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CNN NEWSROOM

Frustrations among Britons on Both Sides; Tech Giant Tops $100 Billion Revenue; Trump Reverses Course on Special Olympics Cut; U.K. Parliament To Vote On Part Of May's Brexit Deal; Trump Rallies His Base: Collusion Delusion Is Over; Trump Budget Would Have Cut Special Olympics Funding; Memorial Service for New Zealand Mosque Victims; Searching For Hope In Gaza. Aired 1-2a ET

Aired March 29, 2019 - 01:00   ET

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


(COMMERCIAL BREAK)

[01:00:00] JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Hello everybody! Great to have you with us. I'm John Vause, you're watching CNN NEWSROOM. Ahead this hour, call it meaningful food 2.5. Theresa May splits her deeply unpopular Brexit deal in two hoping the least bad part of the least worst option can win a majority vote in parliament.

Plus it took him a few days but Donald Trump has taken his misleading claims of complete vindication on the road in his first rally since the end of the Russia investigation mocking his opponent, says, major losers and full of ridiculous B.S. And the Trump administration attempting a twisting double backflip reversal in its decision to slash funding for the Special Olympics.

The way Brextiteers saw it, March 29, 2019, would be their Independence Day. The day Britain would finally be free to be Great Britain again. When the oppressive boot of Brussels would be lifted marking the start of a new era of prosperity and global influence. Instead, March 29, 2019 is another Friday with the U.K. Parliament gridlocked.

Prime Minister Theresa May making a last-ditch attempt for her unpopular Brexit deal to get through the house. Here's CNN's Bianca Nobilo reporting from London which is still part of the European Union.

(BEGIN VIDEOTAPE)

BIANCA NOBILO, CNN CORRESPONDENT: The Prime Minister will bring her Brexit deal back for a third time on Friday. Well, at least part of it. Theresa May has separated her Brexit deal which will be putting forward to the House of Commons into two parts. The withdrawal agreement which is the legally binding 585-page document which deals with the sums of money that Britain will be paying and all the elements of the divorce from the political declaration which deals with the future relationship.

The government will be hoping that the withdrawal agreement alone is less controversial. That's because it doesn't deal with how close or distant the UK's relationship with the E.U. will be in future. It's enough for the speaker John Bercow at least who had intervened in the debate saying that the Prime Minister couldn't bring her deal back for a third time unless he saw substantial changes.

But what are the chances of the Prime Minister's deal passing? Some within her government thought they looked a little better after the chaos of last night's votes in the House of Commons.

(BEGIN VIDEO CLIP)

JOHN BERCOW, SPEAKER OF THE HOUSE OF COMMONS: Order. Order. In respect of Mr. Baron's motion fee, brackets No Deal, the aye's were 160 the no's were 400, so the no's have it. So the no's have it. So the no's have it. So the no's have it. So the no's have it. So the no's have it. So the nose habits. Order. Order. Order. Order.

(END VIDEO CLIP)

NOBILO: So optimist thought that maybe because Parliament hasn't been able to coalesce around anything and there was no majority for any of the Brexit options on offer that suddenly Theresa May's deal might be more appealing because it is the only negotiator deal with the E.U. which has been agreed to on both sides.

But the Labour Party has said that they will not be supporting the Prime Minister's deal as have the Democratic Unionist Party which prop up Theresa May's government. Whatever happens on Friday, it is sure to be dramatic and a fitting end to one of the most turbulent weeks in recent British political history. Bianca Nobilo, CNN, London.

(END VIDEOTAPE)

VAUSE: CNN's European Affairs Commentator joins us now with more on this. So, Dominic, we hear from the key minority party, the DUP they're standing firm. They're tweeting we will be voting against through withdrawal agreement because our concerns remain. We will continue to do what we can -- get the best deal for Northern Ireland. There's no support either from the main opposition party Labour, opposed to Mays offer to hold this watered-down vote if you like just on the withdrawal agreement separate from the political declaration it comes with.

And Peter Wishart from the Scottish Nationalist Party put it this way.

PETE WISHART, MEMBER OF PARLIAMENT, UNITED KINGDOM: There seems Mr. Speaker that even offered myself as a sacrifice to the Brexiteers yet this week was not good enough for them. And will send the Scottish Parliament to be so elegantly from the First Minister. This is a Prime Minister that threw herself on the sword and missed.

(END VIDEO CLIP)

VAUSE: Or perhaps trees away threw herself into a volcano as the sacrifice to the Brexit gods but the volcanoes spatter out. DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Unbelievable John.

I mean, the very fact that a Prime Minister is finally going to get to put her deal to Parliament and if she actually succeeds in getting the votes, she will have to step down right. I mean, we just have to sort of you know, absorb this and really kind of understand just how ridiculous this whole process gas gotten us thus far.

So absolutely -- so, of course, we will find out tomorrow. But in terms of the strategy which was to eventually find a way to try and enlist more people, she has no majority so the DUP won't go along with it, and those people she was hoping to reach out to in the Labour Party have actually been terrified, scared away by the prospect of her stepping down should the deal go through and therefore paving away for an internal conservative party nomination of a future candidate which can very will be a Brexiteer.

And so they will be voting against a deal and I think even some of the ones that were thinking of going to vote for her will hold back on their -- on their particular vote. So it looks as if the strategy has dramatically backfired.

VAUSE: We say that a lot. There is a reporter in the Economists who comes with this headline. Theresa May has united Britain. Everyone hates her Brexit deal. You know, which sort of explains why the vote on Friday is as much as the third vote on her plan but more like a vote 2.5 you know, so there's half of it because basically what we're seeing now is trying to win more time when there is not a lot of time to be had.

THOMAS: Yes. I mean, time yet again you know, running out just as it was in the whole process leading up to March 29th. So yes, she finds herself now literally you know under the gun because in the extension negotiated with the European Union she must bring this withdrawal agreement by this Friday to the Houses of Parliament for what we're going to call a meaningful vote.

But ultimately one part of it is missing and the political declaration. This is legally at the very best sketchy although the political declaration is of course mentioned in the -- in the withdrawal agreement. So yes, it is inconclusive, and the big question will remain as to what we are going to do with that section part which is the complicated part that needs to be ratified by parliament.

And so we shall see. It will be yet again a whole set of unexpected outcomes undoubtedly by the end of tomorrow.

VAUSE: Yes. They are just winging it at the stage it seems. So we have the vote on Friday, then by Monday possibly another round of indicative votes which brought this tweet. The E.U. Commission takes role of the indicative votes in the House of Commons last night. This is part of an ongoing political protest in the U.K. which we fully respect. We counted eight noes last night. Now we need a yes on the way forward. Just one, yes.

Realistically the way forward you know, beyond Friday and Monday, it seems to be a binary choice right now. A no deal exit in two weeks or really, really, really long delay, possibly years delay.

THOMAS: Right. I mean, this is it. I mean, if anything, we will hope to get some kind of closure on at least this stage of it. Of course, if a deal goes through, we rundown the clock to the 22nd of May. There will be a leadership change. Theresa May will be there until they select a new candidate.

It is unlikely that it is actually going to happen. So as you just mentioned, we are looking essentially at a no deal and remain you know, convinced that parliament will not support that, and that they will find a way around that. And that leaves us really short of having a general election of going down the road for an extension. And I think everyone knows that the more that comes around the least likely it is that we actually ever end up with any kind of Brexit.

VAUSE: Dominic, we're out of time. But it kind of brings us back to the wisdom of a young Neil Sedaka all the way back to 1966. Listen to this.

(BEGIN VIDEO CLIP)

Think of all that we've been through and breaking up is hard to do. They say that breaking up is hard to do. Now I know, I know that it's true. Don't say that this is the end. Instead of breaking up I wish that we were making up again.

(END VIDEO CLIP)

VAUSE: I guess they can all makeup and it could all be over before we know it, but I don't think so. Dominic, thank you for playing along.

THOMAS: Thanks for that cheerful song.

VAUSE: That's some laughs. Donald Trump back in his element rallying his base in Michigan with more misleading claims about Special Counsel Robert Mueller's report. The President took shots at Democrats, the media, immigrants seeking asylum, even the dead were not spared with the deed of the late Senator John McCain. He praised the Mueller investigation for founding no collusion with Russia. But once again, he falsely claimed the investigation exonerated him of obstruction of justice.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And after three years of lies and spears and slander, the Russia hoax his finely dead. The collusion disillusion is over. Total exoneration, complete vindication.

(END VIDEO CLIP)

[01:10:08] VAUSE: Jessica Levinson now, Professor of Law at Loyola Law School and she is with us from Los Angeles. He's back. You know, he's back and there was one line from President Trump at that rally which really seemed to stand out. Here it is. Listen to this.

(BEGIN VIDEO CLIP)

TRUMP: And this group of major losers did not just ruthlessly attack me, my family, and everyone who questioned their lies. They tried to divide our country to poison the national debate and to tear up the fabric of our great democracy.

(END VIDEO CLIP)

VAUSE: So who is he talking about? It sounds like that's exactly what you know, Donald Trump and his supporters are doing in the last two years.

JESSICA LEVINSON, PROFESSOR, LOYOLA LAW SCHOOL: Yes. I was going to say the Department of irony is absolutely dead at this point. I mean it is so interesting to see the changing narrative when it comes to Mueller investigation. Because as we know for the last two years Mueller has been crooked, he's been biased, he's been on a witch hunt. And now that Mueller has not of course exonerated the president but instead apparently found that at least for conspiracy there's none evidence to charge him, now Mueller's outstanding, now we should all trust the Mueller report and it's very interesting to see how quickly we have changed this story.

VAUSE: Yes, very quickly indeed. The President also had some advice for Democrats. This is what he said.

(BEGIN VIDEO CLIP)

TRUMP: The Democrats have to now decide whether they will continue defrauding the public with ridiculous (BLEEP) partisan investigations or whether they will apologize to the American people and join us.

(END VIDEO CLIP)

VAUSE: OK. You know, he's right in a sense that there is a choice here for the Democrats you know, continue on with the Russia stuff or you know, go in another direction. They did not sweep the House back in 2018 in the midterms by talking about Russia or collusion. They won the House by talking about health care.

LEVINSON: Well, that's right. So I think even before the Mueller report didn't come out, before the Barr report came out, frankly, Democrats were risking a sort of investigation fatigue. And now I think that Bob -- excuse me, that Attorney General Bill Barr has essentially been able to dominate the narrative and say that the president has been exonerated/not exonerated, but that nothing has come of the investigation.

The fact that I think for the American public the headline is Trump wins, nothing comes out of the Mueller investigation, it really is additional evidence for the Democrats to say we need to talk to the voters about how we're going to make their daily life better.

So I think that people care about the Mueller investigation but people go home and they want to make sure they have health care, that they can educate their kids, that they want to know what their taxes are going to be. And these are all the things that the Democrats have to continue to focus on for 2020.

VAUSE: Yes. But it's you know, as you say as important you know, to stress that the President is basing these misleading claims of total exoneration on the Attorney General's four-page summary of the Mueller report which is actually more than 300 pages long according to Justice Department official and a second source with knowledge of the matter.

So knowing it's more than 300 pages long, it doesn't say anything about what's in the report but it does raise some questions as to why the Attorney General would quote a total of 42 words from the Mueller report out of more than 300 pages.

LEVINSON: Yes. At lightning speed, I have never been able to summarize 300 pages that quickly before. So I would say that there's a couple of things to me that are troublesome let's say about the Barr report, and the first is the shortness.

The fact that there is not only you said few words that are quoted but there aren't any complete sentences that are quoted. The other thing that I think is let's say -- let's charitably say strange is the fact that Robert Mueller didn't come to a conclusion on obstruction of justice, and then the Attorney General says so it was for me to decide.

It could just as easily be for Congress to decide. It could be a political decision that Robert Mueller intended, but instead what the Attorney General did is he used all these very interesting legal arguments to narrow, narrow, narrow the definition of obstruction of justice to the point where he was able to say there's not enough evidence here. And so I think I think --

VAUSE: Go on.

LEVINSON: No, I think that when we're looking at the four-page letter and then we're asking ourselves well what is behind it, I mean there -- I believe there is a reason that we haven't seen the full report and that Mitch McConnell, the leader of the U.S. Senate has twice voted to block the release of that report. I'm not at all convinced we're ever going to see the full Mueller report.

[01:15:05] VAUSE: Yes, I'm with you. I think it's very, very unlikely. And one of those incomplete sentences in the Barr summary is a line which the president and his supporters have seized on.

"The investigation did not establish that members of the Trump campaign conspired or coordinated with the Russian government in its election interference activities." The bracketed capital T on the word "The" means that's not the beginning of the sentence. But it's the end part of a sentence. We don't know the bit before it. So, at this point, Donald Trump seems to be hanging his future on a fragmented sentence.

LEVINSON: Well, yes. But that's the fragment and sentence that frankly we're all going to read and remember for a long time. And so, I think that the Attorney General Bill Barr has been very smart about. Again, he's the one who's just dominating all the coverage because he's the only one who's put out any information. Now, as you said, even that sentence, to hinge your whole political hopes on that sentence, it's not that great. What it just says is there may not be enough evidence or we conclude there's not enough evidence to prove beyond a reasonable doubt that there's conspiracy.

It doesn't mean there is no evidence, it means we just don't know either way. And I mean this is one of the great mysteries in life. It used to be whose deep throat and I feel like now, it is what comes before that.

VAUSE: The bracketed T.

LEVINSON: Before that segment, before that not capital T, exactly.

VAUSE: Yes, (INAUDIBLE) up with the President's budget. And it is his -- it is his budget. It's written there right on the front page. It says, President's Budget. For the past three days, the education secretary nested was has been defending a total cut at all funding to the Special Olympics, Betsy DeVos. You know, the money which actually funds the school education program. Here she is.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you concerned about the supporters of the Special Olympics that are upset with the decision to remove their funding?

(END VIDEO CLIP)

VAUSE: Well, Ms. DeVos defending (INAUDIBLE) say anything at all. On Thursday, the president through her under a school bus.

(BEGIN VIDEO CLIP)

TRUMP: I just told my people, I want to fund the Special Olympics. And I just authorized a funding of the Special Olympics. I have overwritten my people, we're funding the Special Olympics.

(END VIDEO CLIP)

VAUSE: OK. So, this is where it gets interesting. The accountability group OpenTheBooks.com found in September 2018. The last month of the fiscal year. The U.S. government spent more than $4 million on lobster tail and crab, almost $8 million on iPhones and iPads, and close to $10 million on gym equipment in one month.

Congress was never going to approve the President's budget. For budgets at declarations of values. And for this administration, lobster and crab and iPhones and all the rest of it are more valued than the Special Olympics. Why would they do that?

LEVINSON: Well, I mean, look, this is terrible optics. I would say, this administration is not alone in spending money on food and electronics. But what this administration I think does stand alone in is it's really rather draconian cuts to those people who are often most in need.

And we've seen a number of times the president kind of go full force on proposals where I think the people he's really speaking to and this comes after our first question, it's the people who come to his rallies, it's his base. It's not the swing voters. And I think for that group, he's saying, you know, we're going to have

a budget that focuses on national defense, that focuses on immigration control. And what I think he's lost is that the Special Olympics is popular in a bipartisan fashion. And this is really not the hill you want to die on, its cutting funding for -- you know, a very worthy cause.

And I mean, think of all of the things that we've done, all the decisions we've made that have really hurt those most in need, this is something that American public really understands easily. Funding for the Special Olympics.

VAUSE: Yes.

LEVINSON: People understand five trips to Mar-a-Lago would have paid for it. And I think that's why he had to backtrack.

VAUSE: Yes. Jessica, thank you. Good to see you.

LEVINSON: Thank you.

VAUSE: With simmering tensions with Israel, Hamas is planning a million man march this weekend in Gaza. When we come back, we'll head to the coastal strip and find out how a new generation is searching for hope in a place where there has been precious little for years.

And we've also ahead to New Zealand where two weeks have since pass since a mass shooting at two mosques. And the prime minister had a message for her country and the world.

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[01:22:08] VAUSE: Just steps from the mosques where dozens of people were shot and killed two weeks ago, New Zealanders paused to take stock of this tragedy and to remember those victims.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: (INAUDIBLE)

(END VIDEO CLIP)

VAUSE: Prime Minister Jacinda Ardern, said the mass killings may have shaken New Zealander so, but the country will never surrender to hate.

(BEGIN VIDEO CLIP)

JACINDA ARDERN, PRIME MINISTER OF NEW ZEALAND: Racism exists, but it is not welcome here. An assault on the freedom of any one of us who practices their faith or religion is not welcome here. Violence and extremism in all its forms is not welcome here. The. (END VIDEO CLIP)

VAUSE: The Australian Prime Minister Scott Morrison, attended this service. He laid flowers for the victims. Now, the gunman, an Australian is expected to face more charges.

Israel says, if necessary, it's ready for a broad military campaign in Gaza. Two days of cross-border fighting has put the spotlight on security policies, two weeks before an Israeli election.

Prime Minister Benjamin Netanyahu who is also defense minister traveled to the Israel Gaza border on Thursday and toured an infantry and armored unit.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, PRIME MINISTER, ISRAEL (through translator): We are tightening the security ring around the Gaza Strip. I recently ordered that units be reinforced, that tools be added in preparation for an extensive campaign.

All Israelis should know that if a comprehensive campaign is required, we will enter it strong and safe, and after we have exhausted all of the other possibilities.

(END VIDEO CLIP)

VAUSE: Like almost everything else in Gaza, hope is in short supply, especially for young Palestinians. But the high-tech workspace in Gaza City holds the glimmer of a promise of a better future. Here's CNN's Michael Holmes.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: In downtown Gaza City, a refuge from the grinding poverty and more than 50 percent unemployment. Gaza Sky Geeks, a high tech hub to give hope and opportunity in a place with little of either.

WAFA ULLIYAN, PROGRAM DIRECTOR, GAZA SKY GEEKS: I think, I mean, if Gaza Sky Geeks is not here, I think, the majority of those doors would be either like you know this third losing called, engaged in violence, or simply there -- they are like the lost generation.

HOLMES: It's run by the NGO Mercy Corps and supported by local and international companies fostering young talent.

UNIDENTIFIED FEMALE: For example, let's imagine that I purchased some food.

HOLMES: Talent like 23-year-old is (INAUDIBLE).

Yes, All right, log in now. Yes.

UNIDENTIFIED FEMALE: OK, just let me show -- just -- HOLMES: (INAUDIBLE) is -- has actually developed an app that helps

people track their expenses day to day. And its people in the UAE are using it?

UNIDENTIFIED FEMALE: Yes.

[01:25:06] HOLMES: And the United Arab Emirates are using her app to track their expenses and manage their budget. Developer here.

That island of normality and opportunity a short distance but at the same time a million miles from the Gaza border fence where every week for a year now, Palestinians have taken part in demonstrations which are both a demand to return to family homes lost in the war that accompanied Israel's founding. And also a call for an end to the Israeli economic blockade of the Gaza Strip.

Nearly 200 have died during these protests according to Palestinian medical authorities, and 6,000 wounded. Many with life-changing injuries. One of them is Rafeeq Al Saadi, shot in the leg protesting last April. He wants to be there Saturday but his wounds prevent him.

RAFEEQ AL SAADI, WOUNDED PROTESTER, GAZA BORDER (through translator): If there was any way I could participate, I would. But I can't now, it's almost been a year and have had three operations.

HOLMES: On the other side of the fence, the Israeli military is prepared for the anniversary protests, infantry brigades and an artillery unit dispatched to bolster forces already in the area.

The Great March of Return began as a people's protest but Hamas was quick to adopt it. Gaza's disaffected and disillusioned youth with what else to do ripe for recruitment to take part.

And it's a longest fence with Israel that protesters will gather on the Saturday as they have every week for a year now. Hamas is calling for a Million Man March. Now, they won't get that many people. But all indications are plenty will turn out. Whether it remains peaceful or turns violent, yet again, no one knows. Michael Holmes, CNN, Gaza.

(END VIDEOTAPE)

VAUSE: Next up on CNN NEWSROOM. First for the tech giant Huawei, revenue topping a $100 billion and that's despite a campaign by the U.S. government on its allies to try and stop it from using Huawei products.

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VAUSE: Welcome back, everybody. You're watching CNN NEWSROOM. I'm John Vause, with the headlines this hour. In a few hours, British lawmakers are set to vote on the withdrawal section, Theresa May's Brexit deal. That comes after Parliament rejected eight alternatives earlier this week. The E.U. said the deal needs to be passed by Friday to get Brexit extended until May 22nd.

[01:29:50] JOHN VAUSE, CNN ANCHOR: Donald Trump rallies supporters for the first time since Special Counsel Robert Mueller's report. And the four-page summary submitted by the Attorney General cleared him of colluding with Russia during the 2016 campaign.

He tells supporters in Michigan Democrats should apologize for defrauding the American people with what he called ridiculous investigations.

The New Zealand Prime Minister says her country would never surrender to hate. A service of remembrance is held two weeks after the mass killings at two mosques in a park just steps from one of the mosques that was attacked. More charges are expected to be laid against the suspected gunman.

Back to Brexit now. Some Remainers still clinging to hope that somehow someway there might just be a second referendum. The city of Bath has historic ties to Europe dating back to ancient Rome. They voted overwhelmingly to stay in the E.U. and now some are plotting the revenge of the Remainers.

CNN's Nina Dos Santos is in Bath.

(BEGIN VIDEOTAPE)

NINA DOS SANTOS, CNN CORRESPONDENT: Bath -- a bastion of Romaine (ph) renowned for its beautiful buildings and thermal spas. This is a place where European tourists still embrace Britain and locals are loath to leave the E.U. Yet it is swimming against a national tide.

UNIDENTIFIED FEMALE: I think it is really sad to lose the freedom of movement in Europe. That's my big thing.

UNIDENTIFIED FEMALE: I think it's -- I think it's tragic personally because I think we are meant, you know, united these days I think better than divided.

DOS SANTOS: Bath has long had a European legacy. The city was in fact made famous by the ancient Romans who built their famous thermal baths here in 60 AD and its current member of parliament was born in Germany.

Almost 58 percent of its residents said that they wanted stay inside the E.U. when the referendum happened and now maybe three years on many want a second chance to rewrite that recent chapter in history.

UNIDENTIFIED FEMALE: Here front page and my story on page three.

DOS SANTOS: The Rum Pub (ph) a local campaign group is plotting the revenge of the Remainers. They marched from the West Country to Westminster last weekend and have signed a nationwide petition to revoke Article 50.

UNIDENTIFIED FEMALE: Like (INAUDIBLE) and that gets us to -- so it's basically free publicity effectively.

DOS SANTOS: How many people would prefer a second referendum?

Among their prime targets, the MP next door -- the biggest leave voice Jacob Rees-Mogg.

This is proper guerrilla tactics. You've even printed our own money --

UNIDENTIFIED FEMALE: We did have our own money. We have a 50 note, we have Jacob Rees-Mogg our minister for the 18th century because Brexit is a backward step.

EMMA KNAPPS, BATH FOR EUROPE: FEMALE: But if the people voted to leave it is very hard for the politicians to then say no actually we must stop this. I think it's got to go back to the people and say now we know more about it. It this what you want or is it not?

ALISON BORNE, BATH FOR EUROPE: Really it is time to reconsider that vote and make sure that it is something that the people really want.

DOS SANTOS: For these citizens of Bath, Brexit is a nightmare, one they're hoping Britain will soon wake up from before it is too late.

Nina Dos Santos, CNN -- Bath.

(END VIDEOTAPE)

VAUSE: Huawei has topped $100 billion dollars in revenue for the first time despite being under scrutiny by the U.S. government which says the Chinese tech giant is a security risk. Still 2018 saw above profits of 25 percent. Sales were up almost 20 percent.

Sherisse Pham is in China. She joins us from now Shenzhen (ph). All this on a haul looking very positive, especially in light of the effort by the United States and its allies.

VAUSE: I'm sorry.

SHERISSE PHAM, CNN CORRESPONDENT: -- Huawei reporting huge numbers from Shenzhen today saying that it pulled in $8.7 billion dollars in net profit up 25 percent compared to last year. Revenue more than 100 billion dollars also up by double digits.

But here is the interesting number, John. And that is the carrier business -- let's pull up those sales revenue, in the company's carrier business, down 1.3 percent. That is the part of the business that makes telecommunication products and 5G equipment for carriers around the world. And that is the business that is under from a U.S.- led campaign against Huawei.

This is sort of a sign, the first sign that this U.S. campaign is starting to hit Huawei's bottom line.

Now, they were asked repeatedly about this U.S.-led campaign and about the security concerns that are growing, certainly by that U.K. report that came out yesterday. And they said look we have a strong track record in cyber security. Our products don't pose a national security risk.

But here's what I also thought was interesting -- John. Guo Ping specifically brought up the company supply chain and there has been some concern that the supply chain could be hit by a U.S. export ban and that would bring the company to its knees.

I asked Guo Ping about that, if they could survive it. Have a listen to what he had to say.

(BEGIN VIDEO CLIP)

[01:35:01] GUO PING, ROTATING CHAIRMAN, HUAWEI (through translator): I believe Huawei will ensure global supply continuity. All of our partners including suppliers from the U.S., they will also benefit from Huawei's procurement and their collaboration with us.

(END VIDEO CLIP)

PHAM: -- hear John's questions. So I just had to rift (ph).

Now he was saying look, Guo Ping saying very pointedly there if the U.S. bans exports, bans U.S. companies from supplying equipment to Huawei it is U.S. companies that will hurt. And it will absolutely, I can guarantee you John, escalate the trade tensions between the U.S. and China.

VAUSE: Sherisse -- thank you.

And just to explain to our viewers, there is an incredibly, incredibly very, very long delay between Atlanta and Shenzhen which is why there's been this little bit confusion but you've done great work.

Thank you for the update. Thank you for sticking with us we appreciate it.

Ok. Ride-sharing app Lyft is expected to make its highly anticipated Nasdaq debut in just a few hours. The company priced its initial public offering is at $72 dollars a share, higher than its originally proposed price range. This suggests a strong investor demand for the company. Lyft kicks off a big year for other tech listings -- Uber, (INAUDIBLE), Pinterest -- all expected to follow Lyft's lead to go public in 2019.

We'll take a short break. When we come back a day after the U.S. President told Russia to get its forces out of Venezuela, we hear from the Kremlin and it isn't happening.

(COMMERCIAL BREAK)

VAUSE: The Venezuelan government has banned national assembly leader Juan Guaido from political office for 15 years. This is the latest attempt by the Maduro government to silence the leading opposition figure who is recognized by at least 50 countries as Venezuela's head of state.

The sitting president Nicolas Maduro maybe feeling a little more emboldened, a little more confident now that Russian military personnel are on the ground in Caracas, a big show of support from Vladimir Putin. CNN's Fred Pleitgen reports now from Moscow.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: While President Trump is telling Russia to stay away from Venezuela --

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Russia has to get out.

PLEITGEN: -- Moscow is saying not so fast.

MARIA ZAKHAROVA, RUSSIAN FOREIGN MINISTRY SPOKESWOMAN (through translator): What do you mean get out? The embassy must leave? Tourists must go home? Energy companies must end their contracts? What does that even mean?

Telling Russia to get out of Venezuela is over the top. This is absolutely arrogant and rude behavior.

PLEITGEN: Russia vowing their troops will stay in Venezuela as long as necessary no matter what President Trump demands.

[01:40:04] DMITRY PESKOV, KREMLIN SPOKESMAN (through translator): Regarding the U.S.A., they are present in many corners of the world. Nobody tells them where they can be and where they can't be. So of course, we hope for mutual respect.

PLEITGEN: These images of a Russian military transport jet at Caracas airport escalated the tensions between Moscow and Washington with Vladimir Putin openly supporting embattled president Nicolas Maduro while the U.S. and its allies have recognized Venezuelan national assembly president Juan Guaido as Venezuela's interim leader.

America accusing Russia of meddling in its backyard. Secretary of state Mike Pompeo saying "the U.S. will not stand idly by as Russia exacerbates tensions in Venezuela."

Despite President Trump's efforts to improve ties with Vladimir Putin, Russian and the U.S. have been clashing over Venezuela. Moscow sending nuclear capable supersonic bombers to the country last year and now Russian politicians laughing off President Trump's tough talk.

A top Russian senator commenting quote, "Trump is brazenly interfering in the bilateral relations of two sovereign countries -- Russia and Venezuela. He's trying to dictate to Russia what we can and cannot do in a country that's our partner."

And Russia continues to say it will not drop Nicolas Maduro, instead promising continued economic and military aid to the embattled Venezuelan leader.

Fred Pleitgen, CNN -- Moscow.

(END VIDEOTAPE)

VAUSE: For the U.S. president who's rarely criticized Vladimir Putin and has supported Russia on matters both big and small the gruff, brief, almost angry words from Donald Trump on Wednesday demanding Russian forces leave Venezuela were jarring.

(BEGIN VIDEO CLIP)

TRUMP: Russia has to get out.

All right. What's your next question?

UNIDENTIFIED MALE: How are you going to get them out Mr. President?

TRUMP: We'll see. We'll see. We'll see. All options are open. All -- just so you understand all options are open.

(END VIDEO CLIP)

VAUSE: A day later, came the Kremlin response.

(BEGIN VIDEO CLIP)

PESKOV: As for the United States, they're present in many parts of the world and no one tells them where to be and where not to be. That is why we would like to count on mutual respect.

(END VIDEO CLIP)

VAUSE: In other words forget it.

Did the U.S. president draw a red line on Venezuela? And did Moscow just happily cross it.

CNN national security analyst Samantha Vinograd joins us now from New York. During the Obama administration Samantha served on the National Security Council. Samantha -- good to see you.

SAMANTHA VINOGRAD, CNN NATIONAL SECURITY ANALYST: You, too.

VAUSE: Ok. Is this the moment when Donald Trump actually finally stands up to Vladimir Putin? The presence of Russian troops seems to be a big vote of confidence in Maduro by Putin and a big setback for Juan Guaido?

VINOGRAD: Well, I do want to add that President Trump seemingly has harsher words for Russians interference in Venezuela than he does for Russian interference in the U.S. elections which is quite striking for those of us here in the United States.

But I don't think that anyone in Moscow, in Caracas or anywhere else around the world takes President Trump seriously at this point. He's saying that Russia needs to get out of Venezuela. He said similar things about Russia in Syria for example. And guess what, we are now the ones that are leaving Syria and Russia is opening the door and watching us as we depart and cheering.

So at this point, it is more likely that the United States retrenches from any commitment in Venezuela than it is that we something to try to force Russian forces to leave Venezuela and to abandon their support for Maduro.

VAUSE: Yes. Because Putin isn't holding back that support for Maduro. The "Washington Post" reports "Over the past few years, Russia has provided wheat, arms, credit and cash to the flailing government in Caracas. Estimates of Russia's total investment in Venezuela vary from $20 billion to $25 billion. Russia now controls almost half of the country's U.S. based oil subsidiary Citgo which has been a major source of government revenue. The Venezuela military uses Russian equipment almost exclusively."

So, you know, so much for the Munroe doctrine. What are the long-term consequences here if those Russian troops are still there, you know, a year from now?

VINOGRAD: Well, I do want to add that Russia is (INAUDIBLE) their support to Venezuela while dealing with their own economic headwinds and sluggish growth, the result of energy markets and their own economic mismanagement.

But the issue here is that U.S. sanctions are designed to put economic pressure on Maduro and to really change the set of choices that the security forces are making, whether to stay with him because he pays them and gives them handouts, or to change course and to go with Guaido and the opposition.

If Russia keeps back stopping, the Maduro regime financially, if they keep paying for example for repairs to the electrical grid, if they keep paying for things that Maduro needs to keep his coterie of advisers and security forces happy that really diminishes the effect of U.S. sanctions.

And so what I think it means is that these sanctions if they're going to work are going to take a lot longer than if Russia wasn't playing this game.

[01:45:01] And the fact that their forces are on the ground in Venezuela really means that the chances that anybody launches a military incursion into Venezuela are much lower. I don't think the United States had any grounds to launch military attack in Venezuela, we had no legal basis to do so.

But now the notion that we would be confronting Russian forces, I would imagine would change the calculus of any secretary of defense.

VAUSE: Yes. Everything is not on the table, in other words now that the Russian are there.

You know, earlier this week we saw Donald Trump meeting with Guaido's wife at the White House. It was going to be a sign of U.S. support, you know, to the opposition for the self-declared president. Could it also be a sign that the United States doesn't have a lot of cards left to play?

VINOGRAD: I think it is. Presidents don't typically meet with the wives of opposition leaders. This is somewhat unusual in that respect. And the other issue is that President Trump has really used his time, and I'll be diplomatic here, very differently than previous presidents.

When I worked for President Obama, we went through a series of analyst steps to determine who the president should meet with because his time is so valuable.

President Trump has really met with anyone at any time -- from Kim Jong-Un to Vladimir Putin to the entire cast of "Fox & Friends" by TV every morning and really indicated that he values his own time and in presidential meetings differently than his predecessors because of that. He's trying to give a vote of support to Juan Guaido by meeting with his wife but candidly I think it fell a bit flat.

VAUSE: Ok. You know, at this point, Guaido needs to do something. He's still trying to regain the momentum he had just a few weeks ago. You know, could the second nationwide power outage play to his advantage here?

Look at this. This is the moment, we're about to see, when the lights went out. It's really striking. Isn't this failing power grid a symbol of everything that is wrong with the Maduro regime?

VINOGRAD: It certainly is but the Maduro regime has failed to uphold the social contract it has with the Venezuelan people for years now. These latest blackouts are just the latest indication of that.

And as we know from open source reporting, Maduro is saying that he is going to have rolling blackouts. He is going to start fixing the grid. He's going to keep coming up with these fantastical explanations for what happened.

And we have to assume that Russia is going to give him money to try to repair the grid so that he can ration out power. And Maduro is going to keep spewing propaganda about what actually happened to the power grid without admitting that the power grid is down because of years of under investment and economic mismanagement.

So unless there is a way to change the narrative and to make the actual truth resonate with the people that matter in this case, which are security and military forces in Venezuela, I don't know how much these rolling blackouts are going to impact his power base.

VAUSE: Yes. And it does always seem like that moment has kind of passed for Guaido. So that's why he needs to do something to recapture that if he can.

Ok. Sam -- good to see you. Thanks so much.

VINOGRAD: Thank you.

VAUSE: If budgets are declarations of values then after three days of criticism the Trump administration once again sees value in the Special Olympics. We'll find out what these games are a life-changing experience for those who compete.

[01:48:10] (COMMERCIAL BREAK) VAUSE: We have an explanation from the Vatican as to why Pope Francis would not let people kiss his ring. The Pope's behavior was somewhat unusual, Monday's video went viral. But the reason behind it not so strange. A Vatican spokesman says the Pope simply didn't want -- did not want to spread germs by having so many people kiss his ring in a short period of time. So there.

A 71-year-old woman in Scotland does not have to worry about going to dentist or, you know, getting burned on a hot stove. Throughout her life, Joy Cameron (ph) has not felt pain or anxiety. She thought that was normal until just a few years ago.

When she was 65 Cameron went to the doctor for a hip replacement. They were shocked she was in no pain. Turns out she has a rare genetic mutation. Researchers say it could help them find new treatments for pain and anxiety.

The U.S. President has backed out of a proposed total cuts in funding for the Special Olympics and its education programs. Education Secretary Betsy DeVos spent days defending the indefensible but three days of widespread criticism was enough for President Trump.

(BEGIN VIDEO CLIP)

TRUMP: I have been to the Special Olympics. I think it is incredible and I just authorized a funding. I heard about it this morning. I have overridden my people with funding the Special Olympics.

(END VIDEO CLIP)

VAUSE: For anyone who has been to the Special Olympics, be it as spectator or athlete, the experience is unforgettable. The inclusion, the drive to win, a love of sport -- all combined to bring out the very best. It's a place where winning does not always mean coming first.

In 2007 the Special Olympics summer games were held in Shanghai. I saw first hand the difference these games can make in so many lives.

(BEGIN VIDEOTAPE)

VAUSE: This is a nine day celebration of the things that make us good -- courage, determination, personal achievement, and friendship.

Here in Shanghai seven and a half thousand Special Olympians were given a welcome like never before with the biggest and most spectacular star-studded opening ceremony in the history of the games.

Perhaps the oath that these athletes take before the start of competition best describes the spirit of this game. Let me win, they say, but if I cannot win then let me be brave in the intent.

(END VIDEO CLIP)

VAUSE: Dustin Plunkett is a Special Olympian and spokesperson for the Special Olympics. He joins us now from Los Angeles. Dustin -- thanks you for coming in. Good to see you.

DUSTIN PLUNKETT, SPECIAL OLYMPICS SPOKESPERSON: Good to see you, too. Glad to be here.

VAUSE: Ok. Well just, (INAUDIBLE) are forming and if you can remember tell me what was your first reaction when you heard the news that, you know, the government, the president actually wanted to slash government funding for the Special Olympic programs in schools?

PLUNKETT: Well, I was very hurt at first and angered in a way because I cannot believe that somebody like Betsy DeVos would come out and pitch that idea of proposing to slash our funding after she herself has been out to multiple events of ours, saying that we have the full support of the government and she is behind us 110 percent.

VAUSE: Wow, it must have felt like a bit of a knife in the back in some ways. You know, the President now says that funding cut will not go ahead but how stressful has it been over the last couple of days for you and others, who, you know, the Special Olympics has been such a big part of your life.

PLUNKETT: It was kind of stressful but then you have to remember we are followed and supported by many people around the world especially in this country where we have a lot of voices out on social media, doing media interviews and almost every school in states across the U.S. here that really gave all the heat that now had President Trump rescinding what was said and saying that he will be funding.

VAUSE: You know, a lot of people don't really understand the value of these games, what they actually mean. You know, you have been a part of the Special Olympics for more than 20 years. So for you personally how much of a sort of a life changing events have the Special Olympics been?

PLUNKETT: The Special Olympics has been a big -- big life changing experience for me. And not only has it been life changing where it helped me find my voice to stand up for myself, put an end to the bullying that I've faced growing up as a kid inside the schools which I'm very thankful that we have a unified champion school program now. And every community teaching tolerance, teaching inclusion, and teaching acceptance and all that.

But I'm also very grateful to this organization for programs like Healthy Outreach (ph) where it actually saved my life 14 years ago.

VAUSE: How so.

PLUNKETT: I went through our Healthy Outreach, it's getting free screening done on my team by a volunteer dentist there. And he said, my teeth were in really bad shape you need to go get quality care right away. And it was during the follow-up care, my coach took me to his personal dentist and he did the x-rays.

[01:55:06] After reviewing them for a couple of minutes, he came back in the room and says Dustin brace yourself, I've got some bad news for you. But don't worry about it, I know how to fix it.

And he goes on to tell me that I had gum cancer forming in the upper left side of my mouth. And everybody just went one more month longer, I wouldn't be alive today sharing my million-dollar smile with the world.

VAUSE: Which is great so we're glad you're here. And (INAUDIBLE) I think, you know, it's more important than the games themselves is they have, you know, this ability to inspire and to encourage not just the competitors on the field but also their families, and, you know, the people who are watching. You know -- and that lasts long after the games are over.

PLUNKETT: Oh it definitely lasts long after the games are over. I was working as ESPN analyst during the 2015 World Games here in Los Angeles, as well as the 2017 World Winter Games in Austria.

And just to see the camaraderie between the athletes, especially the country after they marched in the opening ceremonies, they lined up the pathway to high-five other athletes from the countries and that is what we are all about. It's inclusion and acceptance. No matter what type of disability you have, we accept all of our athletes and that's the way everything works inside the Special Olympics Organization.

VAUSE: You know, I guess one positive out of all of this, there's been a lot of news coverage is there are a lot of people talking not just about the Special Olympics but also about those school programs, you know, which were under threat with this budget cut.

So I guess, you know, people now know a lot more about what's being done and the programs that are out there and the challenges that a lot of people have been facing and the remedies which are being taken to address those challenges.

PLUNKETT: Yes. and just a quick statement to President Trump. On behalf of all the athletes of Special Olympics. We want -- we are internally grateful for him rescinding that and saying that he will fund us because the organization (ph) survives not only us current athletes inside, nutritional programs but also the community base and now more schools can be a part of our he program and be accepted and when in doubt always choose to include.

VAUSE: Good words to finish on -- Dustin. So thank you so much. We appreciate you being with us.

PLUNKETT: Thank you.

VAUSE: And thank you for watching CNN NEWSROOM. I'm John Vause.

Please stay with us. The news continues right here on CNN after a very short break.

[01:57:30] (COMMERCIAL BREAK)

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