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Connect the World
Newsom: 6-9 Months to Remove Debris, Toxic Materials; Hamas: "Very Close" to Gaza Deal, Sticking Points Remain; Ukraine Says it Captured Two North Korean Soldiers; Biden White House Unveils Fresh Curbs on Export of AI Chips; Eaton Fire Burns More Than 5,700 Hectares Near Pasadena; TikTok: Ban Would Impact Over 170 million Users Across U.S. Aired 9-10a ET
Aired January 13, 2025 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
ERICA HILL, CNN HOST, CONNECT THE WORLD: This is a live look at the Israel Gaza border. Hamas says a ceasefire and hostage deal is, quote, very close.
Some sticking points though do remain. It is 04:00 p.m. now in Gaza, 09:00 a.m. here in New York. I'm Erica Hill in this week for Becky Anderson,
thanks for joining me on "Connect the World".
Also, ahead the Los Angeles fires now at a critical stage, as returning winds threaten progress made in containing those flames. Plus, Ukraine
offering to release captured North Korean soldiers in exchange for its own soldiers held in Russia.
Los Angeles facing even more critical fire weather as firefighters struggle to contain three major wildfires in the area. The two largest, the
Palisades and Eaton fires are each less than 35 percent contained, and the concern here is weather on its way, forecasters warning these flames will
be fueled today and tomorrow by more gusty winds and very dry air. California's Governor says when those strong winds return later in the day,
though, firefighters will be ready.
(BEGIN VIDEO CLIP)
GOV. GAVIN NEWSOM (D-CA): Some up here in Mandeville Canyon, which was this site in the last two nights of tremendous investment of resources,
firefighters working the line, a lot of those assets still here, not only in anticipation of potential flare up here in the Palisades fire, but also
pre-positioned, as we're pre-positioning in many counties throughout the State of California because of the upcoming winds we're expecting. Monday,
peaking Monday night into Tuesday, extending into Wednesday.
(END VIDEO CLIP)
HILL: At least 24 people have died as a result of the fires dozens more are missing. As of this hour, more than 100,000 people remain under mandatory
evacuations. A number of those folks, when they eventually are able to return, will likely find nothing left of their homes. There are also
serious concerns about the air quality in the region.
Meantime, in some areas where the risk has lessened, there is one sign of return to normality, all but nine schools in the L.A. Unified School
District that is the second largest in the United States, all but nine will reopen today. CNN's Stephanie Elam is in Malibu, California. In the last
hour, she walked through the challenges that firefighters will be facing as those winds pick up later today.
(BEGIN VIDEOTAPE)
STEPHANIE ELAM, CNN CORRESPONDENT: It is really windy, and this is part of the concern, because right now it is cooler. It is a little chilly out
here, and that usually happens during wildfires, where we see the flames kind of simple down into the earth and we don't really see them, but then
as daylight comes, things start to heat up, and we start to see these blazes come back.
But this is the overall effect of what we've been seeing here. Take a look at this. This was an in right on the Pacific Coast Highway just decimated
by the blaze of Palisade fire coming through here. And you think about it, the Palisade fires burned through more than 23,000 acres. The Eaton fire
over on the east side, burning through 14,000 acres.
And according to data released by Cal Fire, they're saying that the amount of land burned between the Eaton fire, the Palisades fire and the Hearse
fire is more than the size, the total area of Paris, larger. I mean, just phenomenal numbers to actually try to compute and digest of just how large
these fires are.
The other concern, though, with these winds is that while they have had some containment come together for some of these fires, and some of them,
they've knocked down. The issue is, with these winds, those containment numbers could go back down. And I know a lot of people just want to get
back into their homes if they're in those evacuation hour areas. But take a listen to Cal Fire official here explain why they don't want people to go
back prematurely.
DAVID ACUNA, BATTALION CHIEF, CAL FIRE: Part of the reason we're keeping evacuation orders in place is not only because of fire risk, but it's also
because we have downed power lines, which are potentially live unknown status of gas lines, and every bit of that ash that it's out there is toxic
with petroleum products from the houses that burned. So, it is an unsafe place for families to be.
ELAM: That's very true. And even here, standing here by this in even though I'm not in it, I can smell that metallic smell that you smell after
wildfires that goes through not just brush and trees, but through buildings like this. And that is part of the concern, along with the fact that we
have these wind warnings.
So, they're saying, if things go the way they hope they go the next couple of days, the earliest that we may see people going back into their homes is
on Thursday.
(END VIDEOTAPE)
HILL: And our thanks to Stephanie Elam for that report. You have heard California Governor Gavin Newsom. Heard him just a few minutes ago, talking
about firefighters being ready for this next round of high winds. He's also talking more about just how long it may take when it comes to the cleanup
once these fires have been contained as much as nine months to remove all of the toxic material and debris left behind.
[09:05:00]
Just a short time ago, FEMA Administrator Deanne Criswell joined CNN and spoke specifically about how federal funds will cover the removal of that
debris.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: The complexity of removing the debris from this fire is going to be significant, and it's going to take a long time. It's going
to take more than six months to remove this debris. We'll get the majority out. California will get the majority of out in that time frame, but it's
going to take some time to be able to get everything out so they can start rebuilding and make sure that it is safe for people to come back in and
start rebuilding those homes. It's just catastrophic. The amount of destruction that I saw when I was there.
UNIDENTIFIED FEMALE: Yeah, it's super it's really disturbing. And this is not over yet. The crisis still continues with these fires. Speaking of
which homeowners' insurance companies have dropped nearly 3 million people in California before this historic fire because of past fires, this being
the most costly and worse fire damage the state has ever seen.
Is this insurance crisis going to explode? And what can FEMA do to try and help people that are caught in this?
UNIDENTIFIED FEMALE: I am really concerned about the insurance crisis that not just California is experiencing, but we're seeing it in other places.
You know, with climate change, we are seeing an increase in severe weather events and catastrophic impacts as a result of those events.
And so, our programs are going to help jump start the recovery, but we're not going to rebuild somebody's home. And so, I think what we need to focus
on is we're trying to help communities rebuild, helping California rebuild after this, that we do it in a way that's going to make them more
resilient, reducing the impact from these events, making it more tenable for the insurance industry to want to cover the risk, right?
If we can reduce the potential risk, then maybe they'll stay and so I think we need to have conversations with them about what does that look like, so
we can encourage them and incentivize them to stay in these communities.
(END VIDEOTAPE)
HILL: Well, as questions swirl over California's handling of its strained resources, CNN's Kyung Lah asked the State's Governor directly about some
of those challenges during that conversation, Gavin Newsom also explained the evolving scope and scale of the wildfire damage.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT: The Governor of California while overseeing this fire emergency in Los Angeles County for the first time, is now laying
out some concrete timeline of when he wants this rebuilding to begin, saying that he wants assessments of all of the losses done within two
weeks, and that's to get insurance and FEMA rolling.
So, what is this assessment help explain why we need this and what this means for that homeowner?
NEWSOM: You got through the State Fire Marshal Cal Fire, working with county partners, teams of two go in. They will go in a property like this,
they'll assess, and they will photograph, and then they will post online after it's verified, about a 12-hour process, and people can go on a
website.
They don't have to physically be here to know if their property is damaged. And that will then begin the process for the property owner on insurance
and getting us to a point where we can start the rebuild process.
LAH: How quickly do you anticipate being able to do that?
NEWSOM: Well, as I said, I want all the inspections done within 14 days, every single structure that's been impacted by these fires. So that's --
LAH: That's thousands of homes.
NEWSOM: So that's thousands of homes. And so that's the mandate. Whatever resources they need. We said we're going to provide it. And then we're
looking, right now at debris removal, and you're looking at Herculean effort.
Well, you're telling the debris is gone and we said, we want nine months. Is the goal, nine months to year. You're looking at the magnitude of this,
and with the hazmat side, just it has to be done in a way that services the long-term needs. And then obviously you're going to learn from this
process.
LAH: And then, what about insurance? And we know, we live here, your house is insured. My house is insured.
NEWSOM: Yeah.
LAH: Yes --
NEWSOM: My -- the one I have, my dad's house is under the fair plan, the state's plan.
LAH: It's very expensive.
NEWSOM: Very expensive, and it's not great coverage.
LAH: Right. So, what do you tell people?
NEWSOM: We tell them that we are not only assessing all of that in real time and hire independent group to look to stress test, not just the
insurance market, the utility market in California as well. We've been making a lot of reforms in our insurance market, and we'll need to make
subsequent reforms.
LAH: Something that's particularly pressing for this community you're standing in is lack of insurance. A lot of people inherited homes or
working class.
NEWSOM: Yeah.
LAH: What about people who didn't have insurance?
NEWSOM: That's I mean, and that's going to be the most difficult and challenging thing, and that's where FEMA comes in. That's where the SBA
comes in. That's where the State of California comes in. It's where the federal government comes in. That's where philanthropy comes in.
People have lost their lives, they've lost their businesses, they've lost hope, and we've got to restore the hope and then restore their lives and
businesses and opportunities.
[09:10:00]
LAH: The governor has signed a slew of executive orders, not just on the assessments to speed that along, but also on loosening some of the
environmental regulations to get some of this building done as quickly as possible. Kyung Lah CNN, Altadena, California.
(END VIDEOTAPE)
HILL: For a closer look at the forecast, we've talked a little bit about what is expected those challenging conditions today and into tomorrow. CNN
Meteorologist Allison Chinchar joining me now, so there is anticipation of this return of some of the winds, these very dry temperatures. What does
that look like in the coming hours, Allison?
ALLISON CHINCHAR, CNN METEROLOGIST: Right, so today is when we things to really start to ramp up. So, you've got a wind advisory, the orange color
you see here on the map that is in effect now those winds expected to get up to about 50 to 50 miles per hour. And the orange is even under this red
color here too.
You just can't see it. But that's because this red color, which begins at 04:00 a.m. local time Tuesday is indicating that the winds are going to get
even stronger. Tuesday and Wednesday, we could see those wind gusts up around 60 to 70 miles per hour. So today and tomorrow, you have an extreme
category alert.
That is the level three of three. It does not get any higher than that in the pink color area that you see here, and that's taking into account both
the gusty winds, but also just the incredibly dry conditions, very low humidities, but also just that ground is very, very dry, that very dry
vegetation and brush is fuel for these fires as they spread.
And those winds, as you can see, starting to tick up as we go through the day today and Tuesday and Wednesday will contribute to that. Over the
weekend, these containment numbers were able to go up, which is good, thanks to the little bit of a break we got in the winds on Saturday.
But it's those dry conditions that are really going to be concerning, too. When you go back to October 1st, and that is the start of what we refer to
as the water year, that's when the natural water cycle kind of resets. Since October 1st, the L.A. area has only had three one hundredths of an
inch of rain.
Normally by now, they would have at least 4.5 inches of rain. Also too to note, January is usually the second wettest month of the year for this
area. That has not been the case so far. We back up one year ago, January, 9th, 2024 the Drought Monitor. No part of California was in any level of
drought.
Now fast forward to this year, and you have the bulk of Southern California in some level of a drought, whether it's moderate, severe or even stronger
than that. So, it's those incredibly dry conditions that allow these fires to spread so quickly in addition to the winds.
What this area really needs, honestly, is rain, but there's just none in the forecast for at least the next seven days. Now, one bit of good news I
will point out, though, is that the end of the week day six and day seven, the temperatures are expected to come back down and the humidity is
expected to go back up.
It's not ideal conditions, per se, but it's certainly something that will help the firefighters in the coming days. We just have to get to the end of
the week, and hopefully not allow those fires to get too far out of control until that time.
HILL: Yeah, absolutely. Allison, really appreciate it. Thank You. Still to come, here reports of progress on a Gaza ceasefire and hostage exchange
deal in the waning days of the Biden Administration. Plus, Ukraine's President proposing a prisoner swap after he says two North Korean soldiers
fighting for Russia were captured on the battlefield.
(COMMERCIAL BREAK)
[09:15:00]
HILL: Hamas says it is, quote, very close to an agreement with Israel for a ceasefire in Gaza and a hostage exchange deal. Several sticking points,
though, do remain, according to an official from the group, talks are currently underway in Qatar. Israeli Prime Minister Benjamin Netanyahu and
U.S. President Joe Biden discussed the negotiations on Sunday.
This as Mr. Biden is poised to give his farewell foreign policy address in the coming hours. For more coverage, we're joined by CNN's Jeremy diamond
in Jerusalem, Arlette Saenz is at the White House. Jeremy first to you. We have heard before that we were close to a ceasefire. Obviously, that did
not happen. What is different this time around?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, you're so right, Erica, and that is why, even as we have now entered this kind of final stages of
negotiations, there is optimism. But all of that optimism is still cautioned at this point, and that is because we have seen in the past, as
these parties have gotten close to a deal, that things have fallen apart.
And while certainly it does appear that this time, they are perhaps closer than they ever have been to a deal, there is still that cautionary note
that all of my sources who I've been speaking to today have been raising, which is that there is no deal until everything is actually agreed to.
Hamas official who says that they are the parties are very close to an agreement, also cautioning that there are still some sticking points that
remain, including this notion of an Israeli buffer zone that Israel wants to maintain inside of Gaza, details concerning the identities of the
Palestinian prisoners who would be released in exchange for those hostages being held inside of Gaza.
We do know, though, that all parties are currently in Doha, Qatar, rowing in the same direction it would seem, towards potentially reaching an
agreement. And pressure is coming from both the current U.S. Administration, the Biden Administration, as well as the incoming Trump
Administration, for a deal to be reached by January 20th. But whether or not that can actually be accomplished still remains uncertain at this hour.
What is also clear is that the Israeli Prime Minister has is obviously facing and feeling that pressure from the United States, from the incoming
president with whom he would like to maintain a strong relationship.
But he is also facing pressure from within his own governing coalition, namely, two right wing ministers, Bezalel Smotrich the finance minister,
and Itamar Ben-Gvir, the National Security Minister with whom he met last night, in an effort it would seem to convince them to support, or at least
not bolt the coalition over this agreement.
But today, less than 24 hours after that meeting, the Israeli finance minister, Bezalel Smotrich taking to Twitter to make clear his opposition
to this burgeoning agreement. Smotrich warning that the current deal would be a quote catastrophe for Israel's national security, calling it a quote
surrender deal, and urging Israel to continue the fight against Hamas until a full surrender of that group, Erica.
HILL: Jeremy, thank you. And just Arlette to pick up on a couple points that, as Jeremy -- as Jeremy noted there, right? We have, of course, the
looming inauguration. We have the outgoing administration of Joe Biden, the incoming administration of Donald Trump and Netanyahu wanting to maintain a
good relationship with Donald Trump. How is all of that figuring in, in terms of getting this across the finish line?
ARLETTE SAENZ, CNN CORRESPONDENT: Well Erica, U.S. officials have certainly started to express some cautious optimism that a deal could potentially be
within grasp. There are incentives for both the Biden White House and the incoming Trump White House.
Of course, President Biden has tried to find some resolution to this war. Tried to get these hostages back home to their families for the past 15
months, really, to no avail. He is hoping that there is a chance that they could bring this to an end, try to reach some type of agreement before he
leaves office in just one week.
President-Elect Donald Trump has said that there would be all hell to pay if Hamas and Israel were not to reach some type of an agreement to try to
release these hostages. So that is why you have officials here at the White House and also on the Trump side, really working hand in hand to try to
reach some type of an agreement.
Now we heard from over the weekend and into today, senior White House officials really speaking very cautiously, not offering any predictions,
but saying that they do believe that some of the differences, some of the gaps in these talks, have resolved. They have yet to detail what exactly
those sticking points that were agreed to might be.
But here is how the Deputy National Security Adviser Jon Finer put it this morning as he talks about the possibility of a deal coming together.
[09:20:00]
(BEGIN VIDEO CLIP)
JON FINER, DEPUTY U.S. NATIONAL SECURITY ADVISER: There has been significant progress made. I am not going to sit here and make predictions.
This is been a long time coming. We think a deal has been on the table that the parties should be able to agree to for quite some time.
Hamas, up until now, has been resistant and reluctant to actually take that deal, some of the gaps have narrowed, and we very much hope that this does
come together, and we're going to stay on top of it, but I'm not going to sit here and predict exactly when it or where it will come together.
(END VIDEO CLIP)
SAENZ: President Biden and Israeli Prime Minister Benjamin Netanyahu spoke by phone yesterday, their first conversation since October, as they ran
through some of the possibilities that could arise with a deal. We also know that the Israeli Prime Minister recently met with the Middle East
Envoy for President-elect Trump, Steve Witkoff.
And a source familiar with the matter said that they really see Trump as being an incentive in these talks that Netanyahu wants to maintain a good
relationship with him going forward. And part of that could be potentially reaching this deal to have a cease fire in Gaza.
Now, President Biden's team has been asked whether it is Trump who should receive any credit if there is a type of deal, if there is an agreement,
officials here at the White House simply say this isn't a matter of politics right now or taking credit right now that their focus is trying to
get these hostages back home and have an end to this war.
HILL: And as we watch for developments, there we are, as I noted, expecting to hear from President Biden later today. This is his final foreign policy
speech. What do you expect? What are we hearing, will be the focus there, Arlette?
SAENZ: Well, Erica, President Biden is really looking to cement his legacy when it comes to foreign policy as he is preparing to wrap a more than
five-decade long career in politics and on the global stage when he leaves office next week, aides say that the president is set to talk about the way
that America has strengthened its position in the world.
A big piece of Biden's foreign policy goals, as he's been in office, is trying to shore up relationships with allies and global partners. After the
president has argued that Donald Trump, in his first term, had really damaged a lot of those relations, expect him to talk a lot about the
alliance building that he's done in the Indo-Pacific.
Also trying to rally European countries around offering continued support for Ukraine. But of course, this speech does come as the president is
winding down his time in office, while there are two ongoing wars, that war between Russia and Ukraine is set to enter its third year, and then there
is that conflict between Israel and Hamas, which really drew a lot of criticism for the president for his handling of it over the past year.
The president, of course, has also faced some criticism for the U.S. withdrawal from Afghanistan, which led to the death of 13 service members.
It's unclear how much time exactly, President Biden will spend on those areas where he's been criticized, but really the speech is supposed to book
and his presidency.
He will be speaking at the State Department, the same location where he outlined his vision for American foreign policy just four years ago, and
this will cap off his more than five decades in politics where foreign policy has really been a big animating issue for him as he spent his time
here in Washington.
HILL: Arlette, Jeremy, appreciate it. Thank you both. Ukraine's President Volodymyr Zelenskyy says he is willing to release two North Korean
prisoners in exchange for Ukrainian soldiers currently being held in Russia. On Saturday, Kyiv announced that it captured the North Koreans in
Russia's Kursk region.
Ukraine security service releasing video it says, shows the wounded POWs being interrogated. Neither Moscow nor Pyongyang has acknowledged that
North Korean troops are in fact, fighting alongside Russian forces. Ukraine says the captured troops, though, are definitive proof that Russia's army
is dependent on aid from Pyongyang.
CNN's Clare Sebastian is following these developments for us and joins us now from London. So, what more do we know about this particular situation,
Clare?
CLARE SEBASTIAN, CNN CORRESPONDENT: Yeah. I think, look, President Zelenskyy is offered to swap the North Korean troops for Ukrainians. You
know, in one on -- on the one hand, is genuine. He definitely does want to secure more prison swaps and bring Ukrainian prisoners of war home.
But I think in large part, this is also about trying to push Russia and Pyongyang into admitting that this is actually happening that North Korean
forces are fighting alongside Russian forces in the Kursk region. Neither Moscow nor Pyongyang have even acknowledged that this is happening, even
though Ukraine and the west have been saying that it's happening for several months now.
Again, on Monday, we got a carefully worded no comment from the Kremlin on this offer from President Zelenskyy, Dmitry Peskov, the Kremlin spokesman,
saying we cannot comment on the statement in any way. We do not know what is true here, or who offered what to whom, so being very careful there.
But this is important for Ukraine, on the one hand, because it shows to the west and the incoming Trump Administration that this war is not a local
issue, that it is expanding and Russia is bringing in this second country to be actively involved in the fighting.
[09:25:00]
And secondly, to show that Russia, as Zelenskyy has said, can no longer manage with outside help. So, to try to do damage, essentially, to the
reputation of the Russian Armed Forces here. And Ukraine is presenting evidence by showing this video, purportedly of these captured soldiers that
Russia is not just not commenting on this, but actively trying to hide the presence of these North Korean soldiers on the battlefield.
The security services claiming that one of the soldiers had a Russian military ID that he was carrying. President Zelenskyy also saying that it
was quite a major effort for the troops to capture these soldiers alive, because he claims Russia tends to execute them to avoid them being taken
into captivity.
So, they are sort of presenting this evidence that Russia is really trying to hide the presence of North Koreans on the battlefield in Kursk. So,
look, we cannot verify that video or the nationalities of the soldiers involved, but this offers potentially a glimpse into this murky partnership
between Russia and North Korea here.
And one that is critical, of course, for Ukraine as it tries to launch this new push in the Kursk region, presumably to give itself more leverage in
holding on to a part of Russian territory as it goes into what may be an accelerated timeline towards negotiations under President-elect Trump.
HILL: Yeah, absolutely. And in terms of holding on to some of that Kursk region, there are concerns about Ukraine's positioning on the battlefield
at this moment.
SEBASTIAN: Absolutely. I mean, I think that is the key thing here is that Ukraine is losing territory. Russia is now some three miles from this
critical transport hub of Pokrovsk in the East Russia, again today, claiming another settlement just to the southwest of Pokrovsk, rose and
Ukraine, while it is launching this new push in Kursk and is stepping up drone attacks on Russian territories.
For example, is severely outmanned manpower shortages that have not gone unnoticed by the incoming Trump Administration. The new National Security
Adviser, Mike Waltz telling ABC News on Sunday that he would push for Ukraine to lower the draft age from the current level of 25 saying that if
the west, if Ukraine is calling on the west to show its commitment to democracy, Ukraine has to do the same.
But certainly, in terms of this push towards negotiations, we got more of an insight from Mike Waltz in this interview on just how the incoming
administration views the timeline for a meeting between Trump and Putin. Take a listen.
(BEGIN VIDEO CLIP)
MIKE WALTZ, INCOMING U.S. NATIONAL SECURITY ADVISER: From President Trump's perspective, you can't enter a deal if you don't have some type of
relationship and dialog with the other side, and we will absolutely establish that in the coming months. I do you know, expect a call for at
least in the coming days and weeks, so that would be a step we -- and we'll take it from there.
(END VIDEO CLIP)
SEBASTIAN: So, a first step towards some kind of negotiations. Now clearly, look the rhetoric around ending this war in 24 hours that we've had from
President Trump on the campaign trail has been moderated somewhat his incoming Russia, Ukraine envoy Keith Kellogg says that he'll give himself
100 days.
President-elect Trump has now talked about six months, but this is clearly a hairpin bend in terms of approach from the Biden Administration, which
has tried very hard to isolate Russia. Now the Kremlin, when it comes to its response to all this, is staying sort of studiously neutral.
Dmitry Peskov saying today that such contacts would be very necessary and appropriate, but no firm plans are in place as of yet, Erica.
HILL: All right, we'll continue to watch. Clare, really appreciate the update. Thank you. Still ahead here news impacting the tech sector, after
the Biden Administration places new restrictions on the sale of advanced AI chips. We'll take a closer look at the countries impacted at why?
(COMMERCIAL BREAK)
[09:30:00]
HILL: Welcome back, I'm Erica Hill in New York. You're watching "Connect the World". Here's a closer look at some of the headlines at this hour. The
Los Angeles area facing more critical fire weather today, despite progress, crews are still struggling to contain three wildfires that have now killed
at least two dozen people, although many more remain missing.
And officials worry that any advances made could be undone by the return of gusty winds. Hamas says it is, quote, very close to an agreement with
Israel for a cease fire in Gaza and a hostage exchange deal that said Hamas official telling CNN several sticking points do remain, talks are currently
underway in Qatar.
Just weeks after Dominique Pelicot was found guilty of rape and sexual assault, his daughter says she believes her father drugged and raped her
too. Caroline Darian, speaking to the BBC in a wide-ranging interview, described police showing her images of herself lying unconscious on a bed
wearing just a t-shirt and underwear.
She said the images were found on her father's computer and that she didn't immediately recognize herself. During the trial, Dominique Pelicot said he
did not abuse his daughter. And just a week before Donald Trump takes off as the Biden Administration unveiling a fresh round of restrictions on the
export of U.S. developed computer chips that power artificial intelligence.
It's a final effort to prevent adversaries like China from accessing the advanced technology. These new proposed cobs are the White House --
designed by the White House to control which countries around the world could get their hands on those advanced chips. And the announcement comes
amid soaring global demand, of course, for AI chips.
CNN Business Writer Clare Duffy is covering this story for us from New York. Clare, good morning to you. So, in terms of these AI chip
restrictions, who or what are they specifically affected?
CLARE DUFFY, CNN BUSINESS WRITER: Yeah, Erica. And this is just the latest round of restrictions on sales of AI technology, advanced AI technology to
China, of course, all aimed at blocking China from advancing its military and industrial efforts, maintaining U.S. technology leadership. But these
new restrictions are quite broad. They essentially divide the world into three tiers.
The first tier is, includes U.S. allies like South Korea, Japan, Australia, Taiwan. They will face no new restrictions. The second tier includes China
and Russia, which are already blocked from buying advanced AI chips. They will now face restrictions on buying closed source AI models.
These AI models whose underlying architecture is not available to the public is not open source, and that includes models like those from open AI
and Microsoft. And then this third tier is really the biggest. It includes much of the world, and those countries will face restrictions, will face
limits on the amount of computing power that they can buy.
And this is intended to prevent China from going around the U.S. restrictions and accessing advanced chips from third countries, especially
in the Middle East. And Erica, I think the timing of this is really interesting, just one week before Biden leaves office, which could point to
how big of a priority this is, this U.S.-China tech war that continues to evolve.
But it also is going to potentially ratchet up tensions, not only with China, but also with the AI industry as the Trump Administration takes
office.
[09:35:00]
HILL: Absolutely and in terms of that timing, right and what we're seeing, what is the reaction so far?
DUFFY: Yeah, the industry really has already seen its bottom line take a hit from these restrictions on AI sales to China, and the industry is not
happy about these new rules. They say they could harm U.S. technology, leadership and economic growth. Here's what the Vice President of
Government Affairs for Nvidia, Ned Finkel, said -- he said, while cloaked in the guise of an anti-China measure, these rules would do nothing to
enhance U.S. security.
Now there will be a 120-day comment period for the industry before these new rules take effect. So, we could actually see the Trump Administration
again changing these rules before they go into effect. And I imagine they will already be getting calls from leaders in this industry.
Lot to watch for there. Clare, appreciate it. Thank you. Still ahead the battle to contain the deadly wildfires in Southern California, fire crews
in a desperate new race against the clock at this hour, that's straight ahead.
(COMMERCIAL BREAK)
HILL: Fire crews are making some progress battling deadly, destructive wildfires in Southern California. And they're working feverishly to
maintain that progress and hopefully get a little bit more containment before the expected return of gusty winds, which could hamper those
efforts.
At least 24 people have died, dozens more remain missing, and thousands of structures have been damaged or destroyed. Amid that devastation, there has
also been an outpouring of love and support.
(BEGIN VIDEO CLIP)
JENNIFER DENHARTOG, VOLUNTEER FROM LONG BEACH: I just needed to come out and do something to help people I don't -- sorry, I feel so bad for the
people just wanted to come help somebody. That's all I can do. I can't give a bunch of money, but I can come get my time.
(END VIDEO CLIP)
HILL: CNN's Michael Yoshida joins us now from Pacific Palisades, California. So where do things stand at this hour? Sun just starting to
come up out there.
MICHAEL YOSHIDA, CNN CORRESPONDENT: Hey, good morning, Erica. You talk about trying to contain these massive wildfires throughout the weekend,
crews working nonstop to try and push up those numbers that last check this morning, just a short time ago, with Cal Fire, we know the Eaton fire
around 33 percent contained.
The Palisades fire around 14, but with the return of those strong gusts, this extreme threat for these fires, crews have been staging throughout
this area, further up into the mountains. We know the governor saying crews are staging there with their apparatus, with the return of those winds, for
any potential shifts that may happen here in this neighborhood.
You can see the crews behind me still. We've seen this throughout the morning. Cal Fire vehicles, these fire trucks making the rounds, staging to
be prepared. As we pull back a little bit, you can see, obviously, right here, so much devastation and destruction, but just a street over some
homes still standing.
Obviously, crews want to be here, in case those winds pick up, those flames shift once again and may return this way.
[09:40:00]
Just so much work to be done this morning, still as they now, according to officials say, wait and see what mother nature brings at the start of this
week.
HILL: Yeah, there's been so much focus on, obviously, with any fire, we always talk about containment. It was 0 percent for so long. I know there
is some containment this hour the wildfires, but the concern about what that means with the weather that is on its way and how that could impact
those efforts. Is there any way to shore that up ahead of those winds?
YOSHIDA: For sure. So, something hearing from officials that they've been obviously watching closely, they've been inching along. You know, we had 0
percent for so long, and we started to see those numbers rise. But with the way the winds are going, there's been talk that potentially maybe, if
they're from a direction that's beneficial, maybe they'll help push the fire back onto itself, into areas that maybe had already burned.
There won't be that fuel for these flames. But again, really kind of at the mercy of mother nature here, in terms of what those winds could potentially
mean during the first few days of this week.
HILL: The pictures are just, I mean, they devastating, and so many of them really defy words when we see them. The concern for so many people is when,
a lot of them when they'll even be able to get back into their neighborhoods to confirm what is or is not left of their homes, and then
the cleanup comes after that.
Where do we stand in terms of those discussions about first getting people back to see what remains and then also what comes after, which, of course,
is the cleanup and hopefully eventually the rebuild?
YOSHIDA: For sure. So, you see the images on TV, and you know, families, people are wondering, well, what happened to our home. Throughout the last
few days, we've seen those lines at those checkpoints trying to get back into these neighborhoods. At this point, officials saying it's not safe to
come back yet.
They've talked about potentially Thursday as maybe a target date to start letting some families back in. But it really all depends on how do those
winds play out today, tomorrow? How do those containment lines go in terms of getting those active, major wildfires that Eaton, the Palisades under
control?
But it's not just the concern about the fire, officials saying this morning. It's also what you see around me, all of this debris, all of this
toxic material that could be in the air be around. Also looking down the street, we're surrounded by downed power lines. There're all these other
hazards that officials are worried about and why they're pleading with people to have patience, not to try and push it, not to try and get back
into these neighborhoods.
Once they're here, though, you mentioned it, it's a long recovery process after that, officials hoping maybe in six to nine months, they can start to
get all of this toxic debris out of here. And then becomes the question of, how do you rebuild from something like this? What resources are available?
What support will there be for all of these families that have just been absolutely devastated by these wildfires?
HILL: Yeah, absolutely so, so many questions at this time. Michael, really appreciate the reporting. Thank you. Just moments ago, the Mayor of
Pasadena, California, Victor Gordo, spoke with my colleague, Sara Sidner, laying out the situation there. Here's some of their conversation.
(BEGIN VIDEOTAPE)
VICTOR GORDO, MAYOR OF PASADENA IN CALIFORNIA: So, you know, in Pasadena, we're still in -- We're seeing some smoldering we're seeing some flare ups,
but nowhere near the wind fed fire and -- that we saw in the past few days. We are concerned about the pickup in the winds from 30 to 50 miles an hour.
Again, not close to the 100 mile an hour winds that we -- wind vest that we were seeing just a few days ago, but still very significant.
SARA SIDNER, CNN REPORTER: Can you describe the historic significance of some of the areas that have been devastated by the fire. And what they have
meant, particularly to the black and Latino population of Los Angeles?
GORDO: You know, these areas of Pasadena, Northwest Pasadena and Altadena are heavily populated by Latinos and African Americans and Asian Americans,
really, in large part because of the red lining that would occur decades ago in Altadena was thought to be sort of the boonies of the community,
when in fact, it's a beautiful, beautiful community that's just been absolutely devastated.
But the impact of the fire, particularly in Northwest Pasadena and Altadena, very -- is felt very much by working class, often retired in
fixed income. African American families and Latinos who passed on these homes for generations. And sadly, many of them -- for many of them, it's
all that they have in their family.
SIDNER: Yeah, it's all that they have. When you talk about red lighting, this was the place where black and Latino families were able to go because
they couldn't buy in other places in parts of Los Angeles.
[09:45:00]
You know, there was already a homeowners insurance crisis where people were getting dropped or not being able to renew policies in California because
of previous fires. Is insurance coverage the next disaster for Californians, in your mind?
GORDO: No question. I've had conversations with the governor, with representatives from the county, and representatives at the White House and
the Director of FEMA, and what I've said to them is the looming crisis after you, if you will, is the insurance crisis. Many people were dropped
not too long ago.
Many people are will be woefully under insured, and many people may not have insurance because they simply couldn't afford it. You know, many of
their homes, because they were passed on from generation to generation, didn't require insurance, and people who couldn't afford it may not have
insured.
And so, this is an issue that we as a society have a moral and obligation to address together, to help these people, particularly those that were
under insured or had no insurance at all.
(END VIDEOTAPE)
HILL: Still to come here, Donald Trump's cabinet picks set to face their first drilling on Capitol Hill. We'll take a closer look. Plus, a powerful
potential challenger to Elon Musk's SpaceX. Jeff Bezos' space company attempting to launch one of the most powerful rockets in the world. Those
details also ahead.
(COMMERCIAL BREAK)
HILL: Preparations are underway for Donald Trump's inauguration as the 47th President of the United States, Inauguration Day One week exactly from
today. Republicans today, meantime, will kick off confirmation hearings for Trump's cabinet picks. They're getting ready to do those hearings tomorrow
some of the more controversial ones.
Donald Trump's pick for Secretary of Defense, Pete Hegseth, is expected to be up to pat quickly on expecting as well some of the others who will go
first through this process, Pam Bondi, Robert Kennedy Jr., and Kristi Noem. CNN's Steve Contorno tracking all of this for us.
So as these preparations are underway for confirmation hearings to begin ahead of the inauguration, where do things stand this morning, Steve?
[09:50:00]
STEVE CONTORNO, CNN REPORTER: Well, the Trump campaign and transition team is very optimistic at this point. They are far ahead of schedule compared
to eight years ago, when Donald Trump's cabinet took weeks and weeks to get confirmed, and this early effort and the confirmation hearings.
We're going to have 13 of them this week is a sign that this Republican controlled Senate is intent on getting as many of Trump's nominees
confirmed as soon as he takes office. And there have been intense preparations underway and rigorous mock hearings, we have some of which
have lasted for a couple of hours that they have -- as they have tried to get these nominees prepared for this process.
Some of these individuals have never gone through anything like a Senate confirmation hearing before Pete Hegseth, for example, his background is as
a Fox News anchor. So, he doesn't necessarily have a background in Capitol Hill, but these meetings that they've been holding behind the scenes have
been focused on getting Hegseth to confront his past controversies, his past statements, getting him ready for whatever democratic attacks they can
expect, and that is something they have been doing for all of Trump's nominees.
Now, Republicans publicly have saying that even though Trump's cabinet may be a little unconventional, Americans, should give them a chance. Take a
listen to what Senator Katie Britt told State of the Union yesterday.
(BEGIN VIDEO CLIP)
SEN. KATIE BRITT (R-AL): What President Trump has done is he has selected people who are willing to not move as business as usual, but yet are ready
for action. They understand his vision for the nation. They understand the mandate that was given on November 5th, and they understand that time for
talk is gone, and time for results and action is now --
(END VIDEO CLIP)
CONTORNO: The expectation for this incoming cabinet is that they will be intensely loyal to the president-elect. That wasn't necessarily the case
eight years ago. If you go back and watch those hearings, many of Trump's nominees were actually defensively, defending their own positions and going
up against what Donald Trump had said on the campaign trail.
But now that is not what we expect eight years later, this is a much more loyal cabinet than what Trump had the first time.
HILL: All right, Steve Contorno with the latest from West Palm Beach this morning. Thank you. Millions of U.S. TikTok users are awaiting a ruling
from the Supreme Court as the justices consider arguments on whether to uphold a controversial nationwide ban. That ban is set to take effect on
January 19th.
That, of course, is Sunday, unless the app is sold or the Court steps in. CNN's Brian Todd has more now on Friday's hearing and also the high stakes
debate between national security and free speech.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): The nation's highest court on the brink of deciding whether to uphold a controversial ban of TikTok in
the U.S. A ban already approved by Congress and signed into law by President Biden. TikTok, arguing a ban would violate free speech.
CARRIE CORDERO, CNN LEGAL AND NATIONAL SECURITY ANALYST: There is a compelling First Amendment issue here, which is that this involves the
access to information on behalf of tens of millions of Americans.
TODD (voice-over): Specifically, more than 170 million Americans who use TikTok according to the platform, more than half the U.S. population. But
it appears a majority of the Supreme Court is likely to uphold the TikTok ban, some including Chief Justice John Roberts, countering TikTok's
lawyers' free speech argument.
JOHN ROBERTS, CHIEF JUSTICE OF THE SUPREME COURT: It seems to me that you're ignoring the major concern here of Congress, which was Chinese
manipulation of the content, and acquisition and harvesting of the content.
TODD (voice-over): TikTok is owned by a Chinese company that U.S. officials worry could be beholden to the communist government in Beijing, and could
conceivably help the Chinese regime spy on Americans.
CORDERO: That the Chinese government could demand data from TikTok and that it is covertly manipulating content that Americans receive.
TODD (voice-over): TikTok denies that, saying it safeguards users' privacy. President-elect Trump initially supported a ban on TikTok in the U.S., then
reversed course and is now seeking to pause the ban.
DONALD TRUMP (R), FORMER U.S. PRESIDENT AND CURRENT PRESIDENTIAL-ELECT: We love TikTok. I'm going to save TikTok.
TODD (voice-over): A ban in the U.S. would have an enormous cultural impact, analysts say, because, contrary to some perceptions, it's not just
a platform for goofy stunts and dance videos.
CHRIS STOKEL-WALKER, AUTHOR OF "TIKTOK BOOM": Now you can get educational videos. You can get news reports. Many major organizations as well as
politicians, including President Biden, have taken to the app.
TODD (voice-over): And the impact on American businesses of a TikTok ban in the U.S. could be staggering.
DUFFY: By TikTok's own estimate, there are 7 million U.S. small businesses who could stand to lose a billion dollars in revenue.
TODD (voice-over): Businesses like Summer Lucille clothing boutique in Charlotte.
SUMMER LUCILLE, BOUTIQUE OWNER AND TIKTOK INFLUENCER: I get 80 percent of my business from TikTok. I know it will cripple me, and I will be
devastated.
TODD (voice-over): The TikTok ban in the U.S. could take effect on January 19th, unless TikTok is sold to other owners.
[09:55:00]
Once a ban takes effect, experts say. If you buy a new phone, you won't be able to download TikTok if you already have it on your phone --
DUFFY: If you already have the app on your phone, it's not just going to disappear, but you'll no longer be able to update it, which means that
eventually it would become buggy, it might have security vulnerabilities, and eventually it would become unusable.
(END VIDEOTAPE)
TODD (on camera): If TikTok is taken off the U.S. market, who stands to benefit? Where would TikTok users go? Analysts say Instagram, Snapchat and
YouTube would likely pick up a lot of that business because they already offer short form video feeds similar to TikTok on their platforms. Brian
Todd, CNN, Washington.
HILL: Finally, this hour, a no go for launch for Jeff Bezos' Blue Origin rocket in Cape Canaveral, Florida. 30 story tall, New Glenn rocket was
expected to launch into the space for the first time early Monday morning, but there was an issue engineers just couldn't resolve in time.
New Glenn is the first rocket developed by Blue Origin that aims to send satellites into space, into orbit rather and is hoping to compete with Elon
Musk's SpaceX. Well, that does it for this hour of "Connect the World". But much more to come after a quick break, we'll see on the other side.
(COMMERCIAL BREAK)
END
