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NEWS STREAM

Bouncing Back Big Time, U.S. Stock Markets Rallied Late In The Day Once Again, But It Has Still Been The Worst December On Wall Street In Decades; A Call From Kurdish Fighters To The Syrian Government To Protect Them From What They Call A Turkish Invasion; Paying For Children, Or At Least Paying For People To Have More Of Them In Aging Japan. Aired: 8-9a ET

Aired December 28, 2018 - 08:00   ET

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

WILL RIPLEY, SENIOR INTERNATIONAL CORRESPONDENT, CNN: I'm Will Ripley live in Hong Kong, welcome to "News Stream." Bouncing back big time, U.S. stock

markets rallied late in the day once again, but it has still been the worst December on Wall Street in decades. A call from Kurdish fighters to the

Syrian government to protect them from what they call a Turkish invasion. And paying for children, or at least paying for people to have more of them

in aging Japan.

We begin this Friday with the global markets where the week seemed set to end just the way it began with roller coaster volatility and really, that's

the only reliable bet at this point. U.S. futures are pointing to a higher open right now after that dramatic recovery in the Dow towards the end of

Thursday's trading day. It turned around a 600-point drop. That rally then carried into Europe. All the major markets there gained this morning

after a very heavy sell-off on Thursday.

Now, the Asian close as you can see here was mixed. Markets in New York, well, they will be opening up in just about 90 minutes. And here to help

us get a sense of what's actually happening, what could happen, CNN's chief business correspondent, Christine Romans watching all of this unfold from

New York. Good to have you once again, Christine.

CHRISTINE ROMANS, CHIEF BUSINESS CORRESPONDENT, CNN: Hi, Will.

RIPLEY: Hi, there. So the key things that investors need to look for as the U.S. trading resumes later today, given what we're seeing play out in

Europe and here in Asia.

ROMANS: Well, look for stabilization really here and you want to see if there's just a small, steady stream of buying. You know, there's only one

more trading session after this one for the end of the year and it's been such a rough month, such a rough quarter that investors, quite frankly, are

shell shocked.

You know, I would say a lot of individual investors probably aren't making last minute moves at the end of the year unless you have tax loss selling

or you have some sort of technical reason to do so, I will say that volume has been pretty good all week, so it's not like this is a quiet end to the

year where the quiet markets are exacerbating the moves. Everybody is there and they're working.

So these big moves in the last couple of days, what you want to see, I think, is whether it stabilizes from here.

RIPLEY: You've been talking in recent days, Christine, about how important the White House handling of all of this is, but the one person you can

never really predict or control is President Trump himself. So depending on what he says and does, how much of an impact is that going to have on

the market?

ROMANS: Look, if you see him stop with the rhetoric against the Fed Chief, I think that's something investors truly, truly want to see. We're told

that the President's aides and the Fed are working about maybe getting the two of them together for a lunch or a face-to-face meeting in the beginning

of the year.

We know, of course, that Presidents from time to time do meet with the Fed Chief, but really, the Fed is an independent institution. Well, when a

private citizen criticizes or an economist criticizes the Fed for raising interest rates, that's one thing, when it's the President, that really

undermines confidence. So you want to see that kind of rhetoric go away.

We also know that the President has been kind of tying his own personal fortunes to the stock market. I mean, he really took ownership of the fact

that the stock market is by the way, still up about 20% since when he took office. He has really taken ownership of that and the peril of that or the

risk in that is then if you see a slowdown in the economy or you see the stock market come undone like it has in the past couple of weeks and

months, then is he going to own that, too?

So I think, it will be interesting to see if this President steps back from the day-to-day machinations of the market. We know that he is glued to it

like a reality TV show, so if he can kind of step back and not make any comments - that would be amazing. And the other thing here, too is that

the trade war, you know, which where you are, you know, full well that that is a really big story line heading into 2019 that just means potentially

more risk.

RIPLEY: And a big question mark, nobody knows what's going to happen with that. There are these obviously crucial talks expected to happen soon.

Should investors just get used to this kind of volatility, these extreme swings?

ROMANS: I mean, yes, I mean, I don't know about a thousand point in the Dow extreme swing. I think that was unusual, and yesterday was the biggest

rebound, the biggest sort of snap back, I think, in something like ten years. So those last couple of days were very, very unusual. And

investors, even highly, you know, active investors in the market, people who do this for a living, they are concerned and kind of scratching their

heads about why so much volatility at the end of this year and there are a lot of different reasons.

But if you look at all the worries on your list there, you can see each one of those things is a potential headline risk after ten years of the stock

market essentially going up. I mean, when you look at the S&P 500 returns over the past ten years ...

[08:05:09]

ROMANS: ... it cratered in the financial - in the recession, in the financial crisis, and then every year has managed to post even a couple of

years, very small positive gains. So this will be the worst year for stock investors in 10 years. A reminder that - don't get used to it just going

straight up.

RIPLEY: Christine Romans who will be watching very closely the opening bell less than 90 minutes away. Thanks, Christine.

ROMANS: You're welcome.

RIPLEY: It is all but certain that this sign, this one right here, "Closed," it's not coming down anytime soon, at least not this year. U.S.

House you Senate members, they met for just a few minutes on Thursday before adjourning. They have no plan to reopen the government, no end to

the partial shutdown which is now in its seventh day. And just moments ago, the U.S. President once again digging in.

In his latest tweet, Donald Trump is threatening to shut down the entire southern border if he doesn't get his way. CNN White House correspondent

Boris Sanchez joins us from the White House live with the latest on this increasingly ugly standoff.

Boris, okay, so we have this new tweet from the President. I ask you, does he have more to lose? Do Democrats who are opposing him on this border

wall have more to lose and is there any indication that either side might blink?

BORIS SANCHEZ, WHITE HOUSE CORRESPONDENT, CNN: No indication that either side may blink yet. Really, it's not a matter of who has more to lose at

this point simply because both sides are doing what their supporters want them to do. I can tell you that just a short while ago, I got a chance to

ask Press Secretary Sarah Sanders if the President really believes that having Nancy Pelosi as House Speaker would facilitate him getting what he

wants, that long promised border wall between the United States and Mexico.

She essentially said that it's up to the Democrats, that it's up to Nancy Pelosi. She repeated that line that we've heard from the administration

time and time again that Democrats care more about protecting undocumented immigrants than they do about taking care of American citizens.

As you noted right around that time, the President was tweeting, and here is that tweet from President Trump, he writes, quote, "We will be forced

the close the southern border entirely if the obstructionist Democrats do not give us the money to finish the wall and also change the ridiculous

immigration laws that our country is saddled with. Hard to believe there is a Congress and President who would approve."

The President, as you said, threatening to shut down the southern border which was already closed for a short time earlier this year as a result of

some of the members of the caravan attempting to get through in San Diego. It was a very short section of border that was closed. Nevertheless, the

President weighing a very hefty threat here.

As you noted though, yesterday, Congressional leaders essentially gaveled in and gaveled right out, not much time for deliberation or a potential

solution to the shutdown. At one point, the Democrats tried to bring to the House floor a stopgap measure that had been approved in the Senate.

That didn't work out.

So we likely won't see much progress on the shutdown, a deal for the shutdown to end until next Thursday. That's when the likely incoming House

Speaker Nancy Pelosi is said to be sworn in. The question, of course, is what happens after that? Democrats have promised that they will vote on

one of three measures to then end the shutdown, but it's not clear that those will pass in the Senate and I should point out, none of those include

any funding for the border wall -- Will.

RIPLEY: And that is a very serious threat by President Trump. I worked on the border for many years. The volume of trade that goes back and forth,

that would be an extraordinary perhaps unprecedented just chaotic situation on top of the fact that you have hundreds of thousands of Federal workers

who still don't have their paychecks and bills are coming due. Boris Sanchez, a lot for you to watch there in Washington, we appreciate your

reporting. Thank you.

SANCHEZ: Thanks, Will.

RIPLEY: Now to China where a court is scheduled to review the case of a Canadian citizen, a citizen accused of drug smuggling. Now, that's

supposed to happen on Saturday. The case apparently has been working its way through the Chinese legal system for some time. It is drawing new

scrutiny now, especially following these more recent high profile arrests both China and Canada.

CNN's Matt Rivers, he has it all for us in Beijing.

(BEGIN VIDEO TAP)

MATT RIVERS, CORRESPONDENT, CNN: Robert Lloyd Schellenberg has been in custody for years now for what one state run media outlet called, quote,

"smuggling an enormous amount of drugs into China," but it's the timing of his appeal hearing that has people talking.

There's not a lot of public info about this case. A spokesperson for Canada's Foreign Ministry said the Department has been following

Schellenberg's case and providing consular assistance for several years since he was detained in Liaoning Province by Chinese authorities. We

don't, though, have the confirmation about exactly how long he's been in custody, whether he was officially convicted or what his sentence was.

But still, this appeal hearing would suggest that he's been convicted of something and we might get more information about that soon. The appeal

hearing is being held this weekend in a court in the city of Dalian in Liaoning Province and it's not unusual for persons accused of smuggling

drugs in China to face stiff punishments.

In fact, anyone holding more than 50 grams of a controlled substance is potentially subject to the death penalty.

[08:10:10]

RIVERS: But all of this is happening as the current spat between China and Canada over the detention of a Chinese tech executive continues. Earlier

this month, Meng Wanzhou, the Chief Financial Officer of massive Chinese tech company, Huawei was detained by Canadian authorities. Huawei alleges

the Canadians did so on behalf of the United States, which accuses Meng and Huawei of evading sanctions Washington had put in place against Iran.

Canada's decision to detain her made Beijing extremely angry and state media, which is strictly controlled by the government here, swiftly called

for retaliation. It was shortly after Meng's arrest that two Canadians were detained by Chinese authorities here on suspicion of endangering

China's national security - vague, but serious allegations that so far, China has refused to elaborate on.

Those two arrests were widely seen as being payback for the Huawei situation. Now, it's not clear if this latest case involving Schellenberg

is linked to the Huawei case, but the fact that China has chosen to hear the appeal this weekend is certainly interesting.

It's also notable that no details were made public about Schellenberg's initial case or conviction, but his appeal is now being publicly confirmed

by authorities. Again, there is no official confirmation that this case is connected to Huawei, but it's not happening in a bubble, either. China's

judiciary is not an independent entity as in other places. The courts here are routinely used for political ends, so this case might target the

proverbial two birds with one stone, prosecuting an alleged drug smuggler while making Canada, Will, look bad in the process.

(END VIDEO TAPE)

RIPLEY: Matt Rivers in Beijing, thank you and we are live in Hong Kong. You're watching "News Stream" we're going to turn to Syria next and there

are some potentially significant fast moving developments happening right now and it all centers around this flash point. Manbij. Gul Tuysuz will

update us from Istanbul when we come back.

Also, it's the tenth day of anti-government protests in Sudan and there are now conflicting reports about the number of people killed.

(COMMERCIAL)

RIPLEY: Fourteen minutes past 9:00, as you look live at Hong Kong, you're watching "News Stream" as we are about to head into this last weekend of

2018. And we are following some potentially major developments in Syria right now. Now that the United States has announced plans to withdraw,

there are reports that U.S.-backed Kurdish fighters have pulled out of the northern City of Manbij and reports that they invited the Syrian government

into the city to protect them from Turkish forces.

Syrian troops say they have now raised their flag over Manbij, Turkey is skeptical about that claim. CNN's Gul Tuysuz is live once again in

Istanbul for us.

[08:15:10]

RIPLEY: So Gul, walk us through this. What's the significance of these reports if true, and do we know by the way if U.S. forces are still on the

ground in Manbij?

GUL TUYSUZ, SENIOR PRODUCER, CNN: Well, we're hearing from residents of that very strategically important town of Manbij that they are still seeing

U.S. patrols taking place in the city. So the U.S. troops, while they've been announced that they will be leaving Syria eventually are still there

in that city you that we're seeing all of this movement around.

Basically, what's happened is that the Kurdish fighting force, that's the YPG, who is the U.S.' main ally on the ground in Syria in the fight against

ISIS controls the town of Manbij. They've come out and called on the Syrian regime, the forces loyal to President Bashar al-Assad to come and

take control of the city that they control. Why? Well, because with the U.S.' departure, the Kurds there now feel that they are in a position where

Turkey could come in at any moment in an effort to expel them away.

So with the U.S.' decision to pull out of Syria, the Kurds, the Kurdish fighting force is looking for other allies and, really, when you look at

it, they don't have a lot of choices. They've always kept communication with the Syrian regime, with Bashar al-Assad's government, and now at this

time, facing down the threat of a possible Turkish invasion, they're calling on the regime to come in. And we saw movement around that.

They've raised flags in certain places, but at the same time, you have the Turkish backed free Syrian army units. They had been getting in position

in front lines near that strategic town over the last couple of days and they're saying that this is basically just a media ruse and that the

raising of the flag is nothing more than just a little bit of posturing, but that what's happening on the ground has not, in fact, fundamentally

changed and that the Kurds still control that area.

So a lot of uncertainty and really what we're seeing is in the heels of the announcement by the U.S., that they are going to be pulling out, you're

seeing the regional players and their proxies on the ground all jockeying for a good position moving forward in negotiations that are due to take

place -- Will.

RIPLEY: And I understand that the Turkish President has said, you know, flat out, he is skeptical as you mentioned, but if these reports are true,

how does that change the Turkish military's strategy moving forward?

TUYSUZ: Well, Will, the Turkish President basically came out and said that there is nothing conclusive on the ground, basically very skeptical. He

also pointed out that his top aides are going to be going to Moscow tomorrow in an effort to resolve some of these things.

Once the U.S. announced that decision, that they're pulling out their troops, of course, everyone is trying to make sure that they're in a much

better bargaining position. For turkey, fundamentally, the regime coming in is much more difficult. Once the U.S. departed, those Kurdish fighters

were going to be in a position where they were going to be vulnerable to a possible Turkish operation.

But once the regime comes in, it really changes the dynamics on the ground. The regime, of course, is backed by Russia and Iran. So it's a lot of

uncertainty at this point and we're going to have to see these kinds of maneuvers, I think, on the ground that are going to be largely symbolic,

but really setting the stage for stronger hands at the negotiating table -- Will.

RIPLEY: And, of course, the situation complicated potentially by the fact that U.S. forces, as far as we know, haven't really pulled out yet. Gul

Tuysuz, watching all of it in Istanbul, we appreciate it. Thank you.

Well, we are watching also the largest protest in Sudan in years. Anti- government demonstrations like this have been erupting and they started more than a week ago. Now, there are conflicting reports about how many

people have been killed. We know it has turned very deadly, at least 19 dead and more than 400 injured. The country's Minister of Information is

giving out that lower number. Amnesty International, they have a number much higher. They say the number of dead is already at 37.

The uprisings began over rising food and fuel prices, something so simple as people not being able to afford bread. But the protests are now

widening and they are including calls for the President to resign. Today marks the 10th day of demonstrations. CNN's Leone Lakhani joins us live

once again from London.

So, as you look at these numbers and there are some discrepancy here, but clearly this is a deadly situation, an escalating situation. Talk to us

more about the root cause of all of this.

LEONE LAKHANI, CORRESPONDENT, CNN: Yes, so, Will, as you mentioned, prices in Sudan have been rising for a while now, but there was a sudden spike in

some price of the food, like bread, as you mentioned, shortages of the most basics, like fuel, for instance, and that really kicked off about a week

and a half ago.

And we've seen these protests spreading from city to city quite quickly. Now, it's Friday and opposition groups have called for a large protest

right after Friday prayers. So we're watching the situation on the ground.

[08:20:10]

LAKHANI: But over the past week, we've had people describing some really dramatic scenes, clashes between protesters and government forces and there

was one human rights activist who told CNN, Khartoum looks like a battlefield.

(BEGIN VIDEO TAPE)

LAKHANI: As hundreds marched through the Sudanese city of Atbara, they are calling "Freedom, Freedom" they chant calling for an end to President Omar

al-Bashir's nearly three decades of rule. Protests that began nearly a week ago erupted over rising food and fuel prices.

(BEGIN VIDEO CLIP)

MARWA MAGEED, KHARTOUM RESIDENT (Through a translator): Everything has become very expensive and we don't know what is happening. It feels like

there's a ticking time bomb and we don't know when it will explode.

(END VIDEO CLIP)

LAKHANI: For now, there is no sign the anger will die down. A state of emergency was declared in Atbara after protesters targeted al-Bashir's

party offices. Speaking to his supporters on Tuesday, al-Bashir blamed the discord on external groups.

(BEGIN VIDEO CLIP)

OMAR AL-BASHIR, PRESIDENT OF SUDAN (Through a translator): Thank you for hosting me. Thank you for your support and enthusiasm, which is a response

to every foreign agent's traitor, outlaw and destructive person.

(END VIDEO CLIP)

LAKHANI: Protests have now spread across Sudan in the largest demonstrations in several years. In Khartoum, police disperse crowds with

teargas. In another mobile phone video, a demonstrator appears injured is carried away.

Amnesty International said on Monday, at least 37 people have been killed, but the main opposition group is calling for investigations into the

government's response.

(END VIDEO TAPE)

LAKHANI: Now witnesses have been describing many incidents in which they have said that security forces have been quite heavy handed in this

crackdown, including incidents in which security forces are using live fire, according to some of these witnesses. Now, there's been a lot of

concern about the violence.

Earlier in the week, the U.S., U.K., Norway, Canada, issued a joint statement in which they described - in which they talked about how

concerned they were about this violence, calling on the government to restrain themselves.

RIPLEY: Leone Lakhani, thank you for that update following this situation from our London bureau. It was a similar scene in the Democratic Republic

of Congo, protesters there have taken to the streets as you can see, outrage because the government is postponing voting in the Presidential

election, but the key here is that they're only postponing the votes in some cities. CNN's Michael Holmes reports on the growing outrage over

votes that may not be counted.

(BEGIN VIDEO TAPE)

MICHAEL HOLMES, CORRESPONDENT, CNN: Firing live rounds into the air and tear gas as well, security forces try to disperse protesters. Angry over

their exclusion from a long-awaited presidential election in the Democratic Republic of Congo. As the country votes for a new leader on Sunday, voters

in these three cities will have to wait months to cast their ballots.

They happen to be opposition strongholds against the outgoing President, Joseph Kabila who has been in power since 2001.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (Through a translator): They need to get us another President and if that doesn't happen, we will create chaos starting from

today until a solution is found. If it calls for us to die, then so be it.

(END VIDEO CLIP)

HOLMES: The Electoral Commission says the postponement in one city is due to violence there and an ongoing ebola outbreak in the east of the country.

Reportedly, the second deadliest in history. But the opposition says that's a pretext to take away their vote.

In Beni, demonstrators attacked an ebola isolation center, 24 patients fled. In the country's capital, supporters of a leading opposition

candidate marched on the headquarters of the Electoral Commission demanding the three cities be allowed to vote in Sunday's election.

(BEGIN VIDEO CLIP)

PIERRE LUMBI, CAMPAIGN DIRECTOR, LAMUKA OPPOSITION COALITION (Through a translator): The Congolese people who have already been very patient, who

have already accepted three postponements and even a two-year wait are saying enough. The Electoral Commission has just crossed a red line.

(END VIDEO CLIP)

HOLMES: This election is meant to lead to the first democratic transfer of power in the country, originally scheduled in 2016. Repeated delays have

sparked violence that have killed dozens. Then last week, another postponement reportedly due to problems deploying voting materials. Now,

scheduled for Sunday, the final results of the election are expected in January.

Although, it is unclear how the votes in the three excluded cities would ever be factored into the election. Michael Holmes, CNN.

(END VIDEO TAPE)

RIPLEY: Now we turn to Spain where a ship carrying more than 300 migrants has finally been allowed to dock. The ship was turned away from two other

countries -- Italy and Malta.

[08:25:08]

RIPLEY: The migrants are mainly from Somalia, Nigeria and Mali. Spanish Charity rescued them off the coast of Libya. Meanwhile, there has been a

sharp increase in the number of migrants crossing the English Channel trying to get to the U.K.

British authorities say, at least 50 people have made this dangerous journey and that's just since Christmas Day. Most are arriving in these

small, inflatable boats and they are really risking their lives as they try to cross one of the world's busiest shipping lanes, sometimes packing a lot

of people into one single boat. Take look at this from the French Coast Guard who has been intercepting some of these boats. Look at how many

people were packed in there, a very dangerous situation.

The U.K.'s Immigration Minister is calling this deeply concerning and partly blaming organized crime groups that charge large sums of money to

these people to carry them across the channel.

Now to Japan where in 2018, there was a record low number of babies being born. Things had gone so bad there, one town they are pulling out the

cash. We'll tell you what incentives they are offering couples to have children and why it seems to be working.

(COMMERCIAL)

RIPLEY: I'm Will Ripley in Hong Kong and you are watching "News Stream" on this Friday before the New Year. These are your world headlines. U.S.

futures pointing to a higher opening on Wall Street where there was just another day of market whiplash on Thursday. Trading begins in about an

hour. We'll see what happens on Wall Street.

In Europe, stocks were surging. Major markets there all up over 1.5%, you can see the green arrows. The Asian market close was mixed. New fallout

from the U.S. decision to pull out of Syria. U.S.-backed Kurdish forces withdrew from the northern city and flash point of Manbij. They also

invited the Syrian government in to block Turkish forces from entering the area.

The Syrian army says it has arrived in the city. They say they've put up their flag, but the Turkish President is voicing skepticism about that

claim.

In Indonesia, the government there is revising the death toll in Saturday's tsunami, and really for the first time this week, the number is going down,

slightly to 426. It was at 430. The reason for the discrepancy, there are apparently duplications in government recording.

Meanwhile, millions of people in Indonesia have gathered for Friday prayers, but the search for those missing after last weekend's devastating

tsunami presses on.

The personal information of nearly a thousand North Korean defectors has been stolen. Hackers targeted a computer at a nonprofit. It's a place

that helps defectors resettle in South Korea.

[08:30:10]

RIPLEY: So there would be a lot of information about where these people live, their phone numbers, that kind of thing, maybe even their jobs. The

center is operated by the Hana Foundation, which was set up by the South Korean Unification Ministry in 2010. This is obviously very concerning for

the people whose information was stolen, fearful of what could happen to them, but a Ministry spokesman tells CNN, so far, no harm has been observed

due to the leak.

By and large, the Koreas are looking towards 2019 and they're going to be listening very closely in the south to a speech from North Korean leader

Kim Jong-un. He is expected to give his annual address on January 1st. During last year's speech, the North Korean leader extended a rare olive

branch to the south and his words, which were then interpreted and acted on by President Moon Jae-in of South Korea, that kicked off months of

diplomacy, reconciliation between the two Koreas. In fact, just two days ago, we saw this, a ground breaking ceremony for a project that could

eventually reconnect rail and road links between the north and south.

Earlier, I spoke with the Director of Korea Risk Group, Andrei Lankov and I asked him what he is expecting to hear from Kim Jong-un in his New Year's

day address.

(BEGIN VIDEO CLIP)

ANDREI LANKOV, DIRECTOR, KOREA RISK GROUP: Nobody expected such a charm offensive that North Korea started about a year ago. So, Will, surprises

are possible. But on balance, I think that he will confirm he is prepared his view to continue talk. Not just because the North Koreans just want to

do in time and to wait Donald Trump out. So to say, to diffuse the tensions, which are getting very dangerous and risky for them, so there

will be some - probably some promise concessions, but nothing radical because if people expect North Korea's denuclearization, I have to

disappoint them, it is not going happen.

(END VIDEO CLIP)

RIPLEY: Another development off the Korean Peninsula, there is a new video that Japan has released. It claims to show a South Korean ship using fire

control radar against one of its patrol aircraft. That's a type of radar that tracks targets in a weapon system. South Korean Defense Ministry is

denying Japan's claims saying this video simply shows a plane making a turn and an pilot in an exchange of words.

By now, you've probably heard CNN's reporting about Japan and their big time population problem. People are getting older and the fact is, not

enough babies are being born. It's gotten so bad, so concerning for the future of Japan that this year government figures show Japan had its

biggest ever natural population decline, the biggest in history. And they also posted a record low birth rate, just 921,000 babies for a country of

over 120 million people. That is the lowest number since they started keeping records in Japan back in 1899.

So what is being done about this? There is a town that's trying something different. Nagi is actually paying couples to have children and it seems

to be working. Joining me now is CNN digital producer, Emiko Jozuka who has done some really terrific reporting on this topic in partnership with

the Pulitzer Center.

Emi, it's good to have you on and you know, we have talked a lot about Japan's declining birth rate and aging population. But you found a place

in Western Japan that has found a way to buck this trend.

EMIKO JOZUKA, DIGITAL PRODUCER, CNN: Yes. So I visited a small town of around 6,000 people in Western Japan called Nagi that managed to double its

fertility rate from 1.4 to 2.8 over the space of nine years and it kind of became a success story amidst Japan's declining population story. And it

was interesting just to see the kind of perks that they offered to couples to boost and turbo charge fertility rates.

RIPLEY: And those perks are?

JOZUKA: For instance, couples are paid each time they have a child. They also provide school free allowances, day care services and things like free

vaccinations to help couples.

RIPLEY: I was reading, even subsidized housing as well, which makes me wonder, is this a financial burden for Nagi? I mean, not only paying

parents to have children, but also providing all of those other perks?

JOZUKA: Well, actually, the town hosts Japan's Self-Defense Force Garrison and for this reason, it receives extra funds from the government. And

also, I heard about town officials, you know, giving money out of their own pockets to try and turbo charge the town's fertility rate. And so it seems

like this town really wants to think ahead in the long term and boost fertility rates just to combat its own sort of declining and aging

population.

RIPLEY: Because they will need workers at some point, particularly in the coming decades. One statistic I found very interesting from your story,

the lowest fertility rate in all of Japan is in its largest city, Tokyo. Why is that?

[08:35:04]

JOZUKA: Yes, that's right. So amongst all of the 47 prefectures, Tokyo has the lowest fertility rate. I think this has something to do with how

sort of overpopulated it is and how densely built the surroundings are. You know, people who live here simply have to focus on their careers and

they just don't have much time to spend with their families.

And I think this is a problem or an issue that many young people or couples experience across the world.

RIPLEY: So what is Japan doing to address these huge issues, the lack of child care, the corporate culture that makes a work-life balance difficult

and is it going to be enough for Japan to reverse this trend?

JOZUKA: Well, I think in 2017, we did see some progress nationwide because one of the biggest issues for working women and also working men is the

lack of day care facilities in such urban areas like Tokyo. And I think this year, the number of children on waiting lists dropped to under 20,000

for the first time in ten years, which is really great news.

And I think also the government introduced two trillion yen spending package to expand free preschool and day care services for families, yes,

just in order to boost its fertility rate.

RIPLEY: Another piece of great reporting by CNN's Emiko Jozuka joining me here in Hong Kong and you can read Emi's story on cnn.com where she talks

about all of the changes in Japan, including how the gender roles are being re-examined. That's at cnn.com, thanks Emi.

JOZUKA: Thanks, Will.

RIPLEY: You are watching "News Stream" and we have live in Hong Kong on this friday. An Antarctic adventure is complete for an extreme sportsman.

We will tell you more about his solo trek across a continent.

(COMMERCIAL)

RIPLEY: This man right here, the oldest man in the United States, has lived longer and seen and experienced more than pretty much any of us could

even imagine. He is the U.S.' oldest World War II veteran and he has died at the age of 112. Richard Overton volunteered for the U.S. Army starting

in 1942.

He served with the 188th Aviation Engineer Battalion, an all-black unit that served on various islands in the Pacific. I want to show you these

photos taken in 2013, that's when then President Barack Obama honored Overton at a Veteran's Day ceremony.

In a statement on Thursday, the governor of the Texas called Overton an American icon, a Texas legend. Our thoughts and prayers are with his

family as we pay tribute to an extraordinary life of service.

A 71-year-old Frenchman is hoping that he can cross the Atlantic Ocean and he's going to do it, you can't tell from this picture right here, he's

going to do it in a barrel. It might sound improbable and this isn't exactly a barrel that you're thinking of. It's actually a sophisticated

capsule with a bed and a small kitchen, but still, technically a barrel. John Jacques Savin has sent off from the Canary Islands on Wednesday.

And he is planning to float two or three kilometers per hour across the ocean. Now, if all goes well, Savin hopes to reach the Caribbean by the

end of March in that orange barrel.

An American man has just made history in the Antarctic. He is Colin O'Brady and he says he's the first person to trek all the way across that

continent and he did it alone without assistance.

[08:40:10]

RIPLEY: He tracked his progress online using GPS. He is 33 years old. He calls himself an adventurer athlete. He posted on Instagram that the trip

ended with one of the greatest challenges, but also best moments of his life. He surged 129 kilometers in just 32 hours. O'Brady had been racing

another man across the continent since early November, also tracked by GPS.

Right now in Japan, the northern island of Hokkaido is dealing with very heavy snow as it prepares for holiday celebrations marking the end of the

year. Blizzards are expected, about 80 centimeters of snow is in the forecast for some areas, although keep in mind, this is one of the snowiest

places on earth, and they are used to dealing with lots of snow.

Authorities are warning holiday travelers if you're headed to that area and a lot of people do, it's a great area for skiing, but they could face some

significant delays this weekend.

Now we're going to talk about something that many people will be doing on New Year's Eve, drinking, but a lot of people think of champagne. This is

a Hungarian liqueur that has been a toast to the country's culture for centuries. It's exotic. It has a secret recipe and the Unicum Distillery

provides a tradition for the holiday season as we learn in "Destination: Budapest."

(BEGIN VIDEO TAPE)

NEIL CURRY, SENIOR PRODUCER, CNN: At this historic distillery in Budapest, more than a million liters of Unicum are aging in 500 barrels.

FRED ODZUK, CEO, UNICUM: It's a very sophisticated drink because herbs and spices from five continents come in time here from very exotic countries.

So we have roots from Malawi, for instance.

CURRY: Unicum was first produced more than two centuries ago as a remedy for indigestion. It was created by Jozsef Zwack, a doctor at the Court of

Vienna for the king of Hungary. The Zwack family began commercial production of the liquor in 1840.

ANNE ZWACK, CO-OWNER, UNICUM: I do some of the herb mixing of the most secret part of the whole recipe. Traditionally, it was the women in the

Zwack family who did that, so I've taken it over.

CURRY: The secret recipe has survived turbulent times. Production was interrupted by the Second World War and afterwards, the business was seized

by the communist regime, which produced an inferior imitation of the liquor after the family smuggled the recipe out of the country.

ZWACK: The family of course lost everything. There was no compensation involved in this confiscation.

CURRY: As communist crumbled at the end of the 1980s, Anne Zwack and her late husband finally managed to take back control of the company and the

family remains heavily involved today. More than a third of all liquors sold in Hungary come from the Unicum distillery. The drink is an

established part of Hungarian culture and along with the glittering Christmas markets, add a special seasonal spirit to Budapest at this time

of the year.

(END VIDEO TAPE)

RIPLEY: And that is "News Stream." Kristie Lu Stout will be right back here on Monday. I'll be back in 2019. Happy New Year. Don't go anywhere,

"World Sport" is next.

(SPORTS)

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