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Eight Arrested in Hong Kong for Possessing Weapons and Explosives; Chinese Army Creates Concern about Possible Intervention; U.S. to Test New Missile to Counter Russian Threat; Aspiring Singer Entrapped by Producer Offering Him Help; Woodstock 50 Canceled; Democrats Cash in on Debate One-Liners. Aired 1-2a ET

Aired August 2, 2019 - 01:00   ET

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


(COMMERCIAL BREAK)

[01:00:00] JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Hello, thank you for joining us. I'm John Vause, you're watching CNN NEWSROOM. Ahead this hour, the truce in the trade war between the U.S. and China appears to be over with Donald Trump announcing a new ten percent tariff on Chinese imports, accusing Beijing of reneging on promises made months ago.

Another shock to the world economy now less than 100 days away. The Bank of England lowering economic forecast for the U.K. this year and next, as a no-deal Brexit comes increasingly likely, the British Pound tumbles get again. And Hong Kong protesters set to hit the streets again. Their ninth weekend of demonstrations, but police here at this time, they could be armed with more than placards and umbrellas.

American consumers can expect high prices for everything from iPhones to sneakers because of new tariffs on Chinese goods. Donald Trump announced another ten percent tariff on $300 billion of Chinese exports starting September 1st, accusing Beijing of not making good on promises made and given to Donald Trump by the leader Xi Jinping.

But China's foreign ministry says tariffs are no way to solve a trade dispute. U.S. financial markets went into a tailspin on the news. The Dow had been up more than 300 points but finished down 280. Let's take the markets in the Asia Pacific region. Also in the red, Hong Kong down by 2.3 percent, the Shanghai Composite down by more than 1.5, and then we had the Nikkei in Tokyo down by almost 2.5 percent.

Ryan Patel is a Senior Fellow at the Drucker School of Management at Claremont Graduate University. He's with us from Moab in Utah. OK, good to see you.

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT, CLAREMONT GRADUATE UNIVERSITY: Likewise.

VAUSE: OK. Trump's tariffs were meant to force China's restructure -- to restructure its economy, right. China has not and will not restructure its economy. So does this new ten percent tariff represent the doubling down on a failed strategy in an act of desperation by the administration in a corner and out of options? PATEL: Well, I don't know if it's desperation just yet. I mean, that extra ten percent is really, you know, a 10th of the GDP percentage on the overall scale of the economy. But what really this sense -- this is the psyche. We're talking about psychological warfare. This is what this is. This actually has more detrimental effect for the U.S. economy.

You know, potentially what has been going really well for the US economy has been consumer confidence, and unemployment, and those kinds of things, and this could cause inflation and less consumer confidence in businesses. And just in general uncertainty to China.

This -- actually, I think, by them doing this hurts the U.S. more than China, because it really just puts China in a position just to put their foot down. It's not really coming to the table, it's really kind of pushing it further away, and actually kind of proving the point that there is going to be more trade disputes and there should be uncertainty. To me, that's what he signaled in this.

VAUSE: Yes, you mentioned there's a lot of consumer goods will be hit by this ten percent tariff, almost everything may by Apple, we're talking footwear, we're talking clothing. I want you to listen to Donald Trump explain why in Trumpian land, U.S. consumers will not be impacted.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: China gets it because they have to pay it because what they do is they devalue their currency and they push money out. Our people haven't paid as you know, we're also charging them 25 percent on $250 billion. So we're taking in many billions of dollars. There's been absolutely no inflation, and frankly, it hasn't cost consumer anything.

(END VIDEO CLIP)

VAUSE: Can you make sense of that word salad?

PATEL: No. Right now, I don't want to eat a salad, but I mean, to me, the supply chain and the Institute of Supply Chain Management has come out and said it is a disruption. It is -- if you approving talk to any businesses, and you look at the S&P 500 right now, you know, the 50 percent of this -- of those sales are global. Their profits in quarter two are down 13 percent from last year.

So that's not that our earning season hasn't been great. This hasn't been on top of the appetite. I mean, I think to me, I think what's happening is rhetoric is it's not about the numbers anymore with him. I think he really wants to prove a point. And I don't really know how he's going to get China to come to the table when he's tweeting like this.

And he knows that this hasn't been a successful way. So there's more to this than just the China-U.S. trade.

VAUSE: And on Wednesday, we have the Fed Chairman who announced the cut on interest rates, the first in more than a decade. During that news conference, he mentioned the word trade 26 times. In the context of a rate cut being necessary because of escalating trade tension.

And the previous point the following day, Donald Trump put a ten percent tariff on you know, all trade with China. You know, this is a self-fulfilling prophecy.

PATEL: That is not a coincidence, John. I mean, he's proven -- I mean, tell me if I'm wrong. I mean, the Trump team and the Trump economic team kind of got what they wanted with the Fed cut not as much as they want, and they're pushing pressure even though Jerome Powell came out and said well, we're not really going to do more hikes.

Does this not put more pressure on the Federal Reserve to do more increase -- to decrease the interest rate? Of course, it will. I mean, they're going down that path. That's what the Federal Reserve will have to do if it keeps going down this spiral.

VAUSE: You know, at one point on Thursday, Donald Trump seems to just write off with one flitted statement the value of you know, about $700 billion worth of trade. Listen to this.

(BEGIN VIDEO CLIP)

[01:05:24] TRUMP: For many years, China has been taking money out by the hundreds of billions of dollars a year. We have rebuilt China. So now it's time that we change things around. If they don't want to trade with us anymore, that would be fine with me. We'd save a lot of money.

(END VIDEO CLIP)

VAUSE: Fine with me. OK, there's talking tough which is sometimes necessary in negotiations and then there's being ridiculous. Where would you put that statement from Donald Trump? Is it a tough talk or it's just asinine?

PATEL: He knows it's ridiculous. Come on. He's done -- I mean, you give him -- I'm going to give him a little bit doubt here. He's done some business across the world. He knows he can't. That's not -- he knows he needs China. Let's just be honest. He knows he needs China for going into the election of 2020.

These are just -- this is him -- this is typical Trump language and why you see other country heads and why China is not going to really take him seriously, and then they're going to have kind of -- it should be interesting to see what the Chinese government says in a few hours because it's not going to be pretty.

VAUSE: OK. Stay with us because another potential shock to the world economy is now less than 100 days away with a No Deal breaks it increasingly likely. The Bank of England is forecasting the economic growth for both this year and next in the U.K. will be slower than expected. That was the prediction back in May. It's now down in touch to 1.3 percent. The bank rejected calls to cut

interest rates holding steady at 0.75 percent. Officials added that a gradual hike is likely to be needed in the event of a smooth British exit from the European Union.

And with the Sterling falling off a cliff, the bank blames in part the Prime Minister Boris Johnson and his incredibly strong commitment to a Brexit at any cost.

(BEGIN VIDEO CLIP)

MARK CARNEY, GOVERNOR, BANK OF ENGLAND: It's relatively unusual to be in a situation where you have quite binary outcomes such as the country faces between the possibility of a deal and a smooth transition to some form of deep trading relationship with the European Union to no deal and an instant adjustment to a WTO trading relationship which is a very different thing.

(END VIDEO CLIP)

VAUSE: And you run this turbulence that we're seeing in the pound, it's similar to the you know, the turbulence that you see in emerging markets with their currencies. But I want you to listen to the new finance minister because everything is going to be just fine.

(BEGIN VIDEO CLIP)

SAJID JAVID, FINANCE MINISTER, UNITED KINGDOM: Well, since 2010, because of the policies of governments since then, because of the hard work of the British people, our economy is fundamentally strong. so today, we can make many choices. We can choose to both invests in our schools, our hospitals, our fantastic police for example, but we can also prepare to exit the E.U. And if that means leaving with No Deal, that's exactly what we're going to do.

(END VIDEO CLIP)

VAUSE: I can find only one small problem in what the new chancellor said and that it's not true. It's just something fairy tales and pixie dust.

PATEL: You know, I believe -- I definitely believe in the U.K. people. But when you have the Governor of the Central Bank of England come out and say that they've baked in that there will be a smooth deal for Brexit and that if there is no deal, they've stated, not me, they the Central Bank of England stated, it is not a win-win for anybody.

It's just because it's so much disruption, it's not -- I mean, I guess it is at the fault of what's going on but definitely not to the consumers and to the people in the U.K. This will be a very difficult task for the U.K. economy.

And you'll see it slashed more -- you know, slash more GDP forecast and that's what they're trying to do. VAUSE: Very quickly. We have the pound, I think last time I looked

it was round about $1.21 U.S. which is just so incredibly low when you think about it. I mean, and they saying it's going to get low. I mean, could we see the pound down hit parity and below with U.S .dollar over the coming months?

PATEL: Yes, you --- actually I think we may. And it's partly because I think what the U.S. is trying to do in their own thing and what the Bank of England and what the Sterling has done is gradually going down especially with what's going on with the E.U.

But more importantly you've seen a lot of companies continue to divest themselves and having you know, about 90 percent of I think was the survey of businesses, already have a plan B for Brexit if there is no deal. And so they're embracing that you know, shockwave. They're waiting for that shock.

VAUSE: Take foot -- take a shotgun, aim at foot and pull the trigger. It's amazing. Ryan, good to see -- to be with you. Great to have you with us. Thank you.

PATEL: Likewise.

VAUSE: South Korean officials have accused Japan of declaring all-out economic war. The reason, Tokyo revoked South Korea status as a preferred trading partner. Relations between Tokyo and Seoul have been strained in recent months after South Korea's highest court ruled that Japanese companies which used force Korean labor during World War II can be sued.

For the third time in eight days, North Korea has test-fired ballistic missiles, a blatant violation of U.N. Security Council resolutions, and a major concern for neighboring South Korea, but shrugged off by the U.S. President because of his words there was no agreement with the north on short-range missiles. CNN's Brian Todd reports now from Washington.

(BEGIN VIDEOTAPE)

[01:10:26] BRIAN TODD, CNN CORRESPONDENT: The North Korean dictator continues to prod, press, and provoke to see just how far he can push President Trump without eliciting a response. A senior U.S. official telling CNN U.S .military intelligence late Thursday tracked the launch of what appear to be more short-range ballistic missiles from North Korea.

Thursday's tests follow similar launches on Wednesday morning Korea time and late last week. Even before Thursday's firing, Kim Jong-un s propaganda arm was already trashed talking about Tuesday night's tests.

A newsreader saying Kim oversaw the firing of a multiple rocket launcher and bragging about the destruction it could cause.

UNIDENTIFIED MALE (through translator): It would be an inescapable distress to the forces becoming a fat target of the weapon. TODD: Kim's fat target is likely a reference to U.S. and South Korean

military forces which are set to hold joint exercises in the coming days, an event which always angers the North Korean strongman.

In a little over a week, Kim has fired off three rounds of missiles and made a show of inspecting a large submarine being built, a vessel which could have the capability to launch nuclear missiles, moves analysts say which are also designed to send a message to President Trump about how displeased Kim is over nuclear talks that have completely stalled.

ABRAHAM DENMARK, FORMER DEPUTY ASSISTANT SECRETARY OF DEFENSE, UNITED STATES: To me, the message is that we're not going away. North Korea is saying that you can't just stop by once in a while have a nice photo op and then call it a day, that this is something that needs to be taken seriously, they need attention, they want attention, and that this is not something that we can just try to run out the clock on.

TODD: If Kim is trying to bait Trump, it doesn't appear the president is taking it telling reporters late Thursday he's not concerned.

TRUMP: I have no problem. We'll see what happens but these are short-range missiles. They're very standard.

TODD: Still, August could be a hot month in this standoff. South Korean military officials telling CNN they believe North Korea will continue to launch provocations throughout this month to protest those joint us-south Korean military drills. How could North Korea ramp up the pressure?

DEAN CHENG, THE HERITAGE FOUNDATION: If North Korea were to test a missile by flying it over Japan, but keep its range short of an ICBM, that again would produce some interesting pressures on two American allies.

TODD: But now, Kim's military is feeling internal pressures of its own. South Korean military officials say a North Korean soldier was detected crossing the DMZ moving across the Indian River. They have him in custody.

KIM JOON-RAK, SPOKESPERSON, SOUTH KOREAN MILITARY (through translator): The man found at the central front of the DMZ was an active-duty soldiers and he expressed his desire to defect.

TODD: That follows other high-profile defections of North Korean troops within the past two years including this dramatic dash across the DMZ in November 2017. This soldier ditched his vehicle, made a run for it, was shot five times by fellow North Korean soldiers, and barely survived.

CHANG: It's important to recognize that North Korean soldiers probably have a higher standard of living than even fairly well-off North Korean civilians. So for these people to be defecting suggests that all is not well was in the security establishment.

TODD: Meanwhile, the Trump team is choosing to respond to the latest North Korean missile tests by not responding very much at all. Secretary of State Mike Pompeo at a conference in Asia made no mention of the missile tests saying the U.S. is still optimistic that nuclear talks with Kim can continue. We are ready to go Pompeo said.

Analysts say that could be a signal that the Trump team might be willing to brush off almost anything the North Koreans might do short of a long-range missile test. Brian Todd CNN Washington.

(END VIDEOTAPE)

VAUSE: Next up here on CNN NEWSROOM, the first big Trump campaign rally since the controversial sent her back chants and Donald and his supporters were on their double best behavior. We'll explain why in a moment.

Also CNN's freedom project and the story of a young singer who survived after being abused by a predatory music producer.

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[01:15:00] VAUSE: A major step forward for women's rights in Saudi Arabia where women will now be allowed to obtain passports and travel freely without the permission of a male guardian. That's a clear statement from the kingdom's ministry of information. This new law applies to women over the age of 21. It will go into effect at the end of this month. The Ministry says it will promote women's rights and empowerment.

For the past few days Democrats have dominated the primetime airwaves, the headlines with a series of debates among the presidential candidates. On Thursday evening, Donald Trump tried to recapture the center stage with a political rally in Cincinnati, Ohio. He blamed Democrats with the country's problem saying America's inner cities are in bad shape because they're controlled by Democrats.

He avoided the heated rhetoric that's provoked the chant of send her back at a previous rally. A handful of protesters briefly interrupted the president's speech but Donald quickly shouted down. Donald Trump called out to them. You must have a Democrat mayor.

For more now we head to Washington and CNN Political Analyst and Columnist for The Washington Post Josh Rogan. Josh, good to see you.

JOSH ROGIN, CNN POLITICAL ANALYST: Glad to be with you.

VAUSE: OK, almost of the get-go, it seemed the president, he was about to go off on a Baltimore like meltdown and suddenly he took a U- turn. Listen to this.

(BEGIN VIDEO CLIP)

TRUMP: For decades, these communities have been run exclusively by Democrat politicians and it's been total one-party control of the inner cities. For 100 years it's been one-party control and look at them. We can name one after another but I won't do that because I don't want to be controversial. (END VIDEO CLIP)

VAUSE: There is a first time for everything. But you know, it was from that point that you know, the rally seemed to follow the president's lead and he was kind of subdued, there were no pitchforks, no torches. So what do you read into all this?

ROGIN: I think President Trump has realized there's actually a tension between riling up his rally crowds into a frothing madness of anti-immigration racists chanting and the other thing they has to do which is actually run the government and work with Republicans but also sometimes Democrats to do that.

And you know, he's been doing this carnival act on the rally circuit for 3 1/2 years, OK, and people are kind of used to it. And now every -- in order to get the same sort of reaction, he's got to escalate the rhetoric and he's taken it as far as it can go so he's -- I think he's stuck. I think he's got kind of a tired act and you know, he wants to play into the racist anti-immigration, anti-minority stuff but he pulled his punches tonight. So at least he knows that there is some cost to that whatsoever.

VAUSE: Before this rally, the editorial board of the Cincinnati Enquirer issued a plea for civilized behavior and tolerance. Here's part of it. Pundits will be watching and waiting for chance of send them/her back or some other trope that can be deemed offensive to prove a point and paint our state our city state and the Midwest in a negative light. Don't take the bait. We're asking you Mr. President, your supporters and your detractors to set a new example for presidential visits.

Actual him highways but you know, why not. I can't doubt the impact the Cincinnati Inquirer had on the president's and his supporters actions, but I think what this does prove is that despite what Donald Trump says, Donald Trump does, in fact, control the rallies and the crowds which you know, come up, turn up week after week at his campaign events.

[01:20:39] ROGIN: Of course he controls it and of course, the angry rhetoric and the anti-immigrant, racists, anti-minority attacks where his idea, and he was doing that intentionally. And when the Cincinnati Editorial page asks him to set a new standard, they're asking him to replace his own standard.

And you know the bottom line is that President Trump doesn't have a lot of tricks. That's his trick to appeal to people sort of divisions and fears and inner concerns about their communities and outer concerns about the other.

And you know, when he's -- when he's actually has a moment of self- reflection and decides he doesn't want to do that, at that particular moment, he doesn't have a second trick, and that's when he goes back to the teleprompter, and the teleprompter is full of kind of boring boilerplate stuff.

So I think you know, there's no way that the president can go back to you know, just being a regular old traditional politician. He has no choice now but to double down on his aggressive, divisive, racist, anti-immigrant, anti-minority rhetoric. So I think this is just the low before the storm. I'm sure once he realizes he's not getting the reaction that he used to, he'll go back to what he knows best.

VAUSE: Which brings me to a point that Frank Figliuzzi who is a former Assistant Director of the FBI for Counterintelligence, he wrote a piece in the New York Times about the increasing concern among law enforcement, that Trump words -- that Trump's words actually fueling flames of racial tension.

He writes at recent rants which are directed specifically at those four Democrat Congresswomen of color have emboldened white hate groups and reinforced racist blogs, news sites, and social media platforms. He adds, Trump empowers hateful and potentially violent individuals with his divisive rhetoric and his unwillingness to unequivocally denounce white supremacy.

There was a time when we used to ask the question is Donald Trump a racist or does he just play one on television. Now that doesn't receive matter because at the end of the day the result is the same.

ROGIN: Right, that's exactly right. Racist is as racist does, OK. And the --what you're pointing to is the irrefutable statistics that show that since Donald Trump has sort of normalized this kind of dog- whistle, the racism, all the way up to just like bullhorn racism, hate crimes have gone way up in every category across the board.

And the racists who were previously ashamed to show their faces in public are popping up everywhere. And that's not a coincidence, OK. And you know, he can disavow that as much as he wants but you know, it's unbelievable to think that he doesn't make that connection.

And again, this is his political strategy. I think President Trump fears that he's lost the middle and he knows he's going to have to turn out of his base and this is the best way you can think of doing that. And then the consequences even if those consequences mean increased division, increased crime, increased trouble for law enforcement.

And another thing that there was a report today that came out that said conspiracy theories are now driving extremism. And nobody promotes conspiracy theories like President Trump. He's like the conspiracy theorist in chief. And now people are believing that stuff too and that's causing even more problems.

VAUSE: Well, right off the top of that rally in Cincinnati, Trump went after the Democrats and they had that campaign debate on Tuesday and Wednesday. Listen to what -- he kind of said about them -- you know, typical Trump stuff. Here he is.

(BEGIN VIDEO CLIP)

TRUMP: I was watching the so-called debate last night and I also watched the night before. That was long, long television. And the Democrats spent more time attacking Barack Obama than they did attacking me practically.

(END VIDEO CLIP)

VAUSE: And on that he's actually kind of right. The Democrats -- you know, the candidates are on both Tuesday and Wednesday, especially Wednesday, they spent most of the time eating their own. A good headline in the Washington Post put it this way. Do Democrats think they could win by attacking Barack Obama? A point which was not lost on the front-runner in the Democratic contention, Joe Biden. Here he is.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENTIAL CANDIDATE: I hope the next debate we can talk about how we fixed -- our answers to fix the things that Trump has broken not how Barack Obama made all these mistakes. He didn't. He didn't.

(END VIDEO CLIP)

[01:25:04] VAUSE: Could the Democrats actually you know, form the circular firing squad and cause an immense amount of damage to one another and leave the door wide open for a second Trump term?

ROGIN: Yes, that could happen. I mean, I understand why Biden is making that argument because that argument favors his position relative to the other candidates. He's the front-runner. He wants people to aim their fire at Trump and not at him and definitely not at his former boss Barak Obama.

The other candidates, it's a different calculation, OK. They're about to go into a winnowing period where we're going to go from 20 candidates to ten or less, all right. So these people are getting desperate, you know.

And I also don't place a lot of stock personally in the idea that Democrats attacking Democrats is necessarily bad. These candidates need to be tested. It's better to work out the kinks down. It's better to deal with the criticisms now than if and when you get into that debate stage with Donald Trump. So I say you know, let a thousand flowers bloom and you know, a bunch of them will eventually die.

VAUSE: Let me give you another one. The more they sweat in pepper in what -- in training, the less you bleed in war I guess the other side of the equation. Josh, good to see you. Thank you.

Police and protesters gearing up for another weekend of mass demonstrations in Hong Kong. Police also making arrests before these protests even begin. We'll tell you what they found. That's next right here on CNN NEWSROOM.

(COMMERCIAL BREAK)

VAUSE: Welcome back, everybody. You're watching CNN NEWSROOM. I'm John Vause for the headlines this hour. The U.S. President plans to slap more tariffs on Chinese made goods effectively taxing all Chinese exports into the United States. Consumers can expect high prices for everything from iPhones to sneakers starting the tariffs at ten percent but could go higher.

U.K. Prime Minister Boris Johnson chances of securing a bracelet deal through parliament just got harder. His Conservative Party has lost a seat in parliament through violation to pro-E.U. Liberal Democrat chained dogs. She says her first act will be to tell Johnson to rule out a no-deal Brexit. Brexiter had earlier problem to Bank of England to lowest growth forecast this year and next in the U.K.

South Korea is expressing strong concern after the latest missile tests by the North in eight days. They appeared short-range ballistic missiles, a violation of U.N. Security Council resolutions, but the American president says he's not concerned because he didn't make a deal with the North short-range missiles.

Hong Kong police have arrested people accused for possessing weapons and materials to make explosives. It's happening as protesters prepare for yet another weekend of pro-democracy demonstrations. CNN's Matt Rivers live in Hong Kong.

You know, there wouldn't be any concern about you know, whether or not these arrests and the material and the evidence found is, in fact, legitimate and you know maybe there's a credibility question here?

MATT RIVERS, CNN CORRESPONDENT: There is without question a credibility issue here -- John. I mean the fact of the matter is the people in Hong Kong, generally speaking right now, all the people that have been taking to the streets and numbering in the hundreds of thousands, a lot of them do not trust the police anymore. Especially after what we've seen, you know, what you would hear from protesters that police constantly use brutal tactics against peaceful protesters that they've done things that have basically eroded any remaining trust in the police force amongst the general public here.

And so when you hear things like the police coming out and saying that they happen to make these arrests last night while they were undergoing what they called a routine burglary call in an area called Sha Tin -- it's a light industrial area of Hong Kong. And they happened to find these people who had typical items of clothing and materials that protesters had used and then they go into an apartment and they happen to find these explosives.

The fact of the matter is, a lot of people here in Hong Kong are simply not going to buy that story, you know, that story from the police. And this all comes as they've got more protests scheduled for this weekend. Some of them are authorized, some of them or not.

But this is the kind of thing the protesters will point to and say we cannot trust the police. This is why we're taking to the streets. And in some cases they would say this is why our violence against the police is justified.

VAUSE: Matt -- thank you we appreciate the update. Matt Rivers there live for us in Hong Kong with the very latest on those arrests. China's most senior military commander in Hong Kong says the violence by pro democracy protesters should not be tolerated. His comments come as a slick new propaganda video which was being released by the PLA. And that's stoking fears that China's military might just intervene if these demonstrations continues.

CNN's Kristie Lu Stout explains.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT: Advancing soldiers armed with shields, a battered vehicle that RESEMBLES Hong Kong taxi, and a soldier carrying a machine gun shouting in Cantonese that all consequences are at your own risk.

It's all part of a new promotional video for China's People's Liberation Army Hong Kong garrison. It comes as the Chinese military marks its 92nd anniversary, as Hong Kong enters nine consecutive weeks of protests against its pro-Beijing leadership.

In a rare move ahead of the video's release, the commander of China's People's Liberation Army Hong Kong garrison spoke out for the first time about the unrest.

MAJOR GENERAL CHEN DAOXIANG, PEOPLE'S LIBERATION ARMY HONG KONG GARRISON (through translator): Recently, there have been a series of violent instances happening in Hong Kong. The incidents have seriously violated the bottom line of one country, two systems. It should not be tolerated and we express our strong condemnation.

STOUT: After the handover, the PLA established a garrison of 6,000 soldiers in Hong Kong. China has never ordered them to interfere in the territory's affairs. But Chinese officials reacted angrily after protesters targeted the Chinese government's liaison office, Beijing's top representative in Hong Kong located in Sheung Wan.

The area has become a flash point after a group of hard-core protesters threw eggs and vandalized the government seal in front of the building. And that has raised concerns that the Chinese military could become involved in maintaining order as the protests rage on. That is something pro-Beijing lawmaker, Michael Tien firmly disputes.

MICHAEL TIEN, HONG KONG LAWMAKER (through translator): We can take care of our own problems. We want all foreign intervention and foreign elements to stay out of Hong Kong. And we also want Beijing to leave us alone.

STOUT: According to Hong Kong law, the Chinese military can intervene in local affairs only when they're pressured by Hong Kong's leaders. Carrie Lam may have attended the reception to celebrate the Chinese military founding but she has shown no indication of asking for their assistance so far.

Toward the end of that PLA video, there is this montage of Cantonese- speaking citizens praising the Chinese army. This is three minutes of propaganda that could not have come at a more politically fraught time for China and for Hong Kong.

Kristie Lu Stout, CNN Hong Kong.

(END VIDEOTAPE)

VAUSE: In Yemen, an attack on a military parade has killed at least 36 people, wounded dozens more. It happened in the port city of Aden, a stronghold of the internationally-recognized government. Houthi rebels say they launched the attack with an armed drone and ballistic missiles. The parade was reportedly held during a graduation ceremony for Yemeni troops.

Well, as the United States prepares to withdraw from a nuclear treaty, we have a CNN exclusive. The Pentagon is about to test a new missile specifically designed to counter Russian aggression.

Here's CNN's Barbara Starr reporting from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: This is the Russia missile the U.S. says led to the demise of a critical Cold War U.S.-Soviet arms control treaty.

[01:35:02] CNN has learned that the U.S. military is set to test a new non-nuclear mobile launch cruise missile developed specifically to challenge Russia in Europe according to a senior U.S. defense official.

Details of this new weapon are scant as it is just entering the test phase.

This comes as the U.S. is expected to formally withdraw from the 1987 Intermediate Range Nuclear Forces Treaty signed by President Ronald Reagan and Soviet Leader Mikhail Gorbachev.

MIKE POMPEO, SECRETARY OF STATE: We can no longer be restricted by the treaty while Russia shamelessly violates it.

STARR: It's one of the few areas where the Trump and Obama administrations agree.

MARK ESPER, U.S. DEFENSE SECRETARY: Russia has cheated or is cheating on treaties. I give the Obama administration high marks for calling them out and trying to work this.

STARR: The U.S. has long-claimed Russia was in violation when it built and deployed this new ground launch missile. Defense officials say Russia has deployed multiple battalions on rapidly moving mobile launch vehicles that U.S. intelligence may find difficult to detect.

JOHN BOLTON, NATIONAL SECURITY ADVISER: The threat is not American withdrawal from the INF treaty. The threat is the Russian missiles already deployed.

STARR: If war breaks out, the potential targets Russia could hit include European ports, cities and critical military and civilian infrastructure, according to a U.S. official. This new U.S. missile aimed to deter those Russian threats but could also be used against China in a crisis.

ESPER: We obviously need to prepare air missile defenses to defeat those intermediate range missiles. But then the other part is to make sure that we develop our own conventional INF range missiles to deal not just with Russia but China.

STARR: The U.S. still has to get European nations to agree to base the American missiles on their territory. But nations like Poland which are nervous about next-door Russian just might agree to do that.

Barbara Starr, CNN -- the Pentagon.

(END VIDEOTAPE)

VAUSE: Next up here on CNN newsroom, 50 years ago there was nothing that could stop the three-day peace-loving music fest that was the (INAUDIBLE) that would become known as Woodstock. But after a series of setbacks and a few broken fingernails Woodstock 50 has been canceled.

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[01:40:00] VAUSE: A number of tropical storms have formed in the Pacific so let's go to meteorologist Derek Van Dam who is tracking everything from the high tech center of the World Weather Center right here at CNN International. What have you got?

DEREK VAN DAM, AMS METEOROLOGIST: Yes. John -- it's quite amazing actually to see how the active -- the tropics have become so active within the past 24 hours.

We have six storms that we're monitoring, four of which have been officially named by the Joint Typhoon Warning Center.

Let me just give you a brief global glimpse of the Pacific Ocean. Here is Tropical Storm Wipha impacting southern China. Here's Francisco, that's just recently named. Here's an area of interest, we're looking just east of the Philippines.

Let's take this satellite and move it to the central Pacific where we're monitoring Tropical Storm Erick and Flossie just to the west of Hawaii. And another area of thunderstorms that could potentially develop into a hurricane come the next 24 to 48 hours.

So getting into some of the details, we have a rainmaker at hand here with Tropical Storm Wipha. It is impacting the Hanoi region as well as Hainan Island in the extreme southern portion of China. Rainfall totals here could be excessive so we have the potential for flash flooding as well as some mudslides and landslides. And remember this is a rather mountainous terrain.

Let me bring you a little further into he Pacific. This is newly- formed Tropical Storm Francisco. Still generally weak with regards to the winds but you can see over the next five days this trajectory brings it to the southern portions of mainland Japan. So early next week we could have a typhoon impacting the Kagoshima Region. Later a weaker storm into the Korean Peninsula.

And then we head towards the eastern Pacific. Look out Erick and Flossie -- these two systems, they've got their eyes set on the big island of Hawaii. Now it will be more of a wave maker for these areas as well as a rainmaker but the majority of the winds, well they're dying down and they're also going to stay at bay from impacting the majority of the island nation.

Here you can see -- or island chain, I should say -- 75 kilometer per hour sustained winds. You could see the east and the southeast facing shorelines of some of these islands expecting swells in excess of five meters. Of course, the surfers taking advantage of that.

And John, you know, look out for 100 to 200 millimeters of rainfall. That will certainly cause flash flooding on the Big Island.

So lots of storms. And two actually in the Atlantic as well.

VAUSE: A lot going on. And a lot to do. We'll leave it at that. Thank you.

VAN DAM: Likewise.

VAUSE: To CNN's Freedom Project and the story of a promising 14-year old singer. A music producer offered to help his career. At first the producer was friendly and helpful. But it wasn't long before the abuse began and so too, did the young man's fight for survival.

Here is CNN's Rafael Romo.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: Singing he says is his life.

At 23, Luis Armando Campos has already had a very impressive singing career that started when he was just a child.

LUIS ARMANDO CAMPOS, SINGER (through translator): I was about 11, almost 12. I was on a local TV show in Tampico.

ROMO: In 2014, he was a semifinalist in "The Voice Mexico" and has toured the country with his music. But what his increasing number of fans didn't know, Campos says, is that he was forced to live a double life.

CAMPOS: He destroyed my adolescence.

ROMO: Campos says his nightmare started at the age of 14 when he was for all practical purposes on his own due to his parents' separation.

RITA HERNANDEZ, BOARD MEMBER, UNITED VERSUS HUMAN TRAFFICKING: This man came out of, you know, an incredible singing career. He does have a beautiful voice. CAMPOS: By the time my mother made the decision to leave, he offered

to help me.

ROMO: At the beginning, Mario Enrique Miranda Palacios, the producer, kept his promises cultivating the Campos' talent and polishing his singing voice.

Campos says things quickly started to change. He says when he was 14 Miranda once asked him to show up early for a rehearsal.

CAMPOS: He took me into his office and it was there where for the first time he asked me to take off my shoes and my socks and kissed my feet. He said it was something normal and that he was giving a scholarship at this academy and that I could thank him this way, that it wasn't something bad.

ROMO: Campos says it started with verbal and sexual abuse and worsened to forced prostitution.

CAMPOS: I didn't have anybody to turn to. He would threaten me and saying that since my father had a criminal record he was going to put him in jail again.

[01:44:56] ROMO: Campos says he was coerced to work as a slave for four years starting at the age of 14. Threats of harm to his family, deception and psychological abuse, he says, kept him quiet and submissive until one day he decided he couldn't take it anymore.

He says he finally found the courage to ignore the threats and flee after turning 18.

As a contestant of "The Voice Mexico" he was coached by Yuri, a singer of international fame who he says convinced him he had to report the abuse to authorities.

Mario Enrique Miranda Palacios was arrested in March of 2018 under charges of rape, corrupting minors and forced prostitution. The charges were later updated to rape and human trafficking according to the Tamaulipas state's attorney's office.

He pleaded not guilty but his trial is pending through an attorney. Miranda denied the charges saying that in reality, Campos and his client had a romantic relationship. The attorney also denied his client enslaved Campos adding that the young man went only to the authorities when they broke up motivated by revenge and that they have letters, videos, pictures and witnesses to prove it.

Campos denies having a consensual relationship with Miranda and claims the defense is just using a pretrial legal strategy. In addition to a singing career nowadays Campos is also an activist who talks openly about what he says he went through.

CAMPOS: As I tell my story to people, I feel like I'm getting free again.

ROMO: He will feel totally free, he says, when the man he accuses of abusing for four years receives a long sentence.

Rafael Romo, CNN -- Mexico City.

(END VIDEOTAPE)

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(BEGIN VIDEO CLIP)

(MUSIC)

UNIDENTIFIED MALE: Man, there must be a million and a half people here by tonight. Can you dig that?

UNIDENTIFIED MALE: It's really amazing, you know. It's like some kind of a biblical, epical, unbelievable scene.

(END VIDEO CLIP)

VAUSE: 50 years ago on a farm in upstate New York it was all about peace, love and happiness. A cultural touchstone which showed hundreds of thousands of flower children living together for three days. Very little security, no rules, just cooperation. Food and shelter were shared. So too, lots and lots of drugs.

Woodstock became the music festival which defined a generation. It wasn't without problems. Rain turned the festival site into a sea of mud. And because of that lack of security almost everyone who turned up did not have a ticket and most got in for free. The promoters were left almost bankrupt, but the show went on and history was made.

Woodstock 50 was also facing its own share of problems and challenges. And as the saying goes, when the going gets tough, the organizers closed down the Web site and walk away. "Our festival is canceled but the Woodstock spirit lives on," reads a Web site."

Well, one of the Woodstock co-founders told CNN, "We are saddened that a series of unforeseen setbacks has made it impossible to put on the festival we imagined with the great lineup we had booked in the social engagement we were anticipating."

For more now on what went wrong, we head to Vail, Colorado and Bob Lefsetz of the Lefsetz Newsletter and Blog, read by everyone who's anyone in the music industry.

Bob, it's been a while, good to see you.

BOB LEFSETZ, LEFSETZ NEWSLETTER AND BLOG: Great to talk to you -- John.

[01:49:58] VAUSE: Ok. So what went wrong here? Or would it be easier to ask what went right with Woodstock 50?

LEFSETZ: Ok. Let's start with what the Eagles said. "We haven't had that spirit here since 1969". 1969 was a transition year. No one thought that all those people would show up at Woodstock. Today, concerts are a professional business. Michael Lang thinks 50 years later, he could still pull things together at the last minute.

He thinks the name Woodstock has goodwill, whereas anybody who remembers the original Woodstock is too old to go to a new Woodstock. Certainly, the bands he built would not drag people five or six hours from New York City. This was a failure from the beginning.

VAUSE: Just go back, let's like take a moment to appreciate the very -- the who's who of -- these are non promoters at the time, managed to work for Woodstock. There was Jimi Hendrix, Sly and the Family Stone, The Who, Santana, The Grateful Dead, Janice Joplin, Jefferson Airplane, Robby (INAUDIBLE), Country Joe and The Fish, Crosby Stills and Nash and Young -- I mean it's incredible.

And 50 years on it seems getting the big names, the big acts was either a challenge. Many had contracts which restricted where they are perform and how often, that type of thing which really does sort of symbolize how the entire music industry has changed over the last 50 years.

LEFSETZ: Well, you have to understand that music drove the culture in 1969. As successful as the wide concert business is today music does not drive to culture. Technology drove the culture for 20 years. Now in America it's politics.

So, it's also a focus on the individual, the audience member as opposed to the star on stage. It's about (INAUDIBLE) -- putting them up on Instagram. So to have a successful festival, you need the whole conundrum (ph). You need rides, you need food, you have to coddle the audience.

Only very serious people can do this. Most of the new festivals lose money for three or four years before they're even in the black. So sophisticates know that the Woodstock 50 was doomed from the get-go.

VAUSE: You know, Philip Crosorus (ph) I think with the music Web UpRock (ph), tweeted, "Every generation gets a Woodstock it deserves. Ours is appropriately canceled."

Fair statement, do you agree with that?

LEFSETZ: You know, there are a lot of quips people are employing, but you have to understand that the generations have changed. the generation today will go to a festival. Millennials, Generation Z -- they love live entertainment.

But it's not about Woodstock. You know, basically, those who are following this story were oldsters. No one really cared who was under the age of 30.

This weekend there is Lollapalooza in Chicago. There's certainly (INAUDIBLE) in Austin coming up in the Fall. It's not (INAUDIBLE), not enough festivals and there is nothing making this festival any different other than the name. VAUSE: You know, Woodstock's 30th anniversary, back in 1999 did not

live up to the ideals of the first Woodstock in terms of peace, love and happiness. Look at this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Fires raged out of control while police in riot gear keep crowds away from the burning tractor trailers. That was Sunday night. Today the damage to the trailers and vending booths is estimated to be in the millions of dollars.

(END VIDEO CLIP)

VAUSE: But let me ask you this. Is Woodstock one of those moments in history where the universe was in harmony, the elements somehow all just managed to click for an experience that could never actually be recreated, and should never actually be re-created so no one can actually try because it was just so special in and of itself?

LEFSETZ: That is absolutely true. Of course if you follow history, before the Rolling Stones tried to recreate that spirit in its (INAUDIBLE) and it was a disaster. A guy got killed, people were -- the Hells Angels beat people up with pool cues. So it was a moment in time no one knew in advance that Woodstock was going to be successful.

We did not have the Internet to spread the word. What it turns out is people all over America -- (INAUDIBLE) many more than bought tickets, they showed up. It became a big news story that the mainstream media was unaware of.

VAUSE: Yes. Bob -- as always great to have you with us. Really good to see you. Thanks -- mate.

LEFSETZ: Ok. Always good to talk to you.

VAUSE: Cheers.

Most children have 20 primary teeth, ten uppers, ten lowers, replaced by 32 when they're an adult. But in what might be the most dramatic visits ever to see the dentist, a seven year old boy in India had 526 teeth removed.

His parents say their son had complained about swelling since he was three. X-rays of his jaw revealed what appeared to be a sac in his lower jaw with all those extra teeth. Surgery took more than four hours.

The teeth could be the result of a genetic disorder or environmental factors. Either way the Tooth Fairy says she'll send him a check.

[01:55:00] Politics is a dirty business and it's the monthly (ph) and the dust (ph) money, the dirty tricks. Donald Trump said he'd drain the swamp in Washington but now one Democrat has their own plans on how to clean things up.

Here is Jeanne Moos. (BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: This is a salute to debate one-liners starting with the one that launched a thousand Clorox jugs, Oval Office strength (ph).

SENATOR KIRSTEN GILLIBRAND (D-NY), PRESIDENTIAL CANDIDATE: The first thing that I'm going to do when I'm president is I'm going to Clorox the Oval Office.

MOOS: And inspired mopping BY everyone from Mr. Clean to Sponge Bob though critics suggested why don't you start by using Clorox on your friend? Showing Senator Gillibrand posing with Bill Clinton and Harvey Weinstein.

Now, the Senator didn't dream up that Clorox zinger on the spot. It's a line she's used before. Then polished.

Egged on by voters --

UNIDENTIFIED FEMALE: What's the first thing you would do when you get to the Oval Office after fumigating the White House?

GILLIBRAND: I was thinking Clorox wipes myself.

MOOS: She honed the line in New Hampshire.

GILLIBRAND: After I Clorox the Oval Office --

UNIDENTIFIED MALE: Clorox -- the commander in bleach.

MOOS: Others are cleaning up with they're one liners.

Kamala Harris talks about being bussed.

SENATOR KAMALA HARRIS (D-CA), PRESIDENTIAL CANDIDATE: And that little girl was me.

MOOS: The campaign started selling "that little girl" t-shirts.

When Bernie Sanders got feisty --

SENATOR BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: I told you I wrote the damn bill.

MOOS: The campaign offered "I wrote the damn bill" stickers to anyone who donated. And after Bernie got loud arguing with Tim Ryan.

REP. TIM RYAN (D-OH), PRESIDENTIAL CANDIDATE: I didn't say we couldn't get there until 2040 Bernie. You don't have to yell.

MOOS: Ryan started plugging "you don't have to yell" stickers.

Even Kool-Aid quenched its thirst for promotion by tweeting about this Cory Booker jam.

SENATOR CORY BOOKER (D-NJ), PRESIDENTIAL CANDIDATE: You're dipping into the Kool-Aid and you don't even know the flavor.

UNIDENTIFIED MALE: You know what's cool about being black? If you can just make up phrases on why people don't know if it's real.

MOOS: And when Joe Biden really did call rival Cory Booker.

JOE BIDEN (D), PRESIDENTIAL CANDIDATE: Excuse me -- that future president here.

BOOKER: First of all I'm grateful that he endorsed my presidency already.

MOOS: Now Booker is selling "future president" vinyl stickers just because a one liner stuck.

But careful with that Clorox, we ended up with a spill that made a splash.

Jeanne Moos -- hope they have better luck cleaning the Oval Office than we did -- CNN, New York.

(END VIDEOTAPE)

VAUSE: Got to be careful with the Clorox. You're watching CNN NEWSROOM.

I'm John Vause.

Stay with us. A lot more news after a short break with Natalie Allen when we come back.

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