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CNN NEWSROOM
Hundreds Of Refugees Arrive In Germany From Hungary; Obama Takes Responsibility For The U.S. Role; Deadly Clashes Erupt Outside Ukrainian Parliament; Asia-Pacific Markets Continue Decline; Obama: "Human Activity Is Changing The Climate"; Impact Of Iran's Return To Oil Market; New Apple TV Announcement Expected Next Week. Aired 3-4a ET
Aired September 1, 2015 - 03:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ROSEMARY CHURCH, CNN ANCHOR: Plus deadly violence on the streets of Ukraine's capital as Russia strengthens its hold on the country's east.
ERROL BARNETT, CNN ANCHOR: And U.S. President Barack Obama heads to Alaska to deliver a speech aimed squarely at climate change deniers.
CHURCH: Hello and welcome to our viewers in the United States and all around the world. I'm Rosemary Church.
BARNETT: And I'm Errol Barnett. This is CNN Newsroom. Our top story this hour, Europe's migrant crisis, hundreds of migrants and refugees have reached their final destination in their journey to Western Europe.
CHURCH: Hours after boarding a train in Hungary, refugees arrived in the German city of Munich and we are told others made it into Austria.
BARNETT: In a sudden change of policy on Monday, authorities let Syrian and Iraqi refugees buy tickets and board trains headed west from Hungary. Our Arwa Damon was there.
(BEGIN VIDEO CLIP)
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: They're very upset. They've been waiting so long to get on this train and it's overpacked and overcrowded. They could not find seats. They're saying there are people who haven't reserved tickets.
So people are still asking if they can travel with just their Syrian I.D. and we are told they should be able to make it and get on these trains. The reason why everyone is in such a panic to just cram on the train and get out of here is there is this fear amongst all that this opportunity they have to actually be able to leave might go away very, very quickly. And no one wants to get stuck here anywhere.
(END VIDEO CLIP)
BARNETT: Our Fred Pleitgen joins us now live from the Munich train station where many of those refugees arrived and, Fred, this is analogous to what is happening in Europe, refugees arriving in so many nations. They must be confused as to what legal process to follow as well.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, you're absolutely right, Errol. I've been speaking to a couple of Muslim Syrians. There are a lot of people here. These are the people who consider themselves lucky to make from the trains that have come from Hungary and gone through Austria.
Many stranded in Austria for a while and now in Germany. In parking lot in front of the railway station is actually full of people. The police are trying to come to terms with things here. There is an ambulance here and they are handing out food and drink and trying to get these folks on to buses to bring them to shelters.
They are confused. Where can they go to register and what happens if they were registered in Hungary. It goes to show that inside Europe the authorities here are just not prepared for an influx of people.
And we have to keep in mind the way the people are coming here to Germany stretches the German and European law somewhat in that most should have applied to asylum when they got to Hungary or Austria. But many came here.
The Germans are saying anyone who comes here will be able to register for asylum, anyone from places like Syria and judging from the folks we are speaking to, most are from Syria. Now you are right. Many of them not exactly leer what their next stages are.
We are seeing a lot of folks wandering around looking for authorities or looking for some place to register. I spoke to a doctor from the town of (inaudible), which is in the hands of ISIS now who was confused and looking for someone to show him where to go.
So it's very difficult for the authorities and for the folks arriving here. But most of the folks we are speaking to are in good spirits that they've made to Germany -- Errol.
BARNETT: And all of that is understandable. As we look at the big pictures. Europeans are challenged with accepting these people despite local economic pressures. I'm wondering where public opinion is on this where you are in Germany.
PLEITGEN: It's a very good question and one of the things that we've seen over the past couple days shift in public opinion. For a long time, the government of Angela Merkel seemed to be reluctant to take a strong stand on the migrant and refugee crisis.
But what you had in the past couple weeks is incidents where there were violent protests in some cities against refugee shelters and asylum shelters that were torched here. And there was a counter reaction, people in football stadiums that held up banners saying refugees welcome here.
[03:05:04] Of course, when I speak to people in Germany and the towns I know here they tell me we are overwhelmed by the amount of people coming here. People are not clear how a country as big as Germany is going to stem this. But for the time being, public opinion is quite positive to these people coming here especially those who are fleeing a civil war and others from violence in places like Syria, Iraq, Eritrea.
But there is a riff in the European Union where you have the French foreign minister criticizing European countries especially those in Eastern Europe for what he believes is not taking in enough people. It is a big problem that the European Union is facing on how to deal with this -- Errol.
BARNETT: And the harsh rhetoric will continue as these migrants and refugees just seek a better life. Fred Pleitgen live for us in Munich where many Syrians are on their first day of their new life and home in Germany. Fred, thanks.
CHURCH: Migrant crisis is so unprecedented. Leaders in the European Union are struggling to find some common ground on how to solve it. Atika Shubert takes a look at the divisions.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): As the walls go up to keep migrants out, so, too, political divisions are mounting across the European Union. Hungary's decision to erect razor wire fencing along its Serbian border condemned by France.
LAURENT FABIUS, FRENCH FOREIGN MINISTER (through translator): Hungary is part of Europe and we do not respect the values by putting up fences that we wouldn't even use for animals.
SHUBERT: The Hungarian government has defended the fortifications saying as a member state it has an obligation to protect what is effectively the European border. Fences doing little to stop migrants from taking ever desperate measures to reach that sanctuary.
JOEL MILLMAN, INTERNATIONAL ORGANIZATION FOR MIGRATION: Our view on the wall building is that this is a roundabout subsidy to the smugglers. If you create a barrier they will charge the people they are transporting more money to get around that barrier.
SHUBERT: To that end, Austria has now introduced new security checks along its borders after 71 dead migrants were discovered late last week.
UNIDENTIFIED MALE: The smugglers use different forms of transportation. We had here a case where a smuggler used a normal van usually transporting seven persons, but there were 12 persons in it, including three little children.
SHUBERT: An unprecedented number of migrants continue to reach E.U. borders. Germany alone expects to receive four times as many asylum seekers this year which has led to violent protests. Angela Merkel has called for tolerance as more migrants are expected to arrive.
ANGELA MERKEL, GERMAN CHANCELLOR (through translator): That will be a central challenge not only for days or months but for a long period of time. And that's why it's important that while we are saying that German efficiency is great what we need now is German flexibility.
SHUBERT: The French prime minister also made a show of tackling the crisis on Monday announcing a new migrant camp and calling for a Europe wide migrant policy. The unified stance that leaders are under increasing pressure to find when they meet for emergency talks on September 14th. Atika Shubert, CNN, Berlin.
(END VIDEOTAPE)
BARNETT: Now to another big story we're following for you. The U.S. president has issued a strong warning on climate change. President Barack Obama was speaking in an international conference in Anchorage, Alaska on Monday. It's the start of a three-day visit to highlight the impact of climate change, which he called the defining threat of the century.
CHURCH: Yes, Mr. Obama was sharply critical of those who still deny human activity is warming the planet. He also took responsibility for the role the U.S. plays in the issue.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: I've come here today as the leader of the world's largest economy and its second largest emitter to say that the United States recognizes our role in creating this problem and we embrace our responsibility to help solve it.
And I believe we can solve it. That's the good news. Even if we cannot reverse the damage that we've already caused we have the means, the scientific imagination and technological innovation to avoid irreparable harm.
(END VIDEO CLIP)
BARNETT: Our meteorologist, Pedram Javaheri, has been tracking really the science of all of this, and President Obama laid out the numbers, the statistics, really, you know, leaving no room for doubt that climate change is happening and getting worse and we all need to act.
[03:10:09] PEDRAM JAVAHERI, AMS METEOROLOGIST: Yes, absolutely. Well said. And that's the case and the point he was trying to make and the reason he went to Alaska, it is ground zero for what is happening in climate change.
And the impacts don't just cause an issue for the state itself but also not just for the United States but on a planetary level as well. I want to show you what happens in the state of Alaska and why this is so important.
This is the distribution of permafrost or frozen soil that has been in place across Alaska and has been in place for tens of thousands of years. In the northern area is continuous permafrost. And some of it is as deep as 2,000 feet.
As you come to the central and southern portion of Alaska it is discontinuous. It melts sometimes in the summer and refreezes in the winter. But want to show you where the fires have been this year.
On the order of 750 active fires at one point across the state of Alaska many in the discontinuous zone. You have exposed land burning alongside with the permafrost which has trapped methane. So we'll break down what is happening in Alaska.
And 80 percent of this landscape is a frozen landscape that remains frozen for tens of thousands of years. But sometimes you burn the active layer where we have the soil start to burn and the trees burn in this region that releases carbon into the atmosphere.
But the fires are burning down into the duff layer and that makes up leaves or needles and all of this that has been decomposing for years and releasing the carbon from them. And the fires have been so expansive they are burning into the mineral soil where the permafrost is situated next to.
Now you are take the insulation away. So the long summer days Alaska is well known for now begin to heat up this dark scorched ground and you are melting the permafrost releasing a greenhouse gas that is 30 times more potent than carbon dioxide.
This is something significant and we know 25 percent of the northern hemisphere is covered by permafrost. So we'll take you back to this region and show you why the importance continues for Alaska. We know the temperatures have been warming for decades.
The past five decades the temperatures have gone up 3.5 degrees in Alaska annually speaking and 6 plus degrees across the winter observation points. In the next 50 this is expected to continue.
The fires have been prevalent and much longer lived fires, 758 this year over 5 million acres of land burned closing in on the record from 2004. This is all just a knock-on effect melting the permafrost, releasing greenhouse gases that will trap additional heat that we get in the coming summers.
BARNETT: They call this a negative feedback loop.
JAVAHERI: It is.
CHURCH: And a reality check for all of us. All right, thanks so much, Pedra. Appreciate it.
The U.S. State Department has released another batch of Hillary Clinton's e-mails, 7,000 in all. It says more than 100 of the e-mails contain information that is now classified.
BARNETT: The e-mails include many mundane notes and requests for updates on Israel and other regions from her time as secretary of state. Clinton has been criticized for using a personal e-mail address and a private server.
CHURCH: There is a big change in the U.S. presidential race. A new poll shows Republican Donald Trump losing his lead in the key state of Iowa.
BARNETT: According to the Monmouth University poll he is now tied with neurosurgeon, Ben Carson, at 23 percent. Trump had been leading the field in the past month in Iowa. That is the first state to vote for the Republican nominee.
CHURCH: Donald Trump has been a lightning rod in the presidential race from his brash comments on political issues to the way he uses social media to strike back at those who oppose him.
BARNETT: CNN's Randy Kaye looks as how he used Twitter as a weapon.
(BEGIN VIDEOTAPE)
RANDI KAYE, CNN CORRESPONDENT (voice-over): Donald Trump unleashed in 140 characters or less. His tweets are often sarcastic, hateful and downright nasty most directed at his opponents. Jeb Bush never uses his last name on advertising, signage, materials, et cetera. Is he ashamed of the name Bush? A pretty sad situation. Go Jeb.
Congrats at Lindsey Graham SC, you just got 4 points in your home state of SC, far better than zero nationally. You are only 26 points behind me.
[03:15:05] And after Democratic candidate, Bernie Sanders, lost control of his microphone to Black Lives Matters protesters, Trump tweeted, "How is Bernie Sanders going to defend our country if he can't defend his own microphone, very sad.
Trump went after the president during the Ebola scare. "I'm starting to think there is something wrong with President Obama's mental health. Why won't he stop the flights? Psycho." In another tweet he asked if the president is stupid or arrogant.
(on camera): Trump has 4 million followers on Twitter. His tweets hardly go unnoticed. His favorite words seem to be "dumb" and "dopey." He used the word "great" a lot too, but mainly about himself and things he likes.
(voice-over): Trump goes after the media too retweeting this about Fox New's Megyn Kelly after she'd returned from vacation, "The bimbo back in town I hope not for long."
And this about Anderson Cooper, "What a waste of time being interviewed by Anderson Cooper when he puts on really stupid talking heads like Tim O'Brien, dumb guy with no clue."
Pundits are a target too. Charles Krauthammer in the line of fire with Trump calling him, "A totally overrated clown who speaks without knowing facts."
And this tweet, "One of the dumber and least respected of the political pundits is Chris Aliza" of "The Washington Post" at the fix. Moron hates my poll numbers."
Celebrities are also fair game. Trump tweeted this last year about singer, Katy Perry. "Katy Perry must have been drunk when she married Russell Brand." Brand boldly fired back, "Are you drunk when you these tweets or does that foam you spray on your bald head make you high?"
Whatever it is that inspires Trump's tweets a "Washington Post" headline summed it up this way, "Your next president, Donald Trump basically tweets like a 12-year-old." Randy Kaye, CNN, New York.
(END VIDEOTAPE)
CHURCH: A short break here. But still to come, a violent reaction to a vote by Ukraine's parliament. Ahead, what the country's president says about the deadly clashes on the streets of Kiev.
BARNETT: Plus European markets are just revving up after another rough day for Asian stocks. We'll check the numbers for you after the break.
(COMMERCIAL BREAK)
[03:21:33]
BARNETT: Welcome back, everyone. Two journalists charged with defaming Thailand's Navy have been acquitted. The two were reporting in 2013 on the alleged involvement of Thai naval forces in human trafficking.
CHURCH: The journalists could have faced up to seven years in prison. Amnesty International says they should never have been put on trial. The Navy has 30 days to appeal today's verdict.
BARNETT: Thai officials have issued warrants for four suspects in connection with the Hindu Shrine bombing two weeks ago. Two were announced after bomb-making materials were found in a Bangkok apartment.
CHURCH: Officials say 26-year-old (inaudible) was contacted -- has contacted authorities with testimony. She signed rental contracts for several rooms. She denies any involvement and says she lives in Turkey.
BARNETT: The bombing killed 20 people and injured more than 100.
Ukraine's president is condemning the deadly violence that fled outside parliament. This came after lawmakers gave initial approval to more autonomy for rebel-held areas.
CHURCH: Petro Poroshenko says decentralization is a difficult but logical step toward peace. Jim Sciutto has more on the clashes and U.S. moves to bolster its forces in the region.
(BEGIN VIDEOTAPE)
JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): Violence on the streets of the Ukrainian capital Kiev now turning deadly. A grenade thrown from the crowd killing one soldier, injuring several others.
These street battles pit Ukrainian nationalists against the parliament who just approved giving greater autonomy to the eastern regions of the country now controlled by Russian troops and pro-Russian separatists. Ukraine's western-backed president scolded protesters for attacking Ukraine over Russia.
PETRO POROSHENKO, UKRAINIAN PRESIDENT: It is sad that some members of the coalition attacked the president and supreme commander-in-chief of their own country instead of trying to counter the external enemy.
SCIUTTO: Russia has strengthened its hold on the east and the war raged on with more than 6,000 killed since April last year. Two cease-fire agreements in tatters.
MARK TONER, U.S. STATE DEPARTMENT DEPUTY SPOKESMAN: We call on all Ukrainians no matter their affiliation or organization to respect law and order.
SCIUTTO: NATO allies worried they could be Russia's next target. The U.S. military is bolstering its forces in the region sending predator drones to Latvia over the weekend and F-22s to Germany late last week, all part of an effort to reassure European allies that the U.S. will deter further aggression by Russian President Vladimir Putin.
UNIDENTIFIED MALE: It seems that is the direction he wants to take and we're going to have to check that.
(END VIDEOTAPE)
SCIUTTO: The deployment of those predator drones to Latvia is a temporary rotation similar to other U.S. military moves in the region. It's part of an effort to balance a show of force against avoiding further antagonizing Russia. The next stop for those F-22 raptors from Germany is Poland another nervous Eastern European and NATO ally. Jim Sciutto, CNN, Washington.
BARNETT: Now we want to check the global economy for you. Stock markets in Europe opened about 24 minutes ago.
[03:25:04] We take a look at the live numbers for you and see there is nothing too dramatic other than all the indices being down. The deepest among them, Frankfort's Xetra DAX down more than 2 percent London FTSE down 1.5 percent and Paris and Zurich are down about 1.7 percent each.
CHURCH: Let's go to the Asian markets, Japan's Nikkei is down nearly 4 percent. The Shanghai Composite closed about half an hour ago losing 1.25 percent. Hong Kong's Hang Seng down the similar amount and in Australia, it lost 2 percent.
So for more on those Asia-Pacific markets and some new economic data out of China, we want to turn to CNN's Manisha Tank. She joins us live from Hong Kong. Hello again, Manisha. So China's PMI numbers were released today. What do they tell us about the state of the country's economy? MANISHA TANK, CNN CORRESPONDENT: Well, Rosemarie, they are confirming what a lot of people thought was happening and that we are seeing a wider shift in the Chinese economy. We saw manufacturing contract in the month of August and the service industry slowing. The rate of growth slowed.
In terms of the numbers, it all sounds technical, but if you have a number above 50, it means that part of the economy is growing. If the number is below 50, which is what it was for manufacturing that part of the economy is contracting.
Why is this important? It's important on many levels. The government needs a new economic policy to shift away for a manufacturing based economy to a service industry based economy, which is very much what China is doing.
But along with that we've seen all of these not just jitters, a lot of panic around about the Chinese markets right now and the impact on other wider markets. Is that a reflection of what is happening in the Chinese economy right now?
Some people are saying there is a disconnect between the two. Not many Chinese investors are invested in statistics, about 1 in 30 people. And those oversea foreigners are 1.5 to 2 percent invested. But the markets represent sentiment.
You are seeing people looking at the valuations and saying maybe we just got -- you know, we pitched it too high and you are seeing a major correction going on. There are two other things happening in the world right now.
We saw the oil price bounce up at the close in the U.S. yesterday by 8.8 percent. And everyone is talking about the U.S. Federal Reserve. We are going to see employment figures on Friday that might give us a clue as to whether the fed is going to hike rates soon.
That's another thing that everyone is talking about in the markets. In the Chinese economy what happens if we see this cooling? We saw 7.4 percent growth last year. Goldman Sachs is expecting 6.8 percent this year.
If China and its economy cools, it means that all of the economies connected to China will be impacted by that. So will those merging markets that were selling commodities to China to help with the boom in infrastructure we saw years ago will suffer along with those who sell oil, all of these factors we have to talk about that do get impacted by the Chinese economy cooling.
It is a huge worry for many, but so far central bank is saying that it will not impact on their decisions on whether to hike rates or not. That is something that the Bank of England chief was asked and he said so far he is not considering the China effect. But that may begin to happen soon -- Rosemary.
CHURCH: All right, a lot to cover there. We'll be watching for those new numbers. Always a pleasure to talk with you. Minisha Tank like in Hong Kong.
BARNETT: Now could Apple possibly bank roll the next "House of Cards?" Next here on CNN NEWSROOM, why some say the tech company is getting behind original programming?
CHURCH: Plus hail to the chief, Kanye West, the rapper says he is running for U.S. president in 2020. That's later in our show. Stick around.
(COMMERCIAL BREAK)
[03:32:39]
BARNETT: For the next 30 minutes you're watching CNN NEWSROOM with us. I'm Errol Barnett.
CHURCH: And I'm Rosemary Church. It is time to check the headlines for you this hour. Hundreds of Syrian and Iraqi refugees have arrived in Austria and Germany after days of waiting at a Hungarian train station. The refugees were allowed to buy tickets and board trains on Monday. Many more migrants are still in Budapest waiting to leave.
BARNETT: Ukrainian President Petro Poroshenko is condemning violent clashes outside parliament. Lawmakers gave initial backing to greater autonomy for rebel-held regions in the east. One police officer was killed and dozens of people were injured during the protest.
CHURCH: The U.S. State Department has released another 7,000 of Hillary Clinton's e-mail. More than 100 of them had information that was later classified. The Democratic presidential candidate has been criticized for using her personal e-mail and server while she was secretary of state.
BARNETT: U.S. President Barack Obama didn't hold when talking about the effect of climate change during an international conference in Alaska.
CHURCH: Mr. Obama called global warming, the defining treat of the century. He called out climate change deniers and said we must act now.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We know that human activity is changing the climate. That is beyond dispute. Everything else is politics if people are defying the facts of climate change. We can have a legitimate debate about how we are going to address this problem. We cannot deny the science.
We also know the devastating consequences if the current trend lines continue. That is not deniable. And we are going to have to do some adaptation and we are going to have to help communities be resilient. Some of the trend lines we are not going to be able to stop on a dime.
We're not going to be able to stop tomorrow. But if those trend lines continue the way they are, there's not going to be a nation on this earth that is not impacted negatively. People will suffer. Economies will suffer.
[03:35:05] Entire nations will find themselves under severe, severe problems, more drought, more floods, rising sea levels, greater migration, more refugees, more scarcity, more conflict. That's one path we can take.
The other path is to embrace the human ingenuity that can do something about it. This is within our power. This is a solvable problem if we start now.
(END VIDEO CLIP)
BARNETT: Stuart Chapin is a professor of ecology at the University of Alaska in Fairbanks and joins us now to talk about all of this. Stuart, thanks for your time.
President Obama delivered an enthusiastic push for action to address climate change, but he also approved offshore drilling exploration for Shell. In your view, how can both be possible considering the environmental risks of drilling?
STUART CHAPIN III, PROFESSOR OF ECOLOGY, UNIVERSITY OF ALASKA, FAIRBANKS: I think it's really essential to move forward aggressively in addressing climate change so I approve. That but at the same time there has to be a transitional mechanism. So I think some continuation of oil production will be necessary, but this -- these -- the oil production should be used to finance transitions to a more renewable energy economy.
BARNETT: And is that the current structure of things in Alaska right now? I mean, oil, that industry is a major employer across the state.
CHAPIN: Currently the oil industry accounts for 90 percent of the revenue for the state of Alaska. So any minor changes in the price of oil are going to have huge effects on social services in Alaska and any aggressive action to reduce production or increase production likewise influences the state of Alaska.
BARNETT: Now the president also noted that developing renewable energy is important. What are the prospects for renewable energy in Alaska because along the North Slope you have oil companies that have created thousands of jobs and goodwill to go with it? Where is the potential to move on to renewable energy there?
CHAPIN: A larger proportion of communities in Alaska use renewable energy than any other place in the world. We already have experience using wind, solar, biomass. So it's clearly possible to do this. It's just a question of modifying the economic incentives to foster this sort of development.
BARNETT: But do we have enough time?
CHAPIN: I do think we have enough time. In a sense it's already too late because there's already a huge amount of carbon dioxide that's been added to the atmosphere, but we have to act aggressively now. And we have to do this in a way that's fiscally responsibility at the same time. So I support the president in his general approach.
BARNETT: Well, it seems that action is absolutely necessary, no matter what action that is. Stuart Chapin, professor of Ecology with the University of Alaska at Fairbanks, thanks so much for your time today.
CHAPIN: Thank you.
CHURCH: Another story we are following, if sanctions against Iran are eased the country is poised to reenter the energy market. Tehran plans to add another a million barrels of oil a day by the end of the year. That announcement is having an effect on markets.
John Defterious has a deeper look at the impact of Iran's return to the oil market.
(BEGIN VIDEOTAPE)
JOHN DEFTERIOUS, CNN CORRESPONDENT (voice-over): One hundred nautical miles east from this UAE loading terminal on the Indian Ocean could be the world's next major energy giant, Iran, the mere prospect of having sanctions lifted on Iran's oil exports triggered a $20 fall in price since June.
Iran's petroleum minister is being ambitious wanting to increase exports 1 million barrels a day within two months after a deal is signed.
UNIDENTIFIED MALE: We think that Iran could add something like another 800,000 barrels a day to the market within six to nine months and it could release oil from storage within a period of one to three months after sanctions are eased and that in an oversupplied market is going to put the prices even lower.
DEFTERIOS: Iran's potential reemergence couldn't come at a worse time. The big three global producers in the world today have not trimmed their sales despite falling prices. OPEC heavyweight Saudi Arabia is producing close to 10 million barrels a day.
[03:40:07] Russia at nearly the same rate focusing on new Asian customers and the U.S. has so much oil, it is nearly out of storage capacity.
DEFTERIOS (on camera): Iran if it could open the door wide open to investment could move up the table of the energy giants around the world. After a few years of very tight sanctions on the oil and banking sectors, the country starved for cash and the technology knowhow of the European and U.S. oil companies.
UNIDENTIFIED MALE: Its sector needs an injection of new technology and capital as well. Obviously the financial situation of Iran has been badly affected by sanctions.
DEFTERIOS (voice-over): But the potential is sizable. It has the fourth largest oil reserves at 157 billion barrels, 18 percent of proven gas reserves and just four years ago was producing 4.3 million barrels a day.
UNIDENTIFIED FEMALE: It could be a huge player. It could be -- in gas, it could be as big as Qatar. In oil, it can be a truly second place in OPEC. If Iran comes on now, and can get the right investment, it can become a very, very strong player in OPEC, indeed.
DEFTERIOS: Medium term with Iran and Iraq more closely aligned politically with combined proven reserves larger than Saudi Arabia. It could challenge the supremacy of the kingdom in oil and change the landscape for exports right here in the Middle East. John Defterios, CNN, Abu Dhabi.
(END VIDEOTAPE)
CHURCH: Let's take a short break right here. But still to come, Apple may be trying to give Netflix, Amazon and Hulu a run for their money. Details on a possible new plan to take over your TV watching. We'll explain.
(COMMERCIAL BREAK)
[03:45:08]
CHURCH: Welcome back, everyone. Yahoo CEO Marissa Mayer is expecting identical twin girls in December. She made the announcement on her Tumblr page. She shared the news with Yahoo's Board of Directors and they're supportive.
BARNETT: Mayer also says she plans to take limited time away from work since her pregnancy has been healthy. She already has a 3-year- old son.
CHURCH: I hope she can at least take some time and enjoy it.
Apple could be getting in on the original programming game to compete with Netflix, Amazon and Hulu.
BARNETT: "Variety" has been reporting that Apple is exploring the option at a moment. Some experts say the device could be more popular with original shows. Apple is reaching out to top entertainment brass for talks, but all of that is in the very early stages.
CHURCH: But could this be a boon for Apple? Joining me from Hong Kong is Bryan Ma. He is the vice president of Client Devices Research at International Data Corporation or IDC. Bryan, thanks for talking with us. What could this mean for Apple and its competitors in the big picture?
BRYAN MA, VICE PRESIDENT OF DEVICES RESEARCH, IDC: It's about bringing a lock into the Apple ecosystem. If they can create original content you can only get this type of show or whatever type of content if you are owning Apple devices and an Apple user.
If you look at where Apple's profits are coming from it is coming from the sales of the devices and hardware although it will be interesting to see what model they roll out and whether they make money off of the content as well.
CHURCH: And what you said is the big question, isn't it? Will Apple create original content or simply distribute other company content. Do we know?
MA: Yes, exactly. That's the big question. It's still such early days right now and just a lot of rumors, to be honest. They already distribute content in some forms today. It's in a download format. Will they provide a subscription or streaming service and will it be other people's content or original content.
That is what will be interesting. I suspect a blend of the both. Eventually if they want to hold power and that command over their users and keep people in that Apple ecosystem it may come down to original content. But it is a lot of speculation right now.
CHURCH: That is key, isn't it? What about the technological challenges for Apple as the company moves in this direction? What do you see as the hurdles here?
MA: I don't know if it's so much technological aside from making sure the bandwidth is OK. The bigger issue is securing the rights assuming we are talking about other people's content and as we have seen in cases like the Verizon and Netflix back and forth going on, are there issues with some of these guys seeing apple as a competitor and not wanting to give all that full bandwidth to users to view that content properly.
CHURCH: And Apple has been very successful in the music arena. Can we assume they will follow with TV content?
MA: That's the thing they have got going for them. The good thing is, they've got a track record of being able to negotiate what people thought was impossible. If you look in the early 2000s when everyone was saying no one can distribute content and not worry about piracy.
Apple was the one that was able to do it and surprised everybody. So assuming they can take those negotiation chops and their credibility to Hollywood studios and distribute that. That could be an interesting play too. But it's a different Apple and a different time now. We'll see if they can do that.
CHURCH: Things moving quickly for a lot of people. Bryan Ma, a pleasure to talk to you. Thanks for joining us.
BARNETT: Can't believe I'm saying this, Kanye 2020? It's not the name of his latest album, but the rapper's plan to run for president of the United States. A look at his possible campaign strategy after this.
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[03:53:27]
BARNETT: Take a look around us here. It is down to the final four. We are getting the first look at the top designs that could replace New Zealand's current national flag.
CHURCH: They were unveiled earlier. Voters will rank their favorites in a referendum starting in November with a final vote next year. That vote will be to either change the flag to one of the four you see here or keep this one, which has been used since 1902. I predict they will hold on to that one.
BARNETT: Which might be a big disappointment, I think the red, white, and blue versions are leading in the polls. But the old flag may stick around.
CHURCH: It's similar to the Australian flag as well, but I think the second one on the left --
BARNETT: That's my vote too.
Perhaps one of the most interesting moments from Sunday's MTV Video Music Awards may have been Kanye West's political announcement.
CHURCH: West said he is going to run for president of the United States in 2020 and that got our Jeanne Moos asking how well would he do debating Donald Trump?
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): As the words rolled off his tongue.
KANYE WEST: I have decided in 2020 --
MOOS: Eyes rolled.
WEST: -- to run for president.
UNIDENTIFIED MALE: Does that mean that Kim Kardashian would be the first lady?
MOOS: No ifs, ands, but plenty of but about it. In no time you could buy the shirt where the speech ponders Kanye West on Mt. Rushmore.
UNIDENTIFIED FEMALE: Gives new meaning to the west wing.
MOOS: The Kardashian clan chimed in on social media with Courtney suggesting a "Keeping up with the Kardashian's" White House edition. Some proposed possible running mates. As for who the rapper could run against, the dream matchup, Kanye crowned with Trump-like hair.
(on camera): Without any further ado, we may present the imaginary Donald versus Kanye debate, the clash of the narcissists.
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Politicians are all talk, no action.
WEST: I'm not no politician, bro.
TRUMP: I will be the greatest jobs president that God ever created. WEST: I am the number one most impactful artist of our generation. I am Shakespeare in the flesh.
TRUMP: I don't care. I'm really rich.
WEST: Listen to the kids, bro.
TRUMP: Sit down, sit down.
WEST: I will die for the art.
TRUMP: No, no, you're finished.
WEST: No (inaudible) bro.
MOOS: There is no question Kanye took the high road.
WEST: Did he smoke something before he came out here? The answer is yes I rolled up something and took the edge off.
TRUMP: It's having damaging effects to the mind, the brain.
WEST: It's not about me but about ideas, bro.
TRUMP: This is about you not about me.
MOOS: Trump may not be able to compete as a rapper, but he knows when to cut the music. Just don't expect Kanye to be addressing my fellow Americans.
WEST: Bro, bro, bro, bro, I don't understand it bro.
MOOS: Jeanne Moos, CNN.
TRUMP: Sit down.
MOOS: New York.
(END VIDEOTAPE)
CHURCH: Let's put them in the same room.
BARNETT: That would be great.
CHURCH: You are watching CNN NEWSROOM. I'm Rosemary Church.
BARNETT: And I'm Errol Barnett, bro, the news continues after the break. See you tomorrow.
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