italy but the $2 trillion risk with the rest of Europe. So, you could have kind of two columns going lower or getting rattled in 2019. That would be the U.K. and Italy. Those are risks that we have to watch right now.

I talked about the China trade risk. Now the other one here is the risk of oil. Donald Trump when he gave the support to Mohammed bin Salman, the crown prince of Saudi Arabia and broadly for the king, King Salman, as well, he thanked Saudi Arabia for not taking action on oil. Actually, providing oil for the last six months but kind of a very strong hint, don't think about cutting oil as a quid pro quo for my support for you.

So, this is going to make the December 6th, 7th meeting of OPEC very interesting in Vienna. I bring it up as we saw a sharp selloff of 6 to 8 percent at different times during the day for oil prices.

Donald Trump wants to keep them lower to extend the economic cycle United States, Saudi Arabia and the rest of the Gulf countries where I'm sitting here would like to see a slightly higher. They want to go through the selling price of 2015 and '16 again. And we're looking down the road, Bianca, once again in 2019 drop in demand would mean downward pressure on oil prices.

NOBILO: John, thank you as ever for your reporting. John Defterios for us in Abu Dhabi.

Now, I'm joined by Vicky Pryce, she's an economist at the Centre for Economic and Business Research and author of the book, "Economics." Vicky, thank you for being with us again.

Now, John in Abu Dhabi was just mentioning Brexit and the risk that are facing European markets. Let's talk a bit more about that because we are in London. I was freezing at Downing Street yesterday. It seemed that.

[03:15:02] Now the prime minister heading to Brussels today for meetings with Juncker. How much is riding in terms of the markets in the U.K. and in Europe on getting a deal this week on signing this off?

VICKY PRYCE, ECONOMIST, CENTRE FOR ECONOMIC AND BUSINESS RESEARCH: Well, it's very interesting because when a withdrawal agreement came back supposedly, you know, with the full acceptance of the E.U. 27 and other negotiators in the U.K. that the markets seemed to be reasonably happy. That at least there were some progress and of course, the pound recovered a little bit, and then of course everything went wrong.

Given that we had so many resignations from the cabinets and also for the downing terms of other ministers. I supposed the challenge for Theresa May's leadership.

So, there could be a vote of confidence already but in fact, it hasn't quite materialized. So, in a way, Theresa May has survived and she is going back. And what she hopes to do in a summit this coming Sunday is actually sign that agreement, with all the details being sorted out now because there is a political agreement too.

It's not just the withdraw agreement, which sets out the terms of the English with which we're leaving the E.U., in terms of how much we have to pay. What happens to E.U. citizens here and what happens to U.K. citizens abroad. And of course, very significantly, the Northern Ireland border which has been an issue.

Now, she may indeed sign that, once we get a little more information of what this -- why the political agreement for the future says because it's been attached to this. So, there's a withdraw agreement and there is a sort of political statement, in terms of what may happen in the future, in no way binding.

So, she could sign that. Everything, you know, from her side might work out. She would still be prime minister certainly by Sunday. But then, the question is, does she get it through parliament. And that is what is worrying the Europeans who are already saying, that maybe we've given too many concessions to the U.K.

So, they're not all terribly, terribly happy about this. But it's been a compromise of business for the moment, it seems to have been quite happy to accept. NOBILO: And presumably, a lot of this instability was price in.

PRYCE: Up to a point. It changes from day-to-day. Because we don't actually know the exact detail of what the trading arrangement is going to be in the future.

And even if we get a transition period from, starting from the end of March next year, originally it was just going to be just under two years. We're now talking about possibly extending it to 2022. That suggests there is more uncertainty for businesses on both sides for the U.K. and Europe, and therefore a bit of calm.

But in reality, there will still need to be so much negotiation during it. And there will be a lot of concern as to whether in fact we might be withdrawing various things that we've agreed to do on paper but not necessarily finding them binding, and therefore accepting them on regulation with the E.U.

Huge areas which are not covered in any serious details such as the financial services. The service sector generally, which is 80 percent of the U.K. economy. And you look at this and you look at what's going on in Europe right now with the serious slowdown that's taking place in some big countries like Germany, for example, the problems with Italy which we've been hearing a little bit on that as well.

And basically, when you look at Europe you wonder, do you want to buy stocks, is it actually in entering quiet slow period of growth. The U.K. is not going to grow particularly fast even if there is a proper deal that is signed.

So, a lot of concern because the markets obviously are going to correct a little bit today or at least they're beginning to look like there might be some correction.


PRYCE: Not a big one. But a lot remains to be seen. I think this week is going to be crucial but for the U.K. and for Europe the next month. Will the deal be approved by parliament? It's going to be very crucial.

NOBILO: That is the big question. Vicky Pryce, thank you so much for joining us.

Still to come on CNN Newsroom. Parts of California already scorched by wildfires may now face heavy rain. And that could mean even more disaster for the state.

Plus, the global police organization, Interpol, has chosen its new leader. And the choice is quite a surprise.


NOBILO: Welcome back. We're tracking developments in Hong Kong. A U.S. aircraft carrier strike group has arrived. China has blocked a U.S. warship from visiting just two months ago. So, this could be a sign of better ties ahead of next week's G-20 summit.

CNN's Ivan Watson is on the water of Hong Kong and joins us now with the very latest. Ivan, explain to our viewers exactly where you are, what's going on and why it's so significant.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Bianca, I'm giving you a view from a tiny, bobbing motor boat in the harbor of Hong Kong of an American nuclear power supercarrier. Behind me is the USS Ronald Reagan. Now, its presence here is significant because tensions have been ratcheting up in recent months between Beijing and Washington.

And just two months ago, China refused to allow a port of call from another American warship. There are number of flash points right now, notably, the South China Sea. And that's where the U.S. and Chinese navy's have been shadowing each other because China has claimed -- claim virtually all of that important body of water for itself amid objections from the U.S. government.

So, this aircraft carrier has just been performing maneuvers there alongside other American warships, two other warships that are also paying a visit to the same Chinese port.

You also have the trade war being waged between Beijing and Washington and there are some who believe that maybe there is some hope here for ratcheting down the tensions, because on Tuesday, just yesterday, the same vessel welcomed a Chinese delegation, welcomed a senior Chinese military commander aboard its deck which is now bristling with U.S. fighter jets for a visit aboard that.

[03:24:58] And perhaps that could be interpreted as a sign that both sides are trying to calm down the tensions ahead of a much-anticipated face-to-face meeting between the Chinese leader Xi Jinping and U.S. President Donald Trump that is scheduled to take place later this month at the G-20 Summit in Argentina. Bianca?

NOBILO: And Ivan, how has this gesture been received where you are by people who can see what's going on? Or by the media? Is it getting a good reception? Is there a goodwill behind trying to soften the relationship?

WATSON: I'll just give you the personal reaction. I was pretty surprised when I saw this giant ship, again, bristling with fighter jets, steaming past my apartment window a couple of hours ago. It is being reported in the Hong Kong press. It was front page news here when USS Wasp was denied a port of call here in Hong Kong two months ago. And the media have been invited on board.

So, this is an example of what the U.S. navy often gauges in, it's kind of naval diplomacy. Ports of call by U.S. warships are a sign that countries that may have a differences of opinion, not always agree, still welcome each other's warships in each other's harbors in each other's ports.

So, if you are going to use that as a barometer of relations, the fact that this giant floating military, piece of military equipment is being allowed here is a sign perhaps that the Chinese are being a little bit more welcoming of the U.S. navy despite the differences they have in other areas.

And I'll just remind you that this same ship leading a U.S. naval strike group was operating in the South China Sea, those contested waters just days ago, but now it's being welcomed here in this Chinese harbor. Bianca?

NOBILO: Ivan Watson, thank you so much for your reporting. Not every day you see Ivan bobbing off of the coast of Hong Kong in a little boat.

Still to come on CNN Newsroom, the global police organization, Interpol has chosen its new leader. We're live from Dubai with all the details.


BIANCA NOBILO, CNN NEWSROOM ANCHOR: Welcome back to our viewers in the United States and around the world. I'm Bianca Nobilo, live in London with a check of the headlines this hour. Donald Trump apparently wanted the U.S. Justice Department to prosecute Hillary Clinton, but was warned against it by the White House counsel. A source tells CNN, the President has also repeatedly asked for progress reports on the investigations into his former presidential opponent.

U.S. lawmakers are sharply critical of President Donald Trump's loyalty to Saudi Arabia in the aftermath of Jamal Khashoggi's death. The CIA believes Saudi Crown Prince Mohammad Bin Salman, ordered the killing, but Mr. Trump says maybe the Crown Prince knew about it maybe he didn't.

Interpol has just selected South Korea's Kim Jong Yang as its new president after vote in Dubai. He is to replace the organization's former leader Meng Hongwei, who left after the in mysterious circumstances. Our Sam Kiley joins us now from Dubai with the very latest. Sam, you're in Dubai where this election happened. Talk about us about who Kim Jong Yang, what we know about him and whether or not this was the expected result.

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Mr. Kim is the former Vice President of Interpol. He was before that, a provincial police commissioner as we would understand it in South Korea. He had broad support, particularly from western countries, who were very anxious, indeed, about the possible election against his rival for the presidency of Interpol and that is 180 nation body that links the police forces of the world effectively.

The rival, was coming from Russia, he is a former general in the ministry of the interior, his name, Alexander Prokopchuk, and he was anticipated, according to many, to be likely to take the winning post. To past the post first, but it turns out that Mr. Kim has been elected. And I think that would mean there is a sigh of relief being breathed. Not least because of course, Mr. Meng, the Chinese former President of Interpol was arrested on his return home just about six weeks ago, accused of corruption charges. Interpol, at that time, was itself accused of being pretty (inaudible)

in its response to the arrest of his most senior official, really rolling over and accepting the resignation letter from him that they wouldn't be absolutely sure, he had not written under duress.

On top of that, of course, there was a concern that if a Russian was elected to the post, that Interpol might be used to chase down the opponents of Vladimir Putin around the world. There has been some form for that. The Russians have frequently are trying to use Interpol to issue to what is known as a red notice, falsely described as an international arrest warrant, for opponents of the Putin government. But, He is going to remain in post. He is also a Vice President of Interpol. So he still remains a man of considerable influence in this international police body. But for now, I think there is a generalized sigh of relief that a well-known, much- respected police bureaucrat, without the potential political agenda is going to have the top job, Bianca.

NOBILO: And Sam, do you think that the concerns over having a Russian official in the top job was quite rampant? There is a grieved of U.S. senators I believe said it would be like having a Fox in the hen house. Do you think they were the most influential factor behind this decision?

KILEY: Well, I think that certainly the United States made its views very clear. So did the United Kingdom. This is a majority vote among the members in the building behind me, Bianca. It's not strictly true necessarily at least structurally that the President would be the Fox in charge of the hen house. Because, when we were speaking to Interpol officials earlier on.

[03:35:00] Their spokeswoman saying that actually the President's role is largely ceremonial. That access to data, which is the most sensitive aspect of this, is controlled by national Interpol offices. And there's no automatic right that a Russian President or a Chinese President or either a British or American President, would be able to do a deep dive into the filing system, if you like, and use that to political ends. That said, of course, if you are the president of a body, you get to change it, fashion it, select who sits on the committees. And that certainly would have given Russia, certainly from the western perspective, undue influence inside Interpol, but those fears are now over. And a populous South Korean candidate has won. So, Interpol is back certainly from in western perspective in safe hands. But no doubt, Vladimir Putin maybe excitedly grinding his teeth over this result. Bianca?

NOBILO: Thanks for your reporting, Sam. Sam Kiley for us there in Dubai with the latest on Kim Jong Yang being the new Interpol chief.

Now, Renault says, Carlos Ghosn remains chairman and CEO. It wants more information about accusations of financial misconduct against him. Renault has named an acting CEO to take charge of day-to-day operations while it investigates claims. CNN's Ana Stewart is following the story for us. Ana, thank you for joining us early on Saturday. So, how are investors reacting to all of this news? ANNA STEWART, CNN PRODUCER: Interesting, the share price just opened.

The European markets are open. And the share price is slightly higher. At least the crisis, as we were seeing it, may have stalled. You have to bear in mind, this is a stock that is lost a lot of ground over the last few days. At one point, yesterday, some two billion Euros was wipe off its market cap. So yesterday what we had, late last night, and I was here, as well, Bianca, the Renault board men met.

They met, they decided they would keep Carlos Ghosn in place as CEO and chairman. They have an acting CEO in the meantime. But will it be enough to satisfy the French government? Now expecting to hear any moment from the French finance minister Bruno Lemaire. We heard from him yesterday morning, he effectively said yesterday, you have to bear in mind that the French government is the biggest stake holder in Renault in addition to Nissan.

And he said yesterday. Carlos Ghosn is not capable of leading the company, at this moment, of course he is under arrest in Japan. So, hopefully this interim management will be enough to please him. He was meeting with the management team early this morning. So we will wait to hear from him.

NOBILO: And so what is the latest on the man himself? We still have not had any word from him?

STEWART: This is the thing. We have not heard from Carlos Ghosn. He is been under arrest since Monday. Japanese prosecutors have told us what he is accused of. He and (inaudible) and another director of Nissan accused of collaborating to under report. Carlos Ghosn SALN by some $44 million. In addition to that we know that there were numerous significant other acts of misconduct flagged by Nissan themselves. And there were plenty of other reports from Japanese, NHK about various exotic homes that Nissan provided to Carlos Ghosn, but we have not heard from the man himself yet. It's a hard story to report on because, frankly, the one person we really want to hear from is silent.

NOBILO: And what is the first that anybody had ever heard about allegations against him?

STEWART: So what has happen, a whistleblower report at Nissan happened several months ago. Nissan had been investigating this entirely for some several months now. What surprise (inaudible) even Nissan, in fact that Japanese prosecutors came out with it on Monday and arrested Carlos Ghosn. Raided his office then and that is when it really fell into media hands. And I think Nissan have to play very big catch, a very quick press conference Monday. And now, the board rooms of all three cars in these alliance are having to decide what to do next. Nissan's CEO proposed they removed Carlos Ghosn as chairman from Nissan. That board meeting is set to happen tomorrow, but Renault has come to a very different decision.

NOBILO: Anna Stewart, thank you so much for the very latest. I'll let you go. So you could watch that press conference. Still to come on "CNN Newsroom," trapped in a war that they can't

escape. And now a new report says that the children of Yemen are starving to death at an alarming rate. We'll have more for you right after this.


NOBILO: Welcome back. As firefighters work to contain the two wildfires burning in California, the state may be facing another big problem, heavy rain is in the forecast. And that could mean that flash flooding and mudslides in the areas that have been scorched. The death toll from the fires now stands at 84. Many more people are still unaccounted for. Crews are now racing to find more possible victims before the bad weather strikes.


UNIDENTIFIED MALE: When the rain comes, what should happen is going to consolidate that material and make it more dense and pack it down. It's going to present mush more like soil. So anything we find or hope to find is still there, is going to be very -- it's going to make a difficult task even that much more difficult.


NOBILO: Meteorologist Ivan Cabrera joins us more with the rain finally moving to California. Ivan, I say finally, but as you were tell me last hour, this is not exactly give them relief, but actually presents new problems.

IVAN CABRERA, CNN METEOROLOGIST: Yes, you are absolutely right. As you was mentioning there, I mean the fire without the rainfall is already 75 percent contained. So really in a way, ironically, we don't want the rain. The rain is actually going to make things worse. We'll talk about the potential mud flows in a second here. We've already burn of course, California's worst fire ever, 152,250 acres. And here comes the pacific moisture now, the fire late this season is unusual, this is not we typically we get these storms right off from the Pacific in California and now it is going to come in and it is going to come in hard and heavy as far as the rainfall.

We are not juts talking about one day and by the way Day one is today. Day two, and then, day three. This is a multiday event of very heavy rainfall, we have the string of moisture just right on top of northern California. As far as the rainfall tallies, when all said and done, we're talking anywhere from three to as high as five inches. It looks like the worst areas as far as how much rainfall would be right over paradise here. This is not good.

A three-day, five-inch rainfall event for northern California. So obviously flash flood watches are in effect. That is going to be a big threat, along with the mudslides and the debris flows that we're expecting as a result of that rain mixing with all that burnt soil out there. As far as temperatures holding in the 40's there you see the improvement on Saturday. But for the next three days, it will be raining and it is going to be raining heavily. So let's talk about why this is such a big threat. We had the fires.

They have been put out for the most part, at 75 percent containment, but the rain is going to come in. Typically, when you have the vegetation, that rain is going to get absorbed by trees, by brush. Not the case this time. That is going to fall basically on cement.

[03:45:02] And so one thing that is going to happen, it is going to run down the hill very quickly. But when it mixes with the ash and that burnt topsoil, what you get is basically a muddy mess. That is going to be coming down the hills, which is why we had to evacuate folks that had been in the foothill there. And so this is going to create a significant problem, I think. We had this last year in the fire season. We have multiple deaths as a result of that. So we have to watch this carefully. A big threat on top of that -- we had California here. Again this is going to happen Wednesday, Thursday and until Friday, Bianca.

NOBILO: Ivan Cabrera, thank you so much.

A suicide bombing in Kabul has killed at least 50 people, in one of the deadliest attacks in the Afghan capital this year. The bombing targeted religious scholars who had gathered at a wedding hall to mark the birthday of the prophet Muhammad. There has been no claim of responsibilities so far. The security situation in Afghanistan has deteriorated in recent months, despite diplomatic effort to end the country's 17 year war.

In Yemen, starvation is one of the biggest killers in the country's brutal war. Since 2015, as many as 85,000 children under the age of five may have died from extreme hunger or disease. That is according to the charity groups Save the Children. For more, CNN's Ben Wedeman is live in Beirut, Lebanon. Ben, thanks for joining us. So what does this new analysis from Save the Children tell us about quite how severe the humanitarian disaster is in Yemen?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Bianca, war is always an obscenity, but certainly this report underscores just how horrific the war in Yemen is. Keep in mind, around 10,000 people have been killed in the fighting. But according to Save the Children, around 85 children under the age of five have died from what they describe as severe acute malnutrition. Which I assume NGO's for simply starvation. And this is not a natural disaster. This is very much a manmade catastrophe caused by this war between Saudi Arabia, the richest country in the Arab world, against a faction in Yemen, which is the poorest country in the Arab world.

Now according to the U.N., 22 million people out of the approximate 28 million population of Yemen are in need of some aid or food assistance. They believe that the U.N. says that in 2018, 400,000 Yemeni children will suffer from, again, this term, severe acute malnutrition, which of course is just, as I said, starvation.

Now yesterday, Saudi Arabia and the United Arab Emirates, which are the two main members of the Saudi led coalition in this war against Yemen, announced that they will provide $500 billion in food aid to Yemen, but they are spending far more than that in this war against their opponent in Yemen. Bianca?

NOBILO: Ben, you referenced this was a manmade crisis. Does reports like this move the dial in terms of international efforts to bring this conflicts to an end? Does it have any effect?

WEDEMAN: Well, certainly if you went through President Trump's rather interesting statement yesterday regarding Saudi Arabia and the killing, the murder of Jamal Khashoggi, it's clear he doesn't care too much. He is much more interested in the money that comes from Saudi Arabia, than the havoc that is being wreaked on children under five in Yemen, or a Washington-opposed columnist.

Now we do know that Martin Griffith, the special U.N. envoy for Yemen, is trying to bring the warring parties to peace talks that are supposed to be held in Sweden before the end of the year, but certainly, the signal that came from Washington was, that this war is not -- bringing this war to an end is not a high priority for the United States. Bianca?

NOBILO: Ben Wedeman, thank you very much for your reporting.

We're going to take a short break. I'll be back with more news after this.


NOBILO: Welcome back. Facebook founder and CEO, Mark Zuckerberg has faced heavy criticism for how he handled Russian efforts to spread misinformation and divide Americans during the 2016 election. Critics say he could and should have done more to stop it. CNN Laurie Segall spoke exclusively with Zuckerberg about where the company is headed and if his longtime colleague Sheryl Sandburg will remain in charge alongside him.


LAURIE SEGALL, CNN SENIOR TECHNOLOGY CORRESPONDENT: There's a lot of questions about Sheryl Sandburg's role and latest controversy, can you definitely say Sheryl stay in her role?

MARK ZUCKERBERG, CEO FACEBOOK: Yes. Look, Sheryl is a really important part of this company, and is leading a lot of the efforts to address a lot of the biggest issues that we've had. So, when you look at a lot of the progress we've made over the last 12 to 18 months on issues around elections or content, or security, Sheryl is leading a lot of that work. And she is been an important partner for me for 10 years. You know. I'm really proud of the work we've done together. And I hope that we work together for decades more to come.

SEGALL: You are CEO and chairman of Facebook. That is an extraordinary amount of power, given that you rule a kingdom of 2 billion people digitally. Shouldn't your power be checked?

ZUCKERBERG: Yes. I think that ultimately the issues that we're working on here, you know, things like, preventing interference in elections from other countries, finding the balance between giving people a voice and keeping people safe.

[03:55:00] These are not issues that any one company can address. But let me give you an example of a place where I think independent governance is really helpful. So one of the things that we're going to start rolling out soon, is basically, letting people in the community, get an independent appeal when they feel like their content is taken down in a way that doesn't fit with our community standards.

Now, you know, you post something. If someone else reports it, we might take it down if we find that it's hate speech or violates our policies. But if you disagree, you can be able to appeal and you'll also be able to appeal to an independent body. That is an example where, that independent body will have real teeth and power and will be transparent in the decision that they're making. And if I want to overrule that independent body, then I'm not going to be able to.

SEGALL: You're not stepping down as chairman?

ZUCKERBERG: That is not the plan.

SEGALL: That is not the plan. Would anything change that?

ZUCKERBERG: I mean, eventually, overtime. I'm not going to be doing this forever, but I certainly am not currently thinking that makes sense.


NOBILO: Facebook founder and CEO, Mark Zuckerberg, talking exclusively there with our Laurie Segall.

You've been watching "CNN Newsroom." I'm Bianca Nobilo. "Early Start" is next for our viewers in the United States. And for everyone else, "CNN Newsroom" with Hannah Vaughn Jones starts after this break.