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Coronavirus Pandemic; Members Of Trump Inner Circle Cash In On Covid Bailout; Virus Rages In U.S. Placing Economic Recovery In Doubt; Vice Chair Of Fed Says More Can Be Done To Help Recovery; Facebook Under Fire; TikTok Leaving Hong Kong In Wake Of National Security Law; Mexican President Takes Commercial Flight To United States; President Trump's Niece Pens Scathing Book About U.S. President; President Trump Pushes For Schools To Reopen As Virus Surges; Deadly Flooding, Flash Floods Rip Through Japan; President Trump Ignores Surging Coronavirus Cases in the U.S. Australian Residents Faces Another Lockdown; Brazilian President Get His Proof of the Virus; Israel Hit with a Second Wave of COVID. Aired 3-4a ET

Aired July 8, 2020 - 03:00   ET



ROSEMARY CHURCH, CNN ANCHOR: This hour in many places around the world, the coronavirus is spreading out of control. We are monitoring every angle.

Hello, and welcome to CNN Newsroom. I'm Rosemary Church.

Just ahead.



DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I think we are in a good place. I disagree with him.


CHURCH: Reality check, America is a very long way from being in a good place. The country is soaring towards three million COVID-19 cases.

Plus, Brazil in split screen, as the president test positive for the virus he has often dismissed. He is now smiling as he takes a widely discredited drug to fight it. This as mass graves for those killed by the virus there hit a tragic point.

And record-breaking rainfall in Japan causes massive flooding and landslides that have killed dozens of people.

A staggering new death projection for the United States as the country closes in on three million coronavirus cases. With more than 131,000 people dead. Now a new model has the death toll passing 208,000 by November. But

health experts including America's top infectious disease doctor say lives could be saved if most Americans wear masks. And while Dr. Anthony Fauci says the U.S. is still knee deep in the first wave, President Trump had this assessment.


TRUMP: Well, I think we are in a good place. I disagree with him. You know, Dr. Fauci said don't wear masks and now he says wear them. He said numerous things.


CHURCH: Well, even as cases surge in dozens of states, the U.S. has seen a lower death rate, but Dr. Fauci warns against a false sense of security.


FAUCI: It's a false narrative to take comfort in a lower rate of death. There are so many other things that are very dangerous and bad about this virus. Don't get yourself into false complacency.


CHURCH: And in just a moment, a health expert talks to me about some of the hardest hit states, especially Florida. But first, let's check the big picture with CNN's Nick Watt.

NICK WATT, CNN CORRESPONDENT: Big techs taking a break for the first time since World War II, the Texas state fair just canceled as the military sends medical personnel to San Antonio to help.


GOV. GREG ABBOTT (R-TX): The four days leading up to the 4th of July, combined, were the four deadliest days that we've had. My concern is that we may see greater fatalities going forward.


WATT: Florida still won't reveal how many COVID-19 patients they have in hospitals, despite the governor's claims today.


GOV. RON DESANTIS (R-FL): All the data that goes into this is all available.

UNIDENTIFIED FEMALE: I have spreadsheet from that data, governor, it is not available.


WATT: But Miami-Dade County does release COVID-19 hospital numbers and they are up 90 percent in just two weeks. Still, the state just issued an order for schools to reopen next month. There's pushback.


SHEVRIN JONES (D), MEMBER, FLORIDA HOUSE OF REPRESENTATIVES: We can't go on this path of putting our teachers in this petri dish of danger.

ALBERTO CARVALHO, SUPERINTENDENT, MIAMI-DADE COUNTY PUBLIC SCHOOLS: I will not reopen our school system. August 24th, if the conditions are what they are today.


WATT: In California, the state's capital now closed indefinitely after at least five lawmakers tested positive. Test lines are getting longer.


ASHISH JHA, DIRECTOR, HARVARD GLOBAL HEALTH INSTITUTE: All of this makes it so much harder to manage this disease.


WATT: Quest Diagnostics says last month results were taking two to three days, now it's four to six. Quick results are key in effectively isolating the infected.


UNIDENTIFIED MALE: The cases arising so rapidly, that we cannot even do contact tracing anymore.


WATT: Undiagnosed, silent spreaders might be responsible for around half of all cases according to one new study, and as cases climb, nearly half of states now slowing or rolling back reopening.

GOV. GRETCHEN WHITMER (D-MI): If they keep moving up, we're going to dial back if we have to, and it's the last thing any of us want.


CHURCH: Dr. Jorge Rodriguez is an internal medicine and viral specialist. And he joins me now from Los Angeles. Thank you, doctor, for being with us.



CHURCH: Well, the Washington University model now projects more than 200,000 Americans will die from COVID-19 by November 1st, but adds that if 95 percent of the population wore masks, that number could be lower to around 162,000 plus. And America's top doctor, Anthony Fauci, says masks need to be mandated by states and local governments. So, why isn't that being done right now if around 48,000 lives could potentially be saved between now and November?

RODRIGUEZ: Well, yes, it's not being done because unfortunately politics has gotten into the way of health care and good medicine. There's no doubt that wearing a mask decreases the infectivity of this virus, and people just need to come to grips with the fact that this virus is not going to go away until it is completely, completely eradicated.

So, until that is done, we need to, basically, learn how to live with this beast, and we need to sort of live in well, maybe the word is not harmony, but to keep it from destroying us and the way to do it is masks, and social distancing, and hygiene, at this time.


RODRIGUEZ: But politics need to get out.

CHURCH: There are still some reluctance, though, going about Atlanta I see it people not wearing masks. But doctor, despite surges in cases, President Trump is pushing for schools to open next month. The CDC supports him on this, and will put up school opening guidelines next week. How can kids go back to school without jeopardizing their health?

RODRIGUEZ: Well, they -- it is a risk, and it's something that I honestly fight with this every day and I ask my cousin who lives in Miami what she does because what she think she would do, since she has four kids, and I was surprised, she said that maybe they should go back because kids are not going to get sick.

If I had children, I would not actually risk them. So, this is something that needs to be done on a local level, and this is something where parents absolutely need to have their voices heard. This maybe a couple of years. Well it not be the optimum for kids to go to school, it wouldn't be the optimum, but at least there would have a third year to, you know, to go to school, and it would be a live for that. It's a tough one.

CHURCH: Right. It is a tough one, and doctor, two major U.S. COVID-19 testing companies LabCorp and Quest say the waiting time for results has double because of the surge, and it's now, what? Four to six days before people are getting results.

What is the impact of that in terms of the spread of this virus, and why is the superpower unable to get testing done properly, and contact tracing now impossible, apparently, because of the surges? So, what is going on here?

RODRIGUEZ: Well, what's going on here is that we were late to the party. And when we showed up, we didn't really know what to do. So, this is something that hits home to me because we use both of those labs, and it has. It's now it's taking five to six days, and people want to know.

For example, I had a case today, the gentleman wanted to visit his parents who he hasn't seen in months. And it's almost ineffectual because by the time we get the result back he may already be infected.

So, we need to ramp up. And the problem isn't just that we have so many people now wanting tests, and so many people that are getting infected, we were slow in coming up with reagents to run these tests. So, full court press now has to be done for these lab test to be able to be accessible to everybody.

CHURCH: Yes. And they've got to be faster. I mean, other countries were able to provide fast testing. So, doctor, Florida's governor won't disclose how many people have been hospitalized, but Miami-Dade has, and it's up 90 percent in just two weeks.

Still, in Florida, it's ordering schools to reopen next month despite the surge in cases, but the superintendent of Miami-Dade County schools in Florida says he will not reopen his school system on August 24th if the situation doesn't improve. Will counties need to break from their governors to keep their people safe?

RODRIGUEZ: Absolutely, and they should, and I think their main obligation is to the children and to the parents. Actually, to the whole community. And when you mentioned Miami, I mean that is my hometown. So, this hits very close to home.

But it will happen in every single county and every single state in this country, so we need to be very aware and involved. And yes, they do need to be rebels, and they do need to go against the current, and do what is safest for those children.


CHURCH: Dr. Rodriguez, thank you so much for joining us. We appreciate it.

RODRIGUEZ: Thank you for hearing me out.

CHURCH: And the coronavirus shows no sign of slowing down in Brazil. There were more than 45,000 new confirmed cases on Tuesday, bringing the total to nearly 1.7 million. More than 1,200 newly recorded deaths mean the virus has killed nearly 67,000 people in Brazil.

And one of those 45,000 new infections, the president of Brazil, himself, Jair Bolsonaro has played down the coronavirus from the very beginning, but on Tuesday he tested positive announcing the results live on TV.

Later, he posted a video of himself, taking hydroxychloroquine despite multiple studies showing it's not an effective treatment.

Bill Weir has the latest now from Sao Paulo.

BILL WEIR, CNN CORRESPONDENT: After months of sneering at a little flu, and waiting in the crowds of unmask fans, Brazil's Jair Bolsonaro told his country today that he has COVID-19. But there was no sign of a president humbled.

"I'm feeling very well," he said, and gave much of the credit to two doses of hydroxychloroquine. The controversial antimalarial drug first pushed by Donald Trump, then stockpiled by Bolsonaro, but unproven as a treatment for COVID-19. And he insisted that the millions of young people he is urging back to work can still feel invincible.


JAIR BOLSONARO, PRESIDENT OF BRAZIL (through translator): Younger people, take care, but if you are affected by the virus, rest assured that for you, the possibility of something more serious is close to zero.

WEIR: When you are health minister, did you try to warn him? Try to get him out of those crowds, for his own health?

LUIZ HENRIQUE MANDETTA, FORMER BRAZILIAN HEALTH MINISTER: Everybody did. Not only the health minister, all the other ministers. We all advised him.


WEIR: Dr. Luiz Mandetta was Brazil's health minister until Bolsonaro fired him for trying to get the nation to stay distant or stay home. But instead of the virus converting the president to science, Mandetta worries it will only amplify a pseudoscientific message of more malaria pills and less quarantines.


MANDETTA: He stands for it to make the political stand for, well, I have the disease, look at me, I'm OK, I'm a superhero. I took this medicine, I really did well, and you should do this also. His message could be a disaster.


WEIR: Meanwhile, the largest cemetery in Latin America is not large enough these days, and in his 25 years digging it, Bill Formosa (Ph) and Denilson Castro (Ph) has never seen fresh graves fill up so fast.

"There were four COVID families here this morning, and we're shocked," he says. "Everyone is the same. Ten minutes max, no wake, no way to look in the coffin because it is the last greeting they will ever give to the loved one they lost, and there is no time for a ceremony.

Bill Weir, CNN, Sao Paulo, Brazil.

CHURCH: In Australia, millions of Melbourne residents are preparing to enter another lockdown starting midnight, local time. A recent outbreak in the state of Victoria saw cases there rise to nearly 3,000. Here is the Australian Prime Minister Scott Morrison.


particularly serious, but on an international scale, it is -- it is well within the band, and so it is not surprising.


CHURCH: And CNN's Anna Coren joins me now live from Hong Kong. Good to see you, Anna. So, the prime minister is right compared to other nations. These cases are within the band, but the concern here is for the 3,000 people, locked down in public housing towers because we know how that strategy turned out with cruise ships. How will those people be coping right now?

ANNA COREN, CNN CORRESPONDENT: Well, as you say, there are 3,000 people inside those nine tower blocks housing commissions tower blocks. This is day four for them, they will be there for another day. Authorities are hoping to test all residents to determine who has COVID and who doesn't.

But as of midnight tonight, the entire city, greatest city of Melbourne will go into lockdown. And the idea is, Rosemary, to contain the outbreak that has just rattled the country. I mean, the prime minister talks about, you know, Australia being within the band, but Australia has been exceptional in comparison to other countries around the world.

They have tackled this pandemic extremely aggressively, closing down borders, forcing a nationwide shut down for over two months. So, really, the spike in cases in Victoria has rattled the country, 191 new cases in Melbourne yesterday, it's 134 today. It's going down, but it is still of major concern.


And by putting the closure and the border between Victoria and New South Wales, the hope is to stop the spread of the pandemic


COREN: Having aggressively tackle the pandemic compared to other countries, Australia thought it had flattened the curve. That was until COVID-19 reared its ugly head again, but this time, with a vengeance.

For the past week, cases have been surging in the state of Victoria, a record 191 new cases on Tuesday prompting the Victorian premier to take drastic action.

DANIEL ANDREWS, PREMIER OF VICTORIA: The public health team have advised me to reimpose states to stay-at-home restrictions, and staying at home, except for the four reasons to leave for a period of six weeks.

COREN: It's deja vu for the more than five million residents of Melbourne. ROHAN BURGESS, VICTORIA RESIDENT: We have to do what we need to do to

make sure everybody is safe in Australia, and in particular, our local community.

COREN: They went through a two-month lockdown back in March, but as the state reopened, residents drop their guard.

ANDREWS: I think a sense of complacency has crept into us, I think each of us know that we've got no choice but to take these very, very difficult steps.

COREN: But it's not just complacency. It's also potentially reckless and illegal behavior. Australian officials have launched a judicial inquiry into allegations of the outbreak in Melbourne could have been sparked by contracted security guards. Not following protocols and interacting with international arrivals and the government quarantine in a hotel.

The outbreak has led to a dozen suburbs in lockdown, while the residents of nine housing commission tower blocks are not allowed to leave their homes under any circumstance until everyone has been tested.

The 3,000 residents locked inside are primarily refugees and immigrants, relying on authorities to deliver food and much needed supplies.

AHMED DINI, MELBOURNE RESIDENT: We are waiting people to drop supplies to us, the SCS and emergency services. The situation is one of anxiety, it's one of a lot of people are scared, you know? These towers are basically are very cold cruise ships and a lot of us are sitting ducks.

COREN: And in a move that hasn't happened since the Spanish flu 100 years ago, the border between Victoria and New South Wales will be closed. Up to 1,000 police and military personnel will be deployed along the more than 1,000-kilometer border, a logistical challenge but one considered necessary to try to prevent the virus spreading across the nation.

GLADYS BEREJIKLIAN, PREMIER OF NEW SOUTH WALES: This is unprecedented in Australia, that's why the decision of the New South Wales government is unprecedented. We've not seen anything like this.


COREN: Now, Rosemary, we are also learning of a breach by one of the airlines, Jetstar, it flew passengers, 48 passengers from Melbourne to Sydney last night, and all were allowed to disembark and walk through Sydney airport and head off to wherever they were going without any screening whatsoever.

This is seen as a real problem. They're trying to track down the 48 passengers on board that plane, but who have they come into contact with? What have they touched? What have they sneezed on? This is causing concern. Local reports saying is this the next Ruby Princess, which was that cruise ship that docked in Sydney back in March, and some 21 deaths were linked to that cruise ship. Seven hundred cases across Australia as people just spread out around the nation. So, obviously, authorities trying to get on track of this and trace those 48 passengers, Rosemary?

CHURCH: It is mistakes exactly like that caused the spread of this incredibly contagious virus.

Anna Coren, joining us live from Hong Kong, many thanks.

Well it was once praised for its response to the coronavirus, but Israel is now struggling with a spike in cases. Coming up, why the country's public health director is calling it quits. Back with that in just a moment.



CHURCH: The coronavirus is taking an ever-increasing toll across the Middle East, and you can see the numbers here from Iran, cases continuing to rise. More than 245,000 people have now been infected in the country.

Israel, meanwhile, is re-imposing strict limitations, closing down clubs, bars, and more as coronavirus cases surged across that country.

So, let's take you across the region. Arwa Damon is in Istanbul, and Oren Liebermann is in Jerusalem. Good to see you both. Arwa, let's start with you, because Iran has recorded its highest daily number of cases since the start of this pandemic. How is Tehran meeting this challenge?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they are in a very tough position at this stage. The Iranian government is that, is because yes, the numbers are increasing, yes, that daily death toll is the highest since this all began, bearing in mind too that Iran was the epicenter of the outbreak in the Middle East, but the government literally cannot afford to further shut down.

Now, the numbers did begin to go up as the country was reopening. There were concerns by experts being expressed that Iran could very easily experience a second wave. And of course, the great fear right now is that that is what is underway at this stage.

But the economy in Tehran is crippled. It is being hit on multiple fronts, already being hit by the sanctions, of course, and then you have the plummeting oil prices, and on top of that the hit that it has taken by the coronavirus restrictions.

So, at the moment, you know, the border between Iran in Iraq is open for economic activities, the government is trying to urge people to maintain social distancing. It is mandating the wearing of face masks in public, but that's not really being sufficiently implemented. And there is a sense of complacency, among the population. And what's

specially feeling the effect of all of this is of course the middle and lower class. Because even though businesses have begun to reopen, the clientele just isn't there. And the Iranian economy is internally speaking at least by and large reliant on the exchange of moneys, and goods, and services within the local population.

Businesses are opening, but clients are not there. People are really feeling the financial pinch of this right now because prices are also increasing. Prices for basic services, the cost of rents are also increasing for a lot of families.

So, there is, on the one hand, a lot of fear and trepidation amongst the segment of the population, but on the other hand, you also have this issue where people aren't taking this seriously enough. And the big challenge for the government right now is going to be whether or not they actually take the needed measures to further shut down, or they decide to risk it and keep the economy going at this stage.

It's really an impossible situation for a country that is already feeling this financial pinch, this financial crippling, not to mention of course on top of all of this, that its medical infrastructure is ill-equipped to handle these rising numbers.

CHURCH: Arwa Damon, many thanks. Oren, let's turn to you now in Jerusalem. What's the latest on Israel's new lockdown after a rise in cases?

OREN LIEBERMANN, CNN CORRESPONDENT: Rosemary, already this week Israel has shut down gyms, pools, pubs, event halls, and more. Now Israel is beginning localized lockdowns in cities or areas that have high incidences of new cases of coronavirus.


For the first time since the beginning of the outbreak, Israel had two straight days with more than 1,000 new cases as health officials warn this is very much the 2nd wave.


LIEBERMANN: If Israel's first wave of COVID-19 was a success story, its second wave appears on pace for a very different ending.

BAR COHEN, JERUSALEM RESIDENT: I'm still taking care of myself, and washing my hands, and not getting close to people so much. I hope it will be fine soon.

LIEBERMANN: As coronavirus cases surged across the country, the government has re-imposed closures of public halls, pubs, gyms, pools, and more. With unemployment already more than 20 percent, Prime Minister Benjamin Netanyahu is trying to avoid another complete lockdown.

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): Today, there are around 90 severe cases, and the number is doubling every four days. If we do not act now there will be hundreds, perhaps thousands of severe cases in the coming weeks which will paralyze our systems.

LIEBERMANN: When the country reopened in early May, Israel looked like an international coronavirus success story. Low mortality rate, few new infections, available hospital space, and the president was riding that first wave, the high approval ratings. Then came the second wave. Daily infections have increased 50-fold. Twenty new cases a day are now 1,000 new cases.

Active infections hit record highs, and Netanyahu's approval rating on the handling of COVID-19 has plummeted. Seventy-four percent in May to 46 percent now, according to recent polling. The national unity government formed specifically to deal with coronavirus appears more concerned with political squabbles.

UNIDENTIFIED MALE: This government is crap, and the prime minister is full of crap.

LIEBERMANN: Sixty percent of Israelis fear for their financial future, the worry is that bad can still become worse.

ARI BAROZ, REHOVOT RESIDENT: My heart goes out, I don't know how people are maintaining. People raising families, people who have lost their businesses, it's, you know, the last shoe hasn't dropped unfortunately. So, it's concerning.

LIEBERMANN: On Tuesday, the top public health official at the ministry of health resigned, saying her professional opinion was no longer accepted. Warning that the country is approaching a dangerous place.

To my regret, for a number of weeks, handling of the outbreak has lost direction, she wrote in her resignation. Despite systemic and regular warnings on the very systems and into discussions and different forms, we watch with frustration as the hourglass of opportunities runs low.

In late April, Netanyahu said Israel had been successful in its mission to combat coronavirus as he began easing restrictions and opening the economy. But the mission isn't over yet.


LIEBERMANN: And it's not just Israel that is seeing the surge in cases after what appeared to be a situation of having the virus under control. Palestinian authorities is also seeing hundreds of new cases a day, widespread lockdowns being re-imposed there as well as both Israel and the (Inaudible) trying to get this under control quickly in the region without doing too much further damage to the economy.

CHURCH: Certainly, a warning to us all to be very vigilant. Oren Liebermann, joining us live from Jerusalem, many thanks.

Well China is trying to prevent another outbreak. This time, the bubonic plague. Well, now a city in the country's Inner Mongolia region is on high alert, and five tourist areas there were closed down after a case of the plague was confirmed on Tuesday.

A plague prevention alert will be in place through the end of the year, and the city where it was found and people are being urged to take precautions. A small number of cases of bubonic plague typically show up around the world each year, believe it or not, including in the United States. It can usually be treated successfully with antibiotics if it's caught early enough.

When we come back, how some of President Trump's friends are profiting from a program to help small businesses survive the pandemic. Back with that in just a moment.



ROSEMARY CHURCH, CNN ANCHOR: Welcome back everyone. We are now getting a look at how money from a government plan ended up in the pockets of Donald Trump's friends and family. The Paycheck Protection Program was supposed to help small businesses pay employees amid the covid-19 pandemic, but among the businesses who raked in millions were several closely connected to the U.S. President. CNN Sunlen Serfaty has the details.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Nonetheless, we are processing loans at a pace never achieved before.

SUNLEN SERFATY, CNN CONGRESSIONAL CORRESPONDENT: Trump's friends and business partners and family members grabbing cash. Receiving millions in potentially forgivable loans as part of the Paycheck Protection Program. Intended to help small businesses keep in plea on the payroll during the pandemic.

TRUMP: The kind of jobs that have also been saved it's incredible.

SERFATY: A long-awaited data just released by the White House revealing that among these struggling small businesses like gyms and hair salons, the politically well-connected, the powerful and those with close links to Trump benefited greatly. Companies associated with Jared Kushner's family businesses received several loans, totaling at least $8 million. Hydroponic lettuce farm back by the president's son Don Jr. received at least 150,000.

TRUMP: There is one right over here. Standup, Albert. Where the heel are you, Albert? Stand up, Albert.

SERFATY: Trump's dentist and frequent golf partner at least 150,000.

TRUMP: He's a good golfer but I'm actually a better golfer than him, right?

SERFATY: Conservative website Newsmax run by Trump donor Chris Ruddy got up to $5 million. The Daily Caller, cofounded by Fox News' Tucker Carlson up to $1 million. The law firm which helped Trump in the Russia investigation received between five and 10 million. A trucking company founded by Trump's agriculture secretary, Sunny Purdue, received over 150,000.

The family business of transportation secretary Elaine Chao and wife of Senate Majority Leader, Mitch McConnell received over 350,000. And two wineries that Republican Congressman Devin Nunes co-owns received at least $1 million each. More than $525 billion was given now to more than 4.8 million small businesses. Among those, $273 million in loans went to more than 100 companies that are owned or operated by major donors to Trump's election efforts.

But it wasn't just those close to Trump. Among them, a firm linked to Nancy Pelosi's husband and the consulting group founded by former Obama adviser Jim Messina.


CHURCH: And that was Sunlen Serfaty reporting there. The U.S. Treasury Department has promised to review all PPP loans worth more than $2 million to ensure they actually qualified for the program. And that loan program was one of many efforts by the U.S. government to keep the economy going during the pandemic. But with cases spiking in much of the country, signs of a real economic recovery are few and far between.

So, let's bring in John Defterios of CNN Business to talk more about this. Good to see you, John. So far about $10 trillion globally has been put out to fight the economic fallout from the pandemic. Nearly a third of that from the U.S. What signals about this being sent by the U.S. Federal Reserve?


JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, this is not the end of the game. That is the signal, Rosemary. Three trillion dollars as you suggested in a short span of time, many of these measures are somewhat arcane to the average viewer here. Overnight lending for the banking system, bond binding programs, they push down the interest rates, main street lending programs which have been criticized for getting slow to get started up is now kind a gathering momentum.

But the vice chairman of the U.S. Federal Reserve, in an exclusive interview with our Richard Quest suggested, will do whatever it takes to revive the economy and the Federal Reserve has its role in that process. Let's take a listen.


RICHARD CLARIDA, VICE CHAIR, U.S. FEDERAL RESERVE: When it comes to the size of our balance sheet, we make those decisions. There is no limit to how much we can purchase in terms of treasuries and mortgage backed securities. You talk about the alphabet soup of programs.

I think it's important for your viewers to know, Richard, these programs are meant to encourage and support the flow of credit to households and businesses and the economy. And those will remain in place as long as they are needed. So, there is more that we can do and there's more that we will do if we have to do it.


DEFTERIOS: And there's a question of course, Rosemary, who pays the price afterwards, particularly what the legislation coming out of Capitol Hill. There's a role the Federal Reserve as regulator and lender. This is something that Federal Reserve had been saying. And the lawmakers who have to put these plans into the system as well. And we are waiting for that second tranche may be coming in September.

But the downside of this is something we had been talking about over the last two or three weeks, because of the market rally. All of this bond-buying is keeping interest rates low. So the major capital in the world flooding into the stock markets and while we see the 50 percent return from that bottom that we saw at the end of March to where we are in the first week of July.

CHURCH: And John, a Zoom meeting between civil rights groups and Facebook CEO Mark Zuckerberg ended in disappointment. What happened and where do things go from here?

DEFTERIOS: Well, so much anticipated meeting, as you suggested. They gathered on their computer screens. The meeting lasted only an hour. And by most accounts here, it didn't go well. This is very much a David and Goliath story, where you have the activists trying to challenge the behemoth which has $70 billion in annual revenues, a market cap of $700 billion.

And the complaint was from the activist that Mark Zuckerberg, for example CEO and the CEO Cheryl Sandburg and others from Facebook showed up, but they were opaque on the concrete measures they are planning to take when it comes to content being posted on Facebook which has a hate nature to it. And also about diversification within Facebook itself, there is a 10 point plan by the activist and they said they don't have any concrete answers as of yet. Let's listen to the anti-defamation league CEO.


JONATHAN GREENBLATT, CEO AND NATIONAL DIRECTOR, ANTI-DEFAMATION LEAGUE: Our recommendations are simple and straight forward and transparent. They have been published on our website since mid-June. Facebook asked us for this meeting. And we expected them to share details and timeframes to execute on those recommendations. Instead, we didn't get any details. We didn't get any timeframes. No commitments. No outcomes.


DEFTERIOS: So, you have to wonder, Rosemary, is Facebook is trying to play a waiting game. They say they appreciated the feedback here and they will be judged on their actions, not their words. But can this campaign be sustained beyond July? The 750 plus companies involved here. That's the real question. But Facebook has 8 million advertisers. So, this has a snowball effect here and carries on to the end of the year. It will eat away of the revenues. It is just not clear that that's going to happen and the market cap remains pretty steady. It is kind of a clash, David versus Goliath playing out as we see week by week.

CHURCH: Many thanks to John Defterios. We shall chat again in the next hour. I appreciate it.

And we are following an announcement from another popular social media app. TikTok says it is pulling out of Hong Kong in the wake of the controversial new national security law. CNN's Hadas Gold has the details.


HADAS GOLD, CNN POLITICS, MEDIA AND BUSINESS REPORTER: This decision by TikTok to pull out of Hong Kong should really be seen as part of a broader messaging effort by TikTok to try to distance itself from China, despite the fact that it is owned by the Beijing-based company, ByteDance. Because Hong Kong is actually not a big market at all for TikTok. It is nowhere near for example India, which recently banned TikTok from the country.

But what TikTok is trying to do here is send the message to its critics that it is not in the pocket of the Chinese government. This despite calls from people like U.S. Secretary of State Mike Pompeo, who called TikTok a security threat because of laws in China which require Chinese companies to work with the Chinese government when asked. That is part of the reason why Mike Pompeo says they are actually considering banning TikTok in the United States.

MIKE POMPEO, SECRETARY OF STATE: We are taking this very seriously. We are certainly looking at it. We've worked on this very issue for a long time, whether it was the problems of having Huawei technology in your infrastructure. We've gone all over the world and we are making real progress getting that out and we declared ZTE a danger to American national security. We've done all of these things. With the respect Chinese apps on people's cellphones, I can assure the United States will get this one right thru.


GOLD: But TikTok has always maintained it never has and never will hand user data over to the Chinese government, even if asked. It will comes at the same time as some of the biggest internet and social media platforms in the world, including Google, Facebook, WhatsApp, Twitter, LinkedIn, and even Zoom has a (inaudible) of stop processing user data request from Hong Kong authorities as a result of this national security law.

Because this new national security law gives Hong Kong police the authority to demand these platforms hand over user data, or that they removed content from their platforms that the authorities deemed to be somehow breaking this national security law, which keep in mind, can be something like calling for Hong Kong independence. Facebook, for example, for its part says it wants to consult with human rights experts before they decide on their next steps forward. Hadas Gold, CNN, London. (END VIDEOTAPE)

CHURCH: A scathing tell-all book from President Donald Trump's own niece hits shelves next week. Why Mary Trump calls her uncle the world's most dangerous man. That is next.


CHURCH: Mexico's president is getting ready to meet with his American counterpart in Washington in the coming hours. Andres Manuel Lopez Obrador left Mexico City on Tuesday, on a commercial flight after he tested negative for the coronavirus. His visit with President Trump is to celebrate the implementation of the new free trade deal, the U.S. Mexico Canada agreement. Matt Rivers has our report.


MATT RIVERS, CNN CORRESPONDENT: You might think that President Donald Trump and Mexican President Andres Manuel Lopez Obrador wouldn't get along. Demonizing Mexicans has been a key part of the Trump playbook. Build that wall, Mexican immigrants are criminals and invaders, and so on. And for his part, Lopez Obrador was asked in 2017, is Trump a racist?

Yes, yes, he said. He incites racism. But since he became president in 2018, Lopez Obrador known here as AMLO has for the most part refused to publicly criticize Trump and when the two men meet this week expected to go well. Trump has said he likes the Mexican president. And AMLO said this last month.


ANDRES MANUEL LOPEZ OBRADOR, PRESIDENT OF MEXICO (through translator): I am going to the U.S. to thank President Trump for his support and solidarity.


RIVERS: The two presidents will mark the start of a new free trade deal that replaces NAFTA. And AMLO says he will thank Trump for sending ventilators during the pandemic. But critics in Mexico have urged him not to go, saying an Oval Office visit gives Trump and his supporters a pass for their rhetoric on immigration.


TRUMP: How do you stop these people? You can't. That's only in the panhandle you can get away with that state.

RIVERS: Some have also argue Lopez Obrador could be used as a political prop, saying the Oval Office photo op could be used to demonstrate international support for an embattled president in a reelection fight. Asked about that criticism, Lopez Obrador dismissed it and said the U.S. and Mexico have been essential economic relationship. He says I am not going to the U.S. for politics or elections issues.

Politics is like walking a tight group. You need to take risks and make decisions. So, as Mexico's economy has been crushed during this epidemic, shoring up the country's most important economic relationship could be at the top of his mind.

LARRY RUBIN, PRESIDENT, AMERICAN SOCIETY OF MEXICO: Almost 85 percent of all exports go to the states, which is obviously a huge number, so Mexico is highly dependent on trade.

RIVERS: Plus, there's a lot the two men have agreed on recently. They both have routinely ignored scientific advice during the coronavirus pandemic. They don't wear masks in public. Have push for an economic reopening and aren't pushing for more testing. A new free trade agreement is the reason for the meeting, but it seems like there could be a lot of common ground. Matt Rivers, CNN, Mexico City.


CHURCH: The niece of U.S. President Donald Trump has laid out a damning portrait of her uncle in a new book. Mary Trump, a licensed clinical psychologist, seeks to explain Mr. Trump's character through her personal knowledge of their family drama and relationships. CNN's Sarah Murray reports on some of the key takeaways.


SARA MURRAY, CNN POLITICAL REPORTER: There's a scathing new critique of President Trump, and this time it is coming from his own niece. CNN obtained an early copy of Mary Trump's book, and in it she writes about the toxic culture that Fred Trump, the patriarch of the family, Donald Trump's father created. She says that's why Donald Trump is the way he is. And she describes her uncle as a liar, a cheater and essentially a sociopath.

You know, at one point in her book she writes, the lies may become true in his mind, as soon as he utters them, but there's still lies. It's just another way for him to see what he can get away with. And so far he's gotten away with everything. Mary Trump includes a number of embarrassing anecdotes from the president, it's clear that there is bad blood in this family, it goes back decades.

One of these anecdotes is actually when Donald Trump was younger, he want to get into the University of Pennsylvania and she says he paid another kid to take the SAT for him. Now, the White House said that is absurd. They say it's false and they are questioning why this book is coming out now.

Well, Mary Trump says that Donald Trump destroyed her father, her father Freddy Trump, who struggle with alcoholism and has since passed. She says she is not going to stand by while Donald Trump destroys the country. Sarah Murray, CNN, Washington.


CHURCH: And joining me now is Larry Sabato, he is the Director of the Center for Politics at the University of Virginia. Always good to have you with us.


CHURCH: now, Larry, in a scathing tell-all book written by President Trump's niece, Mary Trump, called too much and never enough, she describes her uncle as a threat to the nation, a liar, and a cheat who only ran for president to boost his own brand. And she says this. By the time this book is published, hundreds of thousands of American lives will have been sacrificed on the altar of Donald hubris and willful ignorance. If he is afforded a second, term it would be the end of American democracy.

Now she also says, he cheated on his SAT by paying another student to sit his exam for entry into the University of Pennsylvania. The White House disputes this and all of other things she said. But what impact could a scathing tell-all book from a family member have on Mr. Trump's efforts to win a second term?

SABATO: I think it would have some impact, because it's an individual within the family, who has not spoken out before, at least to my knowledge, probably privately providing information to The New York Times, but that's different in speaking of (inaudible).

I think it would have some impact. And there are bombshells in that book. There's no question about it. The SAT example is just one. As it hits me because I am a college professor. Any student who is found doing that would be expelled within hours. I do think that top schools (inaudible). They got to take a look at this, because if they can prove this is true, and his diploma must be revoked. It must be. This is a standard in academia.

CHURCH: Well, she does named the student who apparently sat the exams, so no doubt someone is checking him down to get some comment. But, Larry, Mary Trump also says this. The lies may become true in his mind as soon as he utters them, but there is still lies. It is just another way for him to see what he can get away with, and so far he has got away with everything,


And Larry, it is worth noting that Mary Trump is a clinical psychologist. And she has assessed her uncle as a sociopath, a liar and a cheater as we mentioned. Does the fact that she is a psychologist add weight to these revelations, despite suggestions from the White House that she is motivated by money in spite?

SABATO: Absolutely. I mean, maybe she is motivated by money in spite that that doesn't mean she is not telling the truth. So, yes, I think that given her background, she has every right to say these things. As we all, know as we have seen 1,000 times, Trumps intense base will completely ignore all of this.

But there are handfuls of voters that are persuadable. That voted for Trump, because they didn't like Hillary Clinton, but they don't really like how he has performed. And this kind of information could have an impact.

And again, there is so much damaging information here. There are so many bombshells. You even read parts of this book which is all I read to this point and it is hard to conclude otherwise, that Donald Trump is a wretched human being, whatever you think of him as president. He is a wretched human being.

CHURCH: And Larry, President Trump is pushing for the economy and schools to reopen. And he insists there will be no more closures going forward. How does that play politically for the president? Because when we look at the national poll numbers and we will bring those up, his rival, Joe Biden, is well ahead of him. But what is the story behind those numbers? In critical swing states and of course the role of the Electoral College might play a gain in the outcome?

SABATO: It is very important to focus on his overall approval rating. Despite everything that has come out, despite the disaster of the pandemic, which he is partly responsible for in this country, and despite the terrible economy and racial protests and all the rest, he still had an average of 42 percent.

You need to remember that either the Electoral College systems which now favors him pretty clearly, he only needs to get maybe 45 percent. He got 46 percent the last time. He could win with 45 percent. Well, that means he's only 3 points down from what he needs. A lot is going to happen between now and November.

So, you can't count him out. And what Trump sees is the opportunity to attract people that who may be wavering. And he is trying to show that he's a strong president who is going to command that the schools open which by the way, he doesn't have the power to do that either. That's the state and local level.

And also the pandemic he has decided that there is no pandemic or that we we've gotten over it and now let's talk about other things. Well, it's hard to say that after 130,000 people have died and some models now projecting over 200,000 by November.

CHURCH: Yes. The numbers are simply horrifying. Larry Sabato, many thanks to you for joining us.

SABATO: Thank you, Rosemary.

CHURCH: Enjoy your (inaudible).

SABATO: Thanks a lot.

CHURCH: Well, days of rain are causing deadly floods and landslides in Japan. We will track where the rain is moving next. That is after the break. Stay with us.



CHURCH: Well, at least 50 people have been killed as flash flooding devastates southern Japan. Heavy rainfall has caused the flooding and landslides in recent days. Nearly one and a half million people were under an evacuation order Tuesday. Our meteorologist, Pedram Javaheri joins me now. He's been following this very closely. So, Pedram, what are you seeing? What's ahead here?

PEDRAM JAVAHERI, CNN METEOROLOGIST: We've got a lot of rainfall ahead, Rosemary. Great to see you as always. And the pattern, unfortunately, is still in place here. So, we are expecting rainfall to continue. The intensity of the rainfall potentially at times could get as high as we have seen in recent days. And really the end result has been remarkable to put it lately here.

You take a look at what has occurred here. Of course, the historic amount of rainfall in a matter of just a couple of days here, has led to this flooding that has taking place. And we know the pattern here is the wet season. This is the time of a year, you expect to see heavy rainfall, but the amount of it and the short time period that has come down is Rosemary, alluded trough there, of course, with the evacuations in place amid a pandemic.

This is the sort of setup we are talking about. Kind of have distance people indoors as they are forced to leave their homes and properties. And the amounts had equated to upwards of 500, 600 even 800 plus millimeters in just a matter of two to three days. Now, to put that in perspective, if you are tuned in across Berlin, that would take you some 18 months on average to take.

If you tuned in across Hong Kong, that takes eight months on average to get to this amount of rainfall that portions of southern and central Japan have seen in a matter of two to three days. And Minamata, Japan this is the southern pre-pictures there in 24 hours a half a meter of rainfall has come down.

London, you're waking up to rain this morning that would take about a year's worth of rainfall on average for London to obtain that sort of a number and records all over the place when it comes to the highest we have ever observed. So, no matter where you put this amount of rainfall down whether they are able to take on this water and have the infrastructure to support essentially what mother nature throws at them, certainly can't deal with the amount of rainfall that has come down.

And this is the pattern in this time of year. You get this semi- preeminent frontal boundaries that sets up shop and the ancient Chinese would tell you all about them. It is known as the (inaudible) as locals call it which directly translated to the plum rains.

They would know that typically from the beginning portion of May to the later portion of July, about a 40 to 60-day period, you get persistent rainfall across this region, Rosemary. And they would know that by about the 48 or so day's period that would be time to harvest the plums. That would mean the onset of the rainy season is upon us. And unfortunately, of course, with an area so populated right now, this amount of rainfall is leading to some trouble.

CHURCH: Yes, Pedram, thank you so much for keeping a very close eye on that. I know you continue to do so. I appreciate it. And thank you for watching CNN Newsroom. I'm Rosemary Church. I will be right back with another hour of the news. Do stay with us.