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JOHN VAUSE, CNN ANCHOR: Hello, everybody. I'm John Vause in Los Angeles with breaking news this hour. Donald Trump could be about to sign his first major piece of legislation as president. The U.S. Senate approved the republican's tax reform measure just a short time ago. Protestors interrupted the vote a number of times yelling, "Kill the bill."

Because the Senate made some technical changes the House will vote on this bill again on Wednesday. That is a technicality. Details now from Phil Mattingly. Phil?

PHIL MATTINGLY, CNN CORRESPONDENT: Congressional republicans, President Trump, they are now on the brink of their first major legislative victory, something that they've fallen short of repeatedly in the first 11 to 12 months of the Trump administration. They are now just about there. The Senate, by vote of 51 to 48 along party lines passing the $1.5 trillion tax overhaul something a democrat said wouldn't go nearly far enough.

They attacked the bill as being skewed heavily toward corporations, heavily towards the rich. Republicans, though, more that willing to not just defend their plan right after the vote but in the future, as well. Take a listen to how Senate majority leader Mitch McConnell responded to my question about the current poll which doesn't look great for republicans.


MATTINGLY: Do you believe there's a need for republicans to go out and sell this bill given how Americans are currently viewing it?

MITCH MCCONNELL, UNITED STATES SENATOR: Absolutely. I mean we're looking forward to it. My view of this, if we can't sell this to the American people we ought to go into another line of work. I think this is an important accomplishment for the country that people will value and appreciate but obviously it requires us continuing this discussion with the American people and we're all going to be doing that all through the year.


MATTINGLY: Now, the Senate vote was supposed to be the final vote. It was supposed to be clear for President Trump's signature. That ended up not being the case. The House is going to have to vote again. It doesn't mean the bill is in danger. It just means that the Senate Budget rules ended up taking hostage and essentially stripping out three minor provisions in the republican plan.

Now, these do not go to the core of the bill, they do not create problems for the bill but they do add at least a couple more hours onto things. House republicans will once again pass the bill sometime shortly after noon on Wednesday. And then, it will head to President Trump.

The White House already preparing for that moment, preparing for celebration of a major domestic legislative achievement. They expect to have all republicans at the White House on Wednesday afternoon. Back to you.

VAUSE: Let's talk more about this. We have with us our panel Dave Jacobson, John Thomas and Peter Matthews all with us. OK. It was interesting, you know, we just heard from Mitch McConnell how this election will be framed. They're going to - this is - if you want to heed these tax cuts make sure the republicans keep both Houses. David.

DAVE JACOBSON, CNN POLITICAL COMMENTATOR: This was a massive shakedown by con artists and hucksters with the likes of Donald Trump and Mitch McConnell. The fact of the matter is this is a giveaway to big corporations, to Wall Street and to millionaires and billionaires. And it raises taxes on millions of hard working families across the country from California to New York to New Jersey.

VAUSE: What did you hear, John?

JOHN THOMAS, CNN POLITICAL COMMENTATOR: I think Mitch actually hit all the right points and exactly the kind of message you're going to need going into the midterms. I mean, one is you say we have tax breaks for millionaires and billionaires, he's talking about making America more competitive again and being able to compete against the likes of China and Europe that have lower corporate rates than we do.

It's about bringing jobs back home, real tax breaks for 80 percent of Americans and that messaging going into the midterms about we want you to keep getting these tax breaks and they want to take them away is something I'm willing to fight on any day.

VAUSE: And, Peter, how do you see it all sort of shaping up? Obviously the republicans now have to go out and sell this bill. I mean, McConnell said if we can't sell this to the American people we should get into another line of work.



MATTHEWS: Now, John, here's something in flick (ph) also the results of the tax cuts, the deficits, we have a $20 trillion debt and we're paying a couple hundred billion a year just on interest alone on the debt. Where's the money for investment and infrastructure? We can't grow the economy unless you have a basic backbone for infrastructure and that's not being done.

The American's still have to design the engineers (ph) so you have to have $2 trillion to reinvest in our roads, our bridges, our sewer systems, our water systems. That hasn't been done. It's not going to be done with this kind of deficit.

VAUSE: Yes, so I guess, John, the good news is the president gets to sign something for real. Not an executive order but some kind of real legislative accomplishment by the end of the year. As we would say the bad news is it's really unpopular. As CNN pole has it at 33 percent approval rating. It is so disliked that the president's approval numbers are at 35 percent by comparison.

Hillary Clinton has higher approval numbers at 36 percent. So, how do you take it from a, you know, 33 percent approval or a 28 percent approval to something that people actually embrace?

THOMAS: When average Americans start getting up to $2,100 rebates in their mailboxes, I think that does the talking. Right now I think a lot of Americans are confused and quite frankly misled by the rhetoric on the left about what this bill is going to do for them. So the proof will be in the pudding because we have -- we got off to the wrong start, we've lost the messaging battle, but the proof will be in the pudding.

VAUSE: What is inaccurate though about the balance here? That someone on $1 million (inaudible) a year walks away with a $70,000 tax break, which is basically 3.3 percent, where as the average household walks away with less than $900, which is 1.5 percent. Is that (inaudible) right?

THOMAS: That is in it, but when we're talking about the messaging and Dave's talking, all he is talking about is what millionaires a billionaires get, not what middle class gets. Not the rebates up to $2,100 for working class Americans and that's -- sometimes it's up to 13 percent of their total income they're getting back.

JACOBSON: Middle class families deserve a tax cut, poor people deserve a tax cut, rich people don't. We've got unprecedented income and equality in America. The one percent, the millionaires and billionaires are getting wealthier everyday and hard working families are seeing stagnant wages. What we need is -- Peter's right, investment and infrastructure to create good paying middle class jobs. Job training, apprentice programs.

THOMAS: We're spending and taking from my money.

MATHEWS: So John, what about the investment. We're talking about cutting back on schools, we're talking about cutting back on so many programs that people actually need that could hurt the demand side of the economy. And we either have that, if you don't have that you can't have growth in the private sector.

THOMAS: Because we believe giving everyday Americans more money back to spend in the economy and reinvest in jobs is the way to do, not growing the size of the government or forcing Americans to--

MATHEWS: I understand your philosophies, but the individual mandate was also eliminated which is basically going to destroy ObamaCare--


MATHEWS: --and cost more -- cost for -- the rates -- the insurance rates are going to go way up.

VAUSE: So you're telling me that people who will effectively thrown out of healthcare because of this tax plan.

THOMAS: They were forced.

VAUSE: Right.

THOMAS: A lot were forced--

VAUSE: Sure, but that basically means an end to the affordable healthcare.

THOMAS: Yes it does.

VAUSE: And where's the replacement?

THOMAS: Well what's great about this is it will force the conversation to actually do something and not just to actually meaningfully replace what ObamaCare was.

VAUSE: OK, the President has continued to talk about how he will be financially worse off under this tax plan. CNN's Jim Acosta had a bit of back and forth at the White House briefing with spokesperson Sarah Huckabee Sanders about what that actually means. Listen to this.


JIM ACOSTA, SENIOR WHITE HOUSE CORRESPONDENT: The President did say that this tax cut bill would cost him a fortune. That was thoughts.

SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: No, because on the personal side this actually could impact the President in a large way and--

ACOSTA: --balance out corporate versus personal if he's going to come--

SANDERS: I'm not sure if he's done a side-by-side, but I know that there a number of previsions that would negatively impact the President personally and so we contend that those comments are still very consistent.


VAUSE: Sarah Sanders has a really tough job. But Dave, so OK, so now we know all. So maybe personally he's going to be a little bit hard to (inaudible), but from a business point of view it's off to the races.

THOMAS: Well -- and that's why "Forbes Magazine" today put out a story estimating that he's going to get about $11 million in tax cuts. That's according to his 2005 returns. We don't know how much money he's worth as of today. He never released his tax returns to the American people. Apparently he still says that they're under audit. There's nothing that has shown that he can't legally release them to the American public and I think at the end of the day, the public deserves to know how much Donald Trump is going to personally benefit--

JACOBSON: --benefit--

THOMAS: Are you alleging that Donald Trump pushed tax reform so that he could get richer? Donald Trump is looking out for his bottom line and he wants to fatten his wallet, so at the end of the day--


THOMAS: --this is a guy -- Donald Trump only -- come on, you can't deny Donald Trump only cares about Donald Trump.

VAUSE: And Peter, at least -- probably not. I mean, most likely not. But for some people there is perception, Peter, that the President's going to bank--

MATHEWS: Well, especially when he doesn't put his holding into a real blind trust. And he knows what's going on, he's talking to his sons everyday. And there's a (inaudible), there's been a public official making decisions that are good for the whole country, you're getting it caught up in a little private game. And by the way, the estate tax alone is going to give him millions of dollars for his children to keep in their pockets.

THOMAS: Well, I would image he's already planned for the estate tax. Many people have.

VAUSE: Was it Gary Cohn, the economic advisor, who said, only morons pay the estate tax?

MATHEWS: I heard that story.

THOMAS: Well, it's actually the small families that get screwed the most because they don't have the ability to get around the estate tax. But the point is, I mean we can play these games.

I mean the President is going to be better off because he has successful businesses and that he's going to see a reduction, but he also is paying more personal tax because he lives on those coasts. He lives in New York and it's high state and local.

JACOBSON: But this is a perfect illustration of like why the American public thinks that the economy is rigged. In favor of the wealthy corporations and Wall Street and those entities exploit our existing system, our corrupt system, at their expense. They're footing the bill. This is Robin Hood in reverse. VAUSE: And to that point -- sorry. To that point, there was a

provisions taking a look at this bill of Friday, they real estate provision which is often quite complicated. But 14 senators, republican senators have voted yes for the tax bill. We'll benefit enormously from that revision which was slipped in at the last minute.

UNIDENTIFIED MALE: I mean it doesn't benefit the doctors or lawyers or this reality people. One more thing, you have to have some lose of fairness here. Why not give the middle class working people a tax cut instead of just wealthiest people so that they can build the economy from the ground up -

UNIDENTIFIED MALE: We are, 80 percent.

UNIDENTIFIED MALE: But, John, it's such a mid acceptance (ph) compare to what the millionaires are getting -

UNIDENTIFIED MALE: Well, because they pay a lot more taxes to begin with.

UNIDENTIFIED MALE: Yes but that should be shifted in my view otherwise you won't have a middle class too much longer. Look at the countries that have done that, you have a much larger middle class where the wealthiest people have higher rates, the middle class pays a middle rates and the poor pay virtually nothing.

So there's also programs to help the poor have a chance to get to become middle class. The American dream, right?

UNIDENTIFIED MALE: There's also the question -

UNIDENTIFIED MALE: You don't agree with that a lot.

UNIDENTIFIED MALE: Increases the deficit by $1.5 trillion, in return for that you get what, one something percent economic growth which at the end of the day, when they do the to math, it's not a good investment at the end of the day compared to a stimulous package or an infrastructure spending which way you have to see.

UNIDENTIFIED MALE: Precisely. Look, we've seen trickle down economics before. It didn't work in the 80s, it didn't work during George W. Bush's presidency, it isn't going to work in 2018. the fact of the matter is you're right, Peter brought this up earlier, investments in infrastructure, investments in education, making college affordable and by the way going back to the healthcare issue, healthcare should be a right, not aprivilage just for those who can afford it.

This strip away healthcare for millions of people, that's a value our government forcing low quality healthcare and forcing me to buy it.

UNIDENTIFIED MALE: Can I should you how healthcare reform would help - a real reform? In Canada, it costs $1,000 less to make a car - the same car made of the year costs more because our employers are paying for the healthcare. In Canada, it's a single payer system paid for. UNIDENTIFIED MALE: Well the president is Donald Trump, he is up, maybe he's watching us. He has been tweeting; this is what he put up. The United States Senate just passed the biggest in history Tax Cut and Reform Bill. Terrible Individual Mandate Obama Care Repealed. Goes to the House tomorrow morning for final vote. If approved, there will be a News Conference at The White House at approximately 1:00 P.M. eastern time.

I guess that we'll all be watching, but clearly, Dave, the President's got something to boast about.

UNIDENTIFIED MALE: Yes, he's taking a victory lap, I mean, the fact of the matter is he hasn't throughout the course of his entire first year in office; he hasn't gotten any milestone pieces of legislation through the congress. This is an incredibly unpopular bill, the American people rejected it, Donald Trump saw past that and he's going to claim credit for passing some meaningful piece of legislation.

Democrats and more Americans are against it but he's still going to have that victory lap.

UNIDENTIFIED MALE: And I guess, Peter, at the end of the day, if American voter out there, it they're feeling richer and they feel like their job is more secure, if their wages are going up - which may not be a result of this tax bill, it could just be a result because it's a booming economy anyway. Donald's going to get the credit.

UNIDENTIFIED MALE: Well you wouldn't argue with success but I don't think it's going to be successful; it'll be the reverse in my view from what happened in the past in history.

UNIDENTIFIED MALE: You're saying, John that on this point, the economy is doing well and now there is an arrow set up that because of how well it does, if it continues to do well, poverty communities go down which was the result of a lot of Obama policies from earlier on. Donald Trump gets the credit.

UNIDENTIFIED MALE: But, John, wages have to go up also -

UNIDENTIFIED MALE: Well Trump should - I mean, that's politics but Trump should take credit but also markets and job creators a forward looking. We don't look at what Obama did a year ago, we look at where we're going to be in 2018, 2019, so if the economy keeps going strong and picks up speed, at some point I think it is fair to say that Donald Trump does deserve some credit here.

UNIDENTIFIED MALE: But there's a sinister part it seems the way this is being structured. The biggest cuts are up from and they dwindle away to nothing and then there is that cut off point because of the reveal, they basically expire. Which seems incredibly political in the motivation of how all of this is being done, right?

UNIDENTIFIED MALE: Yes, I mean there's - Axios put on a report earlier today that by 2027, taxes are going to go up by $83 billion on hard working families and that's just the cold hard reality. Paul Ryan says we're going to get to that; we're going to fix that. The fact of the matter is that earlier this week, there was a story that Paul Ryan's considering retiring, he can't make that promise.

UNIDENTIFIED MALE: And Peter, to you on all this, if it works, it obviously sets up Donald Trump in an excellent position for the mid terms and maybe for a second term. If it doesn't -

UNIDENTIFIED MALE: Failure. He won't be a two term president in that case and it'll come pretty quickly I think, if that's the case.

UNIDENTIFIED MALE: Well impeachment will be a discussion.

UNIDENTIFIED MALE: Well lose both houses and he will be impeached if that happens so literally Donald Trump is living and dying by this tax bill.

UNIDENTIFIED MALE: I like his odds, OK?



UNIDENTIFIED MALE: OK, Dave and John thank you so much.

UNIDENTIFIED MALE: Bernard Law, the former Arch Bishop of Boston has died, aged 86. He was a powerful figure in the Roman Catholic Church. Many thought he might become the first American Pope, but he resigned in disgrace in 2002 after a reporting from the Boston Globe uncovered a massive sex abuse scandal in his arch diocese.

Law was accused of protecting priests who were abusing children. (Inaudible) correspondent Delia Gallagher on the line now from Rome, so Delia do we know any more details about the cause of death and I guess it's now learned that Law was actually living in Rome.

GALLAGHER: Well, that's right John. We've known for some time of course that he's been in Rome because after he resigned in 2002, in 2004 he was brought over to Rome amidst even more controversy because he was given at that time a role in one of the major Basilica's here, which we remained in until 2011 when he effectively retired.

So the Vatican has said that he died in the early hours of this morning after a long illness, so not a lot of details on his illness, but as you say he was 86 years old. But the thing about cardinal law is that most people will remember for as you say this disgrace, this fall from grace because he was really of the big stars of the Catholic Church leadership in The United States.

He was much loved in Boston before the sex abuse scandal. He was a confidant if you want. He spoke with President Reagan, first President Bush. He was a mover and shaker in the Catholic Church. And when the sex abuse scandals arose in 2002 he became a lighting rod for outrage because of cover up.

In particular, there was a notorious case of Father John Geoghan who was convicted of abusing 130 boys and the cardinal was accused there of moving Father Geoghan around and of covering up for other priests in this diocese and the issue still continues today about accounts and see and accountability for those Bishops who covered and moved priests around.

But really what he represented at the time was the kind of refusal to see the gravity of the situation and so he became - a lot of the outrage was really directed at him and resulted in his resignation in 2002 which was a huge deal at the time. And then he was brought over here to Rome.

As I say again kind of another scandal because it seems that the Vatican was trying to help him out as it were - they were in a tough spot because he's a Cardinal. And he always remained a Cardinal. So, he was brought over here to kind of live out the rest of his days in quiet as it were, which he effectively did, but as a kind of honorary role in this major basilica.

So, certainly a very controversial figure and once the sex abuse scandals struck the Boston Arch diocese were left nearly in bankruptcies from a $100 million had to be paid out in damages for those cases, John.

VAUSE: Yes I guess it's - you don't really think of these major individuals involved in these scandals sort of seeking of their days peacefully in Rome until the age of 86 considering everything they've been involved in, but that is what has happened. Delia Gallagher on the line there from Rome.

So, coming up next on News in LA, the long battle over an (empty felony) just getting started. Could this really mean the end of the internet as we know it?


VAUSE: Well, what has already been a year of outrage in America in politics, there seems to rare agreement on (net neutrality). In fact, the net neutrality is a good thing. But, the FCC voted to repeal the (in net) regulations last week and now, many fears that (days) are (like) spares and open (internet) could be numbered.

But the fight is far from over. With law suits about to be (lodged) and law makers on both sides of the house, slamming the FCC's move, (this) you could be ultimately be decided in court or maybe even in Congress.

Well, for (once more) is at stake here and it's (really) (elis). Hemu Nigam joins us now. OK, you think it's a whole lot of much to do about nothing. So, let me read this to you. One of the big arguments in the net neutrality, is to prevent the big eminent providers from creating a fast lane for those who want to pay more, a slow lane who don't..


VAUSE: But, there's also a counter argument which I think goes to your point. All that excess data from companies like, Youtube and Netflix, who aren't paying a dime extra for any of this, that's actually slowing internet down in a major way. NIGAM: Well, there is also, on top of all that, the reality is this, two years is all that this will actually exist (up to) FCC. So, the question becomes, the internet started, what, back in the 1980's, late 1980's? What's happening in the last twenty something years--

VAUSE: Well, became widely available. I would say, over the last ten years or so and the progression to mobile has been a big development. And, what it did, that rule that was put into place in 2015 cemented the practice that had already been on going.

NIGAM: Which is exactly the point I am making here is, the practice is already on going. So, what is happening is the FCC was given a certain FCC, and I think that's going to continue to happen - what's going to happen. I mean looking now, we're, what, day six or something since this happened? And we're still doing exactly the same.

VAUSE: But it doesn't happen like (inaudible) like say on switch.

NIGAM: Right, right.

VAUSE: It is incremental -

NIGAM: Right, but what really needs to happen - and this is I think where you're actually thinking about this - what really needs to happen here is one very basic thing, and that is Congress get together, pass a law, make this policy the law of the land, and stop every from wasting money and wasting time on this because if you make it into a law, the new FCC commissioner can't just change it like that.

VAUSE: Well, I mean say you - I think that's what -

NIGAM: That's what really needs to happen.

VAUSE: - the law leads probably to this anyway (ph) because the change to this law is so dramatic without any real basis to it. That's I think one area we're looking to knock down, but I think the problem you have is that it happens so insidiously. It happens by incrementally. It doesn't happen overnight, and before you know it, you are at the mercy of these Internet companies.

Have you ever spent your hours on hold with Comcast or with AT&T or Uvision? I mean it is a nightmare already. I mean the customer service from these big companies is horrendous -

NIGAM: Yes, and the backlash they get from that is you talking about it in front of 20 million people -

VAUSE: It doesn't mean anything because they've got a monopoly on the areas.

NIGAM: But actually they don't because you have AT&T, you have Comcast, you have a bunch of companies. And yes, there's that I guess some people call and oligopoly -


NIGAM: - is the word I remember learning. Yes.

VAUSE: I mean the problem with it, it's a monopoly (ph) in the sense that they're all as bad as each other.

NIGAM: Yes. Well, it depends at what perspective.

VAUSE: Right.

NIGAM: At the end of the day, the good thing here is this - the consumer is being watched out for from many out there. And the second is the companies actually realize given all the backlash that's happened that they better be on guard here and do the right thing because if their moral compass shifts in the wrong direction, there's plenty of people to say "I told you so."

VAUSE: Look, I think when people find out that their free porn is going away, they'll be riots in the street.

NIGAM: And that's for another night.

VAUSE: OK, thanks for coming in.

Well there's not a lot of love for the Republican tax plan in the U.S., and there might be even less for it around the world. Details in a moment.


VAUSE: And welcome back to everybody watching CNN Newsroom live from Los Angeles. I'm John Vause with the headlines this hour. And yet Manhugi (ph) rebels claimed to have fired this missile at a Saudi royal palace in Riyadh which the Saudi's say was intercepted and there were no casualties. Bijet comes (ph) as the Hudi's mark 1,000 days since the Saudi letterfence (ph) had began. (Inaudible) to say the least. Excuse me.


The conductor on the Amtrak Train which derailed in Washington State was in the passenger section when the accident happened. An engineer and a conductor in the training were in the cab. The NTSB says the train was traveling more than twice the speed limit. U.S. Senators passed the Republican tax reform bill just a short time ago for 51-48 vote was along party line, but because the Senate made typical changes, the House will have to vote on the measure later on Wednesday. It will then go to the president's desk to sign. So far, reaction on the Asian markets to the U.S. tax overhaul (INAUDIBLE) continues to be that way. Markets seemed to have barely moved from the Nikkei in Japan, Hong Kong, Hang Seng, the Shanghai Composite down of a quarter of a percent, and Australia barely above flat.

OK. Journalist Kaori Enjoji joins now from Tokyo. So what was happening here is their concern about what this bill -- what this tax reform bill will mean for economies overseas or is it just everyone was expecting it, so nobody cares.

KAORI ENJOJI, JOURNALIST: I think a more a little bit of the latter I think. I think as this bill has worked this way through Congress over the last couple of weeks, the investors here and across the region have had ample time to digest the tax overhaul in the U.S. and I think that's why today there has been a fairly muted reaction to the latest developments. I think people were concerned about what impact it would have on the currency markets particularly because the corporate tax rate is going down so sharply and it might prompt the U.S. corporations doing business overseas such as in this region to repatriate some of the profits that they make here and turn them and exchange them back into dollars.

And I think that has been supportive overall for the dollar in recent months, but today, there's been very, very little reaction. I think in general has been well priced in according to the traders in the market. I think more they're concerned about a possible government shutdown is looming right now. And they seem that -- they see that as a bigger risk factor for the markets right now. And you also have to remember it's been already a banner year not only U.S. stocks but stocks in the region here in Asia with the Tokyo market, the bell weather already trading at its best levels in about 26 years, John.

VAUSE: Company shutdown I forgot. OK. There is always something. Kaori, thank you. Alex Cherin is a Senior Vice president of Englander Knabe & Allen (INAUDIBLE) I should say. And he writes a weekly column on national trade and globe issues. Good to see you, Allen. Thank you very much.


VAUSE: OK. So the view from Europe seems to be that this tax plan takes the U.S. from a high tax county down to a low tax country at least from a business point of view, but it goes way beyond creating kind of a level playing field here. It actually says that -- it's a huge advantage to American exporters and that will penalize countries in Europe especially countries like Germany.

CHERIN: Yes. Well, that's certainly the perception but what we're going to see in the coming days and coming months is whether Trump is the great negotiator as he has touted himself to be over the last few months and the year. So look, three big takeaways from today's vote in the House overseas in Europe and Asia and this is sort of the eyes of the global community. Number one of the Trump Administration of what happened with this bill has absolutely cemented the fact that lowering the corporate tax rate is going to be the cornerstone of the Trump Administration.

We don't know whether that's going to pan out internationally or not. But they certainly signaled that that's going to be the cornerstone for years to come. Number two is this hopeful optimism that this money this park overseas American money is going to somehow be repatriated back to the United States by giving a small tax penalty eight to eleven percent sort of a get out of jail free card. And then the third which you mentioned which is the most contentious is this incentive that this bill gives to American exports again to be determined.

VAUSE: OK. Well, finance ministers from what, Germany, France, Britain, Spain, and Italy, they've been in touch with the Trump Administration directly. They've written a letter. This is part of it. It is important that the U.S. Government's rights over domestic tax policy be exercised in a way that adheres with international obligation to which it has signed, you know, they go and talked about all the unfair advantages for American companies. They also say that there could be violations here in a number of treaties as well as international law. So, you know, but that gained too much of weeks as the company itself, but do they have a case and what can they do?

CHERIN: They do. The irony, John, is this is the stuff that we complained all the time about when other countries do whether it's Chin or other countries yet here we are we've got to fight it in our legislation today. Look, what essentially does is lower the tax rates on U.S. exports for about 13 percent. The hope is that will obviously incentivize small businesses, agriculture, other markets in the U.S. to have a broader open market overseas. The problem is that other countries as you mentioned are going to cry foul. To further complicate this is when it does come to a head, where do we go to resolve these disputes?

[02:35:04] Over the last few months, the Trump Administration has tried to wean us off of our reliance on things like the World Trade Organization, NAFTA, the Trans-Pacific Partnership, so it's a little hypocritical for us to criticize other countries pull away from these multinational trade agreements that we have and then go ahead and do the same.

VAUSE: Yes. There's a lot of faith in the Trump Administration that needs to institutional -- international organizations. We're also not hearing a lot officially from China but there's been a lot of stuff sort of in the state-run media which doesn't get there by accident. There was a front-page editorial that one of the business papers warning that tax cuts in the U.S. and therefore oppose a challenge to China's manufacturing in technological innovation which China must cautiously brace for. What would that impact be and not just supposed in China because China is typical (INAUDIBLE) Asia, huge manufacturing a lot of U.S. investment there?

CHERIN: You know, look, China has been around the block a few times before. They know how to handle this. And what they see is in the short-term there will be some benefit, you know, you've seen obviously this huge rally on Wall Street. They obviously took advantage from that. But I think in the long-term, China has got some concerns for two reasons. Number one is what I mentioned to you before is that if there is a dispute that arises, there's really no venue that they can negotiate that in whether it's again the World Trade Organization or the TPP. The second is China loved short-term tax breaks. It benefits them again whether it happens in the U.S. or elsewhere. But what they're most concerned about is the long-term stability of the U.S. economy and what nobody is mentioning what really didn't come out of this bill today and what the international markets have yet to react to is the $1.4 trillion that this is going to add to the U.S. deficit. That is going to send shockwaves through China. VAUSE: Yes, because -- yes. The currency issue is a big issue for

the U.S. and when you, you know, these huge deficits, you know, you have to get money from somewhere, so, you know, how does the United States end up funding these and what, you know, when you take a $1.4 trillion tax out of the -- out of the world economy to fund these tax cuts, what's the flow and effect?

CHERIN: Well, again, I think that the biggest takeaway today overseas is that the U.S. is going to turn back just where those Reagan era -- Reagan era trickle-down policies. And again, there's this optimism that if you build -- if you lower the corporate tax rate from 35 to 21 percent, that's going to offset by long-term growth. Again, markets have shown in the international community, it's shown that they would rather have long-term stability.

VAUSE: Yes. It doesn't work I guess this whole trickle-down theory despite -- how much you want to believe in it? (INAUDIBLE) good to see you.

CHERIN: Thank you.

VAUSE: All parents think their newborn baby is amazing. This baby though more amazing than most. That story in just a moment.


VAUSE: Sometimes a mother and a daughter are just meant to be. Here's Amara Walker.

[02:40:04] AMARA WALKER, CNN INTERNATIONAL CORRESPONDENT: Emma Lyn Gibson is a happy and healthy baby born November 25th of this year. She has less than a month old, but Baby Emma has been frozen for over two decades conceived around the same time as the mother who gave birth to her.

TINA GIBSON, MOTHER OF EMMA GIBSON: I was like, wow, you know, if this embryo had been born when it was supposed to be, you know, I was like, Dr. Lillian, we could have been best friends. I was like, I'm only 25.

WALKER: Ben and Tina Gibson are the proud parents of Baby Emma who is now the longest known frozen embryo that come to birth. When the Gibsons decided to pursue In vitro fertilization to adopt an embryo, they had no idea that they would become a record-breaking case.

GIBSON: So when you go through like the profile to pick out an embryo, you know, it doesn't tell when they were frozen like it doesn't say that, and so they gave us like 500 profiles and we had no idea, you know, how to even narrow it down.

WALKER: Long before the Gibson story begins, Emma's embryo was donated by her anonymous genetic parents in 1992. She was cryopreserved in a lab at the National Embryo Donation Center until she could be paired with a couple hoping to conceive. Her embryo was then thawed before being implanted into Tina Gibson's womb which is when the couple learned their future daughter had been frozen for nearly a quarter of a century.

GIBSON: They're like, well, Tina, this is a world record and I just looked at them, and I was like, what? And they're like, yes, it's been frozen for 24 and a half years. And I was like, are you kidding for that?

WALKER: While the news came as a shock to the Gibson's, In vitro fertilization has slowly been perfected over the years leading to endless possibilities in the field.

JEFFREY KEENAN, REPRODUCTIVE ENDOCRINOLOGIST, NATIONAL EMBRYO DONATION CENTER: We don't know how long given embryos skin last, but we don't know that there's any definite time limit. Back when I started in 27 years ago, the success rate were about half of what they are now and we really do not need to be freezing nearly as many embryos and creating nearly as many embryos, and then freezing a lot of extra embryos.

WALKER: As advancements continues, the Gibson's believed it was not only science but faith that brought Emma to them.

GIBSON: Twenty-four and a half years ago, you know, that God, you know, I already knew that she was going to be, you know, part of our family and, you know, up here, I'm thinking about it because it's such, you know, it's such a blessing, you know, he is good to us. You know, I'm just so thankful, we're just so grateful.

WALKER: Amara Walker, CNN.

GIBSON: I get emotional every single --

VAUSE: Great story. Thank you for watching CNN NEWSROOM live from Los Angeles. I'm John Vause. Be sure to follow us on Twitter @CNNNewsroomLA today giving highlights and clips from the show. Stay tuned now, "WORLD SPORT" is up next. You're watching CNN.


KATE RILEY, CNN INTERNATIONAL SPORTS ANCHOR: Welcome everyone to WORLD SPORT. I'm Kate Riley at CNN Center. We're going to start with lead softening them where the dial race in the EPL was put to one side. Leicester City, former champions at home to Manchester City, he walked to the field an experimental team and rest some of their key players. To the King Power Stadium, we go and the visitors took the lead, Reynaldo Silver, too much for their defense. Jamie Vardy who also withdraw lesser level with the penalty to the send the game into extra time.

[02:45:05] But the Leicester City would miss their fourth and fifth penalty under the new ABBA system, City winning this one on the score of 0-4. Their fans looking unstoppable this season in all competitions. They're through to the semifinals. Here here's a look at one of the other result to cross England in the cup on Tuesday, only one other fixture on the night. Arsenal winning against West Ham, 1-0 that Danny Welbeck with the match winner. We'll staying with Manchester City for a moment. It has been confirmed that an arrest has been made after an alleged racist attack on the footballer Raheem Sterling. It claims the striker was targeted on Saturday at the cups training ground before the match.

The Greater Manchester police force said, "Earlier this morning we arrested a 29-year-old man after investigating a racially aggravated assault in Manchester. Racism will not be tolerated in Greater Manchester and has no place in civilized society.

Elsewhere on Tuesday, an athletics world governing body had started an investigation into allegations that the coach and agent for the USA's 100-meter World Champion Justin Gatlin also to supply performance in hunting drugs to undercover reporters.

Tuesdays, the edition of the British newspaper, The Telegraph, says that undercover reporters went to Gatlin's Florida training base where the agent Robert Wagner and the coach Dennis Mitchell, a former Olympic gold medalist himself offered to supply performance-enhancing drugs. Both men deny the claims to The Telegraph. CNN has reached out to both of them for comment but it yet receives a response.

Track and Field independent athletics integrity unit have launched an investigation into the allegation describing them as very serious. Caliber member became a 100 meters world champion back in August, beating three-time champion Usain Bolt, on his career swansong.

In a statement on Instagram, Gatlin said, I'm not using and have not used PED's. I was shocked and surprised to learn that my coach would have anything to do with even the appearance of this current accusations. I fired him as soon as I found this out. All legal options are on the table as I will not allow others to lie about me like this."

Gatlin's had twice tested positive for performance-enhancing drug in 2001. Amphetamines were detected in his system, the American was given a two-year ban late reduced to one year on appeal. Gatlin said the amphetamine came from attention deficit disorder medication that he's taken since a child. The U.S. athlete return the action and took Olympic gold in 100m, the 2004 Athens Games. But two years later, he was banned for a second time after testing positive for testosterone. His world record time was also wiped from the history book.

Gatlin, again returned to the sport, finishing second to Usain Bolt in the 2016 Olympics in Rio. And in August, the 35-year-old American got his revenge on Bolt to beat him to gold in the world championship hundred meter final.

She will retire and now she's coming back. Why is deja vu for the French tennis star his deciding to spring back into action as early as next year?


[02:51:05] RILEY: WORLD SPORT is back with a look ahead to the KIA Van (INAUDIBLE) 2018 golfing calendar, the Ryder Cup. The intensely competitive team competition up hits the best players from Europe and the United States against each other. Boyd by victory in the 2016 match at Hazeltine and resurgence in American men's golf in recent years. Many are predicting a U.S. win as the contest takes place in France for the first time. The golf writer and broadcaster Brian Katrek told our own Don Riddell, that it's easy set undone.


BRIAN KATREK, INDEPENDENT BROADCAST MEDIA PROFESSIONAL: They started to check some boxes but there's one box left unchecked to get you go all way back to the early 90s and Tom Watson at the Belfry as the captain. To find the last time the Americans beat the Europeans on European soil.

And I think that's a big box to check especially if the Europeans can figure out a way to remind the United States team that all of that time in between '93 and now, every one of those American teams was higher rank in the world golf rankings. They always had more major champions on it, they always looked better on paper and yet didn't win. So, if I'm Tom as be on upon the European tour, I'm finding a way to remind the Americans that they brought a lot of good looking busloads of players over that have gone home without the cup.

DON RIDDELL, CNN SPORTS ANCHOR: And time was be always been a part of many of various successful European teams. I think, we a pretty good idea of what the American team is going to look like. But what about the Euros? Who are their stars going to be this year?

KATREK: Well, they're going to have to get a lot out of the young stars. They're certainly going to ride John Rahm and (INAUDIBLE), John Rahm could be -- could be a world force by then, could certainly be a major champion by then, might be a multiple major champions by then. But he's going to have to be a leader on that team.

Plays on the PGA tour predominantly, so, he's going to have to -- he's going to get enough starts to make sure he's on that team. He's not necessarily going to have the personal relationships with the guys on the European team. He may want to be in closer with the guys in the American team.

But I think that could work in his favor because he's a good rival, you know, he's the guy that's driven by the competition. Tommy Fleetwood is showing that he's going to be a force it's be reckoned with also. Tommy Fleetwood was a factor at the U.S. Open, he won the race to Dubai just continues to win.

I don't know how much of a leader Tommy Fleetwood is going to be but for Thomas Bjorn, right now you have Rahm and Fleetwood (INAUDIBLE) to play every session.

And then you're hoping that Justin Rose can continue his good play and stays healthy because --

RIDDELL: He ended 2017 fantastic --

KATREK: Yes, he is probably the hottest player in the game right now and that's a guy that can be a leader for you. And between those three names, can Danny Willet find something? Can Henrik Stenson continue to play at high level? There are a lot of question marks on the European team right now.


RILEY: All right. Well, the comeback is on for a former Wimbledon champion on Tuesday. Marion Bartoli, says she's coming back to the tennis court. The former Wimbledon champion has set to return to the WTA Tour next year. Her first match will be in a couple months' time, in fact, that's in March at the Miami open. She previously quit the game, you remember, after her famous win at the All England Club that was back in 2013.

All right, some good news now, full of the American skater head of their Winter Olympics in just a few week time. The Olympic champion Mikaela Shiffrin was an action in front of the World Cup.

Early around the circuit, the U.S. star proved once again what a dominant force she is. The 22-year-old won the giant slalom in Portugal and France making it her third win since November. She adds to her debut downhill victory and also her slalom win already this turn.

John John Florence is one of the world's best-known surfers and celebrating his own unique piece of history. And the best part of all of this is he did it right in front of his home fans in Hawaii.

[02:55:02] The 25-year-old from Honolulu has clinched this year's World Surf League title at the Billabong Pipe Masters. This after his nearest challenger, the Brazilian Gabriel Medina was eliminated at the quarter-final stage. And in doing so, he now becomes the first male surfer since the late and the (INAUDIBLE) in the early 2000s to successfully defend a maiden world title.

All right, quick reminder to you to watch a special edition of our WORLD SPORT present series. This one is called "MORE THAN A GAME" and it follows our own Hines Ward as he returns to South Korea, the country where he was born and where his remarkable journey to NFL stardom began.


HINES WARD, FORMER WIDE RECEIVER, AMERICAN FOOTBALL: Leaving Monroe, Louisiana where you been at surrounded around all black people. Now, I'm moving to Forest Park, Georgia. A middle class, white kids, Hispanic kids, black kids, when I was basically the only (INAUDIBLE) keen in my whole community.

I'm trying to figure out and find a way to blend in was a struggle because, you know, I really didn't have an identity growing up as a child. A lot of times this is where it teasing, the bullying began in school. I remember right here pulling up, my mom dropping me off and I want her to stop hear because I saw a lot of my friends down there. I looked back and I walk, all my friends started laughing at my mom and when I looked back and closed the door, my mom was crying. And I was in third grade when that happened and my mom chewed me out like no other. She said, if you're ashamed to me, then go back and live with your dad. And no son wants to see their moms crying. So, anybody, who used to talk about my mom I would get into a fight. So, me being the one who was teased all the time affected my confidence, affected me --


RILEY: Yes, a must watch T.V. there. That's it from us. Thanks so much for watching, stay with CNN, the news is next.