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Outbreak Still Rattling Stock Markets In Asia; Senator Bernie Sanders Wins Nevada Caucuses; Trump And Modi Issue Joint Statements After Talks. Aired 2-3a ET
Aired February 25, 2020 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ROSEMARY CHURCH, CNN ANCHOR (voice-over): Hello and welcome to our viewers joining us from all around the world. I'm Rosemary Church and this is CNN NEWSROOM.
Hello and welcome to our viewers joining us from all around the world. You're watching CNN NEWSROOM and I'm Rosemary Church.
Just ahead, world markets plunge as the coronavirus spreads beyond China's borders and fears of a pandemic along with it.
Monday's calm gives way to trade talks as Donald Trump and Narendra Modi get down to business.
And training the red carpet for Rikers Island. Harvey Weinstein is headed to one of America's most notorious prisons after being found guilty of sex crimes.
CHURCH: Good to have you with us.
We start with the novel coronavirus, spreading rapidly beyond China. The World Health Organization is warning the virus has pandemic potential but it is not there yet.
(BEGIN VIDEO CLIP)
DR. TEDROS ADHANOM GHEBREYESUS, WORLD HEALTH ORGANIZATION: Using the word pandemic now does not fit the facts but it may certainly cause fear. This is not the time to focus on what word we use. That will not prevent a single infection today or save a single life today.
This is a time for all countries, communities, families and individuals to focus on preparing.
(END VIDEO CLIP)
CHURCH: And as the cases spike, stock markets around the world are plunging. The Dow dropped more than 1,000 points Monday, its worst day in two years; the S&P 500 and Nasdaq also saw a huge losses.
The U.K.'s FTSE had its worst day since early 2016. Markets are also slipping in Italy and South Korea, where the outbreak is surging. Italy reports more than 220 cases. South Korea has almost 900, mostly in the southeast.
And Iran is emerging as the epicenter of a Middle Eastern outbreak. The country has confirmed at least 61 infected and 12 deaths. Worldwide, there are more than 80,000 cases and at least 2,700 killed. The vast majority are in Mainland China.
For the latest, CNN's Paula Hancocks is in Seoul and senior international correspondent Arwa Damon is in Istanbul, Turkey, and both join us now. Good to see you both.
Paula, let's start with you.
What is the latest on infections there, deaths and, of course, containment efforts across the country?
PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rosemary, at this point the death toll has just risen once again to nine; the latest fatality is a female, who has connections to this one religious group. And this is what we are hearing time and time again.
The religious group, Shincheonji, who well over half of the confirmed coronavirus cases, there is almost 900, as you say at this point, more than half of those have some kind of connection to this religious group.
The religious group says they have now given the identities of their congregation to police. But certainly critics say it has been a slow. They have been secretive, an accusation which they deny.
But this has really shown the spike in cases, this one particular group. And we know that there were individuals who were attending also a funeral of the leaders brother, which was in a hospital closed today who in the southeast of the country. That particular hospital has since had a number of cases as well and a number of deaths related to it.
So this is really what police and health officials are looking at at this point. We know that President Moon Jae-in is in Daegu himself, in this city, where there are some 2.5 million residents.
I was down there a couple of days ago and there certainly were not many people on the streets. They were taking a lot of precautions. But they are pointing out that they are not locking down the city. They're going to put quarantines in place. They are going to try to contain the spread of the infections in that particular area.
But it definitely is the southeast that is the hot spot, if you like, at this point. But there are still cases in Seoul. There are still cases in pretty much every province of this country. So the infiltration has been across the whole country -- Rosemary.
CHURCH: And, Arwa, let's go to you now. We are seeing infections in Iran, as we just reported, it is becoming the epicenter of the Middle East outbreak. Also, infections in Israel.
So what are the latest on those numbers and efforts to contain the infections?
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: And also in a number of other countries as well, Rosemary, in Bahrain, Oman, in Iraq and Lebanon, lower in numbers than those we are seeing coming out of Iran but also raising a number of concerns.
When it comes to those cases in Israel, they are individuals who were removed from the ship so not necessarily originating within Israel itself. But when we look at what is happening in Iran and especially where the outbreak there took place, in the city of Qom, this is one of Shia Islam's holy cities. It has a number of religious sites that are especially significant for Shia Muslims, who make regular pilgrimages there throughout the year, even when it is not necessarily during the time of any number of religious festivities.
And there are great concerns also as to how much Iranian officials are actually disclosing. The ticker on Iranian state television, saying that the cases that appeared were tied to Afghanistan, Pakistan and China.
But at the same time, we also heard from an Iranian lawmaker, who said that the number of fatalities in Iran is actually significantly higher than what the government itself is reporting.
Now the minister of health did deny that. But it's worth looking at the numbers. You have 12 fatalities among the 61 people who reported positive, who tested positive. This is a much higher fatality rate than we have seen in other countries.
And especially when it comes specifically to the Middle East, there's not only concerns, of course, about the circulation of people, about how the virus might be circulating but also the capabilities of any number of countries here when it comes to actually adequately treating this sort of an outbreak.
And then, of course, you have a number of countries that have high refugee populations that are still in the midst of some very fierce wars. Outbreaks spreading to those areas such as Syria and Yemen would potentially be extraordinarily difficult to even begin to address.
So you do sense that, across the region, there is a fair amount of concern that is rising and understandably so, about where this outbreak is going to go.
CHURCH: Arwa Damon, Paula Hancocks, thanks to both of you for joining us. Appreciate it. Just moments ago, U.S. president Donald Trump finished meeting with
Indian prime minister Narendra Modi. They are expected to have discussed trade and arms sales, among other things.
After the meeting, the two leaders spoke, praising each other but they did not take any questions. Now earlier, the president received a formal statement at the official presidential residence, where he and the first lady were greeted by the Indian president and his wife.
This followed or was followed by a wreath laying ceremony at the memorial for Mahatma Gandhi. CNN's Sam Kiley is live from New Delhi. He joins us now.
Sam, we witnessed all of the pomp and pageantry yesterday.
What are the expectations today in terms of policy on this second day of the U.S. president state visit, given he has dampened expectations for any breakthroughs on trade and there were no questions taken?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Donald Trump has been suggesting that there may be some breakthroughs in the sale of fighter jets to India or some similar defense type project, a sort of side dish to what is hoped, ultimately, as Donald Trump has indicated in this trip after the November elections, to see what he calls a good or great trade deal between these two nations.
The bilateral trade figures are pretty astronomical; $150 billion expected, that threshold to be broken this year and bilateral trade, very important trading partner from India's perspective. A huge number of exports go into the United States. They want greater access, the sort of access they that used to have with a privileged trading status.
That was removed under the Trump administration. But this has been, as we were on air yesterday, Rosemary, as you saw this pageantry and pomp and circumstance and above all, a political rally, Donald Trump loves a good rally.
KILEY: And there was a good one, 100,000 people turned out as much to see Narendra Modi in the town he used to preside over for 13 years, when he was chief minister of Gujarat.
Today, the nitty-gritty and against a backdrop of violence, very serious violence here in Delhi yesterday, with rioting that resulted in the deaths of seven people, one of them a policeman, killed with a gunshot, according to hospital sources here.
And these are ongoing demonstrations that have been going on now for some months against what has been described as anti-Muslim legislation, requiring the immigrants and refugees from Afghanistan, Pakistan and Bangladesh, to prove they are not Muslim before they can apply for Indian citizenship. That has been challenged in the supreme court but above all, being challenged on the streets. Very violent protests indeed. We have not seen any level of violence on that scale in Delhi for
sometime, not least, very unusual indeed to see firearms used against the police so not something the Modi administration, the most significant aspect of this trip so far has been the violence here in the Indian capital -- Rosemary.
CHURCH: All right, our Sam Kiley, bringing us the very latest from New Delhi. Many thanks to you.
I want to turn now to Jawed Ashraf. He is the high commissioner of India to Singapore and joins us from there.
Thank you so much for talking with us.
JAWED ASHRAF, HIGH COMMISSIONER OF INDIA TO SINGAPORE: A pleasure to be here.
CHURCH: Now we all witnessed the extraordinary optics Monday of President Trump and prime minister Modi praising each other's leadership in the presence of 100,000 plus Indians, filling that cricket stadium in Ahmedabad.
And then today, the focus has been trade and defensive but President Trump has ruled out any breakthrough in trade talks. That must be a real disappointment for India at this particular time, given he has gone all the way over there.
The expectations were high, weren't they?
ASHRAF: Well, I think the expectations weren't really high before this visit. Trade negotiations are really an ongoing process. Let me just say first to India-U.S. bilateral trade have been growing quite rapidly as President Trump has said, it has grown 40 percent in the course of the last two to three years.
And we expect as India's economy continues to grow that trade will continue to rise. You have also seen that the trade deficit has come down. That means India enjoyed a trade advantage over the United States and that trade deficit has come down quite significantly over the past three years.
And this is something we welcome. We'd like to see a fair and balanced trade. We've been talking about a number of issues. I think we made a lot of progress in the course of the past year on trade issues that concern both sides.
I would also say that it is not important to have done this right away but to do it right and in a comprehensive manner. I think we have covered most of the issues until now. But there are a few issues to address and we hope to do in the course the next few months and really have a comprehensive deal.
CHURCH: Sorry, what are those expectations, then?
What are those additional points that you want to discuss with the U.S. on trade that you just mentioned?
ASHRAF: I think we can't bring it down -- into very specific issues at this point of time. It's usually always a package of measures that both sides take.
You are aware of the issues that concern us. And you're aware of those that bother the United States. We hope that on a whole range of, issues including those that have been there from the past, including on some of the access to India, some issues concerning the access of professionals to India, issues relating to the digital economy, some of the trade barriers we have seen on both sides.
There are those issues where we made progress but we'd like to see that we are able to complete all the issues that are on the table and then announce something major.
We've also had concerns about the GSB (ph) withdrawal. Also, the reclassification of India under the WTO agreement that the United States has recently done. But all of those issues are very much on the table.
What we look forward to doing, more than just a transactional arrangement or what to see how the world's largest economy and the world soon to be the largest economy, certainly the fifth at the moment, can do more to expand economic opportunities for both their people.
And remember, we are two democracies discussing these to trade issues and the overarching framework of a strong partnership.
ASHRAF: So we are both very committed to use trade to add more balance to what is really a very, very strong growing strategic partnership in the United States.
CHURCH: The other discussions were defense and arms deals.
What does Mr. Modi want to see come out of those talks?
Because there were no questions asked. They did not make time for that. Of course, we will learn more from the joint statement that is imminent but talk to us about what India's expectations are in terms of defense.
ASHRAF: I think, since the turn of the century, the one dimension of India-United States relations that has really been transformed is the defense partnership. We really did nothing with each other at the turn of the century.
United States is today perhaps one of largest defense partners for us. It is giving us access to some of the most advanced technology and defense equipment. We've had something like $17 billion in purchases. More recently in the past week, at the cabinet committee on security, had approved a number of new deals including for Apache helicopters and naval helicopters and that should add another $3 billion to $4 billion.
There are a number of new deals that are in the pipeline and should happen in the course of this year. But more than that, it is really driven by a great deal of convergence on strategic perspectives in the evolving geopolitical environment in the country, the world and particularly in the context of the Indo-Pacific region, which is of great importance to both India and the United States.
We have a huge commitment and a strong commitment to build a peaceful, inclusive balance in the Pacific region and the world. And I think that is the principal driver of this defensive partnership and the defense interoperability, the defense purchases, as I said, a great deal of value still in that strategic mission.
CHURCH: Thank you so much for joining us. We appreciate it.
ASHRAF: Pleasure to be here, thank you very much.
CHURCH: We will take a short break. Still to come a jury has convicted Harvey Weinstein on two sex crimes charges. Ahead, we will discuss the message this verdict is sending to those in positions of power.
Plus, all of the gains made by the Dow Jones this year have now been wiped out over fears of the coronavirus. We will look at whether U.S. stocks can bounce back in the hours ahead.
(BEGIN VIDEO CLIP)
GLORIA ALLRED, ATTORNEY: It's no longer business is usual in the United States. This is the age of empowerment of women. And you cannot intimidate them anymore because women will not be silenced.
(END VIDEO CLIP)
CHURCH: A milestone in the #MeToo movement. A New York jury has found movie mogul Harvey Weinstein guilty of two sex crimes charges. After the verdict, his attorney said Weinstein had chest pains and heart palpitations. He is at the hospital right now but later Tuesday, he will be behind bars. CNN's Erica hill has more.
ERICA HILL, CNN ANCHOR (voice-over): Harvey Weinstein, once one of the most powerful men in Hollywood, now a convicted rapist.
CYRUS VANCE JR., MANHATTAN DA: Weinstein, with his manipulation, his resources, his attorneys, his publicists and his spies did everything he could to silence the survivors. But they refused to be silenced, they spoke from their hearts and they were heard.
HILL (voice-over): At least 100 women have now publicly accused Weinstein of actions from unwanted sexual advances to rape. He has denied all allegations of nonconsensual sex. Six of those women testified over the past month.
On Monday, a Manhattan jury found Weinstein guilty on two counts, committing a criminal sex act and third degree rape. Charges based on testimony from Miriam Haley and Jessica Mann. Haley told the court Weinstein forced her into a sex act in 2006, while Mann testified he raped her in 2013 during an abusive relationship.
The 67 year old was acquitted on more serious charges of predatory sexual assault against both women and first degree rape against Mann. Immediately taken into custody, Weinstein faces five to 25 years in prison for the criminal sex act charge and a maximum of four years for the rape charge.
Ashley Judd, who accused Weinstein of sexual harassment in a bombshell "New York Times" story published more than two years ago, tweeted that, "For the women who testified in this case and walked through traumatic hell, you did a public service to girls and women everywhere, thank you,"
"Gratitude to the brave women who testified and the jury for seeing through the dirty tactics of the defense," wrote Rosanna Arquette. Arquette publicly accused Weinstein of sexual misconduct in a separate story for "The New Yorker," written by Ronan Farrow.
In response to the verdict, Farrow lauded the many women who came forward at, quote, "great personal cost and risk. Please keep those women in your thoughts today," he wrote.
Weinstein's attorneys, who plans to appeal, tell CNN they don't think he could get a fair trial, in part because of the intense media coverage. They also believe the DA wanted to make an example of him.
DONNA ROTUNNO, WEINSTEIN ATTORNEY: The district attorney's office wanted to shame Mr. Weinstein and they wanted to get him on all counts.
DAMON CHERONIS, WEINSTEIN ATTORNEY: I think, clearly, throughout the course of this trial, through the cross-examinations and the evidence we have put forward, there was a reasonable doubt, a grave reasonable doubt as to whether or not these crimes were proven.
HILL (voice-over): Erica Hill, CNN, New York.
CHURCH: I'm joined now by CNN legal analyst Shan Wu. He is also a former federal prosecutor, who specialized in sex crimes.
Thank you for being with us.
SHAN WU, CNN LEGAL ANALYST: I'm glad to be here. CHURCH: So Harvey Weinstein, found guilty on two charges, third
degree rape and a criminal sex act in his New York City trial.
How significant is this and could it represent some sort of turning point, do you think?
WU: I think it is a very significant case because, prior to the last few years with the #MeToo movement's notoriety and sort of growing raising of awareness, this is the kind of case which sex crimes prosecutors were worried about taking on.
And specifically they were worried because in at least some of the allegations, there was a continuing relationship with Weinstein after, even after the assault had occurred. And usually prosecutors are very risk-averse about that. They are afraid to hurt their ability to prove a lack of consent.
But the #MeToo movement has really grown an awareness of the inequitable balance of power and how predators like Harvey Weinstein may actually overcome a person's consent without the traditional notions of force being involved but simply by their position in terms of their employment capabilities.
WU: Much like the sexual harassment body of law, we are now seeing it is beyond harassment. It can actually cross the line to sexual assaults.
CHURCH: Right, and Weinstein now faces similar charges in California.
What would you expect the outcome to be there?
WU: Well, we don't know or I don't know exactly the kind of evidence they will put on there. But it certainly sounds like it's the same type of allegations that were proven beyond a reasonable doubt in other cases.
If I were representing Weinstein, I would be looking to make a deal. For him, at his age, any sentence is going to essentially be a life sentence. And so if they want some chance of him being able to live some portion of his life outside of prison, they're going to have to look to make some kind of deal.
It certainly is not in his interest in continuing to go to trial after trial and perhaps taking the maximum penalty on each of them.
CHURCH: Weinstein kept insisting he was innocent. His lawyers as well.
Do you think in his own mind, given the experience you have had with situations like this and sex crimes, that he truly believes he was innocent, that it was consensual?
Do you think that this is maybe a turning point for a lot of men of his age, who really thought that this behavior was acceptable? WU: I think that is true to some degree. Let me try to dissect that a little bit.
I think that for true serial predators of the kind that he appears to be, they are very narcissistic and always believe that they are right and rules do not apply to them. So in his mind, I'm sure it's quite likely. I am not a prison psychiatrist but it is quite likely he believes he did not do anything wrong, that this is some sort of a trumped up charge, a conspiracy.
With regard to its effect on other men, I think that a good man, someone who has morals, is not going to say, oh, gosh, I better stop engaging in predatory behavior, because they are not predators to begin with.
But I think it sends a message to women in the workplace, to our children, that they have the right to be free of any type of behavior which makes them uncomfortable and which can then cross the line with men, who are more inclined to become actual predators, that this sends the message that this is illegal and will not be tolerated.
And most importantly, the institutions themselves, large corporations, the entertainment industry, it sends a message to them that this is not going to be tolerated. This is a criminal action and you cannot in any way enable this kind of behavior in the future.
So I think systemically that is probably the most important message.
CHURCH: So it could represent some sort of wakeup call for some men in positions of power that believe they can assert their power in certain ways.
WU: That's right. I think generally, the growing awareness has made most men in the workplace more aware of what perhaps 10 years ago they would've thought was something innocent or appropriate, that you have to be more sensitive nowadays and that is a good thing for the healthiness of the workplace.
CHURCH: Shan Wu, thank you for joining us. We appreciate it
WU: Good to be here, thanks.
CHURCH: And we will take a short break here. Still to come, the coronavirus continues to rattle global markets. Ahead, a look at how stocks in Asia are doing.
Plus, a look at how the virus is even impacting the toy industry.
CHURCH: Welcome back to CNN NEWSROOM. I'm Rosemary Church. I want to check the headlines for this hour. U.S. President Donald Trump met with Indian Prime Minister Narendra Modi in New Delhi and he said they made progress on trade and fighter jets, among other things. He said both countries are working on very substantial transactions and praise the size of the crowds he saw throughout the visit. Later President Trump will attend a state dinner before leaving the country.
In Germany, a man is in custody after police say he intentionally drove through a parade crowd on Monday. The attack injured at least 30 people including children. The driver is in the hospital and will face a judge when he's able to be questioned.
The World Health Organization says the novel coronavirus isn't a pandemic but has the potential to become one. The outbreak is spreading rapidly beyond China with hundreds of cases reported in Italy and South Korea. It's also rattling world markets. The Dow dropped more than 1,000 points on Monday.
And as for the markets in Asia, the Nikkei and Shanghai Composite of both down right now while the Hang Seng has been back and forth all day. The Seoul KOSPI has made some gains though after dropping more than three percent on Monday. So let's get more now from Manisha Tank. She joins us live from Singapore. Good to see you, Manisha. So what are we to make of the KOSPI shaking off some of those losses? What does that signal?
MANISHA TANK, CNN INTERNATIONAL REPORTER: Yes, well, you know, I think there are some people who might be surprised by that, but actually it's connected, Rosemary, to some of the comments that are coming out of South Korea today. In particular, hopes that President Moon Jae-in will talk about having some kind of supplementary budget.
So that would mean some sort of fiscal measures potentially, that could shore up this economy at a trying time. Also, some expectations amongst analysts that maybe we'll see another rate cut in this easing cycle from the Bank of Korea. If we do get that from the central bank, then we might get stimulus from both sides, both monetary and fiscal, to help this economy which is the world's eighth-largest, to manage at a challenging situation that is evolving every day.
I think, Rosemary, you have to concentrate on two big words at the moment when it comes to this coronavirus and the impact it's having on markets. And those two words are of course, pandemic and whether or not it's a pandemic and containment. So the question is always around, can you contain it?
I mean, I'm sitting here in Singapore and Singapore has done an incredible job thanks to the lessons that I've learned from SARS in managing to contain coronavirus here. In fact, this is the fourth day running where we've had the recovery rate outpacing the number of new cases here. And you would hope to see that in some of the other countries where we're now seeing an implosion of the coronavirus in terms of the number of cases.
You mentioned that the markets have been mixed today and you know, the Hang Seng has flip-flopped a little bit, but yes, the KOSPI has ended the session higher. The Hang Seng has been underwater most of the time, but it's been a lot better than what we saw on Monday. But the Nikkei has been the one that hit four months lows today. It was actually closed for trade on Monday because it was Emperor Naruhito's birthday. But it meant that when traders woke up this morning to those headlines that the Dow had fallen 1,000 points, it was the first opportunity to respond on the Japanese market, which is such a bellwether market here in Asia.
And of course, it was straight to the downside with the Nikkei down almost five percent at one stage. I can tell you that it's come off those lows and into the closing session, we're down more than three percent. But obviously, it sets us up in that sort of framework when European markets come online. So there's still a long day to go ahead, Rosemary.
CHURCH: Manisha, I'm fascinated by what you said about Singapore having learned lessons from SARS in the early 2000s. So talk to us about what they're doing that's so different. Perhaps other countries listening in could learn a thing or two from what Singapore is doing to contain.
TANK: Well, you know, a few weeks ago, Harvard University actually published a study praising Singapore for its effort and containing the virus. And one of the ways that it's done this is it has this, I can only describe it as epic, it's a contact tracing mechanism that always triangulate where potential cases have been.
So every time anyone is confirmed as having coronavirus, and I was reading about one particular case in Singapore of a woman who had confirmed case of it and she was in hospital, but as soon as she got her diagnosis, she was inundated with calls from all sorts of authorities from the police to the health authorities asking her to answer a series of questions about where she'd been, who she'd interacted with.
And then this team goes out and contacts others who may have come into contact with those particular patients and gets them to have a leave of absence, for example, from work or, you know, Singapore has been very pointedly putting out the stay at home measure. It's been very, very, very disciplined about that.
The Ministry of manpower, in fact, making sure that people adhere to those leave of absence notices or the stay at home notices to make sure that they're not out there in the community spreading the virus. And the data would tell you that it seems to be working. And in fact, we've even had agencies saying that the fact from the World Health Organization, for example, saying that the fact that China shut down parts of the country really did help stem the virus to some extent.
So now it's a question of can you see the rollout of these sorts of measures coming in? What we learned after SARS here in Singapore was that you needed a system that could tell you how bad the situation was. They implemented that here and it certainly seems to be working, Rosemary.
CHURCH: Well, hopefully, other nations will take note and follow suit. Many thanks. Manisha Tank joining us live from Singapore. I appreciate it. Well, gains for U.S. stocks have been wiped out for the year. The Dow is now down 1.5 percent in 2020. It was up three percent when it hit an all-time high. Just two weeks ago, the S&P 500 was up nearly five percent on the year, it's now up just a half percent, barely staying in the green. And while tech stocks have been powering the NASDAQ to a spate of all-time highs, they're now feeling the brunt of the virus and falling fast.
Well, the toy industry is also facing a big hit from the coronavirus. Many toy companies get their products from China, of course. And while some may be ready for a dip and supply, others could be impacted for months to come. Clare Sebastian has more now from the New York Toy Fair.
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: Well, fewer industries (INAUDIBLE) U.S. and China quite like the toy industry. 84 percent of all the toy sold in the U.S. come from China. And that means at this is Toy Fair in New York, everyone is pretty much in the same boat. From the makers of these sequent (INAUDIBLE), to this rattle snake, they're all try to work out how and when they can ramp up production.
So I asked the CEO of the Toy Association, how it will be until we start seeing real impacts from this.
STEVE PASIERB, CEO, TOY INDUSTRY ASSOCIATION: This is literally a day by day case by case basis. We're in a short window here where it's not doing too much harm. If this continues into April, it'll begin to affect summer deliveries of summer toys. And then of course, if it goes farther than that, then we're talking about the holidays. Most of the Christmas toys end up on the ocean during the summer, late summer, arrived here in the fall, end up in the Walmart, Target warehouses, and things like that right after.
SEBASTIAN: Whatever it get, this is an industry that spent most of last year worried about the threat of tariffs. Now, the ones that would have hit toys directly were averted just before Christmas as part of a phase one trade deal. But the CEO of this company Learning Resources that makes these coding robots, he told me that preparing for those tariffs is actually helping them now.
RICK WOLDENBERG, CEO, LEARNING RESOURCES, INC: So, we always have a high inventory because of tariffs. Last year, a lot of toy companies including ours stocked up. And so we have more than a normal amount of inventory just by good luck, I suppose. So I don't expect to see shortages for several months on a serious basis in a worst case scenario.
SEBASTIAN: All of this has led to a fundamental question for this industry. Are they too exposed to China? Well, or the makers of this connects toy among others have been trying to move production back to the U.S., but it takes time they say, and it's difficult to find the right labor. So Meanwhile, this industry is facing yet another periods of uncertainty. Clare Sebastian, CNN, New York.
(END VIDEOTAPE) CHURCH: Still to come, Bernie Sanders has emerged as the top Democratic candidate in the U.S. presidential race. We look at what his rivals are doing to slow his momentum. Back in just a moment with that.
CHURCH: As CNN projected, Vermont Senator Bernie Sanders was the big winner of the 2020 Nevada caucuses. The numbers are now final. Nearly 47 percent of voters backed Sanders. That makes him 22 delegates. Former Vice President Joe Biden was a distant second with just over 20 percent of the vote. Former South Bend Indiana Mayor Pete Buttigieg rounded out the top three with 14 percent. The next primary is Saturday in South Carolina.
Well earlier, CNN's Chris Cuomo spoke with Sanders about his recent success. He asked him if he was ready for the pressure that comes with being the frontrunner.
(BEGIN VIDEO CLIP)
SEN. BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATES: Given the fact that I have been in opposition, my entire career, and I've taken on every special interest, it is a little bit funny to find myself as the so-called frontrunner.
I think that the Democratic nominee, and I certainly hope it's me, not only has the good chance to defeat Trump, I think we have a chance to defeat him very badly because I think -- you know, because I think there is a growing revulsion in this country to this guy's behavior. People want to turn on the television and not be embarrassed when their kids are in the room about who is president. We want a president who believes in democracy, believes in our Constitution, not as trying -- not one who's trying to undermine American democracy here and around the world. So I'm feeling good, and I think we got a good shot to win this thing.
(END VIDEO CLIP)
CHURCH: And CNN's Jeff Zeleny has more on the rise of Bernie Sanders.
SANDERS: They say, you know, Bernie can beat Trump. So let's look at some of the polls out today.
JEFF ZELENY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Bernie Sanders is on a roll driven by his winning momentum and his campaign movement.
SANDERS: And the key battleground states Michigan, and Wisconsin, Pennsylvania.
ZELENY: A very Trumpian move, calling out his own poll numbers.
SANDERS: General Election, CBS, Sanders 47, Trump 44.
ZELENY: It's setting up the most critical stretch of the Democratic primary with rivals scrambling just low Sanders for mounting an unsurpassable lead and delegate. Joe Biden is hoping South Carolina voters put the brakes on Sanders' rise, telling us the self-described Democratic Socialist would do the Democratic ticket.
JOE BIDEN (D), PRESIDENTIAL CANDIDATE: It's not just can you beat Donald Trump, can you bring along -- can you keep a Democratic House of Representatives in the United States Congress, and can you bring along a Democratic Senate? Can you help people up and down the line?
ZELENY: Pete Buttigieg, making the same case.
PETE BUTTIGIEG (D), PRESIDENTIAL CANDIDATE: We had better make sure we got a nominee at the top of the ticket who cannot just take back the White House, but keep the House in the right hands and send Mitch McConnell packing.
ZELENY: Backing his argument up with T.V. ads here in South Carolina.
UNIDENTIFIED FEMALE: Bernie Sanders, Medicare for all would completely eliminate private insurance. Instead of polarization, progress.
ZELENY: With new urgency in the race, fresh scrutiny for Sanders. Tonight, he's facing backlash from his Democratic rivals for his partial defense of Fidel Castro.
SANDERS: Were very opposed to the authoritarian nature of Cuba. But you know, you got -- it's unfair to simply say everything is bad. You know, when Fidel Castro came into office, you know what he did, he had massive literacy program. Is that a bad thing even though Fidel Castro did it?
ZELENY: Florida Democrats say yes with Congressman Donna Shalala firing back, "I'm hoping that in the future Senator Sanders will take time to speak to some of my constituents before he decides to sing the praises of a murderous tyrant like Fidel Castro. South Carolina voters will weigh in first on Saturday, followed by 14
states three days later on Super Tuesday. Even some Biden supporters like Tracy Hughes are now unsure who is the strongest Democrat to challenge Trump.
And you think that Vice President Biden is the strongest Democrat to beat President Trump?
TRACY HUGHES, JOE BIDEN SUPPORTER: I think it's, it's a tossup. I believe Joe Biden is the one to do it, me personally. I think that Bernie Sanders may have what it takes, but I think that Joe Biden has that history. He has that -- I believe that if he's the candidate chosen, that everyone will get behind him.
(END VIDEOTAPE) CHURCH: And for more on all of this, I'm joined by Peter Beinart, he is a CNN Political Commentator and Contributing Editor at the Atlantic. Good to have you with us.
PETER BEINART, CNN POLITICAL COMMENTATOR: Nice to be here.
CHURCH: So, Bernie Sanders is the clear frontrunner right now, and many think he could very well become the Democratic presidential nominee. Now, according to one school of thought, that will hand victory to President Trump and result in another term in office for him. The other school of thought, Bernie is exactly the right guy to take on Trump and beat him with his progressive agenda, his fundraising prowess, and his committed base. Which is it do you think?
BEINART: I think we really don't know is the truth. Conventional wisdom in American politics hold that running more to the center is generally a safer bet. On the other hand, Bernie Sanders has shown the capacity to bring out a huge base of younger American voters. American politics would be transformed by the fact that younger Americans are much further to the left than their parents and grandparents.
And it's also possible that Trump may pick up some disaffected -- sorry, Sanders made it pick up disaffected Trump voters, for instance, with his positions on trade. So, the truth of the matter is, we really can't say with a high degree of confidence right now whether you will be a strong candidate or a weak candidate. Trump is beatable, but Trump also has some particular strength in some key states.
CHURCH: Right. And how likely is it that Bernie Sanders' partial defense of Fidel Castro will slow down his momentum do you think?
BEINART: Again, the conventional rules of American politics suggest that that's not a good move, that it might hurt him in Florida, in particular, where you have Cuban and other kind of anti-communist immigrants from Latin America.
On the other hand, you know, Donald Trump has rewritten the rules of American politics. Donald Trump, virtually every single day says something that one would have thought would be disqualifying for an American presidential candidate, and yet, lo and behold, he's the president.
So one of the things I think many of us are still really trying to understand is to work through the normal rules of American politics as we have understood them really apply.
CHURCH: Yes, it's hard to figure all out now, isn't it? Then, of course, I wanted to ask about Joe Biden. Is the show over for him if he bombs in South Carolina? And then what about a former New York Mayor Michael Bloomberg, did his debate debacle end his run at the top job do you think?
BEINART: I think Biden needs to finish first in South Carolina for his campaign to go on. Even then, he has less money than Bernie Sanders and less support, it appears, in the Super Tuesday states that will come afterwards the huge tranche of states that will vote on March 3rd. But Super Tuesday -- South Carolina is his last chance, I think, to revive his campaign at all.
Bloomberg's big advantage, of course, is a huge amount of money. And there's talk that he's going to roll out a huge negative attack campaign against Bernie Sanders, but he was hurt by that campaign by that debate performance. Although he's developed some support because of this massive amount of T.V. commercials, his support is pretty thin. And I think you certainly cannot withstand another poor debate performance like he did last week.
CHURCH: Right. And in the end, who do you think is the strongest Democrat to take on Donald Trump and beat him?
BEINART: I would say right now that to be honest, and I say this is someone who would like Donald Trump very, very badly to no longer be the American president, I think all the potential candidates have serious weaknesses. Sanders turns off some moderate middle and upper middle-class voters, but Joe Biden will have a lot of trouble turning out young people. He's not a very exciting candidate.
Michael Bloomberg has serious problems with African Americans given his stop and frisk policy. Michael -- Pete Buttigieg and Amy Klobuchar have shown very little ability to win Latino and African Americans' support. The harsh reality is that all of these candidates, although they could possibly win because Trump is vulnerable, they're all significantly flawed candidates.
CHURCH: Yes. There's a lot who have said if you could just merge them altogether into one, you've got the person that could go head to head with Donald Trump. But it is a sad situation, isn't it, that in this day and age, the Democrats can't come up with someone who could go head to head with Donald Trump where people could go, yes, definitely, this person has what's needed to take Trump on, but there isn't that person?
BEINART: You know, the American system for nominating candidates is very different than in much of the rest of the world. In many other countries as you know, party leaders essentially choose candidates or a small number of party activists and members. The system of the United States is very open. Millions and millions of people participate in choosing the nominee. That means it's participatory, it's open, it's relatively democratic.
On the other hand, it means that party elites cannot choose the candidate that they think will be the most viable in the general election. But then again, the voters have a way of surprising us. A lot of Republicans thought that nominating Donald Trump was the ticket to disaster, and it turns out he won. So again, we have to be humble about the reality that we don't entirely know how this will play out.
CHURCH: Yes, but we'll be watching very closely to see what does happen in the end. And of course, we really -- we've got a long way to go before we get an answer here. It's -- and that's what's so exhausting in this country when you watch the whole political process play out. BEINART: Absolutely.
CHURCH: Peter Beinart, thank you so much for joining us. We appreciate it.
BEINART: Thank you. My pleasure.
CHURCH: We'll take a short break here. Still to come, China calls it vocational training, but critics say it's a mass detention of minority Muslims forced to endure hard labor and extraordinary surveillance. Why the government says there's nothing to see here. That's next on CNN NEWSROOM.
CHURCH: All right, we're taking you to these live pictures. President Trump, Indian Prime Minister Narendra Modi making a joint statement after their meeting in New Delhi. Let's listen in now.
UNIDENTIFIED MALE: -- the Government of Republic of India and the Department of Health and Human Services of the government of the United States of America. Second was an MOU on the safety of medical products between the central drugs standard control organization within the directorate general of health services of the Ministry of Health and Family Welfare of the Republic of India and the Food and Drug Administration of the Department of Health and Human Services of the United States of America.
And finally, a letter of cooperation between Indian Oil Corporation Limited and Exxon Mobil LNG Limited, and Chart Industries Incorporation. I now begin the proceedings for the press event. To begin, may request the honorable Prime Minister of India, Narendra Modi to deliver his statement to the press.
NARENDRA MODI, PRIME MINISTER OF INDIA (through translator): A very warm welcome to President Trump and his delegation in India. I'm especially really happy that he has brought his family with him on this visit. In the last eight months, this is the fifth meeting between President Trump and myself.
Yesterday, the unprecedented and historic welcome for President Trump yesterday in Motera will always be remembered. Yesterday, it became clear once again that the master relations between the United States and India are not just limited to the relations between government. They are people and they are people-centric.
This relationship is employed important partnership of the 21st century. And therefore, today, President Trump and I have taken a decision to raise our partnership to the level of comprehensive global strategic partnership. President Trump's contribution in raising relations to this level has been invaluable. During our discussions today, we had a productive exchange on every
important aspect of our partnership, whether it is defense and security, strategic energy partnership, technology cooperation, global connectivity, trade relations, with people to people ties. The increasing defense and security cooperation between India and the United States is a very important aspect of our strategic partnership.
Cooperation in ultra-modern defense equipment and platforms will enhance India's defense capabilities. Our defense manufacturers are becoming a part of each other's supply chain. Indian forces today during the maximum training exercise --
CHURCH: All right, we have been listening to these joint statements from the Indian Prime Minister Narendra Modi, and also U.S. President Donald Trump who hasn't spoken yet. We've just having a few little technical issues there. Let's go to Sam Kylie who's standing by in New Delhi. And Sam, talk to us about this because certainly, there's been a lot of pageantry, maybe more pageantry than substance here. What can we expect to come out of these joint statements?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they're just making them as we speak, Rosemary. And there are indications from Prime Minister Modi insisting that this is not just a relationship between governments but between peoples, between individuals. And of course, he means by that the close relationship he's established with Donald Trump.