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NEWS STREAM

Russia's President Holds Marathon Press Conference; EU Leaders Discuss Surge in Migration, Future of Schengen; Afghan Refugees Feel Forgotten; Star Wars Opens With Much Fanfare; Japan's Casino Adult Daycare Centers; Mainland China Bristles at $2 Billion U.S. Arms Deal With Taiwan. Aired 8:00a-9:00a ET

Aired December 17, 2015 - 08:00   ET

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

[08:00:19] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News stream.

Now, as Russia's president faces the press about foreign policy, we'll take you to a warship off the coast of Syria.

Plus, EU leaders discuss the huge surge in migration and threats to Europe's open borders.

And spoiler alert, we'll tell you how to avoid finding out what happens in the new Star Wars movie before you see it.

We begin in Moscow with tough words from Vladimir Putin. The Russian president delivered his marathon news conference. Over the course of three

hours, he rejected international efforts to oust Syrian President Bashar al Assad. He says only the Syrian people should determine who should govern

them.

He also took aim at the leadership of Turkey.

Now, our international diplomatic editor Nic Robertson joins me now live from London. And, Nic, Putin's presser comes at a time of ever

increasing tension between Russia and Turkey and Mr. Putin used some very harsh words to address that.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: He did. I mean, he said that the Turkish authorities were to blame here, that this was a

function of the Turkish government, their leadership. He said that they had no reason to

shoot down the Russian plane, that there were plenty of other recourses that they could have used to try to deal with the issue as they faced it.

And he said that Turkey had just gone on to hide behind NATO, even though that that wasn't particularly NATO's interests.

But he also went on to say, look, we have nothing against the Turkish people. We're not at war with the Turkish state, but it's the Turkish

leadership we don't understand why they acted the way they did.

What was very interesting in all of his conversations with journalists here, was that in previous years we've seen him be critical of the United

States and he was given the opportunity to do that here, but he didn't really seem to choose to do that. And instead he said on the issue of

Syria, that he supports what the United States is doing diplomatically. This is what he said.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): We support the

initiative of the United States including the preparation of the resolution of the United Nations about the project, the draft resolution of the state,

secretary of state, that suits us overall.

I think that following the coming acquainted with this, the Syrian people must decide, but they might not like something. If we look at the

attempts to solve the conflict of many years, it's always possible that there have to

be compromises. So, there may be something they do not like. But it has to be an acceptable proposal and we have something to work on.

(END VIDEO CLIP)

ROBERTSON: So, what he laid out was the fact there should be a new constitution, that there should be a mechanism towards elections, then the

elections and the resolving the grievances. What he said about President Assad was and this iis the position that Russia has had for some time and

that it believes that who becomes president in Syria next should be up to the Syrian people.

So they are not backing away directly in their support from Bashar al Assad but we can read into that they are willing if you will, if the

Syrians vote for someone else, for it to be someone else. And the United States, for its part, has indicated that it has -- it can see a transition

period for President Assad and this is a softening of their position.

But you still have this sort of Sunni bloc of nations that Saudi Arabia has put together to see if they would agree for this as part of the

problem solving the solution, diplomatic solution for Syria.

So I think the tone of what Putin was saying here, particularly given in the past so critical of the United States in the context of Syria, at

least and more broadly, was certainly more in tune with keeping on good terms with the United States on that issue.

LU STOUT: Got it. So, a solution oriented address in regards to Syria and the conflict there from Vladimir Putin during that marathon press

conference.

Nic Robertson joining us live with analysis. Live from London. Thank you, Nic.

Now, the Russian warplanes striking Syria, they take off from an air base in the western part of the country. And CNN was given rare access to

Russia's military.

Now here is our senior international correspondent Matthew Chance.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: This is how the Kremlin supports its Syrian allies and battles its enemies. We gained rare

access to the Syrian base at Latakia, now the military hub of Russia's air war. This really does feel like the center of a massive Russian military

operation. The air is filled with the smell of jet fuel, and the ground shudders with the roar of those warplanes returning from their bombing

missions. Russia's defense ministry says more than 200 targets have been struck in just 24 hours, 320 militants killed, it says, from ISIS and other

rebel groups fighting the Syrian government and its President, Bashar Al Assad.

So I am joined by General Igor Konashenkov. He's the Chief Military Spokesman for the Russian government, the Russian defense ministry. Thank

you for the trip. He's escorting us here on this trip to the Lattakia Military Base. Let me ask you that question. That question about who you

are targeting. Is it ISIS or are you supporting Assad?

[08:06:17] IGOR KONASHENKOV, CHIEF MILITARY SPOKESMAN FOR THE RUSSIAN GOVERNMENT (through translator): I can answer that question with our

actions. Every day we show you how Russian aviation is fighting international terrorism, destroying their infrastructure in Syria.

CHANCE: On our tour of the base we were shown how Russia carefully arms its bombers, with high-tech precision weaponry. We also saw unguided

or dumb bombs being loaded. Human rights groups accuse Russia of killing civilians from the air, A charge the Kremlin strenuously denies.

Right well, there's another plane coming in now just touching down. It's a SU-24 that's going to be very noisy. But it's just carried out an

air strike somewhere in Syria against rebel targets, either ISIS or some other opposition group. Russia says it's stopping ISIS in its tracks,

striking their assets and shrinking the territory they and other rebel group's control.

And after more than 4,000 sorties over Syria, this Kremlin air war shows no sign of winding down.

Matthew Chance, CNN, at the Latakia Air Base in western Syria.

(END VIDEOTAPE)

LU STOUT: The U.S. and Taiwan just sign an almost $2 billion arms deal. They've had other weapons sales before, but this is the first major

deal in years.

Now U.S. officials says the military package is almost exclusively for defense. It includes assault vehicles and anti-ship and anti-aircraft

systems. However, the sale has not made China happy. Beijing blasted the U.S. after the sale was announced.

Matt Rivers joins me now live from Beijing. And Matt, just how angry is Beijing about this U.S. arms sale to Taiwan?

MATT RIVERS, CNN CORRESPONDENT: Kristie, they are not happy but then again they are never happy when these arms deals happen between the United

States and Taiwan as they have for decades now. In this most recent deal, Beijing accused the U.S. of violating international law, saying that U.S.

sales to Taiwan violate -- harm Chinese security interests.

In this case they also threaten to sanction U.S. companies involved in this sale. CNN has learned that the two main U.S. companies involved would

be defense contractors Ratheon and Lockheed Martin.

That said, we have heard more heated rhetoric from Beijing in the past. So while there has been criticism in this particular deal, we've

heard worse previously.

LU STOUT: In the backdrop to this big arms sale, increasing tension over the islands dispute in the South China Sea. So, how does this near $2

billion arms sale to Taiwan figure into that?

RIVERS: Well, it's certainly something that the U.S. is keeping its eye on here in this region. There have been a lot of tensions around that

issue for some time now. And so you could certainly perceive the U.S. sale to Taiwan at this point as trying to bolster one of its allies in this

region against what it would call China's incursion into the South China Sea building up those artificial islands.

The State Department spokesman on Wednesday was asked that by reporters at his briefing and wouldn't get into specifics but what he did

say is that the U.S. makes these types of sales to Taiwan based on merit, essentially, based on it looking at the current defense situation for Taiwan and then making the

determination whether or not Taiwan's military capability should be upgraded and then offering these sales.

And so there certainly remains the South China Sea looming over this entire area. And it's the United States, and Taiwan, consider very, very

closely.

[08:10:17] LU STOUT: All right, Matt Rivers reporting live from Beijing for us this evening. Thank you very much, indeed, for that, Matt.

Now, the U.S. and Cuba, they have agreed to restore commercial flight service between the two countries. A U.S. official tells CNN, the deal it

was finalized on Wednesday night and an announcement is expected soon.

Now U.S. airlines have not had regularly scheduled flights to Cuba since the 1960s when a travel ban went into effect.

But this won't be immediate, the U.S. needs to ensure certain safety regulations are in place.

Markets around the world jump higher after the U.S. central bank raised its key interest rate. And after the break, we've got a live report

from Hong Kong on how investors are responding to the move.

And as migration numbers swell across Europe, EU leaders are meeting in Brussels this hour to talk over threats to Europe's open border policy.

And for those of you Star Wars fans who haven't seen the movie yet, well we'll tell you how to make sure that you steer clear of any spoilers

online.

(COMMERCIAL BREAK)

LU STOUT: Oh, what a sparkling night. Coming to you live from Hong Kong, you're back watching News Stream." And investors around the world

are cheering the U.S. Federal Reserve raising interest rates for first time in more than nine years. Now, future increases are to be gradual here.

U.S. markets, they are all in positive territory ahead of the open. It was just a quarter of a percentage point change, but it's seen as a sign that

the U.S. economy is on the right track.

Now, let's bring in our Asia-Pacific editor Andrew Stevens. And are global markets still cheering on the move?

ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Absolutely. Just to put this in context, since December 2008, for seven years, money has been

virtually free from the fed. They've been trying to give it away to support the U.S. economy. And now we have a line drawn under that.

The fed now says very clearly that the U.S. economy can stand on its own two feet. It doesn't need this life support, this punch bowl it's

being called, to help it go.

So that is one symbolic reason, and a very good reason, why investors are actually seeing the world's biggest economy strong enough to carry on,

on its own. So we get this rally.

But perhaps more important than that for investors is Janet Yellen, the fed chief, saying the interest rates will continue to rise but slowly,

gradually and we will take into account exactly what's happening on the ground in the U.S. economy before we make any decision. That's what investors like to see.

[08:15:20] LU STOUT: And that's why global markets are rising on the back of the news. But currencies outside the United States, U.S. dollar

right now is looking very, very attractive, so downward pressure on global currencies, especially here in Asia.

STEVENS: Spot on. So, what happens as interest rates rise, those -- that jurisdiction, if you like, the dollar, becomes more attractive because

you've got higher interest rates. So, money gets in to get stronger returns. And a lot of that comes out of weaker areas, usually emerging

markets. And that what we've been been seeing in Asia, in Africa, in Latin America, but not just recently. This has

been going on, Kristie, for -- you know, since the taper tantrum, as we call it, when there were first indications the fed was serious about trying

to wean the U.S. economy off this cheap money.

So currency is falling. It you look just since the beginning of this year, the Malaysian Ringgit down 18 percent, the Australian dollar down.

The Indonesian Rupiah, all down, but the markets today responded positively, the stock markets.

So, it seems to have a bit of a contradiction, but I think a lot of this is being baked into these currencies. And it all depends now just how

strong or how much higher interest rates goes. If they continue to rise quickly, investors will still be pulling money out of the emerging markets,

putting it into the U.S. dollar. The currencies will go down. And the reason it's a problem, is because so many companies in these emerging

markets have been borrowing cheap U.S. dollars. They've got to pay it back. So the stronger the dollar gets, the more painful it is to pay it

back. So, that's where the rub is if you like.

So, that's what we're going to have to be watching out for.

LU STOUT: Gotcha.

And also the fed's next move here, is it your sense that the fed is opening the door to more change ahead but in either direction? What should

we expect?

STEVENS: Well, who knows is the short answer. But more than likely, erasing

certainty, the next move will be up because the last thing you want to do is put them up and bring it back down. That's sows huge amount of

confusion.

What they are saying is, yes, they are going to rise, but we are going to be so careful how they do it.

This has been sort of characterized, if you like, in the markets by saying they've taken -- they stopped this dependence on free money, but

they haven't completely taken the punch bowl away yet.

So really, yes, rates are going to go up, but very, very slowly, very cautiously to keep everything in balance, basically, to make sure this U.S.

economy -- and let's face it, the U.S. economic growth story is not very strong, they don't want to snuff it out and they don't want it to get out

of control, where inflation gets out of control where they have to put rates up quickly. So, it's this balancing act they have to do now.

LU STOUT: Got you. Andrew Stevens there, thank you very much for lending your insight and analysis to us right here on News Stream. Take

care.

All right, now Star Wars: The Force Awakens, it is finally officially out and so are the reviews.

Now, the latest installment of the sci-fi franchise is the most anticipated movie of the year and fans have been eager to see if the

director JJ Abrams can live up to the Star Wars legacy. So, did he do it?

Well, the editor-in-chief of the film reviews say Rotten Tomatoes, calls the movie, quote, "phenomenal."

(BEGIN VIDEO CLIP)

MATT ALCHITY, EDITOR-IN-CHIEF, ROTTENTOMATOES.COM: This is the movie we've been waiting 30 years for. This is really a lot of fun. And seeing

it at the premiere with people that excited about it was something I'll never forget, that was really exciting.

One of the things that I think really shows how good this movie is, is at a movie like this, especially at a premiere, you're going to see

cheering when a character that we all know and love shows up right at the screenings and that happens in the premiere that stopped very quickly

because people were so engaged with the film.

And this movie starts with a bang right off the bat, really active. The new cast here is amazing.

UNIDENTIFIED FEMALE: Phenomenal.

John Boyega is really great. Daisy Ridley lights up the screen. Oscar Isaac really gets you into his character with minimal dialogue right

off the bat. You really feel like you know that character. Adam Driver is great.

I really like this movie.

(END VIDEO CLIP)

LU STOUT: It's a foregone conclusion, I have to see the movie.

Now, Rotten Tomatoes, it gave The Force Awakens a rating of 95 out of 100. And fans have gone to drastic measures to avoid movie spoilers. Many

are even logging off all social media accounts. And some recommend staying off the Internet entirely.

Now, here is another way to stay spoiler safe online. Force block is a Google Chrome extension that blocks sites containing spoilers from The

Force Awakens and you can turn it off once you catch the film.

Now, you're watching News Stream. And still ahead in the program, no, this

isn't a casino on the Vegas strip, but actually a senior center in Japan, how gambling may help keep minds sharp.

(COMMERCIAL BREAK)

[08:23:53] LU STOUT: Welcome back. Now, Japanese seniors are trying their luck at casino games like poker and Black Jack, but the payoff is

better than gold. Will Ripley has more.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT: Welcome to Las Vegas, no, not the American gambling mecca. We're in Yokohama, Japan about an hour from

Tokyo. And this isn't actually a casino, it's a senior day care center complete with slot machines, card games, and plenty of Japanese senior

citizens testing their luck.

We're told the average age in this room, around 80.

American pop music plays while they stretch, then staff members hand out fake money. Casino gambling with real money is illegal in Japan, so no

cash or prizes are handed out here. And the big winner is recognized at the end of the day.

The most popular games, pachinko, mahjong and blackjack.

Gambling is a favorite pasttime of seniors all over the world. And here in Japan's rapidly aging society, elder care is a booming business.

One in four Japanese are now over 65.

Japan has some 40,000 adult day cares and dozens of these casino themed day cares have opened up just in the last year.

This company alone opened seven last year. They plan to open up five next year. And they tell us on average, about half of the patients who

come here have either Alzheimers or some form of dementia.

[08:25:10] UNIDENTIFIED MALE (through translator): We believe this casino stimulates the brain and helps to prevent or suppress the

development of demetia.

RIPLEY: The chairman of this company points to research from a Japanese doctor and professor who they compensate saying gambling

stimulates the brain.

And there are studies that show that recreational gambling in moderation can improve a senior's overall health and quality of life.

These folks say they get lonely at home and the interaction with others really helps.

UNIDENTIFIED FEMALE (through translator): I've lived alone for decades. Many days I don't speak a word. I feel very depressed, but here

we play games and talk.

UNIDENTIIFED MALE (through translator): i use my brain playing mahjong and I use my fingers. I believe it helps stimulate my mind.

RIPLEY: Several Japanese communities have either banned or are considering banning gambling at senior centers, putting in jeopardy one of

Japan's favorite pasttimes for its fast growing silver generation who apparently loves striking even fake gold.

Will Ripley, CNN at Las Vegas, Yokohama, Japan.

(END VIDEOTAPE)

LU STOUT: Hm, gambling in a graying economy. Interesting idea.

You're watching News Stream still to come on the program, squeezing in one more crucial meeting before the end of the year. EU leaders hold talks

in Brussels that could have repercussions for European travel.

Also ahead, a group of forgotten refugees holds out hope for a new life in Europe. Their story is next.

(COMMERCIAL BREAK)

(HEADLINES)

[08:30:57] LU STOUT: EU leaders are in Brussels for their final summit of the year. They are discussing key issues, including Britain's

demand to reform its relationship with the EU and how to respond to a huge rise in the number of migrants wanting to enter Europe.

The possibility of tighter border control is also on the table.

And that could mean changes to Europe's longstanding policy of passport-free travel.

Now for more, Isa Soares joins me now live from CNN London. Isa, given the number of terror alerts and the surge in migration, is that

principle open border seriously at risk here for Europe?

ISA SOARES, CNN CORRESPONDENT: Well, Kristie, if you listen to some of the rhetoric coming from some Eastern European leaders you would assume

that to be the case.

I don't think a lot of people here in Europe want to see that, but still this is still the greatest European achievement to date, Kristie.

But if you listen to what some of the European leaders have been saying, particularly the Europe Commission chief, Jean-Claude Juncker, he

said Europe, the European project Schengen European project was partly comatose, those are his words, and then Donald Tusk (ph), you just saw

there video of him there, he also said we're in a race -- I'm quoting him here -- on a race against time to save Schengen.

So, what Europe is trying to do is come up with proposals to really strengthen European borders, like you said, in light of what happened in

Paris -- terrorist attacks in Paris, given that terrorists made their way from Syria to Paris via many of the migrant routes.

So, one of the key points they want to do is re-strengthen the frontex, this is at the border agency.

At the moment, it's just patrolling the Aegean as well as the Mediterranean. They want that to include land, so on sea and land.

That would include, Kristie, 2,000 or so guard force -- strong guard force, that could be deployed any time to any border without the consent of

any particular country.

So you can see already how many fissures and ruptures there could be with many countries, particular those in eastern European borders basically

saying there is no way we're giving up our sovereignty to any one power.

One thing they do agree with, is they are trying to share information, passenger information between each country to strengthen that because

that's critical when it comes to trying to protect borders in light of the terrorist attacks, Kristie.

LU STOUT: Yeah, border control, security, that's definitely up for discussion during this EU summit. And also reform as well. The British

Prime Minister David Cameron, he wants to discuss reform plans. And he wants a deal, a new deal before that in/out referendum due to take place in

about 2017.

What exactly is Mr. Cameron asking for?

SOARES: Well, he is asking for a lot. And there's a lot on the plate today. So, he might have to wait for after dinner to get his point across.

What he wants, he wants to limit welfare payments to EU workers after a period of four years. This is something that will no go down well.

Already it's a political hot potato. Sure, he has a lot of pressure here at home, but many in Europe will say, look, this goes against a very

principles of the EU. And they will find it very hard to try to justify to the European citizens why they are -- really the British Prime Minister

David Cameron, is discriminating, as they would say, against them, Kristie.

So, it will be very tough for him, very tough sell. He might have to budge here or there slightly.

LU STOUT: All right. Isa Soares reporting live from London for us. Thank you very much indeed for that, Isa.

Now, the shear number of migrants entering Europe this year is unprecedented. The international organization for migration says that

nearly 1 million have successfully made the journey by sea, that's up more than 300 percent from last year. It also does not include the 5,000 around

the world who died trying.

Now, the plight of Syrian refugees, that is well documented but there is another group of refugees hoping to cross from Turkey into Europe.

Sara Sidner found a community of seemingly forgotten Afghan migrants just waiting for their chance at a better life.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: The universal sign for hunger, the desperation isn't just felt by the children, but adults too.

Once a day, dozens are able to can get something in their stomachs only because of the kindness of strangers who live nearby.

While the world focuses on Syria, these refugees seem to have been more gotten. Their war has lasted a lifetime and continues to bring death

to their doors.

[08:35:07] UNIDENTIFIED MALE: They kill everywhere, everything, they finish everything. They kill it, or Afghan soldiers, they kill it, or our

family leaders and my father. And I don't know where is my mother, where is my sister.

SIDNER: Sammy Rezai (ph) says the Taliban gave his family no choice. They escaped Afghanistan hoping to find a new life in Europe. But nearly

3,000 miles and several thousand dollars later, all they have found is purgatory in Turkey.

And a new struggle finding the money to pay for the daily medication the two children must have. Their mother Jowati Akari (ph) is beside

herself with worry, explaining the eldest needs nine pills a day, the younger four. They are running out.

UNIDENTIFIED MALE: If we don't give him the tablets he's especially - - his especially shouting, mind is out of control.

SIDNER: This is just one family in the midst of dozens of other Afghans waiting by the sea for their last hope, a boat to Greece, the

gateway to Europe. They can't stay here, because in 2013 the United Nations refugee agency stopped accepting new asylum applications from

Afghan refugees in Turkey.

Their new life is just a 35 minute boat ride on the Aegean Sea. They are all aware they may never make it.

UNIDENTIFIED MALE: Maybe we will die in the sea because the boat is not standard.

SIDNER: Mirwas Biyat (ph) knows about the boats that capsize on an almost

daily basis and no one here can swim.

But these families say they cannot survive in the modern day ruins they have found shelter in on the Turkish coast. There is no running

water, no electricity, no heat. So they wait for their chance to board the ill-prepared boats hoping the current will be kind.

As we leave, Biyat (ph) whispers, if you were me, you would kill yourself. That is how hard life is for those of us who wait.

Sara Sidner, CNN, Turkey.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

LU STOUT: A man in Thailand is facing harsh punishment for mocking the king's dog. His lawyer calls the situation absurd, but Thai laws

forbid insulting the monarchy.

CNN's Lynda Kinkade has the story.

(BEGIN VIDEOTAPE)

LYNDA KINKADE, CNN CORREPSONDENT: Defaming the royal dog could mean decades in prison for this Thai man. Police escorted (inaudible) into a

military court in Bangkok on Wednesday.

The 27-year-old factory worker faces multiple charges over his recent Facebook post about Thailand's king and his favorite dog, Copper. The post

has since been removed, but a lawyer for the accused says it was satirical in nature . Sh adds that while Thailand has one of the world harshest

royal defamation laws, it does not apply to pets.

PAWINEE CHURMARI, DEFENSE LAWYER (through translator): In this case, no matter how you interpret the law, it does not cover the dog. But we

don't know if the post was only about the dog or if it involved messages and pictures of someone else.

KINKADE: Thaonkong (ph) is also accused of sharing a picture linked to a

corruption scandal. Now a military court will decide his fate with the trial taking place behind closed doors, no reporters or public allowed.

CHURMARI(through translator): The military court is slow and often hands

down heavy sentences. The opportunity for the defendant to fight or deny the

charges is very difficult. It's more or less hopeless.

KINKADE: King Bhumibol Adulyadej remains a revered figure in Thailand. The world's longest serving monarch recently turned 88 and has

been in poor health in recent months. Insulting him is a serious crime with each offense punishable up

to 15 years in prison.

Since the Thai military seized power in a coup last year, prosecutions for insulting the king have soared. And Thaonkong (ph) now faces as much

as 37 years behind bars if found guilty on all charges.

Lynda Kikade, CNN.

(END VIDEOTAPE)

[08:41:07] LU STOUT: Now, police in Spain have detained a teenager for punching the prime minister during a campaign event. This is what

happened. Now the Prime Minister Mario Rajoy, was surrounded by a crowd when police say the

teenager came up, pretending to want a photograph and then just hit him with his left fist.

Mr. Rajoy was not seriously hurt, but it's not clear why the attacker hit him.

Now Spain has, however, have had high levels of youth unemployment for several years.

Now, another political event and another outburst, this one happened during a meeting of Ukraine's national reform counsel. Now, Odessa's

regional governor, who happens to be the former president of Georgia, accused Ukraine's

interior minister of being involved in corruption. In a fit of anger, the minister

then threw a glass of water in the governor's face. No surprise that meeting came to

a screeching halt.

And that is News Stream. I'm Kristie Lu Stout. But don't go anywhere, World Sport with Alex Thomas is next.

END