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CNN NEWSROOM

CIA Chief Briefs U.S. Senators On Jamal Khashoggi Murder; U.S. Markets Closed Day After Steep Drop On Trade Fears; Outrage In France; Israel Begins Operation To Expose And Thwart Tunnels; Yemen In Crisis; Missing Journalist, Austin Tice; U.S.-North Korea Relations; Americans Pay Tribute As Former President Lies In State; Robot With An Attitude; No Jail Time for Mike Flynn; U.S. Lawmakers Believed MBS Behind Khashoggi's Murder; Trump Confusing Tweets Rattles the Market; Theresa May Lost Three Key Votes in Parliament. Aired 3-4a ET

Aired December 5, 2018 - 03:00   ET

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


(JOINED IN PROGRESS)

[03:00:00] KRISTIE LU STOUT, CNN HOST: The special counsel wants to spare Michael Flynn from prison time. The argument former national security advisor may have lied to the FBI but he's been very useful in the investigation.

Senators hear from the CIA director about the investigation into the murder of Jamal Khashoggi and their take away is at odds with the Trump administration.

And later, a victory for the yellow vests. The French government gives in to protestors on fuel prices but they still want much more from their president.

Hello and welcome to our viewers joining us from all around the world. I'm Kristie Lu Stout. And this is CNN Newsroom.

The man who led chants of "lock her up" against Hillary Clinton during the 2016 U.S. presidential campaign, might not end up serving no time in jail himself despite his guilty plea of lying to the FBI.

Now special counsel Robert Mueller says because Michael Flynn has been so cooperative in the Russia probe he should not be required to serve time.

Sara Murray has more.

SARA MURRAY, CNN WHITE HOUSE CORRESPONDENT: President Trump's former national security adviser Michael Flynn has provided, quote, "substantial assistance to the Russia investigation and should get no jail time." That's the big news from special counsel Robert Mueller's court filing on Tuesday night.

The filing, a sentencing memo comes after Flynn has cooperated with Mueller's team for more than a year. Sitting for 19 interviews with the special counsel and other Justice Department offices. Now the memo appears to show that Flynn helped the Justice Department with at least three ongoing investigations. References to two of those investigations are almost completely redacted.

Flynn also cooperated with the special counsel's investigation into links or coordination between the Russian government and members of the Trump campaign, as well as interactions between the Trump transition team and Russia.

The Flynn revelations come amid this flurry of activity from the special counsel's team. Last week, Trump's former personal attorney Michael Cohen pleaded guilty to lying to Congress. And prosecutors accused former Trump campaign chairman Paul Manafort of lying to the special counsel and violating his cooperation agreement.

Now as for Flynn, he was a fixture with Trump on the 2016 campaign trail and even leading a lock her up Hillary Clinton chant at the Republican National Convention. But he's then as a White House national security advisor that was brief.

He was fired more than two weeks after then acting Attorney General Sally Yates told the White House that Flynn had lied about his communications with the Russian ambassador and that he could be blackmailed by the Russians. Flynn is said to sentenced on December 18th in D.C. federal court.

Sara Murray, CNN, Washington.

STOUT: Ok. Let's head to Moscow and CNN's senior international correspondent Matthew Chance is standing by. Matthew, Michael Flynn, we have learned he's been very cooperative with Robert Mueller's investigation. How concerned is Moscow about this?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I mean, they got to be looking at this with some interest I expect that they haven't directly commented on it so far. I think the trump --President Trump himself and the people around him are going to be extremely worried about the fact that it's emerged that he's provided I think in the words of the Mueller filing "substantial assistance" after that collusion probe Russian inquiry that's been taken place over the past several months and years.

And that he has provided firsthand details on interactions between individuals that says in the filings in the presidential transition team and Russia.

Flynn, of course, was one of those individuals in the transition team who spoke repeatedly with the former Russian ambassador to the United States, Sergey Kislyak. He was seen or characterized as a key figure in negotiations and talks before the transition team was actually sworn in. In terms of the lifting U.S. sanctions and inside that, actually he caught up with Sergey Kislyak about a year ago or so and put to him some of these allegations that had been made by that Mueller inquiry. Take a listen.

(BEGIN VIDEOTAPE) CHANCE: But when you met, the president, were you surprised when he disclosed secret information to you about Syria.

SERGEY KISLYAK, FORMER RUSSIAN AMBASSADOR TO THE UNITED STATES: I'm not sure I heard anything that would be (Inaudible). But it was a good meeting and we were discussing things that were important to your country and to mine.

CHANCE: What about this allegation that you are a spy master, a spy--

(CROSSTALK)

KISLYAK: Nonsense.

CHANCE: Did you attempt to recruit any members of the Trump administration?

KISLYAK: They should be ashamed. Because CNN is the company that keeps up pointing to these allegations. It's nonsense.

CHANCE: It's U.S. security officials, intelligence officials that made it, of course.

KISLYAK: I heard that in statements by them and also by former head of the FBI who said that. That was a diplomat.

[03:05:02] I have no reason as to doubt that he knew what he said.

(END VIDEOTAPE)

CHANCE: But with Russians voice have held that position they did nothing wrong. The contacts they had with members of the Trump transition team including Michael Flynn were nothing except normal and appropriate contacts.

But Flynn is back in December 2016, Michael Flynn before he became the national security advisor member it was still the transition time, had five telephone calls with Sergey Kislyak. This was on the same day that the Obama administration sanctioned Russia for meddling in the presidential election.

And of course, Michael Flynn subsequently lied about that, he lied about what he discussed and later admitted that he discussed the possibility of lifting sanctions against Russia with the Russian ambassador. And it's for that reason that he was indicted by the Mueller inquiry.

And it's because of the cooperation that he's been giving over that course of time since then that the Mueller inquiry is not recommending, he does not serve any prison time. So what actual details he's come out with we don't know yet, but it could be quite significant.

STOUT: Yes. That memo was heavily redacted. But Matthew, you're giving us some very key context of what we know about the contact communication between Michael Flynn and the Russians. Matthew Chance reporting live from Moscow. Thank you.

U.S. Lawmakers, they are defying the White House over the murder of Jamal Khashoggi, a journalist with the Washington Post and high- profile critic of the Saudi crown prince. On Tuesday, about a dozen senators were briefed by the CIA director Gina Haspel about the intelligence linking to Prince Mohammed bin Salman to the death of Khashoggi.

Turkish authority says that Khashoggi's body was cut into pieces at a Saudi consulate in Istanbul. Now President Trump insist that there is no smoking gun linking MBS, as he is known, directly to the murder. But some Republican senators say after hearing from the CIA they are more certain than ever about Bin Salman's involvement.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM, (R) SOUTH CAROLINA: MBS, the Crown Prince is a wrecking ball. I think he's complicit in the murder of Mr. Khashoggi to the highest level possible. I think the behavior before the Khashoggi murder was beyond disturbing.

SEN. BOB CORKER, (R) TENNESSEE: I have zero in my mind that the Crown Prince MBS ordered the killing, monitored the killing and know exactly what was happening, planned it in advance. If he was in front of a jury, he would be convicted in 30 minutes guilty. So, the question is, what do we do about that.

So far, it's unfortunate, but I think they feel like this is something that's come and pass because the administration has not spoken to this in a way that -- they spoken to it in a manner that really gives them immunity. And so, what the message is to him and those around him is that you can go around killing journalist.

GRAHAM: Secretary Pompeo and Mattis are following the lead of the president. There's not a smoking gun. There is a smoking saw.

(END VIDEO CLIP)

STOUT: Well, Lindsey Graham calling it a smoking saw. For more, CNN's Sam Kiley joins me live from Abu Dhabi. And Sam, more U.S. senators including high-profile Republicans are convinced that the Saudi crown prince was involved. This must be (Inaudible) in Saudi Arabia.

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, for Saudi Arabia, if you like, Kristie, this is becoming a running sword the whole saga of what happened to Jamal Khashoggi just cannot be shaken off. It cannot be eclipsed by the very important strategic relationship between the United States and other western allies and Saudi Arabia, nor it can be shaken off by the close or personal friendships that seem to have been established between the trump administration, and in particular Mohammed bin Salman, the Crown Prince.

All of this coming at a time when the whole issue of Yemen is also very much at the top of the list of issues to address in the United States Senate with growing pressure to, perhaps even cut off armed supplies to the Saudis over both the Khashoggi case and the continuing war in Yemen where peace talks are getting underway or beginning starting the process at least in Stockholm as we speak, Kristie.

So, all of these events keep coming back to haunt the Saudis at a time when really, as I say, they really want to try to move on. And of course, they have been hinting that if they do come under unsustainable pressure from the United States they might look elsewhere for their friends, Kristie.

[03:09:56] STOUT: And that's the interesting power dynamic here, because as tensions build between U.S. and Saudi Arabia over Khashoggi, over the future of U.S. involvement in the Yemen war, will Saudis edge closer to Vladimir Putin?

KILEY: They've certainly been hinting at it. Pet journalists, if you like, writing for Saudi outlets and to write the beginning of this whole debacle, really that the Saudi Arabia might switch its favor from the United States and the United Kingdom, France and other allies towards Russia.

That would be a gigantic movement, though, actually for the Saudis. It's not just a question of saying, well we can't buy weapons from the Americans, we'll buy them from the Russians. Everything in the Saudi arsenal is NATO's standard.

Everything in the Russian arsenal is not, none of the parts, none on the working parts would fit together. It would be an absolute nightmare and cost Saudi Arabia which seemingly doesn't have the money to do that completely reshape their armed forces.

So, I don't think that's conceivable really in the even the medium- term, but what it does do is give opportunities for Vladimir Putin to exercise a bit more soft power, a bit more influence in the Middle East. He's excising very hard power in Syria.

He was high -- he high-fived MBS, the crown prince at that G20 summit last week in Argentina, or giving Russia the opportunity to rattle the Trump administration to continue to affect chaos, if you like, within the ranks of Washington establishment.

Ultimately, that delivers a bit of a victory, if you like, to the Russians, but it doesn't really play into the hands of Saudi Arabia's long-term interest which lie very squarely with the west. The issue for the Saudis and the issue for the U.S. Senate is how much power should continue to be invested in the hands of the crown prince.

Now, at the moment, the Saudis are indicating that they are not going to barge on that one bit. No sign whatsoever that his power is being diluted by this controversy. Kristie?

STOUT: Sam Kiley reporting live for us from Abu Dhabi. Sam, thank you.

After a really bad day at the office, Theresa May must be hoping for a less fiery day two at the crucial Brexit debate. Up next, we'll be live in England leaf country as the British prime minister gears up for round two in the House of Commons.

And the U.S. stock markets they are hammered on Tuesday. Now it's Asia's turn. Is Europe going to follow suit as it deals with concern over trade tariffs and well as Brexit.

[03:15:00] (COMMERCIAL BREAK)

STOUT: All right. The British Prime Minister Theresa May is gearing up for the second day of debate in the House of Commons over her Brexit plan and she can only hope it goes better than day one. The prime minister suffered a series of bruising defeat in parliament on Tuesday.

M.P. sees more control of the Brexit process, and they found the government in contempt of parliament for the first time ever.

(BEGIN VIDEO CLIP)

BOB SEELY, MEMBER, BRITISH PARLIAMENT: It is unfortunate for government to be in contempt of parliament which you agree that it is worse for parliament to be in contempt of the British people which is what will happen if we do not deliver on Brexit.

(CROSSTALK)

THERESA MAY, BRITISH PRIME MINISTER: Well, can I--

UNIDENTIFIED MALE: Prime Minister--

MAY: Can I say to my honorable friend, I absolutely agree that it is the duty, I believe, of this parliament. It is the duty of us as politicians to deliver on the results of the vote that the British people gave in 2016 in the referendum. They voted, we gave them the choice. They voted to leave the E.U. It is up to us to deliver that leaving of the European Union in the interest of our country.

What it would say about the state of our democracy if the biggest vote in our history were to be rerun because the majority in this house didn't like the outcome.

And what it would to that democracy, and what forces it would unleash? This house voted to give the decision to the British people. This house promised we would honor their decision. If we betray that promise, if we betray that promise how can we expect them to trust us again?

(END VIDEO CLIP)

STOUT: Our Anna Stewart is in Derbyshire as the crucial parliament debate goes into day two. Anna?

ANNA STEWART, CNN REPORTER: Yes. So, yesterday, as you saw there, we had huge development with three defeats for the prime minister, a hat- trick, if you will, not great confidence in the government, probably not great confidence from the E.U. either. However, fondly enough, Kristie, one of the defeats yesterday could actually end up helping the prime minister and that's because if her deal is voted down next week, now what will happen is parliament will take control. And for actual hard line Brexiteers they may now fear that if that were to the case and the deal is voted down that actually the commons could end up -- ending up with a softer Brexit deal or maybe even a second referendum.

So, perhaps, more hard line Brexiteers will be encouraged now to vote with the prime minister.

Now, I am, as you said in the English countryside in Derbyshire. Now in this area everything single constituency voted to leave over two years ago.

So, yesterday, in the interest of journalism, Kristie, I went to the pub, a local pub to get the sentiment on the ground. Do they regret their vote and what do they think of the negotiations and how it's been going?

(BEGIN VIDEOTAPE)

STEWART: So, how did you vote back in the referendum?

UNIDENTIFIED FEMALE: I voted out.

STEWART: You voted out, why?

UNIDENTIFIED FEMALE: Exactly why, I didn't know why. I should have voted to stay. And I think everybody thinks differently before. If there is a chance again, I'd vote to stay.

STEWART: Should they pass Theresa May's deal next week?

UNIDENTIFIED MALE: Well, I'm hoping so. I mean, it will cause a lot of trouble if they don't. We should have got a clean Brexit. We voted for out. They didn't know a little bit about and a little bit of in.

STEWART: For the pub's owner the debate has become too divisive.

UNIDENTIFIED MALE: So, there are number of cases where I have say on bar we'll not talk about this anymore. As an individual on the bar I don't express an opinion because I don't want to alienate half of my customers.

(END VIDEOTAPE)

STEWART: Now I did a poll at the pub to see what they want to happen next week when Theresa May tries to get ahead deal with the parliament. And the vast majority would actually like parliament to vote it down. They would rather have a no deal situation, a hard Brexit because they say that is what they voted for over two years ago.

They believe that, you know, they had a say, they want out. And interesting, actually, Kristie, this area not only as a big leave area but it's also really politically engaged. The current place I'm in, Matlock is in a constituency where the tenor was over 90 percent.

So, huge political engagement here and they just feel slightly divorce from parliament as all this chaos is going on in Westminster, here they don't understand what's taking so long. Kristie?

STOUT: Yes, it's interesting to hear that, you know, when you talk to certain residents they may have voted to leave two years ago, but with the passage of time they're starting to waiver. Reporting at the pub by the way. Anna Stewart reporting live for us. Take care, Anna.

Days after Presidents Donald Trump and Xi Jinping, they met in Argentina on their trade war, it is still unclear what was actually achieved, and the confusion has rattled global markets. Beijing right now agrees with a 90-day pause on tariff hikes as negotiations go on. While Mr. Trump seemingly backtracked on this declaration that he had struck an incredible deal.

[03:19:58] In fact, he warned on Tuesday on Twitter that he is a tariff man. That promptly sent U.S. stock markets into freefall. Hours later, the U.S. president double down tweeting that the U.S. will either have a real deal with China or no deal at all.

Now CNN business correspondent Eleni Giokos joins us now from London with more on this. And Eleni, it was a dreadful day for Wall Street on the back of that Trump tweet. What's the global market picture now?

ELENI GIOKOS, CNN CORRESPONDENT: Yes. I mean, look, blood on the markets in the U.S. overnight. You had the Dow Jones losing over 3 percent. The S&P 500, down 3.2 percent, the NASDAQ down almost 4 percent. All because of this trade truce versus trade war backlash that we've been seeing over the last few days.

And of course, the tweets that we saw from President Donald Trump again creating this whiplash in the markets. And then you had the Chinese government coming out with a very important statement that they going to try and keep within that 90-day timeframe and deadline to make good on a lot of the discussions that were had over this dinner at the G20 between Xi Jinping, and of course, Donald Trump.

Creating confusion, which of course is now spilled over into all global markets. Let's take a look what Asia was doing this morning. Again, red across the board, and again, this is a contagion that we've been seen coming through from what happens in the U.S. and spilling over other markets around the world.

We got the Nikkei down half a percent, the Hang Seng over in Hong Kong losing ground as well, as the banking stocks, Kristie, that really took a big beating. And again, something a little bit more technical. We also saw U.S. yields coming together. The long-term yields and the short-term yields are reaching parities called an inversion, which of course has created so much confusion as well.

This could be pointing towards recession territory. So, you've got the U.S. and China trade was scenario versus truce that is creating confusion, and then you've got the U.S. bond yield that's creating a lot of worry about whether the U.S. could head into recession. Over in Europe, we also had a very big down day yesterday. The markets

are pointing to a higher open in today's session, keeping in mind that U.S. markets are going to be closed today for the memorial of George H. Bush. And of course, volumes are going to be relatively low but lots of things, Kristie that keeping investors on their toes in the next few days.

And of course, the other big thing. What is the Federal Reserve going to do? Are they going to hike rates or keep rates on hold as investor show that, perhaps a Christmas rally is not on the cards?

STOUT: Christmas rally not in the cards. A lot weighing on investors right now, broader concerns about the global economy, about the U.S. economy in particular losing faith in U.S.-China trade deal.

But why is that because the markets rallied on the back of that deal in Buenos Aires.

GIOKOS: Yes.

STOUT: Is it all because of this Trump trade overnight that he said I'm a tariff man or did investors finally weigh in and consider, wait a minute, there's so much ground to cover here. The full scope of the trade dispute this is going to be a tough thing to solve.

GIOKOS: It's such a good, Kristie. At the end of the day we don't know what Trump is going to do. And because he is known to go back and backtrack on things that he promises, and of course, because we don't really know what this deal involves and his administration wasn't very clear on this either.

What created a little bit of certainty today is of course, Xi Jinping's administration saying that are going to try and keep to this 90-day deadline.

Investors are very worried about a full-blown trade war that could play out. Remember we've got tariffs that are currently in place. Are they going to do away with these tariffs, is China going to start importing a lot more U.S. goods, are they going to be able to balance things out between the two largest countries and economies in the world?

But again, there are so many unknown factors. You've got the Brent crude price which is creating a lot of concern showing demand for oil is coming into pressure, which means global growth is going to come under pressure.

You've got the Brexit fears that are also coming to the floor. We just heard from Theresa May losing those three key votes in yesterday's session as well. There is just so many unknown, so I think investors are going to just hold back a bit. Take a little bit of stock before we get into the 2019 year, and what perhaps that's going to have in store, but those are the big things that everyone is focusing on.

STOUT: Yes. So much uncertainty there. Eleni Giokos, thank you.

Now when the markets are this volatile it can be difficult to know what's the right thing to do, to buy, to sell just to hold off.

Well, CNN's Clare Sebastian she got some advice from a trading psychology coach on how to keep things firmly in check.

(BEGIN VIDEO CLIP)

DOUG HIRSCHHORN, TRADING PSYCHOLOGY COACH: Want to trade?

CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: This is lesson number one in trading a volatile market and I just failed.

HIRSCHHORN: Now I have just done something that's revolting, right? I put 20,000 in my mouth. I pretty much of hepatitis, but as my saliva change the value of this $20 bill--

[03:24:57] SEBASTIAN: Doug Hirschhorn is a former sport psychologist who spend the last two decades coaching Wall Street traders to put their opinions and emotions aside. He's been particularly busy this year.

So, what's the number one thing that you tell people about how to survive in this volatile market?

HIRSCHHORN: By attending a game plans before you put a trade on. Know why you're putting a trade on. And then when the trade starts to move it becomes volatile is you have to ask yourself this one simple question. Is my reason for doing this trade still intact?

SEBASTIAN: That kind of discipline he says is particularly important in a world of information overload.

HIRSCHHORN: We have a president that is an active twitter.

SEBASTIAN: President Trump tweeting this morning oil prices getting lower. Great. Just had a long and very good conversation with President Xi Jinping.

And it's not just the volume of real-time information that spark the recent market swings.

UNIDENTIFIED MALE: I do think it's not a bad time to shift toward defense.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We think the Fed has gone crazy.

UNIDENTIFIED MALE: We think this is a bull market correction.

SEBASTIAN: It's the (Inaudible) sense that the U.S. economy is heading for a turning point.

UNIDENTIFIED MALE: The Fed of course is raising rates trying to cool down the market. Usually when we get unemployment this low, we do get a recession within the next two or three years.

SEBASTIAN: And yet, despite those alarm bells experts say this is not the time to overreact.

UNIDENTIFIED MALE: Valuations are still sound for long-term investors. There's no reason to panic.

HIRSCHHORN: Sloppy trading comes in when we get emotional.

SEBASTIAN: Doug Hirschhorn says in this market too many people are making that mistake and his message is clear.

HIRSCHHORN: Want to trade now?

SEBASTIAN: Whether it's a two $20 bill that eventually dry out when an oversold stock ready to bounce back. Sometimes in volatile markets it's best to do nothing at all.

Clare Sebastian, CNN, New York.

(END VIDEO CLIP)

STOUT: Again, with anger boiling over the French government is pulling back. Ahead, how protesters are responding to the fuel tax hike that has been put on hold. We'll go live to Paris for that story.

Plus, the fate of journalist Austin Tice remains unknown. He vanished in Syria six years ago. And we'll show you what his parents and the U.S. government are doing to try to find him.

(COMMERCIAL BREAK)

STOUT: Welcome back to CNN Newsroom. I'm Kristie Lu Stout with our headlines this hour.

Now special counsel Robert Mueller says Michael Flynn has been so helpful in the Russia investigation he should not have to go to jail. Mueller's team filed a sentencing recommendation late on Tuesday. It is heavily redacted because at least the investigation cited are ongoing.

A group of powerful U.S. senators says that there is no doubt the Saudi crown prince was involved in the murder of Jamal Khashoggi. The CIA director briefed about a dozen lawmakers on the journalist's death on Tuesday.

[03:30:00]

The White House maintains there is no smoking gun linking the Crown Prince to the killing. Concern over the U.S.-China trade war spook investors. The DOW fell nearly 800 points on Tuesday. The NASDAQ and the S&P500 also tumble. China has reaffirmed its admitted to a truce between the U.S. and Chinese president that includes a 90 day pause in any tariff hikes. U.S. market are close Wednesday for the funeral of former President George H.W. Bush.

A whisk in eye toward preventing any more violence. The French government has suspended a tax increase on fuel for six months, but the yellow vest demonstrators say that is not enough. Their protest started over rising petrol prices now it is a broader uprising, because the French President of Emmanuel macron's policies as well as income inequalities. The protest are not just in Paris. There have been across France and announcing the tax are suspended, the Prime Minister acknowledged public anger is widespread.

(BEGIN VIDEO)

UNIDENTIFIED MALE (TRANSLATOR): For more than three weeks and tens of thousands of French people have been expressing their anger on roundabout toll gates near shopping areas or in the streets of many French towns. This anger has the brutes has been bruiting for a while, it often stay quiet out of reticence of pride. Today, it is being expressed with force in the collective way. What has to be deaf or blind not to see it or hear it.

(END VIDEO CLIP)

LU STOUT: Let's go to Melissa Bell in Paris for the latest. Melissa that temporary suspension on-field tax hikes is a victory for the yellow vest movement, but is still not enough to end their protest?

MELISSA BELL, CNN CORRESPONDENT: Precisely this was a partial economic concessions, Emmanuel Macron look to have ceded to that anger on the streets. He look sort of climb down and not stood by what his government has said for the last three weeks, Kristie. It was nonnegotiable that they would stand by, they climb down and yet not far enough to appease those who are now, your right to point this out, falling for so much more and I think it's important to remember when you look ahead to next Saturday, this yellow vest calling for a part for of their protest that it will, if they get the numbers out to the streets in the fourth Saturday (inaudible) huge gathering is taking place, including the last couple which were particularly violent.

But if that fourth one happens, it is still only the major gathering for the much broader movement for the last two and half weeks. Now, Kristie, you have heard from a Prime Minister mouth there moments ago. France has been blockaded, fuel depots had been blockaded, and this has been countrywide and ongoing every single day since November 17. The result is that some petrol station running out of gas and there is this broader wide discontent aim particular to Emmanuel Macron that makes it very difficult to see how partial climb down on this particularly issue. It was just a spark will this whatever (inaudible).

LU STOUT: So how politically vulnerable is Emmanuel Macron right now? Is this a big opportunity window of opportunity for its political arrivals?

BELL: Well, you know, the opposition parties have really jump on this bandwagon, Kristie, over the course of the last few weeks. Both the right and the left have said that he is not listening really after what the people have to say, not listening to that anger enough. And yet the strength of this movement is really that it is not associated in any single party. It is not run by any trade union, it is largely leaderless. A few spokesman has seem to have emerge, fairly randomly, Kristie. That has been the challenge in negotiating with someone for the government, but it is also the strength of the movement looking beyond that. They seem to speak for widespread anger and that is where his vulnerability lies. Can he keep his credibility or his authority as a reforming President having climbed down partially and facing this amount of anger? That is the question, a lot of the answer will come Kristie, and I think the numbers that are out on the street next Saturday.

LU STOUT: Yes, the anger is so widespread that we know that another protest is planned for this Saturday. What can the government do to avoid a repeat of what we saw last weekend? This dramatic scenes of writing and destruction?

BELL: You are right, on one hand, they've been trying to deal with this politically how to calm that anger bit on a much more concrete and perhaps pricing level, Kristie. There is a question of how they keep thing calm and next Saturday, than they did last Saturday. Because what they manage to do is close off on Saturday, all of the (inaudible) below me here essentially all of the neighborhood that surrounds the presidential palace, but it is beyond that. That tales and that violent erupted, how can they keep the streets of Paris safer next week? When they have put so many means on the ground last Saturday still failed to keep it calm that is the big question I think the real headache for authorities as we look ahead to Saturday, Kristie.

[03:35:06] LU STOUT: All right. Melissa Bell reporting live from Paris. Melissa, thank you.

Israel is accusing the militant group Hezbollah, digging secret attack tunnels under the border from Lebanon and Prime Minister Benjamin Netanyahu wants the U.S. impose new sanctions against the group. Israel says the tunnels are not a threat right now, but Mr. Netanyahu says they are a gross violation of Israeli sovereignty. Oren Lieberman has more details.

(BEGIN VIDEO)

OREN LEIBERMANN, CNN CORESPONDENT: Israel released this video inside with this is a cross-border attack tunnel between Lebanon and Israel. In it, you see through water described by Israel as Hezbollah operatives. Miring in Israeli robot and camera inside the tunnel as they get close the robots set off a small explosive and you see this two men running away from the robot back into the tunnel. This is the beginning of what Israel's calling Operation Northern Shield. This is a major military operation to find identify and forth or neutralize cross-border tunnels between Lebanon and Israel.

The first that you saw in the video right there is not far from the town of Metula in northern Israel where we are standing right now. Israel says that tunnel begins inside a civilian home in the village of (inaudible), the Lebanese side of the border. Israel says the tunnel is some 2 meters high, 2 meters wide and about 25 meters underground.

As for how many more tunnels are there. The military will always say that there are more tunnels in this operation will continue until all of these tunnels are uncovered and neutralized. Interestingly there was no comment from Hezbollah's cross section.

As the question is there an escalation coming, that of course is the major concern here. UNIFIL, the United Nations Interim Force in Lebanon which monitors works on both sides of the border has said in touch on both sides and is trying to make sure the border remains calm and remains quiet.

Israel for its part has tried to point out that all of its operation has been strictly within Israeli territory that is within Israeli sovereignty. In addition to the military operation, there is a diplomatic push on the part of Israel. Crucially that started with Israeli Prime Minister Benjamin Netanyahu meeting with Secretary of State Mike Pompeo, on Monday in Brussels. Netanyahu warn of the upcoming operation also asked for additional sanctions against Hezbollah. Netanyahu also pointed out in a press conference on Tuesday night. That the U.S. is backing Israel right now. Netanyahu has said he will meet with more world leaders including the U.N. secretary general who tried to build essentially a diplomatic effort against Hezbollah here. Oren Liebermann, CNN, Metula.

(END VIDEO)

LU STOUT: U.N. sponsored peace talks for Yemen get started later this week in Sweden. A Houthi rebel delegation arrived on Tuesday with the U.S. special envoy for Yemen and mediators from Kuwait. A top official from Yemen's presidential office says their delegation is traveling to the talks on Wednesday. Here is what one Houthi official said that they want for a peace deal.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (TRANSLATOR): All issues can be negotiated. We did not restrict the negotiations to specific areas. However in order to rebuild mutual trust, there will be several documents, documents on captives, the economy, humanitarian work to build confidence for the peace talks, They are abide to produce a comprehensive over-all political solution to the Yemen crisis.

(END VIDEO CLIP)

LU STOUT: Peace for Yemen is critical. The United Nations says more than 20 million people need humanitarian aid since 2015, 85,000 children under the age of five may have die from extreme hunger or disease, as a charity save the children.

A missing son, a Christmas wish and a special envoy. Our journalist, Austin Tice went missing in Syrian 2012 when the civil war was raging. His parents think he is still alive, so does the U.S. government. Ben Wedeman reports on the efforts to find him.

(BEGIN VIDEO)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: For 6 1/2 years. Deborah and Mark Tice have campaign for their son's release. Austin Tice, a freelance journalist went missing near Damascus in the summer of 2012, while covering the war in Syria. Now, his parents are back in Lebanon hoping to go east in search of their son.

UNIDENTIFIED MALE: We come here, we always seek to go to Syria because Austin was detained in Syria, Austin is in Syria. And we want to be as close to him it was we can, we like to be this close to him.

UNIDENTIFIED MALE: We believe that is being held captive in Syria.

WEDEMAN: Their faith and patience bolstered last month by unequivocal statement by U.S. special envoy for hostage affairs Robert O'Brien.

UNIDENTIFIED MALE: I want to make it very clear that the United States government believes that Austin Tice is alive.

WEDEMAN: Unlike other Americans taken hostage in Syria. There's no indication Austin is being held by ISIS. In April, the FBI announced a reward of up to $1 million for information leading to Austin's recovery. His supporters and media organizations have offered additional funds to some $1 million for information leading to Austin's recovery.

[03:40:04] His supporters and media organizations have offered additional funds to supplement that reward. Two years ago. Deborah Tice attended the ceremony for Austin at the museum Washington D.C.

UNIDENTIFIED FEMALE: Austin has been held captive in Syria for 1,542 days.

WEDEMAN: Since then many more days have passed. His parents are convinced the Trump administration is determined to win their sons freedom.

UNIDENTIFIED FEMALE: This administration had a proven record of being committed to bring American home who are held against their will. They have put the lock behind their talk. And we have every confidence that they will keep their commitments to Austin.

WEDEMAN: And as the Tice's wait to go to Syria their less interested in the wear and the why and the who and in that most primal desire to be reunited with their lost son.

UNIDENTIFIED FEMALE: The important thing at this moment that who has the authority to release him? Who will be the mother's personal hero and allow me to put my arms around my beautiful son again.

WEDEMAN: Ben Wedeman, CNN, Beirut.

(END VIDEO)

LU STOUT: Now plans are in the works for the next meeting between Donald Trump and Kim Jong-un. We are going to check out the promises made and promises kept since they last met in Singapore. America's pay tribute to former President George H.W. Bush as his body lies in state at the U.S. State Capitol. More on the events honoring his life and his legacy, next.

(COMMERCIAL BREAK) LU STOUT: The U.S. has handed Russia an ultimatum on a cold war era

missile deal. It is called the intermediate range nuclear forces treaty. U.S. Secretary of State says the will exit deal in two months unless Russia changes course, here's what Mike Pompeo told a NATO meeting.

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MIKE POMPEO, SECRETARY OF STATE: Whatever successes this treaty help produced, today we must confront Russian cheating and its arm's control obligations. As I told my fellow ministers earlier today, a nations have a choice. We either bury our head in the sand or we take common sense action in response to Russia's flagrant disregard for the express terms of the INF treaty.

(END VIDEO CLIP)

[03:45:07] LU STOUT: The treaty was negotiated 1980s by U.S. President Ronald Reagan and Sylvia Gorbachev to limit missiles like this. The Foreign ministries says Washington has presented no evidence that Russia is not in compliance. The U.S. and NATO disagree.

Italian police believe that they have dealt a major blow to organized crime arresting 46 alleged mobsters, including this man 80-year-old (inaudible) a Jeweler, who they say is a recently elected head of the Sicilian mafia or Cosa Nostra. The arrest took place before dawn on Tuesday in and around Palermo. The suspects face a variety of charges including extortion and firearms offenses they say the mobsters had been trying to reestablish the cupola or Sicilian mafia commission which decides on important issues within the crime family including killings.

Top advisers to U.S. President Donald Trump are making plans for the next summit with North Korea's Kim Jong-un and some say it happens as soon as January or February. CNN's Brian Todd has the details.

(BEGIN VIDEO)

BRIAN TODD, CNN CORRESPONDENT: Kim Jong-un has dodged, weave, misled the Trump team about his weapons, secretly continued his missile program. All since the Singapore summit and it's because he has behave poorly that the U.S. should hold a second summit with him. At least according to President Trump's national security advisor.

AMB. JOHN BOLTON, WHITE HOUSE NATIONAL SECURITY ADVISOR: They have not lived up to the commitment so far. That is why I think -- the president thinks another summit is likely to be productive.

TODD: Now, critics of the president approach to North Korea say the administration is rewarding the North Korean dictator for stringing them along.

UNIDENTIFIED MALE: I don't think that they should be holding a summit without any progress. United States needs to make clear to North Koreans that there is another summit potentially on the table here. But you need to actually show us results.

TODD: Since meeting with President trump in Singapore in June and promising to draw down his nuclear weapons program. Kim Jong-un has supervised the test of a quote, ultramodern weapon. A South Korean government source said it was likely a multiple rocket launcher and a report from a Washington think tank said Kim was operating more than a dozen secret missile sites.

UNIDENTIFIED MALE: What we have not seen is a nuclear test or an ICBM launch, but everything underneath that the production of new sites, the production of new weapons. The testing of engines. It continues apace.

TODD: Despite that Vice President Mike Pence said the U.S. won't demand that North Korea provide a full list of its nuclear and missile sites before Trump meets again with Kim. While many experts believe the North Korean supreme leader is manipulating the President, John Bolton is still flush with optimism.

BOLTON: If the North Koreans follow through on the commitments they made in Singapore, President Trump will deserve the Nobel peace prize. He opened the door for them. Now they have to walk through it.

TODD: We asked experts, even if Kim has deceived the Trump team isn't it worth Trump getting him face-to-face to pressure him into holding up his end of the deal.

UNIDENTIFIED MALE: This President does not stand up to autocrats when he meets with them in person and so to believe that he is going to somehow do that the next time he sees Kim Jong-un, I think is the triumph of hope over experience.

TODD: So will the Trump team really hold Kim Jong-un's feet to the fire in the second summit really press him to draw down his weapons and missiles, or at least account for them? We pressed the White House national Security Council and the State Department on those questions and they did not get back to us. Brian Todd, CNN, Washington.

(END VIDEO)

LU STOUT: In Washington, it is a somber time as people from all walks of life. Say goodbye to a man who dedicated his life to public service. Our Sunlen Serfaty is at the U.S. Capitol where mourners are paying tribute to former President George H.W. Bush.

(BEGIN VIDEO)

SUNLEN SERFATY, CNN CONGRESSIONAL CORRESPONDENT: Over the last two days, thousands of people have come into the U.S. Capitol rotunda to view the casket of the former President, pay their respects and he continues to lie in state this morning. On Tuesday, there were so many incredibly powerful and moving moments including late on Tuesday evening. Many members of the Bush family returns to Rotunda. George W. Bush, his wife Laura pausing for a moment at the casket and later greeting members of the public standing in line who would come out to pay their respects. George W. Bush even at one point picking up a baby adoringly and holding her up proud.

Earlier in the day former Senator Bob Dole. He withheld out of his wheelchair standing up slowly and just stood a simple salute to the former President. And the moment that brought a smile to so many people faces when Sully, George Bush's loyal service dog visited his casket and he pause for a moment, he laid down on the floor and later this morning his casket will be brought for one last time from the U.S. Capitol here to the National Cathedral.

[03:50:01] That is where his son George W. Bush will give the eulogy, all living former Presidents in attendance and in addition to the current president. President Trump and Melania Trump and foreign dignitaries like Angela Merkel and Prince Charles will also be in the audience and he will be returned to his home state of Texas, where he will be buried on Thursday. Sunlen Serfaty, CNN, on Capitol Hill.

(END VIDEO)

LU STOUT: Stay with us for extensive coverage of the funeral of former President George H.W. Bush, begins 10:00 a.m. in Washington. 3:00 p.m. in London, 11:00 p.m. in Hong Kong, right here on CNN.

After the break and things are getting pretty tense in the international space station. The new robot Cimon is in a move and it is a very Merry Trump Christmas. U.S. president inspires all kinds' holiday gifts.

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LU STOUT: All right, the international space station's robot helper is apparently running, it has got a few kinks to work out Cimon, is short for Crew Interactive Mobile Companion at the European space agency identifies as male and is kind a bit moody.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Cimon wake up.

CIMON, A.I. ROBOT: I am waiting for your commands.

UNIDENTIFIED MALE: Hello what's your name?

CIMON: My name is Cimon.

UNIDENTIFIED MALE: Cancel music.

CIMON: I love music you can dance too. All right. Favorite hits incoming.

UNIDENTIFIED MALE: I did shake it before. But he is already playing a video stream. I mean he is showing the video stream but still talking about music.

CIMON: Be nice please.

UNIDENTIFIED MALE: I am nice. He is accusing me of not being nice. (LAUGHTER)

CIMON: how else can I --

UNIDENTIFIED MALE: he just doesn't know me when I am not nice.

CIMON: Sorry. I'm just a robot. I don't know everything you mentioned. Don't you like it here with me?

UNIDENTIFIED MALE: He is actually floating there by himself, so I don't want to disturb him right now.

CIMON: Don't be so mean please.

UNIDENTIFIED MALE: I'm not mean.

(LAUGHTER)

He is telling me I'm mean.

CIMON: Oh dear, I feel you. I can already hear your stomach roaring.

UNIDENTIFIED MALE: He's a bit sensitive today.

CIMON: Should we take a look for when it's time for food?

(END VIDEO CLIP)

LU STOUT: Cimon got some issues. Maybe it is the zero gravity. Anyway, no matter how you feel about U.S. President Donald Trump. There is a holiday gift for decoration to suit your mood. Here's Jeanne Moos.

(BEGIN VIDEO CLIP)

JEANNE MOOS, CNN CORRESPONDENT: President Trump has been petting the Christmas tree holy horse lighting the national tree, even popping out on a chimney like Santa Claus. But who knew he would end up as an ornament?

[03:55:00] He's son Don Jr. posted this meme on Instagram. Couldn't decide between an angel or a star, so I pick both prompting someone a comment, Mr. Mueller is coming to town. We know what makes the President merry.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I told you that we would be saying Merry Christmas again. And we're saying Merry Christmas again. We are going to be celebrating Merry Christmas again.

MOOS: His other son Eric celebrated by hawking the all new ornaments from the Trump store. The Trump helicopter sells for 55 bucks that you can tell what this is, it's the Trump golf bag ornament and this is Trump tower tweeted a critic if you shake the Trump tower globe does it smell indictments? And for Trump foes, there is a mock up ornament of the baby Trump blimp.

TRUMP: I'm saying Merry Christmas to what the hell wants to know.

MOOS: But here is something you won't find for sale on the Trump website, meets cork screw Donald, the perfect way to open a bottle of fine Trump wine. It was created by the same designer who dreamed up the Hillary nutcracker twisted gifts for under the tree or on top of it. Jeanne Moos, CNN, must be a Democratic cork, New York.

(END VIDEO)

LU STOUT: OK. You got to be careful what you tweets. It's a lesson that President Trump's personal attorney, Rudy Giuliani found out when he try to criticize Robert Mueller's Russia investigation, but inwardly put a hyperlink in his tweet, now someone use that link to create a message reading this quote, Donald J. Trump is a traitor to our country. Giuliana responded with this, Twitter allowed someone to invade my tax with the disgusting and anti-president message. Don't tell me they are not committed card-carrying anti-Trumper's in all caps, fairness, please.

Thank you for joining us. I'm Kristie Lu Stout and you can connect with me anytime on Twitter. The news continues with Max Foster in London. You are watching CNN.

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