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Connect the World
Apple's Shock Profit Warning Drags U.S. Markets Down; Partial Government Closure Enters Day 13, No End in Sight; Nancy Pelosi Expected to Reclaim Role as House Speaker; Paul Whelan Given Access to lawyers, Charges Still Unclear; Protests Turn Deadly as Women Enter Indian Temple; Saudi Trial Begins for 11 Suspects in Khashoggi Killing; British MPs Request Access to Jailed Saudi Activists; Huge Milestone for Chines Space Program;
Aired January 03, 2019 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:00] ROBYN CURNOW, CNN HOST: Hi there and welcome to CONNECT THE WORLD. I'm Robyn Curnow live from Atlanta. Great to see you.
There's been a shocked profit warning by Apple that has sent the markets lower and brought up wider questions about the state of the Chinese
economy. Also, the U.S. stocks are now dropping sharply on the news, just look at these number, just 30 minutes into the trading day. Take a look at
the tech-heavy Nasdaq in particular there. Meanwhile, it's a contagion from Apple's cut in its profit forecast, does that -- this is the first
time this has been happening since 2002. So Tim Cook, the CEO, says the biggest factor is a bigger than expected slowdown in iPhone sales in China.
This is what he had to say.
(BEGIN VIDEO CLIP)
TIM COOK, CEO, APPLE: So as we look at what's going on in China, it's clear that the economy began to slow there for the second half and what I
believe to be the case is the trade tensions between the United States and China put additional pressure on their economy.
(END VIDEO CLIP)
CURNOW: Those words are stunning investors. So, let's unpack it all. Alison Kosik at the New York Stock Exchange, Anna Stewart's in London.
Alison, I want to come to you first. We are seeing the numbers on the stock exchanges but what about the new numbers from Apple? And what impact
are they having where you are?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: OK, so we got these number, Robyn, last night, after the closing bell. Apple saying, listen, our
earnings are coming out at the end of January, but here is a warning for you, before those earnings come out. Our revenues for the final quarter of
last year are going to be $84 billion instead of the range that was estimated anywhere from 89 to $93 billion. This is a huge miss for Apple.
Plus, it's revenue for the first quarter is expected to come in light as well. So we've got that outlook that is worrisome for investors as well.
Look, Apple has suddenly become the poster child for what everything Wall Street is worried about. It's worried about a slowdown in China. It's
worried about the U.S./China trade situation and it shows how that's going to impact companies. There it really shows just how vital China is in the
global trade picture. That when China slows down, it can quickly impact those multinational company. And it is not just Apple. You know, we're
just a few weeks away from the next earnings season, and it's not just going to be Apple. It could be Starbucks. It could be GM. It could be
Volkswagen that are singing the same tune -- Robyn.
CURNOW: Yes, I think you make an excellent point there. I think one analyst described it as a death cocktail for sentiment, these concerns
about a trade war and a slowing economy in China. So to you, Anna, clearly, you know, this is going to have global implications, so what are
we seeing in Asia and Europe so far?
ANNA STEWART, CNN REPORTER: Yes, we're seeing the contagion effect for sure. We had a choppy session in Asia, opened with some pretty big
declines, recovered mostly through the session. I would say it is a similar story in Europe. Opened with big declines. If we look at them
now, you will see the FTSE 100 has now crossed over into the green and while the DAX and the CAC are still down around 1 percent.
However, you've got to look at this for other big global brands. While China accounts for 18 percent of Apple's revenue -- at least it did last
quarter -- that's the same story for many big names. Allison mentioned VW and GM. That's the case there. China is a bigger market for revenue than
the U.S. or Europe. And they actually mentioned in their last earnings reports this China slowdown. Starbucks, same story. Over the summer, they
warned about China's slowdown despite the fact that they are really putting their hopes and dreams on China for growth. Because they're opening a
store there every 15 hours. So, yes, this slowdown has huge implications across the board for various brands in different markets.
CURNOW: Yes, I mean China is the world's biggest market. There is also a political dimension to this. Alison, to you there in New York Stock
Exchange. I mean, President Trump has made a big deal about acting tough in terms of its relation -- the U.S.'s relationship with China, about
saying that America won't be taken advantage of, all of these tariffs, the trade war. Is this hurting China in a way that will really backfire for
American consumers and American companies?
KOSIK: It very well could. And we're already seeing an impact. Wall Street, I mean look, President Trump uses Wall Street as a barometer for
his success. Clearly, he is having huge issues on that front, with the volatility we've seen. Even the Dow is down 3,500 points, since its peak
in October. And you talk about backfiring, yes, so one thing President Trump was cheering was China's stock market plunge. But that stock market
plunge was indicative of the economic slowing happening there.
[10:05:00] And so you're seeing, you know, all of that, that concern, and that sort of undercut of confidence seeping over here to the U.S. markets.
Which is why we're seeing the U.S. markets down so much as well. So yes, it is backfiring. You know, President Trump saw it as a win that he's
pressuring China, and that it is impacting their stock market, but guess what? It's impacting our stock market, too.
CURNOW: Yes, and I mean, this is definitely a story that could dominate this coming year. Anna and Alison, both of you, thank you for your
expertise.
KOSIK: You go it.
CURNOW: OK. So, an economic slowdown in China has piqued everyone's interest. Certainly the impact has been felt, but Beijing would prefer our
attention is focused on its historic achievement that was announced on Thursday. China says it has landed a rover on the far side of the moon.
"CNN TALK" asked a panel of experts and you the viewers, is China now calling the shots on earth, and beyond? Take a listen.
(BEGIN VIDEO CLIP)
STIG ABELL, EDITOR AND PUBLISHER, TIMES LITERARY SUPPLEMENT: A cynic might say that China is pursuing the tactic which lots of governments do, when
things aren't possibly going brilliantly at home, you find places away from home to draw the eye towards. And the moon is a very, very good place for
doing it. And to demonstrate that you can compete with other big power, not the least the States, in terms of space exploration, is a very
straightforward message. It's possibly because they might be concerned about underlying problems at home. They've got problems with population
growth, or rather population reduction. They've got problems with the economy. So this is a nice flashy glittery, oh, look, there is a screw on
approach. Because lots of governments do. And space seems to be -- maybe have been inclusive at the moment, because Germany in pursuit of buy ideals
that will benefit all of human kind. But I'm not sure it is.
(END VIDEO CLIP)
CURNOW: And later in the show, we will speak to a physics professor from Mullard Space Science Laboratory about China's achievement.
OK, so I want to talk now also about an historic day in Washington. In just about two hours' time, a new Congress will be sworn in on Capitol
Hill. And you can see from this picture, it is pretty obvious, isn't it, a record number of women are taking their seats in the new Congress. Which
is also most racially -- the most racially and ethnically diverse ever. It marks a fundamental change to President Trump's presidency. The Democrats
will now control the House of Representatives. But it's not all bad for Mr. Trump. His Republicans of course retain control of the Senate.
So, let's bring in Stephen Collinson and our Lauren Fox both are in Washington. Lauren, you're there at Congress. I want you to talk us
through these new faces. What does it mean?
LAUREN FOX, CNN REPORTER: Well, it is an historic day up here on Capitol Hill. It's a new era. And it feels a little bit like the first day of
school. You know, in a few hours, Nancy Pelosi is expected to be re- elected, to be the house speaker, that comes after nearly a decade of Republican control in that chamber. Now, after she swears in as the new
speaker, she will have members of Congress, she'll swear in the 116th congress, and there are historic number of women. You have the first
Native American woman, ever elected to Congress. You have the first Muslim members ever -- first Muslim women members, excuse me, ever elected to
Congress. It is a huge day in Washington. But of course like you mentioned being overshadowed a bit by the government shutdown.
CURNOW: It certainly is, and do we have any sense, Lauren, are you there, I know you're speaking to Democrat, what their focus is going to be. What
are they going to start over?
FOX: Well, today they are going to try to end that government shutdown. They will have a vote on six Senate-passed bills as well as a continuing
resolution that would take Congress -- would fund the Department of Homeland Security into February. But don't expect that to go anywhere in
the Republican-controlled Senate. The Majority Leader Mitch McConnell has already made it very clear, he is not interested in bringing a bill to the
floor that the President won't sign. And because the bill does not include the $5 billion for the border wall, Trump has already said, it's a no go
for him. So Democrats are trying to regain the control of the Congress, make a statement to the American people, look, we're here and you would can
govern, but it doesn't look like their first bill is going to go anywhere in the Senate.
CURNOW: OK. It is fascinating stuff happening in the next hour or two. But Stephen, I mean, overshadowing this important day, as we have just been
hearing is this ongoing shutdown. It is in the 13th day. People aren't getting paid. Now you said there is a shift in power on Capitol Hill.
What does this mean?
STEPHEN COLLINSON, CNN WHITE HOUSE REPORTER: I think for the short term, Robyn, it means that the shutdown isn't going to end any time soon. The
reason for that is, is that neither side has a political incentive to end it. The Democrats don't want the first act of their new majority to cave
in to Trump on the issue that matters more to him than anything else. Financing the wall. The symbol of his 2016 election win which was
humiliating for Democrats.
President Trump meanwhile took America into the shutdown because he was worried about the criticism of right-wing conservative commentators, and
right-wing members of the House -- in the previous House, the Republican House, before Christmas.
[10:10:03] If he climbs down, and says to Democrats, OK, well, we can open the government without wall funding, he's going to get that backlash and it
will be multiplied, bigger than would have been before Christmas. So the shutdown will end when either side decides that they're being politically
damaged by keeping the government closed. Those forces will have to come together in a confluence. But right now, in the new balance of power, in
Washington, they're all going in the opposite direction. And that is why I think we're going to have to go through a number of days of political
posturing before we get close to a resolution of the government shutdown.
CURNOW: Broadly and looking beyond all the political posturing perhaps over the next few days or even few weeks, Stephen, why does this mark such
a fundamental change in the Trump presidency? And how is this going to impact the Trump presidency at large?
COLLINSON: For the last two years, Robyn, the President has had this cocoon of a Republican monopoly on power in Washington. Now, he is going
to face oversight and investigation from the Democrat House. Ultimately, that could end up in the Democrats deciding to move towards impeachment
proceedings, if special counsel Robert Mueller comes back with a damning report, whenever that happens. But life, when you are a Republican, and in
the -- or when you're a President in the White House, who has to deal with one or both houses of Congress in the hands of the other party can be very
miserable.
Trump aides are going to be hauled up to Capitol Hill. There are going to be subpoenas, sort of volleying towards the White House, demanding
information. There's already a bill underway. Which Lauren has written about already. Trying to get Trump's tax returns for the last ten years.
So all of the things that Trump was able to either cover up or keep from the scrutiny of Congress and the American people over the first two years
of his presidency, it's going to be much harder for him to do that now.
CURNOW: And we also are going to potentially see a faceoff between the President and this rather formidable woman, Nancy Pelosi. Lauren, to you
there. What is she like? How many ways does she define this new era? And what are we going to expect from her?
FOX: Well, of course, she made history as the first female speaker of the house. But she's tough. And she's a tough negotiator. Now it's unclear
exactly whether or not President Trump thinks he has an easier time negotiating with her, than perhaps other Democrats on Capitol Hill. But
you know, she is going to stand firm. She said, no money for the President's wall.
And you have to remember, she is up against her own caucus as well. There are a lot of new liberal members who don't want her to give in to the
President. They want her to stand firm. They say that we were elected for a reason. The American people sent us here with a message that we would,
you know, put a backstop to the President's power, and they don't want her to bow down or give in. So expect especially in the next few days that she
is going to be holding firm to that position. And, you know, I think it will be a while until this shutdown ends.
CURNOW: OK. Stephen Collinson, Lauren Fox in Washington, thanks to you both, appreciate it.
So you're watching CONNECT THE WORLD. Live from Atlanta. Still to come, what we've learned, and we've learned some new stuff, and still waiting to
learn about the American accused of spying on Russia. We're live with that, stick with us.
[10:15:00] (COMMERCIAL BREAK)
CURNOW: Now for our top story, right now, take a look at those numbers. We are less than an hour into the trading day in New York, and we're seeing
some significant losses, including for the tech-heavy Nasdaq. Now, that of course is contagion from a shock profit warning issued by Apple. We're
talking a lot about that in the next hour or so.
You're watching CNN. I'm Robyn Curnow. This is CONNECT THE WORLD. Welcome back.
Now, while the markets are a focus for the U.S. President, another thing on the minds of the Trump administration is the fate of an American accused of
spying on Russia. Russia, we know, allowed U.S. ambassador John Huntsman to visit with Paul Whelan on Wednesday. Whelan's family says Paul has been
given access to lawyers but the details of the charges against him have not been revealed by Russian prosecutors. Whelan is a security consultant and
former member of the U.S. Marines. His family says he was only in Russia for a friend's wedding.
So, let's bring in Matthew Chance in Moscow. This has been going on now for nearly a week. Just take us exactly where we are now. He's still in
custody and he has spoken at least or had counsel access.
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, he has and there was some time between the detention of Paul Whelan, on December 28,
and the point at which yesterday, he was given access to U.S. diplomats. It was actually, John Huntsman, who's the U.S. ambassador to Russia, who
visited Paul Whelan, that former U.S. marine, who's being held on suspicion of espionage, in the Lefortovo prison. Which a former KGB facility as a
matter of fact in a suburb of the Russian capital.
The statements issued by the embassy and by the State Department said that the ambassador had met with Paul Whelan. He had offered to him his support
and the support of the embassy. He had also afterwards spoken to Mr. Whelan's family who are of course deeply concerned about his welfare and
have been proclaiming Paul Whelan's innocence when it comes to these charges of espionage.
But that's the only detail that we were given. For the interest of privacy, considerations of privacy, the embassy said that they weren't
going to go into any further details about the conditions or the circumstances, most importantly, of the arrest of Paul Whelan. All we have
on that is the small short statement that was originally issued by the FSB, the main security service here in Russia, when they arrested Paul Whelan in
the Russian capital. Saying that he was caught spying. That's the only detail we have, and there's been some speculation in the media as to what
that might be. But nothing substantial, filling in some of those questions, those gaps about the circumstances around this case -- Robyn.
CURNOW: OK. And we are also hearing more about this man, we're getting some details at least about his military past.
CHANCE: Yes, we are. First of all, we're getting a bit more of the background filled in about his contacts with Russia. They've been
considerable. And for several years, he's been traveling to Russia, it seems, both for business and for pleasure. And he's got a number of
friends, online friends, are these Russian social media page that he's had active for about 13 years in fact.
Many of them -- and I've been through the list of friends -- many of them are former or current members of the Russian security services. Which may
have actually been one of the reasons why he was flagged to Russian intelligence as being a potential espionage threat.
In terms of his military record, yes, we're getting a bit more background on that, too, CNN has obtained of course his military record and he has
served 14 years in the U.S. Marine Reserve. He was deployed on a couple of occasions to Iraq and combat duty. And he was eventually basically kicked
out of the military.
[10:20:01] After he was found guilty of a court martial of a number of acts larceny, so petty theft, writing checks that he didn't have the money to
cover in his bank account. Things like that. And bad conduct is what they called it, when they took him out of the military. So, a bit of back
ground like that but nothing really to substantial this idea, or this allegation, now, of course, made by the Russians, that he is a spy who has
been working for the United States.
CURNOW: Matthew Chance, live in Moscow, thanks, Matthew.
So let's get you up to speed on some other stories that are on our radar right now. You are watching a powerful storm, it is expected to hit
southern Thailand on Friday morning. Thousands of people have already fled islands in the Gulf of Thailand and the Andaman Sea. Now forecasters say
it could be the worst storm to hit the country in decades, with strong winds, high waves, and flooding. Tourists also being warned to seek safety
on the mainland.
And North Korea's top diplomat in Italy may have defected. Jo Song Gil and his wife have reportedly been missing since early November. And a major
South Korean newspaper claims he's seeking asylum in the West. If the report is true, Jo could be the highest ranking North Korean official to
defect since 2016.
And a British charity worker jailed in Iran, says she will start a hunger strike in two weeks, after being refused access to medical assistance.
Nazanin Zaghari-Ratcliffe was arrested at Tehran Airport in 2016 on her way home to London. She was given a five-year jail sentence on espionage
charges. She denies those accusations.
And in southern India, one person has been killed and hundreds of others injured and arrested. This is protesting conservative Hindu groups, have
virtually shut down the state of Kerala because of a Supreme Court decision to allow women of child-bearing age to enter an Asian temple. Two women
escorted by police did get into the holy site to worship briefly, but violence escalated when they were discovered. New Delhi bureau chief,
Nikhil Kumar, has the latest.
(BEGIN VIDEOTAPE)
NIKHIL KUMAR, CNN NEW DELHI BUREAU CHIEF: Violent protests over the entry of women at a major Hindu temple in India has turned deadly. With at least
one protester succumbing to injuries after two women broke with centuries of taboo to visit the shrine Wednesday. The pair age 42, and 44, became
the first women to access the Sabarimala shrine in southern Kerala State. After the India Supreme Court scrapped a ban on women age 10 to 50 from
entering the temple in September. The court said the rule was unconstitutional.
But many remain opposed to the opening up of the temple to women of all ages. Hours after the two women made history, a 55-year-old supporter of
India's ruling BJP political party, which is against the scrapping of the ban, saying the issue is a matter of religion and tradition, and not of
law, was injured, while protesting in Kerala. Police say he later died in hospital. And the two women who made history, as protests continue, they
will remain at an undisclosed location to ensure their safety.
For religious conservatives, the courts have no business wading into the matter. And they filed petition, calling on the Supreme Court judges to go
back and review their ruling. Those petitions will come up for hearing later this month.
But for many, many other men and women, among them, many devout Hindus, this all comes down to gender equality. They see the scrapping of the ban
as a blow against a repressive patriarchy that still, in 2019, continues to hold back India's women and girls. It's time for things to change, they
say. Nikhil Kumar, CNN, New Delhi.
(END VIDEOTAPE)
CURNOW: That's for that update there, Nikhil.
Well, our top story right now, we are less than an hour into the trading day in New York, and we are seeing some significant losses. Take a look at
this. Red arrows all the way through. Including for the tech-heavy Nasdaq. Now this is all contagion. Contagion from that shock profit
warning issued by Apple. And that is, of course, a real issue for Tim Cook as he looks for Apple sales in China in the coming year. We'll continue to
monitor these numbers of course, huge impact also on the European and Asian markets.
I'm live from Atlanta. This is CONNECT THE WORLD. Coming up, the trial begins for 11 Saudi men accused of murdering journalist Jamal Khashoggi,
but Turkey is not happy about it. We'll tell you why in just a moment.
And we speak to one of the British lawmakers who are investigating claims that Saudi women activists are being tortured. Stay with us for that one.
[10:25:00] (COMMERCIAL BREAK)
CURNOW: You are watching CONNECT THE WORLD, I'm Robyn Curnow, this is CNN. Thanks so much for joining us. Our top story right now, one hour into the
trading day in New York and we're certainly seeing some significant losses, including for the Nasdaq, of course, tech-heavy, and that is down over 2
percent. This is all contagion from a shock profit warning issued by Apple. Alison Kosik is at the New York Stock Exchange. As we have been
speaking in the last 20 or so, 30 minutes, there has been more moving and again, all coming from that rare profit warning coming from Apple.
KOSIK: Yes, that is really the bulk of why you're seeing the market sell off. But we saw the Dow accelerate those losses when a manufacturing
report came out showing that manufacturing here in the U.S., it expanded in December, but it came in short of expectations.
[10:30:00] That's worrisome to investors, because of course, the big worry about Apple is that the impact of the slowdown in China's economy impacted
Apple's revenue for the last quarter last year. Well, now we're seeing a bit of a slowdown in manufacturing here, although we're seeing an
expansion. But when you see the manufacturing come in short of expectations, that can really rattle the markets. So that's why we saw the
Dow tick even lower. Now down more than 500 points -- Robyn.
CURNOW: Ok, and this Apple warning, I mean this is a giant red flag. Is this a sense that Apple is breaking cover? Are we going to be seeing other
key companies making these sorts of statements?
KOSIK: I think you're going to see other companies definitely make these statements like this. I mean even if you look at the last earnings season,
more than a third of the S&P 500 companies, CEOs, on their earnings calls, mentioned how tariffs are concerning to them or how they're impacting their
companies.
So let's fast forward to a few months later. So we're getting another earnings season coming up in just a few weeks and the expectation is these
CEOs are going to be talking more about the tariffs, more about the uncertainties surrounding the U.S./China trade war. And some of the
companies up to bat that could be impacted the most are GM, Starbucks, Volkswagen, they do a huge chunk of business in China. So if Apple is
being impacted by China's economic slowdown, that means these companies could be impacted as well -- Robyn.
CURNOW: And the big question is with all of those companies that have exposure in China, how deep and wide is that exposure, and what kind of
impact will there be? Because of course China is the world's biggest market.
KOSIK: Right. So yes, China is the second biggest economy in the world, and if these companies have that kind of exposure, it's going to hurt their
revenue, and you're going so see that sort of ripple effect happen. Not just with the companies with the most exposure, but those with even just a
little exposure. I mean, what you're essentially seeing happen in U.S. stocks right now is a readjustment in prices based on how investors see how
it is going to be let's say just in six months from now. How this tariff and trade situation could affect companies moving forward. So, companies
that are a valued very highly, well that value is going to be readjusted lower, because the expectation is costs are going to increase for these
companies, if this trade war lingers on.
CURNOW: OK, Alison Kosik, keeping an eye on those numbers and certainly moving over there at the New York Stock Exchange. Thanks so much for the
update.
KOSIK: Sure.
CURNOW: OK, so in just over an hour, the U.S. will make history, with its most diverse Congress ever. A record number of Latinos, African-Americans,
and LGBT members have been elected. There is also a record number of female lawmakers. That puts the number now at 25 women in the Senate, and
102 in the House of Representatives. And that includes Nancy Pelosi who is expected to be named Speaker of the House, probably also in the next hour
or two. It would be her second stint in that role and she's the only female speaker ever. Pelosi's daughter actually spoke to CNN earlier about
her mom and this is what she had to say.
(BEGIN VIDEO CLIP)
ALEXANDRA PELOSI, DAUGHTER OF HOUSE DEMOCRAT NANCY PELOSI: She'll cut your head off and you won't even know you're bleeding. That's all you need to
know about her. No one ever won betting against Nancy Pelosi.
(END VIDEO CLIP)
CURNOW: Dana Bash recently spoke with Nancy Pelosi about the barriers she broke to be such a driving force on Capitol Hill. Here we go.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: This is your hood.
REP. NANCY PELOSI (D), SPEAKER OF THE HOUSE: Yes.
BASH (voice-over): To really know Nancy Pelosi, you go where it all started, Little Italy, in Baltimore, where she was born to Congressman
Tommy D'Alesandro and Annunciata D'Alesandro. When she was six, her father became Baltimore's first Catholic mayor.
PELOSI: He leapfrogged over the Irish. That was a big deal. But it took a political organizing to do that.
BASH: Much has been made of Pelosi's father's influence on her. Less known is her mother's.
(on camera): Your mom actually patented a device, the first device to apply steam to the face.
PELOSI: Yes.
BASH: Basically an at home facial.
PELOSI: That's right.
BASH: That's incredible.
PELOSI: That was incredible.
BASH (voice-over): Pelosi says her father and the times held her mother back in many ways but Annunciata D'Alesandro was a quiet force in politics.
PELOSI: My mother was very much a part of the organizing. My father was the orator, the public servant.
BASH (on camera): And your mother got stuff done.
PELOSI: Well, my brother called it her moccasin brigade, all of these women who would be part of getting the message out, being at events.
There are two things that I bring with me from my family in this regard. One is to know how to count. That's very important. Count your votes to
win the election. Count your votes to win a vote on the floor. But the other is, listen to the constituents.
BASH (voice-over): The D'Alesandro home was at the center of this Italian community.
[10:35:00] A vivid childhood memory helping new immigrants who knew where her father, the mayor and his family lived and would regularly knock on
their door asking for help.
PELOSI: Since I was a little girl, I knew how to tell somebody how to get a bed in city hospital. How to try and get housing in the projects --
because that's right here next to us. And because I heard my mother say it so many times.
BASH: After college, she wanted to go to law school. Instead, like many in her generation, she got married, and started a family.
PELOSI: When I got married, and I had a baby and another one, five and six years, people are always were saying, oh, she knew when she was a little
girl, she wanted to run for office. I never thought of that at all, ever, until I did.
BASH: The Pelosi's moved back to husband Paul's hometown, San Francisco. She became more and more active in the Democratic Party. But it wasn't
until her youngest daughter was a senior in high school that she ran for an open House seat.
PELOSI: I went to her and said, you're going to be a senior, mommy has a chance to run for Congress, I don't know even know if I'll when.
BASH (on camera): She said get a life.
PELOSI: She said get a life. And I did.
BASH (voice-over): When she first ran for House leadership 18 years ago, her male Democratic colleagues didn't get it.
PELOSI: When people said oh, there are a lot of the women are supporting Nancy, to run. And they said well why? Do the women have a list of things
they want us to do? Why don't they just make a list and give us the list? This is the Democratic Party in the year 2000.
BASH: She attributes her boundless energy to Italian genes it's certainly not a balanced diet. Dark chocolate and ice cream. Vaccaro's has been her
favorite since she was a little girl.
PELOSI: The chocolate. Not chocolate chip, but chocolate. I like my chocolate unadulterated.
BASH (on camera): How do you think that you wield your power as a woman differently than a man does?
PELOSI: Other people tell me if you're at a meeting or something, they'd say, do you understand how different that meeting would have been if a man
were conducting it?
BASH: Do they explain how?
PELOSI: Well you listen, you build consensus.
BASH: That's exactly what she did to get what she hopes will be enough votes for speaker again. Make compromises with Democratic doubters looking
for someone new, not her.
PELOSI: None of us is indispensable. But some of us are just better at our jobs than others and I have a following in the country apart from
anybody who has run for president.
BASH (on camera): For most women, frankly, you know, myself included, it is hard to say those words I am uniquely qualified. I deserve this. I
earned this, I can do this better than anyone else. But you can say that.
PELOSI: You know why I do it? Dana, I do it because I want women to see that you do not get pushed around. That you don't run away from the fight.
(END VIDEOTAPE)
CURNOW: That was a great conversation wasn't it? Thanks to Dana Bash for that.
I'm Robyn Curnow, live from Atlanta. This is CONNECT THE WORLD. Coming up, we are going to talk about alleged Saudi human rights abuses. They're
in the spotlight. The details on that in just a moment.
[10:40:00] (COMMERCIAL BREAK)
CURNOW: You're watching CONNECT THE WORLD. This is CNN. I'm Robyn Curnow. Thanks for joining us again.
I want to talk about a story that has certainly dominated our coverage for many week, the killing of Jamal Khashoggi in his country's consulate in
Istanbul. Well now a trial into his murder started in the kingdom today. A trial into his murder that is certainly going to be heavily, heavily
watched.
[10:40:00] The start of the trial, prosecutors announced they would be seeking the death penalty for five of the 11 suspects. Gul Tuysuz has been
following the story since it first broke three months ago. She joins us now from Istanbul. What do we know about this trial? It is not very much,
because there is so much secrecy.
GUL TUYSUZ , CNN SENIOR INTERNATIONAL PRODUCER: That's right, Robyn. Well, there's a lot of mysteries that are still surrounding this case, of
course, the biggest one is where is the body. But today, in Saudi Arabia, the first hearing for the trial in the murder of Jamal Khashoggi took
place. What we know about it right now is that there are 11 suspects who were tried, five of them are going to be, they're going to be tried with
the death penalty. So the Saudi Arabian public prosecutor's office coming out and saying 5 of the 11 suspects are going to be tried with the death
penalty on the table, for their direct involvement in the murder.
The Saudi public prosecutor's office also coming out and saying that this case is going to be pursued, that the investigation still continues. And
the other thing we know about the trial is that the suspects asked for a copy of the indictment that was written against them. And they asked for
additional time to prepare, which the court granted them.
But the Saudi public prosecutor's office also said one thing that was interesting, and sort of brings about how diplomatically charged this
incident has been. They said that they had submitted multiple letters to their Turkish counterparts. Asking for any evidence that the Turkish
prosecutors had in relation to this case. And the Saudis are saying that they have not received any of that evidence.
Now, a month ago, the Saudi prosecutor traveled to Turkey, and there was a meeting between the Turkish prosecutor and the Saudi prosecutor, in which
the Turkish statement in the heels of that meeting said that it seemed that the Saudi prosecutor was much more interested in trying to find out what
evidence Turkey had against the suspects than actually collaborating to try to uncover what actually happened in the building you see behind me. How
was Jamal Khashoggi murdered? Who gave the orders? And really what happened to him? And throughout all of this, with the trial starting
today, the big question that is still in the minds of Jamal Khashoggi's loved ones is where are his remains -- Robyn?
CURNOW: Yes, certainly is. Thanks so much Gul Tuysuz.
OK, a group of British lawmakers is pushing for access to female huge rights activists imprisoned by Saudi Arabia. NGO, Human Rights Watch says
in a report back in November that the women are being flogged and given electric shocks. Well, the report alleged they have been detained for the
role in the right to drive campaign and for advocating other freedoms. The Saudi government denied the allegations when they were first published.
Paul Williams is a member of the British Parliament and a special panel set up to investigate those claims. He joins us now from London. Those are
pretty bold claims coming from these NGO's. What kind of evidence are you basing your letter on?
PAUL WILLIAMS, MEMBER, DETENTION REVIEW PANEL: Hello, Robyn, and thanks for having me on today. There are some really serious allegations that
have been made. That this group of women activists have been not only detained by the Saudi government, but have been subjected to torture, to
sexual harassment. And what we've done is a group of us, a group of members of Parliament, from different political parties, have offered to go
and visit these women, and observe their detention conditions. Because as you rightly say, the Saudi Arabian government have said that the reports
are baseless. And yet Human Rights Watch and Amnesty International have made these really serious allegations. We are offering as completely
independent, noninvolved parties, to go in and observe, and see whether or not these women are being kept in conditions that are appropriate and in
conditions that meet international standards.
CURNOW: OK, how many of you are there? Do you think your wishes will be granted? And what did you say in your letter?
WILLIAMS: So there are three of us. A member of the Labour Party, there's a Conservative and a Liberal Democrat, so we represent members of
Parliament from across the political spectrum.
We are making a polite request to the Saudi government. I've actually visited Saudi Arabia before as a guest of the Saudi government and I saw
the things that they wanted me to see. On this occasion, I'm asking, and we're all asking, whether or not we can see something that we wanted to
see. And as your previous report showed, the Saudi government had a lot of catching up to do. Their reputation has taken a significant hit because of
the allegations around Jamal Khashoggi. And I think we're offering them an opportunity to perhaps redeem themselves. If they have been mistreating
these women, then there's a chance to put that right. And if they haven't, then why not let us go and visit them?
[10:45:00] CURNOW: Let's just talk about the Saudi response. They say these women have been charged with suspicious contact with foreign parties.
They say there's legitimate reason to hold them. I know we've got the official comment from the Saudis in terms of these allegations. But what
do you know -- there it goes there. What do you know and what is specifically being alleged here?
WILLIAMS: So it's been alleged that some of the women who have been beaten with a rope that's used to secure a head scarf. It's alleged some of them
have been electrocuted, that they have been subjected to sexual harassment. As well as being a member of Parliament, I'm also a doctor, and I have some
training and expertise in the medical documentation of torture. I would like to go and interview these women for myself, and to see whether or not
the allegations that we've heard from Human Rights Watch and Amnesty International have any substance to them.
CURNOW: These are women who were activist, pushing for women to drive. That's happened. It has come to pass. And many see that as a step forward
for women and for human rights in Saudi Arabia. What does this case tell you?
WILLIAMS: Well, I think I can't understand why these women have first of all, been detained. But even if they have been detained, there is no
excuse at all for mistreating them. But I think on a broader point, that the Saudi government, I would hope, would see people that are protesting,
people that are civil rights activists, as people that just want to encourage them to progress even faster with their reforms. The reforms
have been a step in the right direction. And I would like to see a Saudi Arabia where people that want to see progress are embraced rather than
imprisoned.
CURNOW: Dr. Paul Williams, thanks so much for joining us here on CNN. Appreciate it.
OK, you are watching CONNECT THE WORLD live from Atlanta. Coming up, a major milestone for China's space program. A spacecraft has touched down
on the far side of the moon. And these are the pictures coming in.
[10:50:00] (COMMERCIAL BREAK)
CURNOW: I want to show you some numbers here. Taking a look at the big board, down over 600 points. Stocks are sharply down on Wall Street. Take
a look also at the S&P and the tech-heavy Nasdaq. Look at those numbers also, firmly in negative territory. Trading significantly lower this day.
This is a domino effect, after Apple issued an unexpected cut, a bombshell, in fact, in its profit forecast for the first time since 2002.
Now the company is blaming China, among other factors, for a slowdown in iPhone sales. So that's of course adding to concerns about the Chinese
economy. We also saw similar sort of numbers across the global markets. So we're watching these very closely.
But for China, some much happier news on the space front. Earlier today, a lunar mission landed safely on the far side of the moon. It's the first
spacecraft ever to land on that side.
[10:50:00] Here's the first image of that mysterious lunar surface which is never visible from earth. The rover's assignments include exploring lunar
poles to look for water and other resources for future human exploration. So, let's talk to Andrew Coates. He's physics professor at Mullard Space
Science Laboratory at University College in London. Great to see you. How big and how significant is today's pictures? These images of the far side
of the moon, not the dark side, the far side.
ANDREW COATES, MULLARD SPACE SCIENCE LABORATORY (via Skype): The far side, yes. So, yes, it's the side which is furthest from us. The moon as it
goes around the earth keeps its same face all the time to the earth, which is why it always looks similar. Except, of course, for the phases of the
moon, which changes the lighting as we see it. So as it waxes and wanes and going to full moon and new moon. But we're always seeing the same
face.
So what they've been able to do is to land on the far side, the other side of the moon for the first time. And it's very significant because, of
course, the probe would have been out of contact with the earth, direct contact at the time when it landed. And so, it had to have a lot of
autonomy to be able to land like that.
But also, communication satellite, and orbit around the moon, to enable the pictures and the signals to be sent back. So it is a great technological
achievement to have been able to manage that, as the first nation to have done that. And so it is joining of course, other nations, which have
explored the moon, Russia, the U.S., and China, with an earlier orbiter and landed on the near side of the moon, and also India and the European space
agency. So all of those have had orbiters around the moon before. Some of which have seen the far side. This is the first time anybody has actually
landed on the far side. So it's very exciting.
CURNOW: It is exciting. And what exactly is this piece of equipment going to be doing? I mean there is certainly a lot expected of it. What are we
going to look for?
COATES: Scientifically, the interesting things are that it's exploring an area called the South Pole-Aitken Basin. So, this is the largest, the
deepest and the oldest basin on the moon. And it's 2 1/2 thousand kilometers in diameter and 13 kilometers deep. So, it was caused by a
collision about 4 billion years ago. Something like that. So well back in the history of the solar system. Certainly the planets are all about 4.6
billion years old. So this is quite early on in history when things were moving around and creating collisions and things like that.
So what this tells us about is potentially some of the moon's internal structure. It is going to do some measurements like that. But it is also
going to do measurements which show whether the moon could be used for radio astronomy. Of course, on the far side of the moon, it is radio
quiet. And so, that's something which they will be trying to test.
CURNOW: With that in mind, how did China actually overcome that? How do they communicate with the rover?
COATES: The way they communicate, yes, of course it's clever, with an orbiter. So, there's a separate spacecraft which is in orbit , which they
have as well. So they're using that orbiter to send the signals back to the earth. And that's how you need to do it, what you need to do. But you
can use that radio quiet to actually assess what it would be like for having a radio telescope on the moon. So it is quite an interesting thing.
CURNOW: So certainly to get a little busy up there. What does that mean broadly for space, the space race? Is this a threat to the U.S.? And
Russia? Particularly in terms of also Mars? Is there going to be a lot of using the moon as a stop-off point. Is it about the space station? Where
are we looking at in terms of China's ambitions here.
COATES: Well, China's near-term ambitions include this year, having a sample return mission from the lunar surface back to earth. And so, that
will be something which will land on the moon, bring a sample back for analysis on earth, and I mean, people do talk about potentially going back
to the moon, with humans, and that's a possibility. Of course, China has a human space program as well.
I think all of these programs are already quite complimentary really with the science that is being done by this mission. It's going to compliment
well things going on in other parts of the globe as well. I mean, for ourselves, we also have a joint mission with China, going in a few years'
time, to measure the earth environment. That's joint between the European Space Agency and China. And we have another mission, which is going to
Mars in a few years' time, joint between the European Space Agency and Russia.
So there is a lot of international collaboration in space. And that's personified really with the wonderful mission which ended recently, the
Cassini-Huygens mission, which went to Saturn, and Titan. And that was a great cooperation between the U.S. and the European Space Agency.
So international cooperation I think is going to be the future. And the Chinese are showing that they can do it. And showing that they can
collaborate as well as compete in space.
[10:55:05] So it's certainly an exciting time for space. Particularly with just this week, the pictures coming back from Ultima Thule, from the Kuiper
Belt, So absolutely wonderful time for space right at the moment.
CURNOW: Yes, certainly exciting times for physics professors for you. Andrew Coates, great to speak to you there from London. Thanks so much.
COATES: Thanks a lot.
CURNOW: In our parting shot today, having your movie turn into a viral sensation, should be a dream for a studio, but Netflix is upset about the
response to its film "Bird Box". The movie stars Sandra Bullock as a mother terrorized by monsters who causes others to commit suicides when
they see them. So, she puts blindfolds on herself and her children as they try to escape. Well that has spawned a "Bird Box" challenge online. The
fans trying to last as long as they can wondering around with blindfolds on. This is really not a good idea, is it? Netflix is urging viewers not
to try the challenge because it's worried people will get hurt as they blindly stumble around. That's about right.
I'm Robyn Curnow. No blindfolds involved. That was CONNECT THE WORLD. Thanks so much for watching. The news of course continues, I'll be back in
about five minutes time for the "INTERNATIONAL DESK". We've got lots to talk about, the markets and Congress in the U.S., so stick with us.
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