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U.S.-Russia Investigation; Call Transcripts; Syrian Civil War; Battle Against ISIS; Terrorist Plots; Tracking North Korea's Missile Tests; International IT Contest. Aired 8-9a ET

Aired August 4, 2017 - 08:00   ET

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


[08:00:00] (COMMERCIAL BREAK)

LYNDA KINKADE, CNN ANCHOR: Hello, I'm Lynda Kindade at the CNN Center. Welcome to "News Stream."

The Russian probe widens. Investigators zero in on potential financial ties between President Trump, his associates, and Russia. It comes as the Trump

administration deals with another major leak, the transcripts of his telephone calls with the leaders of Mexico and Australia.

Australian police meanwhile revealing more details of two planned terror attacks, described as the most sophisticated plot ever attempted on

Australian soil.

Well, pressure is bearing down in the White House as the special counsel digs deeper into the Trump campaign's possible ties with Russia. Trump

Jr.'s meeting last year with a Russian lawyer is getting close scrutiny. CNN has learned Robert Mueller has issued grand jury subpoenas to get more

information.

Investigators appear to be following the money trail, looking into the finances of the president and his campaign associates and any possible ties

to Russia. Mr. Trump is lashing out at the probe as a whole calling it a total fabrication. Justice correspondent Evan Perez reports.

(BEGIN VIDEOTAPE)

EVAN PEREZ, CNN JUSTICE CORRESPONDENT (voice-over): In a clear sign that the Russia investigation is advancing, CNN has learned that special counsel

Robert Muellar has issued grand jury subpoenas related to the June 2016 meeting between a Russian lawyer and Trump campaign officials, seeking both

documents and testimony from the people involved, according to a source familiar with the matter.

This as the probe widens with federal investigators exploring the potential financial ties of President Trump and associates to Russia. Sources tell

CNN that financial links could offer a more concrete path to any potential prosecution.

Investigators are looking into possible financial crimes including some unconnected to the election. For the president, that's going too far. He's

warned that delving into his businesses is a, quote, violation. Trump has maintained there's no collusion and he has no financial ties to Russia.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And I can tell you speaking for myself, I own nothing in Russia. I have no loans in Russia. I don't

have any deals in Russia.

PEREZ (voice-over): Now, one year into this complex probe, the FBI has reviewed financial records related to the Trump organization. The president

himself as well as to his family members and campaign associates.

CNN is told investigators have combed through the list of shell companies and buyers of Trump branded real estate properties. They scrutinized the

roster of tenants at Trump Tower in Manhattan, reaching back several years. And officials familiar with the investigation tell CNN Mueller's team has

examined the backgrounds of Russian business associates --

UNIDENTIFIED MALE (voice-over): From Moscow. It's Miss Universe 2013.

PEREZ (voice-over): -- connected to Trump dating back to the 2013 Miss Universe pageant that Trump hosted in Moscow.

UNIDENTIFIED MALE (voice-over): Thank you to Aras Agalarov and the focus group for their amazing hospitality.

PEREZ (voice-over): CNN could not determine whether the review has included Trump's tax returns. But even investigative leads that have nothing to do

with Russia but involve Trump associates are being referred to the special counsel to encourage subjects of the investigation to cooperate. Trump's

team seeking to limit Mueller's investigation.

SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: The president's point is that he doesn't want the special counsel to move beyond the scope and

outside of its mission, and the president has been very clear, as have his accountants and team that he has no financial dealings with Russia, and so

I think we've been extremely clear on that.

PEREZ (voice-over): CNN has learned new details about how Mueller is running his special counsel team. More than three dozen attorneys, FBI

agents and support staff, experts in investigating fraud and financial crimes, broken into groups focused separately on collusion of obstruction

of justice.

There is also focus on key targets like Paul Manafort, Trump's former campaign manager and General Michael Flynn, his fired national security

advisor. CNN has learned that investigators became

[08:05:00] more suspicious of Manafort when they turned up intercepted communications that U.S. intelligence agencies collected among suspected

Russian operatives discussing their efforts to work with Manafort to coordinate information that could hurt Hillary Clinton's bid for the White

House, according to U.S. officials.

In Flynn's case, the focus is now on his lobbying work for the Turkish government, which he failed to initially disclose as required by law. While

both men deny any wrongdoing, the approach to the Manafort and Flynn probes may offer a template for how the focus by investigators on financial crimes

could help gain leverage and cooperation in the investigation.

(END VIDEOTAPE)

KINKADE: Thanks to justice correspondent, Evan Perez, for that report.

Joe Johns is following developments from the White House. He joins us now live. John, President Trump went back to his called base last night at that

rally in West Virginia, some of his most faithful supporters, and again tried to defend himself and his election win. Just explain what he said.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: For the second time in 10 days, in fact, he was in West Virginia. The first time was for the Boy

Scouts of America. This time, as you said, Lynda, his very loyal supporters in the state that he won by 40 percentage points during the election.

The president essentially suggested that this was a false narrative and that Democrats were attempting to deny the voters of the state who

supported Donald Trump so wholeheartedly an opportunity to have the room leadership. Listen.

(BEGIN VIDEO CLIP)

TRUMP: The Russia story is a total fabrication. It's just an excuse for the greatest loss in the history of American politics. Most people know there

were no Russians in our campaign, they never were. We didn't win because of Russia. We won because of you, that I can tell you.

(END VIDEO CLIP)

JOHNS: So that diatribe within the speech in West Virginia went on for about five minutes, moving I would say a step closer to the language of

those who suggest there is a conspiracy to deny the people of states like West Virginia the leadership that they voted for.

One thing that is certain -- certainly the takeaway is that this president is not going to stop talking about the Russia investigation even though

there is now a grand jury impaneled looking into those issues and his lawyers might well want him to shy away from it, at least for a while, to

figure out where the investigation is going. Lynda.

KINKADE: Yes. Joe, did he offer any legal defense, or is it a political argument?

JOHNS: No legal defense that I could see. It was pretty clear that all of this was about politics. All of this was about casting. This is sort of us

versus them. In fact, his personal attorneys who are handling the issue of the Russian investigation back in Washington did put out a statement

indicating that from legal standpoint, they intend to fully cooperate with the special counsel.

And once again, reiterated the president position that three times before he was fired, the then FBI Director James Comey told the president he was

not under investigation, though a lot of things have happened since those conversations transpired. Lynda.

KINKADE: Yes, it is a fast-moving story. Joe Johns, good to have you at the White House. Thanks so much.

During his campaign and now as U.S. president, Donald Trump is completely unfiltered. But does that harsh time change when he's talking to other

world leaders? Apparently not, as we're learning from the transcripts of two calls with key U.S. allies. Randi Kaye reports.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): His first phone call with the Mexican president after taking office, and Donald Trump was already arm-

twisting. Transcripts obtained by "The Washington Post" revealed President Trump's goal to stop Mexican President Enrique Pena Nieto from saying

publicly that Mexico will not pay for the border wall. Trump, we should both say we will work it out.

The phone call took place on January 27, just two days after President Trump signed an executive order to build the wall. No funding is still an

issue. Trump appearing to try to script to the Mexican president. Pena Nieto, my position has been and will continue to be very firm saying that

Mexico cannot pay for that wall. A frustrated Trump, but you cannot say that to the press. The press is

[08:10:00] going to go with that, and I cannot live with that. Earlier in the call, Trump issued an ultimatum of sorts. If you are going to say that

Mexico is not going to pay for the wall, then I do not want to meet with you guys anymore. Trump also suggesting this could backfire on him. This is

the least important thing that we are talking about, but politically, this might be the most important.

Trump and the Mexican president also discussed the problem with gangs and drugs. That's when Trump insulted the people of New Hampshire, referring to

his win there in the primaries. I won New Hampshire because New Hampshire is a drug-infested den, coming from southern border.

KAYE: Still before it was over, President Trump changed his tune after they both agreed to stop talking about the wall and who will pay for it. Trump

telling the Mexican president that he will make him so popular, that his people will call for a constitutional amendment so he can run again. In

Mexico, presidents are limited to a single six-year term.

KAYE (voice-over): In another call that same week with Australian Prime Minister Malcolm Turnbull, one of our closest allies, Trump lost his

patience. Their conversation went sour after Turnbull asked Trump to consider taking as many as 2,000 refugees that had tried to enter Australia

by boat.

The Obama administration had originally cut a deal to do so. Trump's response, boy, that will make us look awfully bad. Here I am calling for a

ban where I am not letting anybody in, and we take 2,000 people. The United States has become like a dumping ground. Turnbull quickly tried to explain,

every individual is subject to your vetting.

Again, like with Mexico, Trump appeared worried about how it all would make him look. Trump, this is going to kill me. I am the world's greatest person

that does not want to let people into the country. It makes me look so bad. And I have only been here a week.

KAYE: Trump suggested the refugees could become a Boston bomber. He also called the whole agreement a, quote, stupid deal. And after finally

agreeing to vet the refugees, he said the deal makes him look like a dope.

KAYE (voice-over): Later in the call, the transcripts show Trump said, I will be seen as a weak and ineffective leader in my first week by these

people. This is a killer. Finally, before abruptly ending the call, Trump hurled one more insult to Australia's way. I have had it. I have been

making these calls all day and this is the most unpleasant call all day. Putin was a pleasant call. This is ridiculous. Randy Kaye, CNN, New York.

(END VIDEOTAPE)

KINKADE: Well, the fall out as well for the latest on the other end of the phone calls with President Trump. Let's get the reaction from the call with

the Mexican president.

Patrick Oppmann joins us from Mexico City. Patrick, here in the U.S., people are getting the real sense of how Donald Trump deals with world

leaders. The transcripts, clearly showing how President Trump failed in his negotiations with the president of Mexico. But the Mexican leader is

standing quite firm. How are people responding there?

PATRICK OPPMANN, CNN CORRESPONDENT: You know, people here are (INAUDIBLE) just like there in the United States. A lot of these transcripts have been

translated in Spanish. People have been going through them. Picking out their favorite parts. And really scratching their heads. A lot of people

here have remarked that Trump seems very different than he did in his campaign.

When he was talking about the wall, he seemed much more flexible, seemed like it was much more of a negotiation. Whereas on the campaign trail and

as president, he basically demanded that Mexico pay for this wall. Let's just go to some of the things that he told President Enrique Nieto of

Mexico during that January phone call.

He said, quote, you have some pretty tough hombres in Mexico that you may need help with, and we are willing to help you with that big league. But

they have to be knocked out and you have not done a good job of knocking them out. Then he goes on to say, quote, you cannot say anymore that the

United States is going to pay for the wall. I am just going to say that we are working it out. Believe it or not, this is the least important thing

that we are talking about. But politically, this might be the most important.

So honestly, Lynda, there is a lot to unpack here. Mexican found it very insulting that President Trump said that their country, their armed forces,

their police are not doing enough in the war on drugs, a war that they feel is caused by the rising demand in the United States, especially since so

many thousands of Mexicans have lost their life in that war on drugs.

Back to the wall because that really is the main topic here. The Mexicans that I have talked to said that they just think it's so revealing, that

President Trump behind closed doors in what he thought was private conversation, really focus on the political and not on the active building

of this wall, and seemed to say that it was more important, that it looked like that they were talking about building wall than actually strike a deal

to do so.

[08:15:00] That shows some flexibility perhaps that Mexico will not be forced to pay for this massive $70 billion wall. But, still, people here

have some frustrations that while President Pena Nieto did push back some, many people here are telling me that they felt that President Trump bullied

Mexico's president and President Pena Nieto is yet to respond to these transcripts, somewhat embarrassing transcripts for him and President Trump

that they have not been released.

KINKADE: Yes, certainly riveting revelations. Patrick Oppmann for us in Mexico City. Thank you.

French club Paris Saint-Germain have unveiled the world's most expensive footballer. Brazilian star Neymar just moments ago faced the press in Paris

after completing $263 million transfer from Barcelona. Neymar spent four seasons in Barcelona alongside Lionel Messi, winning the Champions Ligue 1

since scoring over 100 goals for the Spanish giants.

Neymar tells reporters he came to Paris for a bigger challenge and is by far the most expensive football transfer of all time. So expensive that it

raised accusations that PSG may have violated European football's financial fair play rules.

Still to come on "News Stream," ISIS is losing territory in Syria and Irag, but the U.S. envoy says the battle is far from won.

And between terror plots, Australian police are calling the most sophisticated attempt in the country of a terrorist attack. We'll have the

latest from Sydney.

(COMMERCIAL BREAK)

KINKADE: Welcome back. To Syria now, the changing dynamics in the grounds in the long-running civil war. Ceasefire was due to take effect Thursday

between Syrian government troops and rebel forces in towns and villages north of the battle city of (INAUDIBLE). It's just the latest safe zone

(INAUDIBLE) Russian led initiative to silence the fighting in key areas.

Meanwhile, coalition forces are beating back the terror group ISIS in both Syria and Iraq. Still a long way to go. CNN's Michelle Kosinski spoke to a

U.S. envoy who is working to win both the battle and the law.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN SENIOR DIPLOMATIC CORRESPONDENT (voice-over): U.S. backed forces battle ISIS block by block in Syria. But the area the terror

group now controls is quickly shrinking.

(GUNFIRE)

KOSINSKI: At its peak in 2015, ISIS controlled around 35,000 square miles in Syria and Iraq, nearly the size of California. The latest map obtained

by CNN shows they've now lost almost 80 percent of it and nearly a third of that entire lost has happened in the last six months.

BRETT MCGURK, SPECIAL PRESIDENTIAL ENVOY, GLOBAL COALITION TO COUNTER ISIS, U.S. STATE DEPARTMENT: Well, it has accelerated. President Trump, a very

significant decision he made was

[08:20:00] to delegate really tactical authority to decision makers on the ground. So the decision making cycle has been rapidly shortened and we've

been able to really act with dispatch to really surprise ISIS.

KOSINSKI (voice-over): Special envoy to the coalition against ISIS, Brett McGurk, began his role on the front lines of coordinating the effort under

President Obama.

(SHOUTING)

KOSINSKI (voice-over): He says bold operations now can be put together and executed in a matter of days.

(GUNFIRE)

KOSINSKI (voice-over): A big change from Obama's highly deliberative approach.

KOSINSKI (on camera): How much of a difference would you say it's made?

MCGURK: All I can say is this operation now is moving with effectiveness and efficiency that I've never seen.

KOSINSKI (on camera): So is it safe to say that this is really the end stage of ISIS?

MCGURK: So I would never say end stage.

KOSINSKI (on camera): Why would you not want to say that this is the end of ISIS?

MCGURK: Again, these terrorist groups, they can remain in cellular networks and certain networks. But what we want to do, the overall campaign plan is

to make sure that these cells can be handled by local actors on the ground as they are rapidly, rapidly shrinking movement. And that for those who

made it to Syria, as I mentioned, they're not going to make it out.

KOSINSKI (on camera): International attacks or lone-wolf attacks, do you think that they're still planning?

MCGURK: At Raqqa, they're now fighting for their own survival, so they're definitely not planning anything in Raqqa, other than how to hold on to the

next city block that they're about to lose.

ABU BAKR AL BAGHDADI, ISIS LEADER: (SPEAKING FOREIGN LANGUAGE)

KOSINSKI (voice-over): ISIS leader, Abu Bakr al Baghdadi, last year, McGurk thought was probably dead. Now the assumption is he's still alive in deep

hiding, likely outside Raqqa.

(GUNFIRE)

KOSINSKI (voice-over): But they see no connection anymore between him and ISIS units on the ground.

MCGURK (voice-over): But they'll continue on. It's an adaptive enemy.

KOSINSKI (voice-over): How much of ISIS is left? He says, today, roughly 12,000 fighters, down from a high of around 30,000. The coalition has about

50,000 in Syria alone. The flow of foreign fighters in and out is down 90 percent.

KOSINSKI (on camera): Are they still coming?

MCGURK: They're really not. And what's interesting is that ISIS's own propaganda now, they used to say everybody come to Syria, Now they're

saying, you know, telling people not to come.

KOSINSKI (on camera): Where is the place to go now?

MCGURK: Well, Libya was the place. Now, it's really unhospitable to them. Some of them are trying to get to the Philippines.

KOSINSKI (on camera): How many fighters do you think have gotten out total and are now back in their home countries or elsewhere?

MCGURK: From 2014 until now, it's probably in the low thousands.

KOSINSKI (on camera): How big a risk are those fighters today?

MCGURK: A significant risk.

KOSINSKI (voice-over): Do you think any of them are in the United States?

MCGURK (voice-over): Returning fighters from Syria, no.

KOSINSKI (voice-over): Michelle Kosinski, CNN, the State Department.

(GUNFIRE)

(END VIDEOTAPE)

KINKADE: In Australia, police say two terror plots they recently uncovered were the most sophisticated ever attempted in the country. One plot

involved the bombing of a passenger jet, the other a plan to release toxic gas in public. Two suspects appear in court by a video link on Friday.

CNN's Anna Coren has the latest from Sydney.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN CORRESPONDENT (voice-over): Australia facing what police say is the most sophisticated terror plot ever to be foiled on Australian

soil. Authorities were racing against the clock to build a case against the suspect. And after five days, they are laying charges against two men. They

alleged plotted to blow off a plane and launch a gas attack directed by ISIS.

UNIDENTIFIED MALE: The threat from terrorism Israel. We have been saying for a long time that it is not only low capability lone actors that we have

to worry about. We also have to worry about sophisticated plots.

COREN (voice-over): Thirty-two year old Mohamed Khayat (ph) and 49-year-old Khaled Khayat both from southwestern Sydney appeared in court by a video

link.

UNIDENTIFIED MALE: (INAUDIBLE).

COREN (voice-over): According to police, the men were working with ISIS operatives in Syria since April. They said military grade explosives by air

cargo undetected to Australia. Under close instructions, they then assembled the components to build a deadly IED.

MICHAEL PHELAN, DEPUTY COMMISSIONER, AUSTRALIAN FEDERAL POLICE: What we're alleging is the components of the IED originated in Turkey. It is a concern

that it got through, yes, it's hard to deny that.

COREN: When 49-year-old Khaled Khayat walked through these doors here at Sydney International Airport almost three weeks ago, police alleged he was

carrying a fully-fledged IED that was ready to go. It was due to be checked in as part of his rubbish (ph) luggage who was boarding an (INAUDIBLE)

flight. Police claimed he knew nothing about the plot. Now sometime during the check-in process, Khayat aborted the plan and left the airport with the

IED. As to why he did this is yet to be revealed.

COREN (voice-over): Police only learned of this terror plot last week after an intelligence tip off, forcing them to carry out multiple raids and

arrests across Sydney. It was then they learned about a second plot being planned. This one involving a chemical dispersion device

[08:25:00] containing hydrogen sulfide. A gas attack designed to target crowded places like public transport.

PHELAN: It it hadn't been for the great work of our intelligence agencies and law enforcement over a very quick period of time, the we could very

well have had catastrophic event in this county.

COREN (voice-over): This is Australia's 13th major counter-terrorism disruption since 2014 and without question the most alarming. As news broke

of the plot details, passengers expressed concern.

UNIDENTIFIED FEMALE: (INAUDIBLE) what we do, where we go, and how we do it.

UNIDENTIFIED FEMALE: I get nervous I guess (INAUDIBLE) travel.

UNIDENTIFIED FEMALE: (INAUDIBLE).

COREN (voice-over): One man who was arrested over the weekend remained in police custody. Authorities have until Sunday under the country's terror

(ph) laws before they need to charge him. Anna Coren, CNN, Sydney.

(END VIDEOTAPE)

KINKADE: Air France says it will expand its no-fly zone around North Korea. The announcement comes right after a North Korean intercontinental

ballistic missile splashed down near the route being taken by an Air France flight. North Korea launched the missile in July 28. It landed 150 km

northwest of Japan's Okushiri Island.

Air France's flight 293 going from Tokyo to Paris passed 16 km east of the missile (INAUDIBLE) about five to 10 minutes after the ICBM hit the water.

Air France says the expansion of the zone is a precautionary measure. The safety of the flight was not in question.

Every time North Korea launches a missile, an army of research is around the globe, raise to confirm what happened, when it happened, and where. One

of those trackers is Jeffrey Lewis, director of the Middlebury Institute of International Studies at Monterey. He spoke to CNN's Kristie Lu Stout in

Tokyo about the process and the role technology plays.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN ANCHOR: In the event of a North Korean missile test, it is utterly fascinating to watch you and your colleagues and fellow

researchers all around the world on social media and Real Time try to piece together what happened. Tell me about that work flow.

JEFFREY LEWIS, DIRECTOR, MIDDLEBURY INSTITUTE OF INTERNATIONAL STUDIES AT MONTEREY: I'm glad you think it's fascinating because to us it feels like

chaos.

LU STOUT: Yes.

LEWIS: We get deluged with information. You know, so it starts off where we hear there has been a launch, and you start to get technical information,

so you figure out how high the missile flew, how far it flew. And then once you get pictures, you actually start to build computer models of the

missile. And once you get all that information, you can put together. It turned out there are many secrets that North Koreans can keep.

LU STOUT: Yes, collaboration software is important. So what do you use?

LEWIS: Yes. We use black (ph) and we use a lot of Twitter DM.

LU STOUT: Yes. Direct messages on Twitter.

LEWIS: Yes. You know, you actually need to get people to see their message --

LU STOUT: Yes.

LEWIS: -- and respond. So, you know, wherever people are, that's where we go.

LU STOUT: How about North Korea? Are they using social media to showcase their technology?

LEWIS: Yes, the North Koreans love social media. They put all their videos up on You Tube. You can often take them down which makes us crazy for a

research perspective, but, yes, you know, I think back in the day if you wanted to get a North Korean movie, you have to go to North Korea. Now, you

just open up your laptop and there it is.

LU STOUT: And what about access to imagery? How much imagery are you able to get?

LEWIS: We get all kinds of imagery. So the North Koreans released tons of pictures and videos which they give to international media agencies and

they put online themselves. We also have a number of partnerships with companies like this company called Planet (ph) in San Francisco, which by

the end of the year, will take a picture of the earth every day, so we get great satellite photographs from them, usually the launch site on the same

day.

LU STOUT: So through technology, you are able to sort of piece together this very in-depth look at what North Korea has done and what it has been

able to achieve. What kind of picture (INAUDIBLE) to you? Is it the picture that worries you as a researcher?

LEWIS: Well, I would say this. We always treat North Korea like some kind of joke, right? But they are not laughing. And the jokes are a little bit

on us. They really are pretty serious about this. We see all kinds of evidence that this is a real and serious nuclear program. It is a real and

serious missile program. They are putting a lot of money into it. We probably need to take it seriously.

(END VIDEOTAPE)

KINKADE: With North Korean missile tracker Jeffrey Lewis talking to CNN's Kristie Lu Stout.

And special counsel Robert Mueller issues grand jury subpoenas in the Russian investigation. We will hear from an independent counsel who once

investigated President Bill Clinton on what he thinks of Mueller's investigation.

[08:30:00] (COMMERCIAL BREAK)

KINKADE: Hello. I'm Lynda Kinkade. You're watching "News Stream." These are your world headlines.

U.S. President Donald Trump is lashing out at special counsel probe into campaign's possible ties to Russia. It happened at a rally late Thursday.

He said the Russian story is a total fabrication. The Democrats using as an excuse from losing the election.

CNN has learned grand jury subpoenas have been issued seeking documents and testimonies related to Trump Jr.'s meeting with a Russian lawyer last year.

Firefighters in Dubai are looking into why a residential skyscraper was engulfed in flames for a second time. A fire ripped through the officially

named Torch Tower in the early hours of Friday. A witness told CNN as many as 40 residences were caught in the blaze. The fire was put out and there

has been no report of injury.

France football club Paris Saint-Germain have picked up Neymar. The Brazilian star goes to France in a world record transfer from Barcelona.

Neymar told reporters he came to PSG for a bigger challenge. He spent four year in Barcelona where he has won the European Cup alongside Lionel Messi.

Returning to our top story, the widening probe into the Trump campaign's possible ties to Moscow. Grand jury subpoenas have been issued.

Investigators are looking into the financial records of Mr. Trump's family.

Ken Starr is a former judge and solicitor general. He spent years as an independent prosecutor investigating President Bill Clinton's White House.

CNN asked him whether he feels the investigation is likely to go beyond its original scope.

(BEGIN VIDEO CLIP)

KEN STARR, FORMER JUDGE, APPELLATE LAWYER, AND SOLICITOR GENERAL: I think that the gravamen of the original complaint was, was there collusion, to

the extent that you're moving beyond collusion with Russian operatives or Russian interests or the Russian government itself, and into that which

doesn't seem to have a direct tie to Russia, then these questions are in fact raised.

It becomes a litigable as we say question that people are going to sidewalk about and disagree about it. I don't think it's clear one way or the other,

but I do think it is certainly a serious matter. When a special counsel is accused, and I was accused of that, of exceeding his or her authority,

that's a serious matter because we do not want investigators and prosecutors out on a fishing expedition.

(END VIDEO CLIP)

KINKADE: It seems the investigation into whether Russia was involved in the U.S. election (INAUDIBLE) several fronts. President Trump remained

steadfast in his reluctance to criticize Russia or its president. Mr. Trump signed a bill that places sanctions on Russia. He still calls the

investigation a witch hunt. CNN's Jake Tapper has more.

(BEGIN VIDEOTAPE)

[08:35:00] JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: His statements protesting the sanctions made clear his disapproval. And as if that were

not enough, earlier today, he blamed the dismal state of U.S.-Russia relations not on Putin, not on Russian attempt to interfere in U.S.

democratic elections as stated by every Trump appointment intelligence chief, but on the U.S. congress, tweeting, quote, our relationship with

Russia is at an all-time and very dangerous low.

You can thank congress, the same people that can't even give us health care. From Arizona where he is undergoing radiation and chemotherapy for

brain cancer, Senator John McCain had a different take, tweeting, quote, our relationship with Russia is at dangerous low. You can thank Putin for

attacking our democracy, invading neighbors, and threatening our allies. McCain think of course he was closer to what President Trump's Pentagon

State Department and intelligence agencies assert.

And just overall clear, according to secretaries Mattis and Tillerson, intel chiefs Coats, Rogers, and Pompeo, Vladimir Putin, the Russian

government, attempted to interfere in the U.S. presidential election with these information hacks and leaks. Putin further invaded and seized Crimea

and is now fomenting armed conflict in eastern Ukraine.

But, all that said, in President Trump's view, bad relations with Russia are the fault of the Republican-led U.S. Congress for attempting to punish

Putin for those acts, not with Putin. This is not even getting into the Putin political adversaries or journalists who have been murdered or the

Russian-made missile that downed Malaysia Airlines flight 17 in July 2014, killing almost 300 crew and passengers, including 80 children.

To our knowledge, while President Trump has been willing to criticize everyone from Don Lemon to the cast of Hamilton, he has never had an ill

word about Vladimir Putin. You may recall that when Bill O'Reilly told the president that Putin is a killer, the president's response was this.

(BEGIN VIDEO CLIP)

TRUMP: A lot of killers. We got a lot of killers. Why, you think our country is so innocent?

(END VIDEO CLIP)

TAPPER: And here again today, we have the president attacking Americans, U.S. Congress, for bad relations with Russia, laying the no blame at the

feet of the former KGB official who runs Russia.

Russian Prime Minister Dmitry Medvedev tweeted last night, quote -- and I should say in a clear attempt to go the president, quote, the Trump

administration has shown its total weakness by handing over executive power to Congress in the most humiliating way.

On Facebook, Medvedev said this, quote, the U.S. establishment fully outwitted Trump. The president is not happy about the new sanctions yet he

could not but signed the bill. The issue of new sanctions came about primarily as another way to knock Trump down a peg. New steps are to come

and they will ultimately aim to remove him from power.

You know, give the Kremlin credit for this if for nothing else. While no one on the president's staff or in his cabinet or in his family seems able

to exert any control over the president away they would like, the Russians seem to have figured something out.

(END VIDEOTAPE)

KINKADE: That was CNN's chief Washington correspondent, Jake Tapper.

It's supposed to be a chance to young students to challenge each other in computer programming. (INAUDIBLE) U.S.-Iran relations are casting a shadow

on the International Informatics Olympiad. We'll have more on that just ahead.

(COMMERCIAL BREAK)

KINKADE: With the headquarters of tech giants

[08:40:00] like Apple Google, the U.S. is an attractive place for young aspiring programmers to work. But as global tension increase, some young

programmers are worried it would be impossible to ever work in Silicon Valley. Nick Paton Walsh caught up with some of the brightest programming

students at an international contest for their thoughts.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): At a time when Washington wants Iran isolated, here it is playing host to about

80 different nationalities of nerds. The International Olympiad and Informatics, a competition for teenagers who are really, really good with

computers. As diplomatic daunts between Iran and America stiffens was stopped entirely. America has been invited, organizers say, but since

(INAUDIBLE) instead.

UNIDENTIFIED MALE (through translator): I won a gold medal.

WALSH (voice-over): He's a Chinese passport holder educated in the U.S. The American citizens we're told were invited didn't come.

MOHAMMAD GHODSI, OLYMPIAD TEAM LEADER: There were 80 countries here and the missing country is U.S.

WALSH (voice-over): What do you think of Donald Trump?

GHODSI: American people deserve much better.

WALSH (voice-over): Nuclear sanctions made help Iran's domestic IT sector boom particularly among the young. But where talks of sanctions returning

meant dreams of foreign work fade for Iran's men here.

UNIDENTIFIED MALE (voice-over): Would you like to work at Apple or Microsoft one day in America?

UNIDENTIFIED MALE: Yes, I definitely think about.

UNIDENTIFIED MALE (voice-over): With sanctions and the bad relationship between Washington and Iran, does that make you worry that may not be

possible?

UNIDENTIFIED MALE: Yes, it's not impossible. I believe the problem is not in our side, but the sanctions are coming from the United States. For

example, getting here work visa is really hard.

UNIDENTIFIED MALE (voice-over): What do you think of Donald Trump?

UNIDENTIFIED MALE: I prefer to stay quiet.

WALSH (voice-over): Iran and American headed back to a darker place, signed in the weeds of America's own embassy here where U.S. diplomats were held

hostage for 444 days, accused Obama of being a Jihadist sympathizer and CNN of being a snake in this very grass.

WALSH: This place will always represent the lowest points in U.S.-Iran diplomatic relations arguably but has it's peaked in recent decades the

nuclear agreements between the Obama White House and Tehran has never really seem quite so much on the threats and it showed lifespan the Trump

administration clear about the contempt they hold in even seeing Iran is perhaps the key number one regional threat.

The question though for younger Iranians here is, if diplomacy fails, what might that do to their dreams of broader global economic liberty? All

gloating young dreams hanging on the deal fragile as ever in Trump's hands. Nick Paton Walsh, CNN, Tehran, Iran.

(END VIDEOTAPE)

KINKADE: That is "News Stream." I'm Lynda Kinkade. Thanks so much for joining us. But don't go anywhere. "World Sport" with Patrick Snell is

next.

(COMMERCIAL BREAK)

[08:45:00] (WORLD SPORT)

END