wild down swings across asian stock markets as 2016 starts with some big losses, big enough to force a trading halt in china. >> diplomatic ties at the timered. saudi arabia's kicks someone out of country after fiery protests over the execution of a shiite cleric. >> republican candidates promise any new gun restrictions won't last long if they're elected. welcome to our viewers. i'm rosemary church. >> good to be back by you as we kick off a new year.

thanks for joining our two-hour block. i'm errol barnett. this is "cnn newsroom." and stocks in the asia pacific region have hd a brutal start to the year. in particular, the markets in china plummeted on the first trading day of 2016. look at those numbers. >> a live look at the region right now. trading on china's major exchanges has been halted. a circuit breaker kicked in when stocks tumbled. weak numbers from the manufacturing sector and uncertainties in the middle east are some of the reasons playing into this. >> we have paula hancock will more on how this is playing out. first let's go to matt rivers in beijing. trading has been suspended after the market fell nearly 7%. what's driving this selloff,

exactly? >> reporter: trading was susp d suspended around 1:30 local time. the reason why it was -- why trading was suspendsed are the so-called circuit breakers. they were put in place in china to try to curb some of the volatility we saw last year. the rules surrounding them would be that if the stock market falls 5%, trading is halted for 15 minutes. if it falls by 7%, trading is halted for the rest of the day. as for the reason behind today's sa sell offs, we spoke with several analysts after it happened, and the general feeling is it has to do with the manufacturing index. this is a survey that is sent out monthly to different purchasing sector asking them in

a more informal way how they think their companies are doing, and then depending on their answers aing a ra gaited, and that gives us the numbers. this is the last eight months that manufacturing was dropping in china. that according to some of the analysts we spoke to has spooked investors on this first day of the new year. >> and matt, you explained how the new market suspension rules work, but tell us why the decision was made to put them in place for the start of the new year. >> reporter: well, the circuit breakers are in place in other markets across the world. this is not something that's unique the china. these were put in place because of the wild volatility we saw in chinese markets during the summer months of 2015. we saw incredible changes on a day today basis, and that is not good for any stock market or

investors trying to make money in those markets, so these were installed as a way to try to curb the volatility to give investors a time when the kind of drops happen that we saw today to give investors time to regroup. >> in thanks to matt joining us live from beijing. >> now we want to cross over to paula hancock who is tracking this all from seoul, south korea, and paula, even though the numbers out of china are the lowest coming down almost 7%, it's not as bad elsewhere in the region, but there is a downward trend that we can see right now. talk to us just about what the picture looks like for the region. >> well, errol, it's not a good start for the sure. it's a very bad start for the likes of japan's nikkei, down

about 3% and also in hong kong, down about 2.5%. certainly not the severe falls that we're seeing in china, but they're being affected by this. bear in mind that all of these countries would do trade with china, so further proof of china's slowing economy is not going to be beneficial to any of these countries. that's spooking investors. not just china, there are other things being taken into account here. tensions in the middle east with ties severed between saudi arabia and iran. that's another issue that's going to play heavily on investor's minds. but consider the oil price. this is one thing that is going up today. we've seen oil stocks up about 2% at one point after having a very bad year in 2015. brent was down about 35% for the year. but we're seeing an up tick there, again, because of the tensions in the middle east. saudi arabia and iran are both major oil producers.

and the two having a dispute is pushing those prices higher. but, of course, that's that global oversupply of oil that concerned investors last year, it's not going away. this could well be short-lived. errol? >> all right. paula live in seoul, south korea for us. matt rivers in beijing on the downward trend in the region as trading is suspended in china after the 7% drop. thanks to you both. all right. an already troubled region now faces growing hostility between two fierce rivals. saudi arabia has cut diplomatic ties with iran after demonstrators stormed the saudi embassy in tehran over the weekend. they ransacked offices and started a fire. >> they were protesting saudi arabia's execution of a shiite cleric. you see him here. a saudi court convicted him of

inciting sectarian strife and breaking allegiance with the saudi ruler. the saudi foreign minister ordered -- allow iran to undermine our - security. we are determined not to let iran mobilize or create or establish terrorist cells in our country or in the countries of our allies. >> cnn producer joins us now on the phone from tehran, and many analysts are looking at this and saying the relationship between these two nations has been cold at best, but it hasn't been this bad in decades. tell us about the reaction to this political and social there in iran. >> the official reaction just came from the deputy foreign minister who said that saudi

arabia is trying to externalize its internal problems, the dissension between the country. this is the general view in iran, and he also attacks iran's domestic policy and foreign policy, but because of the upcoming election in tehran, parliamentary elections pretty soon, this is fast becoming a major issue between the hard liners who are all for people taking against saudi arabia and the reform-minded people in iran who are trying to calm things down and say that things should go through legal channels and the harsh rhetoric should stop. so it's keeping all the politicians very busy at the moment here. and at the same time,

organizations and clerics and certain other organizations are setting up memorial ceremonies for the man executed in saudi arabia, the shiite leader there. both the people of iran are fully aware of the intensity of the increasing danger of conflict between the two countries and calmer heads are trying to end things in a peaceful manner rather than going toward conflict. >> and just based on your expertise, your long experience there in the country, which side is likely to win out in response to this? the hard liners or those reformers who want to see a more judicial resolution to this crisis? which way is this likely to go in iran? >> there's no way to predict that, but the rhetoric coming from the hard liners is much

more -- much stronger than the rhetoric coming from the reformist side. and then as i said, the parliamentary election is going to be a major issue in this. the domestic politics is going to somehow take advantage of this situation for the benefit of the parliament, next parliament with their own candidates. on the whole, i would say that the hard liners are going to be much more vocal, but the government is reformist, so ultimately, the supreme leader rises will weigh in. he usually does it toward the end and then sets the policy. the indication so far has been that he's not for appeasing the saudis. he's going to most probably insist that national interest of iran should be paramount in any discussion or any agreement that

would be forthcoming. >> all right. our producer there in tehran talking to us over the phone as saudi arabia cuts ties with iran after the embassy attacks. there's not a uniform response. you have hard liners, much more vocal. we saw reaction of people burning flags and the like. not as negative as some of the reformers who want to see a more peaceful resolution. >> we'll see where it goes. we wanted to know how experts think this dispute could infold across the region. >> earlier we spoke with an analyst with the washington institute. >> what i'm looking for in the next 24 to 48 hours is to see whether any of saudi arabia's allies in the gulf countries, perhaps even further afield, like jordan, will follow saudi arabia in cutting off diplomatic

ties with tehran. if they do, the crisis worsens. the danger is that this is a crisis which can spiral out of control. >> how do you think that this might affect and impact the wars we're seeing right now in yemen and syria as the world has been desperately trying to find a diplomatic solution for these conflicts? >> it's a setback for anything like peace talks in syria or peace talks in yemen. there has been some progress in these talks, as was mentioned the saudis and the iranians are actually in the same room, certainly on the syrian talks. the yemeni talks are more complicated because the saudis regard the rebels in yemen as being iranian-inspired and supported. but with this degree of mistrust

and bad blood, there's every danger that even those peace talks will be swept to one side. >> as you can see, already the cleric executed was deeply respected in many parts of the shia world. >> and he was an outspoken critic to the saudi government. we take a closer look at his background. >> reporter: his fiery criticism was extremely rare. it was this type of political dissent that in part led to his execution on saturday. now, his death is sparking outrage across the region. he was a prominent religious leader from saudi arabia's oil rich eastern region, home to the

country's minority shia. in 2011, protests inspired by the arab spring erupted on the streets there. he was a vocal leader as thousands of saudis, shia demanded greater economic opportunity. he was arrested in 2012 seen her wounded in the back of a police car. the cleric's brother speaking to cnn last year, warned that tension would escalate if his execution order was signed. >> translator: this decision will have koconsequences that could be dangerous on a regional level. >> and we're seeing that. it could possibly get worse because this cleric wasn't the only member of his family on saudi arabia's death row. his nephew just 17 years old when he was arrested is still there awaiting an execution that could come at any moment.

john jensen, cnn. >> all right. we've got more coming up for you after the break. rescue efforts are underway in north eastern india after a powerful earthquake struck there early on monday. we'll bring you the latest on the death toll and damages. >> and barack obama is taking on gun control in his final year in office. we'll tell you how that's playing into the race for the next president. we live in a pick and choose world.

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information on a new big story. at least five people killed on a powerful 6.8 magnitude earthquake that struck north eastern india. it took place early on monday near the country's border with myanmar. 33 people are injured and several homes and government buildings are damaged, and rescue efforts are underway. a second less powerful tremor was recorded five hours later and aftershocks like that could produce damage.

pedram javaheri joins us. let's talk about the aftershocks. five people dead but that death toll is likely to rise. >> i think so. this could potentially be in excess of 100 people or maybe higher amounts. much of this region is vulnerable to quakes and damage, and we know in the past 100 years every five or so years we have at least a 6.0 or greater in magnitude. it's not unusual. it happened around 5:00 in the morning. earthquakes don't kill people, but buildings and structures do. at that time, most people are under structures. that's why it could be worse. one thing i want to note about the epicenter. a mountainous terrain. just to the east, home to 2.5 million people. the particular town here, population in the town itself 200,000. keep in mind, the census was last measured in 2001. so significantly higher.

you see densely populated region. vast majority of the damage could be over this region and also the fatalities would be large-scale across that region as well. showing you some of the numbers, 55 kilometers deep, 6.7 magnitude which is categorized as a strong quake. notice the 33%. usgs based on previous quakes, many of them across this region, are saying 100 to potentially 1,000 fatalities. and damage could be in excess of $100 million u.s. past events at this level have also required national or regional support. again, a serious situation across this region and we know with a 6.7, typically you would have at least one aftershock within the first couple days. thousands in the 2s.

it's going to be a very scary go for a lot of people. that's why a lot of people are now stepping outside to feel more comfortable. >> in a difficult area for rescuers? >> it is difficult to reach, exactly. very mountainous region. hem l himalayas are across this region. those plates are moving at the rates your fingernails are growing. they're constantly moving. >> we'll get an update ahead. >> a town in mexico is mourning the death of a mayor who was gunned down in the doorway of her home. >> the gunman killed her one day after she was sworn in. she was shot in front of her family on saturday. police killed two of her attackers and arrested three others including a minor. >> the gang accused of the killing has been involved in quite a bloody territorial war

in the neighboring state which is the most violent state in the country. so it could be come spillover violence, something to do with the proximity of the two states. who knows? very little has come out in terms of why she was targeted in particular. she wouldn't have been the first mayor to swear to clean up the town from organized crime, an i doubt she'll be the last, so killing her as a warning would seem like an old tactic in an old war. >> and the governor of the state has ordered a three-day period of mourning to honor her. barack obama is setting high hopes for his final year in office. he'll begin by addressing an issue that's plagued his presidency. the ongoing issue of gun violence. he's tried to initiate change before but congress hasn't worked with him on the efforts. >> as a result, mr. obama is due

to announce executive action on gun control in the coming days. the proposals are expected to include expanded background checks on gun sales. cnn political commentator joins me and he's a contributing editor for the atlantic media. peter, thanks for talking with us. what do you expect to come out of monday's meeting between the u.s. president and his attorney general when they tackle the issue of tougher gun restrictions? >> i think president obama clearly wants to try to do something to move more aggressively on gun control. ever since the shooting at sandy hook, he has made this one of his significant issues, something about which he is deeply passionate. and i think given that he's now entering his final year, he's less concerned about the conservative republican backlash because he's not on the ballot anymore, and he's more focussed

on his own legacy. >> so what is he likely to do? because we you said he may go as far as executive actions being put in place. that means without congressional approval, how is that likely to be received, and how far will he go? >> well, i don't know what specific measures they're going to take, but the pattern of executive action, because they can't get things through congress has been something you've seen the presidency do on immigration and climate change. it's been a pattern ever since the midterm elections in 2014 after which it became clear the republican congress was not going to approve almost any significant legislative initiative by the obama administration. so the real hurdle, really, now is the courts. to what degree do the courts allow the administration to do this? it's kind of ironic but not all that surprising that our president who came into office concerned about george w. bush's

use of executive authority is now using a lot of it himself. that's kind of typical for presidents. the republican backlash will be on the campaign trail, but there's not a whole lot they can do. the courts will decide if this is constitutional or not, and the republicans will be able to repeal it if they win the presidency this coming november. if they don't, they woentd. >> i mean, that's the interesting point here, isn't it? if you're talking about executive actions here, and donald trump has said himself that no matter what president obama does in terms of gun reform, he will wipe it out. so you're saying that that is perfectly possible, executive actions, even brought in to power here in this instance with president obama, that the next president, if it is a republican president, could wipe this out? >> i think it would be very likely, especially if we have a republican president, it's

likely republicans will control probably both houses of congress as well. overwhelming sentiment to repeal the efforts. so barack obama is doing this in the hopes that he can create some facts on the ground, and he said that he believes hillary clinton being elected or some democrat is key to cementing his issues. if there's not a democratic president, important parts of his legacy will be wiped away. >> we'll be watching closely. always a pleasure to speak with you. many thanks. >> thank you. >> and join cnn for a special look at guns in america with u.s. president, barack obama, anderson cooper hosts a town hall event. >> you can see friday at 9:00 a.m. in london, only here on cnn. the deepening anger across

the middle east coming up. a look at the regional implications of the execution of a shiite cleric. >> plus traps, bombs and tunnels. we'll have an exclusive look at what isis left behind in the city of ramadi. back in a moment.

and a warm welcome back to our viewers here in the united states and all around the world. i'm rosemary church. >> and i'm errol barnett. let's update you on the top stories right now. we want to get you to the asia pacific region where stocks are off to a rocky start. china halted trading for the day in two of its major markets

after stocks plummeted by nearly 7%. you see all of these indices in negative territory. tokyo is down more than 3%. hong kong down more than 2 .5%. we'll keep tracking this in the hours ahead. rescue efforts underway in india where a 6.7 earthquake struck early monday. indian officials say at least five people have been killed and 33 are injured. several homes and government buildings are damaged. >> cnn will host an exclusive town hall on guns in the u.s. on thursday with the president. the event comes as mr. obama is due to announce a new executive action directed at expanding background checks on gun sales. he's expected to make his biggest gun control pitch yet to the american public. >> saudi arabia is severing ties with iran and ordering iranian diplomats to leave the country within 48 hours. the comes after iranian

demonstrators stormed in tehran to protest the execution of a cleric. have been rivals for years.rchy- >> but observers say this escalation is especially worry somegiven the existing conflicts throughout the region. becky anderson has more on that. >> reporter: a measure of the furry that erupted in parts of the middle east after the execution of al nimr. he also condemned the killing of the shiite cleric saying it violated human rights and islamic values. and labeled it another example of, quote, sectarian policies that he said are destabilizing the region. it's a view echoed by shiite

leaders in iraq, lebanon and other parts of the middle east. >> i fear that the execution of al nimr would poor gasoline on other places and in saudi arabia itself. >> reporter: shiites who pro tested the killing, even the saudi arabia's shiite minority proteed. a rare act. >> the execution of him could have major repercussions on political and social stability in the kingdom itself. it will polarize relations between the dominant sunni community and the shiite community. a community that feels marginalized and feels that basically it's not fully

integrated into saudi arabia. >> sunni led gulf states like the eua and bahrain for quick to come out. already racked by rumors of a powerful struggle at the top. the wider region is started the new year with a collapsing cease fire in an already devastated ye yemen. and the prospect of a long road ahead to any peace in saudi arabia. the tensions has the potential to impact so many key issues in this region. so the execution that ended the life of one man could affect the lives of many others in the weeks to come. becky anderson, cnn, aub dau by. isis has released a new propaganda video threatening the united kingdom. it showed a masked english speaking militant along with five men in orange jump suits. isis claims they are uk spies. >> at one point the militant

points a gun at the camera and threatens the prime minister and the uk. the accused men are later shown being shot to death. now in iraq, there's much more work to do after the brutal and prolonged fight for ramadi. >> iraqi troops are combing through the newly liberated city carefully avoiding booby traps and bombs isis left behind. we are there and filed an exclusive report. >> reporter: ramadi, after months of isis rule, this is what remains. isis's occupation of the city leaving its mark both above and below ground. these are the houses that the militants were hiding inside of. you can see what they were doing is they were digging up tunnels so they were able to move from house to house without being seen by the coalition planes. and so that this wasn't spotted from the air, they were hiding

the dirt they were digging up and keeping it inside the houses themselves. if you come through here, we can show you one of the tunnels leading through. some of these tunnels, we're told, went as far as a kilometer. we're going to look inside. it's not that wide, but it does give you a sense of them moving in the dark under the ground, out of sight. ramadi fell to isis in may of last year. since then they've been battling to regain their territory and their morale. the head of iraq's counterterror force says this should be celebrated around the world. >> defeating isis impacted upon isis plans and its existence causing weakness and desperation. the road is mosul is now open and clear. >> reporter: blindfolded and

bound, captured isis fighters face the war. they were attempting to blend in to what remains of the local population. a reminder isis fighters could be hiding in plain sight. even as the road to mosul is in the iraqi armed forces' sight, a week after counterforces battle the remaining militants in the city. >> reporter: we're hearing pops of gunfire across the other side of the river. the fighting is ongoing. the cleanup operation is still going on, and that's why the helicopters circling over head. in spite of the threat of ied and roadside brombs, the troops continue the push. a possible death around every

corner. everyone here knows so much is at stake in this claimed liberation, and not just for iraq. >> translator: this is a victory for humanity because isis is against iraq and against all of humanity. >> reporter: it is also finally some palpable momentum in the battle. and on tuesday, we will have more of the exclusive reporting from ramadi. we'll hear from civilians who were caught up in the fighting, used as human shield and now face more danger. >> reporter: this is what remains of ramadi. this is what remains of people's lives, of people's homes. absolute desolation. and even as the operation to push back those remaining isis militants within this city continues, they're also attempting to rescue the hundreds of families trapped at the other side of the river here in ramadi, trapped within areas

where isis militants still exert control. >> and you saw a mother with her child there. for many of the families, it's just a struggle for simple survival and at present, there's no end in sight. we'll bring you more on that tomorrow right here on cnn. an exhaustive man hunt is going on for this man. if we bring out the picture, after a deadly shooting rampage in tel aviv on friday. what the family is urging him to do. effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from a dry mouth.

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now i can download my dvr recordings and take them anywhere. ready or not, here i come! (whispers) now hide-and-seek time can also be catch-up-on-my-shows time. here i come! can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv. >> israeli police are looking for this man who they say is armed and dangerous after a deadly shooting in tel aviv. >> he's accused of using an automatic weapon to kill two people and wound eight. the suspect's family says he has a mental disorder and they want him to turn himself in. let's get the latest on these

and bring in ian lee. you had an opportunity to speak with the suspect's uncle. what all did he tell you about this man? >> well, rosemary, they told me about a man who is very disturbed. they say that he's been stuff suffering from depression. back in 2007 when he was arrested and served five years for trying to steal a gun from a soldier, that he was again diagnosed with the psychological disorder and put on medication. the family is concerned that she is not on his medication, and that he -- they're urging him to turn himself in. their fear right now is that he would be killed either in a police operation or he might kill himself. but the police right now, their main goal going into day number three of this man hunt is to find him and neutralize him, one way or another. the fear is he could be planning

another attack or carry out another attack. school districts in tel aviv right now are reporting that -- we're hearing a lot of the families are keeping their chn h home from school. they've beefed up security there as well. but really, he could be anywhere in israel, and this man hunt is continuing. >> this is the big worry, isn't it? so, ian, where do authorities, and this man's family think he might be hiding? who do they think, perhaps, is helping him, or do they really feel he's working alone here? >> reporter: well, it is quite an odd case. the fact that he can disappear like this for over three days. israel is a country can heavy security. when he fled the scene, they would be able to follow him fairly close cly. it appears he may have had some help in this, although the police around saying either way.

there's also an investigation that another person may have been killed less than half an hour after this shooting. there was a person killed in the tel aviv area, a taxi driver was found here a hotel. they're investigating if that is related. maybe that could offer some clues. but really, they're going door to door, street by street, looking for this person which makes it seem like he really could be anywhere at this time. >> all right. keeping us up to date on this man hunt, ian lee joining us live from jerusalem. many thanks to you. a group of armed protesters have taken over a building at a federal wildlife refuge in oregon. >> they say they're taking a stand against the way the federal government has used the land and abused their rights. >> reporter: these are members who consider themselves patriots and constitutionalists looking

out for the rights of landowners and rangers. but then you hear from law enforcement and civilians who disagree. they say they're seizing an opportunity to further what is a misguided cause. they're armed and staying put. a group of protesters broke into a building at an oregon federal reserve friday. they seem to be taking a stand against the government use of the stand. it broke off from a peaceful rally to support a father son ranching. they were conflicted of arson, setting at least 130 acres of federal land on fire. the hammonds maintained it was a controlled blaze that accidentally got out of hand. prosecutors, however, argue the flames were meant to cover up poaching. >> it's sort of frightening when there's people making threats and people touting guns.

>> people are afraid. >> reporter: among the armed protesters, a son of a rancher who was at a stand off with the government last year. >> this is a time to stand up. >> the son called on others to demand the government restore, coat, the people's constitutional rights. part of a vague anti-governme anti-governmental message. >> reporter: the hammonds are distances hemss from this latest face off. their attorney communicating in a short but clear statement says that no one within this organization speak for the hammond family. those are protesters who say their demonstration is peaceful but if provoked, they will defend themselves.

>> a law enforcement watching this evolving situation very closely. the fbi responsible for investigating it as that refuge facility is a federal building. cnn, new york. >> all right. we'll change themes after the break. i'm not a parent yet. rosemary, i would say is a professional parent. so we'll talk about this. prince william speaking about fatherhood and how he's now a different man because of it. that's coming up next when cnn news room turns.

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downton abbey kicked off its sixth and final season in the u.s. sunday night. we have yet to see one episode of this program, but it gives you a look at the english air stock ra si. the creator sat down with cnn to talk about the show's success and its finale. >> in truth, we were originally planning to end on the fifth series. and then when we started to get nearer to that, it just felt as if we had too much to do. we needed a whole series that

was about resolution. and so we decided to do six, so it's not as if we're cutting ourselves short. we actually thought we would end a year earlier, because, you know, it's good to leave a party when the people are still sorry that you go, and not wait until everyone is incredibly relieved. and we just felt we'd sort of completed the journey, really. i mean, of course people are you sad? of course i'm a bit sad. it's been an extraordinary adventure on my career. very unlikely to be topped n and i consider myself lucky to have one of these world sensation cinemas, but nevertheless, everything must come to an end. >> yes. it should. and the final season of downton abbey has already aired in britain. a new documentary by britain's itv gives a look at the life of prince clarls. it's called when aunt and deck met the prince. 40 years of prince's trust, and

it focuses on prince after wales's life and charity he founded. >> they also spoke with prince william who talked about how becoming a father has changed him. >> has fatherhood changed you now that you have two children? >> i'm a lot more emotional than i used to be. weirdly. i never used to kind of get too wound up or worried about things, but now, the smallest things, you well up a little bit more. and you get affected by the sort of things that happen around the world or whatever a lot more, i think as a father, just because you realize how precious life is, and it puts it in perspective. the idea of not being able to see things. >> and you may know the duke of cam bridge is father to a son and daughter. what do you think?

does a parent make you that much more emotional? >> i noticed it as soon as i had my first child. i found the news was much more difficult. i think it's because you're invested in the future. and you feel it more. you really do. so he's right. no you do get more emotional. >> the pressures of parenthood. he's roughly my age, so i look at him thinking am i supposed to have this responsibility? i'll wait for the moment. >> thanks for watching. i'm rosemary church. >> and i'm errol barnett. live reports from iraq, south korea, and jerusalem in the next hour. stay with us. we live in a pick and choose world.

choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season.

sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store, find the lowest prices of the season. save $600 on the #1 rated i8 bed, plus no interest until january 2018. know better sleep with sleep number.

that's why i switched from u-verse to xfinity. now i can download my dvr recordings and take them anywhere. ready or not, here i come! (whispers) now hide-and-seek time can also be catch-up-on-my-shows time. here i come!

can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv. rising tensions, iran slams saudi arabia after the saudi kingdom cuts diplomatic ties with the regional rival. >> the battle for ramadi leaves a trail of destruction. >> plus armed protesters take over a federal government building in oregon. we'll tell you what they're demanding. >> a big welcome to our viewers in the states and to those of you around the world. i'm errol barnett. >> and i'm rosemary church. thanks for joining us. this is "cnn newsroom."

we'll have those stories in just a moment. but we begin with a developing story that could affect your finances. 2016 is off to a pretty rough start for asian pacific stocks. china halted trading on two of its major exchanges. it happened as stocks plummeted almost 7%. >> you'll get a live look at the numbers here. shanghai closed down 6.8% for the day. and if you look at how the market performed over the past few trading sessions, you really get a sense just how abrupt this final selloff was. coming up, we'll have much more on the asian markets and what this may mean for stocks globally. >> all right. let's turn to another story. there are growing concerns that the weekend's turmoil between iran and saudi arabia could create greater regional instability. saudi arabia ordered iranian diplomats out of the country within 48 hours.

>> this move came after iranian demonstrators stormed and rack sacked offices and pl. they were protesting the execution of a cleric. >> we are determined not to allow iran to undermine our security. we are determined not to let iran mobilize or create or establish terrorist cells in our country or in the countries of our allies. >> and some more background on al in a here. he was an outspoken cleric. saudi authorities arrested him several times. the 56-year-old repeatedly

called for the cessation of the oil rich part of the middle east. he urged his followers to use peaceful demonstration and civil disobedience. iran's foreign minister. our cnn producer joining us from tra tehran from an update. what are iranian officials saying about this? >> reporter: the foreign ministry spokesman today said that saudi arabia is trying to externalize the internal problems and it also said that policy and survival of the saudi regime and the very existence of the saudi regime seems to be in

continuing the policy of friction in the region. again, he said that this is in order to take tension away from the internal problems. iran also said that it has gone along with the international convention for protection of the embassies in iran, and he said that iran did try its best, but things got out of hand, and he said that the saudi arabia is using this as an excuse to continue its policies of tension in the region and particularly with iran. this is being echoed by several other politicians in iran, and the iranian people. on the street they also seem to think saudi arabia has gone too far. the iranians have been complaining about iran's policy toward saudi arabia which they

consider to be too soft and not hard enough, not constructive enough. >> all right. our cnn producer there from tehran in iran. many thanks to you. there could be so many implications to all of this. we want to bring in our international diplomatic editor live from london to provide some perspective on this. nick, iran and saudi arabia engaged, essentially in several proxy wars already, supporting opposing sides in syria. in yemen, and in iran. what does this escalation mean for stability in the middle east overall? >> reporter: well, it certainly escalating the tensions between the two countries severing diplomatic ties won't aid bringing peace to syria and will not aid getting a peace agreement in yemen to end the fighting there. we saw the cease fire in yemen collapse over the weekend as

well. and probably as a sort of factor or direct result of this escalation of tension. if you're looking at trying to see how this will play out over the coming months, it will make those conflicts harder to resolve, because both saudi arabia and iran play a hand and a role in both of those countries. the -- for rebel groups. they support inside syria to help overthrow them. peace talks that were due to happen in geneva later this month, and peace talks in switzerland over yemen, really the way forward will be much more clouded by this issue. can these current tensions be deescalated through diplomacy? it's possible, but in the face

of it coming into the new year, what this reflects is a tougher and stronger position by the saudi leadership toward iran and toward the people in the region they consider their enemies at this time. >> now, with these nations severing diplomatic ties, wyou wonder if that's as bad as it will get. iran worked out a nuclear deal with the u.s. you wonder if all out war is likely or if the slight escalation of existing conflicts is the worst case scenario. what are you thoughts on that? >> when y >> reporter: when you have a situation where the execution is somebody that saudi arabia considers a terrorist, they considered him inspiring people to violence, despite the fact that iranians consider the saudis here as trying to, if you will, crush the shia voice

inside saudi arabia. when you have an incident like this that goes from an execution to the targeting and burning of embassies, the saudis accuse the iranian leadership or significant voices within iran as sort of in helping instigate or create the atmosphere that allowed for the embassies to be burned. when you see an escalation in tensions, it's indicative that any other misunderstanding can escalate further. when you look at saudi arabia and yemen, we won't see a change in scale and scope because of this, but it speaks to underlying tension and a view that's being seen in how to deal with the regional problems that saudi arabia is becoming sort of a dominant political military

power inside the middle east and inside the gulf region. so i think these are the dynamics that we're seeing. so essentially, sparks can set a bigger fire. and it's not clear if that will happen right now. but certainly it is possible, misunderstandings can lead to that. >> that's right. our editor, nick robertson live for us with news on the sunni powers now cutting diplomatic ties. you can find out more on these tensions between iran and saudi arabia whether they might boil over across the region on our website. many of the stories we're showing you are posted there. the address, cnn.com. we want to turn to iraq where government forces say they now control ramadi. >> there are also still pockets of isis fighters there in the city. and the bombs and booby traps that isis left behind are making iraq's fight more challenging. >> and cnn is in baghdad.

we're joined. the cleanup operation is not over yet, but how long will it likely take up to remove these pockets of isis resistance in ramadi? >> reporter: well, it is so dangerous. it has to be so painstaking, and that really is what's slowing the retaking of the remaining areas where isis continuing to exert control, but it is enough in terms of that control of the central government district for iraq to have jubilantly declared it liberated. the iraq's counterterror services gave us this look. have a look. ramadi, after months of isis rule, this is what remains. isis's operation of the city leaving its mark both above and

below ground. these are the houses that the militants were hiding inside of. you can see what they were doing is they were digging up tunnels so they were able to move from house to house without being seen by the coalition planes. and so that this wasn't spotted from the air, they were hiding the dirt that they were digging up and keeping it inside the houses themselves. if you can come through here, we can show you one of the tunnels leading through. some of these tunnels, we're told, went as far as a kilometer. we're going to go have a look inside. it's not that wide, but it does give you a sense thof them movi in the dark under the ground, out of sight. ramadi fell to isis in may of last year. since then iraqi forces have been battling to reclaim it. the head of iraq's counterterror force told us the liberation of

ramadi should be celebrated around the world. >> translator: defeating isis in this victory has impacted upon isis plans and its existence causing weakness and debt precipitation. the road is mosul is now open and clear. >> blindfolded an bound, they face the war. they were attempting to blend into what remains of the local population. a reminder isis fighters could be hiding in plain sight. even as the road to mosul is in the iraqi armed forces's sites, a week on from the liberation, and counterterror forces battle to purge the city of the remaining militant's presence. we're hearing some pops of gunfire. they're a little further across the other side of the river. the fighting is ongoing. the cleanup operation is still going on, and that's why the

helicopters circling overhead. in spite of the threat of ied and roadside bombs, the troops continue their painstaking push. under every inch of recon territory, a possible dead. everyone here knows so much is at stake in this claimed liberation, and not just for iraq. >> translator: this victory is a victory for humanity, because isis is against iraq, and against all of humanity. >> reporter: it is also finally some palpable momentum in the battle. what further complicates this, rosemary, is that even as those fights are raging, there are hundreds of families inside the areas that isis still has a presence in, and the forces you saw on the ground are working to extract those families with as little risk and as possible. but as you saw there, for much

of the iraqi top brass, this is now all about the road to mosul on ward from there possibly to fallujah, and in the words of the iraqi prime minister, so iraq of isis presence in the year. they all seem to believe the morale is there, and it's what they're aiming more. >> mosul is the big challenge here. reporting live in bag gahdad. on tuesday we'll have more of her exclusive reporting from ramadi. we'll hear from civilians who were caught up in the fighting, used as human shields and now face more problems. >> what does this group want from the federal government? we'll explore that after the break. >> plus a brutal day for asia pacific stock markets. we're live from seoul, after the break. i am about to embark on a long and dangerous journey.

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monday was the first trading day of the year for asia, and

basically the region had to pull the emergency brake. china halted trading on two major exchanges. the result of so-called circuit breakers set to suspend trade after losses. the shanghai index fell by nearly 5%. when it resumed to another drop of 2%, the market shut down for the day. paula hancock joins us from a view from seoul, south korea. there's red in the entire region. we're not sure what to make of this. the shanghai composite ended up significantly for the year. what caused this false start, if you can call it that, to 2016? >> reporter: well, errol, it was a bad start of the year for all the markets, and in particular, the chinese markets. the reason, according to many analysts is weak manufacturing

data. now, this was a private survey that was carried out today, and it basically showed that manufacturing was slowing for the 7th out of 8 consecutive months. no not good news in that respect. another sign the chinese economy is slow and that's going to spook investors in some other markets as well as all these countries have significant trading deals with china. so that's really what was expected to be the impetus today. but the fact is there has been tremendous volatility in the chinese markets throughout 2015. in the summer we saw that tremendous loss on many of these markets. as you say, surprisingly, the shanghai composite is up, about 9.5%, which most of the main indices can't boast. that was quite significant. the fact is this volatility remains in the chinese markets.

that trigger mechanism was supposed to try and curb this volatility. as you say, when it hit 5%, a loss or a gain, 15 minutes' suspension comes into play to cool things down. when it hits 7%, the market closes. the question now is what will happen when the market reopens tomorrow. >> on that question, we see that in hong kong and tokyo, these indices down roughly 3 %. is a bounceback likely tomorrow? in china, the trading volume was quite low. >> that's one thing to consider, the thin volumes. this has the first day of the year. many investors may be coming back from holidays. so some of these movements might be extreme, might be exaggerated because of that thin volume. so, of course, it's possible that there could be a

bounceback. you can't predict these things, but the other factors playing into the markets, of course, is middle east tensions. the ties between saudi arabia and iran being severed is certainly spooking investors as well. >> paula live for us in seoul, south korea on all the red in the region's markets today. thanks very much. armed anti-government protesters are still holed up in the head quarters of a federal u.s. refuge in oregon. >> the local sheriff says the group is a militia that wants to overthrow the government. but the protesters say they taking a stand on how the federal government uses and controls land. >> reporter: these are members who consider themselves patriots and constitutionalists looking out for the rights of landown s landowners. then you hear from law

enforcement and others who disagree. they say they're seizing the opportunity to forward a misguided cause. a group of protesters broke into an unoccupied building. they claim to be taking a stand in use of the land. the armed occupation broke off from a peaceful rally to support dwight and steven hammond. they're expected to report to prison monday. >> it isn't my decision. it's a sentence. >> reporter: they were convicted of arson setting federal land on fire. the hammonds maintained it was a controlled blaze that accidentally got out of hand. prosecutors argue the flames were meant to cover up poaching. ? >> it's sort of frightening when there's people making threats and people touting guns. >> people are afraid. >> reporter: among the armed protesters, the son of a rancher who was at the center of a

similar standoff last year over grazing fees. >> this is a time to stand up. >> the younger son called on others to descend and demand the government restore the people's constitutional right, part of a vague and vocal anti-government message. >> the people have been abused long enough, really. their lands and their resources have been taken from them to the point where it's putting them literally in poverty. >> reporter: the hammonds, however, are distances themselves from this latest face off. their attorney communicating in a short clear statement to the county sheriff's office says no one within this group or organization speak for the hammond family. those aren't protesters, who say their demonstration is peaceful, but if provoked, they'll defend themselves. law enforcement watching this evolving situation closely. the fbi responsible for investigating it as that refuge

facility is a federal building. cnn, new york. we want to show you some flooding along the mississippi river. it is slowly moving downstream. take a look at these pictures. flood waters in cairo, illinois are peaking at 56 feet. that's roughly 17 meters and they'll stay there for several days. >> flooding is expected from the arkansas and ohio rivers and some trip ybutaries. >> as you might imagine, that flood threat may be moving slowly but there's no stopping it. >> let's turn to pedram javaheri joining us with the latest. how bad is this likely to get? >> it's going to go downstream for a few days. this is going to be a long term event. we know the water levels in spots are dropping. take a look across the mississippi river valley, down the mississippi, the water wants

to end up in the gulf of mexico. 15 states reporting flooding across this region. we know the rainfall has been shut off in recent days. unfortunately the forecast in the next week brings light rainfall to the south where the waters will peak. heavier rainfall possible toward the tail end of the forecast and a long term event. i looked into how much water was moving past some of the gauges. in st. louis, the peak of this event, about 7 million gallons of water moving every single second down the mississippi river. that's equivalent to taking a baseball stadium, filling the stadium up with water in about 75 to 80 seconds with the amount of water moving past the city every single second. an incredible volume of water working downstream. speaking of water, good news for other parts of the united states, main by the west coast. forecast modelling doing a wonderful job painting the picture of tremendous moisture up and down the state of

california, higher elevations could be up to 18 inches by the end of the week. maybe 24 inches possible. the ski resorts, 70 to 85 inches on the ground across this region. i want to show you what's happening on the other side of the world. speaking of snow, we have a big storm developing across portions of turkey. this is in istanbul. flights cancelled. people oftentimes are surprised to think about this region, because take a look at the perspective on this. when you bring in turkey, i want to show you areas of the mediterranean and the middle east. we have turkey right above that, and the black sea. people often surprised to see the amount of snow in this region. across the black sea, pretty warm water. you have cold air coming over this. what we call sea effect snow. you see this in the united states as lake effect snow. the energy transfer from the

cold air over the warm body of water. you can bring down incredible amounts of snow. it happened in istanbul. some areas saw almost 100 centimeters of snowfall across this area of region. certainly not unusual to see heavy snow right here. >> and now we know how it works. thank you very much, pedram. >> barack obama is taking on gun control. coming up,

a warm welcome back to our viewers in the u.s. and those of you watching around the world. it's your last half hour with us. i'm errol barnett. >> and i'm rosemary church. this is "cnn newsroom." we want to check the headlines for you this hour. iranian diplomats are under orders to leave saudi arabia within 48 hours. the country is severing diplomatic ties with iran after an attack on the saudi embassy in tehran. the embassy demonstration was in protest of saudi arabia's execution of a cleric, al neem ra on saturday. >> asia pacific stocks are beginning in deep territory. china halted trading for the first day in two of the major markets after stocks plummeted by almost 7%. the shanghai composite, the markets down roughly 3%. >> markets in europe are opening. and the asian selloff is having an impact. all the arrows heading south and

similar losses there. you see the german market lost more than 3%, and a larger than 2% loss for both the london ffse and the markets in paris. and six killed and 4 3 jilljil injured in an earthquake in india. barack obama is due to announce executive action on gun control in the next few days. >> even before he makes the official announcement, it's already a major issue in the campaign for the white house. chris freights as the details. >> a few months ago i directed my team to look into any new actions i can take to help reduce gun violence. i'll meet to discuss the options because i get too many letters from parents and teachers and kids to sit around and do

nothing. >> reporter: sources say president obama is expected to announce new executive action soon aimed at closing a gun sale loopho loophole. they have pushed to tighten regulations on lost and stolen guns. and they want to report passengers on the no fly from buying guns. before the president has announced the details of the actions, the republicans running to replace him were competing on who would undo them faster. >> he's going to sign another executive order having to do with the second amendment and guns? i will veto that. i will unsign that so fast. so fast. >> all these executive orders he's going to come out that will undermine the second amendment rights on my first day in office, they're gone. >> reporter: and jeb bush argued there was no need to expand it.

>> the gun loophole doesn't exist. people that want to sell random, occasionally sell guns ought to have the right to do so without being impaired by the federal government. >> reporter: democrats have applauded obama's efforts. on sunday, bernie sanders, endorsed increased background checks. >> i think most gun owners in this country understand that people who should not own guns should not be able to buy them. and we do need to expand the instant background check. i don't think that's an onerous burden own anybody. >> reporter: measuring american's attitudes on gun control seems to depend on how you ask the question. in a poll a majority said they don't support stricter gun control laws ar the president's handling of guns, but in another, an overwhelming majority, 89% said they support background checks for all gun

buyers. cnn, washington. >> join cnn for a special look at guns in america with the president. anderson cooper hosts an exclusive one-hour town hall event. you can see it friday at 9:00 a.m. hong kong time. >> isis released a new video threatening the united kingdom. it showed a masked english speaking militant and five men in orange jump suits accused of spying for the uk. >> at one point the militant aims a gun at the camera and speaks directly to david cameron. the five men are later killed. >> the militant threatens to punish the uk for its role in the campaign against isis in syria. for more on this, we're joined live in london this morning. erin, these videos are typical of the type of style of propaganda isis has been using. how is this newest video similar and different than what we've seen before? >> reporter: well, this latest

piece of isis prop began ga da, perhaps notable for who's missing. muhammad emwazi, jihad john. he was killed in a u.s. air strike back in november, but in his place, another masked militant with an apparent british accent, instead of waving a knife, this militant is waving a gun, making very similar threats to what we've heard in isis videos past. focusing on threats to the prime minister, as well as to the united kingdom. now, also featured in this video, the grizzly executions of five individuals accused of being spies for british security services there shot in the back of the head in the video, and then toward the end of the video, briefly shows a little

boy also speaking with an apparent british accent making further threats against the west. sadly, it is not unusual to see isis using children to further its propaganda agenda. errol. >> all right. erin live for us in london this morning. >> we want to return now to the increased tension between saudi arabia and iran. we are joined by simon may bond of lancaster university in england. thank you for talking with us. i want to start, of course, we are learning that saudi arabia is severing diplomatic ties with iran. the big question has to be how bad will these tensions likely get between iran and saudi arabia? >> well, i think that is the million dollar question. how bad will things get before calmer heads prevail, let's say, and i think that the real concern has to be for the people affected by the proxy conflicts

between the two states. we're talking about what's happening in syria. we're talking about what's happening in yemen, and i think that the people of both syria and yemen will be incredibly badly hit because of these proxy complex, and the lack of desire to take steps toward reducing the tensions between the two states. >> now, let's go back to the trigger of this, because it was, of course, the execution of the cleric from iran. saudi arabia and authorities would have been more than aware that this was going to be a provocative act and that this was going to likely end in some protests or worse, perhaps. why would saudi arabia have taken this action at this particular time, do you think? >> i think you're right in that they would have been aware of what would happen if they were to go ahead and execution al

nimr, and i think we have to look at it from a number of different angles. first we have to think about the desired audience of this act. is it that the act was taken to send a message of the domestic audience in we know that saudi arabia has a number of domestic issues. we have rising unemployment. we have issues with regard to the price of oil, the economic challenges that that brings to saudi. we've got concerns at a more regional level about the growing influence of iran, the interactability of conflicts in syria and yemen, and maybe a more international level. the idea that saudis are concerned about iran being welcomed back into the international community following the nuclear agreement. so i think there are a number of different reasons, and what this message is trying to say is that the outside is still in control, and it's sending a message to a number of different audiences.

>> tl >> interesting details there. saudi arabia severing diplomatic ties with iran. what's the likely next reaction, do you think, from iran? >> yeah. well, we saw, interestingly, a number of contrasting messaging coming out of iran over the past couple of days. we saw a state news agencies and the supreme leader having a hard line response, calling -- suggesting there would be a divine retribution for what's happened. but then we also saw condemning of the protesters who stormed the embassy in tehran. there was a bit of a mixed message. i think there was some calm heads inbetween all of this war of words. so i think iran's got a really serious challenge on its hands to keep things calm, but also to appease its own domestic audiences as well. many of whom who are concerned with problems with the west, but

also concerned about what's happening in saudi arabia. >> we'll watch this very carefully. simon, mr. thanks for joining us and sharing your analysis with us. we appreciate it. >> thank you. >> israeli police are still searching for the suspect in a deadly shooting rampage in tel aviv on friday. what the suspect's family is calling for him to do, next.

>> israeli police are looking for this man who they say is armed and dangerous after a deadly shooting in tel aviv. >> he's accused of using an automatic weapon to kill two people and wound 8 outside a bar on friday. the suspect's family says he has a mejtntal disorder and they wa him to turn himself in. >> we want to bring in ian lee in jerusalem. we know you had an opportunity to speak to the suspect's uncle. what did he say to you? >> reporter: well, rosemary, the described person who was

disturbed, they said he's been depressed, he had a difficult time holding down a job, that he was supposed to be on medication. that was stemming from back in 2007 when he tried to steal a gun from a soldier. he was sentenced to five years in prison. around that time is when he was put on medication for a psychological disorder. the family is afraid that he is not taking his medication right now. they're urging him to turn himself in. it's important to note the family was the first people to tip off authorities that they believed their son, the father, was the one that called police. his son was the one that committed this act, but they're afraid that in this man hunt that he will be killed. now, for the police, this man hunt is still very much their number one priority. they have over 1,000 extra police officers in the tel aviv area searching the northern part.

they're looking at abandoned buildings, swat teams are looking for him right now. their main objective is to neutralize him. they want to take him off the streets. and today in tel aviv, yesterday, rather we saw school districts had low numbers. today, it's around 8 0% of students in school. parents a bit nervous about sending their kids to school while this man is on the loose. talking to the police, they say they've stepped unsecurities at school. they're urging people to call in if they see something suspicious. we're hear the number of calls has increased by 1,000%. very much the community as well as the police want this person captured or killed. >> indeed. it is a great concern for the community there. ian lee joining us live from jerusalem. we have lighter topics for

you after the break. the author of the novels adapted for game of thrones tells fans on his blog he has a message for them. they won't like it. see what it is, next.

all right. if you're a fan of game of thrones, surely you didn't see this plot twist coming. the next book in the series isn't finished. >> on saturday, the author revealed in a blog post he hasn't finished the next novel entitled the winds of winter, and is having difficulty finishing it, blaming the stress of a looming deadline, but the show must go on. the sixth schedule is scheduled to begin airing in april, and now most likely before the book is published. >> the senior editor of in touch weekly joins us a talk about some of the entertainment headlines. happy new year. >> happy new year. >> that's why you're in new york. i watched the peach drop. >> you guys had fantastic coverage on cnn. >> very true.

but let's talk about what some celebrities were up to for new years. chris brown was in vegas, for example. unfortunately a woman there accused him of battery. brown is saying it's not true, but what happened? >> exactly. police are investigating chris brown for alleged assault and theft. the woman is accusing chris brown of aassaulting her and taking her phone after trying to take a picture. chris brown put out a post saying happy new year. he also says he's going to make a lot of money from suing the crazy individuals who keep lying about him. it sounds like he's denying this as well in a cryptic way. >> and his record here in the states is having an impact on his career. some of his tours have been cancelled because of that. we'll see what happens there. because we're at the beginning of a new year, award season is heating up. what can we expect at the goaden

globes next weekend and from the host, ricky jervais. >> this is an interesting award season where you don't have one standout film. there are a few getting a lot of buzz. "spotlight" is one. also "the big short". these would be the two winners. they do best comedy and musical and another one for drama. everything could change, of course, if star wars goes into the oscars. i think this is what everyone is waiting for. the host of the golden globes put out a tweet apologizing for being insulting and druk on stag -- drunk on stage. >> you mentioned star wars.

last year we talked about it going to $1 billion in 12 days. sit worthy of an academy award? >> right now it's up to $1.5 billion. it hasn't opened in china. expect it to be out of the box. it's already beat titanic leer. it's on its way, probably beating avatar. it's gotten 94 % positive reviews on rotten tomatoes. people love this. people saying this could get an oscar nomination which would mean everything else gets thrown out the window. if they get a nomination, i think it's on track to win. we'll talk about the other movies, but star wars certainly would be number one, and it's great for ratings. i think a lot of people would love to see this get nominated.

>> i heard nothing but good things from people who saw it. great to see you. thanks for joining us from new york. >> thanks so much. >> i loved it. thanks for watching cnn. >> i went good to be back with . remember, you can always connect with us on twitter any time. i'm errol barnett. you see our handles there. early start is next for those of you in the states. >> and for our viewers elsewhere, stay tuned for more from the cnn news room. have a great day. . .

the race for the white house heating up with only four weeks before first votes are finally cast. donald trump firing away at hillary clinton as her campaign is getting ready to release it's not so secret campaign. and background checks on guns and already the president's plan is coming under attack. and two critical powers in the middle east. saudi arabia severing