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Trump Backs Down In State Of The Union Dispute; Guaido Declares Himself Acting Venezuelan President; North Korean Leader Gets Letter From Trump; World Economic Forum; Transfer Of Power In Congo; Capturing The Human Cost Of The Oil Industry; Photographer Shares #MeToo Story With A Graphic Selfie; Violence Produce More Refugees; Nations Supports Venezuelan Interim President; Heaven and Hell in a Child's Eye. Aired 3-4a ET

Aired January 24, 2019 - 03:00   ET

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

[03:00:00] (COMMERCIAL BREAK)

KRSITIE LU STOUT, CNN ANCHOR: Hello and welcome to a special edition of CNN Newsroom. I'm Kristie Lu Stout in Hong Kong.

BECKY ANDERSON, CNN ANCHOR: And I'm Becky Anderson. I'm Becky Anderson here in Davos in Switzerland.

And in the hours to come, the future of Europe and world trade will be front and center.

The European commissioner for trade will speak along with the director general of the World Trade Organization and the chair of the Saudi Stock Exchange. And Brexit will again be in the spotlight. We'll hear from the British Chancellor of the Exchequer, Philip Hammond, and the IMF's Christine Lagarde, to name a few.

China trying to reassure the world's elites at Davos that fear about an economic slowdown is overblown. During the speech here on Wednesday, the Chinese vice president said China's growth will continue despite the uncertainties this year. He also touched China's month-long trade war with the U.S., saying it's harming interests on both sides. And in an apparent jab at the White House, he called on all nations to avoid worsening global imbalances.

(BEGIN VIDEO CLIP)

WANG QISHAN, VICE PRESIDENT OF CHINA (through translator): What we need to do is make the pie bigger by looking for ways to share it in a more equitable way. The last thing we should do is stop making the pie and just engage in a futile debate on how to divide it. Shifting blame for ones' own problems onto others will not resolve the problems.

(END VIDEO CLIP)

ANDERSON: Well, it won't surprise you at all, when I say that you see a lot of high-powered people here in Davos. They've got money and they've status and they are making big decisions about what they at least consider important things. But they also get a chance to see what it's like to be a refugee. It's

a day in the life, a simulation where participants are forced to flee their homes and deal with armed border guards and survive a refugee camp. All the refugee run has been happening at Davos for 10 years now.

The U.N.'s high commissioner for refugees brings the program to Davos with help from volunteers who are refugees displaced people or humanitarian workers.

With me now is Filippo Grandi. He's the U.N.'s High Commissioner for Refugees. You've been bringing this now to Davos for 10years. Does it resonate, sir?

FILIPPO GRANDI, U.N. HIGH COMMISSIONER FOR REFUGEES: It does. We have more and more business leaders, representatives of companies that come here, high-powered people that understand that besides their world of big money and big political decisions there's a world out there have of people who suffer from bad decisions and lack of resources.

And among those are the refugees that in addition to all of this suffer because of persecution, war, violence, and the long list of evils that force them to flee their homes.

ANDERSON: At the beginning of 2019 where are we at?

GRANDI: We're at, unfortunately, almost 70 million people displaced refugees people who were forced to leave their homes. And we are at an increasing crisis. But at the same time, I think there's more awareness that this is a global problem that has to be resolved together.

ANDERSON: Created by conflict, insecurity, poverty, bad decisions, climate change, all of which and we've been discussing this now here all morning, all of which I feel are for the first time not just being talked about here but are embedded in conversations.

Should that make us feel at least optimistic about the potential for more global action? I say that, of course, as we live in an era of global leaders looking to distance themselves from global issues and start looking with this populist wave at more national issues. Which is a concern, isn't it, because you need multi-lateral sort of coordination to help organizations like your own?

GRANDI: Yes. It's interesting that we have this two competing trends in a way; on the one hand, looking inwards in Tunisians (ph) inside communities; on the other hand, in understanding, especially on the part of people that come to Davos here and people that are -- that are -- have to do good business that unless we work together that good business will not happen. Those good decisions will not be made.

So, these two trends are somehow in competition. But I'm encouraged by the fact that, for example, that when I speak about refugees in Davos, now I don't need to give a lot of explanation. There's an understanding of what it is about. [03:05:02] They -- the questions are -- are now more about what can we do? How can we do it best? How can we help you unleash the potential, for example, of refugees? They have a lot but they're frustrated by their -- limited by their situation. So that discourse is now happening increasing.

ANDERSON: Ironically, it was the sort of mass migration, it was the movement of refugees a couple of years ago that to some degree has forced the -- this era of inward thinking of populism. How do we -- how do we take a positive out of that?

GRANDI: That's a very good question, Becky, because, of course, I always get upset as you know when I hear the refugee crisis is a European crisis or a U.S. crisis or an Australian -- no. Refugee crisis is in Africa is in poor countries is in the Middle East, in Venezuela today.

But at the same time, when the crisis arrives, the last wave of the crisis, arrives in rich countries as it did with the Syrians in Europe, there's is an awakening. There's a realization that we're not immune from that. We're not exempt. So, we need to work to respond.

This is why we have what we call the global compact on refugees. It was only through the crisis in Europe that states rallied and said let's do something together, let's involve not just the humanitarians the traditional way but the big banks like the World Bank, the regional banks. Let's involve the private sector, and it is beginning to work.

ANDERSON: Which is why you come up this hill every year. I mean, I'm sure you've got better things to do. What it is that the private sector is up here? You get the ear of these politicians. Are they listening to you? So, are you making more progress, for example, with the private sector than you ever have done before?

GRANDI: No, these are two different questions. The politicians listen intermittently. But sometimes --

(CROSSTALK)

ANDERSON: When they listen.

GRANDI: When it suits them or when they're hit by the problem and they need solutions. No, I always say I represent an organization that carries norms, values. But these norms and values can also be useful in solving problems practically. But the private sector, which is your second question, I think they listen. They listen more. They understand the dynamics.

ANDERSON: Let me just ask you a final question. And you talk about an organization that you represent, which is all about values. How damaging has the last couple of years been when you have a U.S. president who's aped and, you know, we see echoes of Donald Trump all over the world. These are men and women who are value based, transactional, rather than values based. GRANDI: It's not just about the United States. We are in a world in which sometimes even solidarity is considered bad, right? So, I think that we need to fight for that space because I think there's a big public opinion out there, including in the United States that still believes in solidarity in sharing with disadvantaged with people, with refugees. And I think we also need to think of them. Not just of those who think the opposite.

But I have to also say, the United States, big European countries, other donors continue to be very generous. Last year, 2018, UNHR received the biggest ever contribution from the United States in its history. So, you see there are different trends and it's a more nuanced picture than sometimes is portrayed.

ANDERSON: Which is why it's important that you and I speak on a regular basis. We always speak here. We should speak more often as 2019 progresses. Thank you, sir.

GRANDI: With pleasure. Thank you very much.

ANDERSON: Thank you.

Kristie, it's day three and an awful lot going on. There's always an awful lot going on. But you know, don't shoot me down when I say I'm going to go glass half full on Davos this year because when you embed these issues like climate change, like insecurity, like the conflict and insecurity within the narratives, within the halls, these hollow halls of the World Economic Forum, it has to be that there is -- there is a potential at least for some momentum for change. Let's hope so.

STOUT: Absolutely.

ANDERSON: Back to you.

STOUT: And Becky, that was what you were driving at. That interview just now on the global refugee crisis needing real solutions, real commitments from elites and leaders gathering there at Davos. Becky, thank you so much. We will check in with you very soon.

Now to the ongoing fight over Donald Trump's State of the Union address, it is the House Speaker Nancy Pelosi who has won the latest round of the battle over the timing of the address is now settled but the government shutdown in nowhere close to ending now dragging on into day 34.

We got details from CNN's Kaitlan Collins.

(BEGIN VIDEOTAPE)

[03:10:02] UNIDENTIFIED MALE: The president of the United States.

KAITLAN COLLINS, CNN WHITE HOUSE REPORTER: The State of the Union officially off with House Speaker Nancy Pelosi telling President Trump he won't be officially invited to address Congress until the government has reopened. Writing in a letter, "I look forward to welcoming you to the House on

a mutually agreeable date for this address when the government has been opened." Reporters breaking the news to the president during a healthcare roundtable at the White House today.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm not surprised. It's really a shame what is happening with the Democrats. They've become radicalized. They don't want to see crime stop, which we can very easily do on the southern border. And it really is a shame what's happening with the Democrats.

COLLINS: Pelosi pulling the plug after the president dared her to disinvite him earlier in the day, writing in a letter that he was moving ahead as planned "because there are no security concerns regarding the State of the Union. Therefore, I will be honoring your invitation and fulfilling my constitutional duty."

In that scathing letter, the president added, "It would be sad for our country if the State of the Union were not delivered on time and on schedule and very importantly, location."

Sources tell CNN White House officials weren't expecting Pelosi to push back.

KELLYANNE CONWAY, WHITE HOUSE SENIOR ADVISOR: It would be I think remarkably petty of the speaker to disinvite the President of the United States to address the nation that they both serve at the highest level.

COLLINS: Sources tell CNN, the president hasn't spoken to Pelosi or Senator Chuck Schumer since he stormed out of their shutdown meeting two weeks ago. His public feud with Pelosi coming amid the longest shutdown in U.S. history.

Now on day 33 and starting to take a toll on federal workers bracing to miss their second paycheck.

UNIDENTIFIED FEMALE: This is not fair to us. It is not. He needs to fix this and fix this fast.

COLLINS: And the president's top economist making a stunning admission today, predicting there could be zero percent GDP growth in the first quarter because of the shutdown.

UNIDENTIFIED FEMALE: Could we get zero growth? I just want to nail this time for the --

(CROSSTALK)

KEVIN HASSETT, CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS: Yes, we could.

UNIDENTIFIED FEMALE: We could. OK. Wow.

HASSETT: Yes, we could.

COLLINS: Kaitlan Collins, CNN, the White House.

(END VIDEOTAPE)

STOUT: Now Venezuelan President Nicolas Maduro has ordered all U.S. diplomats to leave his country within 72 hours. This follows the day of mass protest against his government and support for opposition leader Juan Guaido who swore himself in as acting president.

Now the U.S. is one of a dozen countries now recognizing Guaido as the legitimate president.

Mr. Maduro rallied his supporters in Caracas denouncing a long history of what he calls Gringo intervention.

(BEGIN VIDEO CLIP)

NICOLAS MADURO, VENEZUELAN PRESIDENT (through translator): I have decided to break diplomatic and political relations with the imperialist government of the United States. Out of Venezuela they go. Enough interventionism. There is dignity here. Here there are people to defend this land.

(END VIDEO CLIP)

STOUT: Meanwhile, the newly self-declared President Juan Guaido has appealed for a new election in Venezuela and he has the support of just about every other government in South America.

Rafael Romo has more.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: Promising a transitional government, Venezuela's young opposition leader Juan Guaido swears himself in as interim president. It is an act of defiance before huge crowds of supporters.

JUAN GUAIDO, SELF-DECLARED ACTING VENEZUELAN PRESIDENT (through translator): I swear to secure an end of the usurpation and a treasonous government and to have free elections.

ROMO: The show of resistance is one of the strongest against Nicolas Maduro whose controversial second-term began this month after a much disputed election, boycotted by Maduro critics and found illegitimate by a number of countries, including the U.S. now throwing its support behind the opposition's new leader.

Wednesday protest is the largest organized demonstration against Maduro since 2017 when a bloody crackdown left more than 100 dead and several jailed. The opposition brought its knees. Now they answer the call of a charismatic 35-year-old leader who may be the opposition's last chance to oust Maduro.

First, becoming politically active as a student he protested against then President Hugo Chavez for what activists believed were attempts to control the press. Guaido then found the political mentor in one of the best-known faces of Venezuela's opposition, Leopoldo Lopez, who has been under house arrest for seeking to overthrow Maduro in 2014.

Guaido joins Venezuela's representative legislative body, the National Assembly as a relatively unknown. But earlier this month he was elected as its leader and use the event to rail against Maduro.

[03:14:59] A few days later, Guaido was arrested and briefly detained, once released he doubled down against Maduro and calling for this weeks' protests. Venezuela's pro-government Supreme Court soon nullified the national Assembly's power which only seemed to strengthen Guaido's resolve.

GUAIDO (through translator): There are those who want to continue intimidating and putting us on a knife edge. This National Assembly stays firm to move forward working for the people of Venezuela with a very clear focus.

ROMO: Although Guaido's resistance has gained traction, Maduro still has supporters inside the country, some of whom formed a parallel rally on Wednesday. His campaign's foreign interference particularly by the U.S. for stoking anger inside the country and for sanctions which they claim have damaged the economy.

But critics point to corruption and failed policies for the crises, an astronomical inflation rate, chronic shortages of food and medicine and a mass exodus since 2015 of millions looking for more stable conditions. As the once oil rich Venezuela faces collapse, some hope a young new leader may offer promise in a country desperate for change.

Rafael Romo, CNN.

(END VIDEOTAPE)

STOUT: You're watching CNN Newsroom. And we'll be heading back to Davos after a short break with a look at what the future holds for OPEC. Don't miss Becky's conversation with the CEO of B.P. Bob Dudley.

Plus, the demons of Syria, not the political ones, but the ones turning more and more young Syrians into addicts.

(COMMERCIAL BREAK)

ANDERSON: Welcome back to Davos in Switzerland. I'm Becky Anderson.

And we are seeing somewhat of a non-revolution but evolution here at this meeting, the World Economic Forum at the beginning of 2019, an evolution in the way that some of the global titans here are conducting their business.

John Defterios is with me, my colleague normally both of us based in Abu Dhabi here at the World Economic Forum, of course, as we have been over the last 20 odd years or so.

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Yes.

ANDERSON: And you and I have been discussing how we are seeing a different shape to some of these narratives. DEFTERIOS: Yes, particularly when it comes to the oil and gas sector,

I would say, Becky. In 2019, I kind of thought about it in a simple equation.

[03:20:00] Three years ago we had an oil crisis in Davos --

ANDERSON: Sure.

DEFTERIOS: -- where prices went below $30 a barrel. The next year, two years ago, we had the OPEC plus agreement between Saudi Arabia and Russia to take supplies off. A year ago, we started talking about the great energy transition.

In 2019, a profound shift I would suggest when it comes to climate change.

ANDERSON: Yes.

DEFTERIOS: Both in the panel the new energy equation. But I sat down with the CEO of B.P., Bob Dudley, and we talked about now price stability, hopefully getting $60 to $70 dollars a barrel which he calls the right fairway, but then there are conversation evolved really quickly to the challenge for the international oil companies on the energy transition and managing climate change. Let's take a listen.

(BEGIN VIDEOTAPE)

BOB DUDLEY, CEO, BP: I think that's very realistic, I mean, when OPEC plus got together in June -- I'm not an spokesman for OPEC plus -- but they saw with the Iran sanctions that about a million and a half barrels a day could come off the market, so they added to it and they've trimmed their sales to sort of make up for exemptions.

So, it feels to me like a step that will stabilize and put oil in that fairway going forward.

DEFTERIOS: Yet, the big three producers if you add Saudi Arabia and Russia and the United States. All guns blazing in the United States, 11.7 million barrels a day at the end of 2018. Will it continue to spoil the party and keep downward pressure on prices long-term if we see this pace of expansion which has been almost six million barrels since the year 2000?

DUDLEY: It is a market that has been expanding. It's also a market that responds very quickly. So, in the fourth quarter we saw that big drop in oil prices. You did see some decrease in activity. But the U.S. is certainly not regulated or coordinated. It will respond to market forces. And with strong oil prices I'm sure places like the Permian or whatever will continue putting crudes on the market.

But the world again is still growing. We see 1.4 million barrels a day, still are growth forecast for 2019.

DEFTERIOS: In advertising campaign this week looking at the energy transition. Why did you think it was important to do so, and how do you preserve your place in the market in the transition and the role for gas, for example, in electrification which is critical. A lot of people are stampeding out of the oil sector as an investment.

DUDLEY: You know for a decade we really haven't had the credibility to talk about planning in the future. We had our own special problems at the beginning of this decade. But I think B.P is ready. It absolutely is committed to reducing energy working to make energy production more efficiently. We work in renewables. They are very big gas business.

And of course, we have an oil business and marketing. So, it's time to tell the world a little bit about us and what we're doing. We're absolutely committed to the energy transition. We got 6,000 people working renewable energy. People wouldn't know that. And it's a natural combination.

I don't think this is going to be the climate change and transition. The issues are very, very real. It can't be erased to renewables. It's just too many people, too many people. A billion people don't even have access to electricity today. So we are going to need all forms of energy produce it efficiently, reduce emissions in our own operations, improve the products we make and create some new business models.

(END VIDEOTAPE)

DEFTERIOS: Bob Dudley talking about the great energy transition. We had the OPEC secretary general on our panel yesterday. He described it interesting as an industry under siege, like we have the data. We're starting to make this transition and trying to be more climate friendly overall as an industry.

But he said we're under siege and we have to start communicating better, not just as OPEC but an industry. They had, you know, behind the scenes here. They have the governor's meeting of all the energy leaders. And they said that was the topic in the background in Davos.

(CROSSTALK)

ANDERSON: Fascinating.

DEFTERIOS: You know, the scheduled behind the public schedule, if you will.

ANDERSON: Yes, isn't that fascinating. Let's be absolutely clear, this is not big oil being altruistic here and saying, you know, we love this sort of see yourself (ph). Is the institutional investor which is -- who's forcing them to get on board? Correct?

DEFTERIOS: It's fascinating because one of the things that came up during the roundtable we had yesterday, is that 10 years ago and the S&P 500, 16 percent of the market cap is in energy. It's 5 percent.

ANDERSON: Wow.

DEFTERIOS: So that's a profound change --

ANDERSON: Yes.

DEFTERIOS: -- based on part because of that transition.

ANDERSON: Isn't that fascinating.

Kristie, we are in Davos where it is 9.23 a.m. in the morning. If I were to say that it is warming up, I'd be lying. It's very cold here. As we say, normally this place is full of hot air, which kind of warmed you up a little bit. Less hot air I think this year. And you it just feels like there are some really sort of concrete conversations going on.

As I say, we're not seeing a revolution but we're certainly seeing an evolution, in the way that these global titans --

STOUT: Yes.

ANDERSON: -- are thinking and indeed, looking to run their businesses going forward.

STOUT: Becky, you've been hitting a lot of hot topics there including as you just discussed with John, the evolution of big oil. But please keep warm. Get some, get a hat on. Take care, Becky. We'll talk soon.

Now there has been widespread criticism of U.S. President Trump's decision to withdraw American troops from Syria.

[03:24:57] But on Wednesday, the Russian President, Vladimir Putin called it a, quote, "a positive step." Now Putin met in Moscow with the Turkish President Recep Tayyip Erdogan. Among the topics discussed how they would basically divide up control of northern Syria once U.S. troops leave and possible safe zones.

Now Mr. Putin said that he would soon hold a summit with Turkey and Iran to discuss the situation in Syria.

Now, as if the Syrian people didn't have enough problems already. There is one that is ravaging many in the war-torn country. Drug addiction, it is hitting children as young as 10 years old.

Ben Wedeman has the story.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: "I take 30 pills first thing in the morning," says 23-year-old Mahmoud, "as many as 150 by the end of the day."

He's one of dozens seeking help at the only drug rehabilitation center in Syria's rebel controlled Idlib province. The Save the Soul Hospital for mental illnesses.

The war has left hundreds of thousands of dead, millions exiled and displaced and rampant drug abuse has taken an invisible long-term toll. Twenty-nine-year-old Mohammed (ph) was a rebel fighter. A doctor

prescribed painkiller after he was wounded. "Tramadol," says Mohammed. "And he told me only to take it when I was really in pain. I needed it a lot, so I took a lot. I became addicted. I couldn't live without it. For two years I took the pills."

Tramadol and opioid is cheap and easily available over the counter in Syria. "Before I couldn't sleep," recalls Mohammed. "I couldn't eat. I was always vomiting, always nervous, always shaking." After spending weeks in the clinic, he says he's much better. What will he do when he gets out?

"I want to return, God willing, to fighting," he says.

We showed Mohammed's interview to Dr. Joseph El-Khoury, a psychiatrist at the American University of Beirut's Medical Center and an expert on opioid abuse.

JOSEPH EL-KHOURY, PSYCHIATRIST, AMERICAN UNIVERSITY OF BEIRUT MEDICAL CENTER: The chances of him falling again into some form of dependence is easily above 50 percent. Even with support.

WEDEMAN: Syria's nightmare has spared no one. The doctor who runs the clinic who asked that his name not be revealed and his face be blurred for fear of reprisals says people of all ages are falling prey to addiction.

"We're seeing addiction starting with children who are 10, 11, or 12 years old," he says. "Addiction is supposed to start later at the age of 18 or 19 or 20 but because of the breakup of families it's starting at an early age."

Hundreds of thousands have fled to Idlib as government forces have regained more and more territory. The population has mushroomed with little opportunity for those who now live here.

EL-KHOURY: You know, they're bored, they're sitting there and not much hope happening for them. And there's this promise of a chemical heaven that is instant and this relief from everything around you.

WEDEMAN: That chemical heaven becomes hell. Since becoming an addict four years ago, Mahmoud has struggled with the demons in his head.

"My father locked me up at home," he recalls, "he chained me up once."

Trying to escape the demons in their heads they'll need a helping hand.

Ben Wedeman, CNN, Beirut.

(END VIDEOTAPE)

STOUT: Now victims of war also victims of drug addiction. A shadowing report there by Ben Wedeman.

Now you're watching CNN Newsroom. We will head back to Becky Anderson in Davos, Switzerland where world leaders are looking for ways to address the migration and refugee crisis around the world.

(COMMERCIAL BREAK)